the cfo middle east | issue 2
DESCRIPTION
Plastic FantasticTRANSCRIPT
Vol 1ISSUE 2
UA
E A
ED 1
5 | B
ahra
in B
HD
15
| Q
atar
QR
15 |
Om
an O
R 1
5 | S
audi
Ara
bia
SR 1
5 | K
uwai
t KD
12
PLASTICFANTASTIC
BRING IT HOME
WORLDVIEW
DARWINIANCFO
A NEW ACCOUNTANCY CERTIFICATION IN THE UAE
THE GLOBALLY ASTUTE CFO
PE DEMANDS A LARGER REMIT
BILL CHAPPELLrsquoS PROMISES ARENrsquoT MADE
OF SILICON
UA
E A
ED
15
| Bah
rain
BH
D 1
5 |
Qat
ar Q
R 1
5 | O
man
OR
15
| S
aud
i Ara
bia
SR
15
| Kuw
ait
KD
12
MANAGEMENTDominic De Sousa
Chairman
Nadeem HoodGroup CEO
Georgina orsquoHaraGroup COO
EDITORIALGroup Director of Editorial
Paul Godfreypaulgodfreycpimediagroupcom
+971 4 440 9105
Group Managing EditorMelanie Mingas
melaniemingascpimediagroupcom+971 4 440 9152
Assistant EditorSteven Pradia
stevenpradiacpimediagroupcom+971 4 440 9114
ADVERTISINGPublishing Director
Rajashree Rammohanrajramcpimediagroupcom
+971 4 440 9131
Commercial Director - Business DivisionChris Stevenson
chrisstevensoncpimediagroupcom +971 4 440 9138
Media Sales ExecutiveEmma Hughes
emmahughes cpimediagroupcom +971 4 440 9120
Event Sponsorship ManagerGill Fairclough
gillfairclough cpimediagroupcom +971 4 440 9120
DESIGNHead of Design
Glenn Roxas
Senior Graphic DesignerFroilan Cosgafa IV
Production Manager James TharianData Manager Rajeesh Melath
Printed byAl Ghurair Printing amp Publishing LLC
Head OfficePO Box 13700 Dubai UAE Tel +971 (0) 4 440 9100 Fax +971 (0) 4 447 2409
The world is apparently growing smaller every day This is made clear with every opening information
flow branch office opened and intercontinental deal struck Globalisation is very loudly rearing its
influence As avenues widen flush with communication business concerns become more closely
aligned As such reports are emerging which indicate that global markets are easing from the
financial crisis and once again trading at levels seen prior to the crash Central to the renewed
expansion is the CFO
The levels of data sophistication private equity investors are attaining speak directly to the shift The
capital PE yields has grown to new heights As a result this intercontinental industry is relying a great
deal more on CFOs The strategic purview of company financials which only todayrsquos evolved CFO can
offer has become imperative An analysis of this progressively essential conduit of finance is present
within this monthrsquos coverage
The relationship between the United Arab Emirates and India is a classic example of successful
global relations This issuersquos country report focused on the subcontinent outlines how political
developments will drive the country forward whilst educate new investors interested in the space
While Indian tourists flock to the UAErsquos capital Emirate Abu Dhabi in record numbers the country as
a whole remains by far Indiarsquos most important trade partner Nearly $800 billion of trade revenue was
reported between the countries last year The figure is set to increase so what better a time than now
for finance professionals to gain a better understanding of this all important global partner
Expats of all stripes have flocked to the UAE Alongside the countryrsquos enviable geographic positioning
globalisation has long shaped where the Emirates head next In a bid to prepare local Emiratis for larger
gains abroad whilst better facilitate its accountancy bona fides inside the country the United Arab
Emirates Certified Accountant (UAECA) Certification was launched in Dubai in early November With
global accountancy body ACCA as a partner this lofty new certification will bolster Emiratisation aims
The UAE is preparing an even more financially global local populace with a goal of increasing the
number of qualified Emirati accountants in the country in the coming years The UAECA will almost
certainly ensure realisation
The CFOrsquos remit is growing and with it the physical landscape the role oversees Tech CFOs now
merge financials with tomorrowrsquos next bright idea regionally Meanwhile auditing experts act as the
pride of a nation This issue of CFO has a global outlook which matches just how far reaching todayrsquos
financial professional is consistently proving to be
Steven Pradia
Assistant Editor
TALK TO US
E-mail stevenpradiacpimediagroupcom Twitter cpilive
Facebook wwwfacebookcomCPILive LinkedIn group aelinkedincomincpidubai
copy Copyright 2014 CPI All rights reserved While the publishers have made every effort to ensure the accuracy of all information in this magazine they will not be held
responsible for any errors therein
CFOs THE WORLD IS NOT ENOUGH
To facilitate and support our expansion drive for the coming years and to serve our
esteemed clients better we have moved to a fully-owned state-of-the-art office facility
We stay committed to our vision to provide the best and most professional Accounting
Audit Business amp Management Consulting services to all our valued clients
OUR NEW ADDRESS
Level 15 Lake Central - At The Bay Business Bay Al Abraj Street PO Box 55535 Dubai UAE
Tel +971 4 276 2233 Fax +971 4 422 1680 dubaimorisonmenoncom
BUILDING BE T TER BUSINESSES - GLOBALLY
wwwmorisonmenoncom - wwwconsultuaecom
We have moved to our newMiddle East Head Quarters in Business Bay
Offices in UAE (Dubai DAFZ Abu Dhabi JAFZ RAK FZ RAKIA Sharjah) Oman Qatar India
1994 - 2014
CONTENTS
Infographic UAECA CFO Roundtable India8 10 12 14CFOs around the world
A new accountancy certification reaches the Emirates
Citi Commercial Bank hosts a discussion in Dubai
A closer look at the investment prowess of the subcontinent
18 22
26
DUBAI SILICON OASIS
Procurement
Saed AlSharid
The UAErsquos premiere tech freezone as overseen by its top finance executive
AT Kearney delivers a report aimed at CFOs
ldquoTrying to do business while not understanding accounting is like getting into the ocean and not knowing how to swim you will drownrdquo
ldquoPeople talk about strategybut getting the numbers right must always be the number one thingrdquo
CONTENTS
46
52
54
66
58 62 68
CompetencyCrisis
lindsay Degouve de Nuncques
WIEF
TechTalk
NMDC David Allen opinion
The Institute of Management Accountantsaddresses a looming gap
A new face heads up the ACCArsquos UAE chapter
The World Islamic Economic Forum sets up in Dubai for its 10th anniversary
The best iPad apps for the
global finance professional
Shaping the worldrsquos coastlines as seen by the CFO
The business coach and best selling author offers more of his recipe in a QampA
Geetu Ahuja of CIMA on the essentials of globalisation
Emerging markets CIMA ERP Private Equity30 34 38 42A how to for investment in the worldrsquos most promising localities
The Institute revamps its reknowned syllabus
IT business solutions are evolving in line with the role of Chief Financial Officer
Buyout firms demand more stringent financial data
ldquoOur qualification is about complete finance professionalsrdquo
38
4234
98
CFO InfographicPROJECTIONS
wwwthecfomecomwwwthecfomecom
CFO InfographicPROJECTIONS
Optimism
Risks and opportunities
Growth and expansion
CFOGLOBALISATIONINFOGRAPHIC
SOURCES Michael Page International Global CFO Barometer 2012 by Michael Page International Deloitte CFO Signals ndash Q1 2014 Deloitte CFO Signals Q4 2013 Robert Half CFO Insights
4738
44
36
55
72
39
26
42
20
95
71
35
68
CFOs express rising
optimismof CFOs are
optimistic about financial prospects
of CFOs believe its a good time to take greater risks
of CFOs believe financial risk management policies are not significantly aligned to cover market risks
see new product or service launches as a
key growth opportunity
40are hopeful about organisational growth opportunities
of CFOs are now more optimistic than in the last quarter
of CFOs are now more involved in risk management
of CFOs will pursue organic expansion
consider pricing pressures as the top growth inhibitors
are positive about the future state of the Indian economy
of CFOs are more optimistic than
last quarter
of CFOs willing to take greater risks
believe international expansion will play a
major role in in business development
expect MampA activity to rise over
the next year
rate this economy as good or very good
expect a major merger or acquisition
NORTH AMERICA
INDIA
MIDDLEEAST
SOUTHEASTASIA
UK
PACIFIC
WOMEN AS CFOS ( OF FEMALE CFOS IN OF RESPONDENTS)
( of respondents surveyed)
of CFOs spend significant amounts of time as strategists for company growth
76
AFRICA
AUSTRALIA
5 18
Lowest Highest
of CFOs with total annual compensation including bonus and benefits of over US$255000
of CFOs younger than 35 years old when they attained their position
Europe
Europe
13
Asia
14
SouthAmerica
29
Pacific
30North
America
49
49
NorthAmerica
21
SouthAmerica
Asia
43
31
Pacific
30
In North America 39 of CFOs are older than 50 years
On average CFOs worldwide attain
their position between the ages
of 30 and 39
of CFOs are confident about credit availability in the future
4831
73of CFOs feel that the finance function will play a larger role in their companyrsquos development and execution of business strategy
51of CFOs are satisfied with the performance of their finance function
56
98
CFO InfographicPROJECTIONS
wwwthecfomecomwwwthecfomecom
CFO InfographicPROJECTIONS
Optimism
Risks and opportunities
Growth and expansion
CFOGLOBALISATIONINFOGRAPHIC
SOURCES Michael Page International Global CFO Barometer 2012 by Michael Page International Deloitte CFO Signals ndash Q1 2014 Deloitte CFO Signals Q4 2013 Robert Half CFO Insights
4738
44
36
55
72
39
26
42
20
95
71
35
68
CFOs express rising
optimismof CFOs are
optimistic about financial prospects
of CFOs believe its a good time to take greater risks
of CFOs believe financial risk management policies are not significantly aligned to cover market risks
see new product or service launches as a
key growth opportunity
40are hopeful about organisational growth opportunities
of CFOs are now more optimistic than in the last quarter
of CFOs are now more involved in risk management
of CFOs will pursue organic expansion
consider pricing pressures as the top growth inhibitors
are positive about the future state of the Indian economy
of CFOs are more optimistic than
last quarter
of CFOs willing to take greater risks
believe international expansion will play a
major role in in business development
expect MampA activity to rise over
the next year
rate this economy as good or very good
expect a major merger or acquisition
NORTH AMERICA
INDIA
MIDDLEEAST
SOUTHEASTASIA
UK
PACIFIC
WOMEN AS CFOS ( OF FEMALE CFOS IN OF RESPONDENTS)
( of respondents surveyed)
of CFOs spend significant amounts of time as strategists for company growth
76
AFRICA
AUSTRALIA
5 18
Lowest Highest
of CFOs with total annual compensation including bonus and benefits of over US$255000
of CFOs younger than 35 years old when they attained their position
Europe
Europe
13
Asia
14
SouthAmerica
29
Pacific
30North
America
49
49
NorthAmerica
21
SouthAmerica
Asia
43
31
Pacific
30
In North America 39 of CFOs are older than 50 years
On average CFOs worldwide attain
their position between the ages
of 30 and 39
of CFOs are confident about credit availability in the future
4831
73of CFOs feel that the finance function will play a larger role in their companyrsquos development and execution of business strategy
51of CFOs are satisfied with the performance of their finance function
56
10
UAECA LaunchMARKET OUTLOOK
wwwthecfomecom
AAA launches an accountancy Certification for the UAE in collaboration with ACCA
CERTIFICATIONTAKING REGIONAL OWNERSHIP
The United Arab Emirates Chartered Accountants (UAECA) Qualification launched at Dubairsquos Armani Hotel 3 November by the UAE Accountants and Auditors Association (AAA) in association with the global accountancy body ACCA (Association of Chartered Certified Accountants) The announcement coincided with UAE National Flag Day and advanced ever expanding Emiratisation aims across the country With the support of the ACCA the skills gained will not only lead local UAE accountants to excel across the Emirates but also to encourage further growth internationally
A number of notable local leaders spoke at the event and
expressed their delight and favorable expectations for the UAECA His Excellency Sultan Bin Saeed Al Mansouri the UAE Minister of Economy Saif Abed Al Muhairi Chairman of the Board AAA Abdullah Amiri Financial Manager AAA and Ahmad Darwish Secretary General AAA and Chair of ACCArsquos members advisory committee in the UAE each offered speeches to the crowd of assembled finance professionals
ldquoWe are confident that UAECA will be the ambition of young Emiratis who would like to be the future leaders in the finance fieldrdquo said Al Muhairi
The UAECA qualification is the national qualification of the UAE and is based on
the globally recognised ACCA qualification This criterion will provide a dual-branded internationally recognised IFAC compliant route to membership of both AAA and ACCA
Said Stuart Dunlop regional director MENASA ndash ACCA ldquoThis unique partnership between ACCA and AAA will give students access to a national qualification making their skills and knowledge globally and locally relevant Once qualified as an ACCA member they will also be eligible to apply for membership to AAA meaning they can use the titles ACCA and UAECA after their names And because this partnership supports
ldquoWe are confident that UAECA will be the ambition of young Emi-ratis who would like to be the future leaders in the finance fieldrdquo
11
UAECA LaunchMARKET OUTLOOK
wwwthecfomecom
Saif Bin Abed Al Muhairi Chairman AAA
Ahmad Darwish Secretary General AAA
the governmentrsquos initiative to develop the accountancy and finance profession they will benefit from enhanced career opportunities as more employers and stakeholders choose to work with us in the futurerdquo
Emiratis in the accountancy field joined the procession eager to take part furthermore in what the AAA has planned unequivocally encouraged by the Associationrsquos hand in the UAECArsquoS launch The new qualification has stoked promise for bolstering Emirati involvement in local accountancy as well as international ventures which lie beyond the countryrsquos borders
ldquoAs an ACCA member Irsquom really proud the ACCA route
The new qualification has a good deal of promise for bolstering Emirati involvement in local accountancy as well as international ventures which lie beyond the countryrsquos borders
to membership has formed the basis of the new national qualification of the UAE It gives aspiring Emiratis recognition on a local and global stage and is a unique opportunity that will develop our careers and the profession in the UAErdquo said Ayesha Al Zaabi Senior Accountant of Group Finance Aerospace amp Engineering Services Mubadala
The future of accountancy appears brighter than ever in the UAE with the unveiling of an internationally supported qualification specific to the country The potential increase of Emirati participation spells great promise for the finance industry as it grows from within
12
at CPI Media Group the discussion offered a candid conversation of lively opinions bringing together key individuals from prestigious and influential businesses based in the UAE
The spirited discussion delved into how varied and increasingly imperative the Chief Financial Officerrsquos role has become
Vincent Valladares Managing Director Middle East Head Citi Commercial Bank led the vibrant discussion with the support of Anand Nagaraj Vice President Head Product Development Citi Commercial Bank whilst Grant Thornton Partners Jay Raney and Amgad Nassif offered their views as well
CFO RoundtableMARKET OUTLOOK
wwwthecfomecom
One of the trends in world business currently attracting considerable comment and debate is the changing role of the CFO No longer simply the custodian of the businessrsquo finance or the head of accounts the CFO is increasingly seen as a master strategist and the key architect of corporate decision-making As such a roundtable event held by Citi - in collaboration with Grant Thornton - was both a timely and revealing landmark on shifting attitudes and aspiration
IN CHANGING TImESCITI COMMERCIAL BANK CORRALS A pOwERfuL MEETINg Of MINdS
The management guru Tom Peters recently commented that ldquoIn these perverse and perhaps illusory times is it any wonder that the CFO is seen as the one reliable point of reference - the one person from the C-suite cut out for more responsibility and bigger things in the businessrdquo
Citi Commercial Bank and Grant Thornton echoed the importance of this shifting role by gathering a collection of leading CFOs and finance executives at Dubairsquos Grosvenor House - hosting a keynote round table called lsquoThe Changing Role of the CFOrsquo In a world where CFOs are increasingly wearing a number of new hats within their respective enterprises the event asked pertinent questions such as -
ldquoThe CFOs duties have changed as strategy and other focuses are becoming increasingly importantrdquo
bull Whether the CFO is increasingly the businessrsquo key strategist bull Whether or not the role is more and more impacted by changing legislation and regulationbull Is the CFO now effectively the CEO-in-waitingbull What is the role of management education in this new mix
So while much has been written lately about how essential it is that the CFOrsquos function evolve and change the dayrsquos discussion took an overtly practical view and gathered the opinions of the individuals at its core
Hosted by Paul Godfrey Group Editorial Director
13
recession environment has created an atmosphere rife with new regulations which CFOs are expected to master as these international enterprises venture into new markets and encounter sensitive and risk management-oriented frameworks
Citirsquos Vincent Valladares observed ldquoRegulatory issues are becoming bigger for banks as well as compliance And when we look at doing business with companies we want to look at those with good management teams because otherwise it can become difficult The CFO plays a very important role within this processrdquo
CEO waiting in the wingsWhen the group was quizzed on their individual desires to become CEO every hand around the table went skywards with an affirmative ldquoyes all of usrdquo - highlighting how commercially-minded todayrsquos CFOs have become Not to mention just how axiomatic the relationship between CEO and CFO consistently proves to be
Another factor is that amid all this diverse change - in roles working contexts and background economics - the CFO is seen very much as the person creating order control and standardization No small task
Perhaps the only certainty is that the communication of ideas is leading the charge forward for one of the business worldrsquos most important roles and The Changing Role of the CFO provided a definitive benchmark for this onward march
CFO RoundtableMARKET OUTLOOK
wwwthecfomecom
Members of the roundtable trade ideas
Vincent Valladares offers his position
CFO or CCOldquoThe duties have changed in some very clear ways A phrase that I am constantly coming across and strongly agree with is that we should be thinking of the CFO as the Chief Commercial Officer as opposed to someone who deals solely with finance Responsibilities central to finance continue to exist of course but strategy and other focuses are becoming just as if not more importantrdquo commented Rishi R Vig ZAFCO CFO
In addition to how much larger a remit commercial decisions are demanding the importance of regulatory protocols was a much- discussed topic The post-
Vincent Valladares Managing Director Middle East Head Citi Commercial Bank
Anand Nagaraj Vice President Head Product Development Citi Commercial Bank
Jay Raney PartnerGrant Thornton
Amgad Nassif Partner Grant Thornton
Paul Godfrey Moderator Group Editorial Director CPI Media Group
Steven Pradia Assistant EditorThe CFO Middle East
Ganapathi Bhat Senior Manager of Finance GEMS Education
Mark Downie Financial Controller Proclad
Nimesh Lokhandwala ICAI
Jehangir Pocha Himalaya
Kamal Shah Finance Manager Logicom
Rishi Vig CFO Zafco
Low Wai Leng Financial Controller Dubai Precast
Rajeev Jain CFO Afri Ventures
KG Vincent Finance Director FDC International
Ramesh Pemmasani Head of Accounts Intersun
Nagesh Nadig AIC
ROUNDTABLE ATTENDEES
IndiaCOUNTRy FOCUS
wwwthecfomecom14
SUBCONTINENTAL SURGE
By Arvind Chari
Last year was undoubtedly a turbulent time for emerging markets due to political instability inflation and the fledgling recovery in the West all causing significant headwinds Unsurprisingly this has led some commentators to be sceptical about the prospects for these markets including India But the Indian economy is showing signs that it will weather the challenges of the next few years This may not be an easy task given the
manner the Indian rupee plunged in response to the US Federal Reserversquos decision to taper asset purchasing Nevertheless India does have the political will to make the necessary reforms to deliver on its potential
While the Fedrsquos decision has caused some fallout in emerging markets commentators expect that this will tail off over time Meanwhile Indiarsquos economy is driven by domestic demand which means that
India does have the political will to make the necessary reforms to deliver on its potential
With an eye towards the nationrsquos key partnership with the Middle East the following India country report shares economic prospects accounting for last yearrsquos instability ndash defining what investors can gain moving forward
IndiaCOUNTRy FOCUS
wwwthecfomecom 15
$791bTotal trade between India and the UAE in lsquo13
64Expected growth of Indiarsquos economy in lsquo15
Indiarsquos debt market needs to attract stable investors over lsquobond touristsrsquo short term foreign flows evident in Indiarsquos bond markets
it is better placed than most to deal with the world post-quantitative easing Without the so-called lsquotaper tantrumrsquo investors in India might have focused more on the positives in 2013 But given the overall improvements in the economy and the political outlook we feel the India narrative will be harder to ignore in Q4
One of the most significant changes has been the appointment of Dr Raghuram Rajan as governor of the Reserve Bank of India (RBI)
last year He is clearly part of a dying breed of central banker that is one who actually knows how the world works He will make mistakes but the most important thing is that he will be trying to move India in the right direction as shown by his decision to continue with a hike in interest rates at the end of January Bond and currency markets have reacted very well to this move which shows the bank is now ahead of the curve in fighting inflation In October Rajan remarked that
Indiarsquos debt market needed to attract stable investors over lsquobond touristsrsquo a reference to the short-term foreign flows that have been evident in Indiarsquos bond markets His stance is an indication that policies could be shifted to attract more long-term stable money into Indiarsquos government bond markets away from a focus on the foreign-bank lsquoproprietaryrsquo investments that dominate flows currently
Indiarsquos current account deficit (CAD) was set to halve
STAT FACTS
IndiaCOUNTRy FOCUS
wwwthecfomecom16 wwwthecfomecom16
in the year ending March 2014 It was due to fall to 25 from 48 of GDP in 2013 The fall in gold imports alongside currency depreciation was a major contributing factor to this reduction Indiarsquos exports became more competitively priced over Q1 2014 which has led to higher exports in textiles chemicals and leather goods while the drop in the value of the rupee has also led to a fall in non-oilgold imports We expect the CAD to increase to around 3 of GDP for this financial year as gold import restrictions are removed a shift that should still be easily fundable Additionally the RBIrsquos FX reserves have increased by $34bn through the bank and non-resident Indian deposit swaps which was a much higher figure than anticipated This gives the RBI the additional firepower to intervene in the markets if it is necessary to counteract currency volatility In fact the
rupee has been remarkably stable since October and has steadily outperformed its other lsquofragilersquo emerging-market peers
There has also been an improvement in how other countries perceive India Net foreign direct investment is stable despite some negative sentiment driven by the outflows from the bond markets and banks Vodafone described by Rajan as lsquothe poster child for companies with difficulties in Indiarsquo is investing more in spectrum and also buying out minority operators In addition significant Japanese investment into Indiarsquos infrastructure is a further boost to the country and this relationship will be one to watch over the coming years
Overall the world has a much better impression of India than it did a few years ago when the country was facing significant obstacles In 2010 increasing inflation expanding fiscal deficits and an escalating CAD ndash all coupled with slowing growth rates ndash put India in a very difficult position But in 2012 the government realised that the current situation could not continue and since then there has been a much greater focus on reform
A mixture of poor growth and bad policies dramatically hampered Indiarsquos progress earlier this century frustrating many investors But the country is now beginning to drive a wedge between itself and the other more troubled emerging-market economies We feel
162KIndian tourists in Abu Dhabi yTD
Significant Japanese investment into Indiarsquos infrastructure is a further boost to the country and this relationship will be one to watch over the coming years
STAT FACTS
IndiaCOUNTRy FOCUS
wwwthecfomecomwwwthecfomecom 17
Population size 12 billion
Area 3287263km2
Type of government Federal republic
Official language Hindi
Capital city New Delhi
Largest city New Delhi
GDP (2012) $1825 trillion
Central government debt as a proportion of GDP 67
Currency Indian rupee
Conversion rate against the euro 0013
COUNTRy FILE
Hire a local manager or partner who has a very good
understanding of local rules and regulations
Have a longer-term investment horizon because the Indian rupee will remain
volatile for a while
donrsquot view volatility as a risk view the
integrity of the government and
management as a risk
Travel to India and feel the lsquomicrorsquo India
story rather than just read about the lsquomacrorsquo India story
Be patient and have realistic
expectations ndash things take time to work out in India
TOP TIPS FOR DOING BUSINESS IN INDIA
that these differences will mean that India significantly outperforms those economies over the coming years And while we might still be facing some turbulent times for India at least the dark clouds are beginning to break
As with any emerging-market economy the next few years will present challenges alongside opportunities and investors will have to
be comfortable with this state of affairs But India is committed to making the reforms it needs to improve its future The country has much better potential for growth than any developed country and it is also in a far better position than many of its emerging-market peers Now is the time to take advantage of all that India has to offer to investors
INNOvATIONrsquoS BOTTOm LINE Bill Chappell occupies a rare space as the CFO of Dubai Silicon Oasis a free zone dedicated to the development of technology across the emirate In the following interview he shares with CFO Magazine how far along technology has come in the UAE and why the figures are the most important aspect of his role as Chief Financial Officer
18
Cover StoryTECHNOLOGy
wwwthecfomecom
Dubai Silicon Oasis (DSO) occupies a vast 72 million square metre stretch of land in the northern reaches of the UAErsquos most globally recognised emirate Established in 2005 as a government-owned free zone devoted to the development of technology DSO has in the time since welcomed over 1087 companies into a space of which more than 59 of has been developed
Responsible for liaising with DSOrsquos companies both large and small whilst overseeing the free zonersquos balance sheet CFO Bill Chappell mans a unique station as a finance
executive with a keen eye for technological growth
ldquoIrsquove been with Dubai Silicon Oasis for nine years and my role is rather split I am the finance director but Irsquom also responsible
for our initiatives on technology incubation
and investment which is all very interestingrdquo
Chappell said Despite Chappellrsquos
years of experience in the technology industry granting him an imperatively strategic purview as CFO he makes clear what is most important as Chief Financial Officer
ldquoGetting the numbers right must always be the number one thing People talk about strategy and a number of other things but you must focus on the numbersrdquo
Chappell offered ldquoMy background is in technology companies for over ten years previous to coming here so I have a knowledge of technology which I brought to Dubai above all My overlap personally involves understanding technology whilst being a CFOrdquo
When Dubai Silicon Oasis first came into existence the area was undeveloped with no roads customers or residents Today the oasis acts as both a home for industry and residence whilst the Dubai Silicon Oasis Authority operates a number of services unique to companies which operate within the free zone A business incubation centre venture capital funding structure and various forms of entrepreneurial support are among DSOrsquos many aspects available to tenants
Said Chappell ldquoThere are three categories of companies at DSO There are smaller companies which deal more largely with our entrepreneur and incubator ecosystem The other extreme involves global firms such as Fujitsu or SAP and we look at their needs and make sure theyrsquore satisfied as customers They want our help to get setup And then there is the middle group and I meet them if they need my help as CFOrdquo
DSO counts SAP Porsche Fujitsu and Qordoba among its vast bank of companies
19
Cover StoryTECHNOLOGy
wwwthecfomecom
each of which are granted access to the Chappellrsquos well-honed expertise
ldquoBill has been involved in several meetings to gain updates about the company and offer input on what he thinks we should be focusing on whilst asking questions about our financial processes He also sits with the board on occasionrdquo said Loulou Khazen Baz founder of Nabbesh an online marketplace which connects professionals with work opportunities
ldquoDubai Silicon Oasis has been an important Investor at various stages of Nabbeshrsquos journey and a vital stamp of approval Our company has found priceless value in DSOrsquos support and the approachable nature of an involved CFO like Billrdquo
Chappell faces a number of challenges related to investment due to the region not ranking tech developments as high as traditional platforms such as real estate Additional concerns related to innovation have found themselves increasingly entering the CFOrsquos remit as related to encouraging ideas specific to the region Chappell is confident however that certain companies based in DSO are addressing these issues
ldquoIn this region one of my biggest challenges is getting people to understand
ldquoPeople talk about strategybut getting the numbers right must always be the number one thingrdquo
20 wwwthecfomecom
the complexities of tech Technology is a good investment class but the region is focused very much on real estate whilst the investment class of technology doesnrsquot rank as highrdquo said Chappell ldquoIn order to widen the general understanding we want to be developing solutions which address problems specific to the region We have one or two gems for example Qordoba a translation company which translates content in multiple languages The programme utilises artificial intelligence and as a result is getting smarter and smarter each time it is asked to translate so that it understands the meaning of what itrsquos translatingrdquo
Another key variable for DSO is centred on supporting
Dubairsquos goals based around becoming the worldrsquos capital for Islamic finance Chappell describes his role as CFO as one with ldquotwo thousand handsrdquo a multi-layered position which he seems to relish being held responsible for While DSO has grown tremendously in its near decade of existence the free zonersquos exuberant CFO sees lots more to come
Said Chappell ldquoI see us going from strength to strength Wersquove been in existence for nearly ten years When I joined it was empty desert Now we have over 1000 companies and an estimated 43000 living on site Within five years wersquoll also be further down the path and wersquoll be recognised for our contributions to the smart city and the Islamic economyrdquo
ldquoWithin five years wersquoll be further down the path and recognised for our contributions to the smart city and the Islamic economyrdquo
Dubai Silicon Oasis
headquarters
1080Companies in DSO
72millionDSOrsquos land mass in square metres
STAT FACTS
Cover StoryTECHNOLOGy
THE MIDDLE EAST ACCOUNTANCYAND FINANCE EXCELLENCE AWARDSWEDNESDAY 10 DECEMBER 2014AT THE JUMEIRAH BEACH HOTEL DUBAI
ACCOUNTING FOR EXCELLENCE
Once again the very best talent in the world of accountancy and fi nance will be celebrated by ICAEW at a stellar awards ceremony
ICAEW is a professional membership organisation supporting over 142000 chartered accountants around the world And on Wednesday 10 December 2014 at the Jumeirah Beach Hotel in Dubai wersquoll be recognising excellence in ten categories featuring Business Leader of the Year CFO of the Year Corporate Finance Deal of the Year and the Internal Audit Excellence Award
With an impressive line-up of speakers special guests and entertainment it all adds up to a trulymemorable evening
To submit a nomination or for more information visit icaewcommiddleeastawards
Nominations close on 1 October 2014
A WORLD LEADER OF THE ACCOUNTANCY AND FINANCE PROFESSION
400595_ICAEW_MiddleEast2014_Ad_NBAD_DEVERE_207x270_AW_3indd 1 27082014 1541
PROCUREMENTANALyTICS
wwwthecfomecom22
Return on Supply Management Assets (ROSMA) is a pioneering framework launched by AT Kearney after four years of testing one aimed at addressing the aforementioned procurement gaps The performance measurement standard was initiated with an eye on creating a benchmark for the procurement industry and providing a compass to direct investments
ldquoROSMA started in 2010 And it started out with conversations with the CFO There are a group of folks in the company talking about how great their achievements are however
the capital that procurement claims isnrsquot often obvious and can create a disconnect within the companyrdquo said AT Kearney Vice President Federico Mariscotti
This yearrsquos annual report surveyed a number of businesses and arrived at a series of significant findings which outline procurement patternsbull Top-tier companies generate
approximately $16 million in financial return per procurement employee yearly A reported 35 per cent of return derives from applying advanced methods
bull Mid-level performers typically
The first step for compa-nies in the Middle East is to take a good look at what they expect procurement to bring
Leading global management firm AT Kearney recently released a report on the evolving conversation which surrounds procurement A key aspect of the report spells out how much CFOs stand to gain by making more pronounced investments based on utilising procurement in terms of value The relative distance between CFOs and their respective companyrsquos procurement methods is cited as cause for concern
THE NEW LANGUAGE OF PROCUREmENT
generate four to five times of their investment in procurement valuation yet have not exemplified growth since 2011
bull Performers at the lowest level surveyed do not achieve monetary benefits which cover costs
bull The majority of organisations surveyed do not possess the tracking structures needed to analyse procurement performance
bull Regardless of company size or industry procurement
PROCUREMENTANALyTICS
wwwthecfomecom 23
The CFO community has not yet awakened to the value of procurement
performance varies though companies with sophisticated reporting techniques experience less variable performance
The reportrsquos express aim to create a benchmark for procurement follows a wave of process monitoring which found notice in the manufacturing industry in the 1980s supply chain research and engineering in the 1990s and sales and marketing performance being closely tracked in the 2000s
ldquoProcurement costs can represent anything from 20 to 90 of a companyrsquos total cost going from the public sector to consumer goods Yet the productivity of the team that presides over the supply market interactions has a way of explaining their value add using savings that do not add up to the PampL impact measured by finance Savings definitions different baselines and cost avoidance all contribute to a murky aggregate view of the impact on the businessrdquo added Mariscotti
In the Middle East the challenge is fundamental ndash getting the spend data in the first place Companies admit they often do not have a clear categorisation of intelligence lack an agreed definition of savings measurement and generally position procurement as a pre-eminently transactional activity lacking the mandate to contribute value Procurement processes as a result remain centred around purchasing are paper based and lack transparency The first step for companies in the Middle East is to take a good look at what they expect procurement to bring
wwwthecfomecom24
Influencedspend
The inconsequential The brand leaders
Leaning up
Note All three segments start with a common hypothetical spend of 1000 to normalize the case example
Source AT Kearney analysis
Source AT Kearney analysis
TOP QUARTILE
mIDDLE-TIER 50
BOTTOm QUARTILE
704
764
644
522
527
396
42
30
(138) (25)
(63)
19
39
28
15
21
4
3
60
32
18
Sourcedspend
Units of yield
Post-compliance
benefits
Additionalbenefits
Financial results
delivered
19x
17x
middle tier
bottom quartile
TOP-QUARTILE PERFORMERS DELIVER NEARLy TWICE AS MUCH VALUE AS MIDDLE-TIER PLAyERS
THE CFO COMMUNITy HAS NOT yET BEEN ldquoAWAKENEDrdquo TO THE VALUE OF PROCUREMENT
Procurement is not on the radar for those who gave the wrong answers to three essential questions
leadership with accountability for performance is clear but either the measures are not clear or performance is believed to be weak variable or unknown ndash or a mix
leaners and leaders answered all three essential questions correctly and also answered most or all other questions correctly
to the table and how it should support the business To make a steep change companies need to understand the multiple benefits which will occur for investments made once theyrsquove allowed for stronger procurement practices
The benchmarking aspects of ROSMArsquos report speak directly to CFOs based on an existing widespread inability to track and improve this often unquantifiable nature of procurement practices According to the report the CFO community has not yet awakened to the value of procurement and Chief Financial Officers are thus divided into three segments The brand leaders (25) those leaning up (63) the pack (774) and the inconsequential (138)
Said Mariscotti ldquoThis is a way to give procurement a measurable quality that CFOs can quantify You have to know what yoursquore doing with relation to procurement in order to do it well ROSMA gives you a number which helps you understand how good your procurement is working as compared to peers It lets you know whether or not you could be doing something differentrdquo offers Mariscotti
CFOs have exemplified an increasing ability to share in a companyrsquos strategic efforts whilst expand their respective remits Procurement is emerging as the latest segment of this conversation Understanding its value beyond the transactional is the first step for CFOs to fully engage with harnessing the potential of procurement and grow to become a part of the elusively paltry portion of brand leaders indicated in ROSMArsquos report
PROCUREMENTANALyTICS
The pack(774)
Al Sharid is the Vice Chairman of Emirates Transport and has enjoyed a successful career in which the lionrsquos share of his tenure has afforded him a seat at the helm of the business
ldquoI remember when I first received the GM of Tata in the late 80s he said to me lsquoYou are the youngest GM I have ever metrsquo I was 29 years old at the timerdquo Looking at Al Sharidrsquos rapid ascent to the top of his organisation can be mind boggling to the average observer however to those few who strive to push themselves to their limits it is perhaps more common a reality As with any top performer we can often see their desire for results and impact
early on in life and with Saeed the first stride of his race to the top began with an accounting degree in university
It was 1976 and the excitement of the UAErsquos biggest milestone moment its inception just five years earlier still clung to the air from Fujairah to Abu Dhabi and every emirate in between A nation was being built Saeed had just finished high school and went to the United States where he was to study engineering
ldquoI was not yet 18 years old it was 1976 and I was sent to America to study it was the beginning of a dream and a young liferdquo says Al Sharid Unfortunately Al Sharidrsquos academic tour of duty came to
THE EmIRATI DREAm Saeed Al Sharid is today an elder statesman in the world of UAE accountancy With decades of know-how based on chairing a number of key Emirati organisations Al Sharid is today atop his own family firm In the following exclusive interview he shares the importance of education the evolution of a nation and just how being an accountant has driven his many triumphs
an abrupt halt when his father suddenly passed and he was forced to return home ldquoWe are seven brothers and I am the middle one so during tough times we always come together and during this period the strength of my family pulled me through I have three younger brothers and I felt I had to be there for them I felt responsible for them My mother played an omnipotent role in pulling us through this dark moment in our history The death of my father forced us to become more independentrdquo says Al Sharid
Now back in the UAE with his plans of studying abroad dashed Saeed looked at the local schooling system within which Al
26
InterviewPERSONALITIES
wwwthecfomecom
Saeedrsquos desire for results took its first stride with an accounting degree in university
By Shane phillips
27
InterviewPERSONALITIES
wwwthecfomecom
Ain University had just opened ldquoAl Ain University was the pride of the Emirate at the time the students were like celebrities The first batch of graduates were all promised 50000 AED from HRH Sheikh Zayed I was one year late so technically I should not have graduated with the first batch but I was determined I worked an extra course load did summer school and soon caught up to the first class 50000 AED in 1981 was like 5000000 AED today so I was very motivatedrdquo says Al Sharid
Saeed not only caught up with the other students but he wound up graduating atop Al Ain Universityrsquos first class of graduates with a 38 GPA ldquoWe Saeed Al Sharid
28 wwwthecfomecom
to the organisationrdquo he says Saeed first joined Emirates Transport after seeing a small newspaper advertisement for an accountantrsquos position He applied but initially they did not want to hire a local because locals were too expensive After a few months however they called him back for an interview and offered him a job
Initially Saeed struggled to get a promotion or even a raise He worked tirelessly to develop himself and kept detailed notes of his work After nearly two years went by with no promotion he requested to meet with the Chairman of the corporation to discuss his career The Chairman was a Minister making him even more senior than his title implied Al Sharid was courageous and determined ldquoYou should not stay silent you have to take initiative your future is in your handsrdquo says Al Sharid
ldquoI met with the Chairman and told him about my work and what I wanted to do He did not talk he just listened and that was it It was a 15-minute meetingrdquo says Al Sharid Three days after Al Sharidrsquos pivotal appointment he was promoted to Deputy General Manager Directly from a Trainee to DGM skipping all the roles in between at the age of 27 years old They doubled his salary and catapulted him into a senior leadership role
ldquoI felt it was quite strange to move up that fast and personally was not sure I could handle the job I had a lot of resistance from the board I had people in their 50s reporting to me and they were not happy about it So I just took a step back and did not try to get involved in their work too fast I went slow and watched my step This was a very important
ldquoThe UAE was a brand new country and a lot of work was being done to develop the nationrdquo
never had any idea of a career path and there was no such thing as career counsellors or lsquocareer servicesrsquo at the school So when you graduated most people just joined the Ministries The UAE was a brand new country and a lot of work was being done to develop the nation The Federal Government paid the highest and so one just joined them There was no grand vision or dream that I was off and chasing In those times you simply tried to do the next best thing So I ended up working in the Ministry of Health as an accountant Back then a university degree was a veritable qualification and it had a lot of market equity today it wonrsquot even get you in the doorrdquo
As the Middle East market evolves not only are university degrees becoming more common but so are post graduate degrees such as MBAs and even PhDs As such the competitive positioning of professional qualifications are gradually eroding over time
ldquoTo stay competitive executives today will require deep and specialised knowledge of their respective industries an intellectual arbitrage that provides superior results To beat the market to manage the risks to develop a sustained competitive edge For this executives need to stay in a role for the full strategic cycle which is at least four years in durationrdquo says Sharid In the case of Al Sharid he was there for 33 years
ldquoDo you just want a job or are you looking to make a contribution to your company Too many young people today are just looking for a title or a position The difference between those who make it into senior roles and stay there is the desire to create impact to add value
InterviewPERSONALITIES
2012year Moodyrsquos upgraded the UAE economy from developing to emerging
37The UAErsquos global rank for GDP
STAT FACTS
moment for me to gain valuable leadership experience early on To make my learning curve even steeper the General Manager quit after two years and I became the GM at the age of 29 years oldrdquo explains Al Sharid
He ascended to the top job in less than five years and stayed in the position for almost twenty years He was totally committed and could even be found in the bus yard at four in the morning to greet the drivers as they started their shifts ldquoThe key to being successful in business is to keep your finger on the details Some people let the details slip and if this happens you will suffer I get into the yard I meet the drivers I meet all the staff If you saw us you will not know who was the GM or who was the driver You have to realise people will never work for you they will only work with you To me Emirates Transport is like my familyrdquo says Al Sharid
When asked what his keys to success are he says ldquoI think if I was not an accountant I would not be a good leader I would not be a good manager In my opinion trying to do business while not understanding accounting is like getting into the ocean and not knowing how to swim you will drown The Chief Executive Officer who does not know how to create the financial statements is always at the mercy of his Chief Financial Officer He cannot take any big decision on his own and he will not even be able to challenge the CFO Accounting is the bedrock of any business and a critical skill set for any leader No one can argue with this factrdquo says Al Sharid
With over 20 years of experience in tow and the related chairmanships to boot Al Sharid
ldquoTrying to do business while not understanding accounting is like getting into the ocean and not knowing how to swim you will drownrdquo
has since early last year partnered with his family to form Al Sharid Auditing Though the Emirati youth is not as keen to pursue positions related to accountancy as Al Sharid was he feels that there is hope to close the gap
ldquoIt is difficult to find an Emirati expert I studied the audit market specifically and there were others like me then But now you break Emirati auditing involvement into three categories The first involves the big firms This is followed by individual smaller enterprises But thirdly a lot of locals opt to work with the government also Most are not managing their own firms they just have a partnership and they are building thatrdquo Al Sharid explains
ldquoAl Sharid Auditing however is a firm that includes my brother and our two sons which make up a body of qualified professional auditors We established this firm last year and work closely with the government We decided to make one firm together instead of having many smaller entitiesrdquo
Moving forward Al Sharid plans to grow his familyrsquos firm by applying the very belief system which has catapulted him to his position of power Marketing concerns which are designed to furthermore announce how tailored Al Sharidrsquos offerings are at present a key variable to forging ahead
Said Al Sharid ldquoMoving forward wersquore focusing more on the marketing of our firm Itrsquos a matter of not exactly expanding but going over the right deals The market is tough and the small jobs are easy but we donrsquot need them We donrsquot want to be in many rooms we want to be in the important onesrdquo
29wwwthecfomecom
InterviewPERSONALITIES
1UAErsquos rank among GCC nations for chosen hub of all major accountancy bodies
STAT FACTS
Latest insights from PwCrsquos 15th Annual Global CEO Survey revealed that 59 per cent of CEOs see emerging markets as more important than developed markets to their future What is making emerging markets such a pressing priority for C-suite executives Why are emerging markets increasingly grabbing headlines
Emerging markets are large fast-growing and ambitious markets best known for being the growth engines of todayrsquos global economy Research (1) suggests that emerging market countries are expected to amount for more than 60 per cent of global GDP growth ndash a clear indication of the wealth of opportunity they present
Understanding emerging marketsBased on estimates by the International Monetary Fund emerging economies are expected to grow two to three times faster in comparison to developed nations Explaining this fast-growth and the rise of these emerging markets an article on Forbescom details that ldquoduring the US housing crash and resulting credit crisis of 2008 world markets were saved from a total disaster thanks to the big emerging markets ndash mainly Brazil India and China The global credit crisis was one of the longest deepest and most painful in history It toppled Wall Street icons like Lehman
The following report explores emerging markets from West to East which are at the helm of economic development trade and innovation and highlights what their rising popularity means for the growth of your business
Brothers required government bailouts of bulge bracket banks and shocked the global economy with a deep economic recession and even a deeper crisis of confidence Its most important legacy though may be one that has yet to fully unfold the crisis revealed a new world order in terms of economic and market dynamics Emerging market economies finally arrived as
30
Market IntelligenceANALyTICS
wwwthecfomecom
ENTERING EmERGING mARKETS STRATEgIES RISKS ANd OppORTuNITIES
Projected annual GDP growth 2014 amp 2015
PANAMA
67
PERU
RANK42
55
Projected annual GDP growth 2014 amp 2015
Ease of Doing Business
RANK55Ease of Doing
Business
TOP TEN MARKETS
(1) Source here Accenture Research ldquogearing up for growth ndash five imperatives for success in emerging markets 2011 Henry Egan and Armen Ovanessoff
31
Market IntelligenceANALyTICS
wwwthecfomecom
LATVIA
CZECH REP
MALAYSIA
THAILAND
SOUTH KOREA
CHINA
RANK75
41
21
50
45
35
74
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
CHILE
RANK 34
43
Projected annual GDP growth 2014 amp 2015
Ease of Doing Business
RANK 24Ease of Doing
Business
Ease of Doing Business
RANK 6Ease of Doing
Business
RANK18Ease of Doing
Business
RANK 7Ease of Doing
Business
RANK 96Ease of Doing
Business
POLAND
32
RANK45Ease of Doing
Business
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
Source httpwwwbloombergcomnews2014-01-29qatar-china-top-ranking-of-frontier-and-emerging-marketshtml
powerful essential and permanent contributors to global economic growth and sustainabilityrdquo
Bloombergcom recently ranked the top emerging markets based on their performance on 19 economic financial political and social indicators In order of ranking the top ten markets were
CHINA
SOUTH KOREA
MALAYSIA
CHILE
THAILAND
PANAMA
PERU
LATVIA
POLAND
CZECH REP
1 6
2 7
3 84 9
5 10
Market IntelligenceANALyTICS
32 wwwthecfomecom
Making an entryIf your business is looking to enter any of these emerging markets itrsquos worth considering the following checklist
1 Assess your readiness The biggest mistake you can make is to enter a market without proper evaluation of your business Donrsquot do it just because everyone else is Like every other major business decision be sure to speak to your Board of Directors partners investors stakeholders and most importantly your CFO and certified accountants Make a business plan enlisting your objectives goals investment strategy potential risks etc
2 Research research research Do your homework Treat emerging markets as any other international expansion venture and do thorough research on the new market ndash Who are the competitorsWhat is the price point for your product What are the customer demographics What kind of infrastructure do you need for the manufacturing production or distribution of your product
3 Understand the legal framework Emerging markets might not have rules and regulations as clearly spelled out as your home country Invest some time and money in understanding how business procedures work A very obvious area of focus for UAE-based companies is tax Since the UAE is a tax-free economy companies arenrsquot exposed to tax accounting and other legislation surrounding
ndash failing to adapt to the needs and expectations of the local customers is surely a recipe for failure Time and again companies havenrsquot been able to create a customised offer and have had to exit these markets with huge losses A success story however is that of the Haier Group Haier famously introduced washing machines to specifically suit the water pressure levels in the households of India ndash an emerging market strategy that worked very well in their favour and helped them become leaders in that sector Another great example is that of Coca-Cola as explained in an online Reuters article by Matt Reilly ldquoIn Brazil Coca-Cola has used social media to better understand consumer preferences and has developed a successful local network to supply traditional Coca-Cola products as well as fruit juices tailored to local tastesrdquo
7 Local currency This is a complex yet critical area to consider when entering a new market Ask yourself questions such as ndash What is the local currency rate How does it compare to the currency in your home country Is the country import-led or export-led and what impact can this have on the global value of the currency Remember that fluctuations in currency rates can hugely effect your overall investment and thereby the return on investment
8 Build partnerships When entering an unknown territory it is quite useful to have the backing and support of peers who can help you in case of unforeseen challenges This is
this Another area to consider is corruption ndash emerging markets are notorious for high corruption red-tape and bureaucracy Speak to your company lawyer to assess these areas and take proper measures to avoid them before-hand
4 Invest in local talent Working with people already accustomed to the new market avoids the hassle of relocation and reduces costs But more significantly gives you skilled talent to work in these unique environments This also works in favour of your company as it gives you a clear understanding of the kind of compensation packages you will have to offer to your employees For instance employees based in China might want high remuneration and low healthcare benefits while in India it may be quite the reverse Recruiting local talent will also have a trickledown effect ndash your employees will easily be able to cater to the local customer needs without the need for intense training
5 Supply chain 44 per cent of business leaders surveyed consider accessing the right supply chain capabilities extremely or challenging in emerging markets according to Deloittersquos Globalisation Survey Make sure that you know who your suppliers will be what the production costs are whether their production procedures fit your time constraints and if the final product matches your level of quality
6 Cater to local market demands This is one of the most important aspects of all
Do your homework Treat emerg-ing markets as any other internation-al expansion venture
Market IntelligenceANALyTICS
33wwwthecfomecom
the very reason why Mergers and Acquisitions are a popular way to enter into emerging markets Many companies piggyback on their clients who are entering these markets For instance if you are an IT consultancy working on a major project for a manufacturing and trading company with operations across India and China you can use their resources and expertise to explore opportunities in these countries
Remember to consider these steps every time you enter a
new market as every locality has its own set of unique needs One strategy doesnrsquot fit all
Surviving fierce market conditionsWhile the massive opportunity that lies within emerging markets paints a pretty picture businesses need to be wary of bottlenecks such as corruption volatility gaps in laws and regulations and strong competition There have been several high-profile cases of multinational companies withdrawing from emerging
markets owing to immense corruption pressures
There is also a high percentage of inherent risks in these markets which amount to many companies not succeeding in their first attempts It is important to take your time when adapting to these markets and fully understand the business dynamics Following recent case studies and going over the lessons learnt by multinational companies who have made an entry into these markets consider the below
bull Is your companyrsquos head-office ndash and senior management ndash located in your home country without any C-level representation in the new emerging market
bull Are you focusing all of your resources on doing business in the emerging market at the cost of losing profits in your home market
bull Have you researched local competitors in these markets who may already have a strong standing and proven models of success
bull Are you using the same ldquoentry approachrdquo and business model across different emerging markets
If your answer to one or more of these questions is yes it may be time to re-evaluate your presence in these markets and map out a different strategy
Finally remember that no matter what the outcome of your admission to these markets might be your business is sure to emerge out of this stronger tougher and ndash of course ndash ready for a new challenge
of companies believed they had invested more resources in
emerging markets than was required
entered a market without fully assessing the ability of the supply chain to support the expansion
entered with the wrong pricing model and an inappropriate
operating model
CONSIDER THE RISKS
48
24
20
There is also a high percentage of inherent risks take your time when adapt-ing to these markets and fully understand the business dynamics
Source Emerging markets expansion and the supply chain Economist Intelligence unit survey conducted on behalf of EY September 2010
34
CIMA INTERVIEW
wwwthecfomecom
The Chartered Institute of Management Accountantsrsquo (CIMA) Managing Director Andrew Harding visited Dubai to host the Institutersquos seminar on global management accounting principles In the wake of CIMA revising their well heralded syllabus Harding discussed with CFO Magazine what the newest edition held how CIMA is applying a digital focus to its courses and just how CFOs can gain from it all
CURATING CURRICULUm
35
CIMAINTERVIEW
wwwthecfomecom
can give CFOs something they can take and something they can measure their own management accounting services against They can benchmark using this and they can utilise this to see their progress
Part of that is having professional management accountant in place I donrsquot think the landscape matters I believe that there is a common business need wherever you may be around the globe
All of the emerging markets need these skills The first aspect that accounting schools teach is about auditing skills because theyrsquore interested in protecting investments Then they teach you how to keep your business sustainable and to have a sustainable business you need to have a management accountant in place So itrsquos not just here in the UAE where we see these demands we see the same demands in China Indonesia and other powerhouse economies We see their skills shortages and we see the need for solutions in those areas
Talk to me about how this new syllabus works to promote the evolution of a CFOThis syllabus that wersquove
Can you expound on just what can be found within the new CIMA syllabusWe just revised the syllabus we do that every four to five years What we have done this year is a very significant revision It is based from a complex study that we have carried out to over 3000 people from 200 companies globally It is the very first revision since the joint venture with CIMA and AICPA So this has allowed us to attain a syllabus rich with all the data from all the continents in the world For the first time wersquove had real involvement from companies in the USA in this project
Why is the collaboration between AICPA and CIMA significantMost important is the Chartered Global Management Accountant (CGMA) designation that AICPA and CIMA both issue for qualified management accountants Wersquoll have a common curriculum and common examination which will begin on January 1 which gives us a global designation for management accountants wherever they are around the world There are plenty of accounting bodies who claim to be global but actually this is the only
genuinely global designation This is because it has the only one with a North American participation in it So we can say that the CGMA will be just as well-recognised in the USA as it is in Dubai
With the global landscape in mind how do you create an even objective that applies to localities which may prove widely differentialThe landscapes are different but businesses have common needs wherever they may be What wersquove particularly seen since the global financial crisis is that companies are actively looking to build management accountant capability to build that capacity within their organisations They donrsquot want to have a poor quality of information that lacks insight being used in their businesses So they see management accountants can bring solutions to that As a result of all the work wersquove done with companies who participated in the syllabus wersquove also put together a series of what we call Global Accounting Principles This is a series of principles which describes what good management accounting looks like and what top quality management accounting in a company should be producing This then
ldquoCompanies are actively looking to build man-agement accountant capability to build that capacity within their organisa-tionsrdquo
36 wwwthecfomecom
worked on acknowledges the skill set needed by professionals throughout their career Therersquos a base level of competence that is needed but beyond that there is more There is business acumen the ability to communicate and influence and finally the ability to lead So you start off enhancing your raw technical accounting skills Then you need to place that into the context of the business that you are in Then as you move forward and as you rise to become the CFO yoursquoll need the others You have to learn how to present your work in a way that can influence and make an impact in the business The final piece is the ability to lead projects and other functions and to a great extent lead the board of directors Thatrsquos how the context works itrsquos not just about technical knowledge
How do you find that CFOs in the GCC region are responding to this programmeThe CFO has a real challenge on his hands now In 1975 80 per cent of corporate value is showing on the balance sheet By 2010 that dropped to less than 20 per cent Your traditional PampL reports no longer reflect the value of the business or how the business drives value
All things that should be of interest to investors is missing With things like the integrated report initiative wersquore starting to see the other dimensions that add value to business For CFOs thatrsquos all about strategic thinking and considering the long-term objectives Being articulate in implementing those strategies keeping in mind the risks and opportunities that the business faces We are also nowadays witnessing a whole new world of transparency around that
Are there electronic aspects to CIMArsquos advancing approachThe interactive case study simulates a real working situation and it tests how they can apply their knowledge in real life situations Theyrsquoll be presented with a scenario a few weeks before they take the exam so they can prepare for it They then go to an exam centre where they are asked questions about how they will deal with a certain situation in the real world Theyrsquoll get an email from the CFO giving them a certain task for a particular period of time We want to make it as close to reality as possible so students taking the exam will be assessing situations based on real life scenarios
ldquoThe CFO has a real challenge on his hands now as traditional PampL reports no longer reflect the value of the businessand [the role] must focus on strategic thinking and considering long-term objectivesrdquo
218KCIMA members worldwide
STAT FACTS
CIMA INTERVIEW
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
38
ERPANALyTICS
wwwthecfomecom
Faster more nuanced IT solutions are available to the modern day CFO Whilst Chief Financial Officers are called upon to analyse data across a number of spectrums the digital tools on hand are likewise being expanded to aid in focusing more squarely on the bottom line
ExCELLING WITH ERP
The global landscape is today firmly entrenched within a digital model As a result CFOs whom are called upon to take a larger role in a number of variables must also increase their abilities with respect to utilising the many upsides which tech innovations offer a business When surveyed about their most pressing concerns CFOs generally return a varying collection of responses Revenue growth regulatory changes and meeting quarterly goals are among the chief concerns Virtually every obstacle can be hurdled by way of maintaining the order of financial reporting and data which has long been
synonymous with the Chief Financial Officerrsquos remit A widening berth of ERP solutions is making this data all the easier to come by
Despite how sophisticated the market is today it was not long ago that ERP departments once spent days processing business reports
Said Rohan Tejura Assistant Vice President Focus Softnet ldquoTraditional ERP systems were solely data repositories Moreover these repositories werenrsquot real time and were incredibly dependent upon locational connectivity With the emergence of smarter development platforms more versatile devices and
39
ERPANALyTICS
wwwthecfomecom
more intuitive designs of system development the overall experience of the ERP now extends from data warehousing to reporting analysis trend mapping business intelligence and governance oriented capabilities Yet these solutions amazingly execute all of these deliverables via portable handheld devices and through cloud environmentsrdquo
New generation ERP systems must now be on the go whilst including up to the minute analytics to provide deeper insight into the business ERP Analytics tools use historical data captured from various business functions to provide valuable information for efficiency and business performance each incredibly priceless to a leading CFO
Finesse is an ERP provider which is continually addressing the transformation of output which the ERP industry is offering the equally transitioning role of CFO
ldquoWe provide end-to-end business management solutions to SMEs and Enterprises Our approach to ERP is much more than providing simply an operational management systemrdquo said Finesse COO Sunil Paul
ldquoWe believe that todayrsquos businesses need much more than integrating sales with inventory accounting and manufacturing but also to have seamless integration with all their sales channels including the point of sales ecommerce and inbound sales solutionsrdquo
A major im-petus of the ERP-cen-tered growth is based on how effec-tive com-prehensive real-time data proves to be for the CFO
40 wwwthecfomecom
before thereby creating new global benchmarks for overall economic growth
Microsoft Arabia CFO Sadrul Khan offered insight into just how far the knowledge economy has influenced regional financial leadership by explaining how one of the most prioritised technologies by CFOs in the region is social platform monitoring
ldquoOne of the five technology choices that CFOs tend to prioritise in boosting productivity efficiencies and faster decision making in the fast paced business environment which include a social platform that monitors trends customer sentiments and helps process mashable data for customer centricity and business growthrdquo said Khan
A major impetus of the ERP-centered growth is based on how effective comprehensive real-time data proves to be for the CFO Whether employed as on-premise ERP software-as-a-service or cloud-based solutions a nearly identical ethos is being utilised Allowing the CFO to quickly access the performance of all facets of a business is paying dividends in the boardroom a reality which is showing itself increasingly in the Middle East
The technologically-charged relationship between ERP solutions and the regionrsquos CFOs is expanding and as a result has catalysed what many see as GCC economic performance outstripping that of many economies outside of the region as a result
In order to compete in todayrsquos fiercely competitive environment organisations need to think both innovatively and out of the box They require more insights about their business and their customers and need to ensure that they are able to meet the expectations of their internal as well as external stakeholders Enormous amounts of data both structured and unstructured is continuously being generated within the internal and external systems of the organisation which if analysed can be of immense value both to the business and subsequently the stakeholders associated with the organisation
With the the era of CFOs labouring over spreadsheets now in the past given how many business frontiers have become so dependent on mobile options such as the cloud more and more tech companies are providing the regionrsquos CFOs with information technology that converts traditional internal and external data into rich visual insights This information is then used for faster decision making and provides the ability for a CFO to assess manage and control risks Regional CFOs have grown enabled to drive corporate strategy accordingly demonstrating how the knowledge economy is now in full force amongst the Gulfrsquos corporates
Given that advanced IT has now become a regular CFO tool the regionrsquos CFOs are subsequently making faster decisions and driving internal growth models with greater speed and agility than ever
Tech companies are providing the regionrsquos CFOs with information technology that converts traditional internal and external data into rich visual insights
ERPANALyTICS
Donrsquot discoveritrsquos counterfeittoner afteritrsquos too lateOriginal HP Toner works first time every time1 unlike cheap toners which fail over half of the people who try it2 Non-HP toner can compromise your printerrsquos performance to give you streaked blotchy or faded prints Only original HP Toner cartridges deliver unmatched quality for the most professional-looking prints 100 of the time1
1 A QualityLogic 2010 study commissioned by HP comparing original HP LaserJet Monochrome print cartridges with nine brands of non-HP toner cartridges available in Europe Middle East and Africa for the HP LaserJet P1505 and P4015 printers HP 36A and 64A For details see wwwqualitylogiccomEMEAmonotonertestpdf 2 From a 2012 EMEA Lyra Research study commissioned by HP Results based on a total of 1050 HP Color LaserJet users who have used both original HP and non-HP toner cartridges of whom 552 experienced problems with non-HP cartridges
copy 2014 Hewlett-Packard Development Company LP
42
Private Equity ANALyTICS
wwwthecfomecom
The rise of PE-backed acquisitions is forcing CFOs to develop an entirely new set of skills
THE PRIvATE EQUITy CFO
The CFOrsquos utility in the world of private equity is without question on the rise The once-held belief of the CFO existing solely as the ldquoaccounting guyrdquo has been abandoned Over the last 20 years the role of CFO has become more demanding - requiring not just finance and accounting acumen but also a financial literacy in corporate planning risk management MampA assetliability management and regulation This evolution has been driven by a number of
key factors Yet the private equity industry which is now reshaping the corporate landscape through active ownership is by far the most significant factor driving change within the role of the CFO
PE-backed buyers today represent a larger percentage of overall buyers in the corporate acquisition marketplace than ever before Data provider Prequin estimates that as of June 2014 the capital raised by PE funds that
has not yet been deployed amounts to $114 trillion globally The result of this ldquodry powderrdquo is that a vast quantity of corporate acquisitions in the coming years will be undertaken by the private equity industry As such CFOs will be more accountable to demanding ldquosmart moneyrdquo shareholders than at any point in recent history Budgeting accounting and financial reporting will no longer exist as sole priorities but as a core competency among a
ldquoBy effec-tively using real-time data CFOs can create a dynamic process that proac-tively drives performance account-ability and value crea-tionrdquo
By Aaron Heidari
43
Private Equity ANALyTICS
wwwthecfomecom
robust set of complimentary and required skills Most of all the bar for CFOs is rising as PE investors will only accept above-average performance from their management teams
CFOs were once more reactive in function setting budgets based on other executivesrsquo plans and managing the flow of reporting to shareholders on a quarterly and yearly basis Today CFOs are required to become proactive managers of their respective businesses alongside their C-suite compatriots using a granular data-driven approach to aggregate analyse implement and report on every aspect of a companyrsquos operations
An important tool to drive this value creation process are KPIs Yet KPI structures including both aggregation and output are generally not up to the standards required of private equity investors prior to an investment being made
ldquoThe benefits of using KPIs and monthly reporting packages are significant By effectively using real-time data that is actionable and by partnering with functional area leaders within the organisation company CFOs can create a dynamic process that proactively drives performance accountability and value creationrdquo said Amanda Robinson Vice President of Accordion International in Dubai a consulting firm which is comprised of former private equity and investment banking professionals who
MENA region Cumulative Funds Under Management Since 2008
Source Zawya private Equity Monitor
19 636 20 36321 586
22 64323 506 24 250
-
5000
10000
15000
20000
25000
2008 2009 2010 2011 2012 2013
Cu
mu
lati
ve f
un
ds
($ m
)
$15mAverage MENA PE investment size in lsquo13
50Percentage of investment in IT and energy sectors
STAT FACTS
44 wwwthecfomecom
work with companies to deliver cost-effective project execution services
Active shareholders whose money it is being spent will typically require a data-driven justification before approving any budgets capital expenditures or new acquisitions Furthermore in many private equity backed companies the use of debt and the matching of shorter-term bank financing with longer-term investments will only be considered after a robust analysis is conducted to understand the companyrsquos ability to service that debt in the future This evaluation is not simply to identify revenues expenses and profits Itrsquos about drilling down into every transaction and rooting out data processing and reporting At least that is the expectation
The most valuable CFOs are those who have the ability not just to scrutinise and understand the financials but all also possess a wider grasp of the underlying data which truly comprise the business As an investor who has just acquired a stake in a new business I want a CFO who can manage the transition and stay ahead of my expectations Most of all a CFO should impress upon the companyrsquos shareholders a new way of doing business The first 100 days of an acquisition are said to be the most important During this period the CFOrsquos worth will be established when the new financial plan is due and the platform for the next five years of growth is presented
A CFO should man-age the tran-sition stay ahead of expectations and impress upon the companyrsquos shareholders a new way of doing business
Investment Volume By Sector Since 2006
Investment Volume By Sector in 2013
Source Zawya private Equity Monitor
1
3
30
17
3
28
3
4
6
4
6
5
17
9
9
6
9
5
8
6
6
2
3
10
Education
Education
Information Technology
Information Technology
Other
Other
Telecoms
Telecoms
Media
Media
Transport
Transport
Oil amp Gas
Oil amp Gas
Healthcare
Healthcare
Consumer goods
Consumer goods
Food amp Beverages
Food amp Beverages
Leisure
Leisure
Manufacturing
Manufacturing
ANALyTICS
Private Equity
2000857 NBAD ratibi mag ad 200x268 Finalindd 1 92514 1017 AM
46 wwwthecfomecom
THE FUTURE OFACCOUNTING EDUCATIONAddRESSINg THECOMpETENCY CRISIS
Have you ever stopped to think about how the accounting profession has changed since you graduated from college Recent graduates can answer this question by reflecting on the last two or three years whereas for other more seasoned professionals answering this question requires a bit more thought and memory searching Indeed we can all think of ways that the field of accounting is remarkably different today from the one we likely envisioned during our college daysmdashregardless of which decade we each donned our cap and gown This gradual transformation of the accounting profession leads to two important questions related to competencies bull Which competencies are important for success inaccounting todaybull Were these competencies consciously developed as partof your accounting degree programme
We suspect that more than a few of you would answer ldquonordquo to the second question Put another way our profession may be facingmdashmore so than at any time in the pastmdasha ldquocompetency crisisrdquo that is a gap between the competencies needed for professional success and those taught in our college classrooms today We propose a three-pronged strategy or ldquogame planrdquo for overcoming this competency crisis and in turn better preparing accounting graduates for the challenging world they will face First all of us accountants need to understand the changes that have already taken place in our profession and perhaps more importantly anticipate the changes that are on the horizon Second we need to educate ourselves and future generations of accountants so that as a collective group we can deliver the expanding set of competencies demanded in todayrsquos dynamic organisational
contexts Third as professional organisations and as individuals we need to think beyond ourselves by asking How can I (or we) help the accounting profession address the competency crisis
A Shift Toward Integrated ThinkingMany articles and white papers have been written that describe in detail the changes that have occurred in our profession over the last few decades but for our purposes wersquod like to distill these changes down to one crucial idea How does the accounting function add value to an organisation Accountants have evolved from support-oriented personnel who hand off information to others who actually make decisions into business partners who ldquohave a seat at the tablerdquo with managers
By peter C Brewer James E Sorensen CpA CgMA and david E Stout
47wwwthecfomecom
1048576bull What regulatory risks mayaccompany the proposal
1048576bull What social and environmentalfactors will we face if for example the proposal requires investing in overseas operations
1048576bull What types of employeeresistance may arise if we implement the proposal and how will we overcome the root causes of any such resistance
1048576bull Can and how should we valuefuture options associated with the proposal such as expanding or contracting the investment over time as new information becomes available
1048576bull Should we use debt or equity tofund the proposal
In short accountants have evolved to become integrated thinkers who enable EPM by partnering with managers across the organisation to add value Yet as EPM has gradually become the centrepiece of our professionrsquos value proposition accounting education hasnrsquot done enough to embrace it To overcome this gap wersquod like to further suggest that the concepts of competency integration and EPM need to come ldquofront and centrerdquo as we move forward in educating the next generation of successful accounting practitioners
Accounting Education No Longer on the SidelinesRecently a task force consisting of members of IMAreg (Institute of Management Accountants) and members of the Management Accounting Section (MAS) of the American Accounting Association (AAA) addressed the competency issue How should accounting education change fundamentally to help close the competencies gap The efforts of the task force led to
cash flows and how to apply discounted cash flow (DCF) decision models such as net present value (NPV) is of foundationalmdashsome might say critical mdash importance But integrated thinkers draw on an understanding of organisational strategy coupled with a broader set of competencies (beyond what might be considered technical or foundational knowledge) when making these types of decisions For example they consider how behavioural issues may influence the capital investment decision-making process Perhaps the financial estimates contained in the NPV analysis are too optimistic because the manager who prepared the numbers has a vested interest in seeing the project approved Decision makers also need to consider issues such as leasing vs buying a capital asset and the corresponding impacts on the financial statements and ratios that are tracked by investors and lenders What nonfinancial factors are associated with the proposed investment Add in the tax consequences of capital investment decisions coupled with the need to maintain internal control over any new business processes tied to these decisions and the need to think in an integrated fashion across a variety of accounting competencies becomes apparent
Furthermore becoming a true business partner with managers across the organisation requires more than simply integrating various accounting competencies It also means thinking like a business manager or a chief executive officer (CEO) Returning to the capital budgeting example an integrated thinker will ask questions such as
across the organisation Together they formulate and plan strategies then participate in collaborative decision-making processes that execute those strategies in a manner that adds stakeholder value Said another way accountants have evolved to become enterprise performance managers This shift in our orientation from a support function to an enterprise performance management (EPM) role has enormous implications for defining the determinants of success within our profession the most important of which involves becoming collaborators and ldquointegrated thinkersrdquo Take for example a common but important business decision process capital investment analysis Certainly technical knowledge regarding how to estimate relevant after-tax
48 wwwthecfomecom
expanding capital budgeting discussions to include financial statement impacts tax consequences and internal control issues integrates topical coverage across the External Reporting and Analysis Taxation Compliance and Planning and Assurance and Internal Control competencies shown in Figure 1
Third accounting curricula can incorporate a broader set of management competencies For example evaluating capital investment proposals from the perspectives of change management (Leadership) social and environmental issues (Ethics and Social Responsibility) regulatory concerns (Governance Risk and Compliance) and capital structure (Additional Core Business Competencies) brings a CEOrsquos perspective to the decision-making process
Fourth accounting curricula should include foundational competencies such as proficiency with spreadsheets and written and oral communication In the context of capital budgeting this may include asking students to use Microsoft Excel to perform a sensitivity analysis and then to present their findings to the entire class
Working to Fix the ProblemAt this point although you may agree with us that therersquos a competency crisis within the accounting profession you may be wondering What does this have to do with me What can my organisation do to help address this so-called competency crisis The answer a lot Practice partners and academic partners can help the accounting profession overcome the competency crisis That said letrsquos take a closer look at the role of practice partners first
improvement) and accounting competencies (external reporting and analysis planning analysis and control taxation compliance and planning information systems assurance and internal control and professional values ethics and attitudes) Of critical importance to the framework is the assumption that the set of competencies contained in Figure 1 would be developed and integrated over time through a blend of formal education (including continuing education) training and job experience
What levels of integrationmdashon the road to developing integrated thinkers in accountingmdashare possible First accounting educators can integrate within a single accounting competency So referring back to our capital budgeting discussion teaching computational models such as NPV analysis coupled with a review of various behavioural issues associated with capital investment decisions would be an example of integrating within the Planning Analysis and Control competency listed in Figure 1
Second professors can integrate across accounting competencies For example
a recently published article that contains a proposed framework for accounting education reproduced here as Figure 1 The framework is general in the sense that itrsquos meant to apply to all accounting students not subgroups based on career specialisation such as tax assurance services corporate finance and the like Itrsquos based on the idea that accounting educators can better prepare students to deliver our professionrsquos EPM value proposition through integrated competency-oriented curricula (For more see ldquoFocusing Accounting Curricula on Studentsrsquo Long-Run Careers Recommendations for an Integrated Competency-Based Framework for Accounting Educationrdquo in the May 2014 edition of Issues in Accounting Education)
A glance at Figure 1 reveals three levels of competencies foundational competencies (communication ability to leverage technology and analytical thinking and problem solving among others) broad management competencies (including leadership ethics and social responsibility and process management and
Proposed Competencies-based Framework for Accounting Education
FOUNDATIONALCOMPETENCIES
ACCOUNTING COMPETENCIES
BROAD MANAGEMENT COMPETENCIES
leadership
ExternalReportingamp Analysis
PlanningAnalysis
amp Control
TaxationComplianceamp Planning
InformationSystems
Assuranceamp InternalControl
ProfessionalValues Ethics
amp Attitudes
Communication
Quantitative
Interpersonal
Technological
Analytical Thinking ampProblem Solving
Ethics amp SocialResponsibility
ProcessManagement ampImprovement
GovernanceRisk amp
Compliance
AdditionalCore BusinessCompetencies
Although you may agree with us that therersquos a competency crisis within the account-ing profes-sion you may bewondering What does this haveto do with me
A practice partner should be or become a CMAreg (Certified Management Accountant) maintain professional certification by completing required Continuing Professional Education (CPE) hours and regularly read the IMA publications Strategic Finance and Management Accounting Quarterly
In addition there are a number of excellent resources that deal with topics covered in this article and that IMA makes available to its members
Strategic Finance PowerPacks(wwwimanetorg SFPowerPacks) These are resources focused on contemporary topics similar to those discussed earlier Current offerings include Risk Management Strategic Planning IT Skills amp Software and Internal Controls Each PowerPack includes a combination of resources such as research studies articles and links to webinars
Statements on Management Accounting (SMAs)(wwwimanetorgresources and_publicationsresearch_ studies_resourcesstatements on_management_accounting aspx) SMAs represent monographs classified into one of the following six categories Leadership Strategies and Ethics Technology Enablement Strategic Cost Management Business Performance Management Finance Governance Risk and Compliance and the Practice of Management Accounting Multiple items are available within each category For example the Practice of Management Accounting category includes (among other items)
49wwwthecfomecom
the Definition of Management Accounting and Implementing Shared Service Centres
Research Studies (wwwimanetorgresources_and_publicationsResearch_Studies_and_ResourcesAll_reportsaspx) The ldquoThoughtLeadershiprdquo section of IMArsquos website includes research covering a broad range of issues classified into seven categories For example under the ldquoGlobal Business Environmentrdquo category the following two research reports are available ldquoKey Differences Between IFRS and US GAAP Impact on Financial Reportingrdquo and ldquoCosting Methodologies and Cost Management Practices in the Peoplersquos Republic of Chinardquo
IMA Leadership Academy (www imanetorgprograms_events leadership_academyaspx) As described on the IMA website this programme is designed to assess a memberrsquos leadership status enhance that individualrsquos skills (principally through monthly webinars) and recognise leadership achievements These benefits are free to members
How You Can Make a Bigger Impact In addition to attending local regional and national IMA meetings consider inviting a small group of students to each chapter meeting This could be a wonderful (and relatively low-cost) option for mentoring aspiring accountants and finance professionals providing networking opportunities and introducing students to cutting-edge issues regarding the practice of management accounting Joining a university accounting
advisory group may be another way to influence the development of EPM in that institutionrsquos curriculum design
Other methods to enhance EPM in your organisation include (1) forming user groups within your company your local IMA chapter or your industry to review and share EPM experiences (2) encouraging advancement in the firm to be linked to EPM proficiency (3) focusing your companyrsquos recruiting efforts on candidates who display a background in andor understanding of EPM and (4) organising cross training within your company to enhance a mutual understanding of each otherrsquos respective roles
Finally visit the Competency CrisisTM website (http competencycrisisorg) set up by IMA to unite the accounting and finance constituencies professionals students employers academics and professorsmdashand explore competency issues through the lens of each stakeholder group The site is designed to ldquoencourage a discourse spur action and create a community dedicated to resolving the serious crisis of competency present in the professionrdquo Special sections of the website are devoted to educators students and employers professionals
Our Partners in Education Much like a practice partner an academic partner should be or become a CMA maintain professional accreditation by completing CPE hours and regularly read IMArsquos publications
Academic members of IMA can pursue and actively promote the CMA programme at their respective institutions
50 wwwthecfomecom
IMArsquos website contains helpful resources including an exam content overview content specification outlines for each of the two parts of the CMA exam and learning outcome statements The current exam covers some of the professional competencies represented in Figure 1 A summary of changes to exam content which will be effective in January 2015 is provided on the IMA website in News amp Media Relations which is located under ldquoAbout IMArdquo (See the press release dated March 24 2014) Other helpful resources include ldquoICMA Announces CMA Exam Content Changesrdquo in the April 2014 issue of Strategic Finance as well as ldquoManagement Accounting Career Readiness Shaping YOUR Curriculumrdquo
These forthcoming changes are based on the most recent IMA study of the knowledge and skills needed by management accountants from the view of CFOs controllers and other accountingfinance professionals from around the world
Also consider taking a group of your students to the IMA Student Leadership Conference held each November The Conference provides excellent networking opportunities for you your students and practicing professionals Students can learn firsthand from Conference presenters the challenges and opportunities facing finance and accounting professionals today
Moreover if your institution doesnrsquot currently have an IMA Student Chapter consider forming one One of the authors of this article David Stout reinstituted the student chapter at his school (Youngstown State University) after travelling with a group of his students to the IMA
Student Leadership Conference in Cleveland Ohio Through an IMA Student Chapter on campus students are able to work closely with a sponsoring local IMA chapter and bring to campus speakers who are experts in a wide range of topics including those discussed earlier in this article Each year student chapters compete for an Award of Excellence (AOE) and recognition as an Outstanding Student Chapter In addition IMA student members are able to engage in networking activities leadership training mentoring and community service programmesmdashall through their local chapter
You also might consider volunteering to serve as a Campus Advocate In this role yoursquoll represent IMA in all major matters of interest to your students (scholarship opportunities starting a student chapter mentoring and the like) and to your institution (for example leveraging IMA resources to advance the relevancy of the accounting curriculum use of educational case studies published in the IMA Educational Case Journal and access to IMArsquos ethics curriculum)
And if you havenrsquot yet done this ask IMA to endorse your accounting programme (information is available at www imanetorgeducator_resources indexaspx) This programme is designed to identify business curricula that meet the quality educational standards required to prepare students to earn the CMA designation Endorsement is based on an analysis of the curriculum and topics covered on the two-part CMA exam Currently 12 programmes have been endorsed
Finally if your school has an IMA Student Chapter consider participating in the annual IMA Student Case Competition where students are asked to propose a solution to a real world problem (Cases are solicited each year by Raef Lawson IMA VP of Research and Policy and IMA Professor in-Residence) Finalists make their presentations at IMArsquos Annual Conference amp Exposition before a set of judges consisting of accounting faculty members and practitioners Each year a new case is published in the August issue of Strategic Finance for students to use for that yearrsquos competition
Working TogetherIn this article we have summarised the changes that have affected the accounting profession and provided a competencies-based framework for guiding accounting educators in responding productively to those changes As a management accountant you know that implementing change in any organisation let alone within an entire profession never comes easily To be successful in overcoming our professionrsquos competency crisis IMArsquos practice and academic partners will need to assume leadership roles in defining enterprise performance management as the cornerstone of the accounting professionrsquos value proposition
This article was orginally published in the August 2014 issue of Strategic Finance It appears here with the permission of The Association of Accountants and financial professionals in Business
We need to educate ourselvesand future generations of account-ants so that as a collec-tive group we can deliver theexpanding set of com-petenciesdemanded in todayrsquos dynamicorgani-sational contexts
THE POWERFUL AND THRIFTY OFFICE ALL-ROUNDERS
The new ECOSYS M3560idn series will astound you With their print speeds of up to 60 pages per minute they are among the most productive A4 bw multifunctionals on the market We nevertheless managed to keep their ecological footprint and total cost of ownership impressively low by using our well-known ECOSYS technology and equipping the devices with our renowned long-life components The result Not only less waste and lower maintenance costs but also less hassle for you and all your colleagues You will also greatly appreciate the many customisation possibilities of the devices equipped with KYOCERArsquos open solution platform HyPAStrade as it allows you to tailor the device to your needs So yes we are proud of our new range of MFPs and can hardly wait to share their numerous benefits with you
For more information please contactKYOCERA Document Solutions Middle East | PB Box 500817 DubaiUAE | Tel +9714 4330 412 | Fax +9714 4231 944KYOCERA Document Solutions Europe BV - wwwkyoceradocumentsolutionseuKYOCERA Document Solutions Inc - wwwkyoceradocumentsolutionscom
52
ACCAINTERVIEW
wwwthecfomecom
GLOBAL By ASSOCIATION
across the region from our key employers and learning provider partners to our active and growing student and member base I want to understand their challenges and priorities and how ACCA can work with them to help support the economic success of the region
What can a CFO gain from working with ACCAThe ACCA qualification is about complete finance professionals For CFOs it brings the technical knowledge vital to business success complemented with the strategic management skills and ethical competence crucial to an organisationrsquos success As an organization ACCA in the UAE brings CFOs access to that local and global network of peers and expertise along with our leading research and insights that help them to keep up to date on the issues that matter most
Are there any initiatives in place to leverage the recently announced partnership with AAA
How are the ACCArsquos many years of activity being applied to the Middle EastACCA has now had a presence in the UAE for well over a decade During that time we have established strong relationships across the Middle East epitomised by the recent signing of our Strategic Partnership with AAA As a national body in choosing to partner with ACCA they recognised the local and global perspective we bring We are continuing to work with students members and employers across the Middle East to build their networks knowledge and business success through events research and insights and access to a growing number of online resources
Which initial priorities are among your key aims upon joining the organisationrsquos efforts in the UAEIn the first few months I hope to build on the success of the team in the UAE My priority will be to meet as many of our key stakeholders
The Association for Chartered Certified Accountants (ACCA) provides its services across a number of international borders The recent announcement of Lindsay Degouve de Nuncques as the new head of the Associationrsquos UAE chapter further exemplifies the ACCArsquos reach based on her previous work in the UK Nuncques shares here what she brings to the Middle East and just how globalisation has driven her ascent
53
ACCAINTERVIEW
wwwthecfomecom
The strategic partnership with AAA is the first of its kind in the region Students who complete the UAECA qualification will be entitled to both the AAA and ACCA designations and ACCA members in the UAE will also be eligible to apply for AAA membership This is a very exciting development in the market and together AAA and ACCA will be working to deliver maximum value to all our stakeholders from this partnership As we launch the UAECA qualification this activity will start in earnest
Which key industries will you be spotlighting in the Middle East in the months aheadOur experience of working across all sectors and levels of organisations globally gives ACCA a unique insight into all types of industries We will continue to be working with employers across the spectrum in the months ahead to help them gain the insight and make the connections that drive businesses to succeed at whatever they do
ldquoThe ACCA qualification is about complete finance professionals For CFOs it brings the technical knowledge vital to business success complemented with the strategic management skillsrdquo
54
Islamic FinanceMARKET OUTLOOK
wwwthecfomecom
In its 10th instalment the Forum is hosted in Dubai as a direct result of the UAErsquos increasing importance in the world of global Islamic finance
THE WORLD ISLAmIC ECONOmIC FORUm LANDS IN DUBAI
In Dubairsquos continued quest for leading the world across a range of spectrums the Emirate accelerated its desire to become the worldrsquos leading hub for Islamic finance by hosting the 10th installment of the World Islamic Economic Forum (WIEF) Delegates from dozens of countries attended to take part in a three-day event held at Madinat Jumeirah which rests alongside Dubairsquos gleaming coastline Held under the patronage of His Highness Sheikh Mohammed Bin Rashid Al Maktoum the
Vice President and Prime Minister of the UAE and Ruler of Dubai key speakers included The Honorary Dr Zeti Akhtar Aziz Governor of the Central Bank of Malaysia HE Kairat Kelimbetov Governor of the National Bank of Kazakhstan The Honorary Datorsquo Sri Mohd Najib Tun Abdul Razal Prime Minister of Malaysia and HE Xavier Bettel Prime Minister of the Grand Duchy of Luxembourg
Launched in 2006 in Malaysia WIEF has grown in tandem with the increased
Delegates from dozens of countries attended WIEF to take part in the three-day event
sophistication and reach of Islamic finance After a successful event in London in 2013 amidst increased interest in Islamic finance across Europe WIEF relocated to Dubai where the local business structure is keen to host halal finance
Said Hamad Buamim President and CEO Dubai Chamber of Commerce and Industry co-organisers of the event ldquo[The forum] is the start of a new chapter of cooperation between Dubai and the world as part of
55
Islamic FinanceMARKET OUTLOOK
wwwthecfomecom
Dubai Capital of Islamic Economy visionhellipestablishing a unified regulatory authority to provide the framework for standards across halal industries will significantly accelerate growth Likewise we need to see increased cooperation and partnership between the public and private sectors This is already happening with great success here in Dubairdquo
The order of global cooperation needed to facilitate growth across the Islamic finance world was more than apparent at WIEF based on how many differing nations were represented at the event The exhibitorrsquos hall was populated with a number of key Malaysian stands representative of the Southeast Asianrsquos ranking as the global leader in Islamic finance Also present were companies from Saudi Arabia also a key locality in the worldrsquos halal industries An interesting yet prescient presence was of attendees from South Korea a nation which is eager to participate in Islamic finance and will be hosting the WIEF Pyeongchang Roundtable in December 2014
ldquoGangwon is a province located in Korea which is very interested in new business opportunities Wersquove realised the strength of the Islamic economy and have come here with many different companies The first type is based in real estate investment We also have companies which want to export their products to the Islamic economy based on their halal qualities And Gangwon will also be hosting the Winter
ldquoKorea is very interested in the strength of the Islamic economy and wants to export its products based on their halal qualitiesrdquo
56 wwwthecfomecom
$247trillionProjected value of halal products industry in lsquo18
125Muslim percentage of global tourism expenditure
STAT FACTSOlympics in 2018 and are presently seeking investments for this as wellrdquo said Seong-hun Kim a member of Gangwon Province Governmentrsquos Export Support Team
Dubai proved to be an excellent place for the event considering how well the UAE is able to so regularly corral international cooperation A key sign of this was witnessed recently when Luxembourg now considered the third most important base for Islamic finance globally opened a finance office in Dubai International Finance Centre The European nation also opened a euro200 sukuk earlier this year which was quickly oversubscribed
The prime minister of Luxembourg offered the WIEF audience a riveting speech which detailed just how international the Forum has become whilst encouraging more of the world to support the growing influence of Islamic finance
Said Bettel ldquoWe need to innovate more economic partnerships for growth We sometimes need to reengineer relationships but also have to make sure these relationships remain sustainable Growth in one country also brings growth to others as long as this is guided by free market initiatives Free trade and free flow of capital combined with innovation leads to prosperity We have all gathered here in Dubai to explore the future of Islamic finance and Luxembourg is also a pioneer of Islamic finance in Europe The Islamic financial sector has a major role to play in continued global growthrdquo
The Islamic Corporation for the Development of the Private Sector (ICD) is based in the Kingdom of Saudi Arabia where it manages an international fund worth $2 billion half of which is available for subscription With shareholders in more than 50 countries and a sovereign sukuk fund recently launched in West Africa the ICDrsquos CEO Khaled M Al Aboodi attended WIEF this year excited to participate in the global event
How does the ICD approach its attendance at the World Islamic Economic ForumI think the Forum is one of the best places for discussing the financial issues of the OEC member countries It has been around for ten years and has grown to become a very important platform for discussion Wersquore here to attend and listen but also to network Itrsquos a great networking platform and a place to share views whilst letting everyone know what we have to offer
How has Islamic finance changed over the yearsOf course itrsquos growing in a large scale Some of it actually needs more support particularly with respect to regulatory frameworks Wersquore trying to partner with many international organisations like the IMF to try to provide support to countries to adapt regulation for Islamic finance Sukuk issuance is one of the biggest issues that needs to be addressed because there is a huge amount of liquidity in this arena Due to issues related to regulation sukuk issuance can be costly But with the regulation we are confident it will be on a level playing field with other forms of finance Compliance is a major area where more work can be done The Forum started with a roundtable on sukuk which shows how helpful WIEF has been over the years
What type of work does ICD do internationallyICD helped the government of Senegal to issue the first sovereign sukuk This was successfully issued last summer Progressing in this manner is something wersquod like to see continue across West Africa in order to utilise its resources with aiding development in the region in mind
QampA WITH KHALED M AL ABOODI CEO OF ICD
Islamic FinanceMARKET OUTLOOK
OFFICIAL SPONSORS
ENDORSED BY OFFICIAL HOST OFFICIAL
COMMUNICATIONS PARTNER
MEYDAN HOTEL DUBAI UAE19 - 20 NOVEMBER 2014
WOMENOMICSthe next emerging market
TAKE PART in making change happen UNITE with business and through leaders from across the globe
PARTICIPATE to the expansion of a modern and inclusive economy
58
Gautam PradhanINTERVIEW
wwwthecfomecom
SUCCESS BEyOND BOUNDARIES
in other management roles such as strategic decision making mentoring and leading efficiency and productivity across a range of other departments and functions as well as a being a catalyst in ensuring that the boardrsquos vision for the organisation is achieved
A significant percentage of NMDCrsquos shares are owned publicly Does the CFO play a role in balancing the interests of the shareholdersAs a CFO balancing the shareholdersrsquo interests is definitely part of my responsibility In order to achieve this goal there needs to be a careful evaluation of each decision while keeping the short-term and long-term goals of the company in mind At NMDC we actively implement a system where we utilise a balance scorecard as a method of ensuring that all our primary objectives are met yet at the same time continuously enhance our relationships with our shareholders
NMDC has completed various projects across the Emirates Are there plans to move abroadAs NMDC moves towards becoming an international player our strategic expansion plans are focused in areas within the GCC region and India In line with this strategy we opened
How has a company with such a unique set of deliverables grown so consistently over the yearsOur organisation strongly believes that the core to our strength is the people process and equipment A strategic decision led by our Board of Directors and the senior management has been implemented that required us to consistently invest in these three aspects to help expand our business beyond the territorial boundaries of the UAE and at the same time enhance what we can offer which is relevant to these segments We attribute our success to the efforts which every employee contributes We also strongly believe in the ldquoWe can make it happenrdquo principle The management raises the index of performance while setting SMART objectives within the organisation and encouraging the employees to achieve them
How has your position as the CFO changed over NMDCrsquos 35 years of operationAs the market evolves and business dynamics change my role as the CFO has become complex and more challenging A few years back I was mainly focused on bookkeeping accounting and other financial responsibilities such as arranging bank facilities But moving forward I became more involved
The UAE is progressively becoming a hub for world-class infrastructure The country has duly impressed the rest of the globe with noteworthy land developments showcased across the emirates Among the remarkable landscapes found in Abu Dhabi are the Corniche Beach Yas Island and Sir Baniyas Island Behind these successful projects is NMDC the dredging division of Abu Dhabi National Oil Company (ADNOC)
In an interview with CFO Magazine Gautam Pradhan Chief Financial Officer NMDC shares an exclusive look into the companyrsquos international blueprint for growth and his dynamic role as a strategic leader of one of the best in dredging and marine construction in the Middle East
59
Gautam PradhanINTERVIEW
wwwthecfomecom
branches in Qatar Bahrain Oman and India This has paid rich dividends recently as projects of strategic importance are bagged in Qatar and Bahrain Furthermore NMDC (UAE) has recently played a key role as a leader of an international consortium with Royal Boskalis Westminister (Netherlands) and Jan De Nul Group (Belgium) for the awarding of the Suez Canal Dredging project in Egypt Moving forward we have devised a strategic approach that will enable us to play a key role in the development of Indiarsquos marine infrastructure
What are the global strategies that are part of the CFOrsquos responsibilitiesAs CFO understanding the macro economic scenario risk analysis and mitigating those risks are all a part of my responsibilities I also have to have a proper comprehension
ldquoA few years back I was mainly focused on financial responsibilities moving forward I became more involved in strategic decision making mentoring and leading productivityrdquo
Gautam PradhanINTERVIEW
60 wwwthecfomecom
of the challenges faced by the company in terms of dealing with foreign contracts direct and indirect taxes and hedging and managing the integration process These are essential to enhance shareholders wealth and mitigate undue risk
How significant is accountancy for NMDC in its operations Why exactlyAccountancy is the lifeline of any company it does not only record the finances it also reflects the health of the organisation The MIS reports analysis trends and statistical information go a long way toward effectively providing
the diagnostic approach essential for the company
How have NMDCrsquos environmental activities helped the companyrsquos bottom lineNMDCrsquos work is well-synchronised with our environmental activities and specifically with nature Our activities are closely linked to sand and water and we view such activities with strategic importance Projects such as increasing water supply to mangroves and beach nourishment help us support the environmental activities while adding to our bottom line
ldquoAccountancy is the lifeline of any company it does not only record the finances it also reflects the health of the organisationrdquo
A burgeoning slice of Abu Dhabi coastline
The largest business awards
in the GCC30th November Dubai
nominate now at wwwstarsofbusinessawardscom
Stars of Business has become an iconic awards brand like no other in the region It recognizes the very best SMEs across 26 business categories Itrsquos universally respected as scientifically assessed and unimpeachably judged
327000 SMEs across the UAE$234 billion estimated total revenue of the SME sector4974 Awards entries in 20131856 Individual company applicants
Presenting Partner Strategic SME Partner Gold Sponsor Gold Sponsor VIP Hospitality Partner Supporting Partner
Trade Facilitator PartnerTrade Credit PartnerLogistics Partner
Institutional Partner Institutional Partner Event Partner
OrganiserPublisherMedia Partner Media PartnerPort Authority Partner
62
David Allen INTERVIEW
wwwthecfomecom
What went into completing your bestseller ndash Getting Things Done (GTD)After twenty years of researching developing and implementing a methodology for achieving stress-free productivity based upon
thousands of hours spent desk-side with
some of the best brightest and busiest people in the world I decided to write the manual for it Thatrsquos what Getting Things Done is
What are the five phases of mastering workflowIn order to get
any situation under control so
you can focus you will utilise these five
steps Whether yoursquore managing your kitchen
or your company you will need to collect and capture what has your attention clarify what if anything to do about it organise it according to what it means to you review and reflect upon it in relation to
Todayrsquos evolving CFO is often caught between the world of business set-up generating revenue managing employees and building strong company infrastructure When can things actually get done What can one do to boost productivity and master workflow World-renowned business coach David Allen has the answers
PRODUCTIvITy PRINCIPLES WITH
DAvID ALLEN
63
David Allen INTERVIEW
wwwthecfomecom
those are greatly subvertedHow does one maintain a fair balance between the time spent planning and actually getting things doneYou simply need to spend just the amount of time you need to to trust that what you are getting done is the right thing to be getting done in the moment It takes as long as it takes to get to that point Why would you do anything less
How can one apply your core productivity and workflow principles to todayrsquos technologically driven environmentThe principles and their techniques are system-independent Whether you have meaningful input from the Internet your smartphone or a conversation in the hall you must engage with it equally Technology has simply increased the flow of input and ease of distraction in your world
There is a lot of talk about how connected wersquove become and how connectivity is driving tremendous business growth Does connectivity actually come with its fair share of downsides
Connectivity is obviously a two-edged sword We can have intimate productive and creative interaction instantly with someone on the other side of the world and we can just as easily be distracted and seduced into those engagements when they may not be the best use of our attention and resources Donrsquot shoot the medium Itrsquos all simply bringing attention to your clarity of direction and priorities or lack thereof
Could you share a few quick tips with our readers to instantly boost productivityWrite everything down that has your attention Decide the very next actions required to get closure on all of them Any next actions that require less than two minutes do instantly Park reminders of everything else somewhere that yoursquoll see when you can do something about them
We are currently facing a massive information overload What are some basic principles you could suggest to mentally organise such large amounts of dataConstantly ask yourself Where am I going Whatrsquos important and rewarding to me Is this information
the whole and then engage your resources with intuitive trust
As a CFO how can you transfer efficient workflow management skills to your employees Itrsquos very difficult to legislate processes for individuals ndash you can really only hold them accountable for their results But if you are managing your own commitments and intersections with them with integrity and rigour it will automatically force your team to ldquostep up to the platerdquo in their own behaviours in order to meet your standards If you request their complete list of their company projects and they canrsquot produce it thatrsquos a sign theyrsquore not in control If they make a commitment to you that they havenrsquot kept thatrsquos data about their performance GTD is simply about good operational business practices
With so many planning and organising activities in your methodology is there a risk of losing spontaneity as a strategistThe reason for these best practices is to optimise freedom creativity and spontaneity Without them
ldquoBut if you are manag-ing your own com-mitments and intersec-tions with them with integrity and rigour it will automatical-ly force them to ldquostep up to the platerdquo in their own behaviours in order to meet your standardsrdquo
64 wwwthecfomecom
supporting that Park whatever you find potentially meaningful somewhere that is easy to access when needed
Being an entrepreneur is a non-stop job How do you ensure that you have an adequate work-life balance Pay attention to what has your attentionmdashwith regard to anything Your health relationships career finances etc Notice when something might be ldquooffrdquo and make good decisions about what you need to do to get it back ldquoonrdquo again
Does your work teach people to be efficient or effective In essence they are the same thing Effective choices are generated by efficiency on a higher level If you want to implement strategy most effectively it demands utilising your resources optimally which is efficiency
Does motivation actually improve quality of work or purely quantityDepends on the focus of the motivation You can be motivated to work harder and you can be motivated to work smarter
What is your favourite productivity mantra that
you implement in your day-to-day lifeUsing my own in-basket and note-taking devices to capture potentially meaningful and valuable ideas and soon afterwards clearing all of them out by deciding what to do about them if anything
Your books seminars and other work inspires many individuals and businesses Who is your personal inspiration or role model I have many about many different aspects of my life The only person though that I ultimately trust as my best guide is my higher self which I try to access as frequently and clearly as I can
Finally what advice would you give to current business owners and aspiring entrepreneurs looking to gain complete control of their life and businessCapture what has your attention clarify what you need to do about it to get it off your mind organise the inventory of all your commitments at all levels review and reflect on all of that regularly relax and trust your inner wisdom to engage with the most appropriate thing in the moment
ldquoIf you want to implement strategy most effectively it demands utilising your resources optimallyrdquo
David Allen INTERVIEW
APPSTECH TALK
wwwthecfomecom 65
mAxImISE BUSINESS lsquoON-THE-GOrsquo WITH THESE HANDy APPS
ipAd SpECIAL
SAMSUNG UNvEILS GALAxY NOTE EDGE
Network
AP
Display
OS
Camera
Video
Audio
Additional Features
GoogleMobile Services
Connectivity
Sensor
Memory
Dimension
Battery
The availability of service may differ by country All functionality features specifications and other product information provided in this document including but not limited to the benefits design pricing components performance availability and capabilities of the product are subject to change without notice or obligation
Samsung Galaxy Note Edge Product Specifications
25G (GSM GPRS EDGE) 850 900 1800 1900 MHz3G (HSPA + 42Mbps) 850 900 1900 2100 MHz4G (LTE Cat 4 15050Mbps) or 4G(LTE Cat 6 30050Mbps)May differ by country and carrier
27 GHz Quad-Core Processor
56 inch (1419mm) Quad HD+ Super AMOLED (2560 x 1440 + 160)
Android 44 (KitKat)
Rear Facing 16 Mega pixel Auto Focus camera with Smart OISFront Facing 37 Mega pixel camera with f19Rear Facing Camera HDR (Rich tone) Selective Focus Rear-cam Selfie Beauty face Virtual Tour Shot ShotampMore Dual CameraFront Facing Camera Selfie Wide Selfie
Codec H264 MPEG-4 H263 VC-1 WMV7 WMV8 Sorenson Spark MP43 VP8 Recording amp Playback up to UHD
Codec MP3 AACAAC+eAAC+ WMA AMR-NBWB Vorbis FLAC()() Ultra High Quality Audio (~192KHz 24 bit) support
Multi WindowUltra Power Saving ModeVoice Recorder (Normal Mode Interview Mode Meeting Mode Voice Memo)Download BoosterS Health 35Dynamic Lock ScreenBriefingEdge screen UX Revolving Interaction Immersive apps(Camera Video S Note)Ticker board Express me Quick Tools Night Clock etc
Chrome Drive Photos Gmail Google Google+ Google Settings Hangouts Maps Play Books Play Games Play Newsstand Play Movie amp TV Play Music Play Store Voice Search YouTube
WiFi 80211 abgnac (HT80) MIMO PCIeGPS GLONASS BeidouNFC Bluetoothreg v 41 (BLE ANT+)IR LED (Remote Control) USB20 MHL 30
Gesture Accelerometer Geo-magnetic Gyroscope RGB IR-LEDProximity Barometer Hall Sensor Finger Scanner UV Heart Rate Monitoring SpO2 (Dependent on market)
32 64 GB Internal memory + microSD slot (up to 128GB)3GB RAM
1513 x 824 x 83mm 174g
Standard battery Li-ion 3000 mAh Fast Charging (Adaptive Fast Charging amp QC20)
wwwthecfomecom66
APPSTECH TALK
AIR DISPLAY
SQUARE REGISTER
Using this app you can connect your iPad to your computer and use it as an additional screen While working on an important presentation or sales proposal you can extend or mirror your computer screen on your iPad This app is compatible with both Mac and Windows computers Note that to use this feature you have to install Air Display on your iPad and a separate free app on your computer The computer and iPad also need to be on the same Wi-Fi network in order to work in-sync
For Mac users the app allows you to connect to up to four screens ndash all at the same time
Apart from the ability to convert your iPad into a wireless display whatrsquos also attractive about this app is that it allows you to control your computer wirelessly using your iPad
This fantastic application can serve as a mobile point of sale for your business It allows you to accept credit card payments ndash including Visa MasterCard Discover and American Express A transaction fee of 275 is charged for every time you swipe a card The sale amount is transferred to your account within two working days
Once you download the app you can sign up and register for a unique card reader solution called the lsquoSquare Readerrsquo (this is free) Square Reader encrypts all card details and ensures that the transaction is secure Once you receive your Square Reader you can connect it to your device and are all set
The application also offers added features such as transaction history connecting to a receipt printer creating employee logins and more
AED 3699
PRICE
Free
PRICE
wwwthecfomecom 67
APPSTECH TALK
DOCUSIGNHave you ever been in a situation where your employees need you to urgently sign a contract but arenrsquot able to physically reach you in time DocuSign solves this problem with its easy-to-use eSignature feature In three easy steps you can sign important documents and securely send them to your intended recipient
First you have to import the document to your device ndash this could be from Dropbox Google Drive or another select applications You then place your signature or any other important legal information you need to include such as initials Once you have finished working on the document send it back via e-mail
Whatrsquos particularly great about DocuSign is the great emphasis it puts on security ndash so that users donrsquot have to worry about getting into any legal trouble
Use DocuSign and never miss a deadline again
Free for basic version
PRICE
MPAYAn initiative by the Dubai eGovernment Department mPay is a simple application that allows you to make important payments Once yoursquove signed up and entered your payment details you are good to go You can pay your Dubai Electricity and Water Authority (DEWA) bills Etisalat utility bills Dubai Police fines Recharge SALIK and much more
A handy feature is its lsquoauto-rechargersquo option which you can use to set automatic payments
Free
PRICE
Opinion CIMAPERSONALITIES
wwwthecfomecom68
NEW HORIZONSBy geetu Ahuja Head of gCC at CIMA
The days of the traditional accountant working within a small community in a small town in a small market have long gone CFOs are now being referred to as Chief Frontier Officers as they travel from market to market overseeing their offices overseas This new expanded role has distinct advantages for both the company and the CFO who gain new skills and new insights from foreign branches a single hand at the helm of many markets provides business perspectives on a global scale and benchmarks across the board
On a personal level working abroad also has huge importance Robert Walters the specialist professional recruitment consultancy recently conducted a survey
of almost 2200 employees across a variety of professions exploring a number of topics which ranged from working practices and attitudes to careers The results highlighted some notable trends particularly for finance professionals
In career progression for example the survey showed that 50 of all accountants see working abroad as either lsquoessentialrsquo or lsquoextremely usefulrsquo to furthering their prospects more than banking professionals lawyers and IT workers ndash a strong indication of how accounting professionals are thinking about their future either within their existing company or with opportunities elsewhere
Accountants with globally recognised qualifications obviously have a greater chance of gaining some experience abroad and the lsquoGen Yrsquo professionals in particular seem ready to pack their bags In a CIMA study conducted in the UK last year over a third of those seeking employment in the
next two years will prioritise opportunities abroad over those in their home countries many of them enticed by the career incentives offered by the Middle East
How quickly can they land what seems to be their dream job What are the realities It may be that the move is simply from one branch to another and the only significant difference is a view from the window but for those expanding rather than changing their roles we have seen a very real need for a depth and breadth of knowledge never needed before
As geographical boundaries are pushed ever-wider a CFOrsquos responsibilities are pushed with them For many finance executives the understanding of their own patch of land is no longer enough they now have to be aware of foreign markets up to speed with foreign trends and au fait with foreign laws There is a need for a new commercial awareness in geography as well as philosophy
As geographical boundaries are pushed ever-wider a CFOrsquos responsibilities are pushed with them
John vargheseQampA
wwwthecfomecom 69
BUSINESSSET UP YOUR
IN THE UNITED ARAB EMIRATES
TO
WAREHOUSESOFFICES INDUSTRIAL LANDFLEXI
Quick and easy company set-up
Less than an hour drive from Dubai
Complete cost-effective packages including licences and facilities
100 foreign ownership
Zero income and corporate taxes
Eligibility for UAE Residence Visa
BUSINESS SET-UP SOLUTIONS STARTING FROM AED 15000 (USD 4000)
RAK FREE TRADE ZONE PROVIDES
RAK Free Trade Zone Authority - Government of Ras Al KhaimahUAE (Ras Al Khaimah) Tel +971 7 2041111 (Dubai) Tel +971 4 7041875 (Abu Dhabi) Tel +971 2 6994888
Germany (Cologne) - Turkey (Istanbul) - India (Mumbai)
Call +971 7 204 1111 Visit wwwrakftzcom Join rakftz
MANAGEMENTDominic De Sousa
Chairman
Nadeem HoodGroup CEO
Georgina orsquoHaraGroup COO
EDITORIALGroup Director of Editorial
Paul Godfreypaulgodfreycpimediagroupcom
+971 4 440 9105
Group Managing EditorMelanie Mingas
melaniemingascpimediagroupcom+971 4 440 9152
Assistant EditorSteven Pradia
stevenpradiacpimediagroupcom+971 4 440 9114
ADVERTISINGPublishing Director
Rajashree Rammohanrajramcpimediagroupcom
+971 4 440 9131
Commercial Director - Business DivisionChris Stevenson
chrisstevensoncpimediagroupcom +971 4 440 9138
Media Sales ExecutiveEmma Hughes
emmahughes cpimediagroupcom +971 4 440 9120
Event Sponsorship ManagerGill Fairclough
gillfairclough cpimediagroupcom +971 4 440 9120
DESIGNHead of Design
Glenn Roxas
Senior Graphic DesignerFroilan Cosgafa IV
Production Manager James TharianData Manager Rajeesh Melath
Printed byAl Ghurair Printing amp Publishing LLC
Head OfficePO Box 13700 Dubai UAE Tel +971 (0) 4 440 9100 Fax +971 (0) 4 447 2409
The world is apparently growing smaller every day This is made clear with every opening information
flow branch office opened and intercontinental deal struck Globalisation is very loudly rearing its
influence As avenues widen flush with communication business concerns become more closely
aligned As such reports are emerging which indicate that global markets are easing from the
financial crisis and once again trading at levels seen prior to the crash Central to the renewed
expansion is the CFO
The levels of data sophistication private equity investors are attaining speak directly to the shift The
capital PE yields has grown to new heights As a result this intercontinental industry is relying a great
deal more on CFOs The strategic purview of company financials which only todayrsquos evolved CFO can
offer has become imperative An analysis of this progressively essential conduit of finance is present
within this monthrsquos coverage
The relationship between the United Arab Emirates and India is a classic example of successful
global relations This issuersquos country report focused on the subcontinent outlines how political
developments will drive the country forward whilst educate new investors interested in the space
While Indian tourists flock to the UAErsquos capital Emirate Abu Dhabi in record numbers the country as
a whole remains by far Indiarsquos most important trade partner Nearly $800 billion of trade revenue was
reported between the countries last year The figure is set to increase so what better a time than now
for finance professionals to gain a better understanding of this all important global partner
Expats of all stripes have flocked to the UAE Alongside the countryrsquos enviable geographic positioning
globalisation has long shaped where the Emirates head next In a bid to prepare local Emiratis for larger
gains abroad whilst better facilitate its accountancy bona fides inside the country the United Arab
Emirates Certified Accountant (UAECA) Certification was launched in Dubai in early November With
global accountancy body ACCA as a partner this lofty new certification will bolster Emiratisation aims
The UAE is preparing an even more financially global local populace with a goal of increasing the
number of qualified Emirati accountants in the country in the coming years The UAECA will almost
certainly ensure realisation
The CFOrsquos remit is growing and with it the physical landscape the role oversees Tech CFOs now
merge financials with tomorrowrsquos next bright idea regionally Meanwhile auditing experts act as the
pride of a nation This issue of CFO has a global outlook which matches just how far reaching todayrsquos
financial professional is consistently proving to be
Steven Pradia
Assistant Editor
TALK TO US
E-mail stevenpradiacpimediagroupcom Twitter cpilive
Facebook wwwfacebookcomCPILive LinkedIn group aelinkedincomincpidubai
copy Copyright 2014 CPI All rights reserved While the publishers have made every effort to ensure the accuracy of all information in this magazine they will not be held
responsible for any errors therein
CFOs THE WORLD IS NOT ENOUGH
To facilitate and support our expansion drive for the coming years and to serve our
esteemed clients better we have moved to a fully-owned state-of-the-art office facility
We stay committed to our vision to provide the best and most professional Accounting
Audit Business amp Management Consulting services to all our valued clients
OUR NEW ADDRESS
Level 15 Lake Central - At The Bay Business Bay Al Abraj Street PO Box 55535 Dubai UAE
Tel +971 4 276 2233 Fax +971 4 422 1680 dubaimorisonmenoncom
BUILDING BE T TER BUSINESSES - GLOBALLY
wwwmorisonmenoncom - wwwconsultuaecom
We have moved to our newMiddle East Head Quarters in Business Bay
Offices in UAE (Dubai DAFZ Abu Dhabi JAFZ RAK FZ RAKIA Sharjah) Oman Qatar India
1994 - 2014
CONTENTS
Infographic UAECA CFO Roundtable India8 10 12 14CFOs around the world
A new accountancy certification reaches the Emirates
Citi Commercial Bank hosts a discussion in Dubai
A closer look at the investment prowess of the subcontinent
18 22
26
DUBAI SILICON OASIS
Procurement
Saed AlSharid
The UAErsquos premiere tech freezone as overseen by its top finance executive
AT Kearney delivers a report aimed at CFOs
ldquoTrying to do business while not understanding accounting is like getting into the ocean and not knowing how to swim you will drownrdquo
ldquoPeople talk about strategybut getting the numbers right must always be the number one thingrdquo
CONTENTS
46
52
54
66
58 62 68
CompetencyCrisis
lindsay Degouve de Nuncques
WIEF
TechTalk
NMDC David Allen opinion
The Institute of Management Accountantsaddresses a looming gap
A new face heads up the ACCArsquos UAE chapter
The World Islamic Economic Forum sets up in Dubai for its 10th anniversary
The best iPad apps for the
global finance professional
Shaping the worldrsquos coastlines as seen by the CFO
The business coach and best selling author offers more of his recipe in a QampA
Geetu Ahuja of CIMA on the essentials of globalisation
Emerging markets CIMA ERP Private Equity30 34 38 42A how to for investment in the worldrsquos most promising localities
The Institute revamps its reknowned syllabus
IT business solutions are evolving in line with the role of Chief Financial Officer
Buyout firms demand more stringent financial data
ldquoOur qualification is about complete finance professionalsrdquo
38
4234
98
CFO InfographicPROJECTIONS
wwwthecfomecomwwwthecfomecom
CFO InfographicPROJECTIONS
Optimism
Risks and opportunities
Growth and expansion
CFOGLOBALISATIONINFOGRAPHIC
SOURCES Michael Page International Global CFO Barometer 2012 by Michael Page International Deloitte CFO Signals ndash Q1 2014 Deloitte CFO Signals Q4 2013 Robert Half CFO Insights
4738
44
36
55
72
39
26
42
20
95
71
35
68
CFOs express rising
optimismof CFOs are
optimistic about financial prospects
of CFOs believe its a good time to take greater risks
of CFOs believe financial risk management policies are not significantly aligned to cover market risks
see new product or service launches as a
key growth opportunity
40are hopeful about organisational growth opportunities
of CFOs are now more optimistic than in the last quarter
of CFOs are now more involved in risk management
of CFOs will pursue organic expansion
consider pricing pressures as the top growth inhibitors
are positive about the future state of the Indian economy
of CFOs are more optimistic than
last quarter
of CFOs willing to take greater risks
believe international expansion will play a
major role in in business development
expect MampA activity to rise over
the next year
rate this economy as good or very good
expect a major merger or acquisition
NORTH AMERICA
INDIA
MIDDLEEAST
SOUTHEASTASIA
UK
PACIFIC
WOMEN AS CFOS ( OF FEMALE CFOS IN OF RESPONDENTS)
( of respondents surveyed)
of CFOs spend significant amounts of time as strategists for company growth
76
AFRICA
AUSTRALIA
5 18
Lowest Highest
of CFOs with total annual compensation including bonus and benefits of over US$255000
of CFOs younger than 35 years old when they attained their position
Europe
Europe
13
Asia
14
SouthAmerica
29
Pacific
30North
America
49
49
NorthAmerica
21
SouthAmerica
Asia
43
31
Pacific
30
In North America 39 of CFOs are older than 50 years
On average CFOs worldwide attain
their position between the ages
of 30 and 39
of CFOs are confident about credit availability in the future
4831
73of CFOs feel that the finance function will play a larger role in their companyrsquos development and execution of business strategy
51of CFOs are satisfied with the performance of their finance function
56
98
CFO InfographicPROJECTIONS
wwwthecfomecomwwwthecfomecom
CFO InfographicPROJECTIONS
Optimism
Risks and opportunities
Growth and expansion
CFOGLOBALISATIONINFOGRAPHIC
SOURCES Michael Page International Global CFO Barometer 2012 by Michael Page International Deloitte CFO Signals ndash Q1 2014 Deloitte CFO Signals Q4 2013 Robert Half CFO Insights
4738
44
36
55
72
39
26
42
20
95
71
35
68
CFOs express rising
optimismof CFOs are
optimistic about financial prospects
of CFOs believe its a good time to take greater risks
of CFOs believe financial risk management policies are not significantly aligned to cover market risks
see new product or service launches as a
key growth opportunity
40are hopeful about organisational growth opportunities
of CFOs are now more optimistic than in the last quarter
of CFOs are now more involved in risk management
of CFOs will pursue organic expansion
consider pricing pressures as the top growth inhibitors
are positive about the future state of the Indian economy
of CFOs are more optimistic than
last quarter
of CFOs willing to take greater risks
believe international expansion will play a
major role in in business development
expect MampA activity to rise over
the next year
rate this economy as good or very good
expect a major merger or acquisition
NORTH AMERICA
INDIA
MIDDLEEAST
SOUTHEASTASIA
UK
PACIFIC
WOMEN AS CFOS ( OF FEMALE CFOS IN OF RESPONDENTS)
( of respondents surveyed)
of CFOs spend significant amounts of time as strategists for company growth
76
AFRICA
AUSTRALIA
5 18
Lowest Highest
of CFOs with total annual compensation including bonus and benefits of over US$255000
of CFOs younger than 35 years old when they attained their position
Europe
Europe
13
Asia
14
SouthAmerica
29
Pacific
30North
America
49
49
NorthAmerica
21
SouthAmerica
Asia
43
31
Pacific
30
In North America 39 of CFOs are older than 50 years
On average CFOs worldwide attain
their position between the ages
of 30 and 39
of CFOs are confident about credit availability in the future
4831
73of CFOs feel that the finance function will play a larger role in their companyrsquos development and execution of business strategy
51of CFOs are satisfied with the performance of their finance function
56
10
UAECA LaunchMARKET OUTLOOK
wwwthecfomecom
AAA launches an accountancy Certification for the UAE in collaboration with ACCA
CERTIFICATIONTAKING REGIONAL OWNERSHIP
The United Arab Emirates Chartered Accountants (UAECA) Qualification launched at Dubairsquos Armani Hotel 3 November by the UAE Accountants and Auditors Association (AAA) in association with the global accountancy body ACCA (Association of Chartered Certified Accountants) The announcement coincided with UAE National Flag Day and advanced ever expanding Emiratisation aims across the country With the support of the ACCA the skills gained will not only lead local UAE accountants to excel across the Emirates but also to encourage further growth internationally
A number of notable local leaders spoke at the event and
expressed their delight and favorable expectations for the UAECA His Excellency Sultan Bin Saeed Al Mansouri the UAE Minister of Economy Saif Abed Al Muhairi Chairman of the Board AAA Abdullah Amiri Financial Manager AAA and Ahmad Darwish Secretary General AAA and Chair of ACCArsquos members advisory committee in the UAE each offered speeches to the crowd of assembled finance professionals
ldquoWe are confident that UAECA will be the ambition of young Emiratis who would like to be the future leaders in the finance fieldrdquo said Al Muhairi
The UAECA qualification is the national qualification of the UAE and is based on
the globally recognised ACCA qualification This criterion will provide a dual-branded internationally recognised IFAC compliant route to membership of both AAA and ACCA
Said Stuart Dunlop regional director MENASA ndash ACCA ldquoThis unique partnership between ACCA and AAA will give students access to a national qualification making their skills and knowledge globally and locally relevant Once qualified as an ACCA member they will also be eligible to apply for membership to AAA meaning they can use the titles ACCA and UAECA after their names And because this partnership supports
ldquoWe are confident that UAECA will be the ambition of young Emi-ratis who would like to be the future leaders in the finance fieldrdquo
11
UAECA LaunchMARKET OUTLOOK
wwwthecfomecom
Saif Bin Abed Al Muhairi Chairman AAA
Ahmad Darwish Secretary General AAA
the governmentrsquos initiative to develop the accountancy and finance profession they will benefit from enhanced career opportunities as more employers and stakeholders choose to work with us in the futurerdquo
Emiratis in the accountancy field joined the procession eager to take part furthermore in what the AAA has planned unequivocally encouraged by the Associationrsquos hand in the UAECArsquoS launch The new qualification has stoked promise for bolstering Emirati involvement in local accountancy as well as international ventures which lie beyond the countryrsquos borders
ldquoAs an ACCA member Irsquom really proud the ACCA route
The new qualification has a good deal of promise for bolstering Emirati involvement in local accountancy as well as international ventures which lie beyond the countryrsquos borders
to membership has formed the basis of the new national qualification of the UAE It gives aspiring Emiratis recognition on a local and global stage and is a unique opportunity that will develop our careers and the profession in the UAErdquo said Ayesha Al Zaabi Senior Accountant of Group Finance Aerospace amp Engineering Services Mubadala
The future of accountancy appears brighter than ever in the UAE with the unveiling of an internationally supported qualification specific to the country The potential increase of Emirati participation spells great promise for the finance industry as it grows from within
12
at CPI Media Group the discussion offered a candid conversation of lively opinions bringing together key individuals from prestigious and influential businesses based in the UAE
The spirited discussion delved into how varied and increasingly imperative the Chief Financial Officerrsquos role has become
Vincent Valladares Managing Director Middle East Head Citi Commercial Bank led the vibrant discussion with the support of Anand Nagaraj Vice President Head Product Development Citi Commercial Bank whilst Grant Thornton Partners Jay Raney and Amgad Nassif offered their views as well
CFO RoundtableMARKET OUTLOOK
wwwthecfomecom
One of the trends in world business currently attracting considerable comment and debate is the changing role of the CFO No longer simply the custodian of the businessrsquo finance or the head of accounts the CFO is increasingly seen as a master strategist and the key architect of corporate decision-making As such a roundtable event held by Citi - in collaboration with Grant Thornton - was both a timely and revealing landmark on shifting attitudes and aspiration
IN CHANGING TImESCITI COMMERCIAL BANK CORRALS A pOwERfuL MEETINg Of MINdS
The management guru Tom Peters recently commented that ldquoIn these perverse and perhaps illusory times is it any wonder that the CFO is seen as the one reliable point of reference - the one person from the C-suite cut out for more responsibility and bigger things in the businessrdquo
Citi Commercial Bank and Grant Thornton echoed the importance of this shifting role by gathering a collection of leading CFOs and finance executives at Dubairsquos Grosvenor House - hosting a keynote round table called lsquoThe Changing Role of the CFOrsquo In a world where CFOs are increasingly wearing a number of new hats within their respective enterprises the event asked pertinent questions such as -
ldquoThe CFOs duties have changed as strategy and other focuses are becoming increasingly importantrdquo
bull Whether the CFO is increasingly the businessrsquo key strategist bull Whether or not the role is more and more impacted by changing legislation and regulationbull Is the CFO now effectively the CEO-in-waitingbull What is the role of management education in this new mix
So while much has been written lately about how essential it is that the CFOrsquos function evolve and change the dayrsquos discussion took an overtly practical view and gathered the opinions of the individuals at its core
Hosted by Paul Godfrey Group Editorial Director
13
recession environment has created an atmosphere rife with new regulations which CFOs are expected to master as these international enterprises venture into new markets and encounter sensitive and risk management-oriented frameworks
Citirsquos Vincent Valladares observed ldquoRegulatory issues are becoming bigger for banks as well as compliance And when we look at doing business with companies we want to look at those with good management teams because otherwise it can become difficult The CFO plays a very important role within this processrdquo
CEO waiting in the wingsWhen the group was quizzed on their individual desires to become CEO every hand around the table went skywards with an affirmative ldquoyes all of usrdquo - highlighting how commercially-minded todayrsquos CFOs have become Not to mention just how axiomatic the relationship between CEO and CFO consistently proves to be
Another factor is that amid all this diverse change - in roles working contexts and background economics - the CFO is seen very much as the person creating order control and standardization No small task
Perhaps the only certainty is that the communication of ideas is leading the charge forward for one of the business worldrsquos most important roles and The Changing Role of the CFO provided a definitive benchmark for this onward march
CFO RoundtableMARKET OUTLOOK
wwwthecfomecom
Members of the roundtable trade ideas
Vincent Valladares offers his position
CFO or CCOldquoThe duties have changed in some very clear ways A phrase that I am constantly coming across and strongly agree with is that we should be thinking of the CFO as the Chief Commercial Officer as opposed to someone who deals solely with finance Responsibilities central to finance continue to exist of course but strategy and other focuses are becoming just as if not more importantrdquo commented Rishi R Vig ZAFCO CFO
In addition to how much larger a remit commercial decisions are demanding the importance of regulatory protocols was a much- discussed topic The post-
Vincent Valladares Managing Director Middle East Head Citi Commercial Bank
Anand Nagaraj Vice President Head Product Development Citi Commercial Bank
Jay Raney PartnerGrant Thornton
Amgad Nassif Partner Grant Thornton
Paul Godfrey Moderator Group Editorial Director CPI Media Group
Steven Pradia Assistant EditorThe CFO Middle East
Ganapathi Bhat Senior Manager of Finance GEMS Education
Mark Downie Financial Controller Proclad
Nimesh Lokhandwala ICAI
Jehangir Pocha Himalaya
Kamal Shah Finance Manager Logicom
Rishi Vig CFO Zafco
Low Wai Leng Financial Controller Dubai Precast
Rajeev Jain CFO Afri Ventures
KG Vincent Finance Director FDC International
Ramesh Pemmasani Head of Accounts Intersun
Nagesh Nadig AIC
ROUNDTABLE ATTENDEES
IndiaCOUNTRy FOCUS
wwwthecfomecom14
SUBCONTINENTAL SURGE
By Arvind Chari
Last year was undoubtedly a turbulent time for emerging markets due to political instability inflation and the fledgling recovery in the West all causing significant headwinds Unsurprisingly this has led some commentators to be sceptical about the prospects for these markets including India But the Indian economy is showing signs that it will weather the challenges of the next few years This may not be an easy task given the
manner the Indian rupee plunged in response to the US Federal Reserversquos decision to taper asset purchasing Nevertheless India does have the political will to make the necessary reforms to deliver on its potential
While the Fedrsquos decision has caused some fallout in emerging markets commentators expect that this will tail off over time Meanwhile Indiarsquos economy is driven by domestic demand which means that
India does have the political will to make the necessary reforms to deliver on its potential
With an eye towards the nationrsquos key partnership with the Middle East the following India country report shares economic prospects accounting for last yearrsquos instability ndash defining what investors can gain moving forward
IndiaCOUNTRy FOCUS
wwwthecfomecom 15
$791bTotal trade between India and the UAE in lsquo13
64Expected growth of Indiarsquos economy in lsquo15
Indiarsquos debt market needs to attract stable investors over lsquobond touristsrsquo short term foreign flows evident in Indiarsquos bond markets
it is better placed than most to deal with the world post-quantitative easing Without the so-called lsquotaper tantrumrsquo investors in India might have focused more on the positives in 2013 But given the overall improvements in the economy and the political outlook we feel the India narrative will be harder to ignore in Q4
One of the most significant changes has been the appointment of Dr Raghuram Rajan as governor of the Reserve Bank of India (RBI)
last year He is clearly part of a dying breed of central banker that is one who actually knows how the world works He will make mistakes but the most important thing is that he will be trying to move India in the right direction as shown by his decision to continue with a hike in interest rates at the end of January Bond and currency markets have reacted very well to this move which shows the bank is now ahead of the curve in fighting inflation In October Rajan remarked that
Indiarsquos debt market needed to attract stable investors over lsquobond touristsrsquo a reference to the short-term foreign flows that have been evident in Indiarsquos bond markets His stance is an indication that policies could be shifted to attract more long-term stable money into Indiarsquos government bond markets away from a focus on the foreign-bank lsquoproprietaryrsquo investments that dominate flows currently
Indiarsquos current account deficit (CAD) was set to halve
STAT FACTS
IndiaCOUNTRy FOCUS
wwwthecfomecom16 wwwthecfomecom16
in the year ending March 2014 It was due to fall to 25 from 48 of GDP in 2013 The fall in gold imports alongside currency depreciation was a major contributing factor to this reduction Indiarsquos exports became more competitively priced over Q1 2014 which has led to higher exports in textiles chemicals and leather goods while the drop in the value of the rupee has also led to a fall in non-oilgold imports We expect the CAD to increase to around 3 of GDP for this financial year as gold import restrictions are removed a shift that should still be easily fundable Additionally the RBIrsquos FX reserves have increased by $34bn through the bank and non-resident Indian deposit swaps which was a much higher figure than anticipated This gives the RBI the additional firepower to intervene in the markets if it is necessary to counteract currency volatility In fact the
rupee has been remarkably stable since October and has steadily outperformed its other lsquofragilersquo emerging-market peers
There has also been an improvement in how other countries perceive India Net foreign direct investment is stable despite some negative sentiment driven by the outflows from the bond markets and banks Vodafone described by Rajan as lsquothe poster child for companies with difficulties in Indiarsquo is investing more in spectrum and also buying out minority operators In addition significant Japanese investment into Indiarsquos infrastructure is a further boost to the country and this relationship will be one to watch over the coming years
Overall the world has a much better impression of India than it did a few years ago when the country was facing significant obstacles In 2010 increasing inflation expanding fiscal deficits and an escalating CAD ndash all coupled with slowing growth rates ndash put India in a very difficult position But in 2012 the government realised that the current situation could not continue and since then there has been a much greater focus on reform
A mixture of poor growth and bad policies dramatically hampered Indiarsquos progress earlier this century frustrating many investors But the country is now beginning to drive a wedge between itself and the other more troubled emerging-market economies We feel
162KIndian tourists in Abu Dhabi yTD
Significant Japanese investment into Indiarsquos infrastructure is a further boost to the country and this relationship will be one to watch over the coming years
STAT FACTS
IndiaCOUNTRy FOCUS
wwwthecfomecomwwwthecfomecom 17
Population size 12 billion
Area 3287263km2
Type of government Federal republic
Official language Hindi
Capital city New Delhi
Largest city New Delhi
GDP (2012) $1825 trillion
Central government debt as a proportion of GDP 67
Currency Indian rupee
Conversion rate against the euro 0013
COUNTRy FILE
Hire a local manager or partner who has a very good
understanding of local rules and regulations
Have a longer-term investment horizon because the Indian rupee will remain
volatile for a while
donrsquot view volatility as a risk view the
integrity of the government and
management as a risk
Travel to India and feel the lsquomicrorsquo India
story rather than just read about the lsquomacrorsquo India story
Be patient and have realistic
expectations ndash things take time to work out in India
TOP TIPS FOR DOING BUSINESS IN INDIA
that these differences will mean that India significantly outperforms those economies over the coming years And while we might still be facing some turbulent times for India at least the dark clouds are beginning to break
As with any emerging-market economy the next few years will present challenges alongside opportunities and investors will have to
be comfortable with this state of affairs But India is committed to making the reforms it needs to improve its future The country has much better potential for growth than any developed country and it is also in a far better position than many of its emerging-market peers Now is the time to take advantage of all that India has to offer to investors
INNOvATIONrsquoS BOTTOm LINE Bill Chappell occupies a rare space as the CFO of Dubai Silicon Oasis a free zone dedicated to the development of technology across the emirate In the following interview he shares with CFO Magazine how far along technology has come in the UAE and why the figures are the most important aspect of his role as Chief Financial Officer
18
Cover StoryTECHNOLOGy
wwwthecfomecom
Dubai Silicon Oasis (DSO) occupies a vast 72 million square metre stretch of land in the northern reaches of the UAErsquos most globally recognised emirate Established in 2005 as a government-owned free zone devoted to the development of technology DSO has in the time since welcomed over 1087 companies into a space of which more than 59 of has been developed
Responsible for liaising with DSOrsquos companies both large and small whilst overseeing the free zonersquos balance sheet CFO Bill Chappell mans a unique station as a finance
executive with a keen eye for technological growth
ldquoIrsquove been with Dubai Silicon Oasis for nine years and my role is rather split I am the finance director but Irsquom also responsible
for our initiatives on technology incubation
and investment which is all very interestingrdquo
Chappell said Despite Chappellrsquos
years of experience in the technology industry granting him an imperatively strategic purview as CFO he makes clear what is most important as Chief Financial Officer
ldquoGetting the numbers right must always be the number one thing People talk about strategy and a number of other things but you must focus on the numbersrdquo
Chappell offered ldquoMy background is in technology companies for over ten years previous to coming here so I have a knowledge of technology which I brought to Dubai above all My overlap personally involves understanding technology whilst being a CFOrdquo
When Dubai Silicon Oasis first came into existence the area was undeveloped with no roads customers or residents Today the oasis acts as both a home for industry and residence whilst the Dubai Silicon Oasis Authority operates a number of services unique to companies which operate within the free zone A business incubation centre venture capital funding structure and various forms of entrepreneurial support are among DSOrsquos many aspects available to tenants
Said Chappell ldquoThere are three categories of companies at DSO There are smaller companies which deal more largely with our entrepreneur and incubator ecosystem The other extreme involves global firms such as Fujitsu or SAP and we look at their needs and make sure theyrsquore satisfied as customers They want our help to get setup And then there is the middle group and I meet them if they need my help as CFOrdquo
DSO counts SAP Porsche Fujitsu and Qordoba among its vast bank of companies
19
Cover StoryTECHNOLOGy
wwwthecfomecom
each of which are granted access to the Chappellrsquos well-honed expertise
ldquoBill has been involved in several meetings to gain updates about the company and offer input on what he thinks we should be focusing on whilst asking questions about our financial processes He also sits with the board on occasionrdquo said Loulou Khazen Baz founder of Nabbesh an online marketplace which connects professionals with work opportunities
ldquoDubai Silicon Oasis has been an important Investor at various stages of Nabbeshrsquos journey and a vital stamp of approval Our company has found priceless value in DSOrsquos support and the approachable nature of an involved CFO like Billrdquo
Chappell faces a number of challenges related to investment due to the region not ranking tech developments as high as traditional platforms such as real estate Additional concerns related to innovation have found themselves increasingly entering the CFOrsquos remit as related to encouraging ideas specific to the region Chappell is confident however that certain companies based in DSO are addressing these issues
ldquoIn this region one of my biggest challenges is getting people to understand
ldquoPeople talk about strategybut getting the numbers right must always be the number one thingrdquo
20 wwwthecfomecom
the complexities of tech Technology is a good investment class but the region is focused very much on real estate whilst the investment class of technology doesnrsquot rank as highrdquo said Chappell ldquoIn order to widen the general understanding we want to be developing solutions which address problems specific to the region We have one or two gems for example Qordoba a translation company which translates content in multiple languages The programme utilises artificial intelligence and as a result is getting smarter and smarter each time it is asked to translate so that it understands the meaning of what itrsquos translatingrdquo
Another key variable for DSO is centred on supporting
Dubairsquos goals based around becoming the worldrsquos capital for Islamic finance Chappell describes his role as CFO as one with ldquotwo thousand handsrdquo a multi-layered position which he seems to relish being held responsible for While DSO has grown tremendously in its near decade of existence the free zonersquos exuberant CFO sees lots more to come
Said Chappell ldquoI see us going from strength to strength Wersquove been in existence for nearly ten years When I joined it was empty desert Now we have over 1000 companies and an estimated 43000 living on site Within five years wersquoll also be further down the path and wersquoll be recognised for our contributions to the smart city and the Islamic economyrdquo
ldquoWithin five years wersquoll be further down the path and recognised for our contributions to the smart city and the Islamic economyrdquo
Dubai Silicon Oasis
headquarters
1080Companies in DSO
72millionDSOrsquos land mass in square metres
STAT FACTS
Cover StoryTECHNOLOGy
THE MIDDLE EAST ACCOUNTANCYAND FINANCE EXCELLENCE AWARDSWEDNESDAY 10 DECEMBER 2014AT THE JUMEIRAH BEACH HOTEL DUBAI
ACCOUNTING FOR EXCELLENCE
Once again the very best talent in the world of accountancy and fi nance will be celebrated by ICAEW at a stellar awards ceremony
ICAEW is a professional membership organisation supporting over 142000 chartered accountants around the world And on Wednesday 10 December 2014 at the Jumeirah Beach Hotel in Dubai wersquoll be recognising excellence in ten categories featuring Business Leader of the Year CFO of the Year Corporate Finance Deal of the Year and the Internal Audit Excellence Award
With an impressive line-up of speakers special guests and entertainment it all adds up to a trulymemorable evening
To submit a nomination or for more information visit icaewcommiddleeastawards
Nominations close on 1 October 2014
A WORLD LEADER OF THE ACCOUNTANCY AND FINANCE PROFESSION
400595_ICAEW_MiddleEast2014_Ad_NBAD_DEVERE_207x270_AW_3indd 1 27082014 1541
PROCUREMENTANALyTICS
wwwthecfomecom22
Return on Supply Management Assets (ROSMA) is a pioneering framework launched by AT Kearney after four years of testing one aimed at addressing the aforementioned procurement gaps The performance measurement standard was initiated with an eye on creating a benchmark for the procurement industry and providing a compass to direct investments
ldquoROSMA started in 2010 And it started out with conversations with the CFO There are a group of folks in the company talking about how great their achievements are however
the capital that procurement claims isnrsquot often obvious and can create a disconnect within the companyrdquo said AT Kearney Vice President Federico Mariscotti
This yearrsquos annual report surveyed a number of businesses and arrived at a series of significant findings which outline procurement patternsbull Top-tier companies generate
approximately $16 million in financial return per procurement employee yearly A reported 35 per cent of return derives from applying advanced methods
bull Mid-level performers typically
The first step for compa-nies in the Middle East is to take a good look at what they expect procurement to bring
Leading global management firm AT Kearney recently released a report on the evolving conversation which surrounds procurement A key aspect of the report spells out how much CFOs stand to gain by making more pronounced investments based on utilising procurement in terms of value The relative distance between CFOs and their respective companyrsquos procurement methods is cited as cause for concern
THE NEW LANGUAGE OF PROCUREmENT
generate four to five times of their investment in procurement valuation yet have not exemplified growth since 2011
bull Performers at the lowest level surveyed do not achieve monetary benefits which cover costs
bull The majority of organisations surveyed do not possess the tracking structures needed to analyse procurement performance
bull Regardless of company size or industry procurement
PROCUREMENTANALyTICS
wwwthecfomecom 23
The CFO community has not yet awakened to the value of procurement
performance varies though companies with sophisticated reporting techniques experience less variable performance
The reportrsquos express aim to create a benchmark for procurement follows a wave of process monitoring which found notice in the manufacturing industry in the 1980s supply chain research and engineering in the 1990s and sales and marketing performance being closely tracked in the 2000s
ldquoProcurement costs can represent anything from 20 to 90 of a companyrsquos total cost going from the public sector to consumer goods Yet the productivity of the team that presides over the supply market interactions has a way of explaining their value add using savings that do not add up to the PampL impact measured by finance Savings definitions different baselines and cost avoidance all contribute to a murky aggregate view of the impact on the businessrdquo added Mariscotti
In the Middle East the challenge is fundamental ndash getting the spend data in the first place Companies admit they often do not have a clear categorisation of intelligence lack an agreed definition of savings measurement and generally position procurement as a pre-eminently transactional activity lacking the mandate to contribute value Procurement processes as a result remain centred around purchasing are paper based and lack transparency The first step for companies in the Middle East is to take a good look at what they expect procurement to bring
wwwthecfomecom24
Influencedspend
The inconsequential The brand leaders
Leaning up
Note All three segments start with a common hypothetical spend of 1000 to normalize the case example
Source AT Kearney analysis
Source AT Kearney analysis
TOP QUARTILE
mIDDLE-TIER 50
BOTTOm QUARTILE
704
764
644
522
527
396
42
30
(138) (25)
(63)
19
39
28
15
21
4
3
60
32
18
Sourcedspend
Units of yield
Post-compliance
benefits
Additionalbenefits
Financial results
delivered
19x
17x
middle tier
bottom quartile
TOP-QUARTILE PERFORMERS DELIVER NEARLy TWICE AS MUCH VALUE AS MIDDLE-TIER PLAyERS
THE CFO COMMUNITy HAS NOT yET BEEN ldquoAWAKENEDrdquo TO THE VALUE OF PROCUREMENT
Procurement is not on the radar for those who gave the wrong answers to three essential questions
leadership with accountability for performance is clear but either the measures are not clear or performance is believed to be weak variable or unknown ndash or a mix
leaners and leaders answered all three essential questions correctly and also answered most or all other questions correctly
to the table and how it should support the business To make a steep change companies need to understand the multiple benefits which will occur for investments made once theyrsquove allowed for stronger procurement practices
The benchmarking aspects of ROSMArsquos report speak directly to CFOs based on an existing widespread inability to track and improve this often unquantifiable nature of procurement practices According to the report the CFO community has not yet awakened to the value of procurement and Chief Financial Officers are thus divided into three segments The brand leaders (25) those leaning up (63) the pack (774) and the inconsequential (138)
Said Mariscotti ldquoThis is a way to give procurement a measurable quality that CFOs can quantify You have to know what yoursquore doing with relation to procurement in order to do it well ROSMA gives you a number which helps you understand how good your procurement is working as compared to peers It lets you know whether or not you could be doing something differentrdquo offers Mariscotti
CFOs have exemplified an increasing ability to share in a companyrsquos strategic efforts whilst expand their respective remits Procurement is emerging as the latest segment of this conversation Understanding its value beyond the transactional is the first step for CFOs to fully engage with harnessing the potential of procurement and grow to become a part of the elusively paltry portion of brand leaders indicated in ROSMArsquos report
PROCUREMENTANALyTICS
The pack(774)
Al Sharid is the Vice Chairman of Emirates Transport and has enjoyed a successful career in which the lionrsquos share of his tenure has afforded him a seat at the helm of the business
ldquoI remember when I first received the GM of Tata in the late 80s he said to me lsquoYou are the youngest GM I have ever metrsquo I was 29 years old at the timerdquo Looking at Al Sharidrsquos rapid ascent to the top of his organisation can be mind boggling to the average observer however to those few who strive to push themselves to their limits it is perhaps more common a reality As with any top performer we can often see their desire for results and impact
early on in life and with Saeed the first stride of his race to the top began with an accounting degree in university
It was 1976 and the excitement of the UAErsquos biggest milestone moment its inception just five years earlier still clung to the air from Fujairah to Abu Dhabi and every emirate in between A nation was being built Saeed had just finished high school and went to the United States where he was to study engineering
ldquoI was not yet 18 years old it was 1976 and I was sent to America to study it was the beginning of a dream and a young liferdquo says Al Sharid Unfortunately Al Sharidrsquos academic tour of duty came to
THE EmIRATI DREAm Saeed Al Sharid is today an elder statesman in the world of UAE accountancy With decades of know-how based on chairing a number of key Emirati organisations Al Sharid is today atop his own family firm In the following exclusive interview he shares the importance of education the evolution of a nation and just how being an accountant has driven his many triumphs
an abrupt halt when his father suddenly passed and he was forced to return home ldquoWe are seven brothers and I am the middle one so during tough times we always come together and during this period the strength of my family pulled me through I have three younger brothers and I felt I had to be there for them I felt responsible for them My mother played an omnipotent role in pulling us through this dark moment in our history The death of my father forced us to become more independentrdquo says Al Sharid
Now back in the UAE with his plans of studying abroad dashed Saeed looked at the local schooling system within which Al
26
InterviewPERSONALITIES
wwwthecfomecom
Saeedrsquos desire for results took its first stride with an accounting degree in university
By Shane phillips
27
InterviewPERSONALITIES
wwwthecfomecom
Ain University had just opened ldquoAl Ain University was the pride of the Emirate at the time the students were like celebrities The first batch of graduates were all promised 50000 AED from HRH Sheikh Zayed I was one year late so technically I should not have graduated with the first batch but I was determined I worked an extra course load did summer school and soon caught up to the first class 50000 AED in 1981 was like 5000000 AED today so I was very motivatedrdquo says Al Sharid
Saeed not only caught up with the other students but he wound up graduating atop Al Ain Universityrsquos first class of graduates with a 38 GPA ldquoWe Saeed Al Sharid
28 wwwthecfomecom
to the organisationrdquo he says Saeed first joined Emirates Transport after seeing a small newspaper advertisement for an accountantrsquos position He applied but initially they did not want to hire a local because locals were too expensive After a few months however they called him back for an interview and offered him a job
Initially Saeed struggled to get a promotion or even a raise He worked tirelessly to develop himself and kept detailed notes of his work After nearly two years went by with no promotion he requested to meet with the Chairman of the corporation to discuss his career The Chairman was a Minister making him even more senior than his title implied Al Sharid was courageous and determined ldquoYou should not stay silent you have to take initiative your future is in your handsrdquo says Al Sharid
ldquoI met with the Chairman and told him about my work and what I wanted to do He did not talk he just listened and that was it It was a 15-minute meetingrdquo says Al Sharid Three days after Al Sharidrsquos pivotal appointment he was promoted to Deputy General Manager Directly from a Trainee to DGM skipping all the roles in between at the age of 27 years old They doubled his salary and catapulted him into a senior leadership role
ldquoI felt it was quite strange to move up that fast and personally was not sure I could handle the job I had a lot of resistance from the board I had people in their 50s reporting to me and they were not happy about it So I just took a step back and did not try to get involved in their work too fast I went slow and watched my step This was a very important
ldquoThe UAE was a brand new country and a lot of work was being done to develop the nationrdquo
never had any idea of a career path and there was no such thing as career counsellors or lsquocareer servicesrsquo at the school So when you graduated most people just joined the Ministries The UAE was a brand new country and a lot of work was being done to develop the nation The Federal Government paid the highest and so one just joined them There was no grand vision or dream that I was off and chasing In those times you simply tried to do the next best thing So I ended up working in the Ministry of Health as an accountant Back then a university degree was a veritable qualification and it had a lot of market equity today it wonrsquot even get you in the doorrdquo
As the Middle East market evolves not only are university degrees becoming more common but so are post graduate degrees such as MBAs and even PhDs As such the competitive positioning of professional qualifications are gradually eroding over time
ldquoTo stay competitive executives today will require deep and specialised knowledge of their respective industries an intellectual arbitrage that provides superior results To beat the market to manage the risks to develop a sustained competitive edge For this executives need to stay in a role for the full strategic cycle which is at least four years in durationrdquo says Sharid In the case of Al Sharid he was there for 33 years
ldquoDo you just want a job or are you looking to make a contribution to your company Too many young people today are just looking for a title or a position The difference between those who make it into senior roles and stay there is the desire to create impact to add value
InterviewPERSONALITIES
2012year Moodyrsquos upgraded the UAE economy from developing to emerging
37The UAErsquos global rank for GDP
STAT FACTS
moment for me to gain valuable leadership experience early on To make my learning curve even steeper the General Manager quit after two years and I became the GM at the age of 29 years oldrdquo explains Al Sharid
He ascended to the top job in less than five years and stayed in the position for almost twenty years He was totally committed and could even be found in the bus yard at four in the morning to greet the drivers as they started their shifts ldquoThe key to being successful in business is to keep your finger on the details Some people let the details slip and if this happens you will suffer I get into the yard I meet the drivers I meet all the staff If you saw us you will not know who was the GM or who was the driver You have to realise people will never work for you they will only work with you To me Emirates Transport is like my familyrdquo says Al Sharid
When asked what his keys to success are he says ldquoI think if I was not an accountant I would not be a good leader I would not be a good manager In my opinion trying to do business while not understanding accounting is like getting into the ocean and not knowing how to swim you will drown The Chief Executive Officer who does not know how to create the financial statements is always at the mercy of his Chief Financial Officer He cannot take any big decision on his own and he will not even be able to challenge the CFO Accounting is the bedrock of any business and a critical skill set for any leader No one can argue with this factrdquo says Al Sharid
With over 20 years of experience in tow and the related chairmanships to boot Al Sharid
ldquoTrying to do business while not understanding accounting is like getting into the ocean and not knowing how to swim you will drownrdquo
has since early last year partnered with his family to form Al Sharid Auditing Though the Emirati youth is not as keen to pursue positions related to accountancy as Al Sharid was he feels that there is hope to close the gap
ldquoIt is difficult to find an Emirati expert I studied the audit market specifically and there were others like me then But now you break Emirati auditing involvement into three categories The first involves the big firms This is followed by individual smaller enterprises But thirdly a lot of locals opt to work with the government also Most are not managing their own firms they just have a partnership and they are building thatrdquo Al Sharid explains
ldquoAl Sharid Auditing however is a firm that includes my brother and our two sons which make up a body of qualified professional auditors We established this firm last year and work closely with the government We decided to make one firm together instead of having many smaller entitiesrdquo
Moving forward Al Sharid plans to grow his familyrsquos firm by applying the very belief system which has catapulted him to his position of power Marketing concerns which are designed to furthermore announce how tailored Al Sharidrsquos offerings are at present a key variable to forging ahead
Said Al Sharid ldquoMoving forward wersquore focusing more on the marketing of our firm Itrsquos a matter of not exactly expanding but going over the right deals The market is tough and the small jobs are easy but we donrsquot need them We donrsquot want to be in many rooms we want to be in the important onesrdquo
29wwwthecfomecom
InterviewPERSONALITIES
1UAErsquos rank among GCC nations for chosen hub of all major accountancy bodies
STAT FACTS
Latest insights from PwCrsquos 15th Annual Global CEO Survey revealed that 59 per cent of CEOs see emerging markets as more important than developed markets to their future What is making emerging markets such a pressing priority for C-suite executives Why are emerging markets increasingly grabbing headlines
Emerging markets are large fast-growing and ambitious markets best known for being the growth engines of todayrsquos global economy Research (1) suggests that emerging market countries are expected to amount for more than 60 per cent of global GDP growth ndash a clear indication of the wealth of opportunity they present
Understanding emerging marketsBased on estimates by the International Monetary Fund emerging economies are expected to grow two to three times faster in comparison to developed nations Explaining this fast-growth and the rise of these emerging markets an article on Forbescom details that ldquoduring the US housing crash and resulting credit crisis of 2008 world markets were saved from a total disaster thanks to the big emerging markets ndash mainly Brazil India and China The global credit crisis was one of the longest deepest and most painful in history It toppled Wall Street icons like Lehman
The following report explores emerging markets from West to East which are at the helm of economic development trade and innovation and highlights what their rising popularity means for the growth of your business
Brothers required government bailouts of bulge bracket banks and shocked the global economy with a deep economic recession and even a deeper crisis of confidence Its most important legacy though may be one that has yet to fully unfold the crisis revealed a new world order in terms of economic and market dynamics Emerging market economies finally arrived as
30
Market IntelligenceANALyTICS
wwwthecfomecom
ENTERING EmERGING mARKETS STRATEgIES RISKS ANd OppORTuNITIES
Projected annual GDP growth 2014 amp 2015
PANAMA
67
PERU
RANK42
55
Projected annual GDP growth 2014 amp 2015
Ease of Doing Business
RANK55Ease of Doing
Business
TOP TEN MARKETS
(1) Source here Accenture Research ldquogearing up for growth ndash five imperatives for success in emerging markets 2011 Henry Egan and Armen Ovanessoff
31
Market IntelligenceANALyTICS
wwwthecfomecom
LATVIA
CZECH REP
MALAYSIA
THAILAND
SOUTH KOREA
CHINA
RANK75
41
21
50
45
35
74
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
CHILE
RANK 34
43
Projected annual GDP growth 2014 amp 2015
Ease of Doing Business
RANK 24Ease of Doing
Business
Ease of Doing Business
RANK 6Ease of Doing
Business
RANK18Ease of Doing
Business
RANK 7Ease of Doing
Business
RANK 96Ease of Doing
Business
POLAND
32
RANK45Ease of Doing
Business
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
Source httpwwwbloombergcomnews2014-01-29qatar-china-top-ranking-of-frontier-and-emerging-marketshtml
powerful essential and permanent contributors to global economic growth and sustainabilityrdquo
Bloombergcom recently ranked the top emerging markets based on their performance on 19 economic financial political and social indicators In order of ranking the top ten markets were
CHINA
SOUTH KOREA
MALAYSIA
CHILE
THAILAND
PANAMA
PERU
LATVIA
POLAND
CZECH REP
1 6
2 7
3 84 9
5 10
Market IntelligenceANALyTICS
32 wwwthecfomecom
Making an entryIf your business is looking to enter any of these emerging markets itrsquos worth considering the following checklist
1 Assess your readiness The biggest mistake you can make is to enter a market without proper evaluation of your business Donrsquot do it just because everyone else is Like every other major business decision be sure to speak to your Board of Directors partners investors stakeholders and most importantly your CFO and certified accountants Make a business plan enlisting your objectives goals investment strategy potential risks etc
2 Research research research Do your homework Treat emerging markets as any other international expansion venture and do thorough research on the new market ndash Who are the competitorsWhat is the price point for your product What are the customer demographics What kind of infrastructure do you need for the manufacturing production or distribution of your product
3 Understand the legal framework Emerging markets might not have rules and regulations as clearly spelled out as your home country Invest some time and money in understanding how business procedures work A very obvious area of focus for UAE-based companies is tax Since the UAE is a tax-free economy companies arenrsquot exposed to tax accounting and other legislation surrounding
ndash failing to adapt to the needs and expectations of the local customers is surely a recipe for failure Time and again companies havenrsquot been able to create a customised offer and have had to exit these markets with huge losses A success story however is that of the Haier Group Haier famously introduced washing machines to specifically suit the water pressure levels in the households of India ndash an emerging market strategy that worked very well in their favour and helped them become leaders in that sector Another great example is that of Coca-Cola as explained in an online Reuters article by Matt Reilly ldquoIn Brazil Coca-Cola has used social media to better understand consumer preferences and has developed a successful local network to supply traditional Coca-Cola products as well as fruit juices tailored to local tastesrdquo
7 Local currency This is a complex yet critical area to consider when entering a new market Ask yourself questions such as ndash What is the local currency rate How does it compare to the currency in your home country Is the country import-led or export-led and what impact can this have on the global value of the currency Remember that fluctuations in currency rates can hugely effect your overall investment and thereby the return on investment
8 Build partnerships When entering an unknown territory it is quite useful to have the backing and support of peers who can help you in case of unforeseen challenges This is
this Another area to consider is corruption ndash emerging markets are notorious for high corruption red-tape and bureaucracy Speak to your company lawyer to assess these areas and take proper measures to avoid them before-hand
4 Invest in local talent Working with people already accustomed to the new market avoids the hassle of relocation and reduces costs But more significantly gives you skilled talent to work in these unique environments This also works in favour of your company as it gives you a clear understanding of the kind of compensation packages you will have to offer to your employees For instance employees based in China might want high remuneration and low healthcare benefits while in India it may be quite the reverse Recruiting local talent will also have a trickledown effect ndash your employees will easily be able to cater to the local customer needs without the need for intense training
5 Supply chain 44 per cent of business leaders surveyed consider accessing the right supply chain capabilities extremely or challenging in emerging markets according to Deloittersquos Globalisation Survey Make sure that you know who your suppliers will be what the production costs are whether their production procedures fit your time constraints and if the final product matches your level of quality
6 Cater to local market demands This is one of the most important aspects of all
Do your homework Treat emerg-ing markets as any other internation-al expansion venture
Market IntelligenceANALyTICS
33wwwthecfomecom
the very reason why Mergers and Acquisitions are a popular way to enter into emerging markets Many companies piggyback on their clients who are entering these markets For instance if you are an IT consultancy working on a major project for a manufacturing and trading company with operations across India and China you can use their resources and expertise to explore opportunities in these countries
Remember to consider these steps every time you enter a
new market as every locality has its own set of unique needs One strategy doesnrsquot fit all
Surviving fierce market conditionsWhile the massive opportunity that lies within emerging markets paints a pretty picture businesses need to be wary of bottlenecks such as corruption volatility gaps in laws and regulations and strong competition There have been several high-profile cases of multinational companies withdrawing from emerging
markets owing to immense corruption pressures
There is also a high percentage of inherent risks in these markets which amount to many companies not succeeding in their first attempts It is important to take your time when adapting to these markets and fully understand the business dynamics Following recent case studies and going over the lessons learnt by multinational companies who have made an entry into these markets consider the below
bull Is your companyrsquos head-office ndash and senior management ndash located in your home country without any C-level representation in the new emerging market
bull Are you focusing all of your resources on doing business in the emerging market at the cost of losing profits in your home market
bull Have you researched local competitors in these markets who may already have a strong standing and proven models of success
bull Are you using the same ldquoentry approachrdquo and business model across different emerging markets
If your answer to one or more of these questions is yes it may be time to re-evaluate your presence in these markets and map out a different strategy
Finally remember that no matter what the outcome of your admission to these markets might be your business is sure to emerge out of this stronger tougher and ndash of course ndash ready for a new challenge
of companies believed they had invested more resources in
emerging markets than was required
entered a market without fully assessing the ability of the supply chain to support the expansion
entered with the wrong pricing model and an inappropriate
operating model
CONSIDER THE RISKS
48
24
20
There is also a high percentage of inherent risks take your time when adapt-ing to these markets and fully understand the business dynamics
Source Emerging markets expansion and the supply chain Economist Intelligence unit survey conducted on behalf of EY September 2010
34
CIMA INTERVIEW
wwwthecfomecom
The Chartered Institute of Management Accountantsrsquo (CIMA) Managing Director Andrew Harding visited Dubai to host the Institutersquos seminar on global management accounting principles In the wake of CIMA revising their well heralded syllabus Harding discussed with CFO Magazine what the newest edition held how CIMA is applying a digital focus to its courses and just how CFOs can gain from it all
CURATING CURRICULUm
35
CIMAINTERVIEW
wwwthecfomecom
can give CFOs something they can take and something they can measure their own management accounting services against They can benchmark using this and they can utilise this to see their progress
Part of that is having professional management accountant in place I donrsquot think the landscape matters I believe that there is a common business need wherever you may be around the globe
All of the emerging markets need these skills The first aspect that accounting schools teach is about auditing skills because theyrsquore interested in protecting investments Then they teach you how to keep your business sustainable and to have a sustainable business you need to have a management accountant in place So itrsquos not just here in the UAE where we see these demands we see the same demands in China Indonesia and other powerhouse economies We see their skills shortages and we see the need for solutions in those areas
Talk to me about how this new syllabus works to promote the evolution of a CFOThis syllabus that wersquove
Can you expound on just what can be found within the new CIMA syllabusWe just revised the syllabus we do that every four to five years What we have done this year is a very significant revision It is based from a complex study that we have carried out to over 3000 people from 200 companies globally It is the very first revision since the joint venture with CIMA and AICPA So this has allowed us to attain a syllabus rich with all the data from all the continents in the world For the first time wersquove had real involvement from companies in the USA in this project
Why is the collaboration between AICPA and CIMA significantMost important is the Chartered Global Management Accountant (CGMA) designation that AICPA and CIMA both issue for qualified management accountants Wersquoll have a common curriculum and common examination which will begin on January 1 which gives us a global designation for management accountants wherever they are around the world There are plenty of accounting bodies who claim to be global but actually this is the only
genuinely global designation This is because it has the only one with a North American participation in it So we can say that the CGMA will be just as well-recognised in the USA as it is in Dubai
With the global landscape in mind how do you create an even objective that applies to localities which may prove widely differentialThe landscapes are different but businesses have common needs wherever they may be What wersquove particularly seen since the global financial crisis is that companies are actively looking to build management accountant capability to build that capacity within their organisations They donrsquot want to have a poor quality of information that lacks insight being used in their businesses So they see management accountants can bring solutions to that As a result of all the work wersquove done with companies who participated in the syllabus wersquove also put together a series of what we call Global Accounting Principles This is a series of principles which describes what good management accounting looks like and what top quality management accounting in a company should be producing This then
ldquoCompanies are actively looking to build man-agement accountant capability to build that capacity within their organisa-tionsrdquo
36 wwwthecfomecom
worked on acknowledges the skill set needed by professionals throughout their career Therersquos a base level of competence that is needed but beyond that there is more There is business acumen the ability to communicate and influence and finally the ability to lead So you start off enhancing your raw technical accounting skills Then you need to place that into the context of the business that you are in Then as you move forward and as you rise to become the CFO yoursquoll need the others You have to learn how to present your work in a way that can influence and make an impact in the business The final piece is the ability to lead projects and other functions and to a great extent lead the board of directors Thatrsquos how the context works itrsquos not just about technical knowledge
How do you find that CFOs in the GCC region are responding to this programmeThe CFO has a real challenge on his hands now In 1975 80 per cent of corporate value is showing on the balance sheet By 2010 that dropped to less than 20 per cent Your traditional PampL reports no longer reflect the value of the business or how the business drives value
All things that should be of interest to investors is missing With things like the integrated report initiative wersquore starting to see the other dimensions that add value to business For CFOs thatrsquos all about strategic thinking and considering the long-term objectives Being articulate in implementing those strategies keeping in mind the risks and opportunities that the business faces We are also nowadays witnessing a whole new world of transparency around that
Are there electronic aspects to CIMArsquos advancing approachThe interactive case study simulates a real working situation and it tests how they can apply their knowledge in real life situations Theyrsquoll be presented with a scenario a few weeks before they take the exam so they can prepare for it They then go to an exam centre where they are asked questions about how they will deal with a certain situation in the real world Theyrsquoll get an email from the CFO giving them a certain task for a particular period of time We want to make it as close to reality as possible so students taking the exam will be assessing situations based on real life scenarios
ldquoThe CFO has a real challenge on his hands now as traditional PampL reports no longer reflect the value of the businessand [the role] must focus on strategic thinking and considering long-term objectivesrdquo
218KCIMA members worldwide
STAT FACTS
CIMA INTERVIEW
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
38
ERPANALyTICS
wwwthecfomecom
Faster more nuanced IT solutions are available to the modern day CFO Whilst Chief Financial Officers are called upon to analyse data across a number of spectrums the digital tools on hand are likewise being expanded to aid in focusing more squarely on the bottom line
ExCELLING WITH ERP
The global landscape is today firmly entrenched within a digital model As a result CFOs whom are called upon to take a larger role in a number of variables must also increase their abilities with respect to utilising the many upsides which tech innovations offer a business When surveyed about their most pressing concerns CFOs generally return a varying collection of responses Revenue growth regulatory changes and meeting quarterly goals are among the chief concerns Virtually every obstacle can be hurdled by way of maintaining the order of financial reporting and data which has long been
synonymous with the Chief Financial Officerrsquos remit A widening berth of ERP solutions is making this data all the easier to come by
Despite how sophisticated the market is today it was not long ago that ERP departments once spent days processing business reports
Said Rohan Tejura Assistant Vice President Focus Softnet ldquoTraditional ERP systems were solely data repositories Moreover these repositories werenrsquot real time and were incredibly dependent upon locational connectivity With the emergence of smarter development platforms more versatile devices and
39
ERPANALyTICS
wwwthecfomecom
more intuitive designs of system development the overall experience of the ERP now extends from data warehousing to reporting analysis trend mapping business intelligence and governance oriented capabilities Yet these solutions amazingly execute all of these deliverables via portable handheld devices and through cloud environmentsrdquo
New generation ERP systems must now be on the go whilst including up to the minute analytics to provide deeper insight into the business ERP Analytics tools use historical data captured from various business functions to provide valuable information for efficiency and business performance each incredibly priceless to a leading CFO
Finesse is an ERP provider which is continually addressing the transformation of output which the ERP industry is offering the equally transitioning role of CFO
ldquoWe provide end-to-end business management solutions to SMEs and Enterprises Our approach to ERP is much more than providing simply an operational management systemrdquo said Finesse COO Sunil Paul
ldquoWe believe that todayrsquos businesses need much more than integrating sales with inventory accounting and manufacturing but also to have seamless integration with all their sales channels including the point of sales ecommerce and inbound sales solutionsrdquo
A major im-petus of the ERP-cen-tered growth is based on how effec-tive com-prehensive real-time data proves to be for the CFO
40 wwwthecfomecom
before thereby creating new global benchmarks for overall economic growth
Microsoft Arabia CFO Sadrul Khan offered insight into just how far the knowledge economy has influenced regional financial leadership by explaining how one of the most prioritised technologies by CFOs in the region is social platform monitoring
ldquoOne of the five technology choices that CFOs tend to prioritise in boosting productivity efficiencies and faster decision making in the fast paced business environment which include a social platform that monitors trends customer sentiments and helps process mashable data for customer centricity and business growthrdquo said Khan
A major impetus of the ERP-centered growth is based on how effective comprehensive real-time data proves to be for the CFO Whether employed as on-premise ERP software-as-a-service or cloud-based solutions a nearly identical ethos is being utilised Allowing the CFO to quickly access the performance of all facets of a business is paying dividends in the boardroom a reality which is showing itself increasingly in the Middle East
The technologically-charged relationship between ERP solutions and the regionrsquos CFOs is expanding and as a result has catalysed what many see as GCC economic performance outstripping that of many economies outside of the region as a result
In order to compete in todayrsquos fiercely competitive environment organisations need to think both innovatively and out of the box They require more insights about their business and their customers and need to ensure that they are able to meet the expectations of their internal as well as external stakeholders Enormous amounts of data both structured and unstructured is continuously being generated within the internal and external systems of the organisation which if analysed can be of immense value both to the business and subsequently the stakeholders associated with the organisation
With the the era of CFOs labouring over spreadsheets now in the past given how many business frontiers have become so dependent on mobile options such as the cloud more and more tech companies are providing the regionrsquos CFOs with information technology that converts traditional internal and external data into rich visual insights This information is then used for faster decision making and provides the ability for a CFO to assess manage and control risks Regional CFOs have grown enabled to drive corporate strategy accordingly demonstrating how the knowledge economy is now in full force amongst the Gulfrsquos corporates
Given that advanced IT has now become a regular CFO tool the regionrsquos CFOs are subsequently making faster decisions and driving internal growth models with greater speed and agility than ever
Tech companies are providing the regionrsquos CFOs with information technology that converts traditional internal and external data into rich visual insights
ERPANALyTICS
Donrsquot discoveritrsquos counterfeittoner afteritrsquos too lateOriginal HP Toner works first time every time1 unlike cheap toners which fail over half of the people who try it2 Non-HP toner can compromise your printerrsquos performance to give you streaked blotchy or faded prints Only original HP Toner cartridges deliver unmatched quality for the most professional-looking prints 100 of the time1
1 A QualityLogic 2010 study commissioned by HP comparing original HP LaserJet Monochrome print cartridges with nine brands of non-HP toner cartridges available in Europe Middle East and Africa for the HP LaserJet P1505 and P4015 printers HP 36A and 64A For details see wwwqualitylogiccomEMEAmonotonertestpdf 2 From a 2012 EMEA Lyra Research study commissioned by HP Results based on a total of 1050 HP Color LaserJet users who have used both original HP and non-HP toner cartridges of whom 552 experienced problems with non-HP cartridges
copy 2014 Hewlett-Packard Development Company LP
42
Private Equity ANALyTICS
wwwthecfomecom
The rise of PE-backed acquisitions is forcing CFOs to develop an entirely new set of skills
THE PRIvATE EQUITy CFO
The CFOrsquos utility in the world of private equity is without question on the rise The once-held belief of the CFO existing solely as the ldquoaccounting guyrdquo has been abandoned Over the last 20 years the role of CFO has become more demanding - requiring not just finance and accounting acumen but also a financial literacy in corporate planning risk management MampA assetliability management and regulation This evolution has been driven by a number of
key factors Yet the private equity industry which is now reshaping the corporate landscape through active ownership is by far the most significant factor driving change within the role of the CFO
PE-backed buyers today represent a larger percentage of overall buyers in the corporate acquisition marketplace than ever before Data provider Prequin estimates that as of June 2014 the capital raised by PE funds that
has not yet been deployed amounts to $114 trillion globally The result of this ldquodry powderrdquo is that a vast quantity of corporate acquisitions in the coming years will be undertaken by the private equity industry As such CFOs will be more accountable to demanding ldquosmart moneyrdquo shareholders than at any point in recent history Budgeting accounting and financial reporting will no longer exist as sole priorities but as a core competency among a
ldquoBy effec-tively using real-time data CFOs can create a dynamic process that proac-tively drives performance account-ability and value crea-tionrdquo
By Aaron Heidari
43
Private Equity ANALyTICS
wwwthecfomecom
robust set of complimentary and required skills Most of all the bar for CFOs is rising as PE investors will only accept above-average performance from their management teams
CFOs were once more reactive in function setting budgets based on other executivesrsquo plans and managing the flow of reporting to shareholders on a quarterly and yearly basis Today CFOs are required to become proactive managers of their respective businesses alongside their C-suite compatriots using a granular data-driven approach to aggregate analyse implement and report on every aspect of a companyrsquos operations
An important tool to drive this value creation process are KPIs Yet KPI structures including both aggregation and output are generally not up to the standards required of private equity investors prior to an investment being made
ldquoThe benefits of using KPIs and monthly reporting packages are significant By effectively using real-time data that is actionable and by partnering with functional area leaders within the organisation company CFOs can create a dynamic process that proactively drives performance accountability and value creationrdquo said Amanda Robinson Vice President of Accordion International in Dubai a consulting firm which is comprised of former private equity and investment banking professionals who
MENA region Cumulative Funds Under Management Since 2008
Source Zawya private Equity Monitor
19 636 20 36321 586
22 64323 506 24 250
-
5000
10000
15000
20000
25000
2008 2009 2010 2011 2012 2013
Cu
mu
lati
ve f
un
ds
($ m
)
$15mAverage MENA PE investment size in lsquo13
50Percentage of investment in IT and energy sectors
STAT FACTS
44 wwwthecfomecom
work with companies to deliver cost-effective project execution services
Active shareholders whose money it is being spent will typically require a data-driven justification before approving any budgets capital expenditures or new acquisitions Furthermore in many private equity backed companies the use of debt and the matching of shorter-term bank financing with longer-term investments will only be considered after a robust analysis is conducted to understand the companyrsquos ability to service that debt in the future This evaluation is not simply to identify revenues expenses and profits Itrsquos about drilling down into every transaction and rooting out data processing and reporting At least that is the expectation
The most valuable CFOs are those who have the ability not just to scrutinise and understand the financials but all also possess a wider grasp of the underlying data which truly comprise the business As an investor who has just acquired a stake in a new business I want a CFO who can manage the transition and stay ahead of my expectations Most of all a CFO should impress upon the companyrsquos shareholders a new way of doing business The first 100 days of an acquisition are said to be the most important During this period the CFOrsquos worth will be established when the new financial plan is due and the platform for the next five years of growth is presented
A CFO should man-age the tran-sition stay ahead of expectations and impress upon the companyrsquos shareholders a new way of doing business
Investment Volume By Sector Since 2006
Investment Volume By Sector in 2013
Source Zawya private Equity Monitor
1
3
30
17
3
28
3
4
6
4
6
5
17
9
9
6
9
5
8
6
6
2
3
10
Education
Education
Information Technology
Information Technology
Other
Other
Telecoms
Telecoms
Media
Media
Transport
Transport
Oil amp Gas
Oil amp Gas
Healthcare
Healthcare
Consumer goods
Consumer goods
Food amp Beverages
Food amp Beverages
Leisure
Leisure
Manufacturing
Manufacturing
ANALyTICS
Private Equity
2000857 NBAD ratibi mag ad 200x268 Finalindd 1 92514 1017 AM
46 wwwthecfomecom
THE FUTURE OFACCOUNTING EDUCATIONAddRESSINg THECOMpETENCY CRISIS
Have you ever stopped to think about how the accounting profession has changed since you graduated from college Recent graduates can answer this question by reflecting on the last two or three years whereas for other more seasoned professionals answering this question requires a bit more thought and memory searching Indeed we can all think of ways that the field of accounting is remarkably different today from the one we likely envisioned during our college daysmdashregardless of which decade we each donned our cap and gown This gradual transformation of the accounting profession leads to two important questions related to competencies bull Which competencies are important for success inaccounting todaybull Were these competencies consciously developed as partof your accounting degree programme
We suspect that more than a few of you would answer ldquonordquo to the second question Put another way our profession may be facingmdashmore so than at any time in the pastmdasha ldquocompetency crisisrdquo that is a gap between the competencies needed for professional success and those taught in our college classrooms today We propose a three-pronged strategy or ldquogame planrdquo for overcoming this competency crisis and in turn better preparing accounting graduates for the challenging world they will face First all of us accountants need to understand the changes that have already taken place in our profession and perhaps more importantly anticipate the changes that are on the horizon Second we need to educate ourselves and future generations of accountants so that as a collective group we can deliver the expanding set of competencies demanded in todayrsquos dynamic organisational
contexts Third as professional organisations and as individuals we need to think beyond ourselves by asking How can I (or we) help the accounting profession address the competency crisis
A Shift Toward Integrated ThinkingMany articles and white papers have been written that describe in detail the changes that have occurred in our profession over the last few decades but for our purposes wersquod like to distill these changes down to one crucial idea How does the accounting function add value to an organisation Accountants have evolved from support-oriented personnel who hand off information to others who actually make decisions into business partners who ldquohave a seat at the tablerdquo with managers
By peter C Brewer James E Sorensen CpA CgMA and david E Stout
47wwwthecfomecom
1048576bull What regulatory risks mayaccompany the proposal
1048576bull What social and environmentalfactors will we face if for example the proposal requires investing in overseas operations
1048576bull What types of employeeresistance may arise if we implement the proposal and how will we overcome the root causes of any such resistance
1048576bull Can and how should we valuefuture options associated with the proposal such as expanding or contracting the investment over time as new information becomes available
1048576bull Should we use debt or equity tofund the proposal
In short accountants have evolved to become integrated thinkers who enable EPM by partnering with managers across the organisation to add value Yet as EPM has gradually become the centrepiece of our professionrsquos value proposition accounting education hasnrsquot done enough to embrace it To overcome this gap wersquod like to further suggest that the concepts of competency integration and EPM need to come ldquofront and centrerdquo as we move forward in educating the next generation of successful accounting practitioners
Accounting Education No Longer on the SidelinesRecently a task force consisting of members of IMAreg (Institute of Management Accountants) and members of the Management Accounting Section (MAS) of the American Accounting Association (AAA) addressed the competency issue How should accounting education change fundamentally to help close the competencies gap The efforts of the task force led to
cash flows and how to apply discounted cash flow (DCF) decision models such as net present value (NPV) is of foundationalmdashsome might say critical mdash importance But integrated thinkers draw on an understanding of organisational strategy coupled with a broader set of competencies (beyond what might be considered technical or foundational knowledge) when making these types of decisions For example they consider how behavioural issues may influence the capital investment decision-making process Perhaps the financial estimates contained in the NPV analysis are too optimistic because the manager who prepared the numbers has a vested interest in seeing the project approved Decision makers also need to consider issues such as leasing vs buying a capital asset and the corresponding impacts on the financial statements and ratios that are tracked by investors and lenders What nonfinancial factors are associated with the proposed investment Add in the tax consequences of capital investment decisions coupled with the need to maintain internal control over any new business processes tied to these decisions and the need to think in an integrated fashion across a variety of accounting competencies becomes apparent
Furthermore becoming a true business partner with managers across the organisation requires more than simply integrating various accounting competencies It also means thinking like a business manager or a chief executive officer (CEO) Returning to the capital budgeting example an integrated thinker will ask questions such as
across the organisation Together they formulate and plan strategies then participate in collaborative decision-making processes that execute those strategies in a manner that adds stakeholder value Said another way accountants have evolved to become enterprise performance managers This shift in our orientation from a support function to an enterprise performance management (EPM) role has enormous implications for defining the determinants of success within our profession the most important of which involves becoming collaborators and ldquointegrated thinkersrdquo Take for example a common but important business decision process capital investment analysis Certainly technical knowledge regarding how to estimate relevant after-tax
48 wwwthecfomecom
expanding capital budgeting discussions to include financial statement impacts tax consequences and internal control issues integrates topical coverage across the External Reporting and Analysis Taxation Compliance and Planning and Assurance and Internal Control competencies shown in Figure 1
Third accounting curricula can incorporate a broader set of management competencies For example evaluating capital investment proposals from the perspectives of change management (Leadership) social and environmental issues (Ethics and Social Responsibility) regulatory concerns (Governance Risk and Compliance) and capital structure (Additional Core Business Competencies) brings a CEOrsquos perspective to the decision-making process
Fourth accounting curricula should include foundational competencies such as proficiency with spreadsheets and written and oral communication In the context of capital budgeting this may include asking students to use Microsoft Excel to perform a sensitivity analysis and then to present their findings to the entire class
Working to Fix the ProblemAt this point although you may agree with us that therersquos a competency crisis within the accounting profession you may be wondering What does this have to do with me What can my organisation do to help address this so-called competency crisis The answer a lot Practice partners and academic partners can help the accounting profession overcome the competency crisis That said letrsquos take a closer look at the role of practice partners first
improvement) and accounting competencies (external reporting and analysis planning analysis and control taxation compliance and planning information systems assurance and internal control and professional values ethics and attitudes) Of critical importance to the framework is the assumption that the set of competencies contained in Figure 1 would be developed and integrated over time through a blend of formal education (including continuing education) training and job experience
What levels of integrationmdashon the road to developing integrated thinkers in accountingmdashare possible First accounting educators can integrate within a single accounting competency So referring back to our capital budgeting discussion teaching computational models such as NPV analysis coupled with a review of various behavioural issues associated with capital investment decisions would be an example of integrating within the Planning Analysis and Control competency listed in Figure 1
Second professors can integrate across accounting competencies For example
a recently published article that contains a proposed framework for accounting education reproduced here as Figure 1 The framework is general in the sense that itrsquos meant to apply to all accounting students not subgroups based on career specialisation such as tax assurance services corporate finance and the like Itrsquos based on the idea that accounting educators can better prepare students to deliver our professionrsquos EPM value proposition through integrated competency-oriented curricula (For more see ldquoFocusing Accounting Curricula on Studentsrsquo Long-Run Careers Recommendations for an Integrated Competency-Based Framework for Accounting Educationrdquo in the May 2014 edition of Issues in Accounting Education)
A glance at Figure 1 reveals three levels of competencies foundational competencies (communication ability to leverage technology and analytical thinking and problem solving among others) broad management competencies (including leadership ethics and social responsibility and process management and
Proposed Competencies-based Framework for Accounting Education
FOUNDATIONALCOMPETENCIES
ACCOUNTING COMPETENCIES
BROAD MANAGEMENT COMPETENCIES
leadership
ExternalReportingamp Analysis
PlanningAnalysis
amp Control
TaxationComplianceamp Planning
InformationSystems
Assuranceamp InternalControl
ProfessionalValues Ethics
amp Attitudes
Communication
Quantitative
Interpersonal
Technological
Analytical Thinking ampProblem Solving
Ethics amp SocialResponsibility
ProcessManagement ampImprovement
GovernanceRisk amp
Compliance
AdditionalCore BusinessCompetencies
Although you may agree with us that therersquos a competency crisis within the account-ing profes-sion you may bewondering What does this haveto do with me
A practice partner should be or become a CMAreg (Certified Management Accountant) maintain professional certification by completing required Continuing Professional Education (CPE) hours and regularly read the IMA publications Strategic Finance and Management Accounting Quarterly
In addition there are a number of excellent resources that deal with topics covered in this article and that IMA makes available to its members
Strategic Finance PowerPacks(wwwimanetorg SFPowerPacks) These are resources focused on contemporary topics similar to those discussed earlier Current offerings include Risk Management Strategic Planning IT Skills amp Software and Internal Controls Each PowerPack includes a combination of resources such as research studies articles and links to webinars
Statements on Management Accounting (SMAs)(wwwimanetorgresources and_publicationsresearch_ studies_resourcesstatements on_management_accounting aspx) SMAs represent monographs classified into one of the following six categories Leadership Strategies and Ethics Technology Enablement Strategic Cost Management Business Performance Management Finance Governance Risk and Compliance and the Practice of Management Accounting Multiple items are available within each category For example the Practice of Management Accounting category includes (among other items)
49wwwthecfomecom
the Definition of Management Accounting and Implementing Shared Service Centres
Research Studies (wwwimanetorgresources_and_publicationsResearch_Studies_and_ResourcesAll_reportsaspx) The ldquoThoughtLeadershiprdquo section of IMArsquos website includes research covering a broad range of issues classified into seven categories For example under the ldquoGlobal Business Environmentrdquo category the following two research reports are available ldquoKey Differences Between IFRS and US GAAP Impact on Financial Reportingrdquo and ldquoCosting Methodologies and Cost Management Practices in the Peoplersquos Republic of Chinardquo
IMA Leadership Academy (www imanetorgprograms_events leadership_academyaspx) As described on the IMA website this programme is designed to assess a memberrsquos leadership status enhance that individualrsquos skills (principally through monthly webinars) and recognise leadership achievements These benefits are free to members
How You Can Make a Bigger Impact In addition to attending local regional and national IMA meetings consider inviting a small group of students to each chapter meeting This could be a wonderful (and relatively low-cost) option for mentoring aspiring accountants and finance professionals providing networking opportunities and introducing students to cutting-edge issues regarding the practice of management accounting Joining a university accounting
advisory group may be another way to influence the development of EPM in that institutionrsquos curriculum design
Other methods to enhance EPM in your organisation include (1) forming user groups within your company your local IMA chapter or your industry to review and share EPM experiences (2) encouraging advancement in the firm to be linked to EPM proficiency (3) focusing your companyrsquos recruiting efforts on candidates who display a background in andor understanding of EPM and (4) organising cross training within your company to enhance a mutual understanding of each otherrsquos respective roles
Finally visit the Competency CrisisTM website (http competencycrisisorg) set up by IMA to unite the accounting and finance constituencies professionals students employers academics and professorsmdashand explore competency issues through the lens of each stakeholder group The site is designed to ldquoencourage a discourse spur action and create a community dedicated to resolving the serious crisis of competency present in the professionrdquo Special sections of the website are devoted to educators students and employers professionals
Our Partners in Education Much like a practice partner an academic partner should be or become a CMA maintain professional accreditation by completing CPE hours and regularly read IMArsquos publications
Academic members of IMA can pursue and actively promote the CMA programme at their respective institutions
50 wwwthecfomecom
IMArsquos website contains helpful resources including an exam content overview content specification outlines for each of the two parts of the CMA exam and learning outcome statements The current exam covers some of the professional competencies represented in Figure 1 A summary of changes to exam content which will be effective in January 2015 is provided on the IMA website in News amp Media Relations which is located under ldquoAbout IMArdquo (See the press release dated March 24 2014) Other helpful resources include ldquoICMA Announces CMA Exam Content Changesrdquo in the April 2014 issue of Strategic Finance as well as ldquoManagement Accounting Career Readiness Shaping YOUR Curriculumrdquo
These forthcoming changes are based on the most recent IMA study of the knowledge and skills needed by management accountants from the view of CFOs controllers and other accountingfinance professionals from around the world
Also consider taking a group of your students to the IMA Student Leadership Conference held each November The Conference provides excellent networking opportunities for you your students and practicing professionals Students can learn firsthand from Conference presenters the challenges and opportunities facing finance and accounting professionals today
Moreover if your institution doesnrsquot currently have an IMA Student Chapter consider forming one One of the authors of this article David Stout reinstituted the student chapter at his school (Youngstown State University) after travelling with a group of his students to the IMA
Student Leadership Conference in Cleveland Ohio Through an IMA Student Chapter on campus students are able to work closely with a sponsoring local IMA chapter and bring to campus speakers who are experts in a wide range of topics including those discussed earlier in this article Each year student chapters compete for an Award of Excellence (AOE) and recognition as an Outstanding Student Chapter In addition IMA student members are able to engage in networking activities leadership training mentoring and community service programmesmdashall through their local chapter
You also might consider volunteering to serve as a Campus Advocate In this role yoursquoll represent IMA in all major matters of interest to your students (scholarship opportunities starting a student chapter mentoring and the like) and to your institution (for example leveraging IMA resources to advance the relevancy of the accounting curriculum use of educational case studies published in the IMA Educational Case Journal and access to IMArsquos ethics curriculum)
And if you havenrsquot yet done this ask IMA to endorse your accounting programme (information is available at www imanetorgeducator_resources indexaspx) This programme is designed to identify business curricula that meet the quality educational standards required to prepare students to earn the CMA designation Endorsement is based on an analysis of the curriculum and topics covered on the two-part CMA exam Currently 12 programmes have been endorsed
Finally if your school has an IMA Student Chapter consider participating in the annual IMA Student Case Competition where students are asked to propose a solution to a real world problem (Cases are solicited each year by Raef Lawson IMA VP of Research and Policy and IMA Professor in-Residence) Finalists make their presentations at IMArsquos Annual Conference amp Exposition before a set of judges consisting of accounting faculty members and practitioners Each year a new case is published in the August issue of Strategic Finance for students to use for that yearrsquos competition
Working TogetherIn this article we have summarised the changes that have affected the accounting profession and provided a competencies-based framework for guiding accounting educators in responding productively to those changes As a management accountant you know that implementing change in any organisation let alone within an entire profession never comes easily To be successful in overcoming our professionrsquos competency crisis IMArsquos practice and academic partners will need to assume leadership roles in defining enterprise performance management as the cornerstone of the accounting professionrsquos value proposition
This article was orginally published in the August 2014 issue of Strategic Finance It appears here with the permission of The Association of Accountants and financial professionals in Business
We need to educate ourselvesand future generations of account-ants so that as a collec-tive group we can deliver theexpanding set of com-petenciesdemanded in todayrsquos dynamicorgani-sational contexts
THE POWERFUL AND THRIFTY OFFICE ALL-ROUNDERS
The new ECOSYS M3560idn series will astound you With their print speeds of up to 60 pages per minute they are among the most productive A4 bw multifunctionals on the market We nevertheless managed to keep their ecological footprint and total cost of ownership impressively low by using our well-known ECOSYS technology and equipping the devices with our renowned long-life components The result Not only less waste and lower maintenance costs but also less hassle for you and all your colleagues You will also greatly appreciate the many customisation possibilities of the devices equipped with KYOCERArsquos open solution platform HyPAStrade as it allows you to tailor the device to your needs So yes we are proud of our new range of MFPs and can hardly wait to share their numerous benefits with you
For more information please contactKYOCERA Document Solutions Middle East | PB Box 500817 DubaiUAE | Tel +9714 4330 412 | Fax +9714 4231 944KYOCERA Document Solutions Europe BV - wwwkyoceradocumentsolutionseuKYOCERA Document Solutions Inc - wwwkyoceradocumentsolutionscom
52
ACCAINTERVIEW
wwwthecfomecom
GLOBAL By ASSOCIATION
across the region from our key employers and learning provider partners to our active and growing student and member base I want to understand their challenges and priorities and how ACCA can work with them to help support the economic success of the region
What can a CFO gain from working with ACCAThe ACCA qualification is about complete finance professionals For CFOs it brings the technical knowledge vital to business success complemented with the strategic management skills and ethical competence crucial to an organisationrsquos success As an organization ACCA in the UAE brings CFOs access to that local and global network of peers and expertise along with our leading research and insights that help them to keep up to date on the issues that matter most
Are there any initiatives in place to leverage the recently announced partnership with AAA
How are the ACCArsquos many years of activity being applied to the Middle EastACCA has now had a presence in the UAE for well over a decade During that time we have established strong relationships across the Middle East epitomised by the recent signing of our Strategic Partnership with AAA As a national body in choosing to partner with ACCA they recognised the local and global perspective we bring We are continuing to work with students members and employers across the Middle East to build their networks knowledge and business success through events research and insights and access to a growing number of online resources
Which initial priorities are among your key aims upon joining the organisationrsquos efforts in the UAEIn the first few months I hope to build on the success of the team in the UAE My priority will be to meet as many of our key stakeholders
The Association for Chartered Certified Accountants (ACCA) provides its services across a number of international borders The recent announcement of Lindsay Degouve de Nuncques as the new head of the Associationrsquos UAE chapter further exemplifies the ACCArsquos reach based on her previous work in the UK Nuncques shares here what she brings to the Middle East and just how globalisation has driven her ascent
53
ACCAINTERVIEW
wwwthecfomecom
The strategic partnership with AAA is the first of its kind in the region Students who complete the UAECA qualification will be entitled to both the AAA and ACCA designations and ACCA members in the UAE will also be eligible to apply for AAA membership This is a very exciting development in the market and together AAA and ACCA will be working to deliver maximum value to all our stakeholders from this partnership As we launch the UAECA qualification this activity will start in earnest
Which key industries will you be spotlighting in the Middle East in the months aheadOur experience of working across all sectors and levels of organisations globally gives ACCA a unique insight into all types of industries We will continue to be working with employers across the spectrum in the months ahead to help them gain the insight and make the connections that drive businesses to succeed at whatever they do
ldquoThe ACCA qualification is about complete finance professionals For CFOs it brings the technical knowledge vital to business success complemented with the strategic management skillsrdquo
54
Islamic FinanceMARKET OUTLOOK
wwwthecfomecom
In its 10th instalment the Forum is hosted in Dubai as a direct result of the UAErsquos increasing importance in the world of global Islamic finance
THE WORLD ISLAmIC ECONOmIC FORUm LANDS IN DUBAI
In Dubairsquos continued quest for leading the world across a range of spectrums the Emirate accelerated its desire to become the worldrsquos leading hub for Islamic finance by hosting the 10th installment of the World Islamic Economic Forum (WIEF) Delegates from dozens of countries attended to take part in a three-day event held at Madinat Jumeirah which rests alongside Dubairsquos gleaming coastline Held under the patronage of His Highness Sheikh Mohammed Bin Rashid Al Maktoum the
Vice President and Prime Minister of the UAE and Ruler of Dubai key speakers included The Honorary Dr Zeti Akhtar Aziz Governor of the Central Bank of Malaysia HE Kairat Kelimbetov Governor of the National Bank of Kazakhstan The Honorary Datorsquo Sri Mohd Najib Tun Abdul Razal Prime Minister of Malaysia and HE Xavier Bettel Prime Minister of the Grand Duchy of Luxembourg
Launched in 2006 in Malaysia WIEF has grown in tandem with the increased
Delegates from dozens of countries attended WIEF to take part in the three-day event
sophistication and reach of Islamic finance After a successful event in London in 2013 amidst increased interest in Islamic finance across Europe WIEF relocated to Dubai where the local business structure is keen to host halal finance
Said Hamad Buamim President and CEO Dubai Chamber of Commerce and Industry co-organisers of the event ldquo[The forum] is the start of a new chapter of cooperation between Dubai and the world as part of
55
Islamic FinanceMARKET OUTLOOK
wwwthecfomecom
Dubai Capital of Islamic Economy visionhellipestablishing a unified regulatory authority to provide the framework for standards across halal industries will significantly accelerate growth Likewise we need to see increased cooperation and partnership between the public and private sectors This is already happening with great success here in Dubairdquo
The order of global cooperation needed to facilitate growth across the Islamic finance world was more than apparent at WIEF based on how many differing nations were represented at the event The exhibitorrsquos hall was populated with a number of key Malaysian stands representative of the Southeast Asianrsquos ranking as the global leader in Islamic finance Also present were companies from Saudi Arabia also a key locality in the worldrsquos halal industries An interesting yet prescient presence was of attendees from South Korea a nation which is eager to participate in Islamic finance and will be hosting the WIEF Pyeongchang Roundtable in December 2014
ldquoGangwon is a province located in Korea which is very interested in new business opportunities Wersquove realised the strength of the Islamic economy and have come here with many different companies The first type is based in real estate investment We also have companies which want to export their products to the Islamic economy based on their halal qualities And Gangwon will also be hosting the Winter
ldquoKorea is very interested in the strength of the Islamic economy and wants to export its products based on their halal qualitiesrdquo
56 wwwthecfomecom
$247trillionProjected value of halal products industry in lsquo18
125Muslim percentage of global tourism expenditure
STAT FACTSOlympics in 2018 and are presently seeking investments for this as wellrdquo said Seong-hun Kim a member of Gangwon Province Governmentrsquos Export Support Team
Dubai proved to be an excellent place for the event considering how well the UAE is able to so regularly corral international cooperation A key sign of this was witnessed recently when Luxembourg now considered the third most important base for Islamic finance globally opened a finance office in Dubai International Finance Centre The European nation also opened a euro200 sukuk earlier this year which was quickly oversubscribed
The prime minister of Luxembourg offered the WIEF audience a riveting speech which detailed just how international the Forum has become whilst encouraging more of the world to support the growing influence of Islamic finance
Said Bettel ldquoWe need to innovate more economic partnerships for growth We sometimes need to reengineer relationships but also have to make sure these relationships remain sustainable Growth in one country also brings growth to others as long as this is guided by free market initiatives Free trade and free flow of capital combined with innovation leads to prosperity We have all gathered here in Dubai to explore the future of Islamic finance and Luxembourg is also a pioneer of Islamic finance in Europe The Islamic financial sector has a major role to play in continued global growthrdquo
The Islamic Corporation for the Development of the Private Sector (ICD) is based in the Kingdom of Saudi Arabia where it manages an international fund worth $2 billion half of which is available for subscription With shareholders in more than 50 countries and a sovereign sukuk fund recently launched in West Africa the ICDrsquos CEO Khaled M Al Aboodi attended WIEF this year excited to participate in the global event
How does the ICD approach its attendance at the World Islamic Economic ForumI think the Forum is one of the best places for discussing the financial issues of the OEC member countries It has been around for ten years and has grown to become a very important platform for discussion Wersquore here to attend and listen but also to network Itrsquos a great networking platform and a place to share views whilst letting everyone know what we have to offer
How has Islamic finance changed over the yearsOf course itrsquos growing in a large scale Some of it actually needs more support particularly with respect to regulatory frameworks Wersquore trying to partner with many international organisations like the IMF to try to provide support to countries to adapt regulation for Islamic finance Sukuk issuance is one of the biggest issues that needs to be addressed because there is a huge amount of liquidity in this arena Due to issues related to regulation sukuk issuance can be costly But with the regulation we are confident it will be on a level playing field with other forms of finance Compliance is a major area where more work can be done The Forum started with a roundtable on sukuk which shows how helpful WIEF has been over the years
What type of work does ICD do internationallyICD helped the government of Senegal to issue the first sovereign sukuk This was successfully issued last summer Progressing in this manner is something wersquod like to see continue across West Africa in order to utilise its resources with aiding development in the region in mind
QampA WITH KHALED M AL ABOODI CEO OF ICD
Islamic FinanceMARKET OUTLOOK
OFFICIAL SPONSORS
ENDORSED BY OFFICIAL HOST OFFICIAL
COMMUNICATIONS PARTNER
MEYDAN HOTEL DUBAI UAE19 - 20 NOVEMBER 2014
WOMENOMICSthe next emerging market
TAKE PART in making change happen UNITE with business and through leaders from across the globe
PARTICIPATE to the expansion of a modern and inclusive economy
58
Gautam PradhanINTERVIEW
wwwthecfomecom
SUCCESS BEyOND BOUNDARIES
in other management roles such as strategic decision making mentoring and leading efficiency and productivity across a range of other departments and functions as well as a being a catalyst in ensuring that the boardrsquos vision for the organisation is achieved
A significant percentage of NMDCrsquos shares are owned publicly Does the CFO play a role in balancing the interests of the shareholdersAs a CFO balancing the shareholdersrsquo interests is definitely part of my responsibility In order to achieve this goal there needs to be a careful evaluation of each decision while keeping the short-term and long-term goals of the company in mind At NMDC we actively implement a system where we utilise a balance scorecard as a method of ensuring that all our primary objectives are met yet at the same time continuously enhance our relationships with our shareholders
NMDC has completed various projects across the Emirates Are there plans to move abroadAs NMDC moves towards becoming an international player our strategic expansion plans are focused in areas within the GCC region and India In line with this strategy we opened
How has a company with such a unique set of deliverables grown so consistently over the yearsOur organisation strongly believes that the core to our strength is the people process and equipment A strategic decision led by our Board of Directors and the senior management has been implemented that required us to consistently invest in these three aspects to help expand our business beyond the territorial boundaries of the UAE and at the same time enhance what we can offer which is relevant to these segments We attribute our success to the efforts which every employee contributes We also strongly believe in the ldquoWe can make it happenrdquo principle The management raises the index of performance while setting SMART objectives within the organisation and encouraging the employees to achieve them
How has your position as the CFO changed over NMDCrsquos 35 years of operationAs the market evolves and business dynamics change my role as the CFO has become complex and more challenging A few years back I was mainly focused on bookkeeping accounting and other financial responsibilities such as arranging bank facilities But moving forward I became more involved
The UAE is progressively becoming a hub for world-class infrastructure The country has duly impressed the rest of the globe with noteworthy land developments showcased across the emirates Among the remarkable landscapes found in Abu Dhabi are the Corniche Beach Yas Island and Sir Baniyas Island Behind these successful projects is NMDC the dredging division of Abu Dhabi National Oil Company (ADNOC)
In an interview with CFO Magazine Gautam Pradhan Chief Financial Officer NMDC shares an exclusive look into the companyrsquos international blueprint for growth and his dynamic role as a strategic leader of one of the best in dredging and marine construction in the Middle East
59
Gautam PradhanINTERVIEW
wwwthecfomecom
branches in Qatar Bahrain Oman and India This has paid rich dividends recently as projects of strategic importance are bagged in Qatar and Bahrain Furthermore NMDC (UAE) has recently played a key role as a leader of an international consortium with Royal Boskalis Westminister (Netherlands) and Jan De Nul Group (Belgium) for the awarding of the Suez Canal Dredging project in Egypt Moving forward we have devised a strategic approach that will enable us to play a key role in the development of Indiarsquos marine infrastructure
What are the global strategies that are part of the CFOrsquos responsibilitiesAs CFO understanding the macro economic scenario risk analysis and mitigating those risks are all a part of my responsibilities I also have to have a proper comprehension
ldquoA few years back I was mainly focused on financial responsibilities moving forward I became more involved in strategic decision making mentoring and leading productivityrdquo
Gautam PradhanINTERVIEW
60 wwwthecfomecom
of the challenges faced by the company in terms of dealing with foreign contracts direct and indirect taxes and hedging and managing the integration process These are essential to enhance shareholders wealth and mitigate undue risk
How significant is accountancy for NMDC in its operations Why exactlyAccountancy is the lifeline of any company it does not only record the finances it also reflects the health of the organisation The MIS reports analysis trends and statistical information go a long way toward effectively providing
the diagnostic approach essential for the company
How have NMDCrsquos environmental activities helped the companyrsquos bottom lineNMDCrsquos work is well-synchronised with our environmental activities and specifically with nature Our activities are closely linked to sand and water and we view such activities with strategic importance Projects such as increasing water supply to mangroves and beach nourishment help us support the environmental activities while adding to our bottom line
ldquoAccountancy is the lifeline of any company it does not only record the finances it also reflects the health of the organisationrdquo
A burgeoning slice of Abu Dhabi coastline
The largest business awards
in the GCC30th November Dubai
nominate now at wwwstarsofbusinessawardscom
Stars of Business has become an iconic awards brand like no other in the region It recognizes the very best SMEs across 26 business categories Itrsquos universally respected as scientifically assessed and unimpeachably judged
327000 SMEs across the UAE$234 billion estimated total revenue of the SME sector4974 Awards entries in 20131856 Individual company applicants
Presenting Partner Strategic SME Partner Gold Sponsor Gold Sponsor VIP Hospitality Partner Supporting Partner
Trade Facilitator PartnerTrade Credit PartnerLogistics Partner
Institutional Partner Institutional Partner Event Partner
OrganiserPublisherMedia Partner Media PartnerPort Authority Partner
62
David Allen INTERVIEW
wwwthecfomecom
What went into completing your bestseller ndash Getting Things Done (GTD)After twenty years of researching developing and implementing a methodology for achieving stress-free productivity based upon
thousands of hours spent desk-side with
some of the best brightest and busiest people in the world I decided to write the manual for it Thatrsquos what Getting Things Done is
What are the five phases of mastering workflowIn order to get
any situation under control so
you can focus you will utilise these five
steps Whether yoursquore managing your kitchen
or your company you will need to collect and capture what has your attention clarify what if anything to do about it organise it according to what it means to you review and reflect upon it in relation to
Todayrsquos evolving CFO is often caught between the world of business set-up generating revenue managing employees and building strong company infrastructure When can things actually get done What can one do to boost productivity and master workflow World-renowned business coach David Allen has the answers
PRODUCTIvITy PRINCIPLES WITH
DAvID ALLEN
63
David Allen INTERVIEW
wwwthecfomecom
those are greatly subvertedHow does one maintain a fair balance between the time spent planning and actually getting things doneYou simply need to spend just the amount of time you need to to trust that what you are getting done is the right thing to be getting done in the moment It takes as long as it takes to get to that point Why would you do anything less
How can one apply your core productivity and workflow principles to todayrsquos technologically driven environmentThe principles and their techniques are system-independent Whether you have meaningful input from the Internet your smartphone or a conversation in the hall you must engage with it equally Technology has simply increased the flow of input and ease of distraction in your world
There is a lot of talk about how connected wersquove become and how connectivity is driving tremendous business growth Does connectivity actually come with its fair share of downsides
Connectivity is obviously a two-edged sword We can have intimate productive and creative interaction instantly with someone on the other side of the world and we can just as easily be distracted and seduced into those engagements when they may not be the best use of our attention and resources Donrsquot shoot the medium Itrsquos all simply bringing attention to your clarity of direction and priorities or lack thereof
Could you share a few quick tips with our readers to instantly boost productivityWrite everything down that has your attention Decide the very next actions required to get closure on all of them Any next actions that require less than two minutes do instantly Park reminders of everything else somewhere that yoursquoll see when you can do something about them
We are currently facing a massive information overload What are some basic principles you could suggest to mentally organise such large amounts of dataConstantly ask yourself Where am I going Whatrsquos important and rewarding to me Is this information
the whole and then engage your resources with intuitive trust
As a CFO how can you transfer efficient workflow management skills to your employees Itrsquos very difficult to legislate processes for individuals ndash you can really only hold them accountable for their results But if you are managing your own commitments and intersections with them with integrity and rigour it will automatically force your team to ldquostep up to the platerdquo in their own behaviours in order to meet your standards If you request their complete list of their company projects and they canrsquot produce it thatrsquos a sign theyrsquore not in control If they make a commitment to you that they havenrsquot kept thatrsquos data about their performance GTD is simply about good operational business practices
With so many planning and organising activities in your methodology is there a risk of losing spontaneity as a strategistThe reason for these best practices is to optimise freedom creativity and spontaneity Without them
ldquoBut if you are manag-ing your own com-mitments and intersec-tions with them with integrity and rigour it will automatical-ly force them to ldquostep up to the platerdquo in their own behaviours in order to meet your standardsrdquo
64 wwwthecfomecom
supporting that Park whatever you find potentially meaningful somewhere that is easy to access when needed
Being an entrepreneur is a non-stop job How do you ensure that you have an adequate work-life balance Pay attention to what has your attentionmdashwith regard to anything Your health relationships career finances etc Notice when something might be ldquooffrdquo and make good decisions about what you need to do to get it back ldquoonrdquo again
Does your work teach people to be efficient or effective In essence they are the same thing Effective choices are generated by efficiency on a higher level If you want to implement strategy most effectively it demands utilising your resources optimally which is efficiency
Does motivation actually improve quality of work or purely quantityDepends on the focus of the motivation You can be motivated to work harder and you can be motivated to work smarter
What is your favourite productivity mantra that
you implement in your day-to-day lifeUsing my own in-basket and note-taking devices to capture potentially meaningful and valuable ideas and soon afterwards clearing all of them out by deciding what to do about them if anything
Your books seminars and other work inspires many individuals and businesses Who is your personal inspiration or role model I have many about many different aspects of my life The only person though that I ultimately trust as my best guide is my higher self which I try to access as frequently and clearly as I can
Finally what advice would you give to current business owners and aspiring entrepreneurs looking to gain complete control of their life and businessCapture what has your attention clarify what you need to do about it to get it off your mind organise the inventory of all your commitments at all levels review and reflect on all of that regularly relax and trust your inner wisdom to engage with the most appropriate thing in the moment
ldquoIf you want to implement strategy most effectively it demands utilising your resources optimallyrdquo
David Allen INTERVIEW
APPSTECH TALK
wwwthecfomecom 65
mAxImISE BUSINESS lsquoON-THE-GOrsquo WITH THESE HANDy APPS
ipAd SpECIAL
SAMSUNG UNvEILS GALAxY NOTE EDGE
Network
AP
Display
OS
Camera
Video
Audio
Additional Features
GoogleMobile Services
Connectivity
Sensor
Memory
Dimension
Battery
The availability of service may differ by country All functionality features specifications and other product information provided in this document including but not limited to the benefits design pricing components performance availability and capabilities of the product are subject to change without notice or obligation
Samsung Galaxy Note Edge Product Specifications
25G (GSM GPRS EDGE) 850 900 1800 1900 MHz3G (HSPA + 42Mbps) 850 900 1900 2100 MHz4G (LTE Cat 4 15050Mbps) or 4G(LTE Cat 6 30050Mbps)May differ by country and carrier
27 GHz Quad-Core Processor
56 inch (1419mm) Quad HD+ Super AMOLED (2560 x 1440 + 160)
Android 44 (KitKat)
Rear Facing 16 Mega pixel Auto Focus camera with Smart OISFront Facing 37 Mega pixel camera with f19Rear Facing Camera HDR (Rich tone) Selective Focus Rear-cam Selfie Beauty face Virtual Tour Shot ShotampMore Dual CameraFront Facing Camera Selfie Wide Selfie
Codec H264 MPEG-4 H263 VC-1 WMV7 WMV8 Sorenson Spark MP43 VP8 Recording amp Playback up to UHD
Codec MP3 AACAAC+eAAC+ WMA AMR-NBWB Vorbis FLAC()() Ultra High Quality Audio (~192KHz 24 bit) support
Multi WindowUltra Power Saving ModeVoice Recorder (Normal Mode Interview Mode Meeting Mode Voice Memo)Download BoosterS Health 35Dynamic Lock ScreenBriefingEdge screen UX Revolving Interaction Immersive apps(Camera Video S Note)Ticker board Express me Quick Tools Night Clock etc
Chrome Drive Photos Gmail Google Google+ Google Settings Hangouts Maps Play Books Play Games Play Newsstand Play Movie amp TV Play Music Play Store Voice Search YouTube
WiFi 80211 abgnac (HT80) MIMO PCIeGPS GLONASS BeidouNFC Bluetoothreg v 41 (BLE ANT+)IR LED (Remote Control) USB20 MHL 30
Gesture Accelerometer Geo-magnetic Gyroscope RGB IR-LEDProximity Barometer Hall Sensor Finger Scanner UV Heart Rate Monitoring SpO2 (Dependent on market)
32 64 GB Internal memory + microSD slot (up to 128GB)3GB RAM
1513 x 824 x 83mm 174g
Standard battery Li-ion 3000 mAh Fast Charging (Adaptive Fast Charging amp QC20)
wwwthecfomecom66
APPSTECH TALK
AIR DISPLAY
SQUARE REGISTER
Using this app you can connect your iPad to your computer and use it as an additional screen While working on an important presentation or sales proposal you can extend or mirror your computer screen on your iPad This app is compatible with both Mac and Windows computers Note that to use this feature you have to install Air Display on your iPad and a separate free app on your computer The computer and iPad also need to be on the same Wi-Fi network in order to work in-sync
For Mac users the app allows you to connect to up to four screens ndash all at the same time
Apart from the ability to convert your iPad into a wireless display whatrsquos also attractive about this app is that it allows you to control your computer wirelessly using your iPad
This fantastic application can serve as a mobile point of sale for your business It allows you to accept credit card payments ndash including Visa MasterCard Discover and American Express A transaction fee of 275 is charged for every time you swipe a card The sale amount is transferred to your account within two working days
Once you download the app you can sign up and register for a unique card reader solution called the lsquoSquare Readerrsquo (this is free) Square Reader encrypts all card details and ensures that the transaction is secure Once you receive your Square Reader you can connect it to your device and are all set
The application also offers added features such as transaction history connecting to a receipt printer creating employee logins and more
AED 3699
PRICE
Free
PRICE
wwwthecfomecom 67
APPSTECH TALK
DOCUSIGNHave you ever been in a situation where your employees need you to urgently sign a contract but arenrsquot able to physically reach you in time DocuSign solves this problem with its easy-to-use eSignature feature In three easy steps you can sign important documents and securely send them to your intended recipient
First you have to import the document to your device ndash this could be from Dropbox Google Drive or another select applications You then place your signature or any other important legal information you need to include such as initials Once you have finished working on the document send it back via e-mail
Whatrsquos particularly great about DocuSign is the great emphasis it puts on security ndash so that users donrsquot have to worry about getting into any legal trouble
Use DocuSign and never miss a deadline again
Free for basic version
PRICE
MPAYAn initiative by the Dubai eGovernment Department mPay is a simple application that allows you to make important payments Once yoursquove signed up and entered your payment details you are good to go You can pay your Dubai Electricity and Water Authority (DEWA) bills Etisalat utility bills Dubai Police fines Recharge SALIK and much more
A handy feature is its lsquoauto-rechargersquo option which you can use to set automatic payments
Free
PRICE
Opinion CIMAPERSONALITIES
wwwthecfomecom68
NEW HORIZONSBy geetu Ahuja Head of gCC at CIMA
The days of the traditional accountant working within a small community in a small town in a small market have long gone CFOs are now being referred to as Chief Frontier Officers as they travel from market to market overseeing their offices overseas This new expanded role has distinct advantages for both the company and the CFO who gain new skills and new insights from foreign branches a single hand at the helm of many markets provides business perspectives on a global scale and benchmarks across the board
On a personal level working abroad also has huge importance Robert Walters the specialist professional recruitment consultancy recently conducted a survey
of almost 2200 employees across a variety of professions exploring a number of topics which ranged from working practices and attitudes to careers The results highlighted some notable trends particularly for finance professionals
In career progression for example the survey showed that 50 of all accountants see working abroad as either lsquoessentialrsquo or lsquoextremely usefulrsquo to furthering their prospects more than banking professionals lawyers and IT workers ndash a strong indication of how accounting professionals are thinking about their future either within their existing company or with opportunities elsewhere
Accountants with globally recognised qualifications obviously have a greater chance of gaining some experience abroad and the lsquoGen Yrsquo professionals in particular seem ready to pack their bags In a CIMA study conducted in the UK last year over a third of those seeking employment in the
next two years will prioritise opportunities abroad over those in their home countries many of them enticed by the career incentives offered by the Middle East
How quickly can they land what seems to be their dream job What are the realities It may be that the move is simply from one branch to another and the only significant difference is a view from the window but for those expanding rather than changing their roles we have seen a very real need for a depth and breadth of knowledge never needed before
As geographical boundaries are pushed ever-wider a CFOrsquos responsibilities are pushed with them For many finance executives the understanding of their own patch of land is no longer enough they now have to be aware of foreign markets up to speed with foreign trends and au fait with foreign laws There is a need for a new commercial awareness in geography as well as philosophy
As geographical boundaries are pushed ever-wider a CFOrsquos responsibilities are pushed with them
John vargheseQampA
wwwthecfomecom 69
BUSINESSSET UP YOUR
IN THE UNITED ARAB EMIRATES
TO
WAREHOUSESOFFICES INDUSTRIAL LANDFLEXI
Quick and easy company set-up
Less than an hour drive from Dubai
Complete cost-effective packages including licences and facilities
100 foreign ownership
Zero income and corporate taxes
Eligibility for UAE Residence Visa
BUSINESS SET-UP SOLUTIONS STARTING FROM AED 15000 (USD 4000)
RAK FREE TRADE ZONE PROVIDES
RAK Free Trade Zone Authority - Government of Ras Al KhaimahUAE (Ras Al Khaimah) Tel +971 7 2041111 (Dubai) Tel +971 4 7041875 (Abu Dhabi) Tel +971 2 6994888
Germany (Cologne) - Turkey (Istanbul) - India (Mumbai)
Call +971 7 204 1111 Visit wwwrakftzcom Join rakftz
To facilitate and support our expansion drive for the coming years and to serve our
esteemed clients better we have moved to a fully-owned state-of-the-art office facility
We stay committed to our vision to provide the best and most professional Accounting
Audit Business amp Management Consulting services to all our valued clients
OUR NEW ADDRESS
Level 15 Lake Central - At The Bay Business Bay Al Abraj Street PO Box 55535 Dubai UAE
Tel +971 4 276 2233 Fax +971 4 422 1680 dubaimorisonmenoncom
BUILDING BE T TER BUSINESSES - GLOBALLY
wwwmorisonmenoncom - wwwconsultuaecom
We have moved to our newMiddle East Head Quarters in Business Bay
Offices in UAE (Dubai DAFZ Abu Dhabi JAFZ RAK FZ RAKIA Sharjah) Oman Qatar India
1994 - 2014
CONTENTS
Infographic UAECA CFO Roundtable India8 10 12 14CFOs around the world
A new accountancy certification reaches the Emirates
Citi Commercial Bank hosts a discussion in Dubai
A closer look at the investment prowess of the subcontinent
18 22
26
DUBAI SILICON OASIS
Procurement
Saed AlSharid
The UAErsquos premiere tech freezone as overseen by its top finance executive
AT Kearney delivers a report aimed at CFOs
ldquoTrying to do business while not understanding accounting is like getting into the ocean and not knowing how to swim you will drownrdquo
ldquoPeople talk about strategybut getting the numbers right must always be the number one thingrdquo
CONTENTS
46
52
54
66
58 62 68
CompetencyCrisis
lindsay Degouve de Nuncques
WIEF
TechTalk
NMDC David Allen opinion
The Institute of Management Accountantsaddresses a looming gap
A new face heads up the ACCArsquos UAE chapter
The World Islamic Economic Forum sets up in Dubai for its 10th anniversary
The best iPad apps for the
global finance professional
Shaping the worldrsquos coastlines as seen by the CFO
The business coach and best selling author offers more of his recipe in a QampA
Geetu Ahuja of CIMA on the essentials of globalisation
Emerging markets CIMA ERP Private Equity30 34 38 42A how to for investment in the worldrsquos most promising localities
The Institute revamps its reknowned syllabus
IT business solutions are evolving in line with the role of Chief Financial Officer
Buyout firms demand more stringent financial data
ldquoOur qualification is about complete finance professionalsrdquo
38
4234
98
CFO InfographicPROJECTIONS
wwwthecfomecomwwwthecfomecom
CFO InfographicPROJECTIONS
Optimism
Risks and opportunities
Growth and expansion
CFOGLOBALISATIONINFOGRAPHIC
SOURCES Michael Page International Global CFO Barometer 2012 by Michael Page International Deloitte CFO Signals ndash Q1 2014 Deloitte CFO Signals Q4 2013 Robert Half CFO Insights
4738
44
36
55
72
39
26
42
20
95
71
35
68
CFOs express rising
optimismof CFOs are
optimistic about financial prospects
of CFOs believe its a good time to take greater risks
of CFOs believe financial risk management policies are not significantly aligned to cover market risks
see new product or service launches as a
key growth opportunity
40are hopeful about organisational growth opportunities
of CFOs are now more optimistic than in the last quarter
of CFOs are now more involved in risk management
of CFOs will pursue organic expansion
consider pricing pressures as the top growth inhibitors
are positive about the future state of the Indian economy
of CFOs are more optimistic than
last quarter
of CFOs willing to take greater risks
believe international expansion will play a
major role in in business development
expect MampA activity to rise over
the next year
rate this economy as good or very good
expect a major merger or acquisition
NORTH AMERICA
INDIA
MIDDLEEAST
SOUTHEASTASIA
UK
PACIFIC
WOMEN AS CFOS ( OF FEMALE CFOS IN OF RESPONDENTS)
( of respondents surveyed)
of CFOs spend significant amounts of time as strategists for company growth
76
AFRICA
AUSTRALIA
5 18
Lowest Highest
of CFOs with total annual compensation including bonus and benefits of over US$255000
of CFOs younger than 35 years old when they attained their position
Europe
Europe
13
Asia
14
SouthAmerica
29
Pacific
30North
America
49
49
NorthAmerica
21
SouthAmerica
Asia
43
31
Pacific
30
In North America 39 of CFOs are older than 50 years
On average CFOs worldwide attain
their position between the ages
of 30 and 39
of CFOs are confident about credit availability in the future
4831
73of CFOs feel that the finance function will play a larger role in their companyrsquos development and execution of business strategy
51of CFOs are satisfied with the performance of their finance function
56
98
CFO InfographicPROJECTIONS
wwwthecfomecomwwwthecfomecom
CFO InfographicPROJECTIONS
Optimism
Risks and opportunities
Growth and expansion
CFOGLOBALISATIONINFOGRAPHIC
SOURCES Michael Page International Global CFO Barometer 2012 by Michael Page International Deloitte CFO Signals ndash Q1 2014 Deloitte CFO Signals Q4 2013 Robert Half CFO Insights
4738
44
36
55
72
39
26
42
20
95
71
35
68
CFOs express rising
optimismof CFOs are
optimistic about financial prospects
of CFOs believe its a good time to take greater risks
of CFOs believe financial risk management policies are not significantly aligned to cover market risks
see new product or service launches as a
key growth opportunity
40are hopeful about organisational growth opportunities
of CFOs are now more optimistic than in the last quarter
of CFOs are now more involved in risk management
of CFOs will pursue organic expansion
consider pricing pressures as the top growth inhibitors
are positive about the future state of the Indian economy
of CFOs are more optimistic than
last quarter
of CFOs willing to take greater risks
believe international expansion will play a
major role in in business development
expect MampA activity to rise over
the next year
rate this economy as good or very good
expect a major merger or acquisition
NORTH AMERICA
INDIA
MIDDLEEAST
SOUTHEASTASIA
UK
PACIFIC
WOMEN AS CFOS ( OF FEMALE CFOS IN OF RESPONDENTS)
( of respondents surveyed)
of CFOs spend significant amounts of time as strategists for company growth
76
AFRICA
AUSTRALIA
5 18
Lowest Highest
of CFOs with total annual compensation including bonus and benefits of over US$255000
of CFOs younger than 35 years old when they attained their position
Europe
Europe
13
Asia
14
SouthAmerica
29
Pacific
30North
America
49
49
NorthAmerica
21
SouthAmerica
Asia
43
31
Pacific
30
In North America 39 of CFOs are older than 50 years
On average CFOs worldwide attain
their position between the ages
of 30 and 39
of CFOs are confident about credit availability in the future
4831
73of CFOs feel that the finance function will play a larger role in their companyrsquos development and execution of business strategy
51of CFOs are satisfied with the performance of their finance function
56
10
UAECA LaunchMARKET OUTLOOK
wwwthecfomecom
AAA launches an accountancy Certification for the UAE in collaboration with ACCA
CERTIFICATIONTAKING REGIONAL OWNERSHIP
The United Arab Emirates Chartered Accountants (UAECA) Qualification launched at Dubairsquos Armani Hotel 3 November by the UAE Accountants and Auditors Association (AAA) in association with the global accountancy body ACCA (Association of Chartered Certified Accountants) The announcement coincided with UAE National Flag Day and advanced ever expanding Emiratisation aims across the country With the support of the ACCA the skills gained will not only lead local UAE accountants to excel across the Emirates but also to encourage further growth internationally
A number of notable local leaders spoke at the event and
expressed their delight and favorable expectations for the UAECA His Excellency Sultan Bin Saeed Al Mansouri the UAE Minister of Economy Saif Abed Al Muhairi Chairman of the Board AAA Abdullah Amiri Financial Manager AAA and Ahmad Darwish Secretary General AAA and Chair of ACCArsquos members advisory committee in the UAE each offered speeches to the crowd of assembled finance professionals
ldquoWe are confident that UAECA will be the ambition of young Emiratis who would like to be the future leaders in the finance fieldrdquo said Al Muhairi
The UAECA qualification is the national qualification of the UAE and is based on
the globally recognised ACCA qualification This criterion will provide a dual-branded internationally recognised IFAC compliant route to membership of both AAA and ACCA
Said Stuart Dunlop regional director MENASA ndash ACCA ldquoThis unique partnership between ACCA and AAA will give students access to a national qualification making their skills and knowledge globally and locally relevant Once qualified as an ACCA member they will also be eligible to apply for membership to AAA meaning they can use the titles ACCA and UAECA after their names And because this partnership supports
ldquoWe are confident that UAECA will be the ambition of young Emi-ratis who would like to be the future leaders in the finance fieldrdquo
11
UAECA LaunchMARKET OUTLOOK
wwwthecfomecom
Saif Bin Abed Al Muhairi Chairman AAA
Ahmad Darwish Secretary General AAA
the governmentrsquos initiative to develop the accountancy and finance profession they will benefit from enhanced career opportunities as more employers and stakeholders choose to work with us in the futurerdquo
Emiratis in the accountancy field joined the procession eager to take part furthermore in what the AAA has planned unequivocally encouraged by the Associationrsquos hand in the UAECArsquoS launch The new qualification has stoked promise for bolstering Emirati involvement in local accountancy as well as international ventures which lie beyond the countryrsquos borders
ldquoAs an ACCA member Irsquom really proud the ACCA route
The new qualification has a good deal of promise for bolstering Emirati involvement in local accountancy as well as international ventures which lie beyond the countryrsquos borders
to membership has formed the basis of the new national qualification of the UAE It gives aspiring Emiratis recognition on a local and global stage and is a unique opportunity that will develop our careers and the profession in the UAErdquo said Ayesha Al Zaabi Senior Accountant of Group Finance Aerospace amp Engineering Services Mubadala
The future of accountancy appears brighter than ever in the UAE with the unveiling of an internationally supported qualification specific to the country The potential increase of Emirati participation spells great promise for the finance industry as it grows from within
12
at CPI Media Group the discussion offered a candid conversation of lively opinions bringing together key individuals from prestigious and influential businesses based in the UAE
The spirited discussion delved into how varied and increasingly imperative the Chief Financial Officerrsquos role has become
Vincent Valladares Managing Director Middle East Head Citi Commercial Bank led the vibrant discussion with the support of Anand Nagaraj Vice President Head Product Development Citi Commercial Bank whilst Grant Thornton Partners Jay Raney and Amgad Nassif offered their views as well
CFO RoundtableMARKET OUTLOOK
wwwthecfomecom
One of the trends in world business currently attracting considerable comment and debate is the changing role of the CFO No longer simply the custodian of the businessrsquo finance or the head of accounts the CFO is increasingly seen as a master strategist and the key architect of corporate decision-making As such a roundtable event held by Citi - in collaboration with Grant Thornton - was both a timely and revealing landmark on shifting attitudes and aspiration
IN CHANGING TImESCITI COMMERCIAL BANK CORRALS A pOwERfuL MEETINg Of MINdS
The management guru Tom Peters recently commented that ldquoIn these perverse and perhaps illusory times is it any wonder that the CFO is seen as the one reliable point of reference - the one person from the C-suite cut out for more responsibility and bigger things in the businessrdquo
Citi Commercial Bank and Grant Thornton echoed the importance of this shifting role by gathering a collection of leading CFOs and finance executives at Dubairsquos Grosvenor House - hosting a keynote round table called lsquoThe Changing Role of the CFOrsquo In a world where CFOs are increasingly wearing a number of new hats within their respective enterprises the event asked pertinent questions such as -
ldquoThe CFOs duties have changed as strategy and other focuses are becoming increasingly importantrdquo
bull Whether the CFO is increasingly the businessrsquo key strategist bull Whether or not the role is more and more impacted by changing legislation and regulationbull Is the CFO now effectively the CEO-in-waitingbull What is the role of management education in this new mix
So while much has been written lately about how essential it is that the CFOrsquos function evolve and change the dayrsquos discussion took an overtly practical view and gathered the opinions of the individuals at its core
Hosted by Paul Godfrey Group Editorial Director
13
recession environment has created an atmosphere rife with new regulations which CFOs are expected to master as these international enterprises venture into new markets and encounter sensitive and risk management-oriented frameworks
Citirsquos Vincent Valladares observed ldquoRegulatory issues are becoming bigger for banks as well as compliance And when we look at doing business with companies we want to look at those with good management teams because otherwise it can become difficult The CFO plays a very important role within this processrdquo
CEO waiting in the wingsWhen the group was quizzed on their individual desires to become CEO every hand around the table went skywards with an affirmative ldquoyes all of usrdquo - highlighting how commercially-minded todayrsquos CFOs have become Not to mention just how axiomatic the relationship between CEO and CFO consistently proves to be
Another factor is that amid all this diverse change - in roles working contexts and background economics - the CFO is seen very much as the person creating order control and standardization No small task
Perhaps the only certainty is that the communication of ideas is leading the charge forward for one of the business worldrsquos most important roles and The Changing Role of the CFO provided a definitive benchmark for this onward march
CFO RoundtableMARKET OUTLOOK
wwwthecfomecom
Members of the roundtable trade ideas
Vincent Valladares offers his position
CFO or CCOldquoThe duties have changed in some very clear ways A phrase that I am constantly coming across and strongly agree with is that we should be thinking of the CFO as the Chief Commercial Officer as opposed to someone who deals solely with finance Responsibilities central to finance continue to exist of course but strategy and other focuses are becoming just as if not more importantrdquo commented Rishi R Vig ZAFCO CFO
In addition to how much larger a remit commercial decisions are demanding the importance of regulatory protocols was a much- discussed topic The post-
Vincent Valladares Managing Director Middle East Head Citi Commercial Bank
Anand Nagaraj Vice President Head Product Development Citi Commercial Bank
Jay Raney PartnerGrant Thornton
Amgad Nassif Partner Grant Thornton
Paul Godfrey Moderator Group Editorial Director CPI Media Group
Steven Pradia Assistant EditorThe CFO Middle East
Ganapathi Bhat Senior Manager of Finance GEMS Education
Mark Downie Financial Controller Proclad
Nimesh Lokhandwala ICAI
Jehangir Pocha Himalaya
Kamal Shah Finance Manager Logicom
Rishi Vig CFO Zafco
Low Wai Leng Financial Controller Dubai Precast
Rajeev Jain CFO Afri Ventures
KG Vincent Finance Director FDC International
Ramesh Pemmasani Head of Accounts Intersun
Nagesh Nadig AIC
ROUNDTABLE ATTENDEES
IndiaCOUNTRy FOCUS
wwwthecfomecom14
SUBCONTINENTAL SURGE
By Arvind Chari
Last year was undoubtedly a turbulent time for emerging markets due to political instability inflation and the fledgling recovery in the West all causing significant headwinds Unsurprisingly this has led some commentators to be sceptical about the prospects for these markets including India But the Indian economy is showing signs that it will weather the challenges of the next few years This may not be an easy task given the
manner the Indian rupee plunged in response to the US Federal Reserversquos decision to taper asset purchasing Nevertheless India does have the political will to make the necessary reforms to deliver on its potential
While the Fedrsquos decision has caused some fallout in emerging markets commentators expect that this will tail off over time Meanwhile Indiarsquos economy is driven by domestic demand which means that
India does have the political will to make the necessary reforms to deliver on its potential
With an eye towards the nationrsquos key partnership with the Middle East the following India country report shares economic prospects accounting for last yearrsquos instability ndash defining what investors can gain moving forward
IndiaCOUNTRy FOCUS
wwwthecfomecom 15
$791bTotal trade between India and the UAE in lsquo13
64Expected growth of Indiarsquos economy in lsquo15
Indiarsquos debt market needs to attract stable investors over lsquobond touristsrsquo short term foreign flows evident in Indiarsquos bond markets
it is better placed than most to deal with the world post-quantitative easing Without the so-called lsquotaper tantrumrsquo investors in India might have focused more on the positives in 2013 But given the overall improvements in the economy and the political outlook we feel the India narrative will be harder to ignore in Q4
One of the most significant changes has been the appointment of Dr Raghuram Rajan as governor of the Reserve Bank of India (RBI)
last year He is clearly part of a dying breed of central banker that is one who actually knows how the world works He will make mistakes but the most important thing is that he will be trying to move India in the right direction as shown by his decision to continue with a hike in interest rates at the end of January Bond and currency markets have reacted very well to this move which shows the bank is now ahead of the curve in fighting inflation In October Rajan remarked that
Indiarsquos debt market needed to attract stable investors over lsquobond touristsrsquo a reference to the short-term foreign flows that have been evident in Indiarsquos bond markets His stance is an indication that policies could be shifted to attract more long-term stable money into Indiarsquos government bond markets away from a focus on the foreign-bank lsquoproprietaryrsquo investments that dominate flows currently
Indiarsquos current account deficit (CAD) was set to halve
STAT FACTS
IndiaCOUNTRy FOCUS
wwwthecfomecom16 wwwthecfomecom16
in the year ending March 2014 It was due to fall to 25 from 48 of GDP in 2013 The fall in gold imports alongside currency depreciation was a major contributing factor to this reduction Indiarsquos exports became more competitively priced over Q1 2014 which has led to higher exports in textiles chemicals and leather goods while the drop in the value of the rupee has also led to a fall in non-oilgold imports We expect the CAD to increase to around 3 of GDP for this financial year as gold import restrictions are removed a shift that should still be easily fundable Additionally the RBIrsquos FX reserves have increased by $34bn through the bank and non-resident Indian deposit swaps which was a much higher figure than anticipated This gives the RBI the additional firepower to intervene in the markets if it is necessary to counteract currency volatility In fact the
rupee has been remarkably stable since October and has steadily outperformed its other lsquofragilersquo emerging-market peers
There has also been an improvement in how other countries perceive India Net foreign direct investment is stable despite some negative sentiment driven by the outflows from the bond markets and banks Vodafone described by Rajan as lsquothe poster child for companies with difficulties in Indiarsquo is investing more in spectrum and also buying out minority operators In addition significant Japanese investment into Indiarsquos infrastructure is a further boost to the country and this relationship will be one to watch over the coming years
Overall the world has a much better impression of India than it did a few years ago when the country was facing significant obstacles In 2010 increasing inflation expanding fiscal deficits and an escalating CAD ndash all coupled with slowing growth rates ndash put India in a very difficult position But in 2012 the government realised that the current situation could not continue and since then there has been a much greater focus on reform
A mixture of poor growth and bad policies dramatically hampered Indiarsquos progress earlier this century frustrating many investors But the country is now beginning to drive a wedge between itself and the other more troubled emerging-market economies We feel
162KIndian tourists in Abu Dhabi yTD
Significant Japanese investment into Indiarsquos infrastructure is a further boost to the country and this relationship will be one to watch over the coming years
STAT FACTS
IndiaCOUNTRy FOCUS
wwwthecfomecomwwwthecfomecom 17
Population size 12 billion
Area 3287263km2
Type of government Federal republic
Official language Hindi
Capital city New Delhi
Largest city New Delhi
GDP (2012) $1825 trillion
Central government debt as a proportion of GDP 67
Currency Indian rupee
Conversion rate against the euro 0013
COUNTRy FILE
Hire a local manager or partner who has a very good
understanding of local rules and regulations
Have a longer-term investment horizon because the Indian rupee will remain
volatile for a while
donrsquot view volatility as a risk view the
integrity of the government and
management as a risk
Travel to India and feel the lsquomicrorsquo India
story rather than just read about the lsquomacrorsquo India story
Be patient and have realistic
expectations ndash things take time to work out in India
TOP TIPS FOR DOING BUSINESS IN INDIA
that these differences will mean that India significantly outperforms those economies over the coming years And while we might still be facing some turbulent times for India at least the dark clouds are beginning to break
As with any emerging-market economy the next few years will present challenges alongside opportunities and investors will have to
be comfortable with this state of affairs But India is committed to making the reforms it needs to improve its future The country has much better potential for growth than any developed country and it is also in a far better position than many of its emerging-market peers Now is the time to take advantage of all that India has to offer to investors
INNOvATIONrsquoS BOTTOm LINE Bill Chappell occupies a rare space as the CFO of Dubai Silicon Oasis a free zone dedicated to the development of technology across the emirate In the following interview he shares with CFO Magazine how far along technology has come in the UAE and why the figures are the most important aspect of his role as Chief Financial Officer
18
Cover StoryTECHNOLOGy
wwwthecfomecom
Dubai Silicon Oasis (DSO) occupies a vast 72 million square metre stretch of land in the northern reaches of the UAErsquos most globally recognised emirate Established in 2005 as a government-owned free zone devoted to the development of technology DSO has in the time since welcomed over 1087 companies into a space of which more than 59 of has been developed
Responsible for liaising with DSOrsquos companies both large and small whilst overseeing the free zonersquos balance sheet CFO Bill Chappell mans a unique station as a finance
executive with a keen eye for technological growth
ldquoIrsquove been with Dubai Silicon Oasis for nine years and my role is rather split I am the finance director but Irsquom also responsible
for our initiatives on technology incubation
and investment which is all very interestingrdquo
Chappell said Despite Chappellrsquos
years of experience in the technology industry granting him an imperatively strategic purview as CFO he makes clear what is most important as Chief Financial Officer
ldquoGetting the numbers right must always be the number one thing People talk about strategy and a number of other things but you must focus on the numbersrdquo
Chappell offered ldquoMy background is in technology companies for over ten years previous to coming here so I have a knowledge of technology which I brought to Dubai above all My overlap personally involves understanding technology whilst being a CFOrdquo
When Dubai Silicon Oasis first came into existence the area was undeveloped with no roads customers or residents Today the oasis acts as both a home for industry and residence whilst the Dubai Silicon Oasis Authority operates a number of services unique to companies which operate within the free zone A business incubation centre venture capital funding structure and various forms of entrepreneurial support are among DSOrsquos many aspects available to tenants
Said Chappell ldquoThere are three categories of companies at DSO There are smaller companies which deal more largely with our entrepreneur and incubator ecosystem The other extreme involves global firms such as Fujitsu or SAP and we look at their needs and make sure theyrsquore satisfied as customers They want our help to get setup And then there is the middle group and I meet them if they need my help as CFOrdquo
DSO counts SAP Porsche Fujitsu and Qordoba among its vast bank of companies
19
Cover StoryTECHNOLOGy
wwwthecfomecom
each of which are granted access to the Chappellrsquos well-honed expertise
ldquoBill has been involved in several meetings to gain updates about the company and offer input on what he thinks we should be focusing on whilst asking questions about our financial processes He also sits with the board on occasionrdquo said Loulou Khazen Baz founder of Nabbesh an online marketplace which connects professionals with work opportunities
ldquoDubai Silicon Oasis has been an important Investor at various stages of Nabbeshrsquos journey and a vital stamp of approval Our company has found priceless value in DSOrsquos support and the approachable nature of an involved CFO like Billrdquo
Chappell faces a number of challenges related to investment due to the region not ranking tech developments as high as traditional platforms such as real estate Additional concerns related to innovation have found themselves increasingly entering the CFOrsquos remit as related to encouraging ideas specific to the region Chappell is confident however that certain companies based in DSO are addressing these issues
ldquoIn this region one of my biggest challenges is getting people to understand
ldquoPeople talk about strategybut getting the numbers right must always be the number one thingrdquo
20 wwwthecfomecom
the complexities of tech Technology is a good investment class but the region is focused very much on real estate whilst the investment class of technology doesnrsquot rank as highrdquo said Chappell ldquoIn order to widen the general understanding we want to be developing solutions which address problems specific to the region We have one or two gems for example Qordoba a translation company which translates content in multiple languages The programme utilises artificial intelligence and as a result is getting smarter and smarter each time it is asked to translate so that it understands the meaning of what itrsquos translatingrdquo
Another key variable for DSO is centred on supporting
Dubairsquos goals based around becoming the worldrsquos capital for Islamic finance Chappell describes his role as CFO as one with ldquotwo thousand handsrdquo a multi-layered position which he seems to relish being held responsible for While DSO has grown tremendously in its near decade of existence the free zonersquos exuberant CFO sees lots more to come
Said Chappell ldquoI see us going from strength to strength Wersquove been in existence for nearly ten years When I joined it was empty desert Now we have over 1000 companies and an estimated 43000 living on site Within five years wersquoll also be further down the path and wersquoll be recognised for our contributions to the smart city and the Islamic economyrdquo
ldquoWithin five years wersquoll be further down the path and recognised for our contributions to the smart city and the Islamic economyrdquo
Dubai Silicon Oasis
headquarters
1080Companies in DSO
72millionDSOrsquos land mass in square metres
STAT FACTS
Cover StoryTECHNOLOGy
THE MIDDLE EAST ACCOUNTANCYAND FINANCE EXCELLENCE AWARDSWEDNESDAY 10 DECEMBER 2014AT THE JUMEIRAH BEACH HOTEL DUBAI
ACCOUNTING FOR EXCELLENCE
Once again the very best talent in the world of accountancy and fi nance will be celebrated by ICAEW at a stellar awards ceremony
ICAEW is a professional membership organisation supporting over 142000 chartered accountants around the world And on Wednesday 10 December 2014 at the Jumeirah Beach Hotel in Dubai wersquoll be recognising excellence in ten categories featuring Business Leader of the Year CFO of the Year Corporate Finance Deal of the Year and the Internal Audit Excellence Award
With an impressive line-up of speakers special guests and entertainment it all adds up to a trulymemorable evening
To submit a nomination or for more information visit icaewcommiddleeastawards
Nominations close on 1 October 2014
A WORLD LEADER OF THE ACCOUNTANCY AND FINANCE PROFESSION
400595_ICAEW_MiddleEast2014_Ad_NBAD_DEVERE_207x270_AW_3indd 1 27082014 1541
PROCUREMENTANALyTICS
wwwthecfomecom22
Return on Supply Management Assets (ROSMA) is a pioneering framework launched by AT Kearney after four years of testing one aimed at addressing the aforementioned procurement gaps The performance measurement standard was initiated with an eye on creating a benchmark for the procurement industry and providing a compass to direct investments
ldquoROSMA started in 2010 And it started out with conversations with the CFO There are a group of folks in the company talking about how great their achievements are however
the capital that procurement claims isnrsquot often obvious and can create a disconnect within the companyrdquo said AT Kearney Vice President Federico Mariscotti
This yearrsquos annual report surveyed a number of businesses and arrived at a series of significant findings which outline procurement patternsbull Top-tier companies generate
approximately $16 million in financial return per procurement employee yearly A reported 35 per cent of return derives from applying advanced methods
bull Mid-level performers typically
The first step for compa-nies in the Middle East is to take a good look at what they expect procurement to bring
Leading global management firm AT Kearney recently released a report on the evolving conversation which surrounds procurement A key aspect of the report spells out how much CFOs stand to gain by making more pronounced investments based on utilising procurement in terms of value The relative distance between CFOs and their respective companyrsquos procurement methods is cited as cause for concern
THE NEW LANGUAGE OF PROCUREmENT
generate four to five times of their investment in procurement valuation yet have not exemplified growth since 2011
bull Performers at the lowest level surveyed do not achieve monetary benefits which cover costs
bull The majority of organisations surveyed do not possess the tracking structures needed to analyse procurement performance
bull Regardless of company size or industry procurement
PROCUREMENTANALyTICS
wwwthecfomecom 23
The CFO community has not yet awakened to the value of procurement
performance varies though companies with sophisticated reporting techniques experience less variable performance
The reportrsquos express aim to create a benchmark for procurement follows a wave of process monitoring which found notice in the manufacturing industry in the 1980s supply chain research and engineering in the 1990s and sales and marketing performance being closely tracked in the 2000s
ldquoProcurement costs can represent anything from 20 to 90 of a companyrsquos total cost going from the public sector to consumer goods Yet the productivity of the team that presides over the supply market interactions has a way of explaining their value add using savings that do not add up to the PampL impact measured by finance Savings definitions different baselines and cost avoidance all contribute to a murky aggregate view of the impact on the businessrdquo added Mariscotti
In the Middle East the challenge is fundamental ndash getting the spend data in the first place Companies admit they often do not have a clear categorisation of intelligence lack an agreed definition of savings measurement and generally position procurement as a pre-eminently transactional activity lacking the mandate to contribute value Procurement processes as a result remain centred around purchasing are paper based and lack transparency The first step for companies in the Middle East is to take a good look at what they expect procurement to bring
wwwthecfomecom24
Influencedspend
The inconsequential The brand leaders
Leaning up
Note All three segments start with a common hypothetical spend of 1000 to normalize the case example
Source AT Kearney analysis
Source AT Kearney analysis
TOP QUARTILE
mIDDLE-TIER 50
BOTTOm QUARTILE
704
764
644
522
527
396
42
30
(138) (25)
(63)
19
39
28
15
21
4
3
60
32
18
Sourcedspend
Units of yield
Post-compliance
benefits
Additionalbenefits
Financial results
delivered
19x
17x
middle tier
bottom quartile
TOP-QUARTILE PERFORMERS DELIVER NEARLy TWICE AS MUCH VALUE AS MIDDLE-TIER PLAyERS
THE CFO COMMUNITy HAS NOT yET BEEN ldquoAWAKENEDrdquo TO THE VALUE OF PROCUREMENT
Procurement is not on the radar for those who gave the wrong answers to three essential questions
leadership with accountability for performance is clear but either the measures are not clear or performance is believed to be weak variable or unknown ndash or a mix
leaners and leaders answered all three essential questions correctly and also answered most or all other questions correctly
to the table and how it should support the business To make a steep change companies need to understand the multiple benefits which will occur for investments made once theyrsquove allowed for stronger procurement practices
The benchmarking aspects of ROSMArsquos report speak directly to CFOs based on an existing widespread inability to track and improve this often unquantifiable nature of procurement practices According to the report the CFO community has not yet awakened to the value of procurement and Chief Financial Officers are thus divided into three segments The brand leaders (25) those leaning up (63) the pack (774) and the inconsequential (138)
Said Mariscotti ldquoThis is a way to give procurement a measurable quality that CFOs can quantify You have to know what yoursquore doing with relation to procurement in order to do it well ROSMA gives you a number which helps you understand how good your procurement is working as compared to peers It lets you know whether or not you could be doing something differentrdquo offers Mariscotti
CFOs have exemplified an increasing ability to share in a companyrsquos strategic efforts whilst expand their respective remits Procurement is emerging as the latest segment of this conversation Understanding its value beyond the transactional is the first step for CFOs to fully engage with harnessing the potential of procurement and grow to become a part of the elusively paltry portion of brand leaders indicated in ROSMArsquos report
PROCUREMENTANALyTICS
The pack(774)
Al Sharid is the Vice Chairman of Emirates Transport and has enjoyed a successful career in which the lionrsquos share of his tenure has afforded him a seat at the helm of the business
ldquoI remember when I first received the GM of Tata in the late 80s he said to me lsquoYou are the youngest GM I have ever metrsquo I was 29 years old at the timerdquo Looking at Al Sharidrsquos rapid ascent to the top of his organisation can be mind boggling to the average observer however to those few who strive to push themselves to their limits it is perhaps more common a reality As with any top performer we can often see their desire for results and impact
early on in life and with Saeed the first stride of his race to the top began with an accounting degree in university
It was 1976 and the excitement of the UAErsquos biggest milestone moment its inception just five years earlier still clung to the air from Fujairah to Abu Dhabi and every emirate in between A nation was being built Saeed had just finished high school and went to the United States where he was to study engineering
ldquoI was not yet 18 years old it was 1976 and I was sent to America to study it was the beginning of a dream and a young liferdquo says Al Sharid Unfortunately Al Sharidrsquos academic tour of duty came to
THE EmIRATI DREAm Saeed Al Sharid is today an elder statesman in the world of UAE accountancy With decades of know-how based on chairing a number of key Emirati organisations Al Sharid is today atop his own family firm In the following exclusive interview he shares the importance of education the evolution of a nation and just how being an accountant has driven his many triumphs
an abrupt halt when his father suddenly passed and he was forced to return home ldquoWe are seven brothers and I am the middle one so during tough times we always come together and during this period the strength of my family pulled me through I have three younger brothers and I felt I had to be there for them I felt responsible for them My mother played an omnipotent role in pulling us through this dark moment in our history The death of my father forced us to become more independentrdquo says Al Sharid
Now back in the UAE with his plans of studying abroad dashed Saeed looked at the local schooling system within which Al
26
InterviewPERSONALITIES
wwwthecfomecom
Saeedrsquos desire for results took its first stride with an accounting degree in university
By Shane phillips
27
InterviewPERSONALITIES
wwwthecfomecom
Ain University had just opened ldquoAl Ain University was the pride of the Emirate at the time the students were like celebrities The first batch of graduates were all promised 50000 AED from HRH Sheikh Zayed I was one year late so technically I should not have graduated with the first batch but I was determined I worked an extra course load did summer school and soon caught up to the first class 50000 AED in 1981 was like 5000000 AED today so I was very motivatedrdquo says Al Sharid
Saeed not only caught up with the other students but he wound up graduating atop Al Ain Universityrsquos first class of graduates with a 38 GPA ldquoWe Saeed Al Sharid
28 wwwthecfomecom
to the organisationrdquo he says Saeed first joined Emirates Transport after seeing a small newspaper advertisement for an accountantrsquos position He applied but initially they did not want to hire a local because locals were too expensive After a few months however they called him back for an interview and offered him a job
Initially Saeed struggled to get a promotion or even a raise He worked tirelessly to develop himself and kept detailed notes of his work After nearly two years went by with no promotion he requested to meet with the Chairman of the corporation to discuss his career The Chairman was a Minister making him even more senior than his title implied Al Sharid was courageous and determined ldquoYou should not stay silent you have to take initiative your future is in your handsrdquo says Al Sharid
ldquoI met with the Chairman and told him about my work and what I wanted to do He did not talk he just listened and that was it It was a 15-minute meetingrdquo says Al Sharid Three days after Al Sharidrsquos pivotal appointment he was promoted to Deputy General Manager Directly from a Trainee to DGM skipping all the roles in between at the age of 27 years old They doubled his salary and catapulted him into a senior leadership role
ldquoI felt it was quite strange to move up that fast and personally was not sure I could handle the job I had a lot of resistance from the board I had people in their 50s reporting to me and they were not happy about it So I just took a step back and did not try to get involved in their work too fast I went slow and watched my step This was a very important
ldquoThe UAE was a brand new country and a lot of work was being done to develop the nationrdquo
never had any idea of a career path and there was no such thing as career counsellors or lsquocareer servicesrsquo at the school So when you graduated most people just joined the Ministries The UAE was a brand new country and a lot of work was being done to develop the nation The Federal Government paid the highest and so one just joined them There was no grand vision or dream that I was off and chasing In those times you simply tried to do the next best thing So I ended up working in the Ministry of Health as an accountant Back then a university degree was a veritable qualification and it had a lot of market equity today it wonrsquot even get you in the doorrdquo
As the Middle East market evolves not only are university degrees becoming more common but so are post graduate degrees such as MBAs and even PhDs As such the competitive positioning of professional qualifications are gradually eroding over time
ldquoTo stay competitive executives today will require deep and specialised knowledge of their respective industries an intellectual arbitrage that provides superior results To beat the market to manage the risks to develop a sustained competitive edge For this executives need to stay in a role for the full strategic cycle which is at least four years in durationrdquo says Sharid In the case of Al Sharid he was there for 33 years
ldquoDo you just want a job or are you looking to make a contribution to your company Too many young people today are just looking for a title or a position The difference between those who make it into senior roles and stay there is the desire to create impact to add value
InterviewPERSONALITIES
2012year Moodyrsquos upgraded the UAE economy from developing to emerging
37The UAErsquos global rank for GDP
STAT FACTS
moment for me to gain valuable leadership experience early on To make my learning curve even steeper the General Manager quit after two years and I became the GM at the age of 29 years oldrdquo explains Al Sharid
He ascended to the top job in less than five years and stayed in the position for almost twenty years He was totally committed and could even be found in the bus yard at four in the morning to greet the drivers as they started their shifts ldquoThe key to being successful in business is to keep your finger on the details Some people let the details slip and if this happens you will suffer I get into the yard I meet the drivers I meet all the staff If you saw us you will not know who was the GM or who was the driver You have to realise people will never work for you they will only work with you To me Emirates Transport is like my familyrdquo says Al Sharid
When asked what his keys to success are he says ldquoI think if I was not an accountant I would not be a good leader I would not be a good manager In my opinion trying to do business while not understanding accounting is like getting into the ocean and not knowing how to swim you will drown The Chief Executive Officer who does not know how to create the financial statements is always at the mercy of his Chief Financial Officer He cannot take any big decision on his own and he will not even be able to challenge the CFO Accounting is the bedrock of any business and a critical skill set for any leader No one can argue with this factrdquo says Al Sharid
With over 20 years of experience in tow and the related chairmanships to boot Al Sharid
ldquoTrying to do business while not understanding accounting is like getting into the ocean and not knowing how to swim you will drownrdquo
has since early last year partnered with his family to form Al Sharid Auditing Though the Emirati youth is not as keen to pursue positions related to accountancy as Al Sharid was he feels that there is hope to close the gap
ldquoIt is difficult to find an Emirati expert I studied the audit market specifically and there were others like me then But now you break Emirati auditing involvement into three categories The first involves the big firms This is followed by individual smaller enterprises But thirdly a lot of locals opt to work with the government also Most are not managing their own firms they just have a partnership and they are building thatrdquo Al Sharid explains
ldquoAl Sharid Auditing however is a firm that includes my brother and our two sons which make up a body of qualified professional auditors We established this firm last year and work closely with the government We decided to make one firm together instead of having many smaller entitiesrdquo
Moving forward Al Sharid plans to grow his familyrsquos firm by applying the very belief system which has catapulted him to his position of power Marketing concerns which are designed to furthermore announce how tailored Al Sharidrsquos offerings are at present a key variable to forging ahead
Said Al Sharid ldquoMoving forward wersquore focusing more on the marketing of our firm Itrsquos a matter of not exactly expanding but going over the right deals The market is tough and the small jobs are easy but we donrsquot need them We donrsquot want to be in many rooms we want to be in the important onesrdquo
29wwwthecfomecom
InterviewPERSONALITIES
1UAErsquos rank among GCC nations for chosen hub of all major accountancy bodies
STAT FACTS
Latest insights from PwCrsquos 15th Annual Global CEO Survey revealed that 59 per cent of CEOs see emerging markets as more important than developed markets to their future What is making emerging markets such a pressing priority for C-suite executives Why are emerging markets increasingly grabbing headlines
Emerging markets are large fast-growing and ambitious markets best known for being the growth engines of todayrsquos global economy Research (1) suggests that emerging market countries are expected to amount for more than 60 per cent of global GDP growth ndash a clear indication of the wealth of opportunity they present
Understanding emerging marketsBased on estimates by the International Monetary Fund emerging economies are expected to grow two to three times faster in comparison to developed nations Explaining this fast-growth and the rise of these emerging markets an article on Forbescom details that ldquoduring the US housing crash and resulting credit crisis of 2008 world markets were saved from a total disaster thanks to the big emerging markets ndash mainly Brazil India and China The global credit crisis was one of the longest deepest and most painful in history It toppled Wall Street icons like Lehman
The following report explores emerging markets from West to East which are at the helm of economic development trade and innovation and highlights what their rising popularity means for the growth of your business
Brothers required government bailouts of bulge bracket banks and shocked the global economy with a deep economic recession and even a deeper crisis of confidence Its most important legacy though may be one that has yet to fully unfold the crisis revealed a new world order in terms of economic and market dynamics Emerging market economies finally arrived as
30
Market IntelligenceANALyTICS
wwwthecfomecom
ENTERING EmERGING mARKETS STRATEgIES RISKS ANd OppORTuNITIES
Projected annual GDP growth 2014 amp 2015
PANAMA
67
PERU
RANK42
55
Projected annual GDP growth 2014 amp 2015
Ease of Doing Business
RANK55Ease of Doing
Business
TOP TEN MARKETS
(1) Source here Accenture Research ldquogearing up for growth ndash five imperatives for success in emerging markets 2011 Henry Egan and Armen Ovanessoff
31
Market IntelligenceANALyTICS
wwwthecfomecom
LATVIA
CZECH REP
MALAYSIA
THAILAND
SOUTH KOREA
CHINA
RANK75
41
21
50
45
35
74
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
CHILE
RANK 34
43
Projected annual GDP growth 2014 amp 2015
Ease of Doing Business
RANK 24Ease of Doing
Business
Ease of Doing Business
RANK 6Ease of Doing
Business
RANK18Ease of Doing
Business
RANK 7Ease of Doing
Business
RANK 96Ease of Doing
Business
POLAND
32
RANK45Ease of Doing
Business
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
Source httpwwwbloombergcomnews2014-01-29qatar-china-top-ranking-of-frontier-and-emerging-marketshtml
powerful essential and permanent contributors to global economic growth and sustainabilityrdquo
Bloombergcom recently ranked the top emerging markets based on their performance on 19 economic financial political and social indicators In order of ranking the top ten markets were
CHINA
SOUTH KOREA
MALAYSIA
CHILE
THAILAND
PANAMA
PERU
LATVIA
POLAND
CZECH REP
1 6
2 7
3 84 9
5 10
Market IntelligenceANALyTICS
32 wwwthecfomecom
Making an entryIf your business is looking to enter any of these emerging markets itrsquos worth considering the following checklist
1 Assess your readiness The biggest mistake you can make is to enter a market without proper evaluation of your business Donrsquot do it just because everyone else is Like every other major business decision be sure to speak to your Board of Directors partners investors stakeholders and most importantly your CFO and certified accountants Make a business plan enlisting your objectives goals investment strategy potential risks etc
2 Research research research Do your homework Treat emerging markets as any other international expansion venture and do thorough research on the new market ndash Who are the competitorsWhat is the price point for your product What are the customer demographics What kind of infrastructure do you need for the manufacturing production or distribution of your product
3 Understand the legal framework Emerging markets might not have rules and regulations as clearly spelled out as your home country Invest some time and money in understanding how business procedures work A very obvious area of focus for UAE-based companies is tax Since the UAE is a tax-free economy companies arenrsquot exposed to tax accounting and other legislation surrounding
ndash failing to adapt to the needs and expectations of the local customers is surely a recipe for failure Time and again companies havenrsquot been able to create a customised offer and have had to exit these markets with huge losses A success story however is that of the Haier Group Haier famously introduced washing machines to specifically suit the water pressure levels in the households of India ndash an emerging market strategy that worked very well in their favour and helped them become leaders in that sector Another great example is that of Coca-Cola as explained in an online Reuters article by Matt Reilly ldquoIn Brazil Coca-Cola has used social media to better understand consumer preferences and has developed a successful local network to supply traditional Coca-Cola products as well as fruit juices tailored to local tastesrdquo
7 Local currency This is a complex yet critical area to consider when entering a new market Ask yourself questions such as ndash What is the local currency rate How does it compare to the currency in your home country Is the country import-led or export-led and what impact can this have on the global value of the currency Remember that fluctuations in currency rates can hugely effect your overall investment and thereby the return on investment
8 Build partnerships When entering an unknown territory it is quite useful to have the backing and support of peers who can help you in case of unforeseen challenges This is
this Another area to consider is corruption ndash emerging markets are notorious for high corruption red-tape and bureaucracy Speak to your company lawyer to assess these areas and take proper measures to avoid them before-hand
4 Invest in local talent Working with people already accustomed to the new market avoids the hassle of relocation and reduces costs But more significantly gives you skilled talent to work in these unique environments This also works in favour of your company as it gives you a clear understanding of the kind of compensation packages you will have to offer to your employees For instance employees based in China might want high remuneration and low healthcare benefits while in India it may be quite the reverse Recruiting local talent will also have a trickledown effect ndash your employees will easily be able to cater to the local customer needs without the need for intense training
5 Supply chain 44 per cent of business leaders surveyed consider accessing the right supply chain capabilities extremely or challenging in emerging markets according to Deloittersquos Globalisation Survey Make sure that you know who your suppliers will be what the production costs are whether their production procedures fit your time constraints and if the final product matches your level of quality
6 Cater to local market demands This is one of the most important aspects of all
Do your homework Treat emerg-ing markets as any other internation-al expansion venture
Market IntelligenceANALyTICS
33wwwthecfomecom
the very reason why Mergers and Acquisitions are a popular way to enter into emerging markets Many companies piggyback on their clients who are entering these markets For instance if you are an IT consultancy working on a major project for a manufacturing and trading company with operations across India and China you can use their resources and expertise to explore opportunities in these countries
Remember to consider these steps every time you enter a
new market as every locality has its own set of unique needs One strategy doesnrsquot fit all
Surviving fierce market conditionsWhile the massive opportunity that lies within emerging markets paints a pretty picture businesses need to be wary of bottlenecks such as corruption volatility gaps in laws and regulations and strong competition There have been several high-profile cases of multinational companies withdrawing from emerging
markets owing to immense corruption pressures
There is also a high percentage of inherent risks in these markets which amount to many companies not succeeding in their first attempts It is important to take your time when adapting to these markets and fully understand the business dynamics Following recent case studies and going over the lessons learnt by multinational companies who have made an entry into these markets consider the below
bull Is your companyrsquos head-office ndash and senior management ndash located in your home country without any C-level representation in the new emerging market
bull Are you focusing all of your resources on doing business in the emerging market at the cost of losing profits in your home market
bull Have you researched local competitors in these markets who may already have a strong standing and proven models of success
bull Are you using the same ldquoentry approachrdquo and business model across different emerging markets
If your answer to one or more of these questions is yes it may be time to re-evaluate your presence in these markets and map out a different strategy
Finally remember that no matter what the outcome of your admission to these markets might be your business is sure to emerge out of this stronger tougher and ndash of course ndash ready for a new challenge
of companies believed they had invested more resources in
emerging markets than was required
entered a market without fully assessing the ability of the supply chain to support the expansion
entered with the wrong pricing model and an inappropriate
operating model
CONSIDER THE RISKS
48
24
20
There is also a high percentage of inherent risks take your time when adapt-ing to these markets and fully understand the business dynamics
Source Emerging markets expansion and the supply chain Economist Intelligence unit survey conducted on behalf of EY September 2010
34
CIMA INTERVIEW
wwwthecfomecom
The Chartered Institute of Management Accountantsrsquo (CIMA) Managing Director Andrew Harding visited Dubai to host the Institutersquos seminar on global management accounting principles In the wake of CIMA revising their well heralded syllabus Harding discussed with CFO Magazine what the newest edition held how CIMA is applying a digital focus to its courses and just how CFOs can gain from it all
CURATING CURRICULUm
35
CIMAINTERVIEW
wwwthecfomecom
can give CFOs something they can take and something they can measure their own management accounting services against They can benchmark using this and they can utilise this to see their progress
Part of that is having professional management accountant in place I donrsquot think the landscape matters I believe that there is a common business need wherever you may be around the globe
All of the emerging markets need these skills The first aspect that accounting schools teach is about auditing skills because theyrsquore interested in protecting investments Then they teach you how to keep your business sustainable and to have a sustainable business you need to have a management accountant in place So itrsquos not just here in the UAE where we see these demands we see the same demands in China Indonesia and other powerhouse economies We see their skills shortages and we see the need for solutions in those areas
Talk to me about how this new syllabus works to promote the evolution of a CFOThis syllabus that wersquove
Can you expound on just what can be found within the new CIMA syllabusWe just revised the syllabus we do that every four to five years What we have done this year is a very significant revision It is based from a complex study that we have carried out to over 3000 people from 200 companies globally It is the very first revision since the joint venture with CIMA and AICPA So this has allowed us to attain a syllabus rich with all the data from all the continents in the world For the first time wersquove had real involvement from companies in the USA in this project
Why is the collaboration between AICPA and CIMA significantMost important is the Chartered Global Management Accountant (CGMA) designation that AICPA and CIMA both issue for qualified management accountants Wersquoll have a common curriculum and common examination which will begin on January 1 which gives us a global designation for management accountants wherever they are around the world There are plenty of accounting bodies who claim to be global but actually this is the only
genuinely global designation This is because it has the only one with a North American participation in it So we can say that the CGMA will be just as well-recognised in the USA as it is in Dubai
With the global landscape in mind how do you create an even objective that applies to localities which may prove widely differentialThe landscapes are different but businesses have common needs wherever they may be What wersquove particularly seen since the global financial crisis is that companies are actively looking to build management accountant capability to build that capacity within their organisations They donrsquot want to have a poor quality of information that lacks insight being used in their businesses So they see management accountants can bring solutions to that As a result of all the work wersquove done with companies who participated in the syllabus wersquove also put together a series of what we call Global Accounting Principles This is a series of principles which describes what good management accounting looks like and what top quality management accounting in a company should be producing This then
ldquoCompanies are actively looking to build man-agement accountant capability to build that capacity within their organisa-tionsrdquo
36 wwwthecfomecom
worked on acknowledges the skill set needed by professionals throughout their career Therersquos a base level of competence that is needed but beyond that there is more There is business acumen the ability to communicate and influence and finally the ability to lead So you start off enhancing your raw technical accounting skills Then you need to place that into the context of the business that you are in Then as you move forward and as you rise to become the CFO yoursquoll need the others You have to learn how to present your work in a way that can influence and make an impact in the business The final piece is the ability to lead projects and other functions and to a great extent lead the board of directors Thatrsquos how the context works itrsquos not just about technical knowledge
How do you find that CFOs in the GCC region are responding to this programmeThe CFO has a real challenge on his hands now In 1975 80 per cent of corporate value is showing on the balance sheet By 2010 that dropped to less than 20 per cent Your traditional PampL reports no longer reflect the value of the business or how the business drives value
All things that should be of interest to investors is missing With things like the integrated report initiative wersquore starting to see the other dimensions that add value to business For CFOs thatrsquos all about strategic thinking and considering the long-term objectives Being articulate in implementing those strategies keeping in mind the risks and opportunities that the business faces We are also nowadays witnessing a whole new world of transparency around that
Are there electronic aspects to CIMArsquos advancing approachThe interactive case study simulates a real working situation and it tests how they can apply their knowledge in real life situations Theyrsquoll be presented with a scenario a few weeks before they take the exam so they can prepare for it They then go to an exam centre where they are asked questions about how they will deal with a certain situation in the real world Theyrsquoll get an email from the CFO giving them a certain task for a particular period of time We want to make it as close to reality as possible so students taking the exam will be assessing situations based on real life scenarios
ldquoThe CFO has a real challenge on his hands now as traditional PampL reports no longer reflect the value of the businessand [the role] must focus on strategic thinking and considering long-term objectivesrdquo
218KCIMA members worldwide
STAT FACTS
CIMA INTERVIEW
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
38
ERPANALyTICS
wwwthecfomecom
Faster more nuanced IT solutions are available to the modern day CFO Whilst Chief Financial Officers are called upon to analyse data across a number of spectrums the digital tools on hand are likewise being expanded to aid in focusing more squarely on the bottom line
ExCELLING WITH ERP
The global landscape is today firmly entrenched within a digital model As a result CFOs whom are called upon to take a larger role in a number of variables must also increase their abilities with respect to utilising the many upsides which tech innovations offer a business When surveyed about their most pressing concerns CFOs generally return a varying collection of responses Revenue growth regulatory changes and meeting quarterly goals are among the chief concerns Virtually every obstacle can be hurdled by way of maintaining the order of financial reporting and data which has long been
synonymous with the Chief Financial Officerrsquos remit A widening berth of ERP solutions is making this data all the easier to come by
Despite how sophisticated the market is today it was not long ago that ERP departments once spent days processing business reports
Said Rohan Tejura Assistant Vice President Focus Softnet ldquoTraditional ERP systems were solely data repositories Moreover these repositories werenrsquot real time and were incredibly dependent upon locational connectivity With the emergence of smarter development platforms more versatile devices and
39
ERPANALyTICS
wwwthecfomecom
more intuitive designs of system development the overall experience of the ERP now extends from data warehousing to reporting analysis trend mapping business intelligence and governance oriented capabilities Yet these solutions amazingly execute all of these deliverables via portable handheld devices and through cloud environmentsrdquo
New generation ERP systems must now be on the go whilst including up to the minute analytics to provide deeper insight into the business ERP Analytics tools use historical data captured from various business functions to provide valuable information for efficiency and business performance each incredibly priceless to a leading CFO
Finesse is an ERP provider which is continually addressing the transformation of output which the ERP industry is offering the equally transitioning role of CFO
ldquoWe provide end-to-end business management solutions to SMEs and Enterprises Our approach to ERP is much more than providing simply an operational management systemrdquo said Finesse COO Sunil Paul
ldquoWe believe that todayrsquos businesses need much more than integrating sales with inventory accounting and manufacturing but also to have seamless integration with all their sales channels including the point of sales ecommerce and inbound sales solutionsrdquo
A major im-petus of the ERP-cen-tered growth is based on how effec-tive com-prehensive real-time data proves to be for the CFO
40 wwwthecfomecom
before thereby creating new global benchmarks for overall economic growth
Microsoft Arabia CFO Sadrul Khan offered insight into just how far the knowledge economy has influenced regional financial leadership by explaining how one of the most prioritised technologies by CFOs in the region is social platform monitoring
ldquoOne of the five technology choices that CFOs tend to prioritise in boosting productivity efficiencies and faster decision making in the fast paced business environment which include a social platform that monitors trends customer sentiments and helps process mashable data for customer centricity and business growthrdquo said Khan
A major impetus of the ERP-centered growth is based on how effective comprehensive real-time data proves to be for the CFO Whether employed as on-premise ERP software-as-a-service or cloud-based solutions a nearly identical ethos is being utilised Allowing the CFO to quickly access the performance of all facets of a business is paying dividends in the boardroom a reality which is showing itself increasingly in the Middle East
The technologically-charged relationship between ERP solutions and the regionrsquos CFOs is expanding and as a result has catalysed what many see as GCC economic performance outstripping that of many economies outside of the region as a result
In order to compete in todayrsquos fiercely competitive environment organisations need to think both innovatively and out of the box They require more insights about their business and their customers and need to ensure that they are able to meet the expectations of their internal as well as external stakeholders Enormous amounts of data both structured and unstructured is continuously being generated within the internal and external systems of the organisation which if analysed can be of immense value both to the business and subsequently the stakeholders associated with the organisation
With the the era of CFOs labouring over spreadsheets now in the past given how many business frontiers have become so dependent on mobile options such as the cloud more and more tech companies are providing the regionrsquos CFOs with information technology that converts traditional internal and external data into rich visual insights This information is then used for faster decision making and provides the ability for a CFO to assess manage and control risks Regional CFOs have grown enabled to drive corporate strategy accordingly demonstrating how the knowledge economy is now in full force amongst the Gulfrsquos corporates
Given that advanced IT has now become a regular CFO tool the regionrsquos CFOs are subsequently making faster decisions and driving internal growth models with greater speed and agility than ever
Tech companies are providing the regionrsquos CFOs with information technology that converts traditional internal and external data into rich visual insights
ERPANALyTICS
Donrsquot discoveritrsquos counterfeittoner afteritrsquos too lateOriginal HP Toner works first time every time1 unlike cheap toners which fail over half of the people who try it2 Non-HP toner can compromise your printerrsquos performance to give you streaked blotchy or faded prints Only original HP Toner cartridges deliver unmatched quality for the most professional-looking prints 100 of the time1
1 A QualityLogic 2010 study commissioned by HP comparing original HP LaserJet Monochrome print cartridges with nine brands of non-HP toner cartridges available in Europe Middle East and Africa for the HP LaserJet P1505 and P4015 printers HP 36A and 64A For details see wwwqualitylogiccomEMEAmonotonertestpdf 2 From a 2012 EMEA Lyra Research study commissioned by HP Results based on a total of 1050 HP Color LaserJet users who have used both original HP and non-HP toner cartridges of whom 552 experienced problems with non-HP cartridges
copy 2014 Hewlett-Packard Development Company LP
42
Private Equity ANALyTICS
wwwthecfomecom
The rise of PE-backed acquisitions is forcing CFOs to develop an entirely new set of skills
THE PRIvATE EQUITy CFO
The CFOrsquos utility in the world of private equity is without question on the rise The once-held belief of the CFO existing solely as the ldquoaccounting guyrdquo has been abandoned Over the last 20 years the role of CFO has become more demanding - requiring not just finance and accounting acumen but also a financial literacy in corporate planning risk management MampA assetliability management and regulation This evolution has been driven by a number of
key factors Yet the private equity industry which is now reshaping the corporate landscape through active ownership is by far the most significant factor driving change within the role of the CFO
PE-backed buyers today represent a larger percentage of overall buyers in the corporate acquisition marketplace than ever before Data provider Prequin estimates that as of June 2014 the capital raised by PE funds that
has not yet been deployed amounts to $114 trillion globally The result of this ldquodry powderrdquo is that a vast quantity of corporate acquisitions in the coming years will be undertaken by the private equity industry As such CFOs will be more accountable to demanding ldquosmart moneyrdquo shareholders than at any point in recent history Budgeting accounting and financial reporting will no longer exist as sole priorities but as a core competency among a
ldquoBy effec-tively using real-time data CFOs can create a dynamic process that proac-tively drives performance account-ability and value crea-tionrdquo
By Aaron Heidari
43
Private Equity ANALyTICS
wwwthecfomecom
robust set of complimentary and required skills Most of all the bar for CFOs is rising as PE investors will only accept above-average performance from their management teams
CFOs were once more reactive in function setting budgets based on other executivesrsquo plans and managing the flow of reporting to shareholders on a quarterly and yearly basis Today CFOs are required to become proactive managers of their respective businesses alongside their C-suite compatriots using a granular data-driven approach to aggregate analyse implement and report on every aspect of a companyrsquos operations
An important tool to drive this value creation process are KPIs Yet KPI structures including both aggregation and output are generally not up to the standards required of private equity investors prior to an investment being made
ldquoThe benefits of using KPIs and monthly reporting packages are significant By effectively using real-time data that is actionable and by partnering with functional area leaders within the organisation company CFOs can create a dynamic process that proactively drives performance accountability and value creationrdquo said Amanda Robinson Vice President of Accordion International in Dubai a consulting firm which is comprised of former private equity and investment banking professionals who
MENA region Cumulative Funds Under Management Since 2008
Source Zawya private Equity Monitor
19 636 20 36321 586
22 64323 506 24 250
-
5000
10000
15000
20000
25000
2008 2009 2010 2011 2012 2013
Cu
mu
lati
ve f
un
ds
($ m
)
$15mAverage MENA PE investment size in lsquo13
50Percentage of investment in IT and energy sectors
STAT FACTS
44 wwwthecfomecom
work with companies to deliver cost-effective project execution services
Active shareholders whose money it is being spent will typically require a data-driven justification before approving any budgets capital expenditures or new acquisitions Furthermore in many private equity backed companies the use of debt and the matching of shorter-term bank financing with longer-term investments will only be considered after a robust analysis is conducted to understand the companyrsquos ability to service that debt in the future This evaluation is not simply to identify revenues expenses and profits Itrsquos about drilling down into every transaction and rooting out data processing and reporting At least that is the expectation
The most valuable CFOs are those who have the ability not just to scrutinise and understand the financials but all also possess a wider grasp of the underlying data which truly comprise the business As an investor who has just acquired a stake in a new business I want a CFO who can manage the transition and stay ahead of my expectations Most of all a CFO should impress upon the companyrsquos shareholders a new way of doing business The first 100 days of an acquisition are said to be the most important During this period the CFOrsquos worth will be established when the new financial plan is due and the platform for the next five years of growth is presented
A CFO should man-age the tran-sition stay ahead of expectations and impress upon the companyrsquos shareholders a new way of doing business
Investment Volume By Sector Since 2006
Investment Volume By Sector in 2013
Source Zawya private Equity Monitor
1
3
30
17
3
28
3
4
6
4
6
5
17
9
9
6
9
5
8
6
6
2
3
10
Education
Education
Information Technology
Information Technology
Other
Other
Telecoms
Telecoms
Media
Media
Transport
Transport
Oil amp Gas
Oil amp Gas
Healthcare
Healthcare
Consumer goods
Consumer goods
Food amp Beverages
Food amp Beverages
Leisure
Leisure
Manufacturing
Manufacturing
ANALyTICS
Private Equity
2000857 NBAD ratibi mag ad 200x268 Finalindd 1 92514 1017 AM
46 wwwthecfomecom
THE FUTURE OFACCOUNTING EDUCATIONAddRESSINg THECOMpETENCY CRISIS
Have you ever stopped to think about how the accounting profession has changed since you graduated from college Recent graduates can answer this question by reflecting on the last two or three years whereas for other more seasoned professionals answering this question requires a bit more thought and memory searching Indeed we can all think of ways that the field of accounting is remarkably different today from the one we likely envisioned during our college daysmdashregardless of which decade we each donned our cap and gown This gradual transformation of the accounting profession leads to two important questions related to competencies bull Which competencies are important for success inaccounting todaybull Were these competencies consciously developed as partof your accounting degree programme
We suspect that more than a few of you would answer ldquonordquo to the second question Put another way our profession may be facingmdashmore so than at any time in the pastmdasha ldquocompetency crisisrdquo that is a gap between the competencies needed for professional success and those taught in our college classrooms today We propose a three-pronged strategy or ldquogame planrdquo for overcoming this competency crisis and in turn better preparing accounting graduates for the challenging world they will face First all of us accountants need to understand the changes that have already taken place in our profession and perhaps more importantly anticipate the changes that are on the horizon Second we need to educate ourselves and future generations of accountants so that as a collective group we can deliver the expanding set of competencies demanded in todayrsquos dynamic organisational
contexts Third as professional organisations and as individuals we need to think beyond ourselves by asking How can I (or we) help the accounting profession address the competency crisis
A Shift Toward Integrated ThinkingMany articles and white papers have been written that describe in detail the changes that have occurred in our profession over the last few decades but for our purposes wersquod like to distill these changes down to one crucial idea How does the accounting function add value to an organisation Accountants have evolved from support-oriented personnel who hand off information to others who actually make decisions into business partners who ldquohave a seat at the tablerdquo with managers
By peter C Brewer James E Sorensen CpA CgMA and david E Stout
47wwwthecfomecom
1048576bull What regulatory risks mayaccompany the proposal
1048576bull What social and environmentalfactors will we face if for example the proposal requires investing in overseas operations
1048576bull What types of employeeresistance may arise if we implement the proposal and how will we overcome the root causes of any such resistance
1048576bull Can and how should we valuefuture options associated with the proposal such as expanding or contracting the investment over time as new information becomes available
1048576bull Should we use debt or equity tofund the proposal
In short accountants have evolved to become integrated thinkers who enable EPM by partnering with managers across the organisation to add value Yet as EPM has gradually become the centrepiece of our professionrsquos value proposition accounting education hasnrsquot done enough to embrace it To overcome this gap wersquod like to further suggest that the concepts of competency integration and EPM need to come ldquofront and centrerdquo as we move forward in educating the next generation of successful accounting practitioners
Accounting Education No Longer on the SidelinesRecently a task force consisting of members of IMAreg (Institute of Management Accountants) and members of the Management Accounting Section (MAS) of the American Accounting Association (AAA) addressed the competency issue How should accounting education change fundamentally to help close the competencies gap The efforts of the task force led to
cash flows and how to apply discounted cash flow (DCF) decision models such as net present value (NPV) is of foundationalmdashsome might say critical mdash importance But integrated thinkers draw on an understanding of organisational strategy coupled with a broader set of competencies (beyond what might be considered technical or foundational knowledge) when making these types of decisions For example they consider how behavioural issues may influence the capital investment decision-making process Perhaps the financial estimates contained in the NPV analysis are too optimistic because the manager who prepared the numbers has a vested interest in seeing the project approved Decision makers also need to consider issues such as leasing vs buying a capital asset and the corresponding impacts on the financial statements and ratios that are tracked by investors and lenders What nonfinancial factors are associated with the proposed investment Add in the tax consequences of capital investment decisions coupled with the need to maintain internal control over any new business processes tied to these decisions and the need to think in an integrated fashion across a variety of accounting competencies becomes apparent
Furthermore becoming a true business partner with managers across the organisation requires more than simply integrating various accounting competencies It also means thinking like a business manager or a chief executive officer (CEO) Returning to the capital budgeting example an integrated thinker will ask questions such as
across the organisation Together they formulate and plan strategies then participate in collaborative decision-making processes that execute those strategies in a manner that adds stakeholder value Said another way accountants have evolved to become enterprise performance managers This shift in our orientation from a support function to an enterprise performance management (EPM) role has enormous implications for defining the determinants of success within our profession the most important of which involves becoming collaborators and ldquointegrated thinkersrdquo Take for example a common but important business decision process capital investment analysis Certainly technical knowledge regarding how to estimate relevant after-tax
48 wwwthecfomecom
expanding capital budgeting discussions to include financial statement impacts tax consequences and internal control issues integrates topical coverage across the External Reporting and Analysis Taxation Compliance and Planning and Assurance and Internal Control competencies shown in Figure 1
Third accounting curricula can incorporate a broader set of management competencies For example evaluating capital investment proposals from the perspectives of change management (Leadership) social and environmental issues (Ethics and Social Responsibility) regulatory concerns (Governance Risk and Compliance) and capital structure (Additional Core Business Competencies) brings a CEOrsquos perspective to the decision-making process
Fourth accounting curricula should include foundational competencies such as proficiency with spreadsheets and written and oral communication In the context of capital budgeting this may include asking students to use Microsoft Excel to perform a sensitivity analysis and then to present their findings to the entire class
Working to Fix the ProblemAt this point although you may agree with us that therersquos a competency crisis within the accounting profession you may be wondering What does this have to do with me What can my organisation do to help address this so-called competency crisis The answer a lot Practice partners and academic partners can help the accounting profession overcome the competency crisis That said letrsquos take a closer look at the role of practice partners first
improvement) and accounting competencies (external reporting and analysis planning analysis and control taxation compliance and planning information systems assurance and internal control and professional values ethics and attitudes) Of critical importance to the framework is the assumption that the set of competencies contained in Figure 1 would be developed and integrated over time through a blend of formal education (including continuing education) training and job experience
What levels of integrationmdashon the road to developing integrated thinkers in accountingmdashare possible First accounting educators can integrate within a single accounting competency So referring back to our capital budgeting discussion teaching computational models such as NPV analysis coupled with a review of various behavioural issues associated with capital investment decisions would be an example of integrating within the Planning Analysis and Control competency listed in Figure 1
Second professors can integrate across accounting competencies For example
a recently published article that contains a proposed framework for accounting education reproduced here as Figure 1 The framework is general in the sense that itrsquos meant to apply to all accounting students not subgroups based on career specialisation such as tax assurance services corporate finance and the like Itrsquos based on the idea that accounting educators can better prepare students to deliver our professionrsquos EPM value proposition through integrated competency-oriented curricula (For more see ldquoFocusing Accounting Curricula on Studentsrsquo Long-Run Careers Recommendations for an Integrated Competency-Based Framework for Accounting Educationrdquo in the May 2014 edition of Issues in Accounting Education)
A glance at Figure 1 reveals three levels of competencies foundational competencies (communication ability to leverage technology and analytical thinking and problem solving among others) broad management competencies (including leadership ethics and social responsibility and process management and
Proposed Competencies-based Framework for Accounting Education
FOUNDATIONALCOMPETENCIES
ACCOUNTING COMPETENCIES
BROAD MANAGEMENT COMPETENCIES
leadership
ExternalReportingamp Analysis
PlanningAnalysis
amp Control
TaxationComplianceamp Planning
InformationSystems
Assuranceamp InternalControl
ProfessionalValues Ethics
amp Attitudes
Communication
Quantitative
Interpersonal
Technological
Analytical Thinking ampProblem Solving
Ethics amp SocialResponsibility
ProcessManagement ampImprovement
GovernanceRisk amp
Compliance
AdditionalCore BusinessCompetencies
Although you may agree with us that therersquos a competency crisis within the account-ing profes-sion you may bewondering What does this haveto do with me
A practice partner should be or become a CMAreg (Certified Management Accountant) maintain professional certification by completing required Continuing Professional Education (CPE) hours and regularly read the IMA publications Strategic Finance and Management Accounting Quarterly
In addition there are a number of excellent resources that deal with topics covered in this article and that IMA makes available to its members
Strategic Finance PowerPacks(wwwimanetorg SFPowerPacks) These are resources focused on contemporary topics similar to those discussed earlier Current offerings include Risk Management Strategic Planning IT Skills amp Software and Internal Controls Each PowerPack includes a combination of resources such as research studies articles and links to webinars
Statements on Management Accounting (SMAs)(wwwimanetorgresources and_publicationsresearch_ studies_resourcesstatements on_management_accounting aspx) SMAs represent monographs classified into one of the following six categories Leadership Strategies and Ethics Technology Enablement Strategic Cost Management Business Performance Management Finance Governance Risk and Compliance and the Practice of Management Accounting Multiple items are available within each category For example the Practice of Management Accounting category includes (among other items)
49wwwthecfomecom
the Definition of Management Accounting and Implementing Shared Service Centres
Research Studies (wwwimanetorgresources_and_publicationsResearch_Studies_and_ResourcesAll_reportsaspx) The ldquoThoughtLeadershiprdquo section of IMArsquos website includes research covering a broad range of issues classified into seven categories For example under the ldquoGlobal Business Environmentrdquo category the following two research reports are available ldquoKey Differences Between IFRS and US GAAP Impact on Financial Reportingrdquo and ldquoCosting Methodologies and Cost Management Practices in the Peoplersquos Republic of Chinardquo
IMA Leadership Academy (www imanetorgprograms_events leadership_academyaspx) As described on the IMA website this programme is designed to assess a memberrsquos leadership status enhance that individualrsquos skills (principally through monthly webinars) and recognise leadership achievements These benefits are free to members
How You Can Make a Bigger Impact In addition to attending local regional and national IMA meetings consider inviting a small group of students to each chapter meeting This could be a wonderful (and relatively low-cost) option for mentoring aspiring accountants and finance professionals providing networking opportunities and introducing students to cutting-edge issues regarding the practice of management accounting Joining a university accounting
advisory group may be another way to influence the development of EPM in that institutionrsquos curriculum design
Other methods to enhance EPM in your organisation include (1) forming user groups within your company your local IMA chapter or your industry to review and share EPM experiences (2) encouraging advancement in the firm to be linked to EPM proficiency (3) focusing your companyrsquos recruiting efforts on candidates who display a background in andor understanding of EPM and (4) organising cross training within your company to enhance a mutual understanding of each otherrsquos respective roles
Finally visit the Competency CrisisTM website (http competencycrisisorg) set up by IMA to unite the accounting and finance constituencies professionals students employers academics and professorsmdashand explore competency issues through the lens of each stakeholder group The site is designed to ldquoencourage a discourse spur action and create a community dedicated to resolving the serious crisis of competency present in the professionrdquo Special sections of the website are devoted to educators students and employers professionals
Our Partners in Education Much like a practice partner an academic partner should be or become a CMA maintain professional accreditation by completing CPE hours and regularly read IMArsquos publications
Academic members of IMA can pursue and actively promote the CMA programme at their respective institutions
50 wwwthecfomecom
IMArsquos website contains helpful resources including an exam content overview content specification outlines for each of the two parts of the CMA exam and learning outcome statements The current exam covers some of the professional competencies represented in Figure 1 A summary of changes to exam content which will be effective in January 2015 is provided on the IMA website in News amp Media Relations which is located under ldquoAbout IMArdquo (See the press release dated March 24 2014) Other helpful resources include ldquoICMA Announces CMA Exam Content Changesrdquo in the April 2014 issue of Strategic Finance as well as ldquoManagement Accounting Career Readiness Shaping YOUR Curriculumrdquo
These forthcoming changes are based on the most recent IMA study of the knowledge and skills needed by management accountants from the view of CFOs controllers and other accountingfinance professionals from around the world
Also consider taking a group of your students to the IMA Student Leadership Conference held each November The Conference provides excellent networking opportunities for you your students and practicing professionals Students can learn firsthand from Conference presenters the challenges and opportunities facing finance and accounting professionals today
Moreover if your institution doesnrsquot currently have an IMA Student Chapter consider forming one One of the authors of this article David Stout reinstituted the student chapter at his school (Youngstown State University) after travelling with a group of his students to the IMA
Student Leadership Conference in Cleveland Ohio Through an IMA Student Chapter on campus students are able to work closely with a sponsoring local IMA chapter and bring to campus speakers who are experts in a wide range of topics including those discussed earlier in this article Each year student chapters compete for an Award of Excellence (AOE) and recognition as an Outstanding Student Chapter In addition IMA student members are able to engage in networking activities leadership training mentoring and community service programmesmdashall through their local chapter
You also might consider volunteering to serve as a Campus Advocate In this role yoursquoll represent IMA in all major matters of interest to your students (scholarship opportunities starting a student chapter mentoring and the like) and to your institution (for example leveraging IMA resources to advance the relevancy of the accounting curriculum use of educational case studies published in the IMA Educational Case Journal and access to IMArsquos ethics curriculum)
And if you havenrsquot yet done this ask IMA to endorse your accounting programme (information is available at www imanetorgeducator_resources indexaspx) This programme is designed to identify business curricula that meet the quality educational standards required to prepare students to earn the CMA designation Endorsement is based on an analysis of the curriculum and topics covered on the two-part CMA exam Currently 12 programmes have been endorsed
Finally if your school has an IMA Student Chapter consider participating in the annual IMA Student Case Competition where students are asked to propose a solution to a real world problem (Cases are solicited each year by Raef Lawson IMA VP of Research and Policy and IMA Professor in-Residence) Finalists make their presentations at IMArsquos Annual Conference amp Exposition before a set of judges consisting of accounting faculty members and practitioners Each year a new case is published in the August issue of Strategic Finance for students to use for that yearrsquos competition
Working TogetherIn this article we have summarised the changes that have affected the accounting profession and provided a competencies-based framework for guiding accounting educators in responding productively to those changes As a management accountant you know that implementing change in any organisation let alone within an entire profession never comes easily To be successful in overcoming our professionrsquos competency crisis IMArsquos practice and academic partners will need to assume leadership roles in defining enterprise performance management as the cornerstone of the accounting professionrsquos value proposition
This article was orginally published in the August 2014 issue of Strategic Finance It appears here with the permission of The Association of Accountants and financial professionals in Business
We need to educate ourselvesand future generations of account-ants so that as a collec-tive group we can deliver theexpanding set of com-petenciesdemanded in todayrsquos dynamicorgani-sational contexts
THE POWERFUL AND THRIFTY OFFICE ALL-ROUNDERS
The new ECOSYS M3560idn series will astound you With their print speeds of up to 60 pages per minute they are among the most productive A4 bw multifunctionals on the market We nevertheless managed to keep their ecological footprint and total cost of ownership impressively low by using our well-known ECOSYS technology and equipping the devices with our renowned long-life components The result Not only less waste and lower maintenance costs but also less hassle for you and all your colleagues You will also greatly appreciate the many customisation possibilities of the devices equipped with KYOCERArsquos open solution platform HyPAStrade as it allows you to tailor the device to your needs So yes we are proud of our new range of MFPs and can hardly wait to share their numerous benefits with you
For more information please contactKYOCERA Document Solutions Middle East | PB Box 500817 DubaiUAE | Tel +9714 4330 412 | Fax +9714 4231 944KYOCERA Document Solutions Europe BV - wwwkyoceradocumentsolutionseuKYOCERA Document Solutions Inc - wwwkyoceradocumentsolutionscom
52
ACCAINTERVIEW
wwwthecfomecom
GLOBAL By ASSOCIATION
across the region from our key employers and learning provider partners to our active and growing student and member base I want to understand their challenges and priorities and how ACCA can work with them to help support the economic success of the region
What can a CFO gain from working with ACCAThe ACCA qualification is about complete finance professionals For CFOs it brings the technical knowledge vital to business success complemented with the strategic management skills and ethical competence crucial to an organisationrsquos success As an organization ACCA in the UAE brings CFOs access to that local and global network of peers and expertise along with our leading research and insights that help them to keep up to date on the issues that matter most
Are there any initiatives in place to leverage the recently announced partnership with AAA
How are the ACCArsquos many years of activity being applied to the Middle EastACCA has now had a presence in the UAE for well over a decade During that time we have established strong relationships across the Middle East epitomised by the recent signing of our Strategic Partnership with AAA As a national body in choosing to partner with ACCA they recognised the local and global perspective we bring We are continuing to work with students members and employers across the Middle East to build their networks knowledge and business success through events research and insights and access to a growing number of online resources
Which initial priorities are among your key aims upon joining the organisationrsquos efforts in the UAEIn the first few months I hope to build on the success of the team in the UAE My priority will be to meet as many of our key stakeholders
The Association for Chartered Certified Accountants (ACCA) provides its services across a number of international borders The recent announcement of Lindsay Degouve de Nuncques as the new head of the Associationrsquos UAE chapter further exemplifies the ACCArsquos reach based on her previous work in the UK Nuncques shares here what she brings to the Middle East and just how globalisation has driven her ascent
53
ACCAINTERVIEW
wwwthecfomecom
The strategic partnership with AAA is the first of its kind in the region Students who complete the UAECA qualification will be entitled to both the AAA and ACCA designations and ACCA members in the UAE will also be eligible to apply for AAA membership This is a very exciting development in the market and together AAA and ACCA will be working to deliver maximum value to all our stakeholders from this partnership As we launch the UAECA qualification this activity will start in earnest
Which key industries will you be spotlighting in the Middle East in the months aheadOur experience of working across all sectors and levels of organisations globally gives ACCA a unique insight into all types of industries We will continue to be working with employers across the spectrum in the months ahead to help them gain the insight and make the connections that drive businesses to succeed at whatever they do
ldquoThe ACCA qualification is about complete finance professionals For CFOs it brings the technical knowledge vital to business success complemented with the strategic management skillsrdquo
54
Islamic FinanceMARKET OUTLOOK
wwwthecfomecom
In its 10th instalment the Forum is hosted in Dubai as a direct result of the UAErsquos increasing importance in the world of global Islamic finance
THE WORLD ISLAmIC ECONOmIC FORUm LANDS IN DUBAI
In Dubairsquos continued quest for leading the world across a range of spectrums the Emirate accelerated its desire to become the worldrsquos leading hub for Islamic finance by hosting the 10th installment of the World Islamic Economic Forum (WIEF) Delegates from dozens of countries attended to take part in a three-day event held at Madinat Jumeirah which rests alongside Dubairsquos gleaming coastline Held under the patronage of His Highness Sheikh Mohammed Bin Rashid Al Maktoum the
Vice President and Prime Minister of the UAE and Ruler of Dubai key speakers included The Honorary Dr Zeti Akhtar Aziz Governor of the Central Bank of Malaysia HE Kairat Kelimbetov Governor of the National Bank of Kazakhstan The Honorary Datorsquo Sri Mohd Najib Tun Abdul Razal Prime Minister of Malaysia and HE Xavier Bettel Prime Minister of the Grand Duchy of Luxembourg
Launched in 2006 in Malaysia WIEF has grown in tandem with the increased
Delegates from dozens of countries attended WIEF to take part in the three-day event
sophistication and reach of Islamic finance After a successful event in London in 2013 amidst increased interest in Islamic finance across Europe WIEF relocated to Dubai where the local business structure is keen to host halal finance
Said Hamad Buamim President and CEO Dubai Chamber of Commerce and Industry co-organisers of the event ldquo[The forum] is the start of a new chapter of cooperation between Dubai and the world as part of
55
Islamic FinanceMARKET OUTLOOK
wwwthecfomecom
Dubai Capital of Islamic Economy visionhellipestablishing a unified regulatory authority to provide the framework for standards across halal industries will significantly accelerate growth Likewise we need to see increased cooperation and partnership between the public and private sectors This is already happening with great success here in Dubairdquo
The order of global cooperation needed to facilitate growth across the Islamic finance world was more than apparent at WIEF based on how many differing nations were represented at the event The exhibitorrsquos hall was populated with a number of key Malaysian stands representative of the Southeast Asianrsquos ranking as the global leader in Islamic finance Also present were companies from Saudi Arabia also a key locality in the worldrsquos halal industries An interesting yet prescient presence was of attendees from South Korea a nation which is eager to participate in Islamic finance and will be hosting the WIEF Pyeongchang Roundtable in December 2014
ldquoGangwon is a province located in Korea which is very interested in new business opportunities Wersquove realised the strength of the Islamic economy and have come here with many different companies The first type is based in real estate investment We also have companies which want to export their products to the Islamic economy based on their halal qualities And Gangwon will also be hosting the Winter
ldquoKorea is very interested in the strength of the Islamic economy and wants to export its products based on their halal qualitiesrdquo
56 wwwthecfomecom
$247trillionProjected value of halal products industry in lsquo18
125Muslim percentage of global tourism expenditure
STAT FACTSOlympics in 2018 and are presently seeking investments for this as wellrdquo said Seong-hun Kim a member of Gangwon Province Governmentrsquos Export Support Team
Dubai proved to be an excellent place for the event considering how well the UAE is able to so regularly corral international cooperation A key sign of this was witnessed recently when Luxembourg now considered the third most important base for Islamic finance globally opened a finance office in Dubai International Finance Centre The European nation also opened a euro200 sukuk earlier this year which was quickly oversubscribed
The prime minister of Luxembourg offered the WIEF audience a riveting speech which detailed just how international the Forum has become whilst encouraging more of the world to support the growing influence of Islamic finance
Said Bettel ldquoWe need to innovate more economic partnerships for growth We sometimes need to reengineer relationships but also have to make sure these relationships remain sustainable Growth in one country also brings growth to others as long as this is guided by free market initiatives Free trade and free flow of capital combined with innovation leads to prosperity We have all gathered here in Dubai to explore the future of Islamic finance and Luxembourg is also a pioneer of Islamic finance in Europe The Islamic financial sector has a major role to play in continued global growthrdquo
The Islamic Corporation for the Development of the Private Sector (ICD) is based in the Kingdom of Saudi Arabia where it manages an international fund worth $2 billion half of which is available for subscription With shareholders in more than 50 countries and a sovereign sukuk fund recently launched in West Africa the ICDrsquos CEO Khaled M Al Aboodi attended WIEF this year excited to participate in the global event
How does the ICD approach its attendance at the World Islamic Economic ForumI think the Forum is one of the best places for discussing the financial issues of the OEC member countries It has been around for ten years and has grown to become a very important platform for discussion Wersquore here to attend and listen but also to network Itrsquos a great networking platform and a place to share views whilst letting everyone know what we have to offer
How has Islamic finance changed over the yearsOf course itrsquos growing in a large scale Some of it actually needs more support particularly with respect to regulatory frameworks Wersquore trying to partner with many international organisations like the IMF to try to provide support to countries to adapt regulation for Islamic finance Sukuk issuance is one of the biggest issues that needs to be addressed because there is a huge amount of liquidity in this arena Due to issues related to regulation sukuk issuance can be costly But with the regulation we are confident it will be on a level playing field with other forms of finance Compliance is a major area where more work can be done The Forum started with a roundtable on sukuk which shows how helpful WIEF has been over the years
What type of work does ICD do internationallyICD helped the government of Senegal to issue the first sovereign sukuk This was successfully issued last summer Progressing in this manner is something wersquod like to see continue across West Africa in order to utilise its resources with aiding development in the region in mind
QampA WITH KHALED M AL ABOODI CEO OF ICD
Islamic FinanceMARKET OUTLOOK
OFFICIAL SPONSORS
ENDORSED BY OFFICIAL HOST OFFICIAL
COMMUNICATIONS PARTNER
MEYDAN HOTEL DUBAI UAE19 - 20 NOVEMBER 2014
WOMENOMICSthe next emerging market
TAKE PART in making change happen UNITE with business and through leaders from across the globe
PARTICIPATE to the expansion of a modern and inclusive economy
58
Gautam PradhanINTERVIEW
wwwthecfomecom
SUCCESS BEyOND BOUNDARIES
in other management roles such as strategic decision making mentoring and leading efficiency and productivity across a range of other departments and functions as well as a being a catalyst in ensuring that the boardrsquos vision for the organisation is achieved
A significant percentage of NMDCrsquos shares are owned publicly Does the CFO play a role in balancing the interests of the shareholdersAs a CFO balancing the shareholdersrsquo interests is definitely part of my responsibility In order to achieve this goal there needs to be a careful evaluation of each decision while keeping the short-term and long-term goals of the company in mind At NMDC we actively implement a system where we utilise a balance scorecard as a method of ensuring that all our primary objectives are met yet at the same time continuously enhance our relationships with our shareholders
NMDC has completed various projects across the Emirates Are there plans to move abroadAs NMDC moves towards becoming an international player our strategic expansion plans are focused in areas within the GCC region and India In line with this strategy we opened
How has a company with such a unique set of deliverables grown so consistently over the yearsOur organisation strongly believes that the core to our strength is the people process and equipment A strategic decision led by our Board of Directors and the senior management has been implemented that required us to consistently invest in these three aspects to help expand our business beyond the territorial boundaries of the UAE and at the same time enhance what we can offer which is relevant to these segments We attribute our success to the efforts which every employee contributes We also strongly believe in the ldquoWe can make it happenrdquo principle The management raises the index of performance while setting SMART objectives within the organisation and encouraging the employees to achieve them
How has your position as the CFO changed over NMDCrsquos 35 years of operationAs the market evolves and business dynamics change my role as the CFO has become complex and more challenging A few years back I was mainly focused on bookkeeping accounting and other financial responsibilities such as arranging bank facilities But moving forward I became more involved
The UAE is progressively becoming a hub for world-class infrastructure The country has duly impressed the rest of the globe with noteworthy land developments showcased across the emirates Among the remarkable landscapes found in Abu Dhabi are the Corniche Beach Yas Island and Sir Baniyas Island Behind these successful projects is NMDC the dredging division of Abu Dhabi National Oil Company (ADNOC)
In an interview with CFO Magazine Gautam Pradhan Chief Financial Officer NMDC shares an exclusive look into the companyrsquos international blueprint for growth and his dynamic role as a strategic leader of one of the best in dredging and marine construction in the Middle East
59
Gautam PradhanINTERVIEW
wwwthecfomecom
branches in Qatar Bahrain Oman and India This has paid rich dividends recently as projects of strategic importance are bagged in Qatar and Bahrain Furthermore NMDC (UAE) has recently played a key role as a leader of an international consortium with Royal Boskalis Westminister (Netherlands) and Jan De Nul Group (Belgium) for the awarding of the Suez Canal Dredging project in Egypt Moving forward we have devised a strategic approach that will enable us to play a key role in the development of Indiarsquos marine infrastructure
What are the global strategies that are part of the CFOrsquos responsibilitiesAs CFO understanding the macro economic scenario risk analysis and mitigating those risks are all a part of my responsibilities I also have to have a proper comprehension
ldquoA few years back I was mainly focused on financial responsibilities moving forward I became more involved in strategic decision making mentoring and leading productivityrdquo
Gautam PradhanINTERVIEW
60 wwwthecfomecom
of the challenges faced by the company in terms of dealing with foreign contracts direct and indirect taxes and hedging and managing the integration process These are essential to enhance shareholders wealth and mitigate undue risk
How significant is accountancy for NMDC in its operations Why exactlyAccountancy is the lifeline of any company it does not only record the finances it also reflects the health of the organisation The MIS reports analysis trends and statistical information go a long way toward effectively providing
the diagnostic approach essential for the company
How have NMDCrsquos environmental activities helped the companyrsquos bottom lineNMDCrsquos work is well-synchronised with our environmental activities and specifically with nature Our activities are closely linked to sand and water and we view such activities with strategic importance Projects such as increasing water supply to mangroves and beach nourishment help us support the environmental activities while adding to our bottom line
ldquoAccountancy is the lifeline of any company it does not only record the finances it also reflects the health of the organisationrdquo
A burgeoning slice of Abu Dhabi coastline
The largest business awards
in the GCC30th November Dubai
nominate now at wwwstarsofbusinessawardscom
Stars of Business has become an iconic awards brand like no other in the region It recognizes the very best SMEs across 26 business categories Itrsquos universally respected as scientifically assessed and unimpeachably judged
327000 SMEs across the UAE$234 billion estimated total revenue of the SME sector4974 Awards entries in 20131856 Individual company applicants
Presenting Partner Strategic SME Partner Gold Sponsor Gold Sponsor VIP Hospitality Partner Supporting Partner
Trade Facilitator PartnerTrade Credit PartnerLogistics Partner
Institutional Partner Institutional Partner Event Partner
OrganiserPublisherMedia Partner Media PartnerPort Authority Partner
62
David Allen INTERVIEW
wwwthecfomecom
What went into completing your bestseller ndash Getting Things Done (GTD)After twenty years of researching developing and implementing a methodology for achieving stress-free productivity based upon
thousands of hours spent desk-side with
some of the best brightest and busiest people in the world I decided to write the manual for it Thatrsquos what Getting Things Done is
What are the five phases of mastering workflowIn order to get
any situation under control so
you can focus you will utilise these five
steps Whether yoursquore managing your kitchen
or your company you will need to collect and capture what has your attention clarify what if anything to do about it organise it according to what it means to you review and reflect upon it in relation to
Todayrsquos evolving CFO is often caught between the world of business set-up generating revenue managing employees and building strong company infrastructure When can things actually get done What can one do to boost productivity and master workflow World-renowned business coach David Allen has the answers
PRODUCTIvITy PRINCIPLES WITH
DAvID ALLEN
63
David Allen INTERVIEW
wwwthecfomecom
those are greatly subvertedHow does one maintain a fair balance between the time spent planning and actually getting things doneYou simply need to spend just the amount of time you need to to trust that what you are getting done is the right thing to be getting done in the moment It takes as long as it takes to get to that point Why would you do anything less
How can one apply your core productivity and workflow principles to todayrsquos technologically driven environmentThe principles and their techniques are system-independent Whether you have meaningful input from the Internet your smartphone or a conversation in the hall you must engage with it equally Technology has simply increased the flow of input and ease of distraction in your world
There is a lot of talk about how connected wersquove become and how connectivity is driving tremendous business growth Does connectivity actually come with its fair share of downsides
Connectivity is obviously a two-edged sword We can have intimate productive and creative interaction instantly with someone on the other side of the world and we can just as easily be distracted and seduced into those engagements when they may not be the best use of our attention and resources Donrsquot shoot the medium Itrsquos all simply bringing attention to your clarity of direction and priorities or lack thereof
Could you share a few quick tips with our readers to instantly boost productivityWrite everything down that has your attention Decide the very next actions required to get closure on all of them Any next actions that require less than two minutes do instantly Park reminders of everything else somewhere that yoursquoll see when you can do something about them
We are currently facing a massive information overload What are some basic principles you could suggest to mentally organise such large amounts of dataConstantly ask yourself Where am I going Whatrsquos important and rewarding to me Is this information
the whole and then engage your resources with intuitive trust
As a CFO how can you transfer efficient workflow management skills to your employees Itrsquos very difficult to legislate processes for individuals ndash you can really only hold them accountable for their results But if you are managing your own commitments and intersections with them with integrity and rigour it will automatically force your team to ldquostep up to the platerdquo in their own behaviours in order to meet your standards If you request their complete list of their company projects and they canrsquot produce it thatrsquos a sign theyrsquore not in control If they make a commitment to you that they havenrsquot kept thatrsquos data about their performance GTD is simply about good operational business practices
With so many planning and organising activities in your methodology is there a risk of losing spontaneity as a strategistThe reason for these best practices is to optimise freedom creativity and spontaneity Without them
ldquoBut if you are manag-ing your own com-mitments and intersec-tions with them with integrity and rigour it will automatical-ly force them to ldquostep up to the platerdquo in their own behaviours in order to meet your standardsrdquo
64 wwwthecfomecom
supporting that Park whatever you find potentially meaningful somewhere that is easy to access when needed
Being an entrepreneur is a non-stop job How do you ensure that you have an adequate work-life balance Pay attention to what has your attentionmdashwith regard to anything Your health relationships career finances etc Notice when something might be ldquooffrdquo and make good decisions about what you need to do to get it back ldquoonrdquo again
Does your work teach people to be efficient or effective In essence they are the same thing Effective choices are generated by efficiency on a higher level If you want to implement strategy most effectively it demands utilising your resources optimally which is efficiency
Does motivation actually improve quality of work or purely quantityDepends on the focus of the motivation You can be motivated to work harder and you can be motivated to work smarter
What is your favourite productivity mantra that
you implement in your day-to-day lifeUsing my own in-basket and note-taking devices to capture potentially meaningful and valuable ideas and soon afterwards clearing all of them out by deciding what to do about them if anything
Your books seminars and other work inspires many individuals and businesses Who is your personal inspiration or role model I have many about many different aspects of my life The only person though that I ultimately trust as my best guide is my higher self which I try to access as frequently and clearly as I can
Finally what advice would you give to current business owners and aspiring entrepreneurs looking to gain complete control of their life and businessCapture what has your attention clarify what you need to do about it to get it off your mind organise the inventory of all your commitments at all levels review and reflect on all of that regularly relax and trust your inner wisdom to engage with the most appropriate thing in the moment
ldquoIf you want to implement strategy most effectively it demands utilising your resources optimallyrdquo
David Allen INTERVIEW
APPSTECH TALK
wwwthecfomecom 65
mAxImISE BUSINESS lsquoON-THE-GOrsquo WITH THESE HANDy APPS
ipAd SpECIAL
SAMSUNG UNvEILS GALAxY NOTE EDGE
Network
AP
Display
OS
Camera
Video
Audio
Additional Features
GoogleMobile Services
Connectivity
Sensor
Memory
Dimension
Battery
The availability of service may differ by country All functionality features specifications and other product information provided in this document including but not limited to the benefits design pricing components performance availability and capabilities of the product are subject to change without notice or obligation
Samsung Galaxy Note Edge Product Specifications
25G (GSM GPRS EDGE) 850 900 1800 1900 MHz3G (HSPA + 42Mbps) 850 900 1900 2100 MHz4G (LTE Cat 4 15050Mbps) or 4G(LTE Cat 6 30050Mbps)May differ by country and carrier
27 GHz Quad-Core Processor
56 inch (1419mm) Quad HD+ Super AMOLED (2560 x 1440 + 160)
Android 44 (KitKat)
Rear Facing 16 Mega pixel Auto Focus camera with Smart OISFront Facing 37 Mega pixel camera with f19Rear Facing Camera HDR (Rich tone) Selective Focus Rear-cam Selfie Beauty face Virtual Tour Shot ShotampMore Dual CameraFront Facing Camera Selfie Wide Selfie
Codec H264 MPEG-4 H263 VC-1 WMV7 WMV8 Sorenson Spark MP43 VP8 Recording amp Playback up to UHD
Codec MP3 AACAAC+eAAC+ WMA AMR-NBWB Vorbis FLAC()() Ultra High Quality Audio (~192KHz 24 bit) support
Multi WindowUltra Power Saving ModeVoice Recorder (Normal Mode Interview Mode Meeting Mode Voice Memo)Download BoosterS Health 35Dynamic Lock ScreenBriefingEdge screen UX Revolving Interaction Immersive apps(Camera Video S Note)Ticker board Express me Quick Tools Night Clock etc
Chrome Drive Photos Gmail Google Google+ Google Settings Hangouts Maps Play Books Play Games Play Newsstand Play Movie amp TV Play Music Play Store Voice Search YouTube
WiFi 80211 abgnac (HT80) MIMO PCIeGPS GLONASS BeidouNFC Bluetoothreg v 41 (BLE ANT+)IR LED (Remote Control) USB20 MHL 30
Gesture Accelerometer Geo-magnetic Gyroscope RGB IR-LEDProximity Barometer Hall Sensor Finger Scanner UV Heart Rate Monitoring SpO2 (Dependent on market)
32 64 GB Internal memory + microSD slot (up to 128GB)3GB RAM
1513 x 824 x 83mm 174g
Standard battery Li-ion 3000 mAh Fast Charging (Adaptive Fast Charging amp QC20)
wwwthecfomecom66
APPSTECH TALK
AIR DISPLAY
SQUARE REGISTER
Using this app you can connect your iPad to your computer and use it as an additional screen While working on an important presentation or sales proposal you can extend or mirror your computer screen on your iPad This app is compatible with both Mac and Windows computers Note that to use this feature you have to install Air Display on your iPad and a separate free app on your computer The computer and iPad also need to be on the same Wi-Fi network in order to work in-sync
For Mac users the app allows you to connect to up to four screens ndash all at the same time
Apart from the ability to convert your iPad into a wireless display whatrsquos also attractive about this app is that it allows you to control your computer wirelessly using your iPad
This fantastic application can serve as a mobile point of sale for your business It allows you to accept credit card payments ndash including Visa MasterCard Discover and American Express A transaction fee of 275 is charged for every time you swipe a card The sale amount is transferred to your account within two working days
Once you download the app you can sign up and register for a unique card reader solution called the lsquoSquare Readerrsquo (this is free) Square Reader encrypts all card details and ensures that the transaction is secure Once you receive your Square Reader you can connect it to your device and are all set
The application also offers added features such as transaction history connecting to a receipt printer creating employee logins and more
AED 3699
PRICE
Free
PRICE
wwwthecfomecom 67
APPSTECH TALK
DOCUSIGNHave you ever been in a situation where your employees need you to urgently sign a contract but arenrsquot able to physically reach you in time DocuSign solves this problem with its easy-to-use eSignature feature In three easy steps you can sign important documents and securely send them to your intended recipient
First you have to import the document to your device ndash this could be from Dropbox Google Drive or another select applications You then place your signature or any other important legal information you need to include such as initials Once you have finished working on the document send it back via e-mail
Whatrsquos particularly great about DocuSign is the great emphasis it puts on security ndash so that users donrsquot have to worry about getting into any legal trouble
Use DocuSign and never miss a deadline again
Free for basic version
PRICE
MPAYAn initiative by the Dubai eGovernment Department mPay is a simple application that allows you to make important payments Once yoursquove signed up and entered your payment details you are good to go You can pay your Dubai Electricity and Water Authority (DEWA) bills Etisalat utility bills Dubai Police fines Recharge SALIK and much more
A handy feature is its lsquoauto-rechargersquo option which you can use to set automatic payments
Free
PRICE
Opinion CIMAPERSONALITIES
wwwthecfomecom68
NEW HORIZONSBy geetu Ahuja Head of gCC at CIMA
The days of the traditional accountant working within a small community in a small town in a small market have long gone CFOs are now being referred to as Chief Frontier Officers as they travel from market to market overseeing their offices overseas This new expanded role has distinct advantages for both the company and the CFO who gain new skills and new insights from foreign branches a single hand at the helm of many markets provides business perspectives on a global scale and benchmarks across the board
On a personal level working abroad also has huge importance Robert Walters the specialist professional recruitment consultancy recently conducted a survey
of almost 2200 employees across a variety of professions exploring a number of topics which ranged from working practices and attitudes to careers The results highlighted some notable trends particularly for finance professionals
In career progression for example the survey showed that 50 of all accountants see working abroad as either lsquoessentialrsquo or lsquoextremely usefulrsquo to furthering their prospects more than banking professionals lawyers and IT workers ndash a strong indication of how accounting professionals are thinking about their future either within their existing company or with opportunities elsewhere
Accountants with globally recognised qualifications obviously have a greater chance of gaining some experience abroad and the lsquoGen Yrsquo professionals in particular seem ready to pack their bags In a CIMA study conducted in the UK last year over a third of those seeking employment in the
next two years will prioritise opportunities abroad over those in their home countries many of them enticed by the career incentives offered by the Middle East
How quickly can they land what seems to be their dream job What are the realities It may be that the move is simply from one branch to another and the only significant difference is a view from the window but for those expanding rather than changing their roles we have seen a very real need for a depth and breadth of knowledge never needed before
As geographical boundaries are pushed ever-wider a CFOrsquos responsibilities are pushed with them For many finance executives the understanding of their own patch of land is no longer enough they now have to be aware of foreign markets up to speed with foreign trends and au fait with foreign laws There is a need for a new commercial awareness in geography as well as philosophy
As geographical boundaries are pushed ever-wider a CFOrsquos responsibilities are pushed with them
John vargheseQampA
wwwthecfomecom 69
BUSINESSSET UP YOUR
IN THE UNITED ARAB EMIRATES
TO
WAREHOUSESOFFICES INDUSTRIAL LANDFLEXI
Quick and easy company set-up
Less than an hour drive from Dubai
Complete cost-effective packages including licences and facilities
100 foreign ownership
Zero income and corporate taxes
Eligibility for UAE Residence Visa
BUSINESS SET-UP SOLUTIONS STARTING FROM AED 15000 (USD 4000)
RAK FREE TRADE ZONE PROVIDES
RAK Free Trade Zone Authority - Government of Ras Al KhaimahUAE (Ras Al Khaimah) Tel +971 7 2041111 (Dubai) Tel +971 4 7041875 (Abu Dhabi) Tel +971 2 6994888
Germany (Cologne) - Turkey (Istanbul) - India (Mumbai)
Call +971 7 204 1111 Visit wwwrakftzcom Join rakftz
CONTENTS
Infographic UAECA CFO Roundtable India8 10 12 14CFOs around the world
A new accountancy certification reaches the Emirates
Citi Commercial Bank hosts a discussion in Dubai
A closer look at the investment prowess of the subcontinent
18 22
26
DUBAI SILICON OASIS
Procurement
Saed AlSharid
The UAErsquos premiere tech freezone as overseen by its top finance executive
AT Kearney delivers a report aimed at CFOs
ldquoTrying to do business while not understanding accounting is like getting into the ocean and not knowing how to swim you will drownrdquo
ldquoPeople talk about strategybut getting the numbers right must always be the number one thingrdquo
CONTENTS
46
52
54
66
58 62 68
CompetencyCrisis
lindsay Degouve de Nuncques
WIEF
TechTalk
NMDC David Allen opinion
The Institute of Management Accountantsaddresses a looming gap
A new face heads up the ACCArsquos UAE chapter
The World Islamic Economic Forum sets up in Dubai for its 10th anniversary
The best iPad apps for the
global finance professional
Shaping the worldrsquos coastlines as seen by the CFO
The business coach and best selling author offers more of his recipe in a QampA
Geetu Ahuja of CIMA on the essentials of globalisation
Emerging markets CIMA ERP Private Equity30 34 38 42A how to for investment in the worldrsquos most promising localities
The Institute revamps its reknowned syllabus
IT business solutions are evolving in line with the role of Chief Financial Officer
Buyout firms demand more stringent financial data
ldquoOur qualification is about complete finance professionalsrdquo
38
4234
98
CFO InfographicPROJECTIONS
wwwthecfomecomwwwthecfomecom
CFO InfographicPROJECTIONS
Optimism
Risks and opportunities
Growth and expansion
CFOGLOBALISATIONINFOGRAPHIC
SOURCES Michael Page International Global CFO Barometer 2012 by Michael Page International Deloitte CFO Signals ndash Q1 2014 Deloitte CFO Signals Q4 2013 Robert Half CFO Insights
4738
44
36
55
72
39
26
42
20
95
71
35
68
CFOs express rising
optimismof CFOs are
optimistic about financial prospects
of CFOs believe its a good time to take greater risks
of CFOs believe financial risk management policies are not significantly aligned to cover market risks
see new product or service launches as a
key growth opportunity
40are hopeful about organisational growth opportunities
of CFOs are now more optimistic than in the last quarter
of CFOs are now more involved in risk management
of CFOs will pursue organic expansion
consider pricing pressures as the top growth inhibitors
are positive about the future state of the Indian economy
of CFOs are more optimistic than
last quarter
of CFOs willing to take greater risks
believe international expansion will play a
major role in in business development
expect MampA activity to rise over
the next year
rate this economy as good or very good
expect a major merger or acquisition
NORTH AMERICA
INDIA
MIDDLEEAST
SOUTHEASTASIA
UK
PACIFIC
WOMEN AS CFOS ( OF FEMALE CFOS IN OF RESPONDENTS)
( of respondents surveyed)
of CFOs spend significant amounts of time as strategists for company growth
76
AFRICA
AUSTRALIA
5 18
Lowest Highest
of CFOs with total annual compensation including bonus and benefits of over US$255000
of CFOs younger than 35 years old when they attained their position
Europe
Europe
13
Asia
14
SouthAmerica
29
Pacific
30North
America
49
49
NorthAmerica
21
SouthAmerica
Asia
43
31
Pacific
30
In North America 39 of CFOs are older than 50 years
On average CFOs worldwide attain
their position between the ages
of 30 and 39
of CFOs are confident about credit availability in the future
4831
73of CFOs feel that the finance function will play a larger role in their companyrsquos development and execution of business strategy
51of CFOs are satisfied with the performance of their finance function
56
98
CFO InfographicPROJECTIONS
wwwthecfomecomwwwthecfomecom
CFO InfographicPROJECTIONS
Optimism
Risks and opportunities
Growth and expansion
CFOGLOBALISATIONINFOGRAPHIC
SOURCES Michael Page International Global CFO Barometer 2012 by Michael Page International Deloitte CFO Signals ndash Q1 2014 Deloitte CFO Signals Q4 2013 Robert Half CFO Insights
4738
44
36
55
72
39
26
42
20
95
71
35
68
CFOs express rising
optimismof CFOs are
optimistic about financial prospects
of CFOs believe its a good time to take greater risks
of CFOs believe financial risk management policies are not significantly aligned to cover market risks
see new product or service launches as a
key growth opportunity
40are hopeful about organisational growth opportunities
of CFOs are now more optimistic than in the last quarter
of CFOs are now more involved in risk management
of CFOs will pursue organic expansion
consider pricing pressures as the top growth inhibitors
are positive about the future state of the Indian economy
of CFOs are more optimistic than
last quarter
of CFOs willing to take greater risks
believe international expansion will play a
major role in in business development
expect MampA activity to rise over
the next year
rate this economy as good or very good
expect a major merger or acquisition
NORTH AMERICA
INDIA
MIDDLEEAST
SOUTHEASTASIA
UK
PACIFIC
WOMEN AS CFOS ( OF FEMALE CFOS IN OF RESPONDENTS)
( of respondents surveyed)
of CFOs spend significant amounts of time as strategists for company growth
76
AFRICA
AUSTRALIA
5 18
Lowest Highest
of CFOs with total annual compensation including bonus and benefits of over US$255000
of CFOs younger than 35 years old when they attained their position
Europe
Europe
13
Asia
14
SouthAmerica
29
Pacific
30North
America
49
49
NorthAmerica
21
SouthAmerica
Asia
43
31
Pacific
30
In North America 39 of CFOs are older than 50 years
On average CFOs worldwide attain
their position between the ages
of 30 and 39
of CFOs are confident about credit availability in the future
4831
73of CFOs feel that the finance function will play a larger role in their companyrsquos development and execution of business strategy
51of CFOs are satisfied with the performance of their finance function
56
10
UAECA LaunchMARKET OUTLOOK
wwwthecfomecom
AAA launches an accountancy Certification for the UAE in collaboration with ACCA
CERTIFICATIONTAKING REGIONAL OWNERSHIP
The United Arab Emirates Chartered Accountants (UAECA) Qualification launched at Dubairsquos Armani Hotel 3 November by the UAE Accountants and Auditors Association (AAA) in association with the global accountancy body ACCA (Association of Chartered Certified Accountants) The announcement coincided with UAE National Flag Day and advanced ever expanding Emiratisation aims across the country With the support of the ACCA the skills gained will not only lead local UAE accountants to excel across the Emirates but also to encourage further growth internationally
A number of notable local leaders spoke at the event and
expressed their delight and favorable expectations for the UAECA His Excellency Sultan Bin Saeed Al Mansouri the UAE Minister of Economy Saif Abed Al Muhairi Chairman of the Board AAA Abdullah Amiri Financial Manager AAA and Ahmad Darwish Secretary General AAA and Chair of ACCArsquos members advisory committee in the UAE each offered speeches to the crowd of assembled finance professionals
ldquoWe are confident that UAECA will be the ambition of young Emiratis who would like to be the future leaders in the finance fieldrdquo said Al Muhairi
The UAECA qualification is the national qualification of the UAE and is based on
the globally recognised ACCA qualification This criterion will provide a dual-branded internationally recognised IFAC compliant route to membership of both AAA and ACCA
Said Stuart Dunlop regional director MENASA ndash ACCA ldquoThis unique partnership between ACCA and AAA will give students access to a national qualification making their skills and knowledge globally and locally relevant Once qualified as an ACCA member they will also be eligible to apply for membership to AAA meaning they can use the titles ACCA and UAECA after their names And because this partnership supports
ldquoWe are confident that UAECA will be the ambition of young Emi-ratis who would like to be the future leaders in the finance fieldrdquo
11
UAECA LaunchMARKET OUTLOOK
wwwthecfomecom
Saif Bin Abed Al Muhairi Chairman AAA
Ahmad Darwish Secretary General AAA
the governmentrsquos initiative to develop the accountancy and finance profession they will benefit from enhanced career opportunities as more employers and stakeholders choose to work with us in the futurerdquo
Emiratis in the accountancy field joined the procession eager to take part furthermore in what the AAA has planned unequivocally encouraged by the Associationrsquos hand in the UAECArsquoS launch The new qualification has stoked promise for bolstering Emirati involvement in local accountancy as well as international ventures which lie beyond the countryrsquos borders
ldquoAs an ACCA member Irsquom really proud the ACCA route
The new qualification has a good deal of promise for bolstering Emirati involvement in local accountancy as well as international ventures which lie beyond the countryrsquos borders
to membership has formed the basis of the new national qualification of the UAE It gives aspiring Emiratis recognition on a local and global stage and is a unique opportunity that will develop our careers and the profession in the UAErdquo said Ayesha Al Zaabi Senior Accountant of Group Finance Aerospace amp Engineering Services Mubadala
The future of accountancy appears brighter than ever in the UAE with the unveiling of an internationally supported qualification specific to the country The potential increase of Emirati participation spells great promise for the finance industry as it grows from within
12
at CPI Media Group the discussion offered a candid conversation of lively opinions bringing together key individuals from prestigious and influential businesses based in the UAE
The spirited discussion delved into how varied and increasingly imperative the Chief Financial Officerrsquos role has become
Vincent Valladares Managing Director Middle East Head Citi Commercial Bank led the vibrant discussion with the support of Anand Nagaraj Vice President Head Product Development Citi Commercial Bank whilst Grant Thornton Partners Jay Raney and Amgad Nassif offered their views as well
CFO RoundtableMARKET OUTLOOK
wwwthecfomecom
One of the trends in world business currently attracting considerable comment and debate is the changing role of the CFO No longer simply the custodian of the businessrsquo finance or the head of accounts the CFO is increasingly seen as a master strategist and the key architect of corporate decision-making As such a roundtable event held by Citi - in collaboration with Grant Thornton - was both a timely and revealing landmark on shifting attitudes and aspiration
IN CHANGING TImESCITI COMMERCIAL BANK CORRALS A pOwERfuL MEETINg Of MINdS
The management guru Tom Peters recently commented that ldquoIn these perverse and perhaps illusory times is it any wonder that the CFO is seen as the one reliable point of reference - the one person from the C-suite cut out for more responsibility and bigger things in the businessrdquo
Citi Commercial Bank and Grant Thornton echoed the importance of this shifting role by gathering a collection of leading CFOs and finance executives at Dubairsquos Grosvenor House - hosting a keynote round table called lsquoThe Changing Role of the CFOrsquo In a world where CFOs are increasingly wearing a number of new hats within their respective enterprises the event asked pertinent questions such as -
ldquoThe CFOs duties have changed as strategy and other focuses are becoming increasingly importantrdquo
bull Whether the CFO is increasingly the businessrsquo key strategist bull Whether or not the role is more and more impacted by changing legislation and regulationbull Is the CFO now effectively the CEO-in-waitingbull What is the role of management education in this new mix
So while much has been written lately about how essential it is that the CFOrsquos function evolve and change the dayrsquos discussion took an overtly practical view and gathered the opinions of the individuals at its core
Hosted by Paul Godfrey Group Editorial Director
13
recession environment has created an atmosphere rife with new regulations which CFOs are expected to master as these international enterprises venture into new markets and encounter sensitive and risk management-oriented frameworks
Citirsquos Vincent Valladares observed ldquoRegulatory issues are becoming bigger for banks as well as compliance And when we look at doing business with companies we want to look at those with good management teams because otherwise it can become difficult The CFO plays a very important role within this processrdquo
CEO waiting in the wingsWhen the group was quizzed on their individual desires to become CEO every hand around the table went skywards with an affirmative ldquoyes all of usrdquo - highlighting how commercially-minded todayrsquos CFOs have become Not to mention just how axiomatic the relationship between CEO and CFO consistently proves to be
Another factor is that amid all this diverse change - in roles working contexts and background economics - the CFO is seen very much as the person creating order control and standardization No small task
Perhaps the only certainty is that the communication of ideas is leading the charge forward for one of the business worldrsquos most important roles and The Changing Role of the CFO provided a definitive benchmark for this onward march
CFO RoundtableMARKET OUTLOOK
wwwthecfomecom
Members of the roundtable trade ideas
Vincent Valladares offers his position
CFO or CCOldquoThe duties have changed in some very clear ways A phrase that I am constantly coming across and strongly agree with is that we should be thinking of the CFO as the Chief Commercial Officer as opposed to someone who deals solely with finance Responsibilities central to finance continue to exist of course but strategy and other focuses are becoming just as if not more importantrdquo commented Rishi R Vig ZAFCO CFO
In addition to how much larger a remit commercial decisions are demanding the importance of regulatory protocols was a much- discussed topic The post-
Vincent Valladares Managing Director Middle East Head Citi Commercial Bank
Anand Nagaraj Vice President Head Product Development Citi Commercial Bank
Jay Raney PartnerGrant Thornton
Amgad Nassif Partner Grant Thornton
Paul Godfrey Moderator Group Editorial Director CPI Media Group
Steven Pradia Assistant EditorThe CFO Middle East
Ganapathi Bhat Senior Manager of Finance GEMS Education
Mark Downie Financial Controller Proclad
Nimesh Lokhandwala ICAI
Jehangir Pocha Himalaya
Kamal Shah Finance Manager Logicom
Rishi Vig CFO Zafco
Low Wai Leng Financial Controller Dubai Precast
Rajeev Jain CFO Afri Ventures
KG Vincent Finance Director FDC International
Ramesh Pemmasani Head of Accounts Intersun
Nagesh Nadig AIC
ROUNDTABLE ATTENDEES
IndiaCOUNTRy FOCUS
wwwthecfomecom14
SUBCONTINENTAL SURGE
By Arvind Chari
Last year was undoubtedly a turbulent time for emerging markets due to political instability inflation and the fledgling recovery in the West all causing significant headwinds Unsurprisingly this has led some commentators to be sceptical about the prospects for these markets including India But the Indian economy is showing signs that it will weather the challenges of the next few years This may not be an easy task given the
manner the Indian rupee plunged in response to the US Federal Reserversquos decision to taper asset purchasing Nevertheless India does have the political will to make the necessary reforms to deliver on its potential
While the Fedrsquos decision has caused some fallout in emerging markets commentators expect that this will tail off over time Meanwhile Indiarsquos economy is driven by domestic demand which means that
India does have the political will to make the necessary reforms to deliver on its potential
With an eye towards the nationrsquos key partnership with the Middle East the following India country report shares economic prospects accounting for last yearrsquos instability ndash defining what investors can gain moving forward
IndiaCOUNTRy FOCUS
wwwthecfomecom 15
$791bTotal trade between India and the UAE in lsquo13
64Expected growth of Indiarsquos economy in lsquo15
Indiarsquos debt market needs to attract stable investors over lsquobond touristsrsquo short term foreign flows evident in Indiarsquos bond markets
it is better placed than most to deal with the world post-quantitative easing Without the so-called lsquotaper tantrumrsquo investors in India might have focused more on the positives in 2013 But given the overall improvements in the economy and the political outlook we feel the India narrative will be harder to ignore in Q4
One of the most significant changes has been the appointment of Dr Raghuram Rajan as governor of the Reserve Bank of India (RBI)
last year He is clearly part of a dying breed of central banker that is one who actually knows how the world works He will make mistakes but the most important thing is that he will be trying to move India in the right direction as shown by his decision to continue with a hike in interest rates at the end of January Bond and currency markets have reacted very well to this move which shows the bank is now ahead of the curve in fighting inflation In October Rajan remarked that
Indiarsquos debt market needed to attract stable investors over lsquobond touristsrsquo a reference to the short-term foreign flows that have been evident in Indiarsquos bond markets His stance is an indication that policies could be shifted to attract more long-term stable money into Indiarsquos government bond markets away from a focus on the foreign-bank lsquoproprietaryrsquo investments that dominate flows currently
Indiarsquos current account deficit (CAD) was set to halve
STAT FACTS
IndiaCOUNTRy FOCUS
wwwthecfomecom16 wwwthecfomecom16
in the year ending March 2014 It was due to fall to 25 from 48 of GDP in 2013 The fall in gold imports alongside currency depreciation was a major contributing factor to this reduction Indiarsquos exports became more competitively priced over Q1 2014 which has led to higher exports in textiles chemicals and leather goods while the drop in the value of the rupee has also led to a fall in non-oilgold imports We expect the CAD to increase to around 3 of GDP for this financial year as gold import restrictions are removed a shift that should still be easily fundable Additionally the RBIrsquos FX reserves have increased by $34bn through the bank and non-resident Indian deposit swaps which was a much higher figure than anticipated This gives the RBI the additional firepower to intervene in the markets if it is necessary to counteract currency volatility In fact the
rupee has been remarkably stable since October and has steadily outperformed its other lsquofragilersquo emerging-market peers
There has also been an improvement in how other countries perceive India Net foreign direct investment is stable despite some negative sentiment driven by the outflows from the bond markets and banks Vodafone described by Rajan as lsquothe poster child for companies with difficulties in Indiarsquo is investing more in spectrum and also buying out minority operators In addition significant Japanese investment into Indiarsquos infrastructure is a further boost to the country and this relationship will be one to watch over the coming years
Overall the world has a much better impression of India than it did a few years ago when the country was facing significant obstacles In 2010 increasing inflation expanding fiscal deficits and an escalating CAD ndash all coupled with slowing growth rates ndash put India in a very difficult position But in 2012 the government realised that the current situation could not continue and since then there has been a much greater focus on reform
A mixture of poor growth and bad policies dramatically hampered Indiarsquos progress earlier this century frustrating many investors But the country is now beginning to drive a wedge between itself and the other more troubled emerging-market economies We feel
162KIndian tourists in Abu Dhabi yTD
Significant Japanese investment into Indiarsquos infrastructure is a further boost to the country and this relationship will be one to watch over the coming years
STAT FACTS
IndiaCOUNTRy FOCUS
wwwthecfomecomwwwthecfomecom 17
Population size 12 billion
Area 3287263km2
Type of government Federal republic
Official language Hindi
Capital city New Delhi
Largest city New Delhi
GDP (2012) $1825 trillion
Central government debt as a proportion of GDP 67
Currency Indian rupee
Conversion rate against the euro 0013
COUNTRy FILE
Hire a local manager or partner who has a very good
understanding of local rules and regulations
Have a longer-term investment horizon because the Indian rupee will remain
volatile for a while
donrsquot view volatility as a risk view the
integrity of the government and
management as a risk
Travel to India and feel the lsquomicrorsquo India
story rather than just read about the lsquomacrorsquo India story
Be patient and have realistic
expectations ndash things take time to work out in India
TOP TIPS FOR DOING BUSINESS IN INDIA
that these differences will mean that India significantly outperforms those economies over the coming years And while we might still be facing some turbulent times for India at least the dark clouds are beginning to break
As with any emerging-market economy the next few years will present challenges alongside opportunities and investors will have to
be comfortable with this state of affairs But India is committed to making the reforms it needs to improve its future The country has much better potential for growth than any developed country and it is also in a far better position than many of its emerging-market peers Now is the time to take advantage of all that India has to offer to investors
INNOvATIONrsquoS BOTTOm LINE Bill Chappell occupies a rare space as the CFO of Dubai Silicon Oasis a free zone dedicated to the development of technology across the emirate In the following interview he shares with CFO Magazine how far along technology has come in the UAE and why the figures are the most important aspect of his role as Chief Financial Officer
18
Cover StoryTECHNOLOGy
wwwthecfomecom
Dubai Silicon Oasis (DSO) occupies a vast 72 million square metre stretch of land in the northern reaches of the UAErsquos most globally recognised emirate Established in 2005 as a government-owned free zone devoted to the development of technology DSO has in the time since welcomed over 1087 companies into a space of which more than 59 of has been developed
Responsible for liaising with DSOrsquos companies both large and small whilst overseeing the free zonersquos balance sheet CFO Bill Chappell mans a unique station as a finance
executive with a keen eye for technological growth
ldquoIrsquove been with Dubai Silicon Oasis for nine years and my role is rather split I am the finance director but Irsquom also responsible
for our initiatives on technology incubation
and investment which is all very interestingrdquo
Chappell said Despite Chappellrsquos
years of experience in the technology industry granting him an imperatively strategic purview as CFO he makes clear what is most important as Chief Financial Officer
ldquoGetting the numbers right must always be the number one thing People talk about strategy and a number of other things but you must focus on the numbersrdquo
Chappell offered ldquoMy background is in technology companies for over ten years previous to coming here so I have a knowledge of technology which I brought to Dubai above all My overlap personally involves understanding technology whilst being a CFOrdquo
When Dubai Silicon Oasis first came into existence the area was undeveloped with no roads customers or residents Today the oasis acts as both a home for industry and residence whilst the Dubai Silicon Oasis Authority operates a number of services unique to companies which operate within the free zone A business incubation centre venture capital funding structure and various forms of entrepreneurial support are among DSOrsquos many aspects available to tenants
Said Chappell ldquoThere are three categories of companies at DSO There are smaller companies which deal more largely with our entrepreneur and incubator ecosystem The other extreme involves global firms such as Fujitsu or SAP and we look at their needs and make sure theyrsquore satisfied as customers They want our help to get setup And then there is the middle group and I meet them if they need my help as CFOrdquo
DSO counts SAP Porsche Fujitsu and Qordoba among its vast bank of companies
19
Cover StoryTECHNOLOGy
wwwthecfomecom
each of which are granted access to the Chappellrsquos well-honed expertise
ldquoBill has been involved in several meetings to gain updates about the company and offer input on what he thinks we should be focusing on whilst asking questions about our financial processes He also sits with the board on occasionrdquo said Loulou Khazen Baz founder of Nabbesh an online marketplace which connects professionals with work opportunities
ldquoDubai Silicon Oasis has been an important Investor at various stages of Nabbeshrsquos journey and a vital stamp of approval Our company has found priceless value in DSOrsquos support and the approachable nature of an involved CFO like Billrdquo
Chappell faces a number of challenges related to investment due to the region not ranking tech developments as high as traditional platforms such as real estate Additional concerns related to innovation have found themselves increasingly entering the CFOrsquos remit as related to encouraging ideas specific to the region Chappell is confident however that certain companies based in DSO are addressing these issues
ldquoIn this region one of my biggest challenges is getting people to understand
ldquoPeople talk about strategybut getting the numbers right must always be the number one thingrdquo
20 wwwthecfomecom
the complexities of tech Technology is a good investment class but the region is focused very much on real estate whilst the investment class of technology doesnrsquot rank as highrdquo said Chappell ldquoIn order to widen the general understanding we want to be developing solutions which address problems specific to the region We have one or two gems for example Qordoba a translation company which translates content in multiple languages The programme utilises artificial intelligence and as a result is getting smarter and smarter each time it is asked to translate so that it understands the meaning of what itrsquos translatingrdquo
Another key variable for DSO is centred on supporting
Dubairsquos goals based around becoming the worldrsquos capital for Islamic finance Chappell describes his role as CFO as one with ldquotwo thousand handsrdquo a multi-layered position which he seems to relish being held responsible for While DSO has grown tremendously in its near decade of existence the free zonersquos exuberant CFO sees lots more to come
Said Chappell ldquoI see us going from strength to strength Wersquove been in existence for nearly ten years When I joined it was empty desert Now we have over 1000 companies and an estimated 43000 living on site Within five years wersquoll also be further down the path and wersquoll be recognised for our contributions to the smart city and the Islamic economyrdquo
ldquoWithin five years wersquoll be further down the path and recognised for our contributions to the smart city and the Islamic economyrdquo
Dubai Silicon Oasis
headquarters
1080Companies in DSO
72millionDSOrsquos land mass in square metres
STAT FACTS
Cover StoryTECHNOLOGy
THE MIDDLE EAST ACCOUNTANCYAND FINANCE EXCELLENCE AWARDSWEDNESDAY 10 DECEMBER 2014AT THE JUMEIRAH BEACH HOTEL DUBAI
ACCOUNTING FOR EXCELLENCE
Once again the very best talent in the world of accountancy and fi nance will be celebrated by ICAEW at a stellar awards ceremony
ICAEW is a professional membership organisation supporting over 142000 chartered accountants around the world And on Wednesday 10 December 2014 at the Jumeirah Beach Hotel in Dubai wersquoll be recognising excellence in ten categories featuring Business Leader of the Year CFO of the Year Corporate Finance Deal of the Year and the Internal Audit Excellence Award
With an impressive line-up of speakers special guests and entertainment it all adds up to a trulymemorable evening
To submit a nomination or for more information visit icaewcommiddleeastawards
Nominations close on 1 October 2014
A WORLD LEADER OF THE ACCOUNTANCY AND FINANCE PROFESSION
400595_ICAEW_MiddleEast2014_Ad_NBAD_DEVERE_207x270_AW_3indd 1 27082014 1541
PROCUREMENTANALyTICS
wwwthecfomecom22
Return on Supply Management Assets (ROSMA) is a pioneering framework launched by AT Kearney after four years of testing one aimed at addressing the aforementioned procurement gaps The performance measurement standard was initiated with an eye on creating a benchmark for the procurement industry and providing a compass to direct investments
ldquoROSMA started in 2010 And it started out with conversations with the CFO There are a group of folks in the company talking about how great their achievements are however
the capital that procurement claims isnrsquot often obvious and can create a disconnect within the companyrdquo said AT Kearney Vice President Federico Mariscotti
This yearrsquos annual report surveyed a number of businesses and arrived at a series of significant findings which outline procurement patternsbull Top-tier companies generate
approximately $16 million in financial return per procurement employee yearly A reported 35 per cent of return derives from applying advanced methods
bull Mid-level performers typically
The first step for compa-nies in the Middle East is to take a good look at what they expect procurement to bring
Leading global management firm AT Kearney recently released a report on the evolving conversation which surrounds procurement A key aspect of the report spells out how much CFOs stand to gain by making more pronounced investments based on utilising procurement in terms of value The relative distance between CFOs and their respective companyrsquos procurement methods is cited as cause for concern
THE NEW LANGUAGE OF PROCUREmENT
generate four to five times of their investment in procurement valuation yet have not exemplified growth since 2011
bull Performers at the lowest level surveyed do not achieve monetary benefits which cover costs
bull The majority of organisations surveyed do not possess the tracking structures needed to analyse procurement performance
bull Regardless of company size or industry procurement
PROCUREMENTANALyTICS
wwwthecfomecom 23
The CFO community has not yet awakened to the value of procurement
performance varies though companies with sophisticated reporting techniques experience less variable performance
The reportrsquos express aim to create a benchmark for procurement follows a wave of process monitoring which found notice in the manufacturing industry in the 1980s supply chain research and engineering in the 1990s and sales and marketing performance being closely tracked in the 2000s
ldquoProcurement costs can represent anything from 20 to 90 of a companyrsquos total cost going from the public sector to consumer goods Yet the productivity of the team that presides over the supply market interactions has a way of explaining their value add using savings that do not add up to the PampL impact measured by finance Savings definitions different baselines and cost avoidance all contribute to a murky aggregate view of the impact on the businessrdquo added Mariscotti
In the Middle East the challenge is fundamental ndash getting the spend data in the first place Companies admit they often do not have a clear categorisation of intelligence lack an agreed definition of savings measurement and generally position procurement as a pre-eminently transactional activity lacking the mandate to contribute value Procurement processes as a result remain centred around purchasing are paper based and lack transparency The first step for companies in the Middle East is to take a good look at what they expect procurement to bring
wwwthecfomecom24
Influencedspend
The inconsequential The brand leaders
Leaning up
Note All three segments start with a common hypothetical spend of 1000 to normalize the case example
Source AT Kearney analysis
Source AT Kearney analysis
TOP QUARTILE
mIDDLE-TIER 50
BOTTOm QUARTILE
704
764
644
522
527
396
42
30
(138) (25)
(63)
19
39
28
15
21
4
3
60
32
18
Sourcedspend
Units of yield
Post-compliance
benefits
Additionalbenefits
Financial results
delivered
19x
17x
middle tier
bottom quartile
TOP-QUARTILE PERFORMERS DELIVER NEARLy TWICE AS MUCH VALUE AS MIDDLE-TIER PLAyERS
THE CFO COMMUNITy HAS NOT yET BEEN ldquoAWAKENEDrdquo TO THE VALUE OF PROCUREMENT
Procurement is not on the radar for those who gave the wrong answers to three essential questions
leadership with accountability for performance is clear but either the measures are not clear or performance is believed to be weak variable or unknown ndash or a mix
leaners and leaders answered all three essential questions correctly and also answered most or all other questions correctly
to the table and how it should support the business To make a steep change companies need to understand the multiple benefits which will occur for investments made once theyrsquove allowed for stronger procurement practices
The benchmarking aspects of ROSMArsquos report speak directly to CFOs based on an existing widespread inability to track and improve this often unquantifiable nature of procurement practices According to the report the CFO community has not yet awakened to the value of procurement and Chief Financial Officers are thus divided into three segments The brand leaders (25) those leaning up (63) the pack (774) and the inconsequential (138)
Said Mariscotti ldquoThis is a way to give procurement a measurable quality that CFOs can quantify You have to know what yoursquore doing with relation to procurement in order to do it well ROSMA gives you a number which helps you understand how good your procurement is working as compared to peers It lets you know whether or not you could be doing something differentrdquo offers Mariscotti
CFOs have exemplified an increasing ability to share in a companyrsquos strategic efforts whilst expand their respective remits Procurement is emerging as the latest segment of this conversation Understanding its value beyond the transactional is the first step for CFOs to fully engage with harnessing the potential of procurement and grow to become a part of the elusively paltry portion of brand leaders indicated in ROSMArsquos report
PROCUREMENTANALyTICS
The pack(774)
Al Sharid is the Vice Chairman of Emirates Transport and has enjoyed a successful career in which the lionrsquos share of his tenure has afforded him a seat at the helm of the business
ldquoI remember when I first received the GM of Tata in the late 80s he said to me lsquoYou are the youngest GM I have ever metrsquo I was 29 years old at the timerdquo Looking at Al Sharidrsquos rapid ascent to the top of his organisation can be mind boggling to the average observer however to those few who strive to push themselves to their limits it is perhaps more common a reality As with any top performer we can often see their desire for results and impact
early on in life and with Saeed the first stride of his race to the top began with an accounting degree in university
It was 1976 and the excitement of the UAErsquos biggest milestone moment its inception just five years earlier still clung to the air from Fujairah to Abu Dhabi and every emirate in between A nation was being built Saeed had just finished high school and went to the United States where he was to study engineering
ldquoI was not yet 18 years old it was 1976 and I was sent to America to study it was the beginning of a dream and a young liferdquo says Al Sharid Unfortunately Al Sharidrsquos academic tour of duty came to
THE EmIRATI DREAm Saeed Al Sharid is today an elder statesman in the world of UAE accountancy With decades of know-how based on chairing a number of key Emirati organisations Al Sharid is today atop his own family firm In the following exclusive interview he shares the importance of education the evolution of a nation and just how being an accountant has driven his many triumphs
an abrupt halt when his father suddenly passed and he was forced to return home ldquoWe are seven brothers and I am the middle one so during tough times we always come together and during this period the strength of my family pulled me through I have three younger brothers and I felt I had to be there for them I felt responsible for them My mother played an omnipotent role in pulling us through this dark moment in our history The death of my father forced us to become more independentrdquo says Al Sharid
Now back in the UAE with his plans of studying abroad dashed Saeed looked at the local schooling system within which Al
26
InterviewPERSONALITIES
wwwthecfomecom
Saeedrsquos desire for results took its first stride with an accounting degree in university
By Shane phillips
27
InterviewPERSONALITIES
wwwthecfomecom
Ain University had just opened ldquoAl Ain University was the pride of the Emirate at the time the students were like celebrities The first batch of graduates were all promised 50000 AED from HRH Sheikh Zayed I was one year late so technically I should not have graduated with the first batch but I was determined I worked an extra course load did summer school and soon caught up to the first class 50000 AED in 1981 was like 5000000 AED today so I was very motivatedrdquo says Al Sharid
Saeed not only caught up with the other students but he wound up graduating atop Al Ain Universityrsquos first class of graduates with a 38 GPA ldquoWe Saeed Al Sharid
28 wwwthecfomecom
to the organisationrdquo he says Saeed first joined Emirates Transport after seeing a small newspaper advertisement for an accountantrsquos position He applied but initially they did not want to hire a local because locals were too expensive After a few months however they called him back for an interview and offered him a job
Initially Saeed struggled to get a promotion or even a raise He worked tirelessly to develop himself and kept detailed notes of his work After nearly two years went by with no promotion he requested to meet with the Chairman of the corporation to discuss his career The Chairman was a Minister making him even more senior than his title implied Al Sharid was courageous and determined ldquoYou should not stay silent you have to take initiative your future is in your handsrdquo says Al Sharid
ldquoI met with the Chairman and told him about my work and what I wanted to do He did not talk he just listened and that was it It was a 15-minute meetingrdquo says Al Sharid Three days after Al Sharidrsquos pivotal appointment he was promoted to Deputy General Manager Directly from a Trainee to DGM skipping all the roles in between at the age of 27 years old They doubled his salary and catapulted him into a senior leadership role
ldquoI felt it was quite strange to move up that fast and personally was not sure I could handle the job I had a lot of resistance from the board I had people in their 50s reporting to me and they were not happy about it So I just took a step back and did not try to get involved in their work too fast I went slow and watched my step This was a very important
ldquoThe UAE was a brand new country and a lot of work was being done to develop the nationrdquo
never had any idea of a career path and there was no such thing as career counsellors or lsquocareer servicesrsquo at the school So when you graduated most people just joined the Ministries The UAE was a brand new country and a lot of work was being done to develop the nation The Federal Government paid the highest and so one just joined them There was no grand vision or dream that I was off and chasing In those times you simply tried to do the next best thing So I ended up working in the Ministry of Health as an accountant Back then a university degree was a veritable qualification and it had a lot of market equity today it wonrsquot even get you in the doorrdquo
As the Middle East market evolves not only are university degrees becoming more common but so are post graduate degrees such as MBAs and even PhDs As such the competitive positioning of professional qualifications are gradually eroding over time
ldquoTo stay competitive executives today will require deep and specialised knowledge of their respective industries an intellectual arbitrage that provides superior results To beat the market to manage the risks to develop a sustained competitive edge For this executives need to stay in a role for the full strategic cycle which is at least four years in durationrdquo says Sharid In the case of Al Sharid he was there for 33 years
ldquoDo you just want a job or are you looking to make a contribution to your company Too many young people today are just looking for a title or a position The difference between those who make it into senior roles and stay there is the desire to create impact to add value
InterviewPERSONALITIES
2012year Moodyrsquos upgraded the UAE economy from developing to emerging
37The UAErsquos global rank for GDP
STAT FACTS
moment for me to gain valuable leadership experience early on To make my learning curve even steeper the General Manager quit after two years and I became the GM at the age of 29 years oldrdquo explains Al Sharid
He ascended to the top job in less than five years and stayed in the position for almost twenty years He was totally committed and could even be found in the bus yard at four in the morning to greet the drivers as they started their shifts ldquoThe key to being successful in business is to keep your finger on the details Some people let the details slip and if this happens you will suffer I get into the yard I meet the drivers I meet all the staff If you saw us you will not know who was the GM or who was the driver You have to realise people will never work for you they will only work with you To me Emirates Transport is like my familyrdquo says Al Sharid
When asked what his keys to success are he says ldquoI think if I was not an accountant I would not be a good leader I would not be a good manager In my opinion trying to do business while not understanding accounting is like getting into the ocean and not knowing how to swim you will drown The Chief Executive Officer who does not know how to create the financial statements is always at the mercy of his Chief Financial Officer He cannot take any big decision on his own and he will not even be able to challenge the CFO Accounting is the bedrock of any business and a critical skill set for any leader No one can argue with this factrdquo says Al Sharid
With over 20 years of experience in tow and the related chairmanships to boot Al Sharid
ldquoTrying to do business while not understanding accounting is like getting into the ocean and not knowing how to swim you will drownrdquo
has since early last year partnered with his family to form Al Sharid Auditing Though the Emirati youth is not as keen to pursue positions related to accountancy as Al Sharid was he feels that there is hope to close the gap
ldquoIt is difficult to find an Emirati expert I studied the audit market specifically and there were others like me then But now you break Emirati auditing involvement into three categories The first involves the big firms This is followed by individual smaller enterprises But thirdly a lot of locals opt to work with the government also Most are not managing their own firms they just have a partnership and they are building thatrdquo Al Sharid explains
ldquoAl Sharid Auditing however is a firm that includes my brother and our two sons which make up a body of qualified professional auditors We established this firm last year and work closely with the government We decided to make one firm together instead of having many smaller entitiesrdquo
Moving forward Al Sharid plans to grow his familyrsquos firm by applying the very belief system which has catapulted him to his position of power Marketing concerns which are designed to furthermore announce how tailored Al Sharidrsquos offerings are at present a key variable to forging ahead
Said Al Sharid ldquoMoving forward wersquore focusing more on the marketing of our firm Itrsquos a matter of not exactly expanding but going over the right deals The market is tough and the small jobs are easy but we donrsquot need them We donrsquot want to be in many rooms we want to be in the important onesrdquo
29wwwthecfomecom
InterviewPERSONALITIES
1UAErsquos rank among GCC nations for chosen hub of all major accountancy bodies
STAT FACTS
Latest insights from PwCrsquos 15th Annual Global CEO Survey revealed that 59 per cent of CEOs see emerging markets as more important than developed markets to their future What is making emerging markets such a pressing priority for C-suite executives Why are emerging markets increasingly grabbing headlines
Emerging markets are large fast-growing and ambitious markets best known for being the growth engines of todayrsquos global economy Research (1) suggests that emerging market countries are expected to amount for more than 60 per cent of global GDP growth ndash a clear indication of the wealth of opportunity they present
Understanding emerging marketsBased on estimates by the International Monetary Fund emerging economies are expected to grow two to three times faster in comparison to developed nations Explaining this fast-growth and the rise of these emerging markets an article on Forbescom details that ldquoduring the US housing crash and resulting credit crisis of 2008 world markets were saved from a total disaster thanks to the big emerging markets ndash mainly Brazil India and China The global credit crisis was one of the longest deepest and most painful in history It toppled Wall Street icons like Lehman
The following report explores emerging markets from West to East which are at the helm of economic development trade and innovation and highlights what their rising popularity means for the growth of your business
Brothers required government bailouts of bulge bracket banks and shocked the global economy with a deep economic recession and even a deeper crisis of confidence Its most important legacy though may be one that has yet to fully unfold the crisis revealed a new world order in terms of economic and market dynamics Emerging market economies finally arrived as
30
Market IntelligenceANALyTICS
wwwthecfomecom
ENTERING EmERGING mARKETS STRATEgIES RISKS ANd OppORTuNITIES
Projected annual GDP growth 2014 amp 2015
PANAMA
67
PERU
RANK42
55
Projected annual GDP growth 2014 amp 2015
Ease of Doing Business
RANK55Ease of Doing
Business
TOP TEN MARKETS
(1) Source here Accenture Research ldquogearing up for growth ndash five imperatives for success in emerging markets 2011 Henry Egan and Armen Ovanessoff
31
Market IntelligenceANALyTICS
wwwthecfomecom
LATVIA
CZECH REP
MALAYSIA
THAILAND
SOUTH KOREA
CHINA
RANK75
41
21
50
45
35
74
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
CHILE
RANK 34
43
Projected annual GDP growth 2014 amp 2015
Ease of Doing Business
RANK 24Ease of Doing
Business
Ease of Doing Business
RANK 6Ease of Doing
Business
RANK18Ease of Doing
Business
RANK 7Ease of Doing
Business
RANK 96Ease of Doing
Business
POLAND
32
RANK45Ease of Doing
Business
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
Source httpwwwbloombergcomnews2014-01-29qatar-china-top-ranking-of-frontier-and-emerging-marketshtml
powerful essential and permanent contributors to global economic growth and sustainabilityrdquo
Bloombergcom recently ranked the top emerging markets based on their performance on 19 economic financial political and social indicators In order of ranking the top ten markets were
CHINA
SOUTH KOREA
MALAYSIA
CHILE
THAILAND
PANAMA
PERU
LATVIA
POLAND
CZECH REP
1 6
2 7
3 84 9
5 10
Market IntelligenceANALyTICS
32 wwwthecfomecom
Making an entryIf your business is looking to enter any of these emerging markets itrsquos worth considering the following checklist
1 Assess your readiness The biggest mistake you can make is to enter a market without proper evaluation of your business Donrsquot do it just because everyone else is Like every other major business decision be sure to speak to your Board of Directors partners investors stakeholders and most importantly your CFO and certified accountants Make a business plan enlisting your objectives goals investment strategy potential risks etc
2 Research research research Do your homework Treat emerging markets as any other international expansion venture and do thorough research on the new market ndash Who are the competitorsWhat is the price point for your product What are the customer demographics What kind of infrastructure do you need for the manufacturing production or distribution of your product
3 Understand the legal framework Emerging markets might not have rules and regulations as clearly spelled out as your home country Invest some time and money in understanding how business procedures work A very obvious area of focus for UAE-based companies is tax Since the UAE is a tax-free economy companies arenrsquot exposed to tax accounting and other legislation surrounding
ndash failing to adapt to the needs and expectations of the local customers is surely a recipe for failure Time and again companies havenrsquot been able to create a customised offer and have had to exit these markets with huge losses A success story however is that of the Haier Group Haier famously introduced washing machines to specifically suit the water pressure levels in the households of India ndash an emerging market strategy that worked very well in their favour and helped them become leaders in that sector Another great example is that of Coca-Cola as explained in an online Reuters article by Matt Reilly ldquoIn Brazil Coca-Cola has used social media to better understand consumer preferences and has developed a successful local network to supply traditional Coca-Cola products as well as fruit juices tailored to local tastesrdquo
7 Local currency This is a complex yet critical area to consider when entering a new market Ask yourself questions such as ndash What is the local currency rate How does it compare to the currency in your home country Is the country import-led or export-led and what impact can this have on the global value of the currency Remember that fluctuations in currency rates can hugely effect your overall investment and thereby the return on investment
8 Build partnerships When entering an unknown territory it is quite useful to have the backing and support of peers who can help you in case of unforeseen challenges This is
this Another area to consider is corruption ndash emerging markets are notorious for high corruption red-tape and bureaucracy Speak to your company lawyer to assess these areas and take proper measures to avoid them before-hand
4 Invest in local talent Working with people already accustomed to the new market avoids the hassle of relocation and reduces costs But more significantly gives you skilled talent to work in these unique environments This also works in favour of your company as it gives you a clear understanding of the kind of compensation packages you will have to offer to your employees For instance employees based in China might want high remuneration and low healthcare benefits while in India it may be quite the reverse Recruiting local talent will also have a trickledown effect ndash your employees will easily be able to cater to the local customer needs without the need for intense training
5 Supply chain 44 per cent of business leaders surveyed consider accessing the right supply chain capabilities extremely or challenging in emerging markets according to Deloittersquos Globalisation Survey Make sure that you know who your suppliers will be what the production costs are whether their production procedures fit your time constraints and if the final product matches your level of quality
6 Cater to local market demands This is one of the most important aspects of all
Do your homework Treat emerg-ing markets as any other internation-al expansion venture
Market IntelligenceANALyTICS
33wwwthecfomecom
the very reason why Mergers and Acquisitions are a popular way to enter into emerging markets Many companies piggyback on their clients who are entering these markets For instance if you are an IT consultancy working on a major project for a manufacturing and trading company with operations across India and China you can use their resources and expertise to explore opportunities in these countries
Remember to consider these steps every time you enter a
new market as every locality has its own set of unique needs One strategy doesnrsquot fit all
Surviving fierce market conditionsWhile the massive opportunity that lies within emerging markets paints a pretty picture businesses need to be wary of bottlenecks such as corruption volatility gaps in laws and regulations and strong competition There have been several high-profile cases of multinational companies withdrawing from emerging
markets owing to immense corruption pressures
There is also a high percentage of inherent risks in these markets which amount to many companies not succeeding in their first attempts It is important to take your time when adapting to these markets and fully understand the business dynamics Following recent case studies and going over the lessons learnt by multinational companies who have made an entry into these markets consider the below
bull Is your companyrsquos head-office ndash and senior management ndash located in your home country without any C-level representation in the new emerging market
bull Are you focusing all of your resources on doing business in the emerging market at the cost of losing profits in your home market
bull Have you researched local competitors in these markets who may already have a strong standing and proven models of success
bull Are you using the same ldquoentry approachrdquo and business model across different emerging markets
If your answer to one or more of these questions is yes it may be time to re-evaluate your presence in these markets and map out a different strategy
Finally remember that no matter what the outcome of your admission to these markets might be your business is sure to emerge out of this stronger tougher and ndash of course ndash ready for a new challenge
of companies believed they had invested more resources in
emerging markets than was required
entered a market without fully assessing the ability of the supply chain to support the expansion
entered with the wrong pricing model and an inappropriate
operating model
CONSIDER THE RISKS
48
24
20
There is also a high percentage of inherent risks take your time when adapt-ing to these markets and fully understand the business dynamics
Source Emerging markets expansion and the supply chain Economist Intelligence unit survey conducted on behalf of EY September 2010
34
CIMA INTERVIEW
wwwthecfomecom
The Chartered Institute of Management Accountantsrsquo (CIMA) Managing Director Andrew Harding visited Dubai to host the Institutersquos seminar on global management accounting principles In the wake of CIMA revising their well heralded syllabus Harding discussed with CFO Magazine what the newest edition held how CIMA is applying a digital focus to its courses and just how CFOs can gain from it all
CURATING CURRICULUm
35
CIMAINTERVIEW
wwwthecfomecom
can give CFOs something they can take and something they can measure their own management accounting services against They can benchmark using this and they can utilise this to see their progress
Part of that is having professional management accountant in place I donrsquot think the landscape matters I believe that there is a common business need wherever you may be around the globe
All of the emerging markets need these skills The first aspect that accounting schools teach is about auditing skills because theyrsquore interested in protecting investments Then they teach you how to keep your business sustainable and to have a sustainable business you need to have a management accountant in place So itrsquos not just here in the UAE where we see these demands we see the same demands in China Indonesia and other powerhouse economies We see their skills shortages and we see the need for solutions in those areas
Talk to me about how this new syllabus works to promote the evolution of a CFOThis syllabus that wersquove
Can you expound on just what can be found within the new CIMA syllabusWe just revised the syllabus we do that every four to five years What we have done this year is a very significant revision It is based from a complex study that we have carried out to over 3000 people from 200 companies globally It is the very first revision since the joint venture with CIMA and AICPA So this has allowed us to attain a syllabus rich with all the data from all the continents in the world For the first time wersquove had real involvement from companies in the USA in this project
Why is the collaboration between AICPA and CIMA significantMost important is the Chartered Global Management Accountant (CGMA) designation that AICPA and CIMA both issue for qualified management accountants Wersquoll have a common curriculum and common examination which will begin on January 1 which gives us a global designation for management accountants wherever they are around the world There are plenty of accounting bodies who claim to be global but actually this is the only
genuinely global designation This is because it has the only one with a North American participation in it So we can say that the CGMA will be just as well-recognised in the USA as it is in Dubai
With the global landscape in mind how do you create an even objective that applies to localities which may prove widely differentialThe landscapes are different but businesses have common needs wherever they may be What wersquove particularly seen since the global financial crisis is that companies are actively looking to build management accountant capability to build that capacity within their organisations They donrsquot want to have a poor quality of information that lacks insight being used in their businesses So they see management accountants can bring solutions to that As a result of all the work wersquove done with companies who participated in the syllabus wersquove also put together a series of what we call Global Accounting Principles This is a series of principles which describes what good management accounting looks like and what top quality management accounting in a company should be producing This then
ldquoCompanies are actively looking to build man-agement accountant capability to build that capacity within their organisa-tionsrdquo
36 wwwthecfomecom
worked on acknowledges the skill set needed by professionals throughout their career Therersquos a base level of competence that is needed but beyond that there is more There is business acumen the ability to communicate and influence and finally the ability to lead So you start off enhancing your raw technical accounting skills Then you need to place that into the context of the business that you are in Then as you move forward and as you rise to become the CFO yoursquoll need the others You have to learn how to present your work in a way that can influence and make an impact in the business The final piece is the ability to lead projects and other functions and to a great extent lead the board of directors Thatrsquos how the context works itrsquos not just about technical knowledge
How do you find that CFOs in the GCC region are responding to this programmeThe CFO has a real challenge on his hands now In 1975 80 per cent of corporate value is showing on the balance sheet By 2010 that dropped to less than 20 per cent Your traditional PampL reports no longer reflect the value of the business or how the business drives value
All things that should be of interest to investors is missing With things like the integrated report initiative wersquore starting to see the other dimensions that add value to business For CFOs thatrsquos all about strategic thinking and considering the long-term objectives Being articulate in implementing those strategies keeping in mind the risks and opportunities that the business faces We are also nowadays witnessing a whole new world of transparency around that
Are there electronic aspects to CIMArsquos advancing approachThe interactive case study simulates a real working situation and it tests how they can apply their knowledge in real life situations Theyrsquoll be presented with a scenario a few weeks before they take the exam so they can prepare for it They then go to an exam centre where they are asked questions about how they will deal with a certain situation in the real world Theyrsquoll get an email from the CFO giving them a certain task for a particular period of time We want to make it as close to reality as possible so students taking the exam will be assessing situations based on real life scenarios
ldquoThe CFO has a real challenge on his hands now as traditional PampL reports no longer reflect the value of the businessand [the role] must focus on strategic thinking and considering long-term objectivesrdquo
218KCIMA members worldwide
STAT FACTS
CIMA INTERVIEW
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
38
ERPANALyTICS
wwwthecfomecom
Faster more nuanced IT solutions are available to the modern day CFO Whilst Chief Financial Officers are called upon to analyse data across a number of spectrums the digital tools on hand are likewise being expanded to aid in focusing more squarely on the bottom line
ExCELLING WITH ERP
The global landscape is today firmly entrenched within a digital model As a result CFOs whom are called upon to take a larger role in a number of variables must also increase their abilities with respect to utilising the many upsides which tech innovations offer a business When surveyed about their most pressing concerns CFOs generally return a varying collection of responses Revenue growth regulatory changes and meeting quarterly goals are among the chief concerns Virtually every obstacle can be hurdled by way of maintaining the order of financial reporting and data which has long been
synonymous with the Chief Financial Officerrsquos remit A widening berth of ERP solutions is making this data all the easier to come by
Despite how sophisticated the market is today it was not long ago that ERP departments once spent days processing business reports
Said Rohan Tejura Assistant Vice President Focus Softnet ldquoTraditional ERP systems were solely data repositories Moreover these repositories werenrsquot real time and were incredibly dependent upon locational connectivity With the emergence of smarter development platforms more versatile devices and
39
ERPANALyTICS
wwwthecfomecom
more intuitive designs of system development the overall experience of the ERP now extends from data warehousing to reporting analysis trend mapping business intelligence and governance oriented capabilities Yet these solutions amazingly execute all of these deliverables via portable handheld devices and through cloud environmentsrdquo
New generation ERP systems must now be on the go whilst including up to the minute analytics to provide deeper insight into the business ERP Analytics tools use historical data captured from various business functions to provide valuable information for efficiency and business performance each incredibly priceless to a leading CFO
Finesse is an ERP provider which is continually addressing the transformation of output which the ERP industry is offering the equally transitioning role of CFO
ldquoWe provide end-to-end business management solutions to SMEs and Enterprises Our approach to ERP is much more than providing simply an operational management systemrdquo said Finesse COO Sunil Paul
ldquoWe believe that todayrsquos businesses need much more than integrating sales with inventory accounting and manufacturing but also to have seamless integration with all their sales channels including the point of sales ecommerce and inbound sales solutionsrdquo
A major im-petus of the ERP-cen-tered growth is based on how effec-tive com-prehensive real-time data proves to be for the CFO
40 wwwthecfomecom
before thereby creating new global benchmarks for overall economic growth
Microsoft Arabia CFO Sadrul Khan offered insight into just how far the knowledge economy has influenced regional financial leadership by explaining how one of the most prioritised technologies by CFOs in the region is social platform monitoring
ldquoOne of the five technology choices that CFOs tend to prioritise in boosting productivity efficiencies and faster decision making in the fast paced business environment which include a social platform that monitors trends customer sentiments and helps process mashable data for customer centricity and business growthrdquo said Khan
A major impetus of the ERP-centered growth is based on how effective comprehensive real-time data proves to be for the CFO Whether employed as on-premise ERP software-as-a-service or cloud-based solutions a nearly identical ethos is being utilised Allowing the CFO to quickly access the performance of all facets of a business is paying dividends in the boardroom a reality which is showing itself increasingly in the Middle East
The technologically-charged relationship between ERP solutions and the regionrsquos CFOs is expanding and as a result has catalysed what many see as GCC economic performance outstripping that of many economies outside of the region as a result
In order to compete in todayrsquos fiercely competitive environment organisations need to think both innovatively and out of the box They require more insights about their business and their customers and need to ensure that they are able to meet the expectations of their internal as well as external stakeholders Enormous amounts of data both structured and unstructured is continuously being generated within the internal and external systems of the organisation which if analysed can be of immense value both to the business and subsequently the stakeholders associated with the organisation
With the the era of CFOs labouring over spreadsheets now in the past given how many business frontiers have become so dependent on mobile options such as the cloud more and more tech companies are providing the regionrsquos CFOs with information technology that converts traditional internal and external data into rich visual insights This information is then used for faster decision making and provides the ability for a CFO to assess manage and control risks Regional CFOs have grown enabled to drive corporate strategy accordingly demonstrating how the knowledge economy is now in full force amongst the Gulfrsquos corporates
Given that advanced IT has now become a regular CFO tool the regionrsquos CFOs are subsequently making faster decisions and driving internal growth models with greater speed and agility than ever
Tech companies are providing the regionrsquos CFOs with information technology that converts traditional internal and external data into rich visual insights
ERPANALyTICS
Donrsquot discoveritrsquos counterfeittoner afteritrsquos too lateOriginal HP Toner works first time every time1 unlike cheap toners which fail over half of the people who try it2 Non-HP toner can compromise your printerrsquos performance to give you streaked blotchy or faded prints Only original HP Toner cartridges deliver unmatched quality for the most professional-looking prints 100 of the time1
1 A QualityLogic 2010 study commissioned by HP comparing original HP LaserJet Monochrome print cartridges with nine brands of non-HP toner cartridges available in Europe Middle East and Africa for the HP LaserJet P1505 and P4015 printers HP 36A and 64A For details see wwwqualitylogiccomEMEAmonotonertestpdf 2 From a 2012 EMEA Lyra Research study commissioned by HP Results based on a total of 1050 HP Color LaserJet users who have used both original HP and non-HP toner cartridges of whom 552 experienced problems with non-HP cartridges
copy 2014 Hewlett-Packard Development Company LP
42
Private Equity ANALyTICS
wwwthecfomecom
The rise of PE-backed acquisitions is forcing CFOs to develop an entirely new set of skills
THE PRIvATE EQUITy CFO
The CFOrsquos utility in the world of private equity is without question on the rise The once-held belief of the CFO existing solely as the ldquoaccounting guyrdquo has been abandoned Over the last 20 years the role of CFO has become more demanding - requiring not just finance and accounting acumen but also a financial literacy in corporate planning risk management MampA assetliability management and regulation This evolution has been driven by a number of
key factors Yet the private equity industry which is now reshaping the corporate landscape through active ownership is by far the most significant factor driving change within the role of the CFO
PE-backed buyers today represent a larger percentage of overall buyers in the corporate acquisition marketplace than ever before Data provider Prequin estimates that as of June 2014 the capital raised by PE funds that
has not yet been deployed amounts to $114 trillion globally The result of this ldquodry powderrdquo is that a vast quantity of corporate acquisitions in the coming years will be undertaken by the private equity industry As such CFOs will be more accountable to demanding ldquosmart moneyrdquo shareholders than at any point in recent history Budgeting accounting and financial reporting will no longer exist as sole priorities but as a core competency among a
ldquoBy effec-tively using real-time data CFOs can create a dynamic process that proac-tively drives performance account-ability and value crea-tionrdquo
By Aaron Heidari
43
Private Equity ANALyTICS
wwwthecfomecom
robust set of complimentary and required skills Most of all the bar for CFOs is rising as PE investors will only accept above-average performance from their management teams
CFOs were once more reactive in function setting budgets based on other executivesrsquo plans and managing the flow of reporting to shareholders on a quarterly and yearly basis Today CFOs are required to become proactive managers of their respective businesses alongside their C-suite compatriots using a granular data-driven approach to aggregate analyse implement and report on every aspect of a companyrsquos operations
An important tool to drive this value creation process are KPIs Yet KPI structures including both aggregation and output are generally not up to the standards required of private equity investors prior to an investment being made
ldquoThe benefits of using KPIs and monthly reporting packages are significant By effectively using real-time data that is actionable and by partnering with functional area leaders within the organisation company CFOs can create a dynamic process that proactively drives performance accountability and value creationrdquo said Amanda Robinson Vice President of Accordion International in Dubai a consulting firm which is comprised of former private equity and investment banking professionals who
MENA region Cumulative Funds Under Management Since 2008
Source Zawya private Equity Monitor
19 636 20 36321 586
22 64323 506 24 250
-
5000
10000
15000
20000
25000
2008 2009 2010 2011 2012 2013
Cu
mu
lati
ve f
un
ds
($ m
)
$15mAverage MENA PE investment size in lsquo13
50Percentage of investment in IT and energy sectors
STAT FACTS
44 wwwthecfomecom
work with companies to deliver cost-effective project execution services
Active shareholders whose money it is being spent will typically require a data-driven justification before approving any budgets capital expenditures or new acquisitions Furthermore in many private equity backed companies the use of debt and the matching of shorter-term bank financing with longer-term investments will only be considered after a robust analysis is conducted to understand the companyrsquos ability to service that debt in the future This evaluation is not simply to identify revenues expenses and profits Itrsquos about drilling down into every transaction and rooting out data processing and reporting At least that is the expectation
The most valuable CFOs are those who have the ability not just to scrutinise and understand the financials but all also possess a wider grasp of the underlying data which truly comprise the business As an investor who has just acquired a stake in a new business I want a CFO who can manage the transition and stay ahead of my expectations Most of all a CFO should impress upon the companyrsquos shareholders a new way of doing business The first 100 days of an acquisition are said to be the most important During this period the CFOrsquos worth will be established when the new financial plan is due and the platform for the next five years of growth is presented
A CFO should man-age the tran-sition stay ahead of expectations and impress upon the companyrsquos shareholders a new way of doing business
Investment Volume By Sector Since 2006
Investment Volume By Sector in 2013
Source Zawya private Equity Monitor
1
3
30
17
3
28
3
4
6
4
6
5
17
9
9
6
9
5
8
6
6
2
3
10
Education
Education
Information Technology
Information Technology
Other
Other
Telecoms
Telecoms
Media
Media
Transport
Transport
Oil amp Gas
Oil amp Gas
Healthcare
Healthcare
Consumer goods
Consumer goods
Food amp Beverages
Food amp Beverages
Leisure
Leisure
Manufacturing
Manufacturing
ANALyTICS
Private Equity
2000857 NBAD ratibi mag ad 200x268 Finalindd 1 92514 1017 AM
46 wwwthecfomecom
THE FUTURE OFACCOUNTING EDUCATIONAddRESSINg THECOMpETENCY CRISIS
Have you ever stopped to think about how the accounting profession has changed since you graduated from college Recent graduates can answer this question by reflecting on the last two or three years whereas for other more seasoned professionals answering this question requires a bit more thought and memory searching Indeed we can all think of ways that the field of accounting is remarkably different today from the one we likely envisioned during our college daysmdashregardless of which decade we each donned our cap and gown This gradual transformation of the accounting profession leads to two important questions related to competencies bull Which competencies are important for success inaccounting todaybull Were these competencies consciously developed as partof your accounting degree programme
We suspect that more than a few of you would answer ldquonordquo to the second question Put another way our profession may be facingmdashmore so than at any time in the pastmdasha ldquocompetency crisisrdquo that is a gap between the competencies needed for professional success and those taught in our college classrooms today We propose a three-pronged strategy or ldquogame planrdquo for overcoming this competency crisis and in turn better preparing accounting graduates for the challenging world they will face First all of us accountants need to understand the changes that have already taken place in our profession and perhaps more importantly anticipate the changes that are on the horizon Second we need to educate ourselves and future generations of accountants so that as a collective group we can deliver the expanding set of competencies demanded in todayrsquos dynamic organisational
contexts Third as professional organisations and as individuals we need to think beyond ourselves by asking How can I (or we) help the accounting profession address the competency crisis
A Shift Toward Integrated ThinkingMany articles and white papers have been written that describe in detail the changes that have occurred in our profession over the last few decades but for our purposes wersquod like to distill these changes down to one crucial idea How does the accounting function add value to an organisation Accountants have evolved from support-oriented personnel who hand off information to others who actually make decisions into business partners who ldquohave a seat at the tablerdquo with managers
By peter C Brewer James E Sorensen CpA CgMA and david E Stout
47wwwthecfomecom
1048576bull What regulatory risks mayaccompany the proposal
1048576bull What social and environmentalfactors will we face if for example the proposal requires investing in overseas operations
1048576bull What types of employeeresistance may arise if we implement the proposal and how will we overcome the root causes of any such resistance
1048576bull Can and how should we valuefuture options associated with the proposal such as expanding or contracting the investment over time as new information becomes available
1048576bull Should we use debt or equity tofund the proposal
In short accountants have evolved to become integrated thinkers who enable EPM by partnering with managers across the organisation to add value Yet as EPM has gradually become the centrepiece of our professionrsquos value proposition accounting education hasnrsquot done enough to embrace it To overcome this gap wersquod like to further suggest that the concepts of competency integration and EPM need to come ldquofront and centrerdquo as we move forward in educating the next generation of successful accounting practitioners
Accounting Education No Longer on the SidelinesRecently a task force consisting of members of IMAreg (Institute of Management Accountants) and members of the Management Accounting Section (MAS) of the American Accounting Association (AAA) addressed the competency issue How should accounting education change fundamentally to help close the competencies gap The efforts of the task force led to
cash flows and how to apply discounted cash flow (DCF) decision models such as net present value (NPV) is of foundationalmdashsome might say critical mdash importance But integrated thinkers draw on an understanding of organisational strategy coupled with a broader set of competencies (beyond what might be considered technical or foundational knowledge) when making these types of decisions For example they consider how behavioural issues may influence the capital investment decision-making process Perhaps the financial estimates contained in the NPV analysis are too optimistic because the manager who prepared the numbers has a vested interest in seeing the project approved Decision makers also need to consider issues such as leasing vs buying a capital asset and the corresponding impacts on the financial statements and ratios that are tracked by investors and lenders What nonfinancial factors are associated with the proposed investment Add in the tax consequences of capital investment decisions coupled with the need to maintain internal control over any new business processes tied to these decisions and the need to think in an integrated fashion across a variety of accounting competencies becomes apparent
Furthermore becoming a true business partner with managers across the organisation requires more than simply integrating various accounting competencies It also means thinking like a business manager or a chief executive officer (CEO) Returning to the capital budgeting example an integrated thinker will ask questions such as
across the organisation Together they formulate and plan strategies then participate in collaborative decision-making processes that execute those strategies in a manner that adds stakeholder value Said another way accountants have evolved to become enterprise performance managers This shift in our orientation from a support function to an enterprise performance management (EPM) role has enormous implications for defining the determinants of success within our profession the most important of which involves becoming collaborators and ldquointegrated thinkersrdquo Take for example a common but important business decision process capital investment analysis Certainly technical knowledge regarding how to estimate relevant after-tax
48 wwwthecfomecom
expanding capital budgeting discussions to include financial statement impacts tax consequences and internal control issues integrates topical coverage across the External Reporting and Analysis Taxation Compliance and Planning and Assurance and Internal Control competencies shown in Figure 1
Third accounting curricula can incorporate a broader set of management competencies For example evaluating capital investment proposals from the perspectives of change management (Leadership) social and environmental issues (Ethics and Social Responsibility) regulatory concerns (Governance Risk and Compliance) and capital structure (Additional Core Business Competencies) brings a CEOrsquos perspective to the decision-making process
Fourth accounting curricula should include foundational competencies such as proficiency with spreadsheets and written and oral communication In the context of capital budgeting this may include asking students to use Microsoft Excel to perform a sensitivity analysis and then to present their findings to the entire class
Working to Fix the ProblemAt this point although you may agree with us that therersquos a competency crisis within the accounting profession you may be wondering What does this have to do with me What can my organisation do to help address this so-called competency crisis The answer a lot Practice partners and academic partners can help the accounting profession overcome the competency crisis That said letrsquos take a closer look at the role of practice partners first
improvement) and accounting competencies (external reporting and analysis planning analysis and control taxation compliance and planning information systems assurance and internal control and professional values ethics and attitudes) Of critical importance to the framework is the assumption that the set of competencies contained in Figure 1 would be developed and integrated over time through a blend of formal education (including continuing education) training and job experience
What levels of integrationmdashon the road to developing integrated thinkers in accountingmdashare possible First accounting educators can integrate within a single accounting competency So referring back to our capital budgeting discussion teaching computational models such as NPV analysis coupled with a review of various behavioural issues associated with capital investment decisions would be an example of integrating within the Planning Analysis and Control competency listed in Figure 1
Second professors can integrate across accounting competencies For example
a recently published article that contains a proposed framework for accounting education reproduced here as Figure 1 The framework is general in the sense that itrsquos meant to apply to all accounting students not subgroups based on career specialisation such as tax assurance services corporate finance and the like Itrsquos based on the idea that accounting educators can better prepare students to deliver our professionrsquos EPM value proposition through integrated competency-oriented curricula (For more see ldquoFocusing Accounting Curricula on Studentsrsquo Long-Run Careers Recommendations for an Integrated Competency-Based Framework for Accounting Educationrdquo in the May 2014 edition of Issues in Accounting Education)
A glance at Figure 1 reveals three levels of competencies foundational competencies (communication ability to leverage technology and analytical thinking and problem solving among others) broad management competencies (including leadership ethics and social responsibility and process management and
Proposed Competencies-based Framework for Accounting Education
FOUNDATIONALCOMPETENCIES
ACCOUNTING COMPETENCIES
BROAD MANAGEMENT COMPETENCIES
leadership
ExternalReportingamp Analysis
PlanningAnalysis
amp Control
TaxationComplianceamp Planning
InformationSystems
Assuranceamp InternalControl
ProfessionalValues Ethics
amp Attitudes
Communication
Quantitative
Interpersonal
Technological
Analytical Thinking ampProblem Solving
Ethics amp SocialResponsibility
ProcessManagement ampImprovement
GovernanceRisk amp
Compliance
AdditionalCore BusinessCompetencies
Although you may agree with us that therersquos a competency crisis within the account-ing profes-sion you may bewondering What does this haveto do with me
A practice partner should be or become a CMAreg (Certified Management Accountant) maintain professional certification by completing required Continuing Professional Education (CPE) hours and regularly read the IMA publications Strategic Finance and Management Accounting Quarterly
In addition there are a number of excellent resources that deal with topics covered in this article and that IMA makes available to its members
Strategic Finance PowerPacks(wwwimanetorg SFPowerPacks) These are resources focused on contemporary topics similar to those discussed earlier Current offerings include Risk Management Strategic Planning IT Skills amp Software and Internal Controls Each PowerPack includes a combination of resources such as research studies articles and links to webinars
Statements on Management Accounting (SMAs)(wwwimanetorgresources and_publicationsresearch_ studies_resourcesstatements on_management_accounting aspx) SMAs represent monographs classified into one of the following six categories Leadership Strategies and Ethics Technology Enablement Strategic Cost Management Business Performance Management Finance Governance Risk and Compliance and the Practice of Management Accounting Multiple items are available within each category For example the Practice of Management Accounting category includes (among other items)
49wwwthecfomecom
the Definition of Management Accounting and Implementing Shared Service Centres
Research Studies (wwwimanetorgresources_and_publicationsResearch_Studies_and_ResourcesAll_reportsaspx) The ldquoThoughtLeadershiprdquo section of IMArsquos website includes research covering a broad range of issues classified into seven categories For example under the ldquoGlobal Business Environmentrdquo category the following two research reports are available ldquoKey Differences Between IFRS and US GAAP Impact on Financial Reportingrdquo and ldquoCosting Methodologies and Cost Management Practices in the Peoplersquos Republic of Chinardquo
IMA Leadership Academy (www imanetorgprograms_events leadership_academyaspx) As described on the IMA website this programme is designed to assess a memberrsquos leadership status enhance that individualrsquos skills (principally through monthly webinars) and recognise leadership achievements These benefits are free to members
How You Can Make a Bigger Impact In addition to attending local regional and national IMA meetings consider inviting a small group of students to each chapter meeting This could be a wonderful (and relatively low-cost) option for mentoring aspiring accountants and finance professionals providing networking opportunities and introducing students to cutting-edge issues regarding the practice of management accounting Joining a university accounting
advisory group may be another way to influence the development of EPM in that institutionrsquos curriculum design
Other methods to enhance EPM in your organisation include (1) forming user groups within your company your local IMA chapter or your industry to review and share EPM experiences (2) encouraging advancement in the firm to be linked to EPM proficiency (3) focusing your companyrsquos recruiting efforts on candidates who display a background in andor understanding of EPM and (4) organising cross training within your company to enhance a mutual understanding of each otherrsquos respective roles
Finally visit the Competency CrisisTM website (http competencycrisisorg) set up by IMA to unite the accounting and finance constituencies professionals students employers academics and professorsmdashand explore competency issues through the lens of each stakeholder group The site is designed to ldquoencourage a discourse spur action and create a community dedicated to resolving the serious crisis of competency present in the professionrdquo Special sections of the website are devoted to educators students and employers professionals
Our Partners in Education Much like a practice partner an academic partner should be or become a CMA maintain professional accreditation by completing CPE hours and regularly read IMArsquos publications
Academic members of IMA can pursue and actively promote the CMA programme at their respective institutions
50 wwwthecfomecom
IMArsquos website contains helpful resources including an exam content overview content specification outlines for each of the two parts of the CMA exam and learning outcome statements The current exam covers some of the professional competencies represented in Figure 1 A summary of changes to exam content which will be effective in January 2015 is provided on the IMA website in News amp Media Relations which is located under ldquoAbout IMArdquo (See the press release dated March 24 2014) Other helpful resources include ldquoICMA Announces CMA Exam Content Changesrdquo in the April 2014 issue of Strategic Finance as well as ldquoManagement Accounting Career Readiness Shaping YOUR Curriculumrdquo
These forthcoming changes are based on the most recent IMA study of the knowledge and skills needed by management accountants from the view of CFOs controllers and other accountingfinance professionals from around the world
Also consider taking a group of your students to the IMA Student Leadership Conference held each November The Conference provides excellent networking opportunities for you your students and practicing professionals Students can learn firsthand from Conference presenters the challenges and opportunities facing finance and accounting professionals today
Moreover if your institution doesnrsquot currently have an IMA Student Chapter consider forming one One of the authors of this article David Stout reinstituted the student chapter at his school (Youngstown State University) after travelling with a group of his students to the IMA
Student Leadership Conference in Cleveland Ohio Through an IMA Student Chapter on campus students are able to work closely with a sponsoring local IMA chapter and bring to campus speakers who are experts in a wide range of topics including those discussed earlier in this article Each year student chapters compete for an Award of Excellence (AOE) and recognition as an Outstanding Student Chapter In addition IMA student members are able to engage in networking activities leadership training mentoring and community service programmesmdashall through their local chapter
You also might consider volunteering to serve as a Campus Advocate In this role yoursquoll represent IMA in all major matters of interest to your students (scholarship opportunities starting a student chapter mentoring and the like) and to your institution (for example leveraging IMA resources to advance the relevancy of the accounting curriculum use of educational case studies published in the IMA Educational Case Journal and access to IMArsquos ethics curriculum)
And if you havenrsquot yet done this ask IMA to endorse your accounting programme (information is available at www imanetorgeducator_resources indexaspx) This programme is designed to identify business curricula that meet the quality educational standards required to prepare students to earn the CMA designation Endorsement is based on an analysis of the curriculum and topics covered on the two-part CMA exam Currently 12 programmes have been endorsed
Finally if your school has an IMA Student Chapter consider participating in the annual IMA Student Case Competition where students are asked to propose a solution to a real world problem (Cases are solicited each year by Raef Lawson IMA VP of Research and Policy and IMA Professor in-Residence) Finalists make their presentations at IMArsquos Annual Conference amp Exposition before a set of judges consisting of accounting faculty members and practitioners Each year a new case is published in the August issue of Strategic Finance for students to use for that yearrsquos competition
Working TogetherIn this article we have summarised the changes that have affected the accounting profession and provided a competencies-based framework for guiding accounting educators in responding productively to those changes As a management accountant you know that implementing change in any organisation let alone within an entire profession never comes easily To be successful in overcoming our professionrsquos competency crisis IMArsquos practice and academic partners will need to assume leadership roles in defining enterprise performance management as the cornerstone of the accounting professionrsquos value proposition
This article was orginally published in the August 2014 issue of Strategic Finance It appears here with the permission of The Association of Accountants and financial professionals in Business
We need to educate ourselvesand future generations of account-ants so that as a collec-tive group we can deliver theexpanding set of com-petenciesdemanded in todayrsquos dynamicorgani-sational contexts
THE POWERFUL AND THRIFTY OFFICE ALL-ROUNDERS
The new ECOSYS M3560idn series will astound you With their print speeds of up to 60 pages per minute they are among the most productive A4 bw multifunctionals on the market We nevertheless managed to keep their ecological footprint and total cost of ownership impressively low by using our well-known ECOSYS technology and equipping the devices with our renowned long-life components The result Not only less waste and lower maintenance costs but also less hassle for you and all your colleagues You will also greatly appreciate the many customisation possibilities of the devices equipped with KYOCERArsquos open solution platform HyPAStrade as it allows you to tailor the device to your needs So yes we are proud of our new range of MFPs and can hardly wait to share their numerous benefits with you
For more information please contactKYOCERA Document Solutions Middle East | PB Box 500817 DubaiUAE | Tel +9714 4330 412 | Fax +9714 4231 944KYOCERA Document Solutions Europe BV - wwwkyoceradocumentsolutionseuKYOCERA Document Solutions Inc - wwwkyoceradocumentsolutionscom
52
ACCAINTERVIEW
wwwthecfomecom
GLOBAL By ASSOCIATION
across the region from our key employers and learning provider partners to our active and growing student and member base I want to understand their challenges and priorities and how ACCA can work with them to help support the economic success of the region
What can a CFO gain from working with ACCAThe ACCA qualification is about complete finance professionals For CFOs it brings the technical knowledge vital to business success complemented with the strategic management skills and ethical competence crucial to an organisationrsquos success As an organization ACCA in the UAE brings CFOs access to that local and global network of peers and expertise along with our leading research and insights that help them to keep up to date on the issues that matter most
Are there any initiatives in place to leverage the recently announced partnership with AAA
How are the ACCArsquos many years of activity being applied to the Middle EastACCA has now had a presence in the UAE for well over a decade During that time we have established strong relationships across the Middle East epitomised by the recent signing of our Strategic Partnership with AAA As a national body in choosing to partner with ACCA they recognised the local and global perspective we bring We are continuing to work with students members and employers across the Middle East to build their networks knowledge and business success through events research and insights and access to a growing number of online resources
Which initial priorities are among your key aims upon joining the organisationrsquos efforts in the UAEIn the first few months I hope to build on the success of the team in the UAE My priority will be to meet as many of our key stakeholders
The Association for Chartered Certified Accountants (ACCA) provides its services across a number of international borders The recent announcement of Lindsay Degouve de Nuncques as the new head of the Associationrsquos UAE chapter further exemplifies the ACCArsquos reach based on her previous work in the UK Nuncques shares here what she brings to the Middle East and just how globalisation has driven her ascent
53
ACCAINTERVIEW
wwwthecfomecom
The strategic partnership with AAA is the first of its kind in the region Students who complete the UAECA qualification will be entitled to both the AAA and ACCA designations and ACCA members in the UAE will also be eligible to apply for AAA membership This is a very exciting development in the market and together AAA and ACCA will be working to deliver maximum value to all our stakeholders from this partnership As we launch the UAECA qualification this activity will start in earnest
Which key industries will you be spotlighting in the Middle East in the months aheadOur experience of working across all sectors and levels of organisations globally gives ACCA a unique insight into all types of industries We will continue to be working with employers across the spectrum in the months ahead to help them gain the insight and make the connections that drive businesses to succeed at whatever they do
ldquoThe ACCA qualification is about complete finance professionals For CFOs it brings the technical knowledge vital to business success complemented with the strategic management skillsrdquo
54
Islamic FinanceMARKET OUTLOOK
wwwthecfomecom
In its 10th instalment the Forum is hosted in Dubai as a direct result of the UAErsquos increasing importance in the world of global Islamic finance
THE WORLD ISLAmIC ECONOmIC FORUm LANDS IN DUBAI
In Dubairsquos continued quest for leading the world across a range of spectrums the Emirate accelerated its desire to become the worldrsquos leading hub for Islamic finance by hosting the 10th installment of the World Islamic Economic Forum (WIEF) Delegates from dozens of countries attended to take part in a three-day event held at Madinat Jumeirah which rests alongside Dubairsquos gleaming coastline Held under the patronage of His Highness Sheikh Mohammed Bin Rashid Al Maktoum the
Vice President and Prime Minister of the UAE and Ruler of Dubai key speakers included The Honorary Dr Zeti Akhtar Aziz Governor of the Central Bank of Malaysia HE Kairat Kelimbetov Governor of the National Bank of Kazakhstan The Honorary Datorsquo Sri Mohd Najib Tun Abdul Razal Prime Minister of Malaysia and HE Xavier Bettel Prime Minister of the Grand Duchy of Luxembourg
Launched in 2006 in Malaysia WIEF has grown in tandem with the increased
Delegates from dozens of countries attended WIEF to take part in the three-day event
sophistication and reach of Islamic finance After a successful event in London in 2013 amidst increased interest in Islamic finance across Europe WIEF relocated to Dubai where the local business structure is keen to host halal finance
Said Hamad Buamim President and CEO Dubai Chamber of Commerce and Industry co-organisers of the event ldquo[The forum] is the start of a new chapter of cooperation between Dubai and the world as part of
55
Islamic FinanceMARKET OUTLOOK
wwwthecfomecom
Dubai Capital of Islamic Economy visionhellipestablishing a unified regulatory authority to provide the framework for standards across halal industries will significantly accelerate growth Likewise we need to see increased cooperation and partnership between the public and private sectors This is already happening with great success here in Dubairdquo
The order of global cooperation needed to facilitate growth across the Islamic finance world was more than apparent at WIEF based on how many differing nations were represented at the event The exhibitorrsquos hall was populated with a number of key Malaysian stands representative of the Southeast Asianrsquos ranking as the global leader in Islamic finance Also present were companies from Saudi Arabia also a key locality in the worldrsquos halal industries An interesting yet prescient presence was of attendees from South Korea a nation which is eager to participate in Islamic finance and will be hosting the WIEF Pyeongchang Roundtable in December 2014
ldquoGangwon is a province located in Korea which is very interested in new business opportunities Wersquove realised the strength of the Islamic economy and have come here with many different companies The first type is based in real estate investment We also have companies which want to export their products to the Islamic economy based on their halal qualities And Gangwon will also be hosting the Winter
ldquoKorea is very interested in the strength of the Islamic economy and wants to export its products based on their halal qualitiesrdquo
56 wwwthecfomecom
$247trillionProjected value of halal products industry in lsquo18
125Muslim percentage of global tourism expenditure
STAT FACTSOlympics in 2018 and are presently seeking investments for this as wellrdquo said Seong-hun Kim a member of Gangwon Province Governmentrsquos Export Support Team
Dubai proved to be an excellent place for the event considering how well the UAE is able to so regularly corral international cooperation A key sign of this was witnessed recently when Luxembourg now considered the third most important base for Islamic finance globally opened a finance office in Dubai International Finance Centre The European nation also opened a euro200 sukuk earlier this year which was quickly oversubscribed
The prime minister of Luxembourg offered the WIEF audience a riveting speech which detailed just how international the Forum has become whilst encouraging more of the world to support the growing influence of Islamic finance
Said Bettel ldquoWe need to innovate more economic partnerships for growth We sometimes need to reengineer relationships but also have to make sure these relationships remain sustainable Growth in one country also brings growth to others as long as this is guided by free market initiatives Free trade and free flow of capital combined with innovation leads to prosperity We have all gathered here in Dubai to explore the future of Islamic finance and Luxembourg is also a pioneer of Islamic finance in Europe The Islamic financial sector has a major role to play in continued global growthrdquo
The Islamic Corporation for the Development of the Private Sector (ICD) is based in the Kingdom of Saudi Arabia where it manages an international fund worth $2 billion half of which is available for subscription With shareholders in more than 50 countries and a sovereign sukuk fund recently launched in West Africa the ICDrsquos CEO Khaled M Al Aboodi attended WIEF this year excited to participate in the global event
How does the ICD approach its attendance at the World Islamic Economic ForumI think the Forum is one of the best places for discussing the financial issues of the OEC member countries It has been around for ten years and has grown to become a very important platform for discussion Wersquore here to attend and listen but also to network Itrsquos a great networking platform and a place to share views whilst letting everyone know what we have to offer
How has Islamic finance changed over the yearsOf course itrsquos growing in a large scale Some of it actually needs more support particularly with respect to regulatory frameworks Wersquore trying to partner with many international organisations like the IMF to try to provide support to countries to adapt regulation for Islamic finance Sukuk issuance is one of the biggest issues that needs to be addressed because there is a huge amount of liquidity in this arena Due to issues related to regulation sukuk issuance can be costly But with the regulation we are confident it will be on a level playing field with other forms of finance Compliance is a major area where more work can be done The Forum started with a roundtable on sukuk which shows how helpful WIEF has been over the years
What type of work does ICD do internationallyICD helped the government of Senegal to issue the first sovereign sukuk This was successfully issued last summer Progressing in this manner is something wersquod like to see continue across West Africa in order to utilise its resources with aiding development in the region in mind
QampA WITH KHALED M AL ABOODI CEO OF ICD
Islamic FinanceMARKET OUTLOOK
OFFICIAL SPONSORS
ENDORSED BY OFFICIAL HOST OFFICIAL
COMMUNICATIONS PARTNER
MEYDAN HOTEL DUBAI UAE19 - 20 NOVEMBER 2014
WOMENOMICSthe next emerging market
TAKE PART in making change happen UNITE with business and through leaders from across the globe
PARTICIPATE to the expansion of a modern and inclusive economy
58
Gautam PradhanINTERVIEW
wwwthecfomecom
SUCCESS BEyOND BOUNDARIES
in other management roles such as strategic decision making mentoring and leading efficiency and productivity across a range of other departments and functions as well as a being a catalyst in ensuring that the boardrsquos vision for the organisation is achieved
A significant percentage of NMDCrsquos shares are owned publicly Does the CFO play a role in balancing the interests of the shareholdersAs a CFO balancing the shareholdersrsquo interests is definitely part of my responsibility In order to achieve this goal there needs to be a careful evaluation of each decision while keeping the short-term and long-term goals of the company in mind At NMDC we actively implement a system where we utilise a balance scorecard as a method of ensuring that all our primary objectives are met yet at the same time continuously enhance our relationships with our shareholders
NMDC has completed various projects across the Emirates Are there plans to move abroadAs NMDC moves towards becoming an international player our strategic expansion plans are focused in areas within the GCC region and India In line with this strategy we opened
How has a company with such a unique set of deliverables grown so consistently over the yearsOur organisation strongly believes that the core to our strength is the people process and equipment A strategic decision led by our Board of Directors and the senior management has been implemented that required us to consistently invest in these three aspects to help expand our business beyond the territorial boundaries of the UAE and at the same time enhance what we can offer which is relevant to these segments We attribute our success to the efforts which every employee contributes We also strongly believe in the ldquoWe can make it happenrdquo principle The management raises the index of performance while setting SMART objectives within the organisation and encouraging the employees to achieve them
How has your position as the CFO changed over NMDCrsquos 35 years of operationAs the market evolves and business dynamics change my role as the CFO has become complex and more challenging A few years back I was mainly focused on bookkeeping accounting and other financial responsibilities such as arranging bank facilities But moving forward I became more involved
The UAE is progressively becoming a hub for world-class infrastructure The country has duly impressed the rest of the globe with noteworthy land developments showcased across the emirates Among the remarkable landscapes found in Abu Dhabi are the Corniche Beach Yas Island and Sir Baniyas Island Behind these successful projects is NMDC the dredging division of Abu Dhabi National Oil Company (ADNOC)
In an interview with CFO Magazine Gautam Pradhan Chief Financial Officer NMDC shares an exclusive look into the companyrsquos international blueprint for growth and his dynamic role as a strategic leader of one of the best in dredging and marine construction in the Middle East
59
Gautam PradhanINTERVIEW
wwwthecfomecom
branches in Qatar Bahrain Oman and India This has paid rich dividends recently as projects of strategic importance are bagged in Qatar and Bahrain Furthermore NMDC (UAE) has recently played a key role as a leader of an international consortium with Royal Boskalis Westminister (Netherlands) and Jan De Nul Group (Belgium) for the awarding of the Suez Canal Dredging project in Egypt Moving forward we have devised a strategic approach that will enable us to play a key role in the development of Indiarsquos marine infrastructure
What are the global strategies that are part of the CFOrsquos responsibilitiesAs CFO understanding the macro economic scenario risk analysis and mitigating those risks are all a part of my responsibilities I also have to have a proper comprehension
ldquoA few years back I was mainly focused on financial responsibilities moving forward I became more involved in strategic decision making mentoring and leading productivityrdquo
Gautam PradhanINTERVIEW
60 wwwthecfomecom
of the challenges faced by the company in terms of dealing with foreign contracts direct and indirect taxes and hedging and managing the integration process These are essential to enhance shareholders wealth and mitigate undue risk
How significant is accountancy for NMDC in its operations Why exactlyAccountancy is the lifeline of any company it does not only record the finances it also reflects the health of the organisation The MIS reports analysis trends and statistical information go a long way toward effectively providing
the diagnostic approach essential for the company
How have NMDCrsquos environmental activities helped the companyrsquos bottom lineNMDCrsquos work is well-synchronised with our environmental activities and specifically with nature Our activities are closely linked to sand and water and we view such activities with strategic importance Projects such as increasing water supply to mangroves and beach nourishment help us support the environmental activities while adding to our bottom line
ldquoAccountancy is the lifeline of any company it does not only record the finances it also reflects the health of the organisationrdquo
A burgeoning slice of Abu Dhabi coastline
The largest business awards
in the GCC30th November Dubai
nominate now at wwwstarsofbusinessawardscom
Stars of Business has become an iconic awards brand like no other in the region It recognizes the very best SMEs across 26 business categories Itrsquos universally respected as scientifically assessed and unimpeachably judged
327000 SMEs across the UAE$234 billion estimated total revenue of the SME sector4974 Awards entries in 20131856 Individual company applicants
Presenting Partner Strategic SME Partner Gold Sponsor Gold Sponsor VIP Hospitality Partner Supporting Partner
Trade Facilitator PartnerTrade Credit PartnerLogistics Partner
Institutional Partner Institutional Partner Event Partner
OrganiserPublisherMedia Partner Media PartnerPort Authority Partner
62
David Allen INTERVIEW
wwwthecfomecom
What went into completing your bestseller ndash Getting Things Done (GTD)After twenty years of researching developing and implementing a methodology for achieving stress-free productivity based upon
thousands of hours spent desk-side with
some of the best brightest and busiest people in the world I decided to write the manual for it Thatrsquos what Getting Things Done is
What are the five phases of mastering workflowIn order to get
any situation under control so
you can focus you will utilise these five
steps Whether yoursquore managing your kitchen
or your company you will need to collect and capture what has your attention clarify what if anything to do about it organise it according to what it means to you review and reflect upon it in relation to
Todayrsquos evolving CFO is often caught between the world of business set-up generating revenue managing employees and building strong company infrastructure When can things actually get done What can one do to boost productivity and master workflow World-renowned business coach David Allen has the answers
PRODUCTIvITy PRINCIPLES WITH
DAvID ALLEN
63
David Allen INTERVIEW
wwwthecfomecom
those are greatly subvertedHow does one maintain a fair balance between the time spent planning and actually getting things doneYou simply need to spend just the amount of time you need to to trust that what you are getting done is the right thing to be getting done in the moment It takes as long as it takes to get to that point Why would you do anything less
How can one apply your core productivity and workflow principles to todayrsquos technologically driven environmentThe principles and their techniques are system-independent Whether you have meaningful input from the Internet your smartphone or a conversation in the hall you must engage with it equally Technology has simply increased the flow of input and ease of distraction in your world
There is a lot of talk about how connected wersquove become and how connectivity is driving tremendous business growth Does connectivity actually come with its fair share of downsides
Connectivity is obviously a two-edged sword We can have intimate productive and creative interaction instantly with someone on the other side of the world and we can just as easily be distracted and seduced into those engagements when they may not be the best use of our attention and resources Donrsquot shoot the medium Itrsquos all simply bringing attention to your clarity of direction and priorities or lack thereof
Could you share a few quick tips with our readers to instantly boost productivityWrite everything down that has your attention Decide the very next actions required to get closure on all of them Any next actions that require less than two minutes do instantly Park reminders of everything else somewhere that yoursquoll see when you can do something about them
We are currently facing a massive information overload What are some basic principles you could suggest to mentally organise such large amounts of dataConstantly ask yourself Where am I going Whatrsquos important and rewarding to me Is this information
the whole and then engage your resources with intuitive trust
As a CFO how can you transfer efficient workflow management skills to your employees Itrsquos very difficult to legislate processes for individuals ndash you can really only hold them accountable for their results But if you are managing your own commitments and intersections with them with integrity and rigour it will automatically force your team to ldquostep up to the platerdquo in their own behaviours in order to meet your standards If you request their complete list of their company projects and they canrsquot produce it thatrsquos a sign theyrsquore not in control If they make a commitment to you that they havenrsquot kept thatrsquos data about their performance GTD is simply about good operational business practices
With so many planning and organising activities in your methodology is there a risk of losing spontaneity as a strategistThe reason for these best practices is to optimise freedom creativity and spontaneity Without them
ldquoBut if you are manag-ing your own com-mitments and intersec-tions with them with integrity and rigour it will automatical-ly force them to ldquostep up to the platerdquo in their own behaviours in order to meet your standardsrdquo
64 wwwthecfomecom
supporting that Park whatever you find potentially meaningful somewhere that is easy to access when needed
Being an entrepreneur is a non-stop job How do you ensure that you have an adequate work-life balance Pay attention to what has your attentionmdashwith regard to anything Your health relationships career finances etc Notice when something might be ldquooffrdquo and make good decisions about what you need to do to get it back ldquoonrdquo again
Does your work teach people to be efficient or effective In essence they are the same thing Effective choices are generated by efficiency on a higher level If you want to implement strategy most effectively it demands utilising your resources optimally which is efficiency
Does motivation actually improve quality of work or purely quantityDepends on the focus of the motivation You can be motivated to work harder and you can be motivated to work smarter
What is your favourite productivity mantra that
you implement in your day-to-day lifeUsing my own in-basket and note-taking devices to capture potentially meaningful and valuable ideas and soon afterwards clearing all of them out by deciding what to do about them if anything
Your books seminars and other work inspires many individuals and businesses Who is your personal inspiration or role model I have many about many different aspects of my life The only person though that I ultimately trust as my best guide is my higher self which I try to access as frequently and clearly as I can
Finally what advice would you give to current business owners and aspiring entrepreneurs looking to gain complete control of their life and businessCapture what has your attention clarify what you need to do about it to get it off your mind organise the inventory of all your commitments at all levels review and reflect on all of that regularly relax and trust your inner wisdom to engage with the most appropriate thing in the moment
ldquoIf you want to implement strategy most effectively it demands utilising your resources optimallyrdquo
David Allen INTERVIEW
APPSTECH TALK
wwwthecfomecom 65
mAxImISE BUSINESS lsquoON-THE-GOrsquo WITH THESE HANDy APPS
ipAd SpECIAL
SAMSUNG UNvEILS GALAxY NOTE EDGE
Network
AP
Display
OS
Camera
Video
Audio
Additional Features
GoogleMobile Services
Connectivity
Sensor
Memory
Dimension
Battery
The availability of service may differ by country All functionality features specifications and other product information provided in this document including but not limited to the benefits design pricing components performance availability and capabilities of the product are subject to change without notice or obligation
Samsung Galaxy Note Edge Product Specifications
25G (GSM GPRS EDGE) 850 900 1800 1900 MHz3G (HSPA + 42Mbps) 850 900 1900 2100 MHz4G (LTE Cat 4 15050Mbps) or 4G(LTE Cat 6 30050Mbps)May differ by country and carrier
27 GHz Quad-Core Processor
56 inch (1419mm) Quad HD+ Super AMOLED (2560 x 1440 + 160)
Android 44 (KitKat)
Rear Facing 16 Mega pixel Auto Focus camera with Smart OISFront Facing 37 Mega pixel camera with f19Rear Facing Camera HDR (Rich tone) Selective Focus Rear-cam Selfie Beauty face Virtual Tour Shot ShotampMore Dual CameraFront Facing Camera Selfie Wide Selfie
Codec H264 MPEG-4 H263 VC-1 WMV7 WMV8 Sorenson Spark MP43 VP8 Recording amp Playback up to UHD
Codec MP3 AACAAC+eAAC+ WMA AMR-NBWB Vorbis FLAC()() Ultra High Quality Audio (~192KHz 24 bit) support
Multi WindowUltra Power Saving ModeVoice Recorder (Normal Mode Interview Mode Meeting Mode Voice Memo)Download BoosterS Health 35Dynamic Lock ScreenBriefingEdge screen UX Revolving Interaction Immersive apps(Camera Video S Note)Ticker board Express me Quick Tools Night Clock etc
Chrome Drive Photos Gmail Google Google+ Google Settings Hangouts Maps Play Books Play Games Play Newsstand Play Movie amp TV Play Music Play Store Voice Search YouTube
WiFi 80211 abgnac (HT80) MIMO PCIeGPS GLONASS BeidouNFC Bluetoothreg v 41 (BLE ANT+)IR LED (Remote Control) USB20 MHL 30
Gesture Accelerometer Geo-magnetic Gyroscope RGB IR-LEDProximity Barometer Hall Sensor Finger Scanner UV Heart Rate Monitoring SpO2 (Dependent on market)
32 64 GB Internal memory + microSD slot (up to 128GB)3GB RAM
1513 x 824 x 83mm 174g
Standard battery Li-ion 3000 mAh Fast Charging (Adaptive Fast Charging amp QC20)
wwwthecfomecom66
APPSTECH TALK
AIR DISPLAY
SQUARE REGISTER
Using this app you can connect your iPad to your computer and use it as an additional screen While working on an important presentation or sales proposal you can extend or mirror your computer screen on your iPad This app is compatible with both Mac and Windows computers Note that to use this feature you have to install Air Display on your iPad and a separate free app on your computer The computer and iPad also need to be on the same Wi-Fi network in order to work in-sync
For Mac users the app allows you to connect to up to four screens ndash all at the same time
Apart from the ability to convert your iPad into a wireless display whatrsquos also attractive about this app is that it allows you to control your computer wirelessly using your iPad
This fantastic application can serve as a mobile point of sale for your business It allows you to accept credit card payments ndash including Visa MasterCard Discover and American Express A transaction fee of 275 is charged for every time you swipe a card The sale amount is transferred to your account within two working days
Once you download the app you can sign up and register for a unique card reader solution called the lsquoSquare Readerrsquo (this is free) Square Reader encrypts all card details and ensures that the transaction is secure Once you receive your Square Reader you can connect it to your device and are all set
The application also offers added features such as transaction history connecting to a receipt printer creating employee logins and more
AED 3699
PRICE
Free
PRICE
wwwthecfomecom 67
APPSTECH TALK
DOCUSIGNHave you ever been in a situation where your employees need you to urgently sign a contract but arenrsquot able to physically reach you in time DocuSign solves this problem with its easy-to-use eSignature feature In three easy steps you can sign important documents and securely send them to your intended recipient
First you have to import the document to your device ndash this could be from Dropbox Google Drive or another select applications You then place your signature or any other important legal information you need to include such as initials Once you have finished working on the document send it back via e-mail
Whatrsquos particularly great about DocuSign is the great emphasis it puts on security ndash so that users donrsquot have to worry about getting into any legal trouble
Use DocuSign and never miss a deadline again
Free for basic version
PRICE
MPAYAn initiative by the Dubai eGovernment Department mPay is a simple application that allows you to make important payments Once yoursquove signed up and entered your payment details you are good to go You can pay your Dubai Electricity and Water Authority (DEWA) bills Etisalat utility bills Dubai Police fines Recharge SALIK and much more
A handy feature is its lsquoauto-rechargersquo option which you can use to set automatic payments
Free
PRICE
Opinion CIMAPERSONALITIES
wwwthecfomecom68
NEW HORIZONSBy geetu Ahuja Head of gCC at CIMA
The days of the traditional accountant working within a small community in a small town in a small market have long gone CFOs are now being referred to as Chief Frontier Officers as they travel from market to market overseeing their offices overseas This new expanded role has distinct advantages for both the company and the CFO who gain new skills and new insights from foreign branches a single hand at the helm of many markets provides business perspectives on a global scale and benchmarks across the board
On a personal level working abroad also has huge importance Robert Walters the specialist professional recruitment consultancy recently conducted a survey
of almost 2200 employees across a variety of professions exploring a number of topics which ranged from working practices and attitudes to careers The results highlighted some notable trends particularly for finance professionals
In career progression for example the survey showed that 50 of all accountants see working abroad as either lsquoessentialrsquo or lsquoextremely usefulrsquo to furthering their prospects more than banking professionals lawyers and IT workers ndash a strong indication of how accounting professionals are thinking about their future either within their existing company or with opportunities elsewhere
Accountants with globally recognised qualifications obviously have a greater chance of gaining some experience abroad and the lsquoGen Yrsquo professionals in particular seem ready to pack their bags In a CIMA study conducted in the UK last year over a third of those seeking employment in the
next two years will prioritise opportunities abroad over those in their home countries many of them enticed by the career incentives offered by the Middle East
How quickly can they land what seems to be their dream job What are the realities It may be that the move is simply from one branch to another and the only significant difference is a view from the window but for those expanding rather than changing their roles we have seen a very real need for a depth and breadth of knowledge never needed before
As geographical boundaries are pushed ever-wider a CFOrsquos responsibilities are pushed with them For many finance executives the understanding of their own patch of land is no longer enough they now have to be aware of foreign markets up to speed with foreign trends and au fait with foreign laws There is a need for a new commercial awareness in geography as well as philosophy
As geographical boundaries are pushed ever-wider a CFOrsquos responsibilities are pushed with them
John vargheseQampA
wwwthecfomecom 69
BUSINESSSET UP YOUR
IN THE UNITED ARAB EMIRATES
TO
WAREHOUSESOFFICES INDUSTRIAL LANDFLEXI
Quick and easy company set-up
Less than an hour drive from Dubai
Complete cost-effective packages including licences and facilities
100 foreign ownership
Zero income and corporate taxes
Eligibility for UAE Residence Visa
BUSINESS SET-UP SOLUTIONS STARTING FROM AED 15000 (USD 4000)
RAK FREE TRADE ZONE PROVIDES
RAK Free Trade Zone Authority - Government of Ras Al KhaimahUAE (Ras Al Khaimah) Tel +971 7 2041111 (Dubai) Tel +971 4 7041875 (Abu Dhabi) Tel +971 2 6994888
Germany (Cologne) - Turkey (Istanbul) - India (Mumbai)
Call +971 7 204 1111 Visit wwwrakftzcom Join rakftz
CONTENTS
46
52
54
66
58 62 68
CompetencyCrisis
lindsay Degouve de Nuncques
WIEF
TechTalk
NMDC David Allen opinion
The Institute of Management Accountantsaddresses a looming gap
A new face heads up the ACCArsquos UAE chapter
The World Islamic Economic Forum sets up in Dubai for its 10th anniversary
The best iPad apps for the
global finance professional
Shaping the worldrsquos coastlines as seen by the CFO
The business coach and best selling author offers more of his recipe in a QampA
Geetu Ahuja of CIMA on the essentials of globalisation
Emerging markets CIMA ERP Private Equity30 34 38 42A how to for investment in the worldrsquos most promising localities
The Institute revamps its reknowned syllabus
IT business solutions are evolving in line with the role of Chief Financial Officer
Buyout firms demand more stringent financial data
ldquoOur qualification is about complete finance professionalsrdquo
38
4234
98
CFO InfographicPROJECTIONS
wwwthecfomecomwwwthecfomecom
CFO InfographicPROJECTIONS
Optimism
Risks and opportunities
Growth and expansion
CFOGLOBALISATIONINFOGRAPHIC
SOURCES Michael Page International Global CFO Barometer 2012 by Michael Page International Deloitte CFO Signals ndash Q1 2014 Deloitte CFO Signals Q4 2013 Robert Half CFO Insights
4738
44
36
55
72
39
26
42
20
95
71
35
68
CFOs express rising
optimismof CFOs are
optimistic about financial prospects
of CFOs believe its a good time to take greater risks
of CFOs believe financial risk management policies are not significantly aligned to cover market risks
see new product or service launches as a
key growth opportunity
40are hopeful about organisational growth opportunities
of CFOs are now more optimistic than in the last quarter
of CFOs are now more involved in risk management
of CFOs will pursue organic expansion
consider pricing pressures as the top growth inhibitors
are positive about the future state of the Indian economy
of CFOs are more optimistic than
last quarter
of CFOs willing to take greater risks
believe international expansion will play a
major role in in business development
expect MampA activity to rise over
the next year
rate this economy as good or very good
expect a major merger or acquisition
NORTH AMERICA
INDIA
MIDDLEEAST
SOUTHEASTASIA
UK
PACIFIC
WOMEN AS CFOS ( OF FEMALE CFOS IN OF RESPONDENTS)
( of respondents surveyed)
of CFOs spend significant amounts of time as strategists for company growth
76
AFRICA
AUSTRALIA
5 18
Lowest Highest
of CFOs with total annual compensation including bonus and benefits of over US$255000
of CFOs younger than 35 years old when they attained their position
Europe
Europe
13
Asia
14
SouthAmerica
29
Pacific
30North
America
49
49
NorthAmerica
21
SouthAmerica
Asia
43
31
Pacific
30
In North America 39 of CFOs are older than 50 years
On average CFOs worldwide attain
their position between the ages
of 30 and 39
of CFOs are confident about credit availability in the future
4831
73of CFOs feel that the finance function will play a larger role in their companyrsquos development and execution of business strategy
51of CFOs are satisfied with the performance of their finance function
56
98
CFO InfographicPROJECTIONS
wwwthecfomecomwwwthecfomecom
CFO InfographicPROJECTIONS
Optimism
Risks and opportunities
Growth and expansion
CFOGLOBALISATIONINFOGRAPHIC
SOURCES Michael Page International Global CFO Barometer 2012 by Michael Page International Deloitte CFO Signals ndash Q1 2014 Deloitte CFO Signals Q4 2013 Robert Half CFO Insights
4738
44
36
55
72
39
26
42
20
95
71
35
68
CFOs express rising
optimismof CFOs are
optimistic about financial prospects
of CFOs believe its a good time to take greater risks
of CFOs believe financial risk management policies are not significantly aligned to cover market risks
see new product or service launches as a
key growth opportunity
40are hopeful about organisational growth opportunities
of CFOs are now more optimistic than in the last quarter
of CFOs are now more involved in risk management
of CFOs will pursue organic expansion
consider pricing pressures as the top growth inhibitors
are positive about the future state of the Indian economy
of CFOs are more optimistic than
last quarter
of CFOs willing to take greater risks
believe international expansion will play a
major role in in business development
expect MampA activity to rise over
the next year
rate this economy as good or very good
expect a major merger or acquisition
NORTH AMERICA
INDIA
MIDDLEEAST
SOUTHEASTASIA
UK
PACIFIC
WOMEN AS CFOS ( OF FEMALE CFOS IN OF RESPONDENTS)
( of respondents surveyed)
of CFOs spend significant amounts of time as strategists for company growth
76
AFRICA
AUSTRALIA
5 18
Lowest Highest
of CFOs with total annual compensation including bonus and benefits of over US$255000
of CFOs younger than 35 years old when they attained their position
Europe
Europe
13
Asia
14
SouthAmerica
29
Pacific
30North
America
49
49
NorthAmerica
21
SouthAmerica
Asia
43
31
Pacific
30
In North America 39 of CFOs are older than 50 years
On average CFOs worldwide attain
their position between the ages
of 30 and 39
of CFOs are confident about credit availability in the future
4831
73of CFOs feel that the finance function will play a larger role in their companyrsquos development and execution of business strategy
51of CFOs are satisfied with the performance of their finance function
56
10
UAECA LaunchMARKET OUTLOOK
wwwthecfomecom
AAA launches an accountancy Certification for the UAE in collaboration with ACCA
CERTIFICATIONTAKING REGIONAL OWNERSHIP
The United Arab Emirates Chartered Accountants (UAECA) Qualification launched at Dubairsquos Armani Hotel 3 November by the UAE Accountants and Auditors Association (AAA) in association with the global accountancy body ACCA (Association of Chartered Certified Accountants) The announcement coincided with UAE National Flag Day and advanced ever expanding Emiratisation aims across the country With the support of the ACCA the skills gained will not only lead local UAE accountants to excel across the Emirates but also to encourage further growth internationally
A number of notable local leaders spoke at the event and
expressed their delight and favorable expectations for the UAECA His Excellency Sultan Bin Saeed Al Mansouri the UAE Minister of Economy Saif Abed Al Muhairi Chairman of the Board AAA Abdullah Amiri Financial Manager AAA and Ahmad Darwish Secretary General AAA and Chair of ACCArsquos members advisory committee in the UAE each offered speeches to the crowd of assembled finance professionals
ldquoWe are confident that UAECA will be the ambition of young Emiratis who would like to be the future leaders in the finance fieldrdquo said Al Muhairi
The UAECA qualification is the national qualification of the UAE and is based on
the globally recognised ACCA qualification This criterion will provide a dual-branded internationally recognised IFAC compliant route to membership of both AAA and ACCA
Said Stuart Dunlop regional director MENASA ndash ACCA ldquoThis unique partnership between ACCA and AAA will give students access to a national qualification making their skills and knowledge globally and locally relevant Once qualified as an ACCA member they will also be eligible to apply for membership to AAA meaning they can use the titles ACCA and UAECA after their names And because this partnership supports
ldquoWe are confident that UAECA will be the ambition of young Emi-ratis who would like to be the future leaders in the finance fieldrdquo
11
UAECA LaunchMARKET OUTLOOK
wwwthecfomecom
Saif Bin Abed Al Muhairi Chairman AAA
Ahmad Darwish Secretary General AAA
the governmentrsquos initiative to develop the accountancy and finance profession they will benefit from enhanced career opportunities as more employers and stakeholders choose to work with us in the futurerdquo
Emiratis in the accountancy field joined the procession eager to take part furthermore in what the AAA has planned unequivocally encouraged by the Associationrsquos hand in the UAECArsquoS launch The new qualification has stoked promise for bolstering Emirati involvement in local accountancy as well as international ventures which lie beyond the countryrsquos borders
ldquoAs an ACCA member Irsquom really proud the ACCA route
The new qualification has a good deal of promise for bolstering Emirati involvement in local accountancy as well as international ventures which lie beyond the countryrsquos borders
to membership has formed the basis of the new national qualification of the UAE It gives aspiring Emiratis recognition on a local and global stage and is a unique opportunity that will develop our careers and the profession in the UAErdquo said Ayesha Al Zaabi Senior Accountant of Group Finance Aerospace amp Engineering Services Mubadala
The future of accountancy appears brighter than ever in the UAE with the unveiling of an internationally supported qualification specific to the country The potential increase of Emirati participation spells great promise for the finance industry as it grows from within
12
at CPI Media Group the discussion offered a candid conversation of lively opinions bringing together key individuals from prestigious and influential businesses based in the UAE
The spirited discussion delved into how varied and increasingly imperative the Chief Financial Officerrsquos role has become
Vincent Valladares Managing Director Middle East Head Citi Commercial Bank led the vibrant discussion with the support of Anand Nagaraj Vice President Head Product Development Citi Commercial Bank whilst Grant Thornton Partners Jay Raney and Amgad Nassif offered their views as well
CFO RoundtableMARKET OUTLOOK
wwwthecfomecom
One of the trends in world business currently attracting considerable comment and debate is the changing role of the CFO No longer simply the custodian of the businessrsquo finance or the head of accounts the CFO is increasingly seen as a master strategist and the key architect of corporate decision-making As such a roundtable event held by Citi - in collaboration with Grant Thornton - was both a timely and revealing landmark on shifting attitudes and aspiration
IN CHANGING TImESCITI COMMERCIAL BANK CORRALS A pOwERfuL MEETINg Of MINdS
The management guru Tom Peters recently commented that ldquoIn these perverse and perhaps illusory times is it any wonder that the CFO is seen as the one reliable point of reference - the one person from the C-suite cut out for more responsibility and bigger things in the businessrdquo
Citi Commercial Bank and Grant Thornton echoed the importance of this shifting role by gathering a collection of leading CFOs and finance executives at Dubairsquos Grosvenor House - hosting a keynote round table called lsquoThe Changing Role of the CFOrsquo In a world where CFOs are increasingly wearing a number of new hats within their respective enterprises the event asked pertinent questions such as -
ldquoThe CFOs duties have changed as strategy and other focuses are becoming increasingly importantrdquo
bull Whether the CFO is increasingly the businessrsquo key strategist bull Whether or not the role is more and more impacted by changing legislation and regulationbull Is the CFO now effectively the CEO-in-waitingbull What is the role of management education in this new mix
So while much has been written lately about how essential it is that the CFOrsquos function evolve and change the dayrsquos discussion took an overtly practical view and gathered the opinions of the individuals at its core
Hosted by Paul Godfrey Group Editorial Director
13
recession environment has created an atmosphere rife with new regulations which CFOs are expected to master as these international enterprises venture into new markets and encounter sensitive and risk management-oriented frameworks
Citirsquos Vincent Valladares observed ldquoRegulatory issues are becoming bigger for banks as well as compliance And when we look at doing business with companies we want to look at those with good management teams because otherwise it can become difficult The CFO plays a very important role within this processrdquo
CEO waiting in the wingsWhen the group was quizzed on their individual desires to become CEO every hand around the table went skywards with an affirmative ldquoyes all of usrdquo - highlighting how commercially-minded todayrsquos CFOs have become Not to mention just how axiomatic the relationship between CEO and CFO consistently proves to be
Another factor is that amid all this diverse change - in roles working contexts and background economics - the CFO is seen very much as the person creating order control and standardization No small task
Perhaps the only certainty is that the communication of ideas is leading the charge forward for one of the business worldrsquos most important roles and The Changing Role of the CFO provided a definitive benchmark for this onward march
CFO RoundtableMARKET OUTLOOK
wwwthecfomecom
Members of the roundtable trade ideas
Vincent Valladares offers his position
CFO or CCOldquoThe duties have changed in some very clear ways A phrase that I am constantly coming across and strongly agree with is that we should be thinking of the CFO as the Chief Commercial Officer as opposed to someone who deals solely with finance Responsibilities central to finance continue to exist of course but strategy and other focuses are becoming just as if not more importantrdquo commented Rishi R Vig ZAFCO CFO
In addition to how much larger a remit commercial decisions are demanding the importance of regulatory protocols was a much- discussed topic The post-
Vincent Valladares Managing Director Middle East Head Citi Commercial Bank
Anand Nagaraj Vice President Head Product Development Citi Commercial Bank
Jay Raney PartnerGrant Thornton
Amgad Nassif Partner Grant Thornton
Paul Godfrey Moderator Group Editorial Director CPI Media Group
Steven Pradia Assistant EditorThe CFO Middle East
Ganapathi Bhat Senior Manager of Finance GEMS Education
Mark Downie Financial Controller Proclad
Nimesh Lokhandwala ICAI
Jehangir Pocha Himalaya
Kamal Shah Finance Manager Logicom
Rishi Vig CFO Zafco
Low Wai Leng Financial Controller Dubai Precast
Rajeev Jain CFO Afri Ventures
KG Vincent Finance Director FDC International
Ramesh Pemmasani Head of Accounts Intersun
Nagesh Nadig AIC
ROUNDTABLE ATTENDEES
IndiaCOUNTRy FOCUS
wwwthecfomecom14
SUBCONTINENTAL SURGE
By Arvind Chari
Last year was undoubtedly a turbulent time for emerging markets due to political instability inflation and the fledgling recovery in the West all causing significant headwinds Unsurprisingly this has led some commentators to be sceptical about the prospects for these markets including India But the Indian economy is showing signs that it will weather the challenges of the next few years This may not be an easy task given the
manner the Indian rupee plunged in response to the US Federal Reserversquos decision to taper asset purchasing Nevertheless India does have the political will to make the necessary reforms to deliver on its potential
While the Fedrsquos decision has caused some fallout in emerging markets commentators expect that this will tail off over time Meanwhile Indiarsquos economy is driven by domestic demand which means that
India does have the political will to make the necessary reforms to deliver on its potential
With an eye towards the nationrsquos key partnership with the Middle East the following India country report shares economic prospects accounting for last yearrsquos instability ndash defining what investors can gain moving forward
IndiaCOUNTRy FOCUS
wwwthecfomecom 15
$791bTotal trade between India and the UAE in lsquo13
64Expected growth of Indiarsquos economy in lsquo15
Indiarsquos debt market needs to attract stable investors over lsquobond touristsrsquo short term foreign flows evident in Indiarsquos bond markets
it is better placed than most to deal with the world post-quantitative easing Without the so-called lsquotaper tantrumrsquo investors in India might have focused more on the positives in 2013 But given the overall improvements in the economy and the political outlook we feel the India narrative will be harder to ignore in Q4
One of the most significant changes has been the appointment of Dr Raghuram Rajan as governor of the Reserve Bank of India (RBI)
last year He is clearly part of a dying breed of central banker that is one who actually knows how the world works He will make mistakes but the most important thing is that he will be trying to move India in the right direction as shown by his decision to continue with a hike in interest rates at the end of January Bond and currency markets have reacted very well to this move which shows the bank is now ahead of the curve in fighting inflation In October Rajan remarked that
Indiarsquos debt market needed to attract stable investors over lsquobond touristsrsquo a reference to the short-term foreign flows that have been evident in Indiarsquos bond markets His stance is an indication that policies could be shifted to attract more long-term stable money into Indiarsquos government bond markets away from a focus on the foreign-bank lsquoproprietaryrsquo investments that dominate flows currently
Indiarsquos current account deficit (CAD) was set to halve
STAT FACTS
IndiaCOUNTRy FOCUS
wwwthecfomecom16 wwwthecfomecom16
in the year ending March 2014 It was due to fall to 25 from 48 of GDP in 2013 The fall in gold imports alongside currency depreciation was a major contributing factor to this reduction Indiarsquos exports became more competitively priced over Q1 2014 which has led to higher exports in textiles chemicals and leather goods while the drop in the value of the rupee has also led to a fall in non-oilgold imports We expect the CAD to increase to around 3 of GDP for this financial year as gold import restrictions are removed a shift that should still be easily fundable Additionally the RBIrsquos FX reserves have increased by $34bn through the bank and non-resident Indian deposit swaps which was a much higher figure than anticipated This gives the RBI the additional firepower to intervene in the markets if it is necessary to counteract currency volatility In fact the
rupee has been remarkably stable since October and has steadily outperformed its other lsquofragilersquo emerging-market peers
There has also been an improvement in how other countries perceive India Net foreign direct investment is stable despite some negative sentiment driven by the outflows from the bond markets and banks Vodafone described by Rajan as lsquothe poster child for companies with difficulties in Indiarsquo is investing more in spectrum and also buying out minority operators In addition significant Japanese investment into Indiarsquos infrastructure is a further boost to the country and this relationship will be one to watch over the coming years
Overall the world has a much better impression of India than it did a few years ago when the country was facing significant obstacles In 2010 increasing inflation expanding fiscal deficits and an escalating CAD ndash all coupled with slowing growth rates ndash put India in a very difficult position But in 2012 the government realised that the current situation could not continue and since then there has been a much greater focus on reform
A mixture of poor growth and bad policies dramatically hampered Indiarsquos progress earlier this century frustrating many investors But the country is now beginning to drive a wedge between itself and the other more troubled emerging-market economies We feel
162KIndian tourists in Abu Dhabi yTD
Significant Japanese investment into Indiarsquos infrastructure is a further boost to the country and this relationship will be one to watch over the coming years
STAT FACTS
IndiaCOUNTRy FOCUS
wwwthecfomecomwwwthecfomecom 17
Population size 12 billion
Area 3287263km2
Type of government Federal republic
Official language Hindi
Capital city New Delhi
Largest city New Delhi
GDP (2012) $1825 trillion
Central government debt as a proportion of GDP 67
Currency Indian rupee
Conversion rate against the euro 0013
COUNTRy FILE
Hire a local manager or partner who has a very good
understanding of local rules and regulations
Have a longer-term investment horizon because the Indian rupee will remain
volatile for a while
donrsquot view volatility as a risk view the
integrity of the government and
management as a risk
Travel to India and feel the lsquomicrorsquo India
story rather than just read about the lsquomacrorsquo India story
Be patient and have realistic
expectations ndash things take time to work out in India
TOP TIPS FOR DOING BUSINESS IN INDIA
that these differences will mean that India significantly outperforms those economies over the coming years And while we might still be facing some turbulent times for India at least the dark clouds are beginning to break
As with any emerging-market economy the next few years will present challenges alongside opportunities and investors will have to
be comfortable with this state of affairs But India is committed to making the reforms it needs to improve its future The country has much better potential for growth than any developed country and it is also in a far better position than many of its emerging-market peers Now is the time to take advantage of all that India has to offer to investors
INNOvATIONrsquoS BOTTOm LINE Bill Chappell occupies a rare space as the CFO of Dubai Silicon Oasis a free zone dedicated to the development of technology across the emirate In the following interview he shares with CFO Magazine how far along technology has come in the UAE and why the figures are the most important aspect of his role as Chief Financial Officer
18
Cover StoryTECHNOLOGy
wwwthecfomecom
Dubai Silicon Oasis (DSO) occupies a vast 72 million square metre stretch of land in the northern reaches of the UAErsquos most globally recognised emirate Established in 2005 as a government-owned free zone devoted to the development of technology DSO has in the time since welcomed over 1087 companies into a space of which more than 59 of has been developed
Responsible for liaising with DSOrsquos companies both large and small whilst overseeing the free zonersquos balance sheet CFO Bill Chappell mans a unique station as a finance
executive with a keen eye for technological growth
ldquoIrsquove been with Dubai Silicon Oasis for nine years and my role is rather split I am the finance director but Irsquom also responsible
for our initiatives on technology incubation
and investment which is all very interestingrdquo
Chappell said Despite Chappellrsquos
years of experience in the technology industry granting him an imperatively strategic purview as CFO he makes clear what is most important as Chief Financial Officer
ldquoGetting the numbers right must always be the number one thing People talk about strategy and a number of other things but you must focus on the numbersrdquo
Chappell offered ldquoMy background is in technology companies for over ten years previous to coming here so I have a knowledge of technology which I brought to Dubai above all My overlap personally involves understanding technology whilst being a CFOrdquo
When Dubai Silicon Oasis first came into existence the area was undeveloped with no roads customers or residents Today the oasis acts as both a home for industry and residence whilst the Dubai Silicon Oasis Authority operates a number of services unique to companies which operate within the free zone A business incubation centre venture capital funding structure and various forms of entrepreneurial support are among DSOrsquos many aspects available to tenants
Said Chappell ldquoThere are three categories of companies at DSO There are smaller companies which deal more largely with our entrepreneur and incubator ecosystem The other extreme involves global firms such as Fujitsu or SAP and we look at their needs and make sure theyrsquore satisfied as customers They want our help to get setup And then there is the middle group and I meet them if they need my help as CFOrdquo
DSO counts SAP Porsche Fujitsu and Qordoba among its vast bank of companies
19
Cover StoryTECHNOLOGy
wwwthecfomecom
each of which are granted access to the Chappellrsquos well-honed expertise
ldquoBill has been involved in several meetings to gain updates about the company and offer input on what he thinks we should be focusing on whilst asking questions about our financial processes He also sits with the board on occasionrdquo said Loulou Khazen Baz founder of Nabbesh an online marketplace which connects professionals with work opportunities
ldquoDubai Silicon Oasis has been an important Investor at various stages of Nabbeshrsquos journey and a vital stamp of approval Our company has found priceless value in DSOrsquos support and the approachable nature of an involved CFO like Billrdquo
Chappell faces a number of challenges related to investment due to the region not ranking tech developments as high as traditional platforms such as real estate Additional concerns related to innovation have found themselves increasingly entering the CFOrsquos remit as related to encouraging ideas specific to the region Chappell is confident however that certain companies based in DSO are addressing these issues
ldquoIn this region one of my biggest challenges is getting people to understand
ldquoPeople talk about strategybut getting the numbers right must always be the number one thingrdquo
20 wwwthecfomecom
the complexities of tech Technology is a good investment class but the region is focused very much on real estate whilst the investment class of technology doesnrsquot rank as highrdquo said Chappell ldquoIn order to widen the general understanding we want to be developing solutions which address problems specific to the region We have one or two gems for example Qordoba a translation company which translates content in multiple languages The programme utilises artificial intelligence and as a result is getting smarter and smarter each time it is asked to translate so that it understands the meaning of what itrsquos translatingrdquo
Another key variable for DSO is centred on supporting
Dubairsquos goals based around becoming the worldrsquos capital for Islamic finance Chappell describes his role as CFO as one with ldquotwo thousand handsrdquo a multi-layered position which he seems to relish being held responsible for While DSO has grown tremendously in its near decade of existence the free zonersquos exuberant CFO sees lots more to come
Said Chappell ldquoI see us going from strength to strength Wersquove been in existence for nearly ten years When I joined it was empty desert Now we have over 1000 companies and an estimated 43000 living on site Within five years wersquoll also be further down the path and wersquoll be recognised for our contributions to the smart city and the Islamic economyrdquo
ldquoWithin five years wersquoll be further down the path and recognised for our contributions to the smart city and the Islamic economyrdquo
Dubai Silicon Oasis
headquarters
1080Companies in DSO
72millionDSOrsquos land mass in square metres
STAT FACTS
Cover StoryTECHNOLOGy
THE MIDDLE EAST ACCOUNTANCYAND FINANCE EXCELLENCE AWARDSWEDNESDAY 10 DECEMBER 2014AT THE JUMEIRAH BEACH HOTEL DUBAI
ACCOUNTING FOR EXCELLENCE
Once again the very best talent in the world of accountancy and fi nance will be celebrated by ICAEW at a stellar awards ceremony
ICAEW is a professional membership organisation supporting over 142000 chartered accountants around the world And on Wednesday 10 December 2014 at the Jumeirah Beach Hotel in Dubai wersquoll be recognising excellence in ten categories featuring Business Leader of the Year CFO of the Year Corporate Finance Deal of the Year and the Internal Audit Excellence Award
With an impressive line-up of speakers special guests and entertainment it all adds up to a trulymemorable evening
To submit a nomination or for more information visit icaewcommiddleeastawards
Nominations close on 1 October 2014
A WORLD LEADER OF THE ACCOUNTANCY AND FINANCE PROFESSION
400595_ICAEW_MiddleEast2014_Ad_NBAD_DEVERE_207x270_AW_3indd 1 27082014 1541
PROCUREMENTANALyTICS
wwwthecfomecom22
Return on Supply Management Assets (ROSMA) is a pioneering framework launched by AT Kearney after four years of testing one aimed at addressing the aforementioned procurement gaps The performance measurement standard was initiated with an eye on creating a benchmark for the procurement industry and providing a compass to direct investments
ldquoROSMA started in 2010 And it started out with conversations with the CFO There are a group of folks in the company talking about how great their achievements are however
the capital that procurement claims isnrsquot often obvious and can create a disconnect within the companyrdquo said AT Kearney Vice President Federico Mariscotti
This yearrsquos annual report surveyed a number of businesses and arrived at a series of significant findings which outline procurement patternsbull Top-tier companies generate
approximately $16 million in financial return per procurement employee yearly A reported 35 per cent of return derives from applying advanced methods
bull Mid-level performers typically
The first step for compa-nies in the Middle East is to take a good look at what they expect procurement to bring
Leading global management firm AT Kearney recently released a report on the evolving conversation which surrounds procurement A key aspect of the report spells out how much CFOs stand to gain by making more pronounced investments based on utilising procurement in terms of value The relative distance between CFOs and their respective companyrsquos procurement methods is cited as cause for concern
THE NEW LANGUAGE OF PROCUREmENT
generate four to five times of their investment in procurement valuation yet have not exemplified growth since 2011
bull Performers at the lowest level surveyed do not achieve monetary benefits which cover costs
bull The majority of organisations surveyed do not possess the tracking structures needed to analyse procurement performance
bull Regardless of company size or industry procurement
PROCUREMENTANALyTICS
wwwthecfomecom 23
The CFO community has not yet awakened to the value of procurement
performance varies though companies with sophisticated reporting techniques experience less variable performance
The reportrsquos express aim to create a benchmark for procurement follows a wave of process monitoring which found notice in the manufacturing industry in the 1980s supply chain research and engineering in the 1990s and sales and marketing performance being closely tracked in the 2000s
ldquoProcurement costs can represent anything from 20 to 90 of a companyrsquos total cost going from the public sector to consumer goods Yet the productivity of the team that presides over the supply market interactions has a way of explaining their value add using savings that do not add up to the PampL impact measured by finance Savings definitions different baselines and cost avoidance all contribute to a murky aggregate view of the impact on the businessrdquo added Mariscotti
In the Middle East the challenge is fundamental ndash getting the spend data in the first place Companies admit they often do not have a clear categorisation of intelligence lack an agreed definition of savings measurement and generally position procurement as a pre-eminently transactional activity lacking the mandate to contribute value Procurement processes as a result remain centred around purchasing are paper based and lack transparency The first step for companies in the Middle East is to take a good look at what they expect procurement to bring
wwwthecfomecom24
Influencedspend
The inconsequential The brand leaders
Leaning up
Note All three segments start with a common hypothetical spend of 1000 to normalize the case example
Source AT Kearney analysis
Source AT Kearney analysis
TOP QUARTILE
mIDDLE-TIER 50
BOTTOm QUARTILE
704
764
644
522
527
396
42
30
(138) (25)
(63)
19
39
28
15
21
4
3
60
32
18
Sourcedspend
Units of yield
Post-compliance
benefits
Additionalbenefits
Financial results
delivered
19x
17x
middle tier
bottom quartile
TOP-QUARTILE PERFORMERS DELIVER NEARLy TWICE AS MUCH VALUE AS MIDDLE-TIER PLAyERS
THE CFO COMMUNITy HAS NOT yET BEEN ldquoAWAKENEDrdquo TO THE VALUE OF PROCUREMENT
Procurement is not on the radar for those who gave the wrong answers to three essential questions
leadership with accountability for performance is clear but either the measures are not clear or performance is believed to be weak variable or unknown ndash or a mix
leaners and leaders answered all three essential questions correctly and also answered most or all other questions correctly
to the table and how it should support the business To make a steep change companies need to understand the multiple benefits which will occur for investments made once theyrsquove allowed for stronger procurement practices
The benchmarking aspects of ROSMArsquos report speak directly to CFOs based on an existing widespread inability to track and improve this often unquantifiable nature of procurement practices According to the report the CFO community has not yet awakened to the value of procurement and Chief Financial Officers are thus divided into three segments The brand leaders (25) those leaning up (63) the pack (774) and the inconsequential (138)
Said Mariscotti ldquoThis is a way to give procurement a measurable quality that CFOs can quantify You have to know what yoursquore doing with relation to procurement in order to do it well ROSMA gives you a number which helps you understand how good your procurement is working as compared to peers It lets you know whether or not you could be doing something differentrdquo offers Mariscotti
CFOs have exemplified an increasing ability to share in a companyrsquos strategic efforts whilst expand their respective remits Procurement is emerging as the latest segment of this conversation Understanding its value beyond the transactional is the first step for CFOs to fully engage with harnessing the potential of procurement and grow to become a part of the elusively paltry portion of brand leaders indicated in ROSMArsquos report
PROCUREMENTANALyTICS
The pack(774)
Al Sharid is the Vice Chairman of Emirates Transport and has enjoyed a successful career in which the lionrsquos share of his tenure has afforded him a seat at the helm of the business
ldquoI remember when I first received the GM of Tata in the late 80s he said to me lsquoYou are the youngest GM I have ever metrsquo I was 29 years old at the timerdquo Looking at Al Sharidrsquos rapid ascent to the top of his organisation can be mind boggling to the average observer however to those few who strive to push themselves to their limits it is perhaps more common a reality As with any top performer we can often see their desire for results and impact
early on in life and with Saeed the first stride of his race to the top began with an accounting degree in university
It was 1976 and the excitement of the UAErsquos biggest milestone moment its inception just five years earlier still clung to the air from Fujairah to Abu Dhabi and every emirate in between A nation was being built Saeed had just finished high school and went to the United States where he was to study engineering
ldquoI was not yet 18 years old it was 1976 and I was sent to America to study it was the beginning of a dream and a young liferdquo says Al Sharid Unfortunately Al Sharidrsquos academic tour of duty came to
THE EmIRATI DREAm Saeed Al Sharid is today an elder statesman in the world of UAE accountancy With decades of know-how based on chairing a number of key Emirati organisations Al Sharid is today atop his own family firm In the following exclusive interview he shares the importance of education the evolution of a nation and just how being an accountant has driven his many triumphs
an abrupt halt when his father suddenly passed and he was forced to return home ldquoWe are seven brothers and I am the middle one so during tough times we always come together and during this period the strength of my family pulled me through I have three younger brothers and I felt I had to be there for them I felt responsible for them My mother played an omnipotent role in pulling us through this dark moment in our history The death of my father forced us to become more independentrdquo says Al Sharid
Now back in the UAE with his plans of studying abroad dashed Saeed looked at the local schooling system within which Al
26
InterviewPERSONALITIES
wwwthecfomecom
Saeedrsquos desire for results took its first stride with an accounting degree in university
By Shane phillips
27
InterviewPERSONALITIES
wwwthecfomecom
Ain University had just opened ldquoAl Ain University was the pride of the Emirate at the time the students were like celebrities The first batch of graduates were all promised 50000 AED from HRH Sheikh Zayed I was one year late so technically I should not have graduated with the first batch but I was determined I worked an extra course load did summer school and soon caught up to the first class 50000 AED in 1981 was like 5000000 AED today so I was very motivatedrdquo says Al Sharid
Saeed not only caught up with the other students but he wound up graduating atop Al Ain Universityrsquos first class of graduates with a 38 GPA ldquoWe Saeed Al Sharid
28 wwwthecfomecom
to the organisationrdquo he says Saeed first joined Emirates Transport after seeing a small newspaper advertisement for an accountantrsquos position He applied but initially they did not want to hire a local because locals were too expensive After a few months however they called him back for an interview and offered him a job
Initially Saeed struggled to get a promotion or even a raise He worked tirelessly to develop himself and kept detailed notes of his work After nearly two years went by with no promotion he requested to meet with the Chairman of the corporation to discuss his career The Chairman was a Minister making him even more senior than his title implied Al Sharid was courageous and determined ldquoYou should not stay silent you have to take initiative your future is in your handsrdquo says Al Sharid
ldquoI met with the Chairman and told him about my work and what I wanted to do He did not talk he just listened and that was it It was a 15-minute meetingrdquo says Al Sharid Three days after Al Sharidrsquos pivotal appointment he was promoted to Deputy General Manager Directly from a Trainee to DGM skipping all the roles in between at the age of 27 years old They doubled his salary and catapulted him into a senior leadership role
ldquoI felt it was quite strange to move up that fast and personally was not sure I could handle the job I had a lot of resistance from the board I had people in their 50s reporting to me and they were not happy about it So I just took a step back and did not try to get involved in their work too fast I went slow and watched my step This was a very important
ldquoThe UAE was a brand new country and a lot of work was being done to develop the nationrdquo
never had any idea of a career path and there was no such thing as career counsellors or lsquocareer servicesrsquo at the school So when you graduated most people just joined the Ministries The UAE was a brand new country and a lot of work was being done to develop the nation The Federal Government paid the highest and so one just joined them There was no grand vision or dream that I was off and chasing In those times you simply tried to do the next best thing So I ended up working in the Ministry of Health as an accountant Back then a university degree was a veritable qualification and it had a lot of market equity today it wonrsquot even get you in the doorrdquo
As the Middle East market evolves not only are university degrees becoming more common but so are post graduate degrees such as MBAs and even PhDs As such the competitive positioning of professional qualifications are gradually eroding over time
ldquoTo stay competitive executives today will require deep and specialised knowledge of their respective industries an intellectual arbitrage that provides superior results To beat the market to manage the risks to develop a sustained competitive edge For this executives need to stay in a role for the full strategic cycle which is at least four years in durationrdquo says Sharid In the case of Al Sharid he was there for 33 years
ldquoDo you just want a job or are you looking to make a contribution to your company Too many young people today are just looking for a title or a position The difference between those who make it into senior roles and stay there is the desire to create impact to add value
InterviewPERSONALITIES
2012year Moodyrsquos upgraded the UAE economy from developing to emerging
37The UAErsquos global rank for GDP
STAT FACTS
moment for me to gain valuable leadership experience early on To make my learning curve even steeper the General Manager quit after two years and I became the GM at the age of 29 years oldrdquo explains Al Sharid
He ascended to the top job in less than five years and stayed in the position for almost twenty years He was totally committed and could even be found in the bus yard at four in the morning to greet the drivers as they started their shifts ldquoThe key to being successful in business is to keep your finger on the details Some people let the details slip and if this happens you will suffer I get into the yard I meet the drivers I meet all the staff If you saw us you will not know who was the GM or who was the driver You have to realise people will never work for you they will only work with you To me Emirates Transport is like my familyrdquo says Al Sharid
When asked what his keys to success are he says ldquoI think if I was not an accountant I would not be a good leader I would not be a good manager In my opinion trying to do business while not understanding accounting is like getting into the ocean and not knowing how to swim you will drown The Chief Executive Officer who does not know how to create the financial statements is always at the mercy of his Chief Financial Officer He cannot take any big decision on his own and he will not even be able to challenge the CFO Accounting is the bedrock of any business and a critical skill set for any leader No one can argue with this factrdquo says Al Sharid
With over 20 years of experience in tow and the related chairmanships to boot Al Sharid
ldquoTrying to do business while not understanding accounting is like getting into the ocean and not knowing how to swim you will drownrdquo
has since early last year partnered with his family to form Al Sharid Auditing Though the Emirati youth is not as keen to pursue positions related to accountancy as Al Sharid was he feels that there is hope to close the gap
ldquoIt is difficult to find an Emirati expert I studied the audit market specifically and there were others like me then But now you break Emirati auditing involvement into three categories The first involves the big firms This is followed by individual smaller enterprises But thirdly a lot of locals opt to work with the government also Most are not managing their own firms they just have a partnership and they are building thatrdquo Al Sharid explains
ldquoAl Sharid Auditing however is a firm that includes my brother and our two sons which make up a body of qualified professional auditors We established this firm last year and work closely with the government We decided to make one firm together instead of having many smaller entitiesrdquo
Moving forward Al Sharid plans to grow his familyrsquos firm by applying the very belief system which has catapulted him to his position of power Marketing concerns which are designed to furthermore announce how tailored Al Sharidrsquos offerings are at present a key variable to forging ahead
Said Al Sharid ldquoMoving forward wersquore focusing more on the marketing of our firm Itrsquos a matter of not exactly expanding but going over the right deals The market is tough and the small jobs are easy but we donrsquot need them We donrsquot want to be in many rooms we want to be in the important onesrdquo
29wwwthecfomecom
InterviewPERSONALITIES
1UAErsquos rank among GCC nations for chosen hub of all major accountancy bodies
STAT FACTS
Latest insights from PwCrsquos 15th Annual Global CEO Survey revealed that 59 per cent of CEOs see emerging markets as more important than developed markets to their future What is making emerging markets such a pressing priority for C-suite executives Why are emerging markets increasingly grabbing headlines
Emerging markets are large fast-growing and ambitious markets best known for being the growth engines of todayrsquos global economy Research (1) suggests that emerging market countries are expected to amount for more than 60 per cent of global GDP growth ndash a clear indication of the wealth of opportunity they present
Understanding emerging marketsBased on estimates by the International Monetary Fund emerging economies are expected to grow two to three times faster in comparison to developed nations Explaining this fast-growth and the rise of these emerging markets an article on Forbescom details that ldquoduring the US housing crash and resulting credit crisis of 2008 world markets were saved from a total disaster thanks to the big emerging markets ndash mainly Brazil India and China The global credit crisis was one of the longest deepest and most painful in history It toppled Wall Street icons like Lehman
The following report explores emerging markets from West to East which are at the helm of economic development trade and innovation and highlights what their rising popularity means for the growth of your business
Brothers required government bailouts of bulge bracket banks and shocked the global economy with a deep economic recession and even a deeper crisis of confidence Its most important legacy though may be one that has yet to fully unfold the crisis revealed a new world order in terms of economic and market dynamics Emerging market economies finally arrived as
30
Market IntelligenceANALyTICS
wwwthecfomecom
ENTERING EmERGING mARKETS STRATEgIES RISKS ANd OppORTuNITIES
Projected annual GDP growth 2014 amp 2015
PANAMA
67
PERU
RANK42
55
Projected annual GDP growth 2014 amp 2015
Ease of Doing Business
RANK55Ease of Doing
Business
TOP TEN MARKETS
(1) Source here Accenture Research ldquogearing up for growth ndash five imperatives for success in emerging markets 2011 Henry Egan and Armen Ovanessoff
31
Market IntelligenceANALyTICS
wwwthecfomecom
LATVIA
CZECH REP
MALAYSIA
THAILAND
SOUTH KOREA
CHINA
RANK75
41
21
50
45
35
74
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
CHILE
RANK 34
43
Projected annual GDP growth 2014 amp 2015
Ease of Doing Business
RANK 24Ease of Doing
Business
Ease of Doing Business
RANK 6Ease of Doing
Business
RANK18Ease of Doing
Business
RANK 7Ease of Doing
Business
RANK 96Ease of Doing
Business
POLAND
32
RANK45Ease of Doing
Business
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
Source httpwwwbloombergcomnews2014-01-29qatar-china-top-ranking-of-frontier-and-emerging-marketshtml
powerful essential and permanent contributors to global economic growth and sustainabilityrdquo
Bloombergcom recently ranked the top emerging markets based on their performance on 19 economic financial political and social indicators In order of ranking the top ten markets were
CHINA
SOUTH KOREA
MALAYSIA
CHILE
THAILAND
PANAMA
PERU
LATVIA
POLAND
CZECH REP
1 6
2 7
3 84 9
5 10
Market IntelligenceANALyTICS
32 wwwthecfomecom
Making an entryIf your business is looking to enter any of these emerging markets itrsquos worth considering the following checklist
1 Assess your readiness The biggest mistake you can make is to enter a market without proper evaluation of your business Donrsquot do it just because everyone else is Like every other major business decision be sure to speak to your Board of Directors partners investors stakeholders and most importantly your CFO and certified accountants Make a business plan enlisting your objectives goals investment strategy potential risks etc
2 Research research research Do your homework Treat emerging markets as any other international expansion venture and do thorough research on the new market ndash Who are the competitorsWhat is the price point for your product What are the customer demographics What kind of infrastructure do you need for the manufacturing production or distribution of your product
3 Understand the legal framework Emerging markets might not have rules and regulations as clearly spelled out as your home country Invest some time and money in understanding how business procedures work A very obvious area of focus for UAE-based companies is tax Since the UAE is a tax-free economy companies arenrsquot exposed to tax accounting and other legislation surrounding
ndash failing to adapt to the needs and expectations of the local customers is surely a recipe for failure Time and again companies havenrsquot been able to create a customised offer and have had to exit these markets with huge losses A success story however is that of the Haier Group Haier famously introduced washing machines to specifically suit the water pressure levels in the households of India ndash an emerging market strategy that worked very well in their favour and helped them become leaders in that sector Another great example is that of Coca-Cola as explained in an online Reuters article by Matt Reilly ldquoIn Brazil Coca-Cola has used social media to better understand consumer preferences and has developed a successful local network to supply traditional Coca-Cola products as well as fruit juices tailored to local tastesrdquo
7 Local currency This is a complex yet critical area to consider when entering a new market Ask yourself questions such as ndash What is the local currency rate How does it compare to the currency in your home country Is the country import-led or export-led and what impact can this have on the global value of the currency Remember that fluctuations in currency rates can hugely effect your overall investment and thereby the return on investment
8 Build partnerships When entering an unknown territory it is quite useful to have the backing and support of peers who can help you in case of unforeseen challenges This is
this Another area to consider is corruption ndash emerging markets are notorious for high corruption red-tape and bureaucracy Speak to your company lawyer to assess these areas and take proper measures to avoid them before-hand
4 Invest in local talent Working with people already accustomed to the new market avoids the hassle of relocation and reduces costs But more significantly gives you skilled talent to work in these unique environments This also works in favour of your company as it gives you a clear understanding of the kind of compensation packages you will have to offer to your employees For instance employees based in China might want high remuneration and low healthcare benefits while in India it may be quite the reverse Recruiting local talent will also have a trickledown effect ndash your employees will easily be able to cater to the local customer needs without the need for intense training
5 Supply chain 44 per cent of business leaders surveyed consider accessing the right supply chain capabilities extremely or challenging in emerging markets according to Deloittersquos Globalisation Survey Make sure that you know who your suppliers will be what the production costs are whether their production procedures fit your time constraints and if the final product matches your level of quality
6 Cater to local market demands This is one of the most important aspects of all
Do your homework Treat emerg-ing markets as any other internation-al expansion venture
Market IntelligenceANALyTICS
33wwwthecfomecom
the very reason why Mergers and Acquisitions are a popular way to enter into emerging markets Many companies piggyback on their clients who are entering these markets For instance if you are an IT consultancy working on a major project for a manufacturing and trading company with operations across India and China you can use their resources and expertise to explore opportunities in these countries
Remember to consider these steps every time you enter a
new market as every locality has its own set of unique needs One strategy doesnrsquot fit all
Surviving fierce market conditionsWhile the massive opportunity that lies within emerging markets paints a pretty picture businesses need to be wary of bottlenecks such as corruption volatility gaps in laws and regulations and strong competition There have been several high-profile cases of multinational companies withdrawing from emerging
markets owing to immense corruption pressures
There is also a high percentage of inherent risks in these markets which amount to many companies not succeeding in their first attempts It is important to take your time when adapting to these markets and fully understand the business dynamics Following recent case studies and going over the lessons learnt by multinational companies who have made an entry into these markets consider the below
bull Is your companyrsquos head-office ndash and senior management ndash located in your home country without any C-level representation in the new emerging market
bull Are you focusing all of your resources on doing business in the emerging market at the cost of losing profits in your home market
bull Have you researched local competitors in these markets who may already have a strong standing and proven models of success
bull Are you using the same ldquoentry approachrdquo and business model across different emerging markets
If your answer to one or more of these questions is yes it may be time to re-evaluate your presence in these markets and map out a different strategy
Finally remember that no matter what the outcome of your admission to these markets might be your business is sure to emerge out of this stronger tougher and ndash of course ndash ready for a new challenge
of companies believed they had invested more resources in
emerging markets than was required
entered a market without fully assessing the ability of the supply chain to support the expansion
entered with the wrong pricing model and an inappropriate
operating model
CONSIDER THE RISKS
48
24
20
There is also a high percentage of inherent risks take your time when adapt-ing to these markets and fully understand the business dynamics
Source Emerging markets expansion and the supply chain Economist Intelligence unit survey conducted on behalf of EY September 2010
34
CIMA INTERVIEW
wwwthecfomecom
The Chartered Institute of Management Accountantsrsquo (CIMA) Managing Director Andrew Harding visited Dubai to host the Institutersquos seminar on global management accounting principles In the wake of CIMA revising their well heralded syllabus Harding discussed with CFO Magazine what the newest edition held how CIMA is applying a digital focus to its courses and just how CFOs can gain from it all
CURATING CURRICULUm
35
CIMAINTERVIEW
wwwthecfomecom
can give CFOs something they can take and something they can measure their own management accounting services against They can benchmark using this and they can utilise this to see their progress
Part of that is having professional management accountant in place I donrsquot think the landscape matters I believe that there is a common business need wherever you may be around the globe
All of the emerging markets need these skills The first aspect that accounting schools teach is about auditing skills because theyrsquore interested in protecting investments Then they teach you how to keep your business sustainable and to have a sustainable business you need to have a management accountant in place So itrsquos not just here in the UAE where we see these demands we see the same demands in China Indonesia and other powerhouse economies We see their skills shortages and we see the need for solutions in those areas
Talk to me about how this new syllabus works to promote the evolution of a CFOThis syllabus that wersquove
Can you expound on just what can be found within the new CIMA syllabusWe just revised the syllabus we do that every four to five years What we have done this year is a very significant revision It is based from a complex study that we have carried out to over 3000 people from 200 companies globally It is the very first revision since the joint venture with CIMA and AICPA So this has allowed us to attain a syllabus rich with all the data from all the continents in the world For the first time wersquove had real involvement from companies in the USA in this project
Why is the collaboration between AICPA and CIMA significantMost important is the Chartered Global Management Accountant (CGMA) designation that AICPA and CIMA both issue for qualified management accountants Wersquoll have a common curriculum and common examination which will begin on January 1 which gives us a global designation for management accountants wherever they are around the world There are plenty of accounting bodies who claim to be global but actually this is the only
genuinely global designation This is because it has the only one with a North American participation in it So we can say that the CGMA will be just as well-recognised in the USA as it is in Dubai
With the global landscape in mind how do you create an even objective that applies to localities which may prove widely differentialThe landscapes are different but businesses have common needs wherever they may be What wersquove particularly seen since the global financial crisis is that companies are actively looking to build management accountant capability to build that capacity within their organisations They donrsquot want to have a poor quality of information that lacks insight being used in their businesses So they see management accountants can bring solutions to that As a result of all the work wersquove done with companies who participated in the syllabus wersquove also put together a series of what we call Global Accounting Principles This is a series of principles which describes what good management accounting looks like and what top quality management accounting in a company should be producing This then
ldquoCompanies are actively looking to build man-agement accountant capability to build that capacity within their organisa-tionsrdquo
36 wwwthecfomecom
worked on acknowledges the skill set needed by professionals throughout their career Therersquos a base level of competence that is needed but beyond that there is more There is business acumen the ability to communicate and influence and finally the ability to lead So you start off enhancing your raw technical accounting skills Then you need to place that into the context of the business that you are in Then as you move forward and as you rise to become the CFO yoursquoll need the others You have to learn how to present your work in a way that can influence and make an impact in the business The final piece is the ability to lead projects and other functions and to a great extent lead the board of directors Thatrsquos how the context works itrsquos not just about technical knowledge
How do you find that CFOs in the GCC region are responding to this programmeThe CFO has a real challenge on his hands now In 1975 80 per cent of corporate value is showing on the balance sheet By 2010 that dropped to less than 20 per cent Your traditional PampL reports no longer reflect the value of the business or how the business drives value
All things that should be of interest to investors is missing With things like the integrated report initiative wersquore starting to see the other dimensions that add value to business For CFOs thatrsquos all about strategic thinking and considering the long-term objectives Being articulate in implementing those strategies keeping in mind the risks and opportunities that the business faces We are also nowadays witnessing a whole new world of transparency around that
Are there electronic aspects to CIMArsquos advancing approachThe interactive case study simulates a real working situation and it tests how they can apply their knowledge in real life situations Theyrsquoll be presented with a scenario a few weeks before they take the exam so they can prepare for it They then go to an exam centre where they are asked questions about how they will deal with a certain situation in the real world Theyrsquoll get an email from the CFO giving them a certain task for a particular period of time We want to make it as close to reality as possible so students taking the exam will be assessing situations based on real life scenarios
ldquoThe CFO has a real challenge on his hands now as traditional PampL reports no longer reflect the value of the businessand [the role] must focus on strategic thinking and considering long-term objectivesrdquo
218KCIMA members worldwide
STAT FACTS
CIMA INTERVIEW
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
38
ERPANALyTICS
wwwthecfomecom
Faster more nuanced IT solutions are available to the modern day CFO Whilst Chief Financial Officers are called upon to analyse data across a number of spectrums the digital tools on hand are likewise being expanded to aid in focusing more squarely on the bottom line
ExCELLING WITH ERP
The global landscape is today firmly entrenched within a digital model As a result CFOs whom are called upon to take a larger role in a number of variables must also increase their abilities with respect to utilising the many upsides which tech innovations offer a business When surveyed about their most pressing concerns CFOs generally return a varying collection of responses Revenue growth regulatory changes and meeting quarterly goals are among the chief concerns Virtually every obstacle can be hurdled by way of maintaining the order of financial reporting and data which has long been
synonymous with the Chief Financial Officerrsquos remit A widening berth of ERP solutions is making this data all the easier to come by
Despite how sophisticated the market is today it was not long ago that ERP departments once spent days processing business reports
Said Rohan Tejura Assistant Vice President Focus Softnet ldquoTraditional ERP systems were solely data repositories Moreover these repositories werenrsquot real time and were incredibly dependent upon locational connectivity With the emergence of smarter development platforms more versatile devices and
39
ERPANALyTICS
wwwthecfomecom
more intuitive designs of system development the overall experience of the ERP now extends from data warehousing to reporting analysis trend mapping business intelligence and governance oriented capabilities Yet these solutions amazingly execute all of these deliverables via portable handheld devices and through cloud environmentsrdquo
New generation ERP systems must now be on the go whilst including up to the minute analytics to provide deeper insight into the business ERP Analytics tools use historical data captured from various business functions to provide valuable information for efficiency and business performance each incredibly priceless to a leading CFO
Finesse is an ERP provider which is continually addressing the transformation of output which the ERP industry is offering the equally transitioning role of CFO
ldquoWe provide end-to-end business management solutions to SMEs and Enterprises Our approach to ERP is much more than providing simply an operational management systemrdquo said Finesse COO Sunil Paul
ldquoWe believe that todayrsquos businesses need much more than integrating sales with inventory accounting and manufacturing but also to have seamless integration with all their sales channels including the point of sales ecommerce and inbound sales solutionsrdquo
A major im-petus of the ERP-cen-tered growth is based on how effec-tive com-prehensive real-time data proves to be for the CFO
40 wwwthecfomecom
before thereby creating new global benchmarks for overall economic growth
Microsoft Arabia CFO Sadrul Khan offered insight into just how far the knowledge economy has influenced regional financial leadership by explaining how one of the most prioritised technologies by CFOs in the region is social platform monitoring
ldquoOne of the five technology choices that CFOs tend to prioritise in boosting productivity efficiencies and faster decision making in the fast paced business environment which include a social platform that monitors trends customer sentiments and helps process mashable data for customer centricity and business growthrdquo said Khan
A major impetus of the ERP-centered growth is based on how effective comprehensive real-time data proves to be for the CFO Whether employed as on-premise ERP software-as-a-service or cloud-based solutions a nearly identical ethos is being utilised Allowing the CFO to quickly access the performance of all facets of a business is paying dividends in the boardroom a reality which is showing itself increasingly in the Middle East
The technologically-charged relationship between ERP solutions and the regionrsquos CFOs is expanding and as a result has catalysed what many see as GCC economic performance outstripping that of many economies outside of the region as a result
In order to compete in todayrsquos fiercely competitive environment organisations need to think both innovatively and out of the box They require more insights about their business and their customers and need to ensure that they are able to meet the expectations of their internal as well as external stakeholders Enormous amounts of data both structured and unstructured is continuously being generated within the internal and external systems of the organisation which if analysed can be of immense value both to the business and subsequently the stakeholders associated with the organisation
With the the era of CFOs labouring over spreadsheets now in the past given how many business frontiers have become so dependent on mobile options such as the cloud more and more tech companies are providing the regionrsquos CFOs with information technology that converts traditional internal and external data into rich visual insights This information is then used for faster decision making and provides the ability for a CFO to assess manage and control risks Regional CFOs have grown enabled to drive corporate strategy accordingly demonstrating how the knowledge economy is now in full force amongst the Gulfrsquos corporates
Given that advanced IT has now become a regular CFO tool the regionrsquos CFOs are subsequently making faster decisions and driving internal growth models with greater speed and agility than ever
Tech companies are providing the regionrsquos CFOs with information technology that converts traditional internal and external data into rich visual insights
ERPANALyTICS
Donrsquot discoveritrsquos counterfeittoner afteritrsquos too lateOriginal HP Toner works first time every time1 unlike cheap toners which fail over half of the people who try it2 Non-HP toner can compromise your printerrsquos performance to give you streaked blotchy or faded prints Only original HP Toner cartridges deliver unmatched quality for the most professional-looking prints 100 of the time1
1 A QualityLogic 2010 study commissioned by HP comparing original HP LaserJet Monochrome print cartridges with nine brands of non-HP toner cartridges available in Europe Middle East and Africa for the HP LaserJet P1505 and P4015 printers HP 36A and 64A For details see wwwqualitylogiccomEMEAmonotonertestpdf 2 From a 2012 EMEA Lyra Research study commissioned by HP Results based on a total of 1050 HP Color LaserJet users who have used both original HP and non-HP toner cartridges of whom 552 experienced problems with non-HP cartridges
copy 2014 Hewlett-Packard Development Company LP
42
Private Equity ANALyTICS
wwwthecfomecom
The rise of PE-backed acquisitions is forcing CFOs to develop an entirely new set of skills
THE PRIvATE EQUITy CFO
The CFOrsquos utility in the world of private equity is without question on the rise The once-held belief of the CFO existing solely as the ldquoaccounting guyrdquo has been abandoned Over the last 20 years the role of CFO has become more demanding - requiring not just finance and accounting acumen but also a financial literacy in corporate planning risk management MampA assetliability management and regulation This evolution has been driven by a number of
key factors Yet the private equity industry which is now reshaping the corporate landscape through active ownership is by far the most significant factor driving change within the role of the CFO
PE-backed buyers today represent a larger percentage of overall buyers in the corporate acquisition marketplace than ever before Data provider Prequin estimates that as of June 2014 the capital raised by PE funds that
has not yet been deployed amounts to $114 trillion globally The result of this ldquodry powderrdquo is that a vast quantity of corporate acquisitions in the coming years will be undertaken by the private equity industry As such CFOs will be more accountable to demanding ldquosmart moneyrdquo shareholders than at any point in recent history Budgeting accounting and financial reporting will no longer exist as sole priorities but as a core competency among a
ldquoBy effec-tively using real-time data CFOs can create a dynamic process that proac-tively drives performance account-ability and value crea-tionrdquo
By Aaron Heidari
43
Private Equity ANALyTICS
wwwthecfomecom
robust set of complimentary and required skills Most of all the bar for CFOs is rising as PE investors will only accept above-average performance from their management teams
CFOs were once more reactive in function setting budgets based on other executivesrsquo plans and managing the flow of reporting to shareholders on a quarterly and yearly basis Today CFOs are required to become proactive managers of their respective businesses alongside their C-suite compatriots using a granular data-driven approach to aggregate analyse implement and report on every aspect of a companyrsquos operations
An important tool to drive this value creation process are KPIs Yet KPI structures including both aggregation and output are generally not up to the standards required of private equity investors prior to an investment being made
ldquoThe benefits of using KPIs and monthly reporting packages are significant By effectively using real-time data that is actionable and by partnering with functional area leaders within the organisation company CFOs can create a dynamic process that proactively drives performance accountability and value creationrdquo said Amanda Robinson Vice President of Accordion International in Dubai a consulting firm which is comprised of former private equity and investment banking professionals who
MENA region Cumulative Funds Under Management Since 2008
Source Zawya private Equity Monitor
19 636 20 36321 586
22 64323 506 24 250
-
5000
10000
15000
20000
25000
2008 2009 2010 2011 2012 2013
Cu
mu
lati
ve f
un
ds
($ m
)
$15mAverage MENA PE investment size in lsquo13
50Percentage of investment in IT and energy sectors
STAT FACTS
44 wwwthecfomecom
work with companies to deliver cost-effective project execution services
Active shareholders whose money it is being spent will typically require a data-driven justification before approving any budgets capital expenditures or new acquisitions Furthermore in many private equity backed companies the use of debt and the matching of shorter-term bank financing with longer-term investments will only be considered after a robust analysis is conducted to understand the companyrsquos ability to service that debt in the future This evaluation is not simply to identify revenues expenses and profits Itrsquos about drilling down into every transaction and rooting out data processing and reporting At least that is the expectation
The most valuable CFOs are those who have the ability not just to scrutinise and understand the financials but all also possess a wider grasp of the underlying data which truly comprise the business As an investor who has just acquired a stake in a new business I want a CFO who can manage the transition and stay ahead of my expectations Most of all a CFO should impress upon the companyrsquos shareholders a new way of doing business The first 100 days of an acquisition are said to be the most important During this period the CFOrsquos worth will be established when the new financial plan is due and the platform for the next five years of growth is presented
A CFO should man-age the tran-sition stay ahead of expectations and impress upon the companyrsquos shareholders a new way of doing business
Investment Volume By Sector Since 2006
Investment Volume By Sector in 2013
Source Zawya private Equity Monitor
1
3
30
17
3
28
3
4
6
4
6
5
17
9
9
6
9
5
8
6
6
2
3
10
Education
Education
Information Technology
Information Technology
Other
Other
Telecoms
Telecoms
Media
Media
Transport
Transport
Oil amp Gas
Oil amp Gas
Healthcare
Healthcare
Consumer goods
Consumer goods
Food amp Beverages
Food amp Beverages
Leisure
Leisure
Manufacturing
Manufacturing
ANALyTICS
Private Equity
2000857 NBAD ratibi mag ad 200x268 Finalindd 1 92514 1017 AM
46 wwwthecfomecom
THE FUTURE OFACCOUNTING EDUCATIONAddRESSINg THECOMpETENCY CRISIS
Have you ever stopped to think about how the accounting profession has changed since you graduated from college Recent graduates can answer this question by reflecting on the last two or three years whereas for other more seasoned professionals answering this question requires a bit more thought and memory searching Indeed we can all think of ways that the field of accounting is remarkably different today from the one we likely envisioned during our college daysmdashregardless of which decade we each donned our cap and gown This gradual transformation of the accounting profession leads to two important questions related to competencies bull Which competencies are important for success inaccounting todaybull Were these competencies consciously developed as partof your accounting degree programme
We suspect that more than a few of you would answer ldquonordquo to the second question Put another way our profession may be facingmdashmore so than at any time in the pastmdasha ldquocompetency crisisrdquo that is a gap between the competencies needed for professional success and those taught in our college classrooms today We propose a three-pronged strategy or ldquogame planrdquo for overcoming this competency crisis and in turn better preparing accounting graduates for the challenging world they will face First all of us accountants need to understand the changes that have already taken place in our profession and perhaps more importantly anticipate the changes that are on the horizon Second we need to educate ourselves and future generations of accountants so that as a collective group we can deliver the expanding set of competencies demanded in todayrsquos dynamic organisational
contexts Third as professional organisations and as individuals we need to think beyond ourselves by asking How can I (or we) help the accounting profession address the competency crisis
A Shift Toward Integrated ThinkingMany articles and white papers have been written that describe in detail the changes that have occurred in our profession over the last few decades but for our purposes wersquod like to distill these changes down to one crucial idea How does the accounting function add value to an organisation Accountants have evolved from support-oriented personnel who hand off information to others who actually make decisions into business partners who ldquohave a seat at the tablerdquo with managers
By peter C Brewer James E Sorensen CpA CgMA and david E Stout
47wwwthecfomecom
1048576bull What regulatory risks mayaccompany the proposal
1048576bull What social and environmentalfactors will we face if for example the proposal requires investing in overseas operations
1048576bull What types of employeeresistance may arise if we implement the proposal and how will we overcome the root causes of any such resistance
1048576bull Can and how should we valuefuture options associated with the proposal such as expanding or contracting the investment over time as new information becomes available
1048576bull Should we use debt or equity tofund the proposal
In short accountants have evolved to become integrated thinkers who enable EPM by partnering with managers across the organisation to add value Yet as EPM has gradually become the centrepiece of our professionrsquos value proposition accounting education hasnrsquot done enough to embrace it To overcome this gap wersquod like to further suggest that the concepts of competency integration and EPM need to come ldquofront and centrerdquo as we move forward in educating the next generation of successful accounting practitioners
Accounting Education No Longer on the SidelinesRecently a task force consisting of members of IMAreg (Institute of Management Accountants) and members of the Management Accounting Section (MAS) of the American Accounting Association (AAA) addressed the competency issue How should accounting education change fundamentally to help close the competencies gap The efforts of the task force led to
cash flows and how to apply discounted cash flow (DCF) decision models such as net present value (NPV) is of foundationalmdashsome might say critical mdash importance But integrated thinkers draw on an understanding of organisational strategy coupled with a broader set of competencies (beyond what might be considered technical or foundational knowledge) when making these types of decisions For example they consider how behavioural issues may influence the capital investment decision-making process Perhaps the financial estimates contained in the NPV analysis are too optimistic because the manager who prepared the numbers has a vested interest in seeing the project approved Decision makers also need to consider issues such as leasing vs buying a capital asset and the corresponding impacts on the financial statements and ratios that are tracked by investors and lenders What nonfinancial factors are associated with the proposed investment Add in the tax consequences of capital investment decisions coupled with the need to maintain internal control over any new business processes tied to these decisions and the need to think in an integrated fashion across a variety of accounting competencies becomes apparent
Furthermore becoming a true business partner with managers across the organisation requires more than simply integrating various accounting competencies It also means thinking like a business manager or a chief executive officer (CEO) Returning to the capital budgeting example an integrated thinker will ask questions such as
across the organisation Together they formulate and plan strategies then participate in collaborative decision-making processes that execute those strategies in a manner that adds stakeholder value Said another way accountants have evolved to become enterprise performance managers This shift in our orientation from a support function to an enterprise performance management (EPM) role has enormous implications for defining the determinants of success within our profession the most important of which involves becoming collaborators and ldquointegrated thinkersrdquo Take for example a common but important business decision process capital investment analysis Certainly technical knowledge regarding how to estimate relevant after-tax
48 wwwthecfomecom
expanding capital budgeting discussions to include financial statement impacts tax consequences and internal control issues integrates topical coverage across the External Reporting and Analysis Taxation Compliance and Planning and Assurance and Internal Control competencies shown in Figure 1
Third accounting curricula can incorporate a broader set of management competencies For example evaluating capital investment proposals from the perspectives of change management (Leadership) social and environmental issues (Ethics and Social Responsibility) regulatory concerns (Governance Risk and Compliance) and capital structure (Additional Core Business Competencies) brings a CEOrsquos perspective to the decision-making process
Fourth accounting curricula should include foundational competencies such as proficiency with spreadsheets and written and oral communication In the context of capital budgeting this may include asking students to use Microsoft Excel to perform a sensitivity analysis and then to present their findings to the entire class
Working to Fix the ProblemAt this point although you may agree with us that therersquos a competency crisis within the accounting profession you may be wondering What does this have to do with me What can my organisation do to help address this so-called competency crisis The answer a lot Practice partners and academic partners can help the accounting profession overcome the competency crisis That said letrsquos take a closer look at the role of practice partners first
improvement) and accounting competencies (external reporting and analysis planning analysis and control taxation compliance and planning information systems assurance and internal control and professional values ethics and attitudes) Of critical importance to the framework is the assumption that the set of competencies contained in Figure 1 would be developed and integrated over time through a blend of formal education (including continuing education) training and job experience
What levels of integrationmdashon the road to developing integrated thinkers in accountingmdashare possible First accounting educators can integrate within a single accounting competency So referring back to our capital budgeting discussion teaching computational models such as NPV analysis coupled with a review of various behavioural issues associated with capital investment decisions would be an example of integrating within the Planning Analysis and Control competency listed in Figure 1
Second professors can integrate across accounting competencies For example
a recently published article that contains a proposed framework for accounting education reproduced here as Figure 1 The framework is general in the sense that itrsquos meant to apply to all accounting students not subgroups based on career specialisation such as tax assurance services corporate finance and the like Itrsquos based on the idea that accounting educators can better prepare students to deliver our professionrsquos EPM value proposition through integrated competency-oriented curricula (For more see ldquoFocusing Accounting Curricula on Studentsrsquo Long-Run Careers Recommendations for an Integrated Competency-Based Framework for Accounting Educationrdquo in the May 2014 edition of Issues in Accounting Education)
A glance at Figure 1 reveals three levels of competencies foundational competencies (communication ability to leverage technology and analytical thinking and problem solving among others) broad management competencies (including leadership ethics and social responsibility and process management and
Proposed Competencies-based Framework for Accounting Education
FOUNDATIONALCOMPETENCIES
ACCOUNTING COMPETENCIES
BROAD MANAGEMENT COMPETENCIES
leadership
ExternalReportingamp Analysis
PlanningAnalysis
amp Control
TaxationComplianceamp Planning
InformationSystems
Assuranceamp InternalControl
ProfessionalValues Ethics
amp Attitudes
Communication
Quantitative
Interpersonal
Technological
Analytical Thinking ampProblem Solving
Ethics amp SocialResponsibility
ProcessManagement ampImprovement
GovernanceRisk amp
Compliance
AdditionalCore BusinessCompetencies
Although you may agree with us that therersquos a competency crisis within the account-ing profes-sion you may bewondering What does this haveto do with me
A practice partner should be or become a CMAreg (Certified Management Accountant) maintain professional certification by completing required Continuing Professional Education (CPE) hours and regularly read the IMA publications Strategic Finance and Management Accounting Quarterly
In addition there are a number of excellent resources that deal with topics covered in this article and that IMA makes available to its members
Strategic Finance PowerPacks(wwwimanetorg SFPowerPacks) These are resources focused on contemporary topics similar to those discussed earlier Current offerings include Risk Management Strategic Planning IT Skills amp Software and Internal Controls Each PowerPack includes a combination of resources such as research studies articles and links to webinars
Statements on Management Accounting (SMAs)(wwwimanetorgresources and_publicationsresearch_ studies_resourcesstatements on_management_accounting aspx) SMAs represent monographs classified into one of the following six categories Leadership Strategies and Ethics Technology Enablement Strategic Cost Management Business Performance Management Finance Governance Risk and Compliance and the Practice of Management Accounting Multiple items are available within each category For example the Practice of Management Accounting category includes (among other items)
49wwwthecfomecom
the Definition of Management Accounting and Implementing Shared Service Centres
Research Studies (wwwimanetorgresources_and_publicationsResearch_Studies_and_ResourcesAll_reportsaspx) The ldquoThoughtLeadershiprdquo section of IMArsquos website includes research covering a broad range of issues classified into seven categories For example under the ldquoGlobal Business Environmentrdquo category the following two research reports are available ldquoKey Differences Between IFRS and US GAAP Impact on Financial Reportingrdquo and ldquoCosting Methodologies and Cost Management Practices in the Peoplersquos Republic of Chinardquo
IMA Leadership Academy (www imanetorgprograms_events leadership_academyaspx) As described on the IMA website this programme is designed to assess a memberrsquos leadership status enhance that individualrsquos skills (principally through monthly webinars) and recognise leadership achievements These benefits are free to members
How You Can Make a Bigger Impact In addition to attending local regional and national IMA meetings consider inviting a small group of students to each chapter meeting This could be a wonderful (and relatively low-cost) option for mentoring aspiring accountants and finance professionals providing networking opportunities and introducing students to cutting-edge issues regarding the practice of management accounting Joining a university accounting
advisory group may be another way to influence the development of EPM in that institutionrsquos curriculum design
Other methods to enhance EPM in your organisation include (1) forming user groups within your company your local IMA chapter or your industry to review and share EPM experiences (2) encouraging advancement in the firm to be linked to EPM proficiency (3) focusing your companyrsquos recruiting efforts on candidates who display a background in andor understanding of EPM and (4) organising cross training within your company to enhance a mutual understanding of each otherrsquos respective roles
Finally visit the Competency CrisisTM website (http competencycrisisorg) set up by IMA to unite the accounting and finance constituencies professionals students employers academics and professorsmdashand explore competency issues through the lens of each stakeholder group The site is designed to ldquoencourage a discourse spur action and create a community dedicated to resolving the serious crisis of competency present in the professionrdquo Special sections of the website are devoted to educators students and employers professionals
Our Partners in Education Much like a practice partner an academic partner should be or become a CMA maintain professional accreditation by completing CPE hours and regularly read IMArsquos publications
Academic members of IMA can pursue and actively promote the CMA programme at their respective institutions
50 wwwthecfomecom
IMArsquos website contains helpful resources including an exam content overview content specification outlines for each of the two parts of the CMA exam and learning outcome statements The current exam covers some of the professional competencies represented in Figure 1 A summary of changes to exam content which will be effective in January 2015 is provided on the IMA website in News amp Media Relations which is located under ldquoAbout IMArdquo (See the press release dated March 24 2014) Other helpful resources include ldquoICMA Announces CMA Exam Content Changesrdquo in the April 2014 issue of Strategic Finance as well as ldquoManagement Accounting Career Readiness Shaping YOUR Curriculumrdquo
These forthcoming changes are based on the most recent IMA study of the knowledge and skills needed by management accountants from the view of CFOs controllers and other accountingfinance professionals from around the world
Also consider taking a group of your students to the IMA Student Leadership Conference held each November The Conference provides excellent networking opportunities for you your students and practicing professionals Students can learn firsthand from Conference presenters the challenges and opportunities facing finance and accounting professionals today
Moreover if your institution doesnrsquot currently have an IMA Student Chapter consider forming one One of the authors of this article David Stout reinstituted the student chapter at his school (Youngstown State University) after travelling with a group of his students to the IMA
Student Leadership Conference in Cleveland Ohio Through an IMA Student Chapter on campus students are able to work closely with a sponsoring local IMA chapter and bring to campus speakers who are experts in a wide range of topics including those discussed earlier in this article Each year student chapters compete for an Award of Excellence (AOE) and recognition as an Outstanding Student Chapter In addition IMA student members are able to engage in networking activities leadership training mentoring and community service programmesmdashall through their local chapter
You also might consider volunteering to serve as a Campus Advocate In this role yoursquoll represent IMA in all major matters of interest to your students (scholarship opportunities starting a student chapter mentoring and the like) and to your institution (for example leveraging IMA resources to advance the relevancy of the accounting curriculum use of educational case studies published in the IMA Educational Case Journal and access to IMArsquos ethics curriculum)
And if you havenrsquot yet done this ask IMA to endorse your accounting programme (information is available at www imanetorgeducator_resources indexaspx) This programme is designed to identify business curricula that meet the quality educational standards required to prepare students to earn the CMA designation Endorsement is based on an analysis of the curriculum and topics covered on the two-part CMA exam Currently 12 programmes have been endorsed
Finally if your school has an IMA Student Chapter consider participating in the annual IMA Student Case Competition where students are asked to propose a solution to a real world problem (Cases are solicited each year by Raef Lawson IMA VP of Research and Policy and IMA Professor in-Residence) Finalists make their presentations at IMArsquos Annual Conference amp Exposition before a set of judges consisting of accounting faculty members and practitioners Each year a new case is published in the August issue of Strategic Finance for students to use for that yearrsquos competition
Working TogetherIn this article we have summarised the changes that have affected the accounting profession and provided a competencies-based framework for guiding accounting educators in responding productively to those changes As a management accountant you know that implementing change in any organisation let alone within an entire profession never comes easily To be successful in overcoming our professionrsquos competency crisis IMArsquos practice and academic partners will need to assume leadership roles in defining enterprise performance management as the cornerstone of the accounting professionrsquos value proposition
This article was orginally published in the August 2014 issue of Strategic Finance It appears here with the permission of The Association of Accountants and financial professionals in Business
We need to educate ourselvesand future generations of account-ants so that as a collec-tive group we can deliver theexpanding set of com-petenciesdemanded in todayrsquos dynamicorgani-sational contexts
THE POWERFUL AND THRIFTY OFFICE ALL-ROUNDERS
The new ECOSYS M3560idn series will astound you With their print speeds of up to 60 pages per minute they are among the most productive A4 bw multifunctionals on the market We nevertheless managed to keep their ecological footprint and total cost of ownership impressively low by using our well-known ECOSYS technology and equipping the devices with our renowned long-life components The result Not only less waste and lower maintenance costs but also less hassle for you and all your colleagues You will also greatly appreciate the many customisation possibilities of the devices equipped with KYOCERArsquos open solution platform HyPAStrade as it allows you to tailor the device to your needs So yes we are proud of our new range of MFPs and can hardly wait to share their numerous benefits with you
For more information please contactKYOCERA Document Solutions Middle East | PB Box 500817 DubaiUAE | Tel +9714 4330 412 | Fax +9714 4231 944KYOCERA Document Solutions Europe BV - wwwkyoceradocumentsolutionseuKYOCERA Document Solutions Inc - wwwkyoceradocumentsolutionscom
52
ACCAINTERVIEW
wwwthecfomecom
GLOBAL By ASSOCIATION
across the region from our key employers and learning provider partners to our active and growing student and member base I want to understand their challenges and priorities and how ACCA can work with them to help support the economic success of the region
What can a CFO gain from working with ACCAThe ACCA qualification is about complete finance professionals For CFOs it brings the technical knowledge vital to business success complemented with the strategic management skills and ethical competence crucial to an organisationrsquos success As an organization ACCA in the UAE brings CFOs access to that local and global network of peers and expertise along with our leading research and insights that help them to keep up to date on the issues that matter most
Are there any initiatives in place to leverage the recently announced partnership with AAA
How are the ACCArsquos many years of activity being applied to the Middle EastACCA has now had a presence in the UAE for well over a decade During that time we have established strong relationships across the Middle East epitomised by the recent signing of our Strategic Partnership with AAA As a national body in choosing to partner with ACCA they recognised the local and global perspective we bring We are continuing to work with students members and employers across the Middle East to build their networks knowledge and business success through events research and insights and access to a growing number of online resources
Which initial priorities are among your key aims upon joining the organisationrsquos efforts in the UAEIn the first few months I hope to build on the success of the team in the UAE My priority will be to meet as many of our key stakeholders
The Association for Chartered Certified Accountants (ACCA) provides its services across a number of international borders The recent announcement of Lindsay Degouve de Nuncques as the new head of the Associationrsquos UAE chapter further exemplifies the ACCArsquos reach based on her previous work in the UK Nuncques shares here what she brings to the Middle East and just how globalisation has driven her ascent
53
ACCAINTERVIEW
wwwthecfomecom
The strategic partnership with AAA is the first of its kind in the region Students who complete the UAECA qualification will be entitled to both the AAA and ACCA designations and ACCA members in the UAE will also be eligible to apply for AAA membership This is a very exciting development in the market and together AAA and ACCA will be working to deliver maximum value to all our stakeholders from this partnership As we launch the UAECA qualification this activity will start in earnest
Which key industries will you be spotlighting in the Middle East in the months aheadOur experience of working across all sectors and levels of organisations globally gives ACCA a unique insight into all types of industries We will continue to be working with employers across the spectrum in the months ahead to help them gain the insight and make the connections that drive businesses to succeed at whatever they do
ldquoThe ACCA qualification is about complete finance professionals For CFOs it brings the technical knowledge vital to business success complemented with the strategic management skillsrdquo
54
Islamic FinanceMARKET OUTLOOK
wwwthecfomecom
In its 10th instalment the Forum is hosted in Dubai as a direct result of the UAErsquos increasing importance in the world of global Islamic finance
THE WORLD ISLAmIC ECONOmIC FORUm LANDS IN DUBAI
In Dubairsquos continued quest for leading the world across a range of spectrums the Emirate accelerated its desire to become the worldrsquos leading hub for Islamic finance by hosting the 10th installment of the World Islamic Economic Forum (WIEF) Delegates from dozens of countries attended to take part in a three-day event held at Madinat Jumeirah which rests alongside Dubairsquos gleaming coastline Held under the patronage of His Highness Sheikh Mohammed Bin Rashid Al Maktoum the
Vice President and Prime Minister of the UAE and Ruler of Dubai key speakers included The Honorary Dr Zeti Akhtar Aziz Governor of the Central Bank of Malaysia HE Kairat Kelimbetov Governor of the National Bank of Kazakhstan The Honorary Datorsquo Sri Mohd Najib Tun Abdul Razal Prime Minister of Malaysia and HE Xavier Bettel Prime Minister of the Grand Duchy of Luxembourg
Launched in 2006 in Malaysia WIEF has grown in tandem with the increased
Delegates from dozens of countries attended WIEF to take part in the three-day event
sophistication and reach of Islamic finance After a successful event in London in 2013 amidst increased interest in Islamic finance across Europe WIEF relocated to Dubai where the local business structure is keen to host halal finance
Said Hamad Buamim President and CEO Dubai Chamber of Commerce and Industry co-organisers of the event ldquo[The forum] is the start of a new chapter of cooperation between Dubai and the world as part of
55
Islamic FinanceMARKET OUTLOOK
wwwthecfomecom
Dubai Capital of Islamic Economy visionhellipestablishing a unified regulatory authority to provide the framework for standards across halal industries will significantly accelerate growth Likewise we need to see increased cooperation and partnership between the public and private sectors This is already happening with great success here in Dubairdquo
The order of global cooperation needed to facilitate growth across the Islamic finance world was more than apparent at WIEF based on how many differing nations were represented at the event The exhibitorrsquos hall was populated with a number of key Malaysian stands representative of the Southeast Asianrsquos ranking as the global leader in Islamic finance Also present were companies from Saudi Arabia also a key locality in the worldrsquos halal industries An interesting yet prescient presence was of attendees from South Korea a nation which is eager to participate in Islamic finance and will be hosting the WIEF Pyeongchang Roundtable in December 2014
ldquoGangwon is a province located in Korea which is very interested in new business opportunities Wersquove realised the strength of the Islamic economy and have come here with many different companies The first type is based in real estate investment We also have companies which want to export their products to the Islamic economy based on their halal qualities And Gangwon will also be hosting the Winter
ldquoKorea is very interested in the strength of the Islamic economy and wants to export its products based on their halal qualitiesrdquo
56 wwwthecfomecom
$247trillionProjected value of halal products industry in lsquo18
125Muslim percentage of global tourism expenditure
STAT FACTSOlympics in 2018 and are presently seeking investments for this as wellrdquo said Seong-hun Kim a member of Gangwon Province Governmentrsquos Export Support Team
Dubai proved to be an excellent place for the event considering how well the UAE is able to so regularly corral international cooperation A key sign of this was witnessed recently when Luxembourg now considered the third most important base for Islamic finance globally opened a finance office in Dubai International Finance Centre The European nation also opened a euro200 sukuk earlier this year which was quickly oversubscribed
The prime minister of Luxembourg offered the WIEF audience a riveting speech which detailed just how international the Forum has become whilst encouraging more of the world to support the growing influence of Islamic finance
Said Bettel ldquoWe need to innovate more economic partnerships for growth We sometimes need to reengineer relationships but also have to make sure these relationships remain sustainable Growth in one country also brings growth to others as long as this is guided by free market initiatives Free trade and free flow of capital combined with innovation leads to prosperity We have all gathered here in Dubai to explore the future of Islamic finance and Luxembourg is also a pioneer of Islamic finance in Europe The Islamic financial sector has a major role to play in continued global growthrdquo
The Islamic Corporation for the Development of the Private Sector (ICD) is based in the Kingdom of Saudi Arabia where it manages an international fund worth $2 billion half of which is available for subscription With shareholders in more than 50 countries and a sovereign sukuk fund recently launched in West Africa the ICDrsquos CEO Khaled M Al Aboodi attended WIEF this year excited to participate in the global event
How does the ICD approach its attendance at the World Islamic Economic ForumI think the Forum is one of the best places for discussing the financial issues of the OEC member countries It has been around for ten years and has grown to become a very important platform for discussion Wersquore here to attend and listen but also to network Itrsquos a great networking platform and a place to share views whilst letting everyone know what we have to offer
How has Islamic finance changed over the yearsOf course itrsquos growing in a large scale Some of it actually needs more support particularly with respect to regulatory frameworks Wersquore trying to partner with many international organisations like the IMF to try to provide support to countries to adapt regulation for Islamic finance Sukuk issuance is one of the biggest issues that needs to be addressed because there is a huge amount of liquidity in this arena Due to issues related to regulation sukuk issuance can be costly But with the regulation we are confident it will be on a level playing field with other forms of finance Compliance is a major area where more work can be done The Forum started with a roundtable on sukuk which shows how helpful WIEF has been over the years
What type of work does ICD do internationallyICD helped the government of Senegal to issue the first sovereign sukuk This was successfully issued last summer Progressing in this manner is something wersquod like to see continue across West Africa in order to utilise its resources with aiding development in the region in mind
QampA WITH KHALED M AL ABOODI CEO OF ICD
Islamic FinanceMARKET OUTLOOK
OFFICIAL SPONSORS
ENDORSED BY OFFICIAL HOST OFFICIAL
COMMUNICATIONS PARTNER
MEYDAN HOTEL DUBAI UAE19 - 20 NOVEMBER 2014
WOMENOMICSthe next emerging market
TAKE PART in making change happen UNITE with business and through leaders from across the globe
PARTICIPATE to the expansion of a modern and inclusive economy
58
Gautam PradhanINTERVIEW
wwwthecfomecom
SUCCESS BEyOND BOUNDARIES
in other management roles such as strategic decision making mentoring and leading efficiency and productivity across a range of other departments and functions as well as a being a catalyst in ensuring that the boardrsquos vision for the organisation is achieved
A significant percentage of NMDCrsquos shares are owned publicly Does the CFO play a role in balancing the interests of the shareholdersAs a CFO balancing the shareholdersrsquo interests is definitely part of my responsibility In order to achieve this goal there needs to be a careful evaluation of each decision while keeping the short-term and long-term goals of the company in mind At NMDC we actively implement a system where we utilise a balance scorecard as a method of ensuring that all our primary objectives are met yet at the same time continuously enhance our relationships with our shareholders
NMDC has completed various projects across the Emirates Are there plans to move abroadAs NMDC moves towards becoming an international player our strategic expansion plans are focused in areas within the GCC region and India In line with this strategy we opened
How has a company with such a unique set of deliverables grown so consistently over the yearsOur organisation strongly believes that the core to our strength is the people process and equipment A strategic decision led by our Board of Directors and the senior management has been implemented that required us to consistently invest in these three aspects to help expand our business beyond the territorial boundaries of the UAE and at the same time enhance what we can offer which is relevant to these segments We attribute our success to the efforts which every employee contributes We also strongly believe in the ldquoWe can make it happenrdquo principle The management raises the index of performance while setting SMART objectives within the organisation and encouraging the employees to achieve them
How has your position as the CFO changed over NMDCrsquos 35 years of operationAs the market evolves and business dynamics change my role as the CFO has become complex and more challenging A few years back I was mainly focused on bookkeeping accounting and other financial responsibilities such as arranging bank facilities But moving forward I became more involved
The UAE is progressively becoming a hub for world-class infrastructure The country has duly impressed the rest of the globe with noteworthy land developments showcased across the emirates Among the remarkable landscapes found in Abu Dhabi are the Corniche Beach Yas Island and Sir Baniyas Island Behind these successful projects is NMDC the dredging division of Abu Dhabi National Oil Company (ADNOC)
In an interview with CFO Magazine Gautam Pradhan Chief Financial Officer NMDC shares an exclusive look into the companyrsquos international blueprint for growth and his dynamic role as a strategic leader of one of the best in dredging and marine construction in the Middle East
59
Gautam PradhanINTERVIEW
wwwthecfomecom
branches in Qatar Bahrain Oman and India This has paid rich dividends recently as projects of strategic importance are bagged in Qatar and Bahrain Furthermore NMDC (UAE) has recently played a key role as a leader of an international consortium with Royal Boskalis Westminister (Netherlands) and Jan De Nul Group (Belgium) for the awarding of the Suez Canal Dredging project in Egypt Moving forward we have devised a strategic approach that will enable us to play a key role in the development of Indiarsquos marine infrastructure
What are the global strategies that are part of the CFOrsquos responsibilitiesAs CFO understanding the macro economic scenario risk analysis and mitigating those risks are all a part of my responsibilities I also have to have a proper comprehension
ldquoA few years back I was mainly focused on financial responsibilities moving forward I became more involved in strategic decision making mentoring and leading productivityrdquo
Gautam PradhanINTERVIEW
60 wwwthecfomecom
of the challenges faced by the company in terms of dealing with foreign contracts direct and indirect taxes and hedging and managing the integration process These are essential to enhance shareholders wealth and mitigate undue risk
How significant is accountancy for NMDC in its operations Why exactlyAccountancy is the lifeline of any company it does not only record the finances it also reflects the health of the organisation The MIS reports analysis trends and statistical information go a long way toward effectively providing
the diagnostic approach essential for the company
How have NMDCrsquos environmental activities helped the companyrsquos bottom lineNMDCrsquos work is well-synchronised with our environmental activities and specifically with nature Our activities are closely linked to sand and water and we view such activities with strategic importance Projects such as increasing water supply to mangroves and beach nourishment help us support the environmental activities while adding to our bottom line
ldquoAccountancy is the lifeline of any company it does not only record the finances it also reflects the health of the organisationrdquo
A burgeoning slice of Abu Dhabi coastline
The largest business awards
in the GCC30th November Dubai
nominate now at wwwstarsofbusinessawardscom
Stars of Business has become an iconic awards brand like no other in the region It recognizes the very best SMEs across 26 business categories Itrsquos universally respected as scientifically assessed and unimpeachably judged
327000 SMEs across the UAE$234 billion estimated total revenue of the SME sector4974 Awards entries in 20131856 Individual company applicants
Presenting Partner Strategic SME Partner Gold Sponsor Gold Sponsor VIP Hospitality Partner Supporting Partner
Trade Facilitator PartnerTrade Credit PartnerLogistics Partner
Institutional Partner Institutional Partner Event Partner
OrganiserPublisherMedia Partner Media PartnerPort Authority Partner
62
David Allen INTERVIEW
wwwthecfomecom
What went into completing your bestseller ndash Getting Things Done (GTD)After twenty years of researching developing and implementing a methodology for achieving stress-free productivity based upon
thousands of hours spent desk-side with
some of the best brightest and busiest people in the world I decided to write the manual for it Thatrsquos what Getting Things Done is
What are the five phases of mastering workflowIn order to get
any situation under control so
you can focus you will utilise these five
steps Whether yoursquore managing your kitchen
or your company you will need to collect and capture what has your attention clarify what if anything to do about it organise it according to what it means to you review and reflect upon it in relation to
Todayrsquos evolving CFO is often caught between the world of business set-up generating revenue managing employees and building strong company infrastructure When can things actually get done What can one do to boost productivity and master workflow World-renowned business coach David Allen has the answers
PRODUCTIvITy PRINCIPLES WITH
DAvID ALLEN
63
David Allen INTERVIEW
wwwthecfomecom
those are greatly subvertedHow does one maintain a fair balance between the time spent planning and actually getting things doneYou simply need to spend just the amount of time you need to to trust that what you are getting done is the right thing to be getting done in the moment It takes as long as it takes to get to that point Why would you do anything less
How can one apply your core productivity and workflow principles to todayrsquos technologically driven environmentThe principles and their techniques are system-independent Whether you have meaningful input from the Internet your smartphone or a conversation in the hall you must engage with it equally Technology has simply increased the flow of input and ease of distraction in your world
There is a lot of talk about how connected wersquove become and how connectivity is driving tremendous business growth Does connectivity actually come with its fair share of downsides
Connectivity is obviously a two-edged sword We can have intimate productive and creative interaction instantly with someone on the other side of the world and we can just as easily be distracted and seduced into those engagements when they may not be the best use of our attention and resources Donrsquot shoot the medium Itrsquos all simply bringing attention to your clarity of direction and priorities or lack thereof
Could you share a few quick tips with our readers to instantly boost productivityWrite everything down that has your attention Decide the very next actions required to get closure on all of them Any next actions that require less than two minutes do instantly Park reminders of everything else somewhere that yoursquoll see when you can do something about them
We are currently facing a massive information overload What are some basic principles you could suggest to mentally organise such large amounts of dataConstantly ask yourself Where am I going Whatrsquos important and rewarding to me Is this information
the whole and then engage your resources with intuitive trust
As a CFO how can you transfer efficient workflow management skills to your employees Itrsquos very difficult to legislate processes for individuals ndash you can really only hold them accountable for their results But if you are managing your own commitments and intersections with them with integrity and rigour it will automatically force your team to ldquostep up to the platerdquo in their own behaviours in order to meet your standards If you request their complete list of their company projects and they canrsquot produce it thatrsquos a sign theyrsquore not in control If they make a commitment to you that they havenrsquot kept thatrsquos data about their performance GTD is simply about good operational business practices
With so many planning and organising activities in your methodology is there a risk of losing spontaneity as a strategistThe reason for these best practices is to optimise freedom creativity and spontaneity Without them
ldquoBut if you are manag-ing your own com-mitments and intersec-tions with them with integrity and rigour it will automatical-ly force them to ldquostep up to the platerdquo in their own behaviours in order to meet your standardsrdquo
64 wwwthecfomecom
supporting that Park whatever you find potentially meaningful somewhere that is easy to access when needed
Being an entrepreneur is a non-stop job How do you ensure that you have an adequate work-life balance Pay attention to what has your attentionmdashwith regard to anything Your health relationships career finances etc Notice when something might be ldquooffrdquo and make good decisions about what you need to do to get it back ldquoonrdquo again
Does your work teach people to be efficient or effective In essence they are the same thing Effective choices are generated by efficiency on a higher level If you want to implement strategy most effectively it demands utilising your resources optimally which is efficiency
Does motivation actually improve quality of work or purely quantityDepends on the focus of the motivation You can be motivated to work harder and you can be motivated to work smarter
What is your favourite productivity mantra that
you implement in your day-to-day lifeUsing my own in-basket and note-taking devices to capture potentially meaningful and valuable ideas and soon afterwards clearing all of them out by deciding what to do about them if anything
Your books seminars and other work inspires many individuals and businesses Who is your personal inspiration or role model I have many about many different aspects of my life The only person though that I ultimately trust as my best guide is my higher self which I try to access as frequently and clearly as I can
Finally what advice would you give to current business owners and aspiring entrepreneurs looking to gain complete control of their life and businessCapture what has your attention clarify what you need to do about it to get it off your mind organise the inventory of all your commitments at all levels review and reflect on all of that regularly relax and trust your inner wisdom to engage with the most appropriate thing in the moment
ldquoIf you want to implement strategy most effectively it demands utilising your resources optimallyrdquo
David Allen INTERVIEW
APPSTECH TALK
wwwthecfomecom 65
mAxImISE BUSINESS lsquoON-THE-GOrsquo WITH THESE HANDy APPS
ipAd SpECIAL
SAMSUNG UNvEILS GALAxY NOTE EDGE
Network
AP
Display
OS
Camera
Video
Audio
Additional Features
GoogleMobile Services
Connectivity
Sensor
Memory
Dimension
Battery
The availability of service may differ by country All functionality features specifications and other product information provided in this document including but not limited to the benefits design pricing components performance availability and capabilities of the product are subject to change without notice or obligation
Samsung Galaxy Note Edge Product Specifications
25G (GSM GPRS EDGE) 850 900 1800 1900 MHz3G (HSPA + 42Mbps) 850 900 1900 2100 MHz4G (LTE Cat 4 15050Mbps) or 4G(LTE Cat 6 30050Mbps)May differ by country and carrier
27 GHz Quad-Core Processor
56 inch (1419mm) Quad HD+ Super AMOLED (2560 x 1440 + 160)
Android 44 (KitKat)
Rear Facing 16 Mega pixel Auto Focus camera with Smart OISFront Facing 37 Mega pixel camera with f19Rear Facing Camera HDR (Rich tone) Selective Focus Rear-cam Selfie Beauty face Virtual Tour Shot ShotampMore Dual CameraFront Facing Camera Selfie Wide Selfie
Codec H264 MPEG-4 H263 VC-1 WMV7 WMV8 Sorenson Spark MP43 VP8 Recording amp Playback up to UHD
Codec MP3 AACAAC+eAAC+ WMA AMR-NBWB Vorbis FLAC()() Ultra High Quality Audio (~192KHz 24 bit) support
Multi WindowUltra Power Saving ModeVoice Recorder (Normal Mode Interview Mode Meeting Mode Voice Memo)Download BoosterS Health 35Dynamic Lock ScreenBriefingEdge screen UX Revolving Interaction Immersive apps(Camera Video S Note)Ticker board Express me Quick Tools Night Clock etc
Chrome Drive Photos Gmail Google Google+ Google Settings Hangouts Maps Play Books Play Games Play Newsstand Play Movie amp TV Play Music Play Store Voice Search YouTube
WiFi 80211 abgnac (HT80) MIMO PCIeGPS GLONASS BeidouNFC Bluetoothreg v 41 (BLE ANT+)IR LED (Remote Control) USB20 MHL 30
Gesture Accelerometer Geo-magnetic Gyroscope RGB IR-LEDProximity Barometer Hall Sensor Finger Scanner UV Heart Rate Monitoring SpO2 (Dependent on market)
32 64 GB Internal memory + microSD slot (up to 128GB)3GB RAM
1513 x 824 x 83mm 174g
Standard battery Li-ion 3000 mAh Fast Charging (Adaptive Fast Charging amp QC20)
wwwthecfomecom66
APPSTECH TALK
AIR DISPLAY
SQUARE REGISTER
Using this app you can connect your iPad to your computer and use it as an additional screen While working on an important presentation or sales proposal you can extend or mirror your computer screen on your iPad This app is compatible with both Mac and Windows computers Note that to use this feature you have to install Air Display on your iPad and a separate free app on your computer The computer and iPad also need to be on the same Wi-Fi network in order to work in-sync
For Mac users the app allows you to connect to up to four screens ndash all at the same time
Apart from the ability to convert your iPad into a wireless display whatrsquos also attractive about this app is that it allows you to control your computer wirelessly using your iPad
This fantastic application can serve as a mobile point of sale for your business It allows you to accept credit card payments ndash including Visa MasterCard Discover and American Express A transaction fee of 275 is charged for every time you swipe a card The sale amount is transferred to your account within two working days
Once you download the app you can sign up and register for a unique card reader solution called the lsquoSquare Readerrsquo (this is free) Square Reader encrypts all card details and ensures that the transaction is secure Once you receive your Square Reader you can connect it to your device and are all set
The application also offers added features such as transaction history connecting to a receipt printer creating employee logins and more
AED 3699
PRICE
Free
PRICE
wwwthecfomecom 67
APPSTECH TALK
DOCUSIGNHave you ever been in a situation where your employees need you to urgently sign a contract but arenrsquot able to physically reach you in time DocuSign solves this problem with its easy-to-use eSignature feature In three easy steps you can sign important documents and securely send them to your intended recipient
First you have to import the document to your device ndash this could be from Dropbox Google Drive or another select applications You then place your signature or any other important legal information you need to include such as initials Once you have finished working on the document send it back via e-mail
Whatrsquos particularly great about DocuSign is the great emphasis it puts on security ndash so that users donrsquot have to worry about getting into any legal trouble
Use DocuSign and never miss a deadline again
Free for basic version
PRICE
MPAYAn initiative by the Dubai eGovernment Department mPay is a simple application that allows you to make important payments Once yoursquove signed up and entered your payment details you are good to go You can pay your Dubai Electricity and Water Authority (DEWA) bills Etisalat utility bills Dubai Police fines Recharge SALIK and much more
A handy feature is its lsquoauto-rechargersquo option which you can use to set automatic payments
Free
PRICE
Opinion CIMAPERSONALITIES
wwwthecfomecom68
NEW HORIZONSBy geetu Ahuja Head of gCC at CIMA
The days of the traditional accountant working within a small community in a small town in a small market have long gone CFOs are now being referred to as Chief Frontier Officers as they travel from market to market overseeing their offices overseas This new expanded role has distinct advantages for both the company and the CFO who gain new skills and new insights from foreign branches a single hand at the helm of many markets provides business perspectives on a global scale and benchmarks across the board
On a personal level working abroad also has huge importance Robert Walters the specialist professional recruitment consultancy recently conducted a survey
of almost 2200 employees across a variety of professions exploring a number of topics which ranged from working practices and attitudes to careers The results highlighted some notable trends particularly for finance professionals
In career progression for example the survey showed that 50 of all accountants see working abroad as either lsquoessentialrsquo or lsquoextremely usefulrsquo to furthering their prospects more than banking professionals lawyers and IT workers ndash a strong indication of how accounting professionals are thinking about their future either within their existing company or with opportunities elsewhere
Accountants with globally recognised qualifications obviously have a greater chance of gaining some experience abroad and the lsquoGen Yrsquo professionals in particular seem ready to pack their bags In a CIMA study conducted in the UK last year over a third of those seeking employment in the
next two years will prioritise opportunities abroad over those in their home countries many of them enticed by the career incentives offered by the Middle East
How quickly can they land what seems to be their dream job What are the realities It may be that the move is simply from one branch to another and the only significant difference is a view from the window but for those expanding rather than changing their roles we have seen a very real need for a depth and breadth of knowledge never needed before
As geographical boundaries are pushed ever-wider a CFOrsquos responsibilities are pushed with them For many finance executives the understanding of their own patch of land is no longer enough they now have to be aware of foreign markets up to speed with foreign trends and au fait with foreign laws There is a need for a new commercial awareness in geography as well as philosophy
As geographical boundaries are pushed ever-wider a CFOrsquos responsibilities are pushed with them
John vargheseQampA
wwwthecfomecom 69
BUSINESSSET UP YOUR
IN THE UNITED ARAB EMIRATES
TO
WAREHOUSESOFFICES INDUSTRIAL LANDFLEXI
Quick and easy company set-up
Less than an hour drive from Dubai
Complete cost-effective packages including licences and facilities
100 foreign ownership
Zero income and corporate taxes
Eligibility for UAE Residence Visa
BUSINESS SET-UP SOLUTIONS STARTING FROM AED 15000 (USD 4000)
RAK FREE TRADE ZONE PROVIDES
RAK Free Trade Zone Authority - Government of Ras Al KhaimahUAE (Ras Al Khaimah) Tel +971 7 2041111 (Dubai) Tel +971 4 7041875 (Abu Dhabi) Tel +971 2 6994888
Germany (Cologne) - Turkey (Istanbul) - India (Mumbai)
Call +971 7 204 1111 Visit wwwrakftzcom Join rakftz
98
CFO InfographicPROJECTIONS
wwwthecfomecomwwwthecfomecom
CFO InfographicPROJECTIONS
Optimism
Risks and opportunities
Growth and expansion
CFOGLOBALISATIONINFOGRAPHIC
SOURCES Michael Page International Global CFO Barometer 2012 by Michael Page International Deloitte CFO Signals ndash Q1 2014 Deloitte CFO Signals Q4 2013 Robert Half CFO Insights
4738
44
36
55
72
39
26
42
20
95
71
35
68
CFOs express rising
optimismof CFOs are
optimistic about financial prospects
of CFOs believe its a good time to take greater risks
of CFOs believe financial risk management policies are not significantly aligned to cover market risks
see new product or service launches as a
key growth opportunity
40are hopeful about organisational growth opportunities
of CFOs are now more optimistic than in the last quarter
of CFOs are now more involved in risk management
of CFOs will pursue organic expansion
consider pricing pressures as the top growth inhibitors
are positive about the future state of the Indian economy
of CFOs are more optimistic than
last quarter
of CFOs willing to take greater risks
believe international expansion will play a
major role in in business development
expect MampA activity to rise over
the next year
rate this economy as good or very good
expect a major merger or acquisition
NORTH AMERICA
INDIA
MIDDLEEAST
SOUTHEASTASIA
UK
PACIFIC
WOMEN AS CFOS ( OF FEMALE CFOS IN OF RESPONDENTS)
( of respondents surveyed)
of CFOs spend significant amounts of time as strategists for company growth
76
AFRICA
AUSTRALIA
5 18
Lowest Highest
of CFOs with total annual compensation including bonus and benefits of over US$255000
of CFOs younger than 35 years old when they attained their position
Europe
Europe
13
Asia
14
SouthAmerica
29
Pacific
30North
America
49
49
NorthAmerica
21
SouthAmerica
Asia
43
31
Pacific
30
In North America 39 of CFOs are older than 50 years
On average CFOs worldwide attain
their position between the ages
of 30 and 39
of CFOs are confident about credit availability in the future
4831
73of CFOs feel that the finance function will play a larger role in their companyrsquos development and execution of business strategy
51of CFOs are satisfied with the performance of their finance function
56
98
CFO InfographicPROJECTIONS
wwwthecfomecomwwwthecfomecom
CFO InfographicPROJECTIONS
Optimism
Risks and opportunities
Growth and expansion
CFOGLOBALISATIONINFOGRAPHIC
SOURCES Michael Page International Global CFO Barometer 2012 by Michael Page International Deloitte CFO Signals ndash Q1 2014 Deloitte CFO Signals Q4 2013 Robert Half CFO Insights
4738
44
36
55
72
39
26
42
20
95
71
35
68
CFOs express rising
optimismof CFOs are
optimistic about financial prospects
of CFOs believe its a good time to take greater risks
of CFOs believe financial risk management policies are not significantly aligned to cover market risks
see new product or service launches as a
key growth opportunity
40are hopeful about organisational growth opportunities
of CFOs are now more optimistic than in the last quarter
of CFOs are now more involved in risk management
of CFOs will pursue organic expansion
consider pricing pressures as the top growth inhibitors
are positive about the future state of the Indian economy
of CFOs are more optimistic than
last quarter
of CFOs willing to take greater risks
believe international expansion will play a
major role in in business development
expect MampA activity to rise over
the next year
rate this economy as good or very good
expect a major merger or acquisition
NORTH AMERICA
INDIA
MIDDLEEAST
SOUTHEASTASIA
UK
PACIFIC
WOMEN AS CFOS ( OF FEMALE CFOS IN OF RESPONDENTS)
( of respondents surveyed)
of CFOs spend significant amounts of time as strategists for company growth
76
AFRICA
AUSTRALIA
5 18
Lowest Highest
of CFOs with total annual compensation including bonus and benefits of over US$255000
of CFOs younger than 35 years old when they attained their position
Europe
Europe
13
Asia
14
SouthAmerica
29
Pacific
30North
America
49
49
NorthAmerica
21
SouthAmerica
Asia
43
31
Pacific
30
In North America 39 of CFOs are older than 50 years
On average CFOs worldwide attain
their position between the ages
of 30 and 39
of CFOs are confident about credit availability in the future
4831
73of CFOs feel that the finance function will play a larger role in their companyrsquos development and execution of business strategy
51of CFOs are satisfied with the performance of their finance function
56
10
UAECA LaunchMARKET OUTLOOK
wwwthecfomecom
AAA launches an accountancy Certification for the UAE in collaboration with ACCA
CERTIFICATIONTAKING REGIONAL OWNERSHIP
The United Arab Emirates Chartered Accountants (UAECA) Qualification launched at Dubairsquos Armani Hotel 3 November by the UAE Accountants and Auditors Association (AAA) in association with the global accountancy body ACCA (Association of Chartered Certified Accountants) The announcement coincided with UAE National Flag Day and advanced ever expanding Emiratisation aims across the country With the support of the ACCA the skills gained will not only lead local UAE accountants to excel across the Emirates but also to encourage further growth internationally
A number of notable local leaders spoke at the event and
expressed their delight and favorable expectations for the UAECA His Excellency Sultan Bin Saeed Al Mansouri the UAE Minister of Economy Saif Abed Al Muhairi Chairman of the Board AAA Abdullah Amiri Financial Manager AAA and Ahmad Darwish Secretary General AAA and Chair of ACCArsquos members advisory committee in the UAE each offered speeches to the crowd of assembled finance professionals
ldquoWe are confident that UAECA will be the ambition of young Emiratis who would like to be the future leaders in the finance fieldrdquo said Al Muhairi
The UAECA qualification is the national qualification of the UAE and is based on
the globally recognised ACCA qualification This criterion will provide a dual-branded internationally recognised IFAC compliant route to membership of both AAA and ACCA
Said Stuart Dunlop regional director MENASA ndash ACCA ldquoThis unique partnership between ACCA and AAA will give students access to a national qualification making their skills and knowledge globally and locally relevant Once qualified as an ACCA member they will also be eligible to apply for membership to AAA meaning they can use the titles ACCA and UAECA after their names And because this partnership supports
ldquoWe are confident that UAECA will be the ambition of young Emi-ratis who would like to be the future leaders in the finance fieldrdquo
11
UAECA LaunchMARKET OUTLOOK
wwwthecfomecom
Saif Bin Abed Al Muhairi Chairman AAA
Ahmad Darwish Secretary General AAA
the governmentrsquos initiative to develop the accountancy and finance profession they will benefit from enhanced career opportunities as more employers and stakeholders choose to work with us in the futurerdquo
Emiratis in the accountancy field joined the procession eager to take part furthermore in what the AAA has planned unequivocally encouraged by the Associationrsquos hand in the UAECArsquoS launch The new qualification has stoked promise for bolstering Emirati involvement in local accountancy as well as international ventures which lie beyond the countryrsquos borders
ldquoAs an ACCA member Irsquom really proud the ACCA route
The new qualification has a good deal of promise for bolstering Emirati involvement in local accountancy as well as international ventures which lie beyond the countryrsquos borders
to membership has formed the basis of the new national qualification of the UAE It gives aspiring Emiratis recognition on a local and global stage and is a unique opportunity that will develop our careers and the profession in the UAErdquo said Ayesha Al Zaabi Senior Accountant of Group Finance Aerospace amp Engineering Services Mubadala
The future of accountancy appears brighter than ever in the UAE with the unveiling of an internationally supported qualification specific to the country The potential increase of Emirati participation spells great promise for the finance industry as it grows from within
12
at CPI Media Group the discussion offered a candid conversation of lively opinions bringing together key individuals from prestigious and influential businesses based in the UAE
The spirited discussion delved into how varied and increasingly imperative the Chief Financial Officerrsquos role has become
Vincent Valladares Managing Director Middle East Head Citi Commercial Bank led the vibrant discussion with the support of Anand Nagaraj Vice President Head Product Development Citi Commercial Bank whilst Grant Thornton Partners Jay Raney and Amgad Nassif offered their views as well
CFO RoundtableMARKET OUTLOOK
wwwthecfomecom
One of the trends in world business currently attracting considerable comment and debate is the changing role of the CFO No longer simply the custodian of the businessrsquo finance or the head of accounts the CFO is increasingly seen as a master strategist and the key architect of corporate decision-making As such a roundtable event held by Citi - in collaboration with Grant Thornton - was both a timely and revealing landmark on shifting attitudes and aspiration
IN CHANGING TImESCITI COMMERCIAL BANK CORRALS A pOwERfuL MEETINg Of MINdS
The management guru Tom Peters recently commented that ldquoIn these perverse and perhaps illusory times is it any wonder that the CFO is seen as the one reliable point of reference - the one person from the C-suite cut out for more responsibility and bigger things in the businessrdquo
Citi Commercial Bank and Grant Thornton echoed the importance of this shifting role by gathering a collection of leading CFOs and finance executives at Dubairsquos Grosvenor House - hosting a keynote round table called lsquoThe Changing Role of the CFOrsquo In a world where CFOs are increasingly wearing a number of new hats within their respective enterprises the event asked pertinent questions such as -
ldquoThe CFOs duties have changed as strategy and other focuses are becoming increasingly importantrdquo
bull Whether the CFO is increasingly the businessrsquo key strategist bull Whether or not the role is more and more impacted by changing legislation and regulationbull Is the CFO now effectively the CEO-in-waitingbull What is the role of management education in this new mix
So while much has been written lately about how essential it is that the CFOrsquos function evolve and change the dayrsquos discussion took an overtly practical view and gathered the opinions of the individuals at its core
Hosted by Paul Godfrey Group Editorial Director
13
recession environment has created an atmosphere rife with new regulations which CFOs are expected to master as these international enterprises venture into new markets and encounter sensitive and risk management-oriented frameworks
Citirsquos Vincent Valladares observed ldquoRegulatory issues are becoming bigger for banks as well as compliance And when we look at doing business with companies we want to look at those with good management teams because otherwise it can become difficult The CFO plays a very important role within this processrdquo
CEO waiting in the wingsWhen the group was quizzed on their individual desires to become CEO every hand around the table went skywards with an affirmative ldquoyes all of usrdquo - highlighting how commercially-minded todayrsquos CFOs have become Not to mention just how axiomatic the relationship between CEO and CFO consistently proves to be
Another factor is that amid all this diverse change - in roles working contexts and background economics - the CFO is seen very much as the person creating order control and standardization No small task
Perhaps the only certainty is that the communication of ideas is leading the charge forward for one of the business worldrsquos most important roles and The Changing Role of the CFO provided a definitive benchmark for this onward march
CFO RoundtableMARKET OUTLOOK
wwwthecfomecom
Members of the roundtable trade ideas
Vincent Valladares offers his position
CFO or CCOldquoThe duties have changed in some very clear ways A phrase that I am constantly coming across and strongly agree with is that we should be thinking of the CFO as the Chief Commercial Officer as opposed to someone who deals solely with finance Responsibilities central to finance continue to exist of course but strategy and other focuses are becoming just as if not more importantrdquo commented Rishi R Vig ZAFCO CFO
In addition to how much larger a remit commercial decisions are demanding the importance of regulatory protocols was a much- discussed topic The post-
Vincent Valladares Managing Director Middle East Head Citi Commercial Bank
Anand Nagaraj Vice President Head Product Development Citi Commercial Bank
Jay Raney PartnerGrant Thornton
Amgad Nassif Partner Grant Thornton
Paul Godfrey Moderator Group Editorial Director CPI Media Group
Steven Pradia Assistant EditorThe CFO Middle East
Ganapathi Bhat Senior Manager of Finance GEMS Education
Mark Downie Financial Controller Proclad
Nimesh Lokhandwala ICAI
Jehangir Pocha Himalaya
Kamal Shah Finance Manager Logicom
Rishi Vig CFO Zafco
Low Wai Leng Financial Controller Dubai Precast
Rajeev Jain CFO Afri Ventures
KG Vincent Finance Director FDC International
Ramesh Pemmasani Head of Accounts Intersun
Nagesh Nadig AIC
ROUNDTABLE ATTENDEES
IndiaCOUNTRy FOCUS
wwwthecfomecom14
SUBCONTINENTAL SURGE
By Arvind Chari
Last year was undoubtedly a turbulent time for emerging markets due to political instability inflation and the fledgling recovery in the West all causing significant headwinds Unsurprisingly this has led some commentators to be sceptical about the prospects for these markets including India But the Indian economy is showing signs that it will weather the challenges of the next few years This may not be an easy task given the
manner the Indian rupee plunged in response to the US Federal Reserversquos decision to taper asset purchasing Nevertheless India does have the political will to make the necessary reforms to deliver on its potential
While the Fedrsquos decision has caused some fallout in emerging markets commentators expect that this will tail off over time Meanwhile Indiarsquos economy is driven by domestic demand which means that
India does have the political will to make the necessary reforms to deliver on its potential
With an eye towards the nationrsquos key partnership with the Middle East the following India country report shares economic prospects accounting for last yearrsquos instability ndash defining what investors can gain moving forward
IndiaCOUNTRy FOCUS
wwwthecfomecom 15
$791bTotal trade between India and the UAE in lsquo13
64Expected growth of Indiarsquos economy in lsquo15
Indiarsquos debt market needs to attract stable investors over lsquobond touristsrsquo short term foreign flows evident in Indiarsquos bond markets
it is better placed than most to deal with the world post-quantitative easing Without the so-called lsquotaper tantrumrsquo investors in India might have focused more on the positives in 2013 But given the overall improvements in the economy and the political outlook we feel the India narrative will be harder to ignore in Q4
One of the most significant changes has been the appointment of Dr Raghuram Rajan as governor of the Reserve Bank of India (RBI)
last year He is clearly part of a dying breed of central banker that is one who actually knows how the world works He will make mistakes but the most important thing is that he will be trying to move India in the right direction as shown by his decision to continue with a hike in interest rates at the end of January Bond and currency markets have reacted very well to this move which shows the bank is now ahead of the curve in fighting inflation In October Rajan remarked that
Indiarsquos debt market needed to attract stable investors over lsquobond touristsrsquo a reference to the short-term foreign flows that have been evident in Indiarsquos bond markets His stance is an indication that policies could be shifted to attract more long-term stable money into Indiarsquos government bond markets away from a focus on the foreign-bank lsquoproprietaryrsquo investments that dominate flows currently
Indiarsquos current account deficit (CAD) was set to halve
STAT FACTS
IndiaCOUNTRy FOCUS
wwwthecfomecom16 wwwthecfomecom16
in the year ending March 2014 It was due to fall to 25 from 48 of GDP in 2013 The fall in gold imports alongside currency depreciation was a major contributing factor to this reduction Indiarsquos exports became more competitively priced over Q1 2014 which has led to higher exports in textiles chemicals and leather goods while the drop in the value of the rupee has also led to a fall in non-oilgold imports We expect the CAD to increase to around 3 of GDP for this financial year as gold import restrictions are removed a shift that should still be easily fundable Additionally the RBIrsquos FX reserves have increased by $34bn through the bank and non-resident Indian deposit swaps which was a much higher figure than anticipated This gives the RBI the additional firepower to intervene in the markets if it is necessary to counteract currency volatility In fact the
rupee has been remarkably stable since October and has steadily outperformed its other lsquofragilersquo emerging-market peers
There has also been an improvement in how other countries perceive India Net foreign direct investment is stable despite some negative sentiment driven by the outflows from the bond markets and banks Vodafone described by Rajan as lsquothe poster child for companies with difficulties in Indiarsquo is investing more in spectrum and also buying out minority operators In addition significant Japanese investment into Indiarsquos infrastructure is a further boost to the country and this relationship will be one to watch over the coming years
Overall the world has a much better impression of India than it did a few years ago when the country was facing significant obstacles In 2010 increasing inflation expanding fiscal deficits and an escalating CAD ndash all coupled with slowing growth rates ndash put India in a very difficult position But in 2012 the government realised that the current situation could not continue and since then there has been a much greater focus on reform
A mixture of poor growth and bad policies dramatically hampered Indiarsquos progress earlier this century frustrating many investors But the country is now beginning to drive a wedge between itself and the other more troubled emerging-market economies We feel
162KIndian tourists in Abu Dhabi yTD
Significant Japanese investment into Indiarsquos infrastructure is a further boost to the country and this relationship will be one to watch over the coming years
STAT FACTS
IndiaCOUNTRy FOCUS
wwwthecfomecomwwwthecfomecom 17
Population size 12 billion
Area 3287263km2
Type of government Federal republic
Official language Hindi
Capital city New Delhi
Largest city New Delhi
GDP (2012) $1825 trillion
Central government debt as a proportion of GDP 67
Currency Indian rupee
Conversion rate against the euro 0013
COUNTRy FILE
Hire a local manager or partner who has a very good
understanding of local rules and regulations
Have a longer-term investment horizon because the Indian rupee will remain
volatile for a while
donrsquot view volatility as a risk view the
integrity of the government and
management as a risk
Travel to India and feel the lsquomicrorsquo India
story rather than just read about the lsquomacrorsquo India story
Be patient and have realistic
expectations ndash things take time to work out in India
TOP TIPS FOR DOING BUSINESS IN INDIA
that these differences will mean that India significantly outperforms those economies over the coming years And while we might still be facing some turbulent times for India at least the dark clouds are beginning to break
As with any emerging-market economy the next few years will present challenges alongside opportunities and investors will have to
be comfortable with this state of affairs But India is committed to making the reforms it needs to improve its future The country has much better potential for growth than any developed country and it is also in a far better position than many of its emerging-market peers Now is the time to take advantage of all that India has to offer to investors
INNOvATIONrsquoS BOTTOm LINE Bill Chappell occupies a rare space as the CFO of Dubai Silicon Oasis a free zone dedicated to the development of technology across the emirate In the following interview he shares with CFO Magazine how far along technology has come in the UAE and why the figures are the most important aspect of his role as Chief Financial Officer
18
Cover StoryTECHNOLOGy
wwwthecfomecom
Dubai Silicon Oasis (DSO) occupies a vast 72 million square metre stretch of land in the northern reaches of the UAErsquos most globally recognised emirate Established in 2005 as a government-owned free zone devoted to the development of technology DSO has in the time since welcomed over 1087 companies into a space of which more than 59 of has been developed
Responsible for liaising with DSOrsquos companies both large and small whilst overseeing the free zonersquos balance sheet CFO Bill Chappell mans a unique station as a finance
executive with a keen eye for technological growth
ldquoIrsquove been with Dubai Silicon Oasis for nine years and my role is rather split I am the finance director but Irsquom also responsible
for our initiatives on technology incubation
and investment which is all very interestingrdquo
Chappell said Despite Chappellrsquos
years of experience in the technology industry granting him an imperatively strategic purview as CFO he makes clear what is most important as Chief Financial Officer
ldquoGetting the numbers right must always be the number one thing People talk about strategy and a number of other things but you must focus on the numbersrdquo
Chappell offered ldquoMy background is in technology companies for over ten years previous to coming here so I have a knowledge of technology which I brought to Dubai above all My overlap personally involves understanding technology whilst being a CFOrdquo
When Dubai Silicon Oasis first came into existence the area was undeveloped with no roads customers or residents Today the oasis acts as both a home for industry and residence whilst the Dubai Silicon Oasis Authority operates a number of services unique to companies which operate within the free zone A business incubation centre venture capital funding structure and various forms of entrepreneurial support are among DSOrsquos many aspects available to tenants
Said Chappell ldquoThere are three categories of companies at DSO There are smaller companies which deal more largely with our entrepreneur and incubator ecosystem The other extreme involves global firms such as Fujitsu or SAP and we look at their needs and make sure theyrsquore satisfied as customers They want our help to get setup And then there is the middle group and I meet them if they need my help as CFOrdquo
DSO counts SAP Porsche Fujitsu and Qordoba among its vast bank of companies
19
Cover StoryTECHNOLOGy
wwwthecfomecom
each of which are granted access to the Chappellrsquos well-honed expertise
ldquoBill has been involved in several meetings to gain updates about the company and offer input on what he thinks we should be focusing on whilst asking questions about our financial processes He also sits with the board on occasionrdquo said Loulou Khazen Baz founder of Nabbesh an online marketplace which connects professionals with work opportunities
ldquoDubai Silicon Oasis has been an important Investor at various stages of Nabbeshrsquos journey and a vital stamp of approval Our company has found priceless value in DSOrsquos support and the approachable nature of an involved CFO like Billrdquo
Chappell faces a number of challenges related to investment due to the region not ranking tech developments as high as traditional platforms such as real estate Additional concerns related to innovation have found themselves increasingly entering the CFOrsquos remit as related to encouraging ideas specific to the region Chappell is confident however that certain companies based in DSO are addressing these issues
ldquoIn this region one of my biggest challenges is getting people to understand
ldquoPeople talk about strategybut getting the numbers right must always be the number one thingrdquo
20 wwwthecfomecom
the complexities of tech Technology is a good investment class but the region is focused very much on real estate whilst the investment class of technology doesnrsquot rank as highrdquo said Chappell ldquoIn order to widen the general understanding we want to be developing solutions which address problems specific to the region We have one or two gems for example Qordoba a translation company which translates content in multiple languages The programme utilises artificial intelligence and as a result is getting smarter and smarter each time it is asked to translate so that it understands the meaning of what itrsquos translatingrdquo
Another key variable for DSO is centred on supporting
Dubairsquos goals based around becoming the worldrsquos capital for Islamic finance Chappell describes his role as CFO as one with ldquotwo thousand handsrdquo a multi-layered position which he seems to relish being held responsible for While DSO has grown tremendously in its near decade of existence the free zonersquos exuberant CFO sees lots more to come
Said Chappell ldquoI see us going from strength to strength Wersquove been in existence for nearly ten years When I joined it was empty desert Now we have over 1000 companies and an estimated 43000 living on site Within five years wersquoll also be further down the path and wersquoll be recognised for our contributions to the smart city and the Islamic economyrdquo
ldquoWithin five years wersquoll be further down the path and recognised for our contributions to the smart city and the Islamic economyrdquo
Dubai Silicon Oasis
headquarters
1080Companies in DSO
72millionDSOrsquos land mass in square metres
STAT FACTS
Cover StoryTECHNOLOGy
THE MIDDLE EAST ACCOUNTANCYAND FINANCE EXCELLENCE AWARDSWEDNESDAY 10 DECEMBER 2014AT THE JUMEIRAH BEACH HOTEL DUBAI
ACCOUNTING FOR EXCELLENCE
Once again the very best talent in the world of accountancy and fi nance will be celebrated by ICAEW at a stellar awards ceremony
ICAEW is a professional membership organisation supporting over 142000 chartered accountants around the world And on Wednesday 10 December 2014 at the Jumeirah Beach Hotel in Dubai wersquoll be recognising excellence in ten categories featuring Business Leader of the Year CFO of the Year Corporate Finance Deal of the Year and the Internal Audit Excellence Award
With an impressive line-up of speakers special guests and entertainment it all adds up to a trulymemorable evening
To submit a nomination or for more information visit icaewcommiddleeastawards
Nominations close on 1 October 2014
A WORLD LEADER OF THE ACCOUNTANCY AND FINANCE PROFESSION
400595_ICAEW_MiddleEast2014_Ad_NBAD_DEVERE_207x270_AW_3indd 1 27082014 1541
PROCUREMENTANALyTICS
wwwthecfomecom22
Return on Supply Management Assets (ROSMA) is a pioneering framework launched by AT Kearney after four years of testing one aimed at addressing the aforementioned procurement gaps The performance measurement standard was initiated with an eye on creating a benchmark for the procurement industry and providing a compass to direct investments
ldquoROSMA started in 2010 And it started out with conversations with the CFO There are a group of folks in the company talking about how great their achievements are however
the capital that procurement claims isnrsquot often obvious and can create a disconnect within the companyrdquo said AT Kearney Vice President Federico Mariscotti
This yearrsquos annual report surveyed a number of businesses and arrived at a series of significant findings which outline procurement patternsbull Top-tier companies generate
approximately $16 million in financial return per procurement employee yearly A reported 35 per cent of return derives from applying advanced methods
bull Mid-level performers typically
The first step for compa-nies in the Middle East is to take a good look at what they expect procurement to bring
Leading global management firm AT Kearney recently released a report on the evolving conversation which surrounds procurement A key aspect of the report spells out how much CFOs stand to gain by making more pronounced investments based on utilising procurement in terms of value The relative distance between CFOs and their respective companyrsquos procurement methods is cited as cause for concern
THE NEW LANGUAGE OF PROCUREmENT
generate four to five times of their investment in procurement valuation yet have not exemplified growth since 2011
bull Performers at the lowest level surveyed do not achieve monetary benefits which cover costs
bull The majority of organisations surveyed do not possess the tracking structures needed to analyse procurement performance
bull Regardless of company size or industry procurement
PROCUREMENTANALyTICS
wwwthecfomecom 23
The CFO community has not yet awakened to the value of procurement
performance varies though companies with sophisticated reporting techniques experience less variable performance
The reportrsquos express aim to create a benchmark for procurement follows a wave of process monitoring which found notice in the manufacturing industry in the 1980s supply chain research and engineering in the 1990s and sales and marketing performance being closely tracked in the 2000s
ldquoProcurement costs can represent anything from 20 to 90 of a companyrsquos total cost going from the public sector to consumer goods Yet the productivity of the team that presides over the supply market interactions has a way of explaining their value add using savings that do not add up to the PampL impact measured by finance Savings definitions different baselines and cost avoidance all contribute to a murky aggregate view of the impact on the businessrdquo added Mariscotti
In the Middle East the challenge is fundamental ndash getting the spend data in the first place Companies admit they often do not have a clear categorisation of intelligence lack an agreed definition of savings measurement and generally position procurement as a pre-eminently transactional activity lacking the mandate to contribute value Procurement processes as a result remain centred around purchasing are paper based and lack transparency The first step for companies in the Middle East is to take a good look at what they expect procurement to bring
wwwthecfomecom24
Influencedspend
The inconsequential The brand leaders
Leaning up
Note All three segments start with a common hypothetical spend of 1000 to normalize the case example
Source AT Kearney analysis
Source AT Kearney analysis
TOP QUARTILE
mIDDLE-TIER 50
BOTTOm QUARTILE
704
764
644
522
527
396
42
30
(138) (25)
(63)
19
39
28
15
21
4
3
60
32
18
Sourcedspend
Units of yield
Post-compliance
benefits
Additionalbenefits
Financial results
delivered
19x
17x
middle tier
bottom quartile
TOP-QUARTILE PERFORMERS DELIVER NEARLy TWICE AS MUCH VALUE AS MIDDLE-TIER PLAyERS
THE CFO COMMUNITy HAS NOT yET BEEN ldquoAWAKENEDrdquo TO THE VALUE OF PROCUREMENT
Procurement is not on the radar for those who gave the wrong answers to three essential questions
leadership with accountability for performance is clear but either the measures are not clear or performance is believed to be weak variable or unknown ndash or a mix
leaners and leaders answered all three essential questions correctly and also answered most or all other questions correctly
to the table and how it should support the business To make a steep change companies need to understand the multiple benefits which will occur for investments made once theyrsquove allowed for stronger procurement practices
The benchmarking aspects of ROSMArsquos report speak directly to CFOs based on an existing widespread inability to track and improve this often unquantifiable nature of procurement practices According to the report the CFO community has not yet awakened to the value of procurement and Chief Financial Officers are thus divided into three segments The brand leaders (25) those leaning up (63) the pack (774) and the inconsequential (138)
Said Mariscotti ldquoThis is a way to give procurement a measurable quality that CFOs can quantify You have to know what yoursquore doing with relation to procurement in order to do it well ROSMA gives you a number which helps you understand how good your procurement is working as compared to peers It lets you know whether or not you could be doing something differentrdquo offers Mariscotti
CFOs have exemplified an increasing ability to share in a companyrsquos strategic efforts whilst expand their respective remits Procurement is emerging as the latest segment of this conversation Understanding its value beyond the transactional is the first step for CFOs to fully engage with harnessing the potential of procurement and grow to become a part of the elusively paltry portion of brand leaders indicated in ROSMArsquos report
PROCUREMENTANALyTICS
The pack(774)
Al Sharid is the Vice Chairman of Emirates Transport and has enjoyed a successful career in which the lionrsquos share of his tenure has afforded him a seat at the helm of the business
ldquoI remember when I first received the GM of Tata in the late 80s he said to me lsquoYou are the youngest GM I have ever metrsquo I was 29 years old at the timerdquo Looking at Al Sharidrsquos rapid ascent to the top of his organisation can be mind boggling to the average observer however to those few who strive to push themselves to their limits it is perhaps more common a reality As with any top performer we can often see their desire for results and impact
early on in life and with Saeed the first stride of his race to the top began with an accounting degree in university
It was 1976 and the excitement of the UAErsquos biggest milestone moment its inception just five years earlier still clung to the air from Fujairah to Abu Dhabi and every emirate in between A nation was being built Saeed had just finished high school and went to the United States where he was to study engineering
ldquoI was not yet 18 years old it was 1976 and I was sent to America to study it was the beginning of a dream and a young liferdquo says Al Sharid Unfortunately Al Sharidrsquos academic tour of duty came to
THE EmIRATI DREAm Saeed Al Sharid is today an elder statesman in the world of UAE accountancy With decades of know-how based on chairing a number of key Emirati organisations Al Sharid is today atop his own family firm In the following exclusive interview he shares the importance of education the evolution of a nation and just how being an accountant has driven his many triumphs
an abrupt halt when his father suddenly passed and he was forced to return home ldquoWe are seven brothers and I am the middle one so during tough times we always come together and during this period the strength of my family pulled me through I have three younger brothers and I felt I had to be there for them I felt responsible for them My mother played an omnipotent role in pulling us through this dark moment in our history The death of my father forced us to become more independentrdquo says Al Sharid
Now back in the UAE with his plans of studying abroad dashed Saeed looked at the local schooling system within which Al
26
InterviewPERSONALITIES
wwwthecfomecom
Saeedrsquos desire for results took its first stride with an accounting degree in university
By Shane phillips
27
InterviewPERSONALITIES
wwwthecfomecom
Ain University had just opened ldquoAl Ain University was the pride of the Emirate at the time the students were like celebrities The first batch of graduates were all promised 50000 AED from HRH Sheikh Zayed I was one year late so technically I should not have graduated with the first batch but I was determined I worked an extra course load did summer school and soon caught up to the first class 50000 AED in 1981 was like 5000000 AED today so I was very motivatedrdquo says Al Sharid
Saeed not only caught up with the other students but he wound up graduating atop Al Ain Universityrsquos first class of graduates with a 38 GPA ldquoWe Saeed Al Sharid
28 wwwthecfomecom
to the organisationrdquo he says Saeed first joined Emirates Transport after seeing a small newspaper advertisement for an accountantrsquos position He applied but initially they did not want to hire a local because locals were too expensive After a few months however they called him back for an interview and offered him a job
Initially Saeed struggled to get a promotion or even a raise He worked tirelessly to develop himself and kept detailed notes of his work After nearly two years went by with no promotion he requested to meet with the Chairman of the corporation to discuss his career The Chairman was a Minister making him even more senior than his title implied Al Sharid was courageous and determined ldquoYou should not stay silent you have to take initiative your future is in your handsrdquo says Al Sharid
ldquoI met with the Chairman and told him about my work and what I wanted to do He did not talk he just listened and that was it It was a 15-minute meetingrdquo says Al Sharid Three days after Al Sharidrsquos pivotal appointment he was promoted to Deputy General Manager Directly from a Trainee to DGM skipping all the roles in between at the age of 27 years old They doubled his salary and catapulted him into a senior leadership role
ldquoI felt it was quite strange to move up that fast and personally was not sure I could handle the job I had a lot of resistance from the board I had people in their 50s reporting to me and they were not happy about it So I just took a step back and did not try to get involved in their work too fast I went slow and watched my step This was a very important
ldquoThe UAE was a brand new country and a lot of work was being done to develop the nationrdquo
never had any idea of a career path and there was no such thing as career counsellors or lsquocareer servicesrsquo at the school So when you graduated most people just joined the Ministries The UAE was a brand new country and a lot of work was being done to develop the nation The Federal Government paid the highest and so one just joined them There was no grand vision or dream that I was off and chasing In those times you simply tried to do the next best thing So I ended up working in the Ministry of Health as an accountant Back then a university degree was a veritable qualification and it had a lot of market equity today it wonrsquot even get you in the doorrdquo
As the Middle East market evolves not only are university degrees becoming more common but so are post graduate degrees such as MBAs and even PhDs As such the competitive positioning of professional qualifications are gradually eroding over time
ldquoTo stay competitive executives today will require deep and specialised knowledge of their respective industries an intellectual arbitrage that provides superior results To beat the market to manage the risks to develop a sustained competitive edge For this executives need to stay in a role for the full strategic cycle which is at least four years in durationrdquo says Sharid In the case of Al Sharid he was there for 33 years
ldquoDo you just want a job or are you looking to make a contribution to your company Too many young people today are just looking for a title or a position The difference between those who make it into senior roles and stay there is the desire to create impact to add value
InterviewPERSONALITIES
2012year Moodyrsquos upgraded the UAE economy from developing to emerging
37The UAErsquos global rank for GDP
STAT FACTS
moment for me to gain valuable leadership experience early on To make my learning curve even steeper the General Manager quit after two years and I became the GM at the age of 29 years oldrdquo explains Al Sharid
He ascended to the top job in less than five years and stayed in the position for almost twenty years He was totally committed and could even be found in the bus yard at four in the morning to greet the drivers as they started their shifts ldquoThe key to being successful in business is to keep your finger on the details Some people let the details slip and if this happens you will suffer I get into the yard I meet the drivers I meet all the staff If you saw us you will not know who was the GM or who was the driver You have to realise people will never work for you they will only work with you To me Emirates Transport is like my familyrdquo says Al Sharid
When asked what his keys to success are he says ldquoI think if I was not an accountant I would not be a good leader I would not be a good manager In my opinion trying to do business while not understanding accounting is like getting into the ocean and not knowing how to swim you will drown The Chief Executive Officer who does not know how to create the financial statements is always at the mercy of his Chief Financial Officer He cannot take any big decision on his own and he will not even be able to challenge the CFO Accounting is the bedrock of any business and a critical skill set for any leader No one can argue with this factrdquo says Al Sharid
With over 20 years of experience in tow and the related chairmanships to boot Al Sharid
ldquoTrying to do business while not understanding accounting is like getting into the ocean and not knowing how to swim you will drownrdquo
has since early last year partnered with his family to form Al Sharid Auditing Though the Emirati youth is not as keen to pursue positions related to accountancy as Al Sharid was he feels that there is hope to close the gap
ldquoIt is difficult to find an Emirati expert I studied the audit market specifically and there were others like me then But now you break Emirati auditing involvement into three categories The first involves the big firms This is followed by individual smaller enterprises But thirdly a lot of locals opt to work with the government also Most are not managing their own firms they just have a partnership and they are building thatrdquo Al Sharid explains
ldquoAl Sharid Auditing however is a firm that includes my brother and our two sons which make up a body of qualified professional auditors We established this firm last year and work closely with the government We decided to make one firm together instead of having many smaller entitiesrdquo
Moving forward Al Sharid plans to grow his familyrsquos firm by applying the very belief system which has catapulted him to his position of power Marketing concerns which are designed to furthermore announce how tailored Al Sharidrsquos offerings are at present a key variable to forging ahead
Said Al Sharid ldquoMoving forward wersquore focusing more on the marketing of our firm Itrsquos a matter of not exactly expanding but going over the right deals The market is tough and the small jobs are easy but we donrsquot need them We donrsquot want to be in many rooms we want to be in the important onesrdquo
29wwwthecfomecom
InterviewPERSONALITIES
1UAErsquos rank among GCC nations for chosen hub of all major accountancy bodies
STAT FACTS
Latest insights from PwCrsquos 15th Annual Global CEO Survey revealed that 59 per cent of CEOs see emerging markets as more important than developed markets to their future What is making emerging markets such a pressing priority for C-suite executives Why are emerging markets increasingly grabbing headlines
Emerging markets are large fast-growing and ambitious markets best known for being the growth engines of todayrsquos global economy Research (1) suggests that emerging market countries are expected to amount for more than 60 per cent of global GDP growth ndash a clear indication of the wealth of opportunity they present
Understanding emerging marketsBased on estimates by the International Monetary Fund emerging economies are expected to grow two to three times faster in comparison to developed nations Explaining this fast-growth and the rise of these emerging markets an article on Forbescom details that ldquoduring the US housing crash and resulting credit crisis of 2008 world markets were saved from a total disaster thanks to the big emerging markets ndash mainly Brazil India and China The global credit crisis was one of the longest deepest and most painful in history It toppled Wall Street icons like Lehman
The following report explores emerging markets from West to East which are at the helm of economic development trade and innovation and highlights what their rising popularity means for the growth of your business
Brothers required government bailouts of bulge bracket banks and shocked the global economy with a deep economic recession and even a deeper crisis of confidence Its most important legacy though may be one that has yet to fully unfold the crisis revealed a new world order in terms of economic and market dynamics Emerging market economies finally arrived as
30
Market IntelligenceANALyTICS
wwwthecfomecom
ENTERING EmERGING mARKETS STRATEgIES RISKS ANd OppORTuNITIES
Projected annual GDP growth 2014 amp 2015
PANAMA
67
PERU
RANK42
55
Projected annual GDP growth 2014 amp 2015
Ease of Doing Business
RANK55Ease of Doing
Business
TOP TEN MARKETS
(1) Source here Accenture Research ldquogearing up for growth ndash five imperatives for success in emerging markets 2011 Henry Egan and Armen Ovanessoff
31
Market IntelligenceANALyTICS
wwwthecfomecom
LATVIA
CZECH REP
MALAYSIA
THAILAND
SOUTH KOREA
CHINA
RANK75
41
21
50
45
35
74
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
CHILE
RANK 34
43
Projected annual GDP growth 2014 amp 2015
Ease of Doing Business
RANK 24Ease of Doing
Business
Ease of Doing Business
RANK 6Ease of Doing
Business
RANK18Ease of Doing
Business
RANK 7Ease of Doing
Business
RANK 96Ease of Doing
Business
POLAND
32
RANK45Ease of Doing
Business
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
Source httpwwwbloombergcomnews2014-01-29qatar-china-top-ranking-of-frontier-and-emerging-marketshtml
powerful essential and permanent contributors to global economic growth and sustainabilityrdquo
Bloombergcom recently ranked the top emerging markets based on their performance on 19 economic financial political and social indicators In order of ranking the top ten markets were
CHINA
SOUTH KOREA
MALAYSIA
CHILE
THAILAND
PANAMA
PERU
LATVIA
POLAND
CZECH REP
1 6
2 7
3 84 9
5 10
Market IntelligenceANALyTICS
32 wwwthecfomecom
Making an entryIf your business is looking to enter any of these emerging markets itrsquos worth considering the following checklist
1 Assess your readiness The biggest mistake you can make is to enter a market without proper evaluation of your business Donrsquot do it just because everyone else is Like every other major business decision be sure to speak to your Board of Directors partners investors stakeholders and most importantly your CFO and certified accountants Make a business plan enlisting your objectives goals investment strategy potential risks etc
2 Research research research Do your homework Treat emerging markets as any other international expansion venture and do thorough research on the new market ndash Who are the competitorsWhat is the price point for your product What are the customer demographics What kind of infrastructure do you need for the manufacturing production or distribution of your product
3 Understand the legal framework Emerging markets might not have rules and regulations as clearly spelled out as your home country Invest some time and money in understanding how business procedures work A very obvious area of focus for UAE-based companies is tax Since the UAE is a tax-free economy companies arenrsquot exposed to tax accounting and other legislation surrounding
ndash failing to adapt to the needs and expectations of the local customers is surely a recipe for failure Time and again companies havenrsquot been able to create a customised offer and have had to exit these markets with huge losses A success story however is that of the Haier Group Haier famously introduced washing machines to specifically suit the water pressure levels in the households of India ndash an emerging market strategy that worked very well in their favour and helped them become leaders in that sector Another great example is that of Coca-Cola as explained in an online Reuters article by Matt Reilly ldquoIn Brazil Coca-Cola has used social media to better understand consumer preferences and has developed a successful local network to supply traditional Coca-Cola products as well as fruit juices tailored to local tastesrdquo
7 Local currency This is a complex yet critical area to consider when entering a new market Ask yourself questions such as ndash What is the local currency rate How does it compare to the currency in your home country Is the country import-led or export-led and what impact can this have on the global value of the currency Remember that fluctuations in currency rates can hugely effect your overall investment and thereby the return on investment
8 Build partnerships When entering an unknown territory it is quite useful to have the backing and support of peers who can help you in case of unforeseen challenges This is
this Another area to consider is corruption ndash emerging markets are notorious for high corruption red-tape and bureaucracy Speak to your company lawyer to assess these areas and take proper measures to avoid them before-hand
4 Invest in local talent Working with people already accustomed to the new market avoids the hassle of relocation and reduces costs But more significantly gives you skilled talent to work in these unique environments This also works in favour of your company as it gives you a clear understanding of the kind of compensation packages you will have to offer to your employees For instance employees based in China might want high remuneration and low healthcare benefits while in India it may be quite the reverse Recruiting local talent will also have a trickledown effect ndash your employees will easily be able to cater to the local customer needs without the need for intense training
5 Supply chain 44 per cent of business leaders surveyed consider accessing the right supply chain capabilities extremely or challenging in emerging markets according to Deloittersquos Globalisation Survey Make sure that you know who your suppliers will be what the production costs are whether their production procedures fit your time constraints and if the final product matches your level of quality
6 Cater to local market demands This is one of the most important aspects of all
Do your homework Treat emerg-ing markets as any other internation-al expansion venture
Market IntelligenceANALyTICS
33wwwthecfomecom
the very reason why Mergers and Acquisitions are a popular way to enter into emerging markets Many companies piggyback on their clients who are entering these markets For instance if you are an IT consultancy working on a major project for a manufacturing and trading company with operations across India and China you can use their resources and expertise to explore opportunities in these countries
Remember to consider these steps every time you enter a
new market as every locality has its own set of unique needs One strategy doesnrsquot fit all
Surviving fierce market conditionsWhile the massive opportunity that lies within emerging markets paints a pretty picture businesses need to be wary of bottlenecks such as corruption volatility gaps in laws and regulations and strong competition There have been several high-profile cases of multinational companies withdrawing from emerging
markets owing to immense corruption pressures
There is also a high percentage of inherent risks in these markets which amount to many companies not succeeding in their first attempts It is important to take your time when adapting to these markets and fully understand the business dynamics Following recent case studies and going over the lessons learnt by multinational companies who have made an entry into these markets consider the below
bull Is your companyrsquos head-office ndash and senior management ndash located in your home country without any C-level representation in the new emerging market
bull Are you focusing all of your resources on doing business in the emerging market at the cost of losing profits in your home market
bull Have you researched local competitors in these markets who may already have a strong standing and proven models of success
bull Are you using the same ldquoentry approachrdquo and business model across different emerging markets
If your answer to one or more of these questions is yes it may be time to re-evaluate your presence in these markets and map out a different strategy
Finally remember that no matter what the outcome of your admission to these markets might be your business is sure to emerge out of this stronger tougher and ndash of course ndash ready for a new challenge
of companies believed they had invested more resources in
emerging markets than was required
entered a market without fully assessing the ability of the supply chain to support the expansion
entered with the wrong pricing model and an inappropriate
operating model
CONSIDER THE RISKS
48
24
20
There is also a high percentage of inherent risks take your time when adapt-ing to these markets and fully understand the business dynamics
Source Emerging markets expansion and the supply chain Economist Intelligence unit survey conducted on behalf of EY September 2010
34
CIMA INTERVIEW
wwwthecfomecom
The Chartered Institute of Management Accountantsrsquo (CIMA) Managing Director Andrew Harding visited Dubai to host the Institutersquos seminar on global management accounting principles In the wake of CIMA revising their well heralded syllabus Harding discussed with CFO Magazine what the newest edition held how CIMA is applying a digital focus to its courses and just how CFOs can gain from it all
CURATING CURRICULUm
35
CIMAINTERVIEW
wwwthecfomecom
can give CFOs something they can take and something they can measure their own management accounting services against They can benchmark using this and they can utilise this to see their progress
Part of that is having professional management accountant in place I donrsquot think the landscape matters I believe that there is a common business need wherever you may be around the globe
All of the emerging markets need these skills The first aspect that accounting schools teach is about auditing skills because theyrsquore interested in protecting investments Then they teach you how to keep your business sustainable and to have a sustainable business you need to have a management accountant in place So itrsquos not just here in the UAE where we see these demands we see the same demands in China Indonesia and other powerhouse economies We see their skills shortages and we see the need for solutions in those areas
Talk to me about how this new syllabus works to promote the evolution of a CFOThis syllabus that wersquove
Can you expound on just what can be found within the new CIMA syllabusWe just revised the syllabus we do that every four to five years What we have done this year is a very significant revision It is based from a complex study that we have carried out to over 3000 people from 200 companies globally It is the very first revision since the joint venture with CIMA and AICPA So this has allowed us to attain a syllabus rich with all the data from all the continents in the world For the first time wersquove had real involvement from companies in the USA in this project
Why is the collaboration between AICPA and CIMA significantMost important is the Chartered Global Management Accountant (CGMA) designation that AICPA and CIMA both issue for qualified management accountants Wersquoll have a common curriculum and common examination which will begin on January 1 which gives us a global designation for management accountants wherever they are around the world There are plenty of accounting bodies who claim to be global but actually this is the only
genuinely global designation This is because it has the only one with a North American participation in it So we can say that the CGMA will be just as well-recognised in the USA as it is in Dubai
With the global landscape in mind how do you create an even objective that applies to localities which may prove widely differentialThe landscapes are different but businesses have common needs wherever they may be What wersquove particularly seen since the global financial crisis is that companies are actively looking to build management accountant capability to build that capacity within their organisations They donrsquot want to have a poor quality of information that lacks insight being used in their businesses So they see management accountants can bring solutions to that As a result of all the work wersquove done with companies who participated in the syllabus wersquove also put together a series of what we call Global Accounting Principles This is a series of principles which describes what good management accounting looks like and what top quality management accounting in a company should be producing This then
ldquoCompanies are actively looking to build man-agement accountant capability to build that capacity within their organisa-tionsrdquo
36 wwwthecfomecom
worked on acknowledges the skill set needed by professionals throughout their career Therersquos a base level of competence that is needed but beyond that there is more There is business acumen the ability to communicate and influence and finally the ability to lead So you start off enhancing your raw technical accounting skills Then you need to place that into the context of the business that you are in Then as you move forward and as you rise to become the CFO yoursquoll need the others You have to learn how to present your work in a way that can influence and make an impact in the business The final piece is the ability to lead projects and other functions and to a great extent lead the board of directors Thatrsquos how the context works itrsquos not just about technical knowledge
How do you find that CFOs in the GCC region are responding to this programmeThe CFO has a real challenge on his hands now In 1975 80 per cent of corporate value is showing on the balance sheet By 2010 that dropped to less than 20 per cent Your traditional PampL reports no longer reflect the value of the business or how the business drives value
All things that should be of interest to investors is missing With things like the integrated report initiative wersquore starting to see the other dimensions that add value to business For CFOs thatrsquos all about strategic thinking and considering the long-term objectives Being articulate in implementing those strategies keeping in mind the risks and opportunities that the business faces We are also nowadays witnessing a whole new world of transparency around that
Are there electronic aspects to CIMArsquos advancing approachThe interactive case study simulates a real working situation and it tests how they can apply their knowledge in real life situations Theyrsquoll be presented with a scenario a few weeks before they take the exam so they can prepare for it They then go to an exam centre where they are asked questions about how they will deal with a certain situation in the real world Theyrsquoll get an email from the CFO giving them a certain task for a particular period of time We want to make it as close to reality as possible so students taking the exam will be assessing situations based on real life scenarios
ldquoThe CFO has a real challenge on his hands now as traditional PampL reports no longer reflect the value of the businessand [the role] must focus on strategic thinking and considering long-term objectivesrdquo
218KCIMA members worldwide
STAT FACTS
CIMA INTERVIEW
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
38
ERPANALyTICS
wwwthecfomecom
Faster more nuanced IT solutions are available to the modern day CFO Whilst Chief Financial Officers are called upon to analyse data across a number of spectrums the digital tools on hand are likewise being expanded to aid in focusing more squarely on the bottom line
ExCELLING WITH ERP
The global landscape is today firmly entrenched within a digital model As a result CFOs whom are called upon to take a larger role in a number of variables must also increase their abilities with respect to utilising the many upsides which tech innovations offer a business When surveyed about their most pressing concerns CFOs generally return a varying collection of responses Revenue growth regulatory changes and meeting quarterly goals are among the chief concerns Virtually every obstacle can be hurdled by way of maintaining the order of financial reporting and data which has long been
synonymous with the Chief Financial Officerrsquos remit A widening berth of ERP solutions is making this data all the easier to come by
Despite how sophisticated the market is today it was not long ago that ERP departments once spent days processing business reports
Said Rohan Tejura Assistant Vice President Focus Softnet ldquoTraditional ERP systems were solely data repositories Moreover these repositories werenrsquot real time and were incredibly dependent upon locational connectivity With the emergence of smarter development platforms more versatile devices and
39
ERPANALyTICS
wwwthecfomecom
more intuitive designs of system development the overall experience of the ERP now extends from data warehousing to reporting analysis trend mapping business intelligence and governance oriented capabilities Yet these solutions amazingly execute all of these deliverables via portable handheld devices and through cloud environmentsrdquo
New generation ERP systems must now be on the go whilst including up to the minute analytics to provide deeper insight into the business ERP Analytics tools use historical data captured from various business functions to provide valuable information for efficiency and business performance each incredibly priceless to a leading CFO
Finesse is an ERP provider which is continually addressing the transformation of output which the ERP industry is offering the equally transitioning role of CFO
ldquoWe provide end-to-end business management solutions to SMEs and Enterprises Our approach to ERP is much more than providing simply an operational management systemrdquo said Finesse COO Sunil Paul
ldquoWe believe that todayrsquos businesses need much more than integrating sales with inventory accounting and manufacturing but also to have seamless integration with all their sales channels including the point of sales ecommerce and inbound sales solutionsrdquo
A major im-petus of the ERP-cen-tered growth is based on how effec-tive com-prehensive real-time data proves to be for the CFO
40 wwwthecfomecom
before thereby creating new global benchmarks for overall economic growth
Microsoft Arabia CFO Sadrul Khan offered insight into just how far the knowledge economy has influenced regional financial leadership by explaining how one of the most prioritised technologies by CFOs in the region is social platform monitoring
ldquoOne of the five technology choices that CFOs tend to prioritise in boosting productivity efficiencies and faster decision making in the fast paced business environment which include a social platform that monitors trends customer sentiments and helps process mashable data for customer centricity and business growthrdquo said Khan
A major impetus of the ERP-centered growth is based on how effective comprehensive real-time data proves to be for the CFO Whether employed as on-premise ERP software-as-a-service or cloud-based solutions a nearly identical ethos is being utilised Allowing the CFO to quickly access the performance of all facets of a business is paying dividends in the boardroom a reality which is showing itself increasingly in the Middle East
The technologically-charged relationship between ERP solutions and the regionrsquos CFOs is expanding and as a result has catalysed what many see as GCC economic performance outstripping that of many economies outside of the region as a result
In order to compete in todayrsquos fiercely competitive environment organisations need to think both innovatively and out of the box They require more insights about their business and their customers and need to ensure that they are able to meet the expectations of their internal as well as external stakeholders Enormous amounts of data both structured and unstructured is continuously being generated within the internal and external systems of the organisation which if analysed can be of immense value both to the business and subsequently the stakeholders associated with the organisation
With the the era of CFOs labouring over spreadsheets now in the past given how many business frontiers have become so dependent on mobile options such as the cloud more and more tech companies are providing the regionrsquos CFOs with information technology that converts traditional internal and external data into rich visual insights This information is then used for faster decision making and provides the ability for a CFO to assess manage and control risks Regional CFOs have grown enabled to drive corporate strategy accordingly demonstrating how the knowledge economy is now in full force amongst the Gulfrsquos corporates
Given that advanced IT has now become a regular CFO tool the regionrsquos CFOs are subsequently making faster decisions and driving internal growth models with greater speed and agility than ever
Tech companies are providing the regionrsquos CFOs with information technology that converts traditional internal and external data into rich visual insights
ERPANALyTICS
Donrsquot discoveritrsquos counterfeittoner afteritrsquos too lateOriginal HP Toner works first time every time1 unlike cheap toners which fail over half of the people who try it2 Non-HP toner can compromise your printerrsquos performance to give you streaked blotchy or faded prints Only original HP Toner cartridges deliver unmatched quality for the most professional-looking prints 100 of the time1
1 A QualityLogic 2010 study commissioned by HP comparing original HP LaserJet Monochrome print cartridges with nine brands of non-HP toner cartridges available in Europe Middle East and Africa for the HP LaserJet P1505 and P4015 printers HP 36A and 64A For details see wwwqualitylogiccomEMEAmonotonertestpdf 2 From a 2012 EMEA Lyra Research study commissioned by HP Results based on a total of 1050 HP Color LaserJet users who have used both original HP and non-HP toner cartridges of whom 552 experienced problems with non-HP cartridges
copy 2014 Hewlett-Packard Development Company LP
42
Private Equity ANALyTICS
wwwthecfomecom
The rise of PE-backed acquisitions is forcing CFOs to develop an entirely new set of skills
THE PRIvATE EQUITy CFO
The CFOrsquos utility in the world of private equity is without question on the rise The once-held belief of the CFO existing solely as the ldquoaccounting guyrdquo has been abandoned Over the last 20 years the role of CFO has become more demanding - requiring not just finance and accounting acumen but also a financial literacy in corporate planning risk management MampA assetliability management and regulation This evolution has been driven by a number of
key factors Yet the private equity industry which is now reshaping the corporate landscape through active ownership is by far the most significant factor driving change within the role of the CFO
PE-backed buyers today represent a larger percentage of overall buyers in the corporate acquisition marketplace than ever before Data provider Prequin estimates that as of June 2014 the capital raised by PE funds that
has not yet been deployed amounts to $114 trillion globally The result of this ldquodry powderrdquo is that a vast quantity of corporate acquisitions in the coming years will be undertaken by the private equity industry As such CFOs will be more accountable to demanding ldquosmart moneyrdquo shareholders than at any point in recent history Budgeting accounting and financial reporting will no longer exist as sole priorities but as a core competency among a
ldquoBy effec-tively using real-time data CFOs can create a dynamic process that proac-tively drives performance account-ability and value crea-tionrdquo
By Aaron Heidari
43
Private Equity ANALyTICS
wwwthecfomecom
robust set of complimentary and required skills Most of all the bar for CFOs is rising as PE investors will only accept above-average performance from their management teams
CFOs were once more reactive in function setting budgets based on other executivesrsquo plans and managing the flow of reporting to shareholders on a quarterly and yearly basis Today CFOs are required to become proactive managers of their respective businesses alongside their C-suite compatriots using a granular data-driven approach to aggregate analyse implement and report on every aspect of a companyrsquos operations
An important tool to drive this value creation process are KPIs Yet KPI structures including both aggregation and output are generally not up to the standards required of private equity investors prior to an investment being made
ldquoThe benefits of using KPIs and monthly reporting packages are significant By effectively using real-time data that is actionable and by partnering with functional area leaders within the organisation company CFOs can create a dynamic process that proactively drives performance accountability and value creationrdquo said Amanda Robinson Vice President of Accordion International in Dubai a consulting firm which is comprised of former private equity and investment banking professionals who
MENA region Cumulative Funds Under Management Since 2008
Source Zawya private Equity Monitor
19 636 20 36321 586
22 64323 506 24 250
-
5000
10000
15000
20000
25000
2008 2009 2010 2011 2012 2013
Cu
mu
lati
ve f
un
ds
($ m
)
$15mAverage MENA PE investment size in lsquo13
50Percentage of investment in IT and energy sectors
STAT FACTS
44 wwwthecfomecom
work with companies to deliver cost-effective project execution services
Active shareholders whose money it is being spent will typically require a data-driven justification before approving any budgets capital expenditures or new acquisitions Furthermore in many private equity backed companies the use of debt and the matching of shorter-term bank financing with longer-term investments will only be considered after a robust analysis is conducted to understand the companyrsquos ability to service that debt in the future This evaluation is not simply to identify revenues expenses and profits Itrsquos about drilling down into every transaction and rooting out data processing and reporting At least that is the expectation
The most valuable CFOs are those who have the ability not just to scrutinise and understand the financials but all also possess a wider grasp of the underlying data which truly comprise the business As an investor who has just acquired a stake in a new business I want a CFO who can manage the transition and stay ahead of my expectations Most of all a CFO should impress upon the companyrsquos shareholders a new way of doing business The first 100 days of an acquisition are said to be the most important During this period the CFOrsquos worth will be established when the new financial plan is due and the platform for the next five years of growth is presented
A CFO should man-age the tran-sition stay ahead of expectations and impress upon the companyrsquos shareholders a new way of doing business
Investment Volume By Sector Since 2006
Investment Volume By Sector in 2013
Source Zawya private Equity Monitor
1
3
30
17
3
28
3
4
6
4
6
5
17
9
9
6
9
5
8
6
6
2
3
10
Education
Education
Information Technology
Information Technology
Other
Other
Telecoms
Telecoms
Media
Media
Transport
Transport
Oil amp Gas
Oil amp Gas
Healthcare
Healthcare
Consumer goods
Consumer goods
Food amp Beverages
Food amp Beverages
Leisure
Leisure
Manufacturing
Manufacturing
ANALyTICS
Private Equity
2000857 NBAD ratibi mag ad 200x268 Finalindd 1 92514 1017 AM
46 wwwthecfomecom
THE FUTURE OFACCOUNTING EDUCATIONAddRESSINg THECOMpETENCY CRISIS
Have you ever stopped to think about how the accounting profession has changed since you graduated from college Recent graduates can answer this question by reflecting on the last two or three years whereas for other more seasoned professionals answering this question requires a bit more thought and memory searching Indeed we can all think of ways that the field of accounting is remarkably different today from the one we likely envisioned during our college daysmdashregardless of which decade we each donned our cap and gown This gradual transformation of the accounting profession leads to two important questions related to competencies bull Which competencies are important for success inaccounting todaybull Were these competencies consciously developed as partof your accounting degree programme
We suspect that more than a few of you would answer ldquonordquo to the second question Put another way our profession may be facingmdashmore so than at any time in the pastmdasha ldquocompetency crisisrdquo that is a gap between the competencies needed for professional success and those taught in our college classrooms today We propose a three-pronged strategy or ldquogame planrdquo for overcoming this competency crisis and in turn better preparing accounting graduates for the challenging world they will face First all of us accountants need to understand the changes that have already taken place in our profession and perhaps more importantly anticipate the changes that are on the horizon Second we need to educate ourselves and future generations of accountants so that as a collective group we can deliver the expanding set of competencies demanded in todayrsquos dynamic organisational
contexts Third as professional organisations and as individuals we need to think beyond ourselves by asking How can I (or we) help the accounting profession address the competency crisis
A Shift Toward Integrated ThinkingMany articles and white papers have been written that describe in detail the changes that have occurred in our profession over the last few decades but for our purposes wersquod like to distill these changes down to one crucial idea How does the accounting function add value to an organisation Accountants have evolved from support-oriented personnel who hand off information to others who actually make decisions into business partners who ldquohave a seat at the tablerdquo with managers
By peter C Brewer James E Sorensen CpA CgMA and david E Stout
47wwwthecfomecom
1048576bull What regulatory risks mayaccompany the proposal
1048576bull What social and environmentalfactors will we face if for example the proposal requires investing in overseas operations
1048576bull What types of employeeresistance may arise if we implement the proposal and how will we overcome the root causes of any such resistance
1048576bull Can and how should we valuefuture options associated with the proposal such as expanding or contracting the investment over time as new information becomes available
1048576bull Should we use debt or equity tofund the proposal
In short accountants have evolved to become integrated thinkers who enable EPM by partnering with managers across the organisation to add value Yet as EPM has gradually become the centrepiece of our professionrsquos value proposition accounting education hasnrsquot done enough to embrace it To overcome this gap wersquod like to further suggest that the concepts of competency integration and EPM need to come ldquofront and centrerdquo as we move forward in educating the next generation of successful accounting practitioners
Accounting Education No Longer on the SidelinesRecently a task force consisting of members of IMAreg (Institute of Management Accountants) and members of the Management Accounting Section (MAS) of the American Accounting Association (AAA) addressed the competency issue How should accounting education change fundamentally to help close the competencies gap The efforts of the task force led to
cash flows and how to apply discounted cash flow (DCF) decision models such as net present value (NPV) is of foundationalmdashsome might say critical mdash importance But integrated thinkers draw on an understanding of organisational strategy coupled with a broader set of competencies (beyond what might be considered technical or foundational knowledge) when making these types of decisions For example they consider how behavioural issues may influence the capital investment decision-making process Perhaps the financial estimates contained in the NPV analysis are too optimistic because the manager who prepared the numbers has a vested interest in seeing the project approved Decision makers also need to consider issues such as leasing vs buying a capital asset and the corresponding impacts on the financial statements and ratios that are tracked by investors and lenders What nonfinancial factors are associated with the proposed investment Add in the tax consequences of capital investment decisions coupled with the need to maintain internal control over any new business processes tied to these decisions and the need to think in an integrated fashion across a variety of accounting competencies becomes apparent
Furthermore becoming a true business partner with managers across the organisation requires more than simply integrating various accounting competencies It also means thinking like a business manager or a chief executive officer (CEO) Returning to the capital budgeting example an integrated thinker will ask questions such as
across the organisation Together they formulate and plan strategies then participate in collaborative decision-making processes that execute those strategies in a manner that adds stakeholder value Said another way accountants have evolved to become enterprise performance managers This shift in our orientation from a support function to an enterprise performance management (EPM) role has enormous implications for defining the determinants of success within our profession the most important of which involves becoming collaborators and ldquointegrated thinkersrdquo Take for example a common but important business decision process capital investment analysis Certainly technical knowledge regarding how to estimate relevant after-tax
48 wwwthecfomecom
expanding capital budgeting discussions to include financial statement impacts tax consequences and internal control issues integrates topical coverage across the External Reporting and Analysis Taxation Compliance and Planning and Assurance and Internal Control competencies shown in Figure 1
Third accounting curricula can incorporate a broader set of management competencies For example evaluating capital investment proposals from the perspectives of change management (Leadership) social and environmental issues (Ethics and Social Responsibility) regulatory concerns (Governance Risk and Compliance) and capital structure (Additional Core Business Competencies) brings a CEOrsquos perspective to the decision-making process
Fourth accounting curricula should include foundational competencies such as proficiency with spreadsheets and written and oral communication In the context of capital budgeting this may include asking students to use Microsoft Excel to perform a sensitivity analysis and then to present their findings to the entire class
Working to Fix the ProblemAt this point although you may agree with us that therersquos a competency crisis within the accounting profession you may be wondering What does this have to do with me What can my organisation do to help address this so-called competency crisis The answer a lot Practice partners and academic partners can help the accounting profession overcome the competency crisis That said letrsquos take a closer look at the role of practice partners first
improvement) and accounting competencies (external reporting and analysis planning analysis and control taxation compliance and planning information systems assurance and internal control and professional values ethics and attitudes) Of critical importance to the framework is the assumption that the set of competencies contained in Figure 1 would be developed and integrated over time through a blend of formal education (including continuing education) training and job experience
What levels of integrationmdashon the road to developing integrated thinkers in accountingmdashare possible First accounting educators can integrate within a single accounting competency So referring back to our capital budgeting discussion teaching computational models such as NPV analysis coupled with a review of various behavioural issues associated with capital investment decisions would be an example of integrating within the Planning Analysis and Control competency listed in Figure 1
Second professors can integrate across accounting competencies For example
a recently published article that contains a proposed framework for accounting education reproduced here as Figure 1 The framework is general in the sense that itrsquos meant to apply to all accounting students not subgroups based on career specialisation such as tax assurance services corporate finance and the like Itrsquos based on the idea that accounting educators can better prepare students to deliver our professionrsquos EPM value proposition through integrated competency-oriented curricula (For more see ldquoFocusing Accounting Curricula on Studentsrsquo Long-Run Careers Recommendations for an Integrated Competency-Based Framework for Accounting Educationrdquo in the May 2014 edition of Issues in Accounting Education)
A glance at Figure 1 reveals three levels of competencies foundational competencies (communication ability to leverage technology and analytical thinking and problem solving among others) broad management competencies (including leadership ethics and social responsibility and process management and
Proposed Competencies-based Framework for Accounting Education
FOUNDATIONALCOMPETENCIES
ACCOUNTING COMPETENCIES
BROAD MANAGEMENT COMPETENCIES
leadership
ExternalReportingamp Analysis
PlanningAnalysis
amp Control
TaxationComplianceamp Planning
InformationSystems
Assuranceamp InternalControl
ProfessionalValues Ethics
amp Attitudes
Communication
Quantitative
Interpersonal
Technological
Analytical Thinking ampProblem Solving
Ethics amp SocialResponsibility
ProcessManagement ampImprovement
GovernanceRisk amp
Compliance
AdditionalCore BusinessCompetencies
Although you may agree with us that therersquos a competency crisis within the account-ing profes-sion you may bewondering What does this haveto do with me
A practice partner should be or become a CMAreg (Certified Management Accountant) maintain professional certification by completing required Continuing Professional Education (CPE) hours and regularly read the IMA publications Strategic Finance and Management Accounting Quarterly
In addition there are a number of excellent resources that deal with topics covered in this article and that IMA makes available to its members
Strategic Finance PowerPacks(wwwimanetorg SFPowerPacks) These are resources focused on contemporary topics similar to those discussed earlier Current offerings include Risk Management Strategic Planning IT Skills amp Software and Internal Controls Each PowerPack includes a combination of resources such as research studies articles and links to webinars
Statements on Management Accounting (SMAs)(wwwimanetorgresources and_publicationsresearch_ studies_resourcesstatements on_management_accounting aspx) SMAs represent monographs classified into one of the following six categories Leadership Strategies and Ethics Technology Enablement Strategic Cost Management Business Performance Management Finance Governance Risk and Compliance and the Practice of Management Accounting Multiple items are available within each category For example the Practice of Management Accounting category includes (among other items)
49wwwthecfomecom
the Definition of Management Accounting and Implementing Shared Service Centres
Research Studies (wwwimanetorgresources_and_publicationsResearch_Studies_and_ResourcesAll_reportsaspx) The ldquoThoughtLeadershiprdquo section of IMArsquos website includes research covering a broad range of issues classified into seven categories For example under the ldquoGlobal Business Environmentrdquo category the following two research reports are available ldquoKey Differences Between IFRS and US GAAP Impact on Financial Reportingrdquo and ldquoCosting Methodologies and Cost Management Practices in the Peoplersquos Republic of Chinardquo
IMA Leadership Academy (www imanetorgprograms_events leadership_academyaspx) As described on the IMA website this programme is designed to assess a memberrsquos leadership status enhance that individualrsquos skills (principally through monthly webinars) and recognise leadership achievements These benefits are free to members
How You Can Make a Bigger Impact In addition to attending local regional and national IMA meetings consider inviting a small group of students to each chapter meeting This could be a wonderful (and relatively low-cost) option for mentoring aspiring accountants and finance professionals providing networking opportunities and introducing students to cutting-edge issues regarding the practice of management accounting Joining a university accounting
advisory group may be another way to influence the development of EPM in that institutionrsquos curriculum design
Other methods to enhance EPM in your organisation include (1) forming user groups within your company your local IMA chapter or your industry to review and share EPM experiences (2) encouraging advancement in the firm to be linked to EPM proficiency (3) focusing your companyrsquos recruiting efforts on candidates who display a background in andor understanding of EPM and (4) organising cross training within your company to enhance a mutual understanding of each otherrsquos respective roles
Finally visit the Competency CrisisTM website (http competencycrisisorg) set up by IMA to unite the accounting and finance constituencies professionals students employers academics and professorsmdashand explore competency issues through the lens of each stakeholder group The site is designed to ldquoencourage a discourse spur action and create a community dedicated to resolving the serious crisis of competency present in the professionrdquo Special sections of the website are devoted to educators students and employers professionals
Our Partners in Education Much like a practice partner an academic partner should be or become a CMA maintain professional accreditation by completing CPE hours and regularly read IMArsquos publications
Academic members of IMA can pursue and actively promote the CMA programme at their respective institutions
50 wwwthecfomecom
IMArsquos website contains helpful resources including an exam content overview content specification outlines for each of the two parts of the CMA exam and learning outcome statements The current exam covers some of the professional competencies represented in Figure 1 A summary of changes to exam content which will be effective in January 2015 is provided on the IMA website in News amp Media Relations which is located under ldquoAbout IMArdquo (See the press release dated March 24 2014) Other helpful resources include ldquoICMA Announces CMA Exam Content Changesrdquo in the April 2014 issue of Strategic Finance as well as ldquoManagement Accounting Career Readiness Shaping YOUR Curriculumrdquo
These forthcoming changes are based on the most recent IMA study of the knowledge and skills needed by management accountants from the view of CFOs controllers and other accountingfinance professionals from around the world
Also consider taking a group of your students to the IMA Student Leadership Conference held each November The Conference provides excellent networking opportunities for you your students and practicing professionals Students can learn firsthand from Conference presenters the challenges and opportunities facing finance and accounting professionals today
Moreover if your institution doesnrsquot currently have an IMA Student Chapter consider forming one One of the authors of this article David Stout reinstituted the student chapter at his school (Youngstown State University) after travelling with a group of his students to the IMA
Student Leadership Conference in Cleveland Ohio Through an IMA Student Chapter on campus students are able to work closely with a sponsoring local IMA chapter and bring to campus speakers who are experts in a wide range of topics including those discussed earlier in this article Each year student chapters compete for an Award of Excellence (AOE) and recognition as an Outstanding Student Chapter In addition IMA student members are able to engage in networking activities leadership training mentoring and community service programmesmdashall through their local chapter
You also might consider volunteering to serve as a Campus Advocate In this role yoursquoll represent IMA in all major matters of interest to your students (scholarship opportunities starting a student chapter mentoring and the like) and to your institution (for example leveraging IMA resources to advance the relevancy of the accounting curriculum use of educational case studies published in the IMA Educational Case Journal and access to IMArsquos ethics curriculum)
And if you havenrsquot yet done this ask IMA to endorse your accounting programme (information is available at www imanetorgeducator_resources indexaspx) This programme is designed to identify business curricula that meet the quality educational standards required to prepare students to earn the CMA designation Endorsement is based on an analysis of the curriculum and topics covered on the two-part CMA exam Currently 12 programmes have been endorsed
Finally if your school has an IMA Student Chapter consider participating in the annual IMA Student Case Competition where students are asked to propose a solution to a real world problem (Cases are solicited each year by Raef Lawson IMA VP of Research and Policy and IMA Professor in-Residence) Finalists make their presentations at IMArsquos Annual Conference amp Exposition before a set of judges consisting of accounting faculty members and practitioners Each year a new case is published in the August issue of Strategic Finance for students to use for that yearrsquos competition
Working TogetherIn this article we have summarised the changes that have affected the accounting profession and provided a competencies-based framework for guiding accounting educators in responding productively to those changes As a management accountant you know that implementing change in any organisation let alone within an entire profession never comes easily To be successful in overcoming our professionrsquos competency crisis IMArsquos practice and academic partners will need to assume leadership roles in defining enterprise performance management as the cornerstone of the accounting professionrsquos value proposition
This article was orginally published in the August 2014 issue of Strategic Finance It appears here with the permission of The Association of Accountants and financial professionals in Business
We need to educate ourselvesand future generations of account-ants so that as a collec-tive group we can deliver theexpanding set of com-petenciesdemanded in todayrsquos dynamicorgani-sational contexts
THE POWERFUL AND THRIFTY OFFICE ALL-ROUNDERS
The new ECOSYS M3560idn series will astound you With their print speeds of up to 60 pages per minute they are among the most productive A4 bw multifunctionals on the market We nevertheless managed to keep their ecological footprint and total cost of ownership impressively low by using our well-known ECOSYS technology and equipping the devices with our renowned long-life components The result Not only less waste and lower maintenance costs but also less hassle for you and all your colleagues You will also greatly appreciate the many customisation possibilities of the devices equipped with KYOCERArsquos open solution platform HyPAStrade as it allows you to tailor the device to your needs So yes we are proud of our new range of MFPs and can hardly wait to share their numerous benefits with you
For more information please contactKYOCERA Document Solutions Middle East | PB Box 500817 DubaiUAE | Tel +9714 4330 412 | Fax +9714 4231 944KYOCERA Document Solutions Europe BV - wwwkyoceradocumentsolutionseuKYOCERA Document Solutions Inc - wwwkyoceradocumentsolutionscom
52
ACCAINTERVIEW
wwwthecfomecom
GLOBAL By ASSOCIATION
across the region from our key employers and learning provider partners to our active and growing student and member base I want to understand their challenges and priorities and how ACCA can work with them to help support the economic success of the region
What can a CFO gain from working with ACCAThe ACCA qualification is about complete finance professionals For CFOs it brings the technical knowledge vital to business success complemented with the strategic management skills and ethical competence crucial to an organisationrsquos success As an organization ACCA in the UAE brings CFOs access to that local and global network of peers and expertise along with our leading research and insights that help them to keep up to date on the issues that matter most
Are there any initiatives in place to leverage the recently announced partnership with AAA
How are the ACCArsquos many years of activity being applied to the Middle EastACCA has now had a presence in the UAE for well over a decade During that time we have established strong relationships across the Middle East epitomised by the recent signing of our Strategic Partnership with AAA As a national body in choosing to partner with ACCA they recognised the local and global perspective we bring We are continuing to work with students members and employers across the Middle East to build their networks knowledge and business success through events research and insights and access to a growing number of online resources
Which initial priorities are among your key aims upon joining the organisationrsquos efforts in the UAEIn the first few months I hope to build on the success of the team in the UAE My priority will be to meet as many of our key stakeholders
The Association for Chartered Certified Accountants (ACCA) provides its services across a number of international borders The recent announcement of Lindsay Degouve de Nuncques as the new head of the Associationrsquos UAE chapter further exemplifies the ACCArsquos reach based on her previous work in the UK Nuncques shares here what she brings to the Middle East and just how globalisation has driven her ascent
53
ACCAINTERVIEW
wwwthecfomecom
The strategic partnership with AAA is the first of its kind in the region Students who complete the UAECA qualification will be entitled to both the AAA and ACCA designations and ACCA members in the UAE will also be eligible to apply for AAA membership This is a very exciting development in the market and together AAA and ACCA will be working to deliver maximum value to all our stakeholders from this partnership As we launch the UAECA qualification this activity will start in earnest
Which key industries will you be spotlighting in the Middle East in the months aheadOur experience of working across all sectors and levels of organisations globally gives ACCA a unique insight into all types of industries We will continue to be working with employers across the spectrum in the months ahead to help them gain the insight and make the connections that drive businesses to succeed at whatever they do
ldquoThe ACCA qualification is about complete finance professionals For CFOs it brings the technical knowledge vital to business success complemented with the strategic management skillsrdquo
54
Islamic FinanceMARKET OUTLOOK
wwwthecfomecom
In its 10th instalment the Forum is hosted in Dubai as a direct result of the UAErsquos increasing importance in the world of global Islamic finance
THE WORLD ISLAmIC ECONOmIC FORUm LANDS IN DUBAI
In Dubairsquos continued quest for leading the world across a range of spectrums the Emirate accelerated its desire to become the worldrsquos leading hub for Islamic finance by hosting the 10th installment of the World Islamic Economic Forum (WIEF) Delegates from dozens of countries attended to take part in a three-day event held at Madinat Jumeirah which rests alongside Dubairsquos gleaming coastline Held under the patronage of His Highness Sheikh Mohammed Bin Rashid Al Maktoum the
Vice President and Prime Minister of the UAE and Ruler of Dubai key speakers included The Honorary Dr Zeti Akhtar Aziz Governor of the Central Bank of Malaysia HE Kairat Kelimbetov Governor of the National Bank of Kazakhstan The Honorary Datorsquo Sri Mohd Najib Tun Abdul Razal Prime Minister of Malaysia and HE Xavier Bettel Prime Minister of the Grand Duchy of Luxembourg
Launched in 2006 in Malaysia WIEF has grown in tandem with the increased
Delegates from dozens of countries attended WIEF to take part in the three-day event
sophistication and reach of Islamic finance After a successful event in London in 2013 amidst increased interest in Islamic finance across Europe WIEF relocated to Dubai where the local business structure is keen to host halal finance
Said Hamad Buamim President and CEO Dubai Chamber of Commerce and Industry co-organisers of the event ldquo[The forum] is the start of a new chapter of cooperation between Dubai and the world as part of
55
Islamic FinanceMARKET OUTLOOK
wwwthecfomecom
Dubai Capital of Islamic Economy visionhellipestablishing a unified regulatory authority to provide the framework for standards across halal industries will significantly accelerate growth Likewise we need to see increased cooperation and partnership between the public and private sectors This is already happening with great success here in Dubairdquo
The order of global cooperation needed to facilitate growth across the Islamic finance world was more than apparent at WIEF based on how many differing nations were represented at the event The exhibitorrsquos hall was populated with a number of key Malaysian stands representative of the Southeast Asianrsquos ranking as the global leader in Islamic finance Also present were companies from Saudi Arabia also a key locality in the worldrsquos halal industries An interesting yet prescient presence was of attendees from South Korea a nation which is eager to participate in Islamic finance and will be hosting the WIEF Pyeongchang Roundtable in December 2014
ldquoGangwon is a province located in Korea which is very interested in new business opportunities Wersquove realised the strength of the Islamic economy and have come here with many different companies The first type is based in real estate investment We also have companies which want to export their products to the Islamic economy based on their halal qualities And Gangwon will also be hosting the Winter
ldquoKorea is very interested in the strength of the Islamic economy and wants to export its products based on their halal qualitiesrdquo
56 wwwthecfomecom
$247trillionProjected value of halal products industry in lsquo18
125Muslim percentage of global tourism expenditure
STAT FACTSOlympics in 2018 and are presently seeking investments for this as wellrdquo said Seong-hun Kim a member of Gangwon Province Governmentrsquos Export Support Team
Dubai proved to be an excellent place for the event considering how well the UAE is able to so regularly corral international cooperation A key sign of this was witnessed recently when Luxembourg now considered the third most important base for Islamic finance globally opened a finance office in Dubai International Finance Centre The European nation also opened a euro200 sukuk earlier this year which was quickly oversubscribed
The prime minister of Luxembourg offered the WIEF audience a riveting speech which detailed just how international the Forum has become whilst encouraging more of the world to support the growing influence of Islamic finance
Said Bettel ldquoWe need to innovate more economic partnerships for growth We sometimes need to reengineer relationships but also have to make sure these relationships remain sustainable Growth in one country also brings growth to others as long as this is guided by free market initiatives Free trade and free flow of capital combined with innovation leads to prosperity We have all gathered here in Dubai to explore the future of Islamic finance and Luxembourg is also a pioneer of Islamic finance in Europe The Islamic financial sector has a major role to play in continued global growthrdquo
The Islamic Corporation for the Development of the Private Sector (ICD) is based in the Kingdom of Saudi Arabia where it manages an international fund worth $2 billion half of which is available for subscription With shareholders in more than 50 countries and a sovereign sukuk fund recently launched in West Africa the ICDrsquos CEO Khaled M Al Aboodi attended WIEF this year excited to participate in the global event
How does the ICD approach its attendance at the World Islamic Economic ForumI think the Forum is one of the best places for discussing the financial issues of the OEC member countries It has been around for ten years and has grown to become a very important platform for discussion Wersquore here to attend and listen but also to network Itrsquos a great networking platform and a place to share views whilst letting everyone know what we have to offer
How has Islamic finance changed over the yearsOf course itrsquos growing in a large scale Some of it actually needs more support particularly with respect to regulatory frameworks Wersquore trying to partner with many international organisations like the IMF to try to provide support to countries to adapt regulation for Islamic finance Sukuk issuance is one of the biggest issues that needs to be addressed because there is a huge amount of liquidity in this arena Due to issues related to regulation sukuk issuance can be costly But with the regulation we are confident it will be on a level playing field with other forms of finance Compliance is a major area where more work can be done The Forum started with a roundtable on sukuk which shows how helpful WIEF has been over the years
What type of work does ICD do internationallyICD helped the government of Senegal to issue the first sovereign sukuk This was successfully issued last summer Progressing in this manner is something wersquod like to see continue across West Africa in order to utilise its resources with aiding development in the region in mind
QampA WITH KHALED M AL ABOODI CEO OF ICD
Islamic FinanceMARKET OUTLOOK
OFFICIAL SPONSORS
ENDORSED BY OFFICIAL HOST OFFICIAL
COMMUNICATIONS PARTNER
MEYDAN HOTEL DUBAI UAE19 - 20 NOVEMBER 2014
WOMENOMICSthe next emerging market
TAKE PART in making change happen UNITE with business and through leaders from across the globe
PARTICIPATE to the expansion of a modern and inclusive economy
58
Gautam PradhanINTERVIEW
wwwthecfomecom
SUCCESS BEyOND BOUNDARIES
in other management roles such as strategic decision making mentoring and leading efficiency and productivity across a range of other departments and functions as well as a being a catalyst in ensuring that the boardrsquos vision for the organisation is achieved
A significant percentage of NMDCrsquos shares are owned publicly Does the CFO play a role in balancing the interests of the shareholdersAs a CFO balancing the shareholdersrsquo interests is definitely part of my responsibility In order to achieve this goal there needs to be a careful evaluation of each decision while keeping the short-term and long-term goals of the company in mind At NMDC we actively implement a system where we utilise a balance scorecard as a method of ensuring that all our primary objectives are met yet at the same time continuously enhance our relationships with our shareholders
NMDC has completed various projects across the Emirates Are there plans to move abroadAs NMDC moves towards becoming an international player our strategic expansion plans are focused in areas within the GCC region and India In line with this strategy we opened
How has a company with such a unique set of deliverables grown so consistently over the yearsOur organisation strongly believes that the core to our strength is the people process and equipment A strategic decision led by our Board of Directors and the senior management has been implemented that required us to consistently invest in these three aspects to help expand our business beyond the territorial boundaries of the UAE and at the same time enhance what we can offer which is relevant to these segments We attribute our success to the efforts which every employee contributes We also strongly believe in the ldquoWe can make it happenrdquo principle The management raises the index of performance while setting SMART objectives within the organisation and encouraging the employees to achieve them
How has your position as the CFO changed over NMDCrsquos 35 years of operationAs the market evolves and business dynamics change my role as the CFO has become complex and more challenging A few years back I was mainly focused on bookkeeping accounting and other financial responsibilities such as arranging bank facilities But moving forward I became more involved
The UAE is progressively becoming a hub for world-class infrastructure The country has duly impressed the rest of the globe with noteworthy land developments showcased across the emirates Among the remarkable landscapes found in Abu Dhabi are the Corniche Beach Yas Island and Sir Baniyas Island Behind these successful projects is NMDC the dredging division of Abu Dhabi National Oil Company (ADNOC)
In an interview with CFO Magazine Gautam Pradhan Chief Financial Officer NMDC shares an exclusive look into the companyrsquos international blueprint for growth and his dynamic role as a strategic leader of one of the best in dredging and marine construction in the Middle East
59
Gautam PradhanINTERVIEW
wwwthecfomecom
branches in Qatar Bahrain Oman and India This has paid rich dividends recently as projects of strategic importance are bagged in Qatar and Bahrain Furthermore NMDC (UAE) has recently played a key role as a leader of an international consortium with Royal Boskalis Westminister (Netherlands) and Jan De Nul Group (Belgium) for the awarding of the Suez Canal Dredging project in Egypt Moving forward we have devised a strategic approach that will enable us to play a key role in the development of Indiarsquos marine infrastructure
What are the global strategies that are part of the CFOrsquos responsibilitiesAs CFO understanding the macro economic scenario risk analysis and mitigating those risks are all a part of my responsibilities I also have to have a proper comprehension
ldquoA few years back I was mainly focused on financial responsibilities moving forward I became more involved in strategic decision making mentoring and leading productivityrdquo
Gautam PradhanINTERVIEW
60 wwwthecfomecom
of the challenges faced by the company in terms of dealing with foreign contracts direct and indirect taxes and hedging and managing the integration process These are essential to enhance shareholders wealth and mitigate undue risk
How significant is accountancy for NMDC in its operations Why exactlyAccountancy is the lifeline of any company it does not only record the finances it also reflects the health of the organisation The MIS reports analysis trends and statistical information go a long way toward effectively providing
the diagnostic approach essential for the company
How have NMDCrsquos environmental activities helped the companyrsquos bottom lineNMDCrsquos work is well-synchronised with our environmental activities and specifically with nature Our activities are closely linked to sand and water and we view such activities with strategic importance Projects such as increasing water supply to mangroves and beach nourishment help us support the environmental activities while adding to our bottom line
ldquoAccountancy is the lifeline of any company it does not only record the finances it also reflects the health of the organisationrdquo
A burgeoning slice of Abu Dhabi coastline
The largest business awards
in the GCC30th November Dubai
nominate now at wwwstarsofbusinessawardscom
Stars of Business has become an iconic awards brand like no other in the region It recognizes the very best SMEs across 26 business categories Itrsquos universally respected as scientifically assessed and unimpeachably judged
327000 SMEs across the UAE$234 billion estimated total revenue of the SME sector4974 Awards entries in 20131856 Individual company applicants
Presenting Partner Strategic SME Partner Gold Sponsor Gold Sponsor VIP Hospitality Partner Supporting Partner
Trade Facilitator PartnerTrade Credit PartnerLogistics Partner
Institutional Partner Institutional Partner Event Partner
OrganiserPublisherMedia Partner Media PartnerPort Authority Partner
62
David Allen INTERVIEW
wwwthecfomecom
What went into completing your bestseller ndash Getting Things Done (GTD)After twenty years of researching developing and implementing a methodology for achieving stress-free productivity based upon
thousands of hours spent desk-side with
some of the best brightest and busiest people in the world I decided to write the manual for it Thatrsquos what Getting Things Done is
What are the five phases of mastering workflowIn order to get
any situation under control so
you can focus you will utilise these five
steps Whether yoursquore managing your kitchen
or your company you will need to collect and capture what has your attention clarify what if anything to do about it organise it according to what it means to you review and reflect upon it in relation to
Todayrsquos evolving CFO is often caught between the world of business set-up generating revenue managing employees and building strong company infrastructure When can things actually get done What can one do to boost productivity and master workflow World-renowned business coach David Allen has the answers
PRODUCTIvITy PRINCIPLES WITH
DAvID ALLEN
63
David Allen INTERVIEW
wwwthecfomecom
those are greatly subvertedHow does one maintain a fair balance between the time spent planning and actually getting things doneYou simply need to spend just the amount of time you need to to trust that what you are getting done is the right thing to be getting done in the moment It takes as long as it takes to get to that point Why would you do anything less
How can one apply your core productivity and workflow principles to todayrsquos technologically driven environmentThe principles and their techniques are system-independent Whether you have meaningful input from the Internet your smartphone or a conversation in the hall you must engage with it equally Technology has simply increased the flow of input and ease of distraction in your world
There is a lot of talk about how connected wersquove become and how connectivity is driving tremendous business growth Does connectivity actually come with its fair share of downsides
Connectivity is obviously a two-edged sword We can have intimate productive and creative interaction instantly with someone on the other side of the world and we can just as easily be distracted and seduced into those engagements when they may not be the best use of our attention and resources Donrsquot shoot the medium Itrsquos all simply bringing attention to your clarity of direction and priorities or lack thereof
Could you share a few quick tips with our readers to instantly boost productivityWrite everything down that has your attention Decide the very next actions required to get closure on all of them Any next actions that require less than two minutes do instantly Park reminders of everything else somewhere that yoursquoll see when you can do something about them
We are currently facing a massive information overload What are some basic principles you could suggest to mentally organise such large amounts of dataConstantly ask yourself Where am I going Whatrsquos important and rewarding to me Is this information
the whole and then engage your resources with intuitive trust
As a CFO how can you transfer efficient workflow management skills to your employees Itrsquos very difficult to legislate processes for individuals ndash you can really only hold them accountable for their results But if you are managing your own commitments and intersections with them with integrity and rigour it will automatically force your team to ldquostep up to the platerdquo in their own behaviours in order to meet your standards If you request their complete list of their company projects and they canrsquot produce it thatrsquos a sign theyrsquore not in control If they make a commitment to you that they havenrsquot kept thatrsquos data about their performance GTD is simply about good operational business practices
With so many planning and organising activities in your methodology is there a risk of losing spontaneity as a strategistThe reason for these best practices is to optimise freedom creativity and spontaneity Without them
ldquoBut if you are manag-ing your own com-mitments and intersec-tions with them with integrity and rigour it will automatical-ly force them to ldquostep up to the platerdquo in their own behaviours in order to meet your standardsrdquo
64 wwwthecfomecom
supporting that Park whatever you find potentially meaningful somewhere that is easy to access when needed
Being an entrepreneur is a non-stop job How do you ensure that you have an adequate work-life balance Pay attention to what has your attentionmdashwith regard to anything Your health relationships career finances etc Notice when something might be ldquooffrdquo and make good decisions about what you need to do to get it back ldquoonrdquo again
Does your work teach people to be efficient or effective In essence they are the same thing Effective choices are generated by efficiency on a higher level If you want to implement strategy most effectively it demands utilising your resources optimally which is efficiency
Does motivation actually improve quality of work or purely quantityDepends on the focus of the motivation You can be motivated to work harder and you can be motivated to work smarter
What is your favourite productivity mantra that
you implement in your day-to-day lifeUsing my own in-basket and note-taking devices to capture potentially meaningful and valuable ideas and soon afterwards clearing all of them out by deciding what to do about them if anything
Your books seminars and other work inspires many individuals and businesses Who is your personal inspiration or role model I have many about many different aspects of my life The only person though that I ultimately trust as my best guide is my higher self which I try to access as frequently and clearly as I can
Finally what advice would you give to current business owners and aspiring entrepreneurs looking to gain complete control of their life and businessCapture what has your attention clarify what you need to do about it to get it off your mind organise the inventory of all your commitments at all levels review and reflect on all of that regularly relax and trust your inner wisdom to engage with the most appropriate thing in the moment
ldquoIf you want to implement strategy most effectively it demands utilising your resources optimallyrdquo
David Allen INTERVIEW
APPSTECH TALK
wwwthecfomecom 65
mAxImISE BUSINESS lsquoON-THE-GOrsquo WITH THESE HANDy APPS
ipAd SpECIAL
SAMSUNG UNvEILS GALAxY NOTE EDGE
Network
AP
Display
OS
Camera
Video
Audio
Additional Features
GoogleMobile Services
Connectivity
Sensor
Memory
Dimension
Battery
The availability of service may differ by country All functionality features specifications and other product information provided in this document including but not limited to the benefits design pricing components performance availability and capabilities of the product are subject to change without notice or obligation
Samsung Galaxy Note Edge Product Specifications
25G (GSM GPRS EDGE) 850 900 1800 1900 MHz3G (HSPA + 42Mbps) 850 900 1900 2100 MHz4G (LTE Cat 4 15050Mbps) or 4G(LTE Cat 6 30050Mbps)May differ by country and carrier
27 GHz Quad-Core Processor
56 inch (1419mm) Quad HD+ Super AMOLED (2560 x 1440 + 160)
Android 44 (KitKat)
Rear Facing 16 Mega pixel Auto Focus camera with Smart OISFront Facing 37 Mega pixel camera with f19Rear Facing Camera HDR (Rich tone) Selective Focus Rear-cam Selfie Beauty face Virtual Tour Shot ShotampMore Dual CameraFront Facing Camera Selfie Wide Selfie
Codec H264 MPEG-4 H263 VC-1 WMV7 WMV8 Sorenson Spark MP43 VP8 Recording amp Playback up to UHD
Codec MP3 AACAAC+eAAC+ WMA AMR-NBWB Vorbis FLAC()() Ultra High Quality Audio (~192KHz 24 bit) support
Multi WindowUltra Power Saving ModeVoice Recorder (Normal Mode Interview Mode Meeting Mode Voice Memo)Download BoosterS Health 35Dynamic Lock ScreenBriefingEdge screen UX Revolving Interaction Immersive apps(Camera Video S Note)Ticker board Express me Quick Tools Night Clock etc
Chrome Drive Photos Gmail Google Google+ Google Settings Hangouts Maps Play Books Play Games Play Newsstand Play Movie amp TV Play Music Play Store Voice Search YouTube
WiFi 80211 abgnac (HT80) MIMO PCIeGPS GLONASS BeidouNFC Bluetoothreg v 41 (BLE ANT+)IR LED (Remote Control) USB20 MHL 30
Gesture Accelerometer Geo-magnetic Gyroscope RGB IR-LEDProximity Barometer Hall Sensor Finger Scanner UV Heart Rate Monitoring SpO2 (Dependent on market)
32 64 GB Internal memory + microSD slot (up to 128GB)3GB RAM
1513 x 824 x 83mm 174g
Standard battery Li-ion 3000 mAh Fast Charging (Adaptive Fast Charging amp QC20)
wwwthecfomecom66
APPSTECH TALK
AIR DISPLAY
SQUARE REGISTER
Using this app you can connect your iPad to your computer and use it as an additional screen While working on an important presentation or sales proposal you can extend or mirror your computer screen on your iPad This app is compatible with both Mac and Windows computers Note that to use this feature you have to install Air Display on your iPad and a separate free app on your computer The computer and iPad also need to be on the same Wi-Fi network in order to work in-sync
For Mac users the app allows you to connect to up to four screens ndash all at the same time
Apart from the ability to convert your iPad into a wireless display whatrsquos also attractive about this app is that it allows you to control your computer wirelessly using your iPad
This fantastic application can serve as a mobile point of sale for your business It allows you to accept credit card payments ndash including Visa MasterCard Discover and American Express A transaction fee of 275 is charged for every time you swipe a card The sale amount is transferred to your account within two working days
Once you download the app you can sign up and register for a unique card reader solution called the lsquoSquare Readerrsquo (this is free) Square Reader encrypts all card details and ensures that the transaction is secure Once you receive your Square Reader you can connect it to your device and are all set
The application also offers added features such as transaction history connecting to a receipt printer creating employee logins and more
AED 3699
PRICE
Free
PRICE
wwwthecfomecom 67
APPSTECH TALK
DOCUSIGNHave you ever been in a situation where your employees need you to urgently sign a contract but arenrsquot able to physically reach you in time DocuSign solves this problem with its easy-to-use eSignature feature In three easy steps you can sign important documents and securely send them to your intended recipient
First you have to import the document to your device ndash this could be from Dropbox Google Drive or another select applications You then place your signature or any other important legal information you need to include such as initials Once you have finished working on the document send it back via e-mail
Whatrsquos particularly great about DocuSign is the great emphasis it puts on security ndash so that users donrsquot have to worry about getting into any legal trouble
Use DocuSign and never miss a deadline again
Free for basic version
PRICE
MPAYAn initiative by the Dubai eGovernment Department mPay is a simple application that allows you to make important payments Once yoursquove signed up and entered your payment details you are good to go You can pay your Dubai Electricity and Water Authority (DEWA) bills Etisalat utility bills Dubai Police fines Recharge SALIK and much more
A handy feature is its lsquoauto-rechargersquo option which you can use to set automatic payments
Free
PRICE
Opinion CIMAPERSONALITIES
wwwthecfomecom68
NEW HORIZONSBy geetu Ahuja Head of gCC at CIMA
The days of the traditional accountant working within a small community in a small town in a small market have long gone CFOs are now being referred to as Chief Frontier Officers as they travel from market to market overseeing their offices overseas This new expanded role has distinct advantages for both the company and the CFO who gain new skills and new insights from foreign branches a single hand at the helm of many markets provides business perspectives on a global scale and benchmarks across the board
On a personal level working abroad also has huge importance Robert Walters the specialist professional recruitment consultancy recently conducted a survey
of almost 2200 employees across a variety of professions exploring a number of topics which ranged from working practices and attitudes to careers The results highlighted some notable trends particularly for finance professionals
In career progression for example the survey showed that 50 of all accountants see working abroad as either lsquoessentialrsquo or lsquoextremely usefulrsquo to furthering their prospects more than banking professionals lawyers and IT workers ndash a strong indication of how accounting professionals are thinking about their future either within their existing company or with opportunities elsewhere
Accountants with globally recognised qualifications obviously have a greater chance of gaining some experience abroad and the lsquoGen Yrsquo professionals in particular seem ready to pack their bags In a CIMA study conducted in the UK last year over a third of those seeking employment in the
next two years will prioritise opportunities abroad over those in their home countries many of them enticed by the career incentives offered by the Middle East
How quickly can they land what seems to be their dream job What are the realities It may be that the move is simply from one branch to another and the only significant difference is a view from the window but for those expanding rather than changing their roles we have seen a very real need for a depth and breadth of knowledge never needed before
As geographical boundaries are pushed ever-wider a CFOrsquos responsibilities are pushed with them For many finance executives the understanding of their own patch of land is no longer enough they now have to be aware of foreign markets up to speed with foreign trends and au fait with foreign laws There is a need for a new commercial awareness in geography as well as philosophy
As geographical boundaries are pushed ever-wider a CFOrsquos responsibilities are pushed with them
John vargheseQampA
wwwthecfomecom 69
BUSINESSSET UP YOUR
IN THE UNITED ARAB EMIRATES
TO
WAREHOUSESOFFICES INDUSTRIAL LANDFLEXI
Quick and easy company set-up
Less than an hour drive from Dubai
Complete cost-effective packages including licences and facilities
100 foreign ownership
Zero income and corporate taxes
Eligibility for UAE Residence Visa
BUSINESS SET-UP SOLUTIONS STARTING FROM AED 15000 (USD 4000)
RAK FREE TRADE ZONE PROVIDES
RAK Free Trade Zone Authority - Government of Ras Al KhaimahUAE (Ras Al Khaimah) Tel +971 7 2041111 (Dubai) Tel +971 4 7041875 (Abu Dhabi) Tel +971 2 6994888
Germany (Cologne) - Turkey (Istanbul) - India (Mumbai)
Call +971 7 204 1111 Visit wwwrakftzcom Join rakftz
98
CFO InfographicPROJECTIONS
wwwthecfomecomwwwthecfomecom
CFO InfographicPROJECTIONS
Optimism
Risks and opportunities
Growth and expansion
CFOGLOBALISATIONINFOGRAPHIC
SOURCES Michael Page International Global CFO Barometer 2012 by Michael Page International Deloitte CFO Signals ndash Q1 2014 Deloitte CFO Signals Q4 2013 Robert Half CFO Insights
4738
44
36
55
72
39
26
42
20
95
71
35
68
CFOs express rising
optimismof CFOs are
optimistic about financial prospects
of CFOs believe its a good time to take greater risks
of CFOs believe financial risk management policies are not significantly aligned to cover market risks
see new product or service launches as a
key growth opportunity
40are hopeful about organisational growth opportunities
of CFOs are now more optimistic than in the last quarter
of CFOs are now more involved in risk management
of CFOs will pursue organic expansion
consider pricing pressures as the top growth inhibitors
are positive about the future state of the Indian economy
of CFOs are more optimistic than
last quarter
of CFOs willing to take greater risks
believe international expansion will play a
major role in in business development
expect MampA activity to rise over
the next year
rate this economy as good or very good
expect a major merger or acquisition
NORTH AMERICA
INDIA
MIDDLEEAST
SOUTHEASTASIA
UK
PACIFIC
WOMEN AS CFOS ( OF FEMALE CFOS IN OF RESPONDENTS)
( of respondents surveyed)
of CFOs spend significant amounts of time as strategists for company growth
76
AFRICA
AUSTRALIA
5 18
Lowest Highest
of CFOs with total annual compensation including bonus and benefits of over US$255000
of CFOs younger than 35 years old when they attained their position
Europe
Europe
13
Asia
14
SouthAmerica
29
Pacific
30North
America
49
49
NorthAmerica
21
SouthAmerica
Asia
43
31
Pacific
30
In North America 39 of CFOs are older than 50 years
On average CFOs worldwide attain
their position between the ages
of 30 and 39
of CFOs are confident about credit availability in the future
4831
73of CFOs feel that the finance function will play a larger role in their companyrsquos development and execution of business strategy
51of CFOs are satisfied with the performance of their finance function
56
10
UAECA LaunchMARKET OUTLOOK
wwwthecfomecom
AAA launches an accountancy Certification for the UAE in collaboration with ACCA
CERTIFICATIONTAKING REGIONAL OWNERSHIP
The United Arab Emirates Chartered Accountants (UAECA) Qualification launched at Dubairsquos Armani Hotel 3 November by the UAE Accountants and Auditors Association (AAA) in association with the global accountancy body ACCA (Association of Chartered Certified Accountants) The announcement coincided with UAE National Flag Day and advanced ever expanding Emiratisation aims across the country With the support of the ACCA the skills gained will not only lead local UAE accountants to excel across the Emirates but also to encourage further growth internationally
A number of notable local leaders spoke at the event and
expressed their delight and favorable expectations for the UAECA His Excellency Sultan Bin Saeed Al Mansouri the UAE Minister of Economy Saif Abed Al Muhairi Chairman of the Board AAA Abdullah Amiri Financial Manager AAA and Ahmad Darwish Secretary General AAA and Chair of ACCArsquos members advisory committee in the UAE each offered speeches to the crowd of assembled finance professionals
ldquoWe are confident that UAECA will be the ambition of young Emiratis who would like to be the future leaders in the finance fieldrdquo said Al Muhairi
The UAECA qualification is the national qualification of the UAE and is based on
the globally recognised ACCA qualification This criterion will provide a dual-branded internationally recognised IFAC compliant route to membership of both AAA and ACCA
Said Stuart Dunlop regional director MENASA ndash ACCA ldquoThis unique partnership between ACCA and AAA will give students access to a national qualification making their skills and knowledge globally and locally relevant Once qualified as an ACCA member they will also be eligible to apply for membership to AAA meaning they can use the titles ACCA and UAECA after their names And because this partnership supports
ldquoWe are confident that UAECA will be the ambition of young Emi-ratis who would like to be the future leaders in the finance fieldrdquo
11
UAECA LaunchMARKET OUTLOOK
wwwthecfomecom
Saif Bin Abed Al Muhairi Chairman AAA
Ahmad Darwish Secretary General AAA
the governmentrsquos initiative to develop the accountancy and finance profession they will benefit from enhanced career opportunities as more employers and stakeholders choose to work with us in the futurerdquo
Emiratis in the accountancy field joined the procession eager to take part furthermore in what the AAA has planned unequivocally encouraged by the Associationrsquos hand in the UAECArsquoS launch The new qualification has stoked promise for bolstering Emirati involvement in local accountancy as well as international ventures which lie beyond the countryrsquos borders
ldquoAs an ACCA member Irsquom really proud the ACCA route
The new qualification has a good deal of promise for bolstering Emirati involvement in local accountancy as well as international ventures which lie beyond the countryrsquos borders
to membership has formed the basis of the new national qualification of the UAE It gives aspiring Emiratis recognition on a local and global stage and is a unique opportunity that will develop our careers and the profession in the UAErdquo said Ayesha Al Zaabi Senior Accountant of Group Finance Aerospace amp Engineering Services Mubadala
The future of accountancy appears brighter than ever in the UAE with the unveiling of an internationally supported qualification specific to the country The potential increase of Emirati participation spells great promise for the finance industry as it grows from within
12
at CPI Media Group the discussion offered a candid conversation of lively opinions bringing together key individuals from prestigious and influential businesses based in the UAE
The spirited discussion delved into how varied and increasingly imperative the Chief Financial Officerrsquos role has become
Vincent Valladares Managing Director Middle East Head Citi Commercial Bank led the vibrant discussion with the support of Anand Nagaraj Vice President Head Product Development Citi Commercial Bank whilst Grant Thornton Partners Jay Raney and Amgad Nassif offered their views as well
CFO RoundtableMARKET OUTLOOK
wwwthecfomecom
One of the trends in world business currently attracting considerable comment and debate is the changing role of the CFO No longer simply the custodian of the businessrsquo finance or the head of accounts the CFO is increasingly seen as a master strategist and the key architect of corporate decision-making As such a roundtable event held by Citi - in collaboration with Grant Thornton - was both a timely and revealing landmark on shifting attitudes and aspiration
IN CHANGING TImESCITI COMMERCIAL BANK CORRALS A pOwERfuL MEETINg Of MINdS
The management guru Tom Peters recently commented that ldquoIn these perverse and perhaps illusory times is it any wonder that the CFO is seen as the one reliable point of reference - the one person from the C-suite cut out for more responsibility and bigger things in the businessrdquo
Citi Commercial Bank and Grant Thornton echoed the importance of this shifting role by gathering a collection of leading CFOs and finance executives at Dubairsquos Grosvenor House - hosting a keynote round table called lsquoThe Changing Role of the CFOrsquo In a world where CFOs are increasingly wearing a number of new hats within their respective enterprises the event asked pertinent questions such as -
ldquoThe CFOs duties have changed as strategy and other focuses are becoming increasingly importantrdquo
bull Whether the CFO is increasingly the businessrsquo key strategist bull Whether or not the role is more and more impacted by changing legislation and regulationbull Is the CFO now effectively the CEO-in-waitingbull What is the role of management education in this new mix
So while much has been written lately about how essential it is that the CFOrsquos function evolve and change the dayrsquos discussion took an overtly practical view and gathered the opinions of the individuals at its core
Hosted by Paul Godfrey Group Editorial Director
13
recession environment has created an atmosphere rife with new regulations which CFOs are expected to master as these international enterprises venture into new markets and encounter sensitive and risk management-oriented frameworks
Citirsquos Vincent Valladares observed ldquoRegulatory issues are becoming bigger for banks as well as compliance And when we look at doing business with companies we want to look at those with good management teams because otherwise it can become difficult The CFO plays a very important role within this processrdquo
CEO waiting in the wingsWhen the group was quizzed on their individual desires to become CEO every hand around the table went skywards with an affirmative ldquoyes all of usrdquo - highlighting how commercially-minded todayrsquos CFOs have become Not to mention just how axiomatic the relationship between CEO and CFO consistently proves to be
Another factor is that amid all this diverse change - in roles working contexts and background economics - the CFO is seen very much as the person creating order control and standardization No small task
Perhaps the only certainty is that the communication of ideas is leading the charge forward for one of the business worldrsquos most important roles and The Changing Role of the CFO provided a definitive benchmark for this onward march
CFO RoundtableMARKET OUTLOOK
wwwthecfomecom
Members of the roundtable trade ideas
Vincent Valladares offers his position
CFO or CCOldquoThe duties have changed in some very clear ways A phrase that I am constantly coming across and strongly agree with is that we should be thinking of the CFO as the Chief Commercial Officer as opposed to someone who deals solely with finance Responsibilities central to finance continue to exist of course but strategy and other focuses are becoming just as if not more importantrdquo commented Rishi R Vig ZAFCO CFO
In addition to how much larger a remit commercial decisions are demanding the importance of regulatory protocols was a much- discussed topic The post-
Vincent Valladares Managing Director Middle East Head Citi Commercial Bank
Anand Nagaraj Vice President Head Product Development Citi Commercial Bank
Jay Raney PartnerGrant Thornton
Amgad Nassif Partner Grant Thornton
Paul Godfrey Moderator Group Editorial Director CPI Media Group
Steven Pradia Assistant EditorThe CFO Middle East
Ganapathi Bhat Senior Manager of Finance GEMS Education
Mark Downie Financial Controller Proclad
Nimesh Lokhandwala ICAI
Jehangir Pocha Himalaya
Kamal Shah Finance Manager Logicom
Rishi Vig CFO Zafco
Low Wai Leng Financial Controller Dubai Precast
Rajeev Jain CFO Afri Ventures
KG Vincent Finance Director FDC International
Ramesh Pemmasani Head of Accounts Intersun
Nagesh Nadig AIC
ROUNDTABLE ATTENDEES
IndiaCOUNTRy FOCUS
wwwthecfomecom14
SUBCONTINENTAL SURGE
By Arvind Chari
Last year was undoubtedly a turbulent time for emerging markets due to political instability inflation and the fledgling recovery in the West all causing significant headwinds Unsurprisingly this has led some commentators to be sceptical about the prospects for these markets including India But the Indian economy is showing signs that it will weather the challenges of the next few years This may not be an easy task given the
manner the Indian rupee plunged in response to the US Federal Reserversquos decision to taper asset purchasing Nevertheless India does have the political will to make the necessary reforms to deliver on its potential
While the Fedrsquos decision has caused some fallout in emerging markets commentators expect that this will tail off over time Meanwhile Indiarsquos economy is driven by domestic demand which means that
India does have the political will to make the necessary reforms to deliver on its potential
With an eye towards the nationrsquos key partnership with the Middle East the following India country report shares economic prospects accounting for last yearrsquos instability ndash defining what investors can gain moving forward
IndiaCOUNTRy FOCUS
wwwthecfomecom 15
$791bTotal trade between India and the UAE in lsquo13
64Expected growth of Indiarsquos economy in lsquo15
Indiarsquos debt market needs to attract stable investors over lsquobond touristsrsquo short term foreign flows evident in Indiarsquos bond markets
it is better placed than most to deal with the world post-quantitative easing Without the so-called lsquotaper tantrumrsquo investors in India might have focused more on the positives in 2013 But given the overall improvements in the economy and the political outlook we feel the India narrative will be harder to ignore in Q4
One of the most significant changes has been the appointment of Dr Raghuram Rajan as governor of the Reserve Bank of India (RBI)
last year He is clearly part of a dying breed of central banker that is one who actually knows how the world works He will make mistakes but the most important thing is that he will be trying to move India in the right direction as shown by his decision to continue with a hike in interest rates at the end of January Bond and currency markets have reacted very well to this move which shows the bank is now ahead of the curve in fighting inflation In October Rajan remarked that
Indiarsquos debt market needed to attract stable investors over lsquobond touristsrsquo a reference to the short-term foreign flows that have been evident in Indiarsquos bond markets His stance is an indication that policies could be shifted to attract more long-term stable money into Indiarsquos government bond markets away from a focus on the foreign-bank lsquoproprietaryrsquo investments that dominate flows currently
Indiarsquos current account deficit (CAD) was set to halve
STAT FACTS
IndiaCOUNTRy FOCUS
wwwthecfomecom16 wwwthecfomecom16
in the year ending March 2014 It was due to fall to 25 from 48 of GDP in 2013 The fall in gold imports alongside currency depreciation was a major contributing factor to this reduction Indiarsquos exports became more competitively priced over Q1 2014 which has led to higher exports in textiles chemicals and leather goods while the drop in the value of the rupee has also led to a fall in non-oilgold imports We expect the CAD to increase to around 3 of GDP for this financial year as gold import restrictions are removed a shift that should still be easily fundable Additionally the RBIrsquos FX reserves have increased by $34bn through the bank and non-resident Indian deposit swaps which was a much higher figure than anticipated This gives the RBI the additional firepower to intervene in the markets if it is necessary to counteract currency volatility In fact the
rupee has been remarkably stable since October and has steadily outperformed its other lsquofragilersquo emerging-market peers
There has also been an improvement in how other countries perceive India Net foreign direct investment is stable despite some negative sentiment driven by the outflows from the bond markets and banks Vodafone described by Rajan as lsquothe poster child for companies with difficulties in Indiarsquo is investing more in spectrum and also buying out minority operators In addition significant Japanese investment into Indiarsquos infrastructure is a further boost to the country and this relationship will be one to watch over the coming years
Overall the world has a much better impression of India than it did a few years ago when the country was facing significant obstacles In 2010 increasing inflation expanding fiscal deficits and an escalating CAD ndash all coupled with slowing growth rates ndash put India in a very difficult position But in 2012 the government realised that the current situation could not continue and since then there has been a much greater focus on reform
A mixture of poor growth and bad policies dramatically hampered Indiarsquos progress earlier this century frustrating many investors But the country is now beginning to drive a wedge between itself and the other more troubled emerging-market economies We feel
162KIndian tourists in Abu Dhabi yTD
Significant Japanese investment into Indiarsquos infrastructure is a further boost to the country and this relationship will be one to watch over the coming years
STAT FACTS
IndiaCOUNTRy FOCUS
wwwthecfomecomwwwthecfomecom 17
Population size 12 billion
Area 3287263km2
Type of government Federal republic
Official language Hindi
Capital city New Delhi
Largest city New Delhi
GDP (2012) $1825 trillion
Central government debt as a proportion of GDP 67
Currency Indian rupee
Conversion rate against the euro 0013
COUNTRy FILE
Hire a local manager or partner who has a very good
understanding of local rules and regulations
Have a longer-term investment horizon because the Indian rupee will remain
volatile for a while
donrsquot view volatility as a risk view the
integrity of the government and
management as a risk
Travel to India and feel the lsquomicrorsquo India
story rather than just read about the lsquomacrorsquo India story
Be patient and have realistic
expectations ndash things take time to work out in India
TOP TIPS FOR DOING BUSINESS IN INDIA
that these differences will mean that India significantly outperforms those economies over the coming years And while we might still be facing some turbulent times for India at least the dark clouds are beginning to break
As with any emerging-market economy the next few years will present challenges alongside opportunities and investors will have to
be comfortable with this state of affairs But India is committed to making the reforms it needs to improve its future The country has much better potential for growth than any developed country and it is also in a far better position than many of its emerging-market peers Now is the time to take advantage of all that India has to offer to investors
INNOvATIONrsquoS BOTTOm LINE Bill Chappell occupies a rare space as the CFO of Dubai Silicon Oasis a free zone dedicated to the development of technology across the emirate In the following interview he shares with CFO Magazine how far along technology has come in the UAE and why the figures are the most important aspect of his role as Chief Financial Officer
18
Cover StoryTECHNOLOGy
wwwthecfomecom
Dubai Silicon Oasis (DSO) occupies a vast 72 million square metre stretch of land in the northern reaches of the UAErsquos most globally recognised emirate Established in 2005 as a government-owned free zone devoted to the development of technology DSO has in the time since welcomed over 1087 companies into a space of which more than 59 of has been developed
Responsible for liaising with DSOrsquos companies both large and small whilst overseeing the free zonersquos balance sheet CFO Bill Chappell mans a unique station as a finance
executive with a keen eye for technological growth
ldquoIrsquove been with Dubai Silicon Oasis for nine years and my role is rather split I am the finance director but Irsquom also responsible
for our initiatives on technology incubation
and investment which is all very interestingrdquo
Chappell said Despite Chappellrsquos
years of experience in the technology industry granting him an imperatively strategic purview as CFO he makes clear what is most important as Chief Financial Officer
ldquoGetting the numbers right must always be the number one thing People talk about strategy and a number of other things but you must focus on the numbersrdquo
Chappell offered ldquoMy background is in technology companies for over ten years previous to coming here so I have a knowledge of technology which I brought to Dubai above all My overlap personally involves understanding technology whilst being a CFOrdquo
When Dubai Silicon Oasis first came into existence the area was undeveloped with no roads customers or residents Today the oasis acts as both a home for industry and residence whilst the Dubai Silicon Oasis Authority operates a number of services unique to companies which operate within the free zone A business incubation centre venture capital funding structure and various forms of entrepreneurial support are among DSOrsquos many aspects available to tenants
Said Chappell ldquoThere are three categories of companies at DSO There are smaller companies which deal more largely with our entrepreneur and incubator ecosystem The other extreme involves global firms such as Fujitsu or SAP and we look at their needs and make sure theyrsquore satisfied as customers They want our help to get setup And then there is the middle group and I meet them if they need my help as CFOrdquo
DSO counts SAP Porsche Fujitsu and Qordoba among its vast bank of companies
19
Cover StoryTECHNOLOGy
wwwthecfomecom
each of which are granted access to the Chappellrsquos well-honed expertise
ldquoBill has been involved in several meetings to gain updates about the company and offer input on what he thinks we should be focusing on whilst asking questions about our financial processes He also sits with the board on occasionrdquo said Loulou Khazen Baz founder of Nabbesh an online marketplace which connects professionals with work opportunities
ldquoDubai Silicon Oasis has been an important Investor at various stages of Nabbeshrsquos journey and a vital stamp of approval Our company has found priceless value in DSOrsquos support and the approachable nature of an involved CFO like Billrdquo
Chappell faces a number of challenges related to investment due to the region not ranking tech developments as high as traditional platforms such as real estate Additional concerns related to innovation have found themselves increasingly entering the CFOrsquos remit as related to encouraging ideas specific to the region Chappell is confident however that certain companies based in DSO are addressing these issues
ldquoIn this region one of my biggest challenges is getting people to understand
ldquoPeople talk about strategybut getting the numbers right must always be the number one thingrdquo
20 wwwthecfomecom
the complexities of tech Technology is a good investment class but the region is focused very much on real estate whilst the investment class of technology doesnrsquot rank as highrdquo said Chappell ldquoIn order to widen the general understanding we want to be developing solutions which address problems specific to the region We have one or two gems for example Qordoba a translation company which translates content in multiple languages The programme utilises artificial intelligence and as a result is getting smarter and smarter each time it is asked to translate so that it understands the meaning of what itrsquos translatingrdquo
Another key variable for DSO is centred on supporting
Dubairsquos goals based around becoming the worldrsquos capital for Islamic finance Chappell describes his role as CFO as one with ldquotwo thousand handsrdquo a multi-layered position which he seems to relish being held responsible for While DSO has grown tremendously in its near decade of existence the free zonersquos exuberant CFO sees lots more to come
Said Chappell ldquoI see us going from strength to strength Wersquove been in existence for nearly ten years When I joined it was empty desert Now we have over 1000 companies and an estimated 43000 living on site Within five years wersquoll also be further down the path and wersquoll be recognised for our contributions to the smart city and the Islamic economyrdquo
ldquoWithin five years wersquoll be further down the path and recognised for our contributions to the smart city and the Islamic economyrdquo
Dubai Silicon Oasis
headquarters
1080Companies in DSO
72millionDSOrsquos land mass in square metres
STAT FACTS
Cover StoryTECHNOLOGy
THE MIDDLE EAST ACCOUNTANCYAND FINANCE EXCELLENCE AWARDSWEDNESDAY 10 DECEMBER 2014AT THE JUMEIRAH BEACH HOTEL DUBAI
ACCOUNTING FOR EXCELLENCE
Once again the very best talent in the world of accountancy and fi nance will be celebrated by ICAEW at a stellar awards ceremony
ICAEW is a professional membership organisation supporting over 142000 chartered accountants around the world And on Wednesday 10 December 2014 at the Jumeirah Beach Hotel in Dubai wersquoll be recognising excellence in ten categories featuring Business Leader of the Year CFO of the Year Corporate Finance Deal of the Year and the Internal Audit Excellence Award
With an impressive line-up of speakers special guests and entertainment it all adds up to a trulymemorable evening
To submit a nomination or for more information visit icaewcommiddleeastawards
Nominations close on 1 October 2014
A WORLD LEADER OF THE ACCOUNTANCY AND FINANCE PROFESSION
400595_ICAEW_MiddleEast2014_Ad_NBAD_DEVERE_207x270_AW_3indd 1 27082014 1541
PROCUREMENTANALyTICS
wwwthecfomecom22
Return on Supply Management Assets (ROSMA) is a pioneering framework launched by AT Kearney after four years of testing one aimed at addressing the aforementioned procurement gaps The performance measurement standard was initiated with an eye on creating a benchmark for the procurement industry and providing a compass to direct investments
ldquoROSMA started in 2010 And it started out with conversations with the CFO There are a group of folks in the company talking about how great their achievements are however
the capital that procurement claims isnrsquot often obvious and can create a disconnect within the companyrdquo said AT Kearney Vice President Federico Mariscotti
This yearrsquos annual report surveyed a number of businesses and arrived at a series of significant findings which outline procurement patternsbull Top-tier companies generate
approximately $16 million in financial return per procurement employee yearly A reported 35 per cent of return derives from applying advanced methods
bull Mid-level performers typically
The first step for compa-nies in the Middle East is to take a good look at what they expect procurement to bring
Leading global management firm AT Kearney recently released a report on the evolving conversation which surrounds procurement A key aspect of the report spells out how much CFOs stand to gain by making more pronounced investments based on utilising procurement in terms of value The relative distance between CFOs and their respective companyrsquos procurement methods is cited as cause for concern
THE NEW LANGUAGE OF PROCUREmENT
generate four to five times of their investment in procurement valuation yet have not exemplified growth since 2011
bull Performers at the lowest level surveyed do not achieve monetary benefits which cover costs
bull The majority of organisations surveyed do not possess the tracking structures needed to analyse procurement performance
bull Regardless of company size or industry procurement
PROCUREMENTANALyTICS
wwwthecfomecom 23
The CFO community has not yet awakened to the value of procurement
performance varies though companies with sophisticated reporting techniques experience less variable performance
The reportrsquos express aim to create a benchmark for procurement follows a wave of process monitoring which found notice in the manufacturing industry in the 1980s supply chain research and engineering in the 1990s and sales and marketing performance being closely tracked in the 2000s
ldquoProcurement costs can represent anything from 20 to 90 of a companyrsquos total cost going from the public sector to consumer goods Yet the productivity of the team that presides over the supply market interactions has a way of explaining their value add using savings that do not add up to the PampL impact measured by finance Savings definitions different baselines and cost avoidance all contribute to a murky aggregate view of the impact on the businessrdquo added Mariscotti
In the Middle East the challenge is fundamental ndash getting the spend data in the first place Companies admit they often do not have a clear categorisation of intelligence lack an agreed definition of savings measurement and generally position procurement as a pre-eminently transactional activity lacking the mandate to contribute value Procurement processes as a result remain centred around purchasing are paper based and lack transparency The first step for companies in the Middle East is to take a good look at what they expect procurement to bring
wwwthecfomecom24
Influencedspend
The inconsequential The brand leaders
Leaning up
Note All three segments start with a common hypothetical spend of 1000 to normalize the case example
Source AT Kearney analysis
Source AT Kearney analysis
TOP QUARTILE
mIDDLE-TIER 50
BOTTOm QUARTILE
704
764
644
522
527
396
42
30
(138) (25)
(63)
19
39
28
15
21
4
3
60
32
18
Sourcedspend
Units of yield
Post-compliance
benefits
Additionalbenefits
Financial results
delivered
19x
17x
middle tier
bottom quartile
TOP-QUARTILE PERFORMERS DELIVER NEARLy TWICE AS MUCH VALUE AS MIDDLE-TIER PLAyERS
THE CFO COMMUNITy HAS NOT yET BEEN ldquoAWAKENEDrdquo TO THE VALUE OF PROCUREMENT
Procurement is not on the radar for those who gave the wrong answers to three essential questions
leadership with accountability for performance is clear but either the measures are not clear or performance is believed to be weak variable or unknown ndash or a mix
leaners and leaders answered all three essential questions correctly and also answered most or all other questions correctly
to the table and how it should support the business To make a steep change companies need to understand the multiple benefits which will occur for investments made once theyrsquove allowed for stronger procurement practices
The benchmarking aspects of ROSMArsquos report speak directly to CFOs based on an existing widespread inability to track and improve this often unquantifiable nature of procurement practices According to the report the CFO community has not yet awakened to the value of procurement and Chief Financial Officers are thus divided into three segments The brand leaders (25) those leaning up (63) the pack (774) and the inconsequential (138)
Said Mariscotti ldquoThis is a way to give procurement a measurable quality that CFOs can quantify You have to know what yoursquore doing with relation to procurement in order to do it well ROSMA gives you a number which helps you understand how good your procurement is working as compared to peers It lets you know whether or not you could be doing something differentrdquo offers Mariscotti
CFOs have exemplified an increasing ability to share in a companyrsquos strategic efforts whilst expand their respective remits Procurement is emerging as the latest segment of this conversation Understanding its value beyond the transactional is the first step for CFOs to fully engage with harnessing the potential of procurement and grow to become a part of the elusively paltry portion of brand leaders indicated in ROSMArsquos report
PROCUREMENTANALyTICS
The pack(774)
Al Sharid is the Vice Chairman of Emirates Transport and has enjoyed a successful career in which the lionrsquos share of his tenure has afforded him a seat at the helm of the business
ldquoI remember when I first received the GM of Tata in the late 80s he said to me lsquoYou are the youngest GM I have ever metrsquo I was 29 years old at the timerdquo Looking at Al Sharidrsquos rapid ascent to the top of his organisation can be mind boggling to the average observer however to those few who strive to push themselves to their limits it is perhaps more common a reality As with any top performer we can often see their desire for results and impact
early on in life and with Saeed the first stride of his race to the top began with an accounting degree in university
It was 1976 and the excitement of the UAErsquos biggest milestone moment its inception just five years earlier still clung to the air from Fujairah to Abu Dhabi and every emirate in between A nation was being built Saeed had just finished high school and went to the United States where he was to study engineering
ldquoI was not yet 18 years old it was 1976 and I was sent to America to study it was the beginning of a dream and a young liferdquo says Al Sharid Unfortunately Al Sharidrsquos academic tour of duty came to
THE EmIRATI DREAm Saeed Al Sharid is today an elder statesman in the world of UAE accountancy With decades of know-how based on chairing a number of key Emirati organisations Al Sharid is today atop his own family firm In the following exclusive interview he shares the importance of education the evolution of a nation and just how being an accountant has driven his many triumphs
an abrupt halt when his father suddenly passed and he was forced to return home ldquoWe are seven brothers and I am the middle one so during tough times we always come together and during this period the strength of my family pulled me through I have three younger brothers and I felt I had to be there for them I felt responsible for them My mother played an omnipotent role in pulling us through this dark moment in our history The death of my father forced us to become more independentrdquo says Al Sharid
Now back in the UAE with his plans of studying abroad dashed Saeed looked at the local schooling system within which Al
26
InterviewPERSONALITIES
wwwthecfomecom
Saeedrsquos desire for results took its first stride with an accounting degree in university
By Shane phillips
27
InterviewPERSONALITIES
wwwthecfomecom
Ain University had just opened ldquoAl Ain University was the pride of the Emirate at the time the students were like celebrities The first batch of graduates were all promised 50000 AED from HRH Sheikh Zayed I was one year late so technically I should not have graduated with the first batch but I was determined I worked an extra course load did summer school and soon caught up to the first class 50000 AED in 1981 was like 5000000 AED today so I was very motivatedrdquo says Al Sharid
Saeed not only caught up with the other students but he wound up graduating atop Al Ain Universityrsquos first class of graduates with a 38 GPA ldquoWe Saeed Al Sharid
28 wwwthecfomecom
to the organisationrdquo he says Saeed first joined Emirates Transport after seeing a small newspaper advertisement for an accountantrsquos position He applied but initially they did not want to hire a local because locals were too expensive After a few months however they called him back for an interview and offered him a job
Initially Saeed struggled to get a promotion or even a raise He worked tirelessly to develop himself and kept detailed notes of his work After nearly two years went by with no promotion he requested to meet with the Chairman of the corporation to discuss his career The Chairman was a Minister making him even more senior than his title implied Al Sharid was courageous and determined ldquoYou should not stay silent you have to take initiative your future is in your handsrdquo says Al Sharid
ldquoI met with the Chairman and told him about my work and what I wanted to do He did not talk he just listened and that was it It was a 15-minute meetingrdquo says Al Sharid Three days after Al Sharidrsquos pivotal appointment he was promoted to Deputy General Manager Directly from a Trainee to DGM skipping all the roles in between at the age of 27 years old They doubled his salary and catapulted him into a senior leadership role
ldquoI felt it was quite strange to move up that fast and personally was not sure I could handle the job I had a lot of resistance from the board I had people in their 50s reporting to me and they were not happy about it So I just took a step back and did not try to get involved in their work too fast I went slow and watched my step This was a very important
ldquoThe UAE was a brand new country and a lot of work was being done to develop the nationrdquo
never had any idea of a career path and there was no such thing as career counsellors or lsquocareer servicesrsquo at the school So when you graduated most people just joined the Ministries The UAE was a brand new country and a lot of work was being done to develop the nation The Federal Government paid the highest and so one just joined them There was no grand vision or dream that I was off and chasing In those times you simply tried to do the next best thing So I ended up working in the Ministry of Health as an accountant Back then a university degree was a veritable qualification and it had a lot of market equity today it wonrsquot even get you in the doorrdquo
As the Middle East market evolves not only are university degrees becoming more common but so are post graduate degrees such as MBAs and even PhDs As such the competitive positioning of professional qualifications are gradually eroding over time
ldquoTo stay competitive executives today will require deep and specialised knowledge of their respective industries an intellectual arbitrage that provides superior results To beat the market to manage the risks to develop a sustained competitive edge For this executives need to stay in a role for the full strategic cycle which is at least four years in durationrdquo says Sharid In the case of Al Sharid he was there for 33 years
ldquoDo you just want a job or are you looking to make a contribution to your company Too many young people today are just looking for a title or a position The difference between those who make it into senior roles and stay there is the desire to create impact to add value
InterviewPERSONALITIES
2012year Moodyrsquos upgraded the UAE economy from developing to emerging
37The UAErsquos global rank for GDP
STAT FACTS
moment for me to gain valuable leadership experience early on To make my learning curve even steeper the General Manager quit after two years and I became the GM at the age of 29 years oldrdquo explains Al Sharid
He ascended to the top job in less than five years and stayed in the position for almost twenty years He was totally committed and could even be found in the bus yard at four in the morning to greet the drivers as they started their shifts ldquoThe key to being successful in business is to keep your finger on the details Some people let the details slip and if this happens you will suffer I get into the yard I meet the drivers I meet all the staff If you saw us you will not know who was the GM or who was the driver You have to realise people will never work for you they will only work with you To me Emirates Transport is like my familyrdquo says Al Sharid
When asked what his keys to success are he says ldquoI think if I was not an accountant I would not be a good leader I would not be a good manager In my opinion trying to do business while not understanding accounting is like getting into the ocean and not knowing how to swim you will drown The Chief Executive Officer who does not know how to create the financial statements is always at the mercy of his Chief Financial Officer He cannot take any big decision on his own and he will not even be able to challenge the CFO Accounting is the bedrock of any business and a critical skill set for any leader No one can argue with this factrdquo says Al Sharid
With over 20 years of experience in tow and the related chairmanships to boot Al Sharid
ldquoTrying to do business while not understanding accounting is like getting into the ocean and not knowing how to swim you will drownrdquo
has since early last year partnered with his family to form Al Sharid Auditing Though the Emirati youth is not as keen to pursue positions related to accountancy as Al Sharid was he feels that there is hope to close the gap
ldquoIt is difficult to find an Emirati expert I studied the audit market specifically and there were others like me then But now you break Emirati auditing involvement into three categories The first involves the big firms This is followed by individual smaller enterprises But thirdly a lot of locals opt to work with the government also Most are not managing their own firms they just have a partnership and they are building thatrdquo Al Sharid explains
ldquoAl Sharid Auditing however is a firm that includes my brother and our two sons which make up a body of qualified professional auditors We established this firm last year and work closely with the government We decided to make one firm together instead of having many smaller entitiesrdquo
Moving forward Al Sharid plans to grow his familyrsquos firm by applying the very belief system which has catapulted him to his position of power Marketing concerns which are designed to furthermore announce how tailored Al Sharidrsquos offerings are at present a key variable to forging ahead
Said Al Sharid ldquoMoving forward wersquore focusing more on the marketing of our firm Itrsquos a matter of not exactly expanding but going over the right deals The market is tough and the small jobs are easy but we donrsquot need them We donrsquot want to be in many rooms we want to be in the important onesrdquo
29wwwthecfomecom
InterviewPERSONALITIES
1UAErsquos rank among GCC nations for chosen hub of all major accountancy bodies
STAT FACTS
Latest insights from PwCrsquos 15th Annual Global CEO Survey revealed that 59 per cent of CEOs see emerging markets as more important than developed markets to their future What is making emerging markets such a pressing priority for C-suite executives Why are emerging markets increasingly grabbing headlines
Emerging markets are large fast-growing and ambitious markets best known for being the growth engines of todayrsquos global economy Research (1) suggests that emerging market countries are expected to amount for more than 60 per cent of global GDP growth ndash a clear indication of the wealth of opportunity they present
Understanding emerging marketsBased on estimates by the International Monetary Fund emerging economies are expected to grow two to three times faster in comparison to developed nations Explaining this fast-growth and the rise of these emerging markets an article on Forbescom details that ldquoduring the US housing crash and resulting credit crisis of 2008 world markets were saved from a total disaster thanks to the big emerging markets ndash mainly Brazil India and China The global credit crisis was one of the longest deepest and most painful in history It toppled Wall Street icons like Lehman
The following report explores emerging markets from West to East which are at the helm of economic development trade and innovation and highlights what their rising popularity means for the growth of your business
Brothers required government bailouts of bulge bracket banks and shocked the global economy with a deep economic recession and even a deeper crisis of confidence Its most important legacy though may be one that has yet to fully unfold the crisis revealed a new world order in terms of economic and market dynamics Emerging market economies finally arrived as
30
Market IntelligenceANALyTICS
wwwthecfomecom
ENTERING EmERGING mARKETS STRATEgIES RISKS ANd OppORTuNITIES
Projected annual GDP growth 2014 amp 2015
PANAMA
67
PERU
RANK42
55
Projected annual GDP growth 2014 amp 2015
Ease of Doing Business
RANK55Ease of Doing
Business
TOP TEN MARKETS
(1) Source here Accenture Research ldquogearing up for growth ndash five imperatives for success in emerging markets 2011 Henry Egan and Armen Ovanessoff
31
Market IntelligenceANALyTICS
wwwthecfomecom
LATVIA
CZECH REP
MALAYSIA
THAILAND
SOUTH KOREA
CHINA
RANK75
41
21
50
45
35
74
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
CHILE
RANK 34
43
Projected annual GDP growth 2014 amp 2015
Ease of Doing Business
RANK 24Ease of Doing
Business
Ease of Doing Business
RANK 6Ease of Doing
Business
RANK18Ease of Doing
Business
RANK 7Ease of Doing
Business
RANK 96Ease of Doing
Business
POLAND
32
RANK45Ease of Doing
Business
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
Source httpwwwbloombergcomnews2014-01-29qatar-china-top-ranking-of-frontier-and-emerging-marketshtml
powerful essential and permanent contributors to global economic growth and sustainabilityrdquo
Bloombergcom recently ranked the top emerging markets based on their performance on 19 economic financial political and social indicators In order of ranking the top ten markets were
CHINA
SOUTH KOREA
MALAYSIA
CHILE
THAILAND
PANAMA
PERU
LATVIA
POLAND
CZECH REP
1 6
2 7
3 84 9
5 10
Market IntelligenceANALyTICS
32 wwwthecfomecom
Making an entryIf your business is looking to enter any of these emerging markets itrsquos worth considering the following checklist
1 Assess your readiness The biggest mistake you can make is to enter a market without proper evaluation of your business Donrsquot do it just because everyone else is Like every other major business decision be sure to speak to your Board of Directors partners investors stakeholders and most importantly your CFO and certified accountants Make a business plan enlisting your objectives goals investment strategy potential risks etc
2 Research research research Do your homework Treat emerging markets as any other international expansion venture and do thorough research on the new market ndash Who are the competitorsWhat is the price point for your product What are the customer demographics What kind of infrastructure do you need for the manufacturing production or distribution of your product
3 Understand the legal framework Emerging markets might not have rules and regulations as clearly spelled out as your home country Invest some time and money in understanding how business procedures work A very obvious area of focus for UAE-based companies is tax Since the UAE is a tax-free economy companies arenrsquot exposed to tax accounting and other legislation surrounding
ndash failing to adapt to the needs and expectations of the local customers is surely a recipe for failure Time and again companies havenrsquot been able to create a customised offer and have had to exit these markets with huge losses A success story however is that of the Haier Group Haier famously introduced washing machines to specifically suit the water pressure levels in the households of India ndash an emerging market strategy that worked very well in their favour and helped them become leaders in that sector Another great example is that of Coca-Cola as explained in an online Reuters article by Matt Reilly ldquoIn Brazil Coca-Cola has used social media to better understand consumer preferences and has developed a successful local network to supply traditional Coca-Cola products as well as fruit juices tailored to local tastesrdquo
7 Local currency This is a complex yet critical area to consider when entering a new market Ask yourself questions such as ndash What is the local currency rate How does it compare to the currency in your home country Is the country import-led or export-led and what impact can this have on the global value of the currency Remember that fluctuations in currency rates can hugely effect your overall investment and thereby the return on investment
8 Build partnerships When entering an unknown territory it is quite useful to have the backing and support of peers who can help you in case of unforeseen challenges This is
this Another area to consider is corruption ndash emerging markets are notorious for high corruption red-tape and bureaucracy Speak to your company lawyer to assess these areas and take proper measures to avoid them before-hand
4 Invest in local talent Working with people already accustomed to the new market avoids the hassle of relocation and reduces costs But more significantly gives you skilled talent to work in these unique environments This also works in favour of your company as it gives you a clear understanding of the kind of compensation packages you will have to offer to your employees For instance employees based in China might want high remuneration and low healthcare benefits while in India it may be quite the reverse Recruiting local talent will also have a trickledown effect ndash your employees will easily be able to cater to the local customer needs without the need for intense training
5 Supply chain 44 per cent of business leaders surveyed consider accessing the right supply chain capabilities extremely or challenging in emerging markets according to Deloittersquos Globalisation Survey Make sure that you know who your suppliers will be what the production costs are whether their production procedures fit your time constraints and if the final product matches your level of quality
6 Cater to local market demands This is one of the most important aspects of all
Do your homework Treat emerg-ing markets as any other internation-al expansion venture
Market IntelligenceANALyTICS
33wwwthecfomecom
the very reason why Mergers and Acquisitions are a popular way to enter into emerging markets Many companies piggyback on their clients who are entering these markets For instance if you are an IT consultancy working on a major project for a manufacturing and trading company with operations across India and China you can use their resources and expertise to explore opportunities in these countries
Remember to consider these steps every time you enter a
new market as every locality has its own set of unique needs One strategy doesnrsquot fit all
Surviving fierce market conditionsWhile the massive opportunity that lies within emerging markets paints a pretty picture businesses need to be wary of bottlenecks such as corruption volatility gaps in laws and regulations and strong competition There have been several high-profile cases of multinational companies withdrawing from emerging
markets owing to immense corruption pressures
There is also a high percentage of inherent risks in these markets which amount to many companies not succeeding in their first attempts It is important to take your time when adapting to these markets and fully understand the business dynamics Following recent case studies and going over the lessons learnt by multinational companies who have made an entry into these markets consider the below
bull Is your companyrsquos head-office ndash and senior management ndash located in your home country without any C-level representation in the new emerging market
bull Are you focusing all of your resources on doing business in the emerging market at the cost of losing profits in your home market
bull Have you researched local competitors in these markets who may already have a strong standing and proven models of success
bull Are you using the same ldquoentry approachrdquo and business model across different emerging markets
If your answer to one or more of these questions is yes it may be time to re-evaluate your presence in these markets and map out a different strategy
Finally remember that no matter what the outcome of your admission to these markets might be your business is sure to emerge out of this stronger tougher and ndash of course ndash ready for a new challenge
of companies believed they had invested more resources in
emerging markets than was required
entered a market without fully assessing the ability of the supply chain to support the expansion
entered with the wrong pricing model and an inappropriate
operating model
CONSIDER THE RISKS
48
24
20
There is also a high percentage of inherent risks take your time when adapt-ing to these markets and fully understand the business dynamics
Source Emerging markets expansion and the supply chain Economist Intelligence unit survey conducted on behalf of EY September 2010
34
CIMA INTERVIEW
wwwthecfomecom
The Chartered Institute of Management Accountantsrsquo (CIMA) Managing Director Andrew Harding visited Dubai to host the Institutersquos seminar on global management accounting principles In the wake of CIMA revising their well heralded syllabus Harding discussed with CFO Magazine what the newest edition held how CIMA is applying a digital focus to its courses and just how CFOs can gain from it all
CURATING CURRICULUm
35
CIMAINTERVIEW
wwwthecfomecom
can give CFOs something they can take and something they can measure their own management accounting services against They can benchmark using this and they can utilise this to see their progress
Part of that is having professional management accountant in place I donrsquot think the landscape matters I believe that there is a common business need wherever you may be around the globe
All of the emerging markets need these skills The first aspect that accounting schools teach is about auditing skills because theyrsquore interested in protecting investments Then they teach you how to keep your business sustainable and to have a sustainable business you need to have a management accountant in place So itrsquos not just here in the UAE where we see these demands we see the same demands in China Indonesia and other powerhouse economies We see their skills shortages and we see the need for solutions in those areas
Talk to me about how this new syllabus works to promote the evolution of a CFOThis syllabus that wersquove
Can you expound on just what can be found within the new CIMA syllabusWe just revised the syllabus we do that every four to five years What we have done this year is a very significant revision It is based from a complex study that we have carried out to over 3000 people from 200 companies globally It is the very first revision since the joint venture with CIMA and AICPA So this has allowed us to attain a syllabus rich with all the data from all the continents in the world For the first time wersquove had real involvement from companies in the USA in this project
Why is the collaboration between AICPA and CIMA significantMost important is the Chartered Global Management Accountant (CGMA) designation that AICPA and CIMA both issue for qualified management accountants Wersquoll have a common curriculum and common examination which will begin on January 1 which gives us a global designation for management accountants wherever they are around the world There are plenty of accounting bodies who claim to be global but actually this is the only
genuinely global designation This is because it has the only one with a North American participation in it So we can say that the CGMA will be just as well-recognised in the USA as it is in Dubai
With the global landscape in mind how do you create an even objective that applies to localities which may prove widely differentialThe landscapes are different but businesses have common needs wherever they may be What wersquove particularly seen since the global financial crisis is that companies are actively looking to build management accountant capability to build that capacity within their organisations They donrsquot want to have a poor quality of information that lacks insight being used in their businesses So they see management accountants can bring solutions to that As a result of all the work wersquove done with companies who participated in the syllabus wersquove also put together a series of what we call Global Accounting Principles This is a series of principles which describes what good management accounting looks like and what top quality management accounting in a company should be producing This then
ldquoCompanies are actively looking to build man-agement accountant capability to build that capacity within their organisa-tionsrdquo
36 wwwthecfomecom
worked on acknowledges the skill set needed by professionals throughout their career Therersquos a base level of competence that is needed but beyond that there is more There is business acumen the ability to communicate and influence and finally the ability to lead So you start off enhancing your raw technical accounting skills Then you need to place that into the context of the business that you are in Then as you move forward and as you rise to become the CFO yoursquoll need the others You have to learn how to present your work in a way that can influence and make an impact in the business The final piece is the ability to lead projects and other functions and to a great extent lead the board of directors Thatrsquos how the context works itrsquos not just about technical knowledge
How do you find that CFOs in the GCC region are responding to this programmeThe CFO has a real challenge on his hands now In 1975 80 per cent of corporate value is showing on the balance sheet By 2010 that dropped to less than 20 per cent Your traditional PampL reports no longer reflect the value of the business or how the business drives value
All things that should be of interest to investors is missing With things like the integrated report initiative wersquore starting to see the other dimensions that add value to business For CFOs thatrsquos all about strategic thinking and considering the long-term objectives Being articulate in implementing those strategies keeping in mind the risks and opportunities that the business faces We are also nowadays witnessing a whole new world of transparency around that
Are there electronic aspects to CIMArsquos advancing approachThe interactive case study simulates a real working situation and it tests how they can apply their knowledge in real life situations Theyrsquoll be presented with a scenario a few weeks before they take the exam so they can prepare for it They then go to an exam centre where they are asked questions about how they will deal with a certain situation in the real world Theyrsquoll get an email from the CFO giving them a certain task for a particular period of time We want to make it as close to reality as possible so students taking the exam will be assessing situations based on real life scenarios
ldquoThe CFO has a real challenge on his hands now as traditional PampL reports no longer reflect the value of the businessand [the role] must focus on strategic thinking and considering long-term objectivesrdquo
218KCIMA members worldwide
STAT FACTS
CIMA INTERVIEW
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
38
ERPANALyTICS
wwwthecfomecom
Faster more nuanced IT solutions are available to the modern day CFO Whilst Chief Financial Officers are called upon to analyse data across a number of spectrums the digital tools on hand are likewise being expanded to aid in focusing more squarely on the bottom line
ExCELLING WITH ERP
The global landscape is today firmly entrenched within a digital model As a result CFOs whom are called upon to take a larger role in a number of variables must also increase their abilities with respect to utilising the many upsides which tech innovations offer a business When surveyed about their most pressing concerns CFOs generally return a varying collection of responses Revenue growth regulatory changes and meeting quarterly goals are among the chief concerns Virtually every obstacle can be hurdled by way of maintaining the order of financial reporting and data which has long been
synonymous with the Chief Financial Officerrsquos remit A widening berth of ERP solutions is making this data all the easier to come by
Despite how sophisticated the market is today it was not long ago that ERP departments once spent days processing business reports
Said Rohan Tejura Assistant Vice President Focus Softnet ldquoTraditional ERP systems were solely data repositories Moreover these repositories werenrsquot real time and were incredibly dependent upon locational connectivity With the emergence of smarter development platforms more versatile devices and
39
ERPANALyTICS
wwwthecfomecom
more intuitive designs of system development the overall experience of the ERP now extends from data warehousing to reporting analysis trend mapping business intelligence and governance oriented capabilities Yet these solutions amazingly execute all of these deliverables via portable handheld devices and through cloud environmentsrdquo
New generation ERP systems must now be on the go whilst including up to the minute analytics to provide deeper insight into the business ERP Analytics tools use historical data captured from various business functions to provide valuable information for efficiency and business performance each incredibly priceless to a leading CFO
Finesse is an ERP provider which is continually addressing the transformation of output which the ERP industry is offering the equally transitioning role of CFO
ldquoWe provide end-to-end business management solutions to SMEs and Enterprises Our approach to ERP is much more than providing simply an operational management systemrdquo said Finesse COO Sunil Paul
ldquoWe believe that todayrsquos businesses need much more than integrating sales with inventory accounting and manufacturing but also to have seamless integration with all their sales channels including the point of sales ecommerce and inbound sales solutionsrdquo
A major im-petus of the ERP-cen-tered growth is based on how effec-tive com-prehensive real-time data proves to be for the CFO
40 wwwthecfomecom
before thereby creating new global benchmarks for overall economic growth
Microsoft Arabia CFO Sadrul Khan offered insight into just how far the knowledge economy has influenced regional financial leadership by explaining how one of the most prioritised technologies by CFOs in the region is social platform monitoring
ldquoOne of the five technology choices that CFOs tend to prioritise in boosting productivity efficiencies and faster decision making in the fast paced business environment which include a social platform that monitors trends customer sentiments and helps process mashable data for customer centricity and business growthrdquo said Khan
A major impetus of the ERP-centered growth is based on how effective comprehensive real-time data proves to be for the CFO Whether employed as on-premise ERP software-as-a-service or cloud-based solutions a nearly identical ethos is being utilised Allowing the CFO to quickly access the performance of all facets of a business is paying dividends in the boardroom a reality which is showing itself increasingly in the Middle East
The technologically-charged relationship between ERP solutions and the regionrsquos CFOs is expanding and as a result has catalysed what many see as GCC economic performance outstripping that of many economies outside of the region as a result
In order to compete in todayrsquos fiercely competitive environment organisations need to think both innovatively and out of the box They require more insights about their business and their customers and need to ensure that they are able to meet the expectations of their internal as well as external stakeholders Enormous amounts of data both structured and unstructured is continuously being generated within the internal and external systems of the organisation which if analysed can be of immense value both to the business and subsequently the stakeholders associated with the organisation
With the the era of CFOs labouring over spreadsheets now in the past given how many business frontiers have become so dependent on mobile options such as the cloud more and more tech companies are providing the regionrsquos CFOs with information technology that converts traditional internal and external data into rich visual insights This information is then used for faster decision making and provides the ability for a CFO to assess manage and control risks Regional CFOs have grown enabled to drive corporate strategy accordingly demonstrating how the knowledge economy is now in full force amongst the Gulfrsquos corporates
Given that advanced IT has now become a regular CFO tool the regionrsquos CFOs are subsequently making faster decisions and driving internal growth models with greater speed and agility than ever
Tech companies are providing the regionrsquos CFOs with information technology that converts traditional internal and external data into rich visual insights
ERPANALyTICS
Donrsquot discoveritrsquos counterfeittoner afteritrsquos too lateOriginal HP Toner works first time every time1 unlike cheap toners which fail over half of the people who try it2 Non-HP toner can compromise your printerrsquos performance to give you streaked blotchy or faded prints Only original HP Toner cartridges deliver unmatched quality for the most professional-looking prints 100 of the time1
1 A QualityLogic 2010 study commissioned by HP comparing original HP LaserJet Monochrome print cartridges with nine brands of non-HP toner cartridges available in Europe Middle East and Africa for the HP LaserJet P1505 and P4015 printers HP 36A and 64A For details see wwwqualitylogiccomEMEAmonotonertestpdf 2 From a 2012 EMEA Lyra Research study commissioned by HP Results based on a total of 1050 HP Color LaserJet users who have used both original HP and non-HP toner cartridges of whom 552 experienced problems with non-HP cartridges
copy 2014 Hewlett-Packard Development Company LP
42
Private Equity ANALyTICS
wwwthecfomecom
The rise of PE-backed acquisitions is forcing CFOs to develop an entirely new set of skills
THE PRIvATE EQUITy CFO
The CFOrsquos utility in the world of private equity is without question on the rise The once-held belief of the CFO existing solely as the ldquoaccounting guyrdquo has been abandoned Over the last 20 years the role of CFO has become more demanding - requiring not just finance and accounting acumen but also a financial literacy in corporate planning risk management MampA assetliability management and regulation This evolution has been driven by a number of
key factors Yet the private equity industry which is now reshaping the corporate landscape through active ownership is by far the most significant factor driving change within the role of the CFO
PE-backed buyers today represent a larger percentage of overall buyers in the corporate acquisition marketplace than ever before Data provider Prequin estimates that as of June 2014 the capital raised by PE funds that
has not yet been deployed amounts to $114 trillion globally The result of this ldquodry powderrdquo is that a vast quantity of corporate acquisitions in the coming years will be undertaken by the private equity industry As such CFOs will be more accountable to demanding ldquosmart moneyrdquo shareholders than at any point in recent history Budgeting accounting and financial reporting will no longer exist as sole priorities but as a core competency among a
ldquoBy effec-tively using real-time data CFOs can create a dynamic process that proac-tively drives performance account-ability and value crea-tionrdquo
By Aaron Heidari
43
Private Equity ANALyTICS
wwwthecfomecom
robust set of complimentary and required skills Most of all the bar for CFOs is rising as PE investors will only accept above-average performance from their management teams
CFOs were once more reactive in function setting budgets based on other executivesrsquo plans and managing the flow of reporting to shareholders on a quarterly and yearly basis Today CFOs are required to become proactive managers of their respective businesses alongside their C-suite compatriots using a granular data-driven approach to aggregate analyse implement and report on every aspect of a companyrsquos operations
An important tool to drive this value creation process are KPIs Yet KPI structures including both aggregation and output are generally not up to the standards required of private equity investors prior to an investment being made
ldquoThe benefits of using KPIs and monthly reporting packages are significant By effectively using real-time data that is actionable and by partnering with functional area leaders within the organisation company CFOs can create a dynamic process that proactively drives performance accountability and value creationrdquo said Amanda Robinson Vice President of Accordion International in Dubai a consulting firm which is comprised of former private equity and investment banking professionals who
MENA region Cumulative Funds Under Management Since 2008
Source Zawya private Equity Monitor
19 636 20 36321 586
22 64323 506 24 250
-
5000
10000
15000
20000
25000
2008 2009 2010 2011 2012 2013
Cu
mu
lati
ve f
un
ds
($ m
)
$15mAverage MENA PE investment size in lsquo13
50Percentage of investment in IT and energy sectors
STAT FACTS
44 wwwthecfomecom
work with companies to deliver cost-effective project execution services
Active shareholders whose money it is being spent will typically require a data-driven justification before approving any budgets capital expenditures or new acquisitions Furthermore in many private equity backed companies the use of debt and the matching of shorter-term bank financing with longer-term investments will only be considered after a robust analysis is conducted to understand the companyrsquos ability to service that debt in the future This evaluation is not simply to identify revenues expenses and profits Itrsquos about drilling down into every transaction and rooting out data processing and reporting At least that is the expectation
The most valuable CFOs are those who have the ability not just to scrutinise and understand the financials but all also possess a wider grasp of the underlying data which truly comprise the business As an investor who has just acquired a stake in a new business I want a CFO who can manage the transition and stay ahead of my expectations Most of all a CFO should impress upon the companyrsquos shareholders a new way of doing business The first 100 days of an acquisition are said to be the most important During this period the CFOrsquos worth will be established when the new financial plan is due and the platform for the next five years of growth is presented
A CFO should man-age the tran-sition stay ahead of expectations and impress upon the companyrsquos shareholders a new way of doing business
Investment Volume By Sector Since 2006
Investment Volume By Sector in 2013
Source Zawya private Equity Monitor
1
3
30
17
3
28
3
4
6
4
6
5
17
9
9
6
9
5
8
6
6
2
3
10
Education
Education
Information Technology
Information Technology
Other
Other
Telecoms
Telecoms
Media
Media
Transport
Transport
Oil amp Gas
Oil amp Gas
Healthcare
Healthcare
Consumer goods
Consumer goods
Food amp Beverages
Food amp Beverages
Leisure
Leisure
Manufacturing
Manufacturing
ANALyTICS
Private Equity
2000857 NBAD ratibi mag ad 200x268 Finalindd 1 92514 1017 AM
46 wwwthecfomecom
THE FUTURE OFACCOUNTING EDUCATIONAddRESSINg THECOMpETENCY CRISIS
Have you ever stopped to think about how the accounting profession has changed since you graduated from college Recent graduates can answer this question by reflecting on the last two or three years whereas for other more seasoned professionals answering this question requires a bit more thought and memory searching Indeed we can all think of ways that the field of accounting is remarkably different today from the one we likely envisioned during our college daysmdashregardless of which decade we each donned our cap and gown This gradual transformation of the accounting profession leads to two important questions related to competencies bull Which competencies are important for success inaccounting todaybull Were these competencies consciously developed as partof your accounting degree programme
We suspect that more than a few of you would answer ldquonordquo to the second question Put another way our profession may be facingmdashmore so than at any time in the pastmdasha ldquocompetency crisisrdquo that is a gap between the competencies needed for professional success and those taught in our college classrooms today We propose a three-pronged strategy or ldquogame planrdquo for overcoming this competency crisis and in turn better preparing accounting graduates for the challenging world they will face First all of us accountants need to understand the changes that have already taken place in our profession and perhaps more importantly anticipate the changes that are on the horizon Second we need to educate ourselves and future generations of accountants so that as a collective group we can deliver the expanding set of competencies demanded in todayrsquos dynamic organisational
contexts Third as professional organisations and as individuals we need to think beyond ourselves by asking How can I (or we) help the accounting profession address the competency crisis
A Shift Toward Integrated ThinkingMany articles and white papers have been written that describe in detail the changes that have occurred in our profession over the last few decades but for our purposes wersquod like to distill these changes down to one crucial idea How does the accounting function add value to an organisation Accountants have evolved from support-oriented personnel who hand off information to others who actually make decisions into business partners who ldquohave a seat at the tablerdquo with managers
By peter C Brewer James E Sorensen CpA CgMA and david E Stout
47wwwthecfomecom
1048576bull What regulatory risks mayaccompany the proposal
1048576bull What social and environmentalfactors will we face if for example the proposal requires investing in overseas operations
1048576bull What types of employeeresistance may arise if we implement the proposal and how will we overcome the root causes of any such resistance
1048576bull Can and how should we valuefuture options associated with the proposal such as expanding or contracting the investment over time as new information becomes available
1048576bull Should we use debt or equity tofund the proposal
In short accountants have evolved to become integrated thinkers who enable EPM by partnering with managers across the organisation to add value Yet as EPM has gradually become the centrepiece of our professionrsquos value proposition accounting education hasnrsquot done enough to embrace it To overcome this gap wersquod like to further suggest that the concepts of competency integration and EPM need to come ldquofront and centrerdquo as we move forward in educating the next generation of successful accounting practitioners
Accounting Education No Longer on the SidelinesRecently a task force consisting of members of IMAreg (Institute of Management Accountants) and members of the Management Accounting Section (MAS) of the American Accounting Association (AAA) addressed the competency issue How should accounting education change fundamentally to help close the competencies gap The efforts of the task force led to
cash flows and how to apply discounted cash flow (DCF) decision models such as net present value (NPV) is of foundationalmdashsome might say critical mdash importance But integrated thinkers draw on an understanding of organisational strategy coupled with a broader set of competencies (beyond what might be considered technical or foundational knowledge) when making these types of decisions For example they consider how behavioural issues may influence the capital investment decision-making process Perhaps the financial estimates contained in the NPV analysis are too optimistic because the manager who prepared the numbers has a vested interest in seeing the project approved Decision makers also need to consider issues such as leasing vs buying a capital asset and the corresponding impacts on the financial statements and ratios that are tracked by investors and lenders What nonfinancial factors are associated with the proposed investment Add in the tax consequences of capital investment decisions coupled with the need to maintain internal control over any new business processes tied to these decisions and the need to think in an integrated fashion across a variety of accounting competencies becomes apparent
Furthermore becoming a true business partner with managers across the organisation requires more than simply integrating various accounting competencies It also means thinking like a business manager or a chief executive officer (CEO) Returning to the capital budgeting example an integrated thinker will ask questions such as
across the organisation Together they formulate and plan strategies then participate in collaborative decision-making processes that execute those strategies in a manner that adds stakeholder value Said another way accountants have evolved to become enterprise performance managers This shift in our orientation from a support function to an enterprise performance management (EPM) role has enormous implications for defining the determinants of success within our profession the most important of which involves becoming collaborators and ldquointegrated thinkersrdquo Take for example a common but important business decision process capital investment analysis Certainly technical knowledge regarding how to estimate relevant after-tax
48 wwwthecfomecom
expanding capital budgeting discussions to include financial statement impacts tax consequences and internal control issues integrates topical coverage across the External Reporting and Analysis Taxation Compliance and Planning and Assurance and Internal Control competencies shown in Figure 1
Third accounting curricula can incorporate a broader set of management competencies For example evaluating capital investment proposals from the perspectives of change management (Leadership) social and environmental issues (Ethics and Social Responsibility) regulatory concerns (Governance Risk and Compliance) and capital structure (Additional Core Business Competencies) brings a CEOrsquos perspective to the decision-making process
Fourth accounting curricula should include foundational competencies such as proficiency with spreadsheets and written and oral communication In the context of capital budgeting this may include asking students to use Microsoft Excel to perform a sensitivity analysis and then to present their findings to the entire class
Working to Fix the ProblemAt this point although you may agree with us that therersquos a competency crisis within the accounting profession you may be wondering What does this have to do with me What can my organisation do to help address this so-called competency crisis The answer a lot Practice partners and academic partners can help the accounting profession overcome the competency crisis That said letrsquos take a closer look at the role of practice partners first
improvement) and accounting competencies (external reporting and analysis planning analysis and control taxation compliance and planning information systems assurance and internal control and professional values ethics and attitudes) Of critical importance to the framework is the assumption that the set of competencies contained in Figure 1 would be developed and integrated over time through a blend of formal education (including continuing education) training and job experience
What levels of integrationmdashon the road to developing integrated thinkers in accountingmdashare possible First accounting educators can integrate within a single accounting competency So referring back to our capital budgeting discussion teaching computational models such as NPV analysis coupled with a review of various behavioural issues associated with capital investment decisions would be an example of integrating within the Planning Analysis and Control competency listed in Figure 1
Second professors can integrate across accounting competencies For example
a recently published article that contains a proposed framework for accounting education reproduced here as Figure 1 The framework is general in the sense that itrsquos meant to apply to all accounting students not subgroups based on career specialisation such as tax assurance services corporate finance and the like Itrsquos based on the idea that accounting educators can better prepare students to deliver our professionrsquos EPM value proposition through integrated competency-oriented curricula (For more see ldquoFocusing Accounting Curricula on Studentsrsquo Long-Run Careers Recommendations for an Integrated Competency-Based Framework for Accounting Educationrdquo in the May 2014 edition of Issues in Accounting Education)
A glance at Figure 1 reveals three levels of competencies foundational competencies (communication ability to leverage technology and analytical thinking and problem solving among others) broad management competencies (including leadership ethics and social responsibility and process management and
Proposed Competencies-based Framework for Accounting Education
FOUNDATIONALCOMPETENCIES
ACCOUNTING COMPETENCIES
BROAD MANAGEMENT COMPETENCIES
leadership
ExternalReportingamp Analysis
PlanningAnalysis
amp Control
TaxationComplianceamp Planning
InformationSystems
Assuranceamp InternalControl
ProfessionalValues Ethics
amp Attitudes
Communication
Quantitative
Interpersonal
Technological
Analytical Thinking ampProblem Solving
Ethics amp SocialResponsibility
ProcessManagement ampImprovement
GovernanceRisk amp
Compliance
AdditionalCore BusinessCompetencies
Although you may agree with us that therersquos a competency crisis within the account-ing profes-sion you may bewondering What does this haveto do with me
A practice partner should be or become a CMAreg (Certified Management Accountant) maintain professional certification by completing required Continuing Professional Education (CPE) hours and regularly read the IMA publications Strategic Finance and Management Accounting Quarterly
In addition there are a number of excellent resources that deal with topics covered in this article and that IMA makes available to its members
Strategic Finance PowerPacks(wwwimanetorg SFPowerPacks) These are resources focused on contemporary topics similar to those discussed earlier Current offerings include Risk Management Strategic Planning IT Skills amp Software and Internal Controls Each PowerPack includes a combination of resources such as research studies articles and links to webinars
Statements on Management Accounting (SMAs)(wwwimanetorgresources and_publicationsresearch_ studies_resourcesstatements on_management_accounting aspx) SMAs represent monographs classified into one of the following six categories Leadership Strategies and Ethics Technology Enablement Strategic Cost Management Business Performance Management Finance Governance Risk and Compliance and the Practice of Management Accounting Multiple items are available within each category For example the Practice of Management Accounting category includes (among other items)
49wwwthecfomecom
the Definition of Management Accounting and Implementing Shared Service Centres
Research Studies (wwwimanetorgresources_and_publicationsResearch_Studies_and_ResourcesAll_reportsaspx) The ldquoThoughtLeadershiprdquo section of IMArsquos website includes research covering a broad range of issues classified into seven categories For example under the ldquoGlobal Business Environmentrdquo category the following two research reports are available ldquoKey Differences Between IFRS and US GAAP Impact on Financial Reportingrdquo and ldquoCosting Methodologies and Cost Management Practices in the Peoplersquos Republic of Chinardquo
IMA Leadership Academy (www imanetorgprograms_events leadership_academyaspx) As described on the IMA website this programme is designed to assess a memberrsquos leadership status enhance that individualrsquos skills (principally through monthly webinars) and recognise leadership achievements These benefits are free to members
How You Can Make a Bigger Impact In addition to attending local regional and national IMA meetings consider inviting a small group of students to each chapter meeting This could be a wonderful (and relatively low-cost) option for mentoring aspiring accountants and finance professionals providing networking opportunities and introducing students to cutting-edge issues regarding the practice of management accounting Joining a university accounting
advisory group may be another way to influence the development of EPM in that institutionrsquos curriculum design
Other methods to enhance EPM in your organisation include (1) forming user groups within your company your local IMA chapter or your industry to review and share EPM experiences (2) encouraging advancement in the firm to be linked to EPM proficiency (3) focusing your companyrsquos recruiting efforts on candidates who display a background in andor understanding of EPM and (4) organising cross training within your company to enhance a mutual understanding of each otherrsquos respective roles
Finally visit the Competency CrisisTM website (http competencycrisisorg) set up by IMA to unite the accounting and finance constituencies professionals students employers academics and professorsmdashand explore competency issues through the lens of each stakeholder group The site is designed to ldquoencourage a discourse spur action and create a community dedicated to resolving the serious crisis of competency present in the professionrdquo Special sections of the website are devoted to educators students and employers professionals
Our Partners in Education Much like a practice partner an academic partner should be or become a CMA maintain professional accreditation by completing CPE hours and regularly read IMArsquos publications
Academic members of IMA can pursue and actively promote the CMA programme at their respective institutions
50 wwwthecfomecom
IMArsquos website contains helpful resources including an exam content overview content specification outlines for each of the two parts of the CMA exam and learning outcome statements The current exam covers some of the professional competencies represented in Figure 1 A summary of changes to exam content which will be effective in January 2015 is provided on the IMA website in News amp Media Relations which is located under ldquoAbout IMArdquo (See the press release dated March 24 2014) Other helpful resources include ldquoICMA Announces CMA Exam Content Changesrdquo in the April 2014 issue of Strategic Finance as well as ldquoManagement Accounting Career Readiness Shaping YOUR Curriculumrdquo
These forthcoming changes are based on the most recent IMA study of the knowledge and skills needed by management accountants from the view of CFOs controllers and other accountingfinance professionals from around the world
Also consider taking a group of your students to the IMA Student Leadership Conference held each November The Conference provides excellent networking opportunities for you your students and practicing professionals Students can learn firsthand from Conference presenters the challenges and opportunities facing finance and accounting professionals today
Moreover if your institution doesnrsquot currently have an IMA Student Chapter consider forming one One of the authors of this article David Stout reinstituted the student chapter at his school (Youngstown State University) after travelling with a group of his students to the IMA
Student Leadership Conference in Cleveland Ohio Through an IMA Student Chapter on campus students are able to work closely with a sponsoring local IMA chapter and bring to campus speakers who are experts in a wide range of topics including those discussed earlier in this article Each year student chapters compete for an Award of Excellence (AOE) and recognition as an Outstanding Student Chapter In addition IMA student members are able to engage in networking activities leadership training mentoring and community service programmesmdashall through their local chapter
You also might consider volunteering to serve as a Campus Advocate In this role yoursquoll represent IMA in all major matters of interest to your students (scholarship opportunities starting a student chapter mentoring and the like) and to your institution (for example leveraging IMA resources to advance the relevancy of the accounting curriculum use of educational case studies published in the IMA Educational Case Journal and access to IMArsquos ethics curriculum)
And if you havenrsquot yet done this ask IMA to endorse your accounting programme (information is available at www imanetorgeducator_resources indexaspx) This programme is designed to identify business curricula that meet the quality educational standards required to prepare students to earn the CMA designation Endorsement is based on an analysis of the curriculum and topics covered on the two-part CMA exam Currently 12 programmes have been endorsed
Finally if your school has an IMA Student Chapter consider participating in the annual IMA Student Case Competition where students are asked to propose a solution to a real world problem (Cases are solicited each year by Raef Lawson IMA VP of Research and Policy and IMA Professor in-Residence) Finalists make their presentations at IMArsquos Annual Conference amp Exposition before a set of judges consisting of accounting faculty members and practitioners Each year a new case is published in the August issue of Strategic Finance for students to use for that yearrsquos competition
Working TogetherIn this article we have summarised the changes that have affected the accounting profession and provided a competencies-based framework for guiding accounting educators in responding productively to those changes As a management accountant you know that implementing change in any organisation let alone within an entire profession never comes easily To be successful in overcoming our professionrsquos competency crisis IMArsquos practice and academic partners will need to assume leadership roles in defining enterprise performance management as the cornerstone of the accounting professionrsquos value proposition
This article was orginally published in the August 2014 issue of Strategic Finance It appears here with the permission of The Association of Accountants and financial professionals in Business
We need to educate ourselvesand future generations of account-ants so that as a collec-tive group we can deliver theexpanding set of com-petenciesdemanded in todayrsquos dynamicorgani-sational contexts
THE POWERFUL AND THRIFTY OFFICE ALL-ROUNDERS
The new ECOSYS M3560idn series will astound you With their print speeds of up to 60 pages per minute they are among the most productive A4 bw multifunctionals on the market We nevertheless managed to keep their ecological footprint and total cost of ownership impressively low by using our well-known ECOSYS technology and equipping the devices with our renowned long-life components The result Not only less waste and lower maintenance costs but also less hassle for you and all your colleagues You will also greatly appreciate the many customisation possibilities of the devices equipped with KYOCERArsquos open solution platform HyPAStrade as it allows you to tailor the device to your needs So yes we are proud of our new range of MFPs and can hardly wait to share their numerous benefits with you
For more information please contactKYOCERA Document Solutions Middle East | PB Box 500817 DubaiUAE | Tel +9714 4330 412 | Fax +9714 4231 944KYOCERA Document Solutions Europe BV - wwwkyoceradocumentsolutionseuKYOCERA Document Solutions Inc - wwwkyoceradocumentsolutionscom
52
ACCAINTERVIEW
wwwthecfomecom
GLOBAL By ASSOCIATION
across the region from our key employers and learning provider partners to our active and growing student and member base I want to understand their challenges and priorities and how ACCA can work with them to help support the economic success of the region
What can a CFO gain from working with ACCAThe ACCA qualification is about complete finance professionals For CFOs it brings the technical knowledge vital to business success complemented with the strategic management skills and ethical competence crucial to an organisationrsquos success As an organization ACCA in the UAE brings CFOs access to that local and global network of peers and expertise along with our leading research and insights that help them to keep up to date on the issues that matter most
Are there any initiatives in place to leverage the recently announced partnership with AAA
How are the ACCArsquos many years of activity being applied to the Middle EastACCA has now had a presence in the UAE for well over a decade During that time we have established strong relationships across the Middle East epitomised by the recent signing of our Strategic Partnership with AAA As a national body in choosing to partner with ACCA they recognised the local and global perspective we bring We are continuing to work with students members and employers across the Middle East to build their networks knowledge and business success through events research and insights and access to a growing number of online resources
Which initial priorities are among your key aims upon joining the organisationrsquos efforts in the UAEIn the first few months I hope to build on the success of the team in the UAE My priority will be to meet as many of our key stakeholders
The Association for Chartered Certified Accountants (ACCA) provides its services across a number of international borders The recent announcement of Lindsay Degouve de Nuncques as the new head of the Associationrsquos UAE chapter further exemplifies the ACCArsquos reach based on her previous work in the UK Nuncques shares here what she brings to the Middle East and just how globalisation has driven her ascent
53
ACCAINTERVIEW
wwwthecfomecom
The strategic partnership with AAA is the first of its kind in the region Students who complete the UAECA qualification will be entitled to both the AAA and ACCA designations and ACCA members in the UAE will also be eligible to apply for AAA membership This is a very exciting development in the market and together AAA and ACCA will be working to deliver maximum value to all our stakeholders from this partnership As we launch the UAECA qualification this activity will start in earnest
Which key industries will you be spotlighting in the Middle East in the months aheadOur experience of working across all sectors and levels of organisations globally gives ACCA a unique insight into all types of industries We will continue to be working with employers across the spectrum in the months ahead to help them gain the insight and make the connections that drive businesses to succeed at whatever they do
ldquoThe ACCA qualification is about complete finance professionals For CFOs it brings the technical knowledge vital to business success complemented with the strategic management skillsrdquo
54
Islamic FinanceMARKET OUTLOOK
wwwthecfomecom
In its 10th instalment the Forum is hosted in Dubai as a direct result of the UAErsquos increasing importance in the world of global Islamic finance
THE WORLD ISLAmIC ECONOmIC FORUm LANDS IN DUBAI
In Dubairsquos continued quest for leading the world across a range of spectrums the Emirate accelerated its desire to become the worldrsquos leading hub for Islamic finance by hosting the 10th installment of the World Islamic Economic Forum (WIEF) Delegates from dozens of countries attended to take part in a three-day event held at Madinat Jumeirah which rests alongside Dubairsquos gleaming coastline Held under the patronage of His Highness Sheikh Mohammed Bin Rashid Al Maktoum the
Vice President and Prime Minister of the UAE and Ruler of Dubai key speakers included The Honorary Dr Zeti Akhtar Aziz Governor of the Central Bank of Malaysia HE Kairat Kelimbetov Governor of the National Bank of Kazakhstan The Honorary Datorsquo Sri Mohd Najib Tun Abdul Razal Prime Minister of Malaysia and HE Xavier Bettel Prime Minister of the Grand Duchy of Luxembourg
Launched in 2006 in Malaysia WIEF has grown in tandem with the increased
Delegates from dozens of countries attended WIEF to take part in the three-day event
sophistication and reach of Islamic finance After a successful event in London in 2013 amidst increased interest in Islamic finance across Europe WIEF relocated to Dubai where the local business structure is keen to host halal finance
Said Hamad Buamim President and CEO Dubai Chamber of Commerce and Industry co-organisers of the event ldquo[The forum] is the start of a new chapter of cooperation between Dubai and the world as part of
55
Islamic FinanceMARKET OUTLOOK
wwwthecfomecom
Dubai Capital of Islamic Economy visionhellipestablishing a unified regulatory authority to provide the framework for standards across halal industries will significantly accelerate growth Likewise we need to see increased cooperation and partnership between the public and private sectors This is already happening with great success here in Dubairdquo
The order of global cooperation needed to facilitate growth across the Islamic finance world was more than apparent at WIEF based on how many differing nations were represented at the event The exhibitorrsquos hall was populated with a number of key Malaysian stands representative of the Southeast Asianrsquos ranking as the global leader in Islamic finance Also present were companies from Saudi Arabia also a key locality in the worldrsquos halal industries An interesting yet prescient presence was of attendees from South Korea a nation which is eager to participate in Islamic finance and will be hosting the WIEF Pyeongchang Roundtable in December 2014
ldquoGangwon is a province located in Korea which is very interested in new business opportunities Wersquove realised the strength of the Islamic economy and have come here with many different companies The first type is based in real estate investment We also have companies which want to export their products to the Islamic economy based on their halal qualities And Gangwon will also be hosting the Winter
ldquoKorea is very interested in the strength of the Islamic economy and wants to export its products based on their halal qualitiesrdquo
56 wwwthecfomecom
$247trillionProjected value of halal products industry in lsquo18
125Muslim percentage of global tourism expenditure
STAT FACTSOlympics in 2018 and are presently seeking investments for this as wellrdquo said Seong-hun Kim a member of Gangwon Province Governmentrsquos Export Support Team
Dubai proved to be an excellent place for the event considering how well the UAE is able to so regularly corral international cooperation A key sign of this was witnessed recently when Luxembourg now considered the third most important base for Islamic finance globally opened a finance office in Dubai International Finance Centre The European nation also opened a euro200 sukuk earlier this year which was quickly oversubscribed
The prime minister of Luxembourg offered the WIEF audience a riveting speech which detailed just how international the Forum has become whilst encouraging more of the world to support the growing influence of Islamic finance
Said Bettel ldquoWe need to innovate more economic partnerships for growth We sometimes need to reengineer relationships but also have to make sure these relationships remain sustainable Growth in one country also brings growth to others as long as this is guided by free market initiatives Free trade and free flow of capital combined with innovation leads to prosperity We have all gathered here in Dubai to explore the future of Islamic finance and Luxembourg is also a pioneer of Islamic finance in Europe The Islamic financial sector has a major role to play in continued global growthrdquo
The Islamic Corporation for the Development of the Private Sector (ICD) is based in the Kingdom of Saudi Arabia where it manages an international fund worth $2 billion half of which is available for subscription With shareholders in more than 50 countries and a sovereign sukuk fund recently launched in West Africa the ICDrsquos CEO Khaled M Al Aboodi attended WIEF this year excited to participate in the global event
How does the ICD approach its attendance at the World Islamic Economic ForumI think the Forum is one of the best places for discussing the financial issues of the OEC member countries It has been around for ten years and has grown to become a very important platform for discussion Wersquore here to attend and listen but also to network Itrsquos a great networking platform and a place to share views whilst letting everyone know what we have to offer
How has Islamic finance changed over the yearsOf course itrsquos growing in a large scale Some of it actually needs more support particularly with respect to regulatory frameworks Wersquore trying to partner with many international organisations like the IMF to try to provide support to countries to adapt regulation for Islamic finance Sukuk issuance is one of the biggest issues that needs to be addressed because there is a huge amount of liquidity in this arena Due to issues related to regulation sukuk issuance can be costly But with the regulation we are confident it will be on a level playing field with other forms of finance Compliance is a major area where more work can be done The Forum started with a roundtable on sukuk which shows how helpful WIEF has been over the years
What type of work does ICD do internationallyICD helped the government of Senegal to issue the first sovereign sukuk This was successfully issued last summer Progressing in this manner is something wersquod like to see continue across West Africa in order to utilise its resources with aiding development in the region in mind
QampA WITH KHALED M AL ABOODI CEO OF ICD
Islamic FinanceMARKET OUTLOOK
OFFICIAL SPONSORS
ENDORSED BY OFFICIAL HOST OFFICIAL
COMMUNICATIONS PARTNER
MEYDAN HOTEL DUBAI UAE19 - 20 NOVEMBER 2014
WOMENOMICSthe next emerging market
TAKE PART in making change happen UNITE with business and through leaders from across the globe
PARTICIPATE to the expansion of a modern and inclusive economy
58
Gautam PradhanINTERVIEW
wwwthecfomecom
SUCCESS BEyOND BOUNDARIES
in other management roles such as strategic decision making mentoring and leading efficiency and productivity across a range of other departments and functions as well as a being a catalyst in ensuring that the boardrsquos vision for the organisation is achieved
A significant percentage of NMDCrsquos shares are owned publicly Does the CFO play a role in balancing the interests of the shareholdersAs a CFO balancing the shareholdersrsquo interests is definitely part of my responsibility In order to achieve this goal there needs to be a careful evaluation of each decision while keeping the short-term and long-term goals of the company in mind At NMDC we actively implement a system where we utilise a balance scorecard as a method of ensuring that all our primary objectives are met yet at the same time continuously enhance our relationships with our shareholders
NMDC has completed various projects across the Emirates Are there plans to move abroadAs NMDC moves towards becoming an international player our strategic expansion plans are focused in areas within the GCC region and India In line with this strategy we opened
How has a company with such a unique set of deliverables grown so consistently over the yearsOur organisation strongly believes that the core to our strength is the people process and equipment A strategic decision led by our Board of Directors and the senior management has been implemented that required us to consistently invest in these three aspects to help expand our business beyond the territorial boundaries of the UAE and at the same time enhance what we can offer which is relevant to these segments We attribute our success to the efforts which every employee contributes We also strongly believe in the ldquoWe can make it happenrdquo principle The management raises the index of performance while setting SMART objectives within the organisation and encouraging the employees to achieve them
How has your position as the CFO changed over NMDCrsquos 35 years of operationAs the market evolves and business dynamics change my role as the CFO has become complex and more challenging A few years back I was mainly focused on bookkeeping accounting and other financial responsibilities such as arranging bank facilities But moving forward I became more involved
The UAE is progressively becoming a hub for world-class infrastructure The country has duly impressed the rest of the globe with noteworthy land developments showcased across the emirates Among the remarkable landscapes found in Abu Dhabi are the Corniche Beach Yas Island and Sir Baniyas Island Behind these successful projects is NMDC the dredging division of Abu Dhabi National Oil Company (ADNOC)
In an interview with CFO Magazine Gautam Pradhan Chief Financial Officer NMDC shares an exclusive look into the companyrsquos international blueprint for growth and his dynamic role as a strategic leader of one of the best in dredging and marine construction in the Middle East
59
Gautam PradhanINTERVIEW
wwwthecfomecom
branches in Qatar Bahrain Oman and India This has paid rich dividends recently as projects of strategic importance are bagged in Qatar and Bahrain Furthermore NMDC (UAE) has recently played a key role as a leader of an international consortium with Royal Boskalis Westminister (Netherlands) and Jan De Nul Group (Belgium) for the awarding of the Suez Canal Dredging project in Egypt Moving forward we have devised a strategic approach that will enable us to play a key role in the development of Indiarsquos marine infrastructure
What are the global strategies that are part of the CFOrsquos responsibilitiesAs CFO understanding the macro economic scenario risk analysis and mitigating those risks are all a part of my responsibilities I also have to have a proper comprehension
ldquoA few years back I was mainly focused on financial responsibilities moving forward I became more involved in strategic decision making mentoring and leading productivityrdquo
Gautam PradhanINTERVIEW
60 wwwthecfomecom
of the challenges faced by the company in terms of dealing with foreign contracts direct and indirect taxes and hedging and managing the integration process These are essential to enhance shareholders wealth and mitigate undue risk
How significant is accountancy for NMDC in its operations Why exactlyAccountancy is the lifeline of any company it does not only record the finances it also reflects the health of the organisation The MIS reports analysis trends and statistical information go a long way toward effectively providing
the diagnostic approach essential for the company
How have NMDCrsquos environmental activities helped the companyrsquos bottom lineNMDCrsquos work is well-synchronised with our environmental activities and specifically with nature Our activities are closely linked to sand and water and we view such activities with strategic importance Projects such as increasing water supply to mangroves and beach nourishment help us support the environmental activities while adding to our bottom line
ldquoAccountancy is the lifeline of any company it does not only record the finances it also reflects the health of the organisationrdquo
A burgeoning slice of Abu Dhabi coastline
The largest business awards
in the GCC30th November Dubai
nominate now at wwwstarsofbusinessawardscom
Stars of Business has become an iconic awards brand like no other in the region It recognizes the very best SMEs across 26 business categories Itrsquos universally respected as scientifically assessed and unimpeachably judged
327000 SMEs across the UAE$234 billion estimated total revenue of the SME sector4974 Awards entries in 20131856 Individual company applicants
Presenting Partner Strategic SME Partner Gold Sponsor Gold Sponsor VIP Hospitality Partner Supporting Partner
Trade Facilitator PartnerTrade Credit PartnerLogistics Partner
Institutional Partner Institutional Partner Event Partner
OrganiserPublisherMedia Partner Media PartnerPort Authority Partner
62
David Allen INTERVIEW
wwwthecfomecom
What went into completing your bestseller ndash Getting Things Done (GTD)After twenty years of researching developing and implementing a methodology for achieving stress-free productivity based upon
thousands of hours spent desk-side with
some of the best brightest and busiest people in the world I decided to write the manual for it Thatrsquos what Getting Things Done is
What are the five phases of mastering workflowIn order to get
any situation under control so
you can focus you will utilise these five
steps Whether yoursquore managing your kitchen
or your company you will need to collect and capture what has your attention clarify what if anything to do about it organise it according to what it means to you review and reflect upon it in relation to
Todayrsquos evolving CFO is often caught between the world of business set-up generating revenue managing employees and building strong company infrastructure When can things actually get done What can one do to boost productivity and master workflow World-renowned business coach David Allen has the answers
PRODUCTIvITy PRINCIPLES WITH
DAvID ALLEN
63
David Allen INTERVIEW
wwwthecfomecom
those are greatly subvertedHow does one maintain a fair balance between the time spent planning and actually getting things doneYou simply need to spend just the amount of time you need to to trust that what you are getting done is the right thing to be getting done in the moment It takes as long as it takes to get to that point Why would you do anything less
How can one apply your core productivity and workflow principles to todayrsquos technologically driven environmentThe principles and their techniques are system-independent Whether you have meaningful input from the Internet your smartphone or a conversation in the hall you must engage with it equally Technology has simply increased the flow of input and ease of distraction in your world
There is a lot of talk about how connected wersquove become and how connectivity is driving tremendous business growth Does connectivity actually come with its fair share of downsides
Connectivity is obviously a two-edged sword We can have intimate productive and creative interaction instantly with someone on the other side of the world and we can just as easily be distracted and seduced into those engagements when they may not be the best use of our attention and resources Donrsquot shoot the medium Itrsquos all simply bringing attention to your clarity of direction and priorities or lack thereof
Could you share a few quick tips with our readers to instantly boost productivityWrite everything down that has your attention Decide the very next actions required to get closure on all of them Any next actions that require less than two minutes do instantly Park reminders of everything else somewhere that yoursquoll see when you can do something about them
We are currently facing a massive information overload What are some basic principles you could suggest to mentally organise such large amounts of dataConstantly ask yourself Where am I going Whatrsquos important and rewarding to me Is this information
the whole and then engage your resources with intuitive trust
As a CFO how can you transfer efficient workflow management skills to your employees Itrsquos very difficult to legislate processes for individuals ndash you can really only hold them accountable for their results But if you are managing your own commitments and intersections with them with integrity and rigour it will automatically force your team to ldquostep up to the platerdquo in their own behaviours in order to meet your standards If you request their complete list of their company projects and they canrsquot produce it thatrsquos a sign theyrsquore not in control If they make a commitment to you that they havenrsquot kept thatrsquos data about their performance GTD is simply about good operational business practices
With so many planning and organising activities in your methodology is there a risk of losing spontaneity as a strategistThe reason for these best practices is to optimise freedom creativity and spontaneity Without them
ldquoBut if you are manag-ing your own com-mitments and intersec-tions with them with integrity and rigour it will automatical-ly force them to ldquostep up to the platerdquo in their own behaviours in order to meet your standardsrdquo
64 wwwthecfomecom
supporting that Park whatever you find potentially meaningful somewhere that is easy to access when needed
Being an entrepreneur is a non-stop job How do you ensure that you have an adequate work-life balance Pay attention to what has your attentionmdashwith regard to anything Your health relationships career finances etc Notice when something might be ldquooffrdquo and make good decisions about what you need to do to get it back ldquoonrdquo again
Does your work teach people to be efficient or effective In essence they are the same thing Effective choices are generated by efficiency on a higher level If you want to implement strategy most effectively it demands utilising your resources optimally which is efficiency
Does motivation actually improve quality of work or purely quantityDepends on the focus of the motivation You can be motivated to work harder and you can be motivated to work smarter
What is your favourite productivity mantra that
you implement in your day-to-day lifeUsing my own in-basket and note-taking devices to capture potentially meaningful and valuable ideas and soon afterwards clearing all of them out by deciding what to do about them if anything
Your books seminars and other work inspires many individuals and businesses Who is your personal inspiration or role model I have many about many different aspects of my life The only person though that I ultimately trust as my best guide is my higher self which I try to access as frequently and clearly as I can
Finally what advice would you give to current business owners and aspiring entrepreneurs looking to gain complete control of their life and businessCapture what has your attention clarify what you need to do about it to get it off your mind organise the inventory of all your commitments at all levels review and reflect on all of that regularly relax and trust your inner wisdom to engage with the most appropriate thing in the moment
ldquoIf you want to implement strategy most effectively it demands utilising your resources optimallyrdquo
David Allen INTERVIEW
APPSTECH TALK
wwwthecfomecom 65
mAxImISE BUSINESS lsquoON-THE-GOrsquo WITH THESE HANDy APPS
ipAd SpECIAL
SAMSUNG UNvEILS GALAxY NOTE EDGE
Network
AP
Display
OS
Camera
Video
Audio
Additional Features
GoogleMobile Services
Connectivity
Sensor
Memory
Dimension
Battery
The availability of service may differ by country All functionality features specifications and other product information provided in this document including but not limited to the benefits design pricing components performance availability and capabilities of the product are subject to change without notice or obligation
Samsung Galaxy Note Edge Product Specifications
25G (GSM GPRS EDGE) 850 900 1800 1900 MHz3G (HSPA + 42Mbps) 850 900 1900 2100 MHz4G (LTE Cat 4 15050Mbps) or 4G(LTE Cat 6 30050Mbps)May differ by country and carrier
27 GHz Quad-Core Processor
56 inch (1419mm) Quad HD+ Super AMOLED (2560 x 1440 + 160)
Android 44 (KitKat)
Rear Facing 16 Mega pixel Auto Focus camera with Smart OISFront Facing 37 Mega pixel camera with f19Rear Facing Camera HDR (Rich tone) Selective Focus Rear-cam Selfie Beauty face Virtual Tour Shot ShotampMore Dual CameraFront Facing Camera Selfie Wide Selfie
Codec H264 MPEG-4 H263 VC-1 WMV7 WMV8 Sorenson Spark MP43 VP8 Recording amp Playback up to UHD
Codec MP3 AACAAC+eAAC+ WMA AMR-NBWB Vorbis FLAC()() Ultra High Quality Audio (~192KHz 24 bit) support
Multi WindowUltra Power Saving ModeVoice Recorder (Normal Mode Interview Mode Meeting Mode Voice Memo)Download BoosterS Health 35Dynamic Lock ScreenBriefingEdge screen UX Revolving Interaction Immersive apps(Camera Video S Note)Ticker board Express me Quick Tools Night Clock etc
Chrome Drive Photos Gmail Google Google+ Google Settings Hangouts Maps Play Books Play Games Play Newsstand Play Movie amp TV Play Music Play Store Voice Search YouTube
WiFi 80211 abgnac (HT80) MIMO PCIeGPS GLONASS BeidouNFC Bluetoothreg v 41 (BLE ANT+)IR LED (Remote Control) USB20 MHL 30
Gesture Accelerometer Geo-magnetic Gyroscope RGB IR-LEDProximity Barometer Hall Sensor Finger Scanner UV Heart Rate Monitoring SpO2 (Dependent on market)
32 64 GB Internal memory + microSD slot (up to 128GB)3GB RAM
1513 x 824 x 83mm 174g
Standard battery Li-ion 3000 mAh Fast Charging (Adaptive Fast Charging amp QC20)
wwwthecfomecom66
APPSTECH TALK
AIR DISPLAY
SQUARE REGISTER
Using this app you can connect your iPad to your computer and use it as an additional screen While working on an important presentation or sales proposal you can extend or mirror your computer screen on your iPad This app is compatible with both Mac and Windows computers Note that to use this feature you have to install Air Display on your iPad and a separate free app on your computer The computer and iPad also need to be on the same Wi-Fi network in order to work in-sync
For Mac users the app allows you to connect to up to four screens ndash all at the same time
Apart from the ability to convert your iPad into a wireless display whatrsquos also attractive about this app is that it allows you to control your computer wirelessly using your iPad
This fantastic application can serve as a mobile point of sale for your business It allows you to accept credit card payments ndash including Visa MasterCard Discover and American Express A transaction fee of 275 is charged for every time you swipe a card The sale amount is transferred to your account within two working days
Once you download the app you can sign up and register for a unique card reader solution called the lsquoSquare Readerrsquo (this is free) Square Reader encrypts all card details and ensures that the transaction is secure Once you receive your Square Reader you can connect it to your device and are all set
The application also offers added features such as transaction history connecting to a receipt printer creating employee logins and more
AED 3699
PRICE
Free
PRICE
wwwthecfomecom 67
APPSTECH TALK
DOCUSIGNHave you ever been in a situation where your employees need you to urgently sign a contract but arenrsquot able to physically reach you in time DocuSign solves this problem with its easy-to-use eSignature feature In three easy steps you can sign important documents and securely send them to your intended recipient
First you have to import the document to your device ndash this could be from Dropbox Google Drive or another select applications You then place your signature or any other important legal information you need to include such as initials Once you have finished working on the document send it back via e-mail
Whatrsquos particularly great about DocuSign is the great emphasis it puts on security ndash so that users donrsquot have to worry about getting into any legal trouble
Use DocuSign and never miss a deadline again
Free for basic version
PRICE
MPAYAn initiative by the Dubai eGovernment Department mPay is a simple application that allows you to make important payments Once yoursquove signed up and entered your payment details you are good to go You can pay your Dubai Electricity and Water Authority (DEWA) bills Etisalat utility bills Dubai Police fines Recharge SALIK and much more
A handy feature is its lsquoauto-rechargersquo option which you can use to set automatic payments
Free
PRICE
Opinion CIMAPERSONALITIES
wwwthecfomecom68
NEW HORIZONSBy geetu Ahuja Head of gCC at CIMA
The days of the traditional accountant working within a small community in a small town in a small market have long gone CFOs are now being referred to as Chief Frontier Officers as they travel from market to market overseeing their offices overseas This new expanded role has distinct advantages for both the company and the CFO who gain new skills and new insights from foreign branches a single hand at the helm of many markets provides business perspectives on a global scale and benchmarks across the board
On a personal level working abroad also has huge importance Robert Walters the specialist professional recruitment consultancy recently conducted a survey
of almost 2200 employees across a variety of professions exploring a number of topics which ranged from working practices and attitudes to careers The results highlighted some notable trends particularly for finance professionals
In career progression for example the survey showed that 50 of all accountants see working abroad as either lsquoessentialrsquo or lsquoextremely usefulrsquo to furthering their prospects more than banking professionals lawyers and IT workers ndash a strong indication of how accounting professionals are thinking about their future either within their existing company or with opportunities elsewhere
Accountants with globally recognised qualifications obviously have a greater chance of gaining some experience abroad and the lsquoGen Yrsquo professionals in particular seem ready to pack their bags In a CIMA study conducted in the UK last year over a third of those seeking employment in the
next two years will prioritise opportunities abroad over those in their home countries many of them enticed by the career incentives offered by the Middle East
How quickly can they land what seems to be their dream job What are the realities It may be that the move is simply from one branch to another and the only significant difference is a view from the window but for those expanding rather than changing their roles we have seen a very real need for a depth and breadth of knowledge never needed before
As geographical boundaries are pushed ever-wider a CFOrsquos responsibilities are pushed with them For many finance executives the understanding of their own patch of land is no longer enough they now have to be aware of foreign markets up to speed with foreign trends and au fait with foreign laws There is a need for a new commercial awareness in geography as well as philosophy
As geographical boundaries are pushed ever-wider a CFOrsquos responsibilities are pushed with them
John vargheseQampA
wwwthecfomecom 69
BUSINESSSET UP YOUR
IN THE UNITED ARAB EMIRATES
TO
WAREHOUSESOFFICES INDUSTRIAL LANDFLEXI
Quick and easy company set-up
Less than an hour drive from Dubai
Complete cost-effective packages including licences and facilities
100 foreign ownership
Zero income and corporate taxes
Eligibility for UAE Residence Visa
BUSINESS SET-UP SOLUTIONS STARTING FROM AED 15000 (USD 4000)
RAK FREE TRADE ZONE PROVIDES
RAK Free Trade Zone Authority - Government of Ras Al KhaimahUAE (Ras Al Khaimah) Tel +971 7 2041111 (Dubai) Tel +971 4 7041875 (Abu Dhabi) Tel +971 2 6994888
Germany (Cologne) - Turkey (Istanbul) - India (Mumbai)
Call +971 7 204 1111 Visit wwwrakftzcom Join rakftz
10
UAECA LaunchMARKET OUTLOOK
wwwthecfomecom
AAA launches an accountancy Certification for the UAE in collaboration with ACCA
CERTIFICATIONTAKING REGIONAL OWNERSHIP
The United Arab Emirates Chartered Accountants (UAECA) Qualification launched at Dubairsquos Armani Hotel 3 November by the UAE Accountants and Auditors Association (AAA) in association with the global accountancy body ACCA (Association of Chartered Certified Accountants) The announcement coincided with UAE National Flag Day and advanced ever expanding Emiratisation aims across the country With the support of the ACCA the skills gained will not only lead local UAE accountants to excel across the Emirates but also to encourage further growth internationally
A number of notable local leaders spoke at the event and
expressed their delight and favorable expectations for the UAECA His Excellency Sultan Bin Saeed Al Mansouri the UAE Minister of Economy Saif Abed Al Muhairi Chairman of the Board AAA Abdullah Amiri Financial Manager AAA and Ahmad Darwish Secretary General AAA and Chair of ACCArsquos members advisory committee in the UAE each offered speeches to the crowd of assembled finance professionals
ldquoWe are confident that UAECA will be the ambition of young Emiratis who would like to be the future leaders in the finance fieldrdquo said Al Muhairi
The UAECA qualification is the national qualification of the UAE and is based on
the globally recognised ACCA qualification This criterion will provide a dual-branded internationally recognised IFAC compliant route to membership of both AAA and ACCA
Said Stuart Dunlop regional director MENASA ndash ACCA ldquoThis unique partnership between ACCA and AAA will give students access to a national qualification making their skills and knowledge globally and locally relevant Once qualified as an ACCA member they will also be eligible to apply for membership to AAA meaning they can use the titles ACCA and UAECA after their names And because this partnership supports
ldquoWe are confident that UAECA will be the ambition of young Emi-ratis who would like to be the future leaders in the finance fieldrdquo
11
UAECA LaunchMARKET OUTLOOK
wwwthecfomecom
Saif Bin Abed Al Muhairi Chairman AAA
Ahmad Darwish Secretary General AAA
the governmentrsquos initiative to develop the accountancy and finance profession they will benefit from enhanced career opportunities as more employers and stakeholders choose to work with us in the futurerdquo
Emiratis in the accountancy field joined the procession eager to take part furthermore in what the AAA has planned unequivocally encouraged by the Associationrsquos hand in the UAECArsquoS launch The new qualification has stoked promise for bolstering Emirati involvement in local accountancy as well as international ventures which lie beyond the countryrsquos borders
ldquoAs an ACCA member Irsquom really proud the ACCA route
The new qualification has a good deal of promise for bolstering Emirati involvement in local accountancy as well as international ventures which lie beyond the countryrsquos borders
to membership has formed the basis of the new national qualification of the UAE It gives aspiring Emiratis recognition on a local and global stage and is a unique opportunity that will develop our careers and the profession in the UAErdquo said Ayesha Al Zaabi Senior Accountant of Group Finance Aerospace amp Engineering Services Mubadala
The future of accountancy appears brighter than ever in the UAE with the unveiling of an internationally supported qualification specific to the country The potential increase of Emirati participation spells great promise for the finance industry as it grows from within
12
at CPI Media Group the discussion offered a candid conversation of lively opinions bringing together key individuals from prestigious and influential businesses based in the UAE
The spirited discussion delved into how varied and increasingly imperative the Chief Financial Officerrsquos role has become
Vincent Valladares Managing Director Middle East Head Citi Commercial Bank led the vibrant discussion with the support of Anand Nagaraj Vice President Head Product Development Citi Commercial Bank whilst Grant Thornton Partners Jay Raney and Amgad Nassif offered their views as well
CFO RoundtableMARKET OUTLOOK
wwwthecfomecom
One of the trends in world business currently attracting considerable comment and debate is the changing role of the CFO No longer simply the custodian of the businessrsquo finance or the head of accounts the CFO is increasingly seen as a master strategist and the key architect of corporate decision-making As such a roundtable event held by Citi - in collaboration with Grant Thornton - was both a timely and revealing landmark on shifting attitudes and aspiration
IN CHANGING TImESCITI COMMERCIAL BANK CORRALS A pOwERfuL MEETINg Of MINdS
The management guru Tom Peters recently commented that ldquoIn these perverse and perhaps illusory times is it any wonder that the CFO is seen as the one reliable point of reference - the one person from the C-suite cut out for more responsibility and bigger things in the businessrdquo
Citi Commercial Bank and Grant Thornton echoed the importance of this shifting role by gathering a collection of leading CFOs and finance executives at Dubairsquos Grosvenor House - hosting a keynote round table called lsquoThe Changing Role of the CFOrsquo In a world where CFOs are increasingly wearing a number of new hats within their respective enterprises the event asked pertinent questions such as -
ldquoThe CFOs duties have changed as strategy and other focuses are becoming increasingly importantrdquo
bull Whether the CFO is increasingly the businessrsquo key strategist bull Whether or not the role is more and more impacted by changing legislation and regulationbull Is the CFO now effectively the CEO-in-waitingbull What is the role of management education in this new mix
So while much has been written lately about how essential it is that the CFOrsquos function evolve and change the dayrsquos discussion took an overtly practical view and gathered the opinions of the individuals at its core
Hosted by Paul Godfrey Group Editorial Director
13
recession environment has created an atmosphere rife with new regulations which CFOs are expected to master as these international enterprises venture into new markets and encounter sensitive and risk management-oriented frameworks
Citirsquos Vincent Valladares observed ldquoRegulatory issues are becoming bigger for banks as well as compliance And when we look at doing business with companies we want to look at those with good management teams because otherwise it can become difficult The CFO plays a very important role within this processrdquo
CEO waiting in the wingsWhen the group was quizzed on their individual desires to become CEO every hand around the table went skywards with an affirmative ldquoyes all of usrdquo - highlighting how commercially-minded todayrsquos CFOs have become Not to mention just how axiomatic the relationship between CEO and CFO consistently proves to be
Another factor is that amid all this diverse change - in roles working contexts and background economics - the CFO is seen very much as the person creating order control and standardization No small task
Perhaps the only certainty is that the communication of ideas is leading the charge forward for one of the business worldrsquos most important roles and The Changing Role of the CFO provided a definitive benchmark for this onward march
CFO RoundtableMARKET OUTLOOK
wwwthecfomecom
Members of the roundtable trade ideas
Vincent Valladares offers his position
CFO or CCOldquoThe duties have changed in some very clear ways A phrase that I am constantly coming across and strongly agree with is that we should be thinking of the CFO as the Chief Commercial Officer as opposed to someone who deals solely with finance Responsibilities central to finance continue to exist of course but strategy and other focuses are becoming just as if not more importantrdquo commented Rishi R Vig ZAFCO CFO
In addition to how much larger a remit commercial decisions are demanding the importance of regulatory protocols was a much- discussed topic The post-
Vincent Valladares Managing Director Middle East Head Citi Commercial Bank
Anand Nagaraj Vice President Head Product Development Citi Commercial Bank
Jay Raney PartnerGrant Thornton
Amgad Nassif Partner Grant Thornton
Paul Godfrey Moderator Group Editorial Director CPI Media Group
Steven Pradia Assistant EditorThe CFO Middle East
Ganapathi Bhat Senior Manager of Finance GEMS Education
Mark Downie Financial Controller Proclad
Nimesh Lokhandwala ICAI
Jehangir Pocha Himalaya
Kamal Shah Finance Manager Logicom
Rishi Vig CFO Zafco
Low Wai Leng Financial Controller Dubai Precast
Rajeev Jain CFO Afri Ventures
KG Vincent Finance Director FDC International
Ramesh Pemmasani Head of Accounts Intersun
Nagesh Nadig AIC
ROUNDTABLE ATTENDEES
IndiaCOUNTRy FOCUS
wwwthecfomecom14
SUBCONTINENTAL SURGE
By Arvind Chari
Last year was undoubtedly a turbulent time for emerging markets due to political instability inflation and the fledgling recovery in the West all causing significant headwinds Unsurprisingly this has led some commentators to be sceptical about the prospects for these markets including India But the Indian economy is showing signs that it will weather the challenges of the next few years This may not be an easy task given the
manner the Indian rupee plunged in response to the US Federal Reserversquos decision to taper asset purchasing Nevertheless India does have the political will to make the necessary reforms to deliver on its potential
While the Fedrsquos decision has caused some fallout in emerging markets commentators expect that this will tail off over time Meanwhile Indiarsquos economy is driven by domestic demand which means that
India does have the political will to make the necessary reforms to deliver on its potential
With an eye towards the nationrsquos key partnership with the Middle East the following India country report shares economic prospects accounting for last yearrsquos instability ndash defining what investors can gain moving forward
IndiaCOUNTRy FOCUS
wwwthecfomecom 15
$791bTotal trade between India and the UAE in lsquo13
64Expected growth of Indiarsquos economy in lsquo15
Indiarsquos debt market needs to attract stable investors over lsquobond touristsrsquo short term foreign flows evident in Indiarsquos bond markets
it is better placed than most to deal with the world post-quantitative easing Without the so-called lsquotaper tantrumrsquo investors in India might have focused more on the positives in 2013 But given the overall improvements in the economy and the political outlook we feel the India narrative will be harder to ignore in Q4
One of the most significant changes has been the appointment of Dr Raghuram Rajan as governor of the Reserve Bank of India (RBI)
last year He is clearly part of a dying breed of central banker that is one who actually knows how the world works He will make mistakes but the most important thing is that he will be trying to move India in the right direction as shown by his decision to continue with a hike in interest rates at the end of January Bond and currency markets have reacted very well to this move which shows the bank is now ahead of the curve in fighting inflation In October Rajan remarked that
Indiarsquos debt market needed to attract stable investors over lsquobond touristsrsquo a reference to the short-term foreign flows that have been evident in Indiarsquos bond markets His stance is an indication that policies could be shifted to attract more long-term stable money into Indiarsquos government bond markets away from a focus on the foreign-bank lsquoproprietaryrsquo investments that dominate flows currently
Indiarsquos current account deficit (CAD) was set to halve
STAT FACTS
IndiaCOUNTRy FOCUS
wwwthecfomecom16 wwwthecfomecom16
in the year ending March 2014 It was due to fall to 25 from 48 of GDP in 2013 The fall in gold imports alongside currency depreciation was a major contributing factor to this reduction Indiarsquos exports became more competitively priced over Q1 2014 which has led to higher exports in textiles chemicals and leather goods while the drop in the value of the rupee has also led to a fall in non-oilgold imports We expect the CAD to increase to around 3 of GDP for this financial year as gold import restrictions are removed a shift that should still be easily fundable Additionally the RBIrsquos FX reserves have increased by $34bn through the bank and non-resident Indian deposit swaps which was a much higher figure than anticipated This gives the RBI the additional firepower to intervene in the markets if it is necessary to counteract currency volatility In fact the
rupee has been remarkably stable since October and has steadily outperformed its other lsquofragilersquo emerging-market peers
There has also been an improvement in how other countries perceive India Net foreign direct investment is stable despite some negative sentiment driven by the outflows from the bond markets and banks Vodafone described by Rajan as lsquothe poster child for companies with difficulties in Indiarsquo is investing more in spectrum and also buying out minority operators In addition significant Japanese investment into Indiarsquos infrastructure is a further boost to the country and this relationship will be one to watch over the coming years
Overall the world has a much better impression of India than it did a few years ago when the country was facing significant obstacles In 2010 increasing inflation expanding fiscal deficits and an escalating CAD ndash all coupled with slowing growth rates ndash put India in a very difficult position But in 2012 the government realised that the current situation could not continue and since then there has been a much greater focus on reform
A mixture of poor growth and bad policies dramatically hampered Indiarsquos progress earlier this century frustrating many investors But the country is now beginning to drive a wedge between itself and the other more troubled emerging-market economies We feel
162KIndian tourists in Abu Dhabi yTD
Significant Japanese investment into Indiarsquos infrastructure is a further boost to the country and this relationship will be one to watch over the coming years
STAT FACTS
IndiaCOUNTRy FOCUS
wwwthecfomecomwwwthecfomecom 17
Population size 12 billion
Area 3287263km2
Type of government Federal republic
Official language Hindi
Capital city New Delhi
Largest city New Delhi
GDP (2012) $1825 trillion
Central government debt as a proportion of GDP 67
Currency Indian rupee
Conversion rate against the euro 0013
COUNTRy FILE
Hire a local manager or partner who has a very good
understanding of local rules and regulations
Have a longer-term investment horizon because the Indian rupee will remain
volatile for a while
donrsquot view volatility as a risk view the
integrity of the government and
management as a risk
Travel to India and feel the lsquomicrorsquo India
story rather than just read about the lsquomacrorsquo India story
Be patient and have realistic
expectations ndash things take time to work out in India
TOP TIPS FOR DOING BUSINESS IN INDIA
that these differences will mean that India significantly outperforms those economies over the coming years And while we might still be facing some turbulent times for India at least the dark clouds are beginning to break
As with any emerging-market economy the next few years will present challenges alongside opportunities and investors will have to
be comfortable with this state of affairs But India is committed to making the reforms it needs to improve its future The country has much better potential for growth than any developed country and it is also in a far better position than many of its emerging-market peers Now is the time to take advantage of all that India has to offer to investors
INNOvATIONrsquoS BOTTOm LINE Bill Chappell occupies a rare space as the CFO of Dubai Silicon Oasis a free zone dedicated to the development of technology across the emirate In the following interview he shares with CFO Magazine how far along technology has come in the UAE and why the figures are the most important aspect of his role as Chief Financial Officer
18
Cover StoryTECHNOLOGy
wwwthecfomecom
Dubai Silicon Oasis (DSO) occupies a vast 72 million square metre stretch of land in the northern reaches of the UAErsquos most globally recognised emirate Established in 2005 as a government-owned free zone devoted to the development of technology DSO has in the time since welcomed over 1087 companies into a space of which more than 59 of has been developed
Responsible for liaising with DSOrsquos companies both large and small whilst overseeing the free zonersquos balance sheet CFO Bill Chappell mans a unique station as a finance
executive with a keen eye for technological growth
ldquoIrsquove been with Dubai Silicon Oasis for nine years and my role is rather split I am the finance director but Irsquom also responsible
for our initiatives on technology incubation
and investment which is all very interestingrdquo
Chappell said Despite Chappellrsquos
years of experience in the technology industry granting him an imperatively strategic purview as CFO he makes clear what is most important as Chief Financial Officer
ldquoGetting the numbers right must always be the number one thing People talk about strategy and a number of other things but you must focus on the numbersrdquo
Chappell offered ldquoMy background is in technology companies for over ten years previous to coming here so I have a knowledge of technology which I brought to Dubai above all My overlap personally involves understanding technology whilst being a CFOrdquo
When Dubai Silicon Oasis first came into existence the area was undeveloped with no roads customers or residents Today the oasis acts as both a home for industry and residence whilst the Dubai Silicon Oasis Authority operates a number of services unique to companies which operate within the free zone A business incubation centre venture capital funding structure and various forms of entrepreneurial support are among DSOrsquos many aspects available to tenants
Said Chappell ldquoThere are three categories of companies at DSO There are smaller companies which deal more largely with our entrepreneur and incubator ecosystem The other extreme involves global firms such as Fujitsu or SAP and we look at their needs and make sure theyrsquore satisfied as customers They want our help to get setup And then there is the middle group and I meet them if they need my help as CFOrdquo
DSO counts SAP Porsche Fujitsu and Qordoba among its vast bank of companies
19
Cover StoryTECHNOLOGy
wwwthecfomecom
each of which are granted access to the Chappellrsquos well-honed expertise
ldquoBill has been involved in several meetings to gain updates about the company and offer input on what he thinks we should be focusing on whilst asking questions about our financial processes He also sits with the board on occasionrdquo said Loulou Khazen Baz founder of Nabbesh an online marketplace which connects professionals with work opportunities
ldquoDubai Silicon Oasis has been an important Investor at various stages of Nabbeshrsquos journey and a vital stamp of approval Our company has found priceless value in DSOrsquos support and the approachable nature of an involved CFO like Billrdquo
Chappell faces a number of challenges related to investment due to the region not ranking tech developments as high as traditional platforms such as real estate Additional concerns related to innovation have found themselves increasingly entering the CFOrsquos remit as related to encouraging ideas specific to the region Chappell is confident however that certain companies based in DSO are addressing these issues
ldquoIn this region one of my biggest challenges is getting people to understand
ldquoPeople talk about strategybut getting the numbers right must always be the number one thingrdquo
20 wwwthecfomecom
the complexities of tech Technology is a good investment class but the region is focused very much on real estate whilst the investment class of technology doesnrsquot rank as highrdquo said Chappell ldquoIn order to widen the general understanding we want to be developing solutions which address problems specific to the region We have one or two gems for example Qordoba a translation company which translates content in multiple languages The programme utilises artificial intelligence and as a result is getting smarter and smarter each time it is asked to translate so that it understands the meaning of what itrsquos translatingrdquo
Another key variable for DSO is centred on supporting
Dubairsquos goals based around becoming the worldrsquos capital for Islamic finance Chappell describes his role as CFO as one with ldquotwo thousand handsrdquo a multi-layered position which he seems to relish being held responsible for While DSO has grown tremendously in its near decade of existence the free zonersquos exuberant CFO sees lots more to come
Said Chappell ldquoI see us going from strength to strength Wersquove been in existence for nearly ten years When I joined it was empty desert Now we have over 1000 companies and an estimated 43000 living on site Within five years wersquoll also be further down the path and wersquoll be recognised for our contributions to the smart city and the Islamic economyrdquo
ldquoWithin five years wersquoll be further down the path and recognised for our contributions to the smart city and the Islamic economyrdquo
Dubai Silicon Oasis
headquarters
1080Companies in DSO
72millionDSOrsquos land mass in square metres
STAT FACTS
Cover StoryTECHNOLOGy
THE MIDDLE EAST ACCOUNTANCYAND FINANCE EXCELLENCE AWARDSWEDNESDAY 10 DECEMBER 2014AT THE JUMEIRAH BEACH HOTEL DUBAI
ACCOUNTING FOR EXCELLENCE
Once again the very best talent in the world of accountancy and fi nance will be celebrated by ICAEW at a stellar awards ceremony
ICAEW is a professional membership organisation supporting over 142000 chartered accountants around the world And on Wednesday 10 December 2014 at the Jumeirah Beach Hotel in Dubai wersquoll be recognising excellence in ten categories featuring Business Leader of the Year CFO of the Year Corporate Finance Deal of the Year and the Internal Audit Excellence Award
With an impressive line-up of speakers special guests and entertainment it all adds up to a trulymemorable evening
To submit a nomination or for more information visit icaewcommiddleeastawards
Nominations close on 1 October 2014
A WORLD LEADER OF THE ACCOUNTANCY AND FINANCE PROFESSION
400595_ICAEW_MiddleEast2014_Ad_NBAD_DEVERE_207x270_AW_3indd 1 27082014 1541
PROCUREMENTANALyTICS
wwwthecfomecom22
Return on Supply Management Assets (ROSMA) is a pioneering framework launched by AT Kearney after four years of testing one aimed at addressing the aforementioned procurement gaps The performance measurement standard was initiated with an eye on creating a benchmark for the procurement industry and providing a compass to direct investments
ldquoROSMA started in 2010 And it started out with conversations with the CFO There are a group of folks in the company talking about how great their achievements are however
the capital that procurement claims isnrsquot often obvious and can create a disconnect within the companyrdquo said AT Kearney Vice President Federico Mariscotti
This yearrsquos annual report surveyed a number of businesses and arrived at a series of significant findings which outline procurement patternsbull Top-tier companies generate
approximately $16 million in financial return per procurement employee yearly A reported 35 per cent of return derives from applying advanced methods
bull Mid-level performers typically
The first step for compa-nies in the Middle East is to take a good look at what they expect procurement to bring
Leading global management firm AT Kearney recently released a report on the evolving conversation which surrounds procurement A key aspect of the report spells out how much CFOs stand to gain by making more pronounced investments based on utilising procurement in terms of value The relative distance between CFOs and their respective companyrsquos procurement methods is cited as cause for concern
THE NEW LANGUAGE OF PROCUREmENT
generate four to five times of their investment in procurement valuation yet have not exemplified growth since 2011
bull Performers at the lowest level surveyed do not achieve monetary benefits which cover costs
bull The majority of organisations surveyed do not possess the tracking structures needed to analyse procurement performance
bull Regardless of company size or industry procurement
PROCUREMENTANALyTICS
wwwthecfomecom 23
The CFO community has not yet awakened to the value of procurement
performance varies though companies with sophisticated reporting techniques experience less variable performance
The reportrsquos express aim to create a benchmark for procurement follows a wave of process monitoring which found notice in the manufacturing industry in the 1980s supply chain research and engineering in the 1990s and sales and marketing performance being closely tracked in the 2000s
ldquoProcurement costs can represent anything from 20 to 90 of a companyrsquos total cost going from the public sector to consumer goods Yet the productivity of the team that presides over the supply market interactions has a way of explaining their value add using savings that do not add up to the PampL impact measured by finance Savings definitions different baselines and cost avoidance all contribute to a murky aggregate view of the impact on the businessrdquo added Mariscotti
In the Middle East the challenge is fundamental ndash getting the spend data in the first place Companies admit they often do not have a clear categorisation of intelligence lack an agreed definition of savings measurement and generally position procurement as a pre-eminently transactional activity lacking the mandate to contribute value Procurement processes as a result remain centred around purchasing are paper based and lack transparency The first step for companies in the Middle East is to take a good look at what they expect procurement to bring
wwwthecfomecom24
Influencedspend
The inconsequential The brand leaders
Leaning up
Note All three segments start with a common hypothetical spend of 1000 to normalize the case example
Source AT Kearney analysis
Source AT Kearney analysis
TOP QUARTILE
mIDDLE-TIER 50
BOTTOm QUARTILE
704
764
644
522
527
396
42
30
(138) (25)
(63)
19
39
28
15
21
4
3
60
32
18
Sourcedspend
Units of yield
Post-compliance
benefits
Additionalbenefits
Financial results
delivered
19x
17x
middle tier
bottom quartile
TOP-QUARTILE PERFORMERS DELIVER NEARLy TWICE AS MUCH VALUE AS MIDDLE-TIER PLAyERS
THE CFO COMMUNITy HAS NOT yET BEEN ldquoAWAKENEDrdquo TO THE VALUE OF PROCUREMENT
Procurement is not on the radar for those who gave the wrong answers to three essential questions
leadership with accountability for performance is clear but either the measures are not clear or performance is believed to be weak variable or unknown ndash or a mix
leaners and leaders answered all three essential questions correctly and also answered most or all other questions correctly
to the table and how it should support the business To make a steep change companies need to understand the multiple benefits which will occur for investments made once theyrsquove allowed for stronger procurement practices
The benchmarking aspects of ROSMArsquos report speak directly to CFOs based on an existing widespread inability to track and improve this often unquantifiable nature of procurement practices According to the report the CFO community has not yet awakened to the value of procurement and Chief Financial Officers are thus divided into three segments The brand leaders (25) those leaning up (63) the pack (774) and the inconsequential (138)
Said Mariscotti ldquoThis is a way to give procurement a measurable quality that CFOs can quantify You have to know what yoursquore doing with relation to procurement in order to do it well ROSMA gives you a number which helps you understand how good your procurement is working as compared to peers It lets you know whether or not you could be doing something differentrdquo offers Mariscotti
CFOs have exemplified an increasing ability to share in a companyrsquos strategic efforts whilst expand their respective remits Procurement is emerging as the latest segment of this conversation Understanding its value beyond the transactional is the first step for CFOs to fully engage with harnessing the potential of procurement and grow to become a part of the elusively paltry portion of brand leaders indicated in ROSMArsquos report
PROCUREMENTANALyTICS
The pack(774)
Al Sharid is the Vice Chairman of Emirates Transport and has enjoyed a successful career in which the lionrsquos share of his tenure has afforded him a seat at the helm of the business
ldquoI remember when I first received the GM of Tata in the late 80s he said to me lsquoYou are the youngest GM I have ever metrsquo I was 29 years old at the timerdquo Looking at Al Sharidrsquos rapid ascent to the top of his organisation can be mind boggling to the average observer however to those few who strive to push themselves to their limits it is perhaps more common a reality As with any top performer we can often see their desire for results and impact
early on in life and with Saeed the first stride of his race to the top began with an accounting degree in university
It was 1976 and the excitement of the UAErsquos biggest milestone moment its inception just five years earlier still clung to the air from Fujairah to Abu Dhabi and every emirate in between A nation was being built Saeed had just finished high school and went to the United States where he was to study engineering
ldquoI was not yet 18 years old it was 1976 and I was sent to America to study it was the beginning of a dream and a young liferdquo says Al Sharid Unfortunately Al Sharidrsquos academic tour of duty came to
THE EmIRATI DREAm Saeed Al Sharid is today an elder statesman in the world of UAE accountancy With decades of know-how based on chairing a number of key Emirati organisations Al Sharid is today atop his own family firm In the following exclusive interview he shares the importance of education the evolution of a nation and just how being an accountant has driven his many triumphs
an abrupt halt when his father suddenly passed and he was forced to return home ldquoWe are seven brothers and I am the middle one so during tough times we always come together and during this period the strength of my family pulled me through I have three younger brothers and I felt I had to be there for them I felt responsible for them My mother played an omnipotent role in pulling us through this dark moment in our history The death of my father forced us to become more independentrdquo says Al Sharid
Now back in the UAE with his plans of studying abroad dashed Saeed looked at the local schooling system within which Al
26
InterviewPERSONALITIES
wwwthecfomecom
Saeedrsquos desire for results took its first stride with an accounting degree in university
By Shane phillips
27
InterviewPERSONALITIES
wwwthecfomecom
Ain University had just opened ldquoAl Ain University was the pride of the Emirate at the time the students were like celebrities The first batch of graduates were all promised 50000 AED from HRH Sheikh Zayed I was one year late so technically I should not have graduated with the first batch but I was determined I worked an extra course load did summer school and soon caught up to the first class 50000 AED in 1981 was like 5000000 AED today so I was very motivatedrdquo says Al Sharid
Saeed not only caught up with the other students but he wound up graduating atop Al Ain Universityrsquos first class of graduates with a 38 GPA ldquoWe Saeed Al Sharid
28 wwwthecfomecom
to the organisationrdquo he says Saeed first joined Emirates Transport after seeing a small newspaper advertisement for an accountantrsquos position He applied but initially they did not want to hire a local because locals were too expensive After a few months however they called him back for an interview and offered him a job
Initially Saeed struggled to get a promotion or even a raise He worked tirelessly to develop himself and kept detailed notes of his work After nearly two years went by with no promotion he requested to meet with the Chairman of the corporation to discuss his career The Chairman was a Minister making him even more senior than his title implied Al Sharid was courageous and determined ldquoYou should not stay silent you have to take initiative your future is in your handsrdquo says Al Sharid
ldquoI met with the Chairman and told him about my work and what I wanted to do He did not talk he just listened and that was it It was a 15-minute meetingrdquo says Al Sharid Three days after Al Sharidrsquos pivotal appointment he was promoted to Deputy General Manager Directly from a Trainee to DGM skipping all the roles in between at the age of 27 years old They doubled his salary and catapulted him into a senior leadership role
ldquoI felt it was quite strange to move up that fast and personally was not sure I could handle the job I had a lot of resistance from the board I had people in their 50s reporting to me and they were not happy about it So I just took a step back and did not try to get involved in their work too fast I went slow and watched my step This was a very important
ldquoThe UAE was a brand new country and a lot of work was being done to develop the nationrdquo
never had any idea of a career path and there was no such thing as career counsellors or lsquocareer servicesrsquo at the school So when you graduated most people just joined the Ministries The UAE was a brand new country and a lot of work was being done to develop the nation The Federal Government paid the highest and so one just joined them There was no grand vision or dream that I was off and chasing In those times you simply tried to do the next best thing So I ended up working in the Ministry of Health as an accountant Back then a university degree was a veritable qualification and it had a lot of market equity today it wonrsquot even get you in the doorrdquo
As the Middle East market evolves not only are university degrees becoming more common but so are post graduate degrees such as MBAs and even PhDs As such the competitive positioning of professional qualifications are gradually eroding over time
ldquoTo stay competitive executives today will require deep and specialised knowledge of their respective industries an intellectual arbitrage that provides superior results To beat the market to manage the risks to develop a sustained competitive edge For this executives need to stay in a role for the full strategic cycle which is at least four years in durationrdquo says Sharid In the case of Al Sharid he was there for 33 years
ldquoDo you just want a job or are you looking to make a contribution to your company Too many young people today are just looking for a title or a position The difference between those who make it into senior roles and stay there is the desire to create impact to add value
InterviewPERSONALITIES
2012year Moodyrsquos upgraded the UAE economy from developing to emerging
37The UAErsquos global rank for GDP
STAT FACTS
moment for me to gain valuable leadership experience early on To make my learning curve even steeper the General Manager quit after two years and I became the GM at the age of 29 years oldrdquo explains Al Sharid
He ascended to the top job in less than five years and stayed in the position for almost twenty years He was totally committed and could even be found in the bus yard at four in the morning to greet the drivers as they started their shifts ldquoThe key to being successful in business is to keep your finger on the details Some people let the details slip and if this happens you will suffer I get into the yard I meet the drivers I meet all the staff If you saw us you will not know who was the GM or who was the driver You have to realise people will never work for you they will only work with you To me Emirates Transport is like my familyrdquo says Al Sharid
When asked what his keys to success are he says ldquoI think if I was not an accountant I would not be a good leader I would not be a good manager In my opinion trying to do business while not understanding accounting is like getting into the ocean and not knowing how to swim you will drown The Chief Executive Officer who does not know how to create the financial statements is always at the mercy of his Chief Financial Officer He cannot take any big decision on his own and he will not even be able to challenge the CFO Accounting is the bedrock of any business and a critical skill set for any leader No one can argue with this factrdquo says Al Sharid
With over 20 years of experience in tow and the related chairmanships to boot Al Sharid
ldquoTrying to do business while not understanding accounting is like getting into the ocean and not knowing how to swim you will drownrdquo
has since early last year partnered with his family to form Al Sharid Auditing Though the Emirati youth is not as keen to pursue positions related to accountancy as Al Sharid was he feels that there is hope to close the gap
ldquoIt is difficult to find an Emirati expert I studied the audit market specifically and there were others like me then But now you break Emirati auditing involvement into three categories The first involves the big firms This is followed by individual smaller enterprises But thirdly a lot of locals opt to work with the government also Most are not managing their own firms they just have a partnership and they are building thatrdquo Al Sharid explains
ldquoAl Sharid Auditing however is a firm that includes my brother and our two sons which make up a body of qualified professional auditors We established this firm last year and work closely with the government We decided to make one firm together instead of having many smaller entitiesrdquo
Moving forward Al Sharid plans to grow his familyrsquos firm by applying the very belief system which has catapulted him to his position of power Marketing concerns which are designed to furthermore announce how tailored Al Sharidrsquos offerings are at present a key variable to forging ahead
Said Al Sharid ldquoMoving forward wersquore focusing more on the marketing of our firm Itrsquos a matter of not exactly expanding but going over the right deals The market is tough and the small jobs are easy but we donrsquot need them We donrsquot want to be in many rooms we want to be in the important onesrdquo
29wwwthecfomecom
InterviewPERSONALITIES
1UAErsquos rank among GCC nations for chosen hub of all major accountancy bodies
STAT FACTS
Latest insights from PwCrsquos 15th Annual Global CEO Survey revealed that 59 per cent of CEOs see emerging markets as more important than developed markets to their future What is making emerging markets such a pressing priority for C-suite executives Why are emerging markets increasingly grabbing headlines
Emerging markets are large fast-growing and ambitious markets best known for being the growth engines of todayrsquos global economy Research (1) suggests that emerging market countries are expected to amount for more than 60 per cent of global GDP growth ndash a clear indication of the wealth of opportunity they present
Understanding emerging marketsBased on estimates by the International Monetary Fund emerging economies are expected to grow two to three times faster in comparison to developed nations Explaining this fast-growth and the rise of these emerging markets an article on Forbescom details that ldquoduring the US housing crash and resulting credit crisis of 2008 world markets were saved from a total disaster thanks to the big emerging markets ndash mainly Brazil India and China The global credit crisis was one of the longest deepest and most painful in history It toppled Wall Street icons like Lehman
The following report explores emerging markets from West to East which are at the helm of economic development trade and innovation and highlights what their rising popularity means for the growth of your business
Brothers required government bailouts of bulge bracket banks and shocked the global economy with a deep economic recession and even a deeper crisis of confidence Its most important legacy though may be one that has yet to fully unfold the crisis revealed a new world order in terms of economic and market dynamics Emerging market economies finally arrived as
30
Market IntelligenceANALyTICS
wwwthecfomecom
ENTERING EmERGING mARKETS STRATEgIES RISKS ANd OppORTuNITIES
Projected annual GDP growth 2014 amp 2015
PANAMA
67
PERU
RANK42
55
Projected annual GDP growth 2014 amp 2015
Ease of Doing Business
RANK55Ease of Doing
Business
TOP TEN MARKETS
(1) Source here Accenture Research ldquogearing up for growth ndash five imperatives for success in emerging markets 2011 Henry Egan and Armen Ovanessoff
31
Market IntelligenceANALyTICS
wwwthecfomecom
LATVIA
CZECH REP
MALAYSIA
THAILAND
SOUTH KOREA
CHINA
RANK75
41
21
50
45
35
74
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
CHILE
RANK 34
43
Projected annual GDP growth 2014 amp 2015
Ease of Doing Business
RANK 24Ease of Doing
Business
Ease of Doing Business
RANK 6Ease of Doing
Business
RANK18Ease of Doing
Business
RANK 7Ease of Doing
Business
RANK 96Ease of Doing
Business
POLAND
32
RANK45Ease of Doing
Business
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
Source httpwwwbloombergcomnews2014-01-29qatar-china-top-ranking-of-frontier-and-emerging-marketshtml
powerful essential and permanent contributors to global economic growth and sustainabilityrdquo
Bloombergcom recently ranked the top emerging markets based on their performance on 19 economic financial political and social indicators In order of ranking the top ten markets were
CHINA
SOUTH KOREA
MALAYSIA
CHILE
THAILAND
PANAMA
PERU
LATVIA
POLAND
CZECH REP
1 6
2 7
3 84 9
5 10
Market IntelligenceANALyTICS
32 wwwthecfomecom
Making an entryIf your business is looking to enter any of these emerging markets itrsquos worth considering the following checklist
1 Assess your readiness The biggest mistake you can make is to enter a market without proper evaluation of your business Donrsquot do it just because everyone else is Like every other major business decision be sure to speak to your Board of Directors partners investors stakeholders and most importantly your CFO and certified accountants Make a business plan enlisting your objectives goals investment strategy potential risks etc
2 Research research research Do your homework Treat emerging markets as any other international expansion venture and do thorough research on the new market ndash Who are the competitorsWhat is the price point for your product What are the customer demographics What kind of infrastructure do you need for the manufacturing production or distribution of your product
3 Understand the legal framework Emerging markets might not have rules and regulations as clearly spelled out as your home country Invest some time and money in understanding how business procedures work A very obvious area of focus for UAE-based companies is tax Since the UAE is a tax-free economy companies arenrsquot exposed to tax accounting and other legislation surrounding
ndash failing to adapt to the needs and expectations of the local customers is surely a recipe for failure Time and again companies havenrsquot been able to create a customised offer and have had to exit these markets with huge losses A success story however is that of the Haier Group Haier famously introduced washing machines to specifically suit the water pressure levels in the households of India ndash an emerging market strategy that worked very well in their favour and helped them become leaders in that sector Another great example is that of Coca-Cola as explained in an online Reuters article by Matt Reilly ldquoIn Brazil Coca-Cola has used social media to better understand consumer preferences and has developed a successful local network to supply traditional Coca-Cola products as well as fruit juices tailored to local tastesrdquo
7 Local currency This is a complex yet critical area to consider when entering a new market Ask yourself questions such as ndash What is the local currency rate How does it compare to the currency in your home country Is the country import-led or export-led and what impact can this have on the global value of the currency Remember that fluctuations in currency rates can hugely effect your overall investment and thereby the return on investment
8 Build partnerships When entering an unknown territory it is quite useful to have the backing and support of peers who can help you in case of unforeseen challenges This is
this Another area to consider is corruption ndash emerging markets are notorious for high corruption red-tape and bureaucracy Speak to your company lawyer to assess these areas and take proper measures to avoid them before-hand
4 Invest in local talent Working with people already accustomed to the new market avoids the hassle of relocation and reduces costs But more significantly gives you skilled talent to work in these unique environments This also works in favour of your company as it gives you a clear understanding of the kind of compensation packages you will have to offer to your employees For instance employees based in China might want high remuneration and low healthcare benefits while in India it may be quite the reverse Recruiting local talent will also have a trickledown effect ndash your employees will easily be able to cater to the local customer needs without the need for intense training
5 Supply chain 44 per cent of business leaders surveyed consider accessing the right supply chain capabilities extremely or challenging in emerging markets according to Deloittersquos Globalisation Survey Make sure that you know who your suppliers will be what the production costs are whether their production procedures fit your time constraints and if the final product matches your level of quality
6 Cater to local market demands This is one of the most important aspects of all
Do your homework Treat emerg-ing markets as any other internation-al expansion venture
Market IntelligenceANALyTICS
33wwwthecfomecom
the very reason why Mergers and Acquisitions are a popular way to enter into emerging markets Many companies piggyback on their clients who are entering these markets For instance if you are an IT consultancy working on a major project for a manufacturing and trading company with operations across India and China you can use their resources and expertise to explore opportunities in these countries
Remember to consider these steps every time you enter a
new market as every locality has its own set of unique needs One strategy doesnrsquot fit all
Surviving fierce market conditionsWhile the massive opportunity that lies within emerging markets paints a pretty picture businesses need to be wary of bottlenecks such as corruption volatility gaps in laws and regulations and strong competition There have been several high-profile cases of multinational companies withdrawing from emerging
markets owing to immense corruption pressures
There is also a high percentage of inherent risks in these markets which amount to many companies not succeeding in their first attempts It is important to take your time when adapting to these markets and fully understand the business dynamics Following recent case studies and going over the lessons learnt by multinational companies who have made an entry into these markets consider the below
bull Is your companyrsquos head-office ndash and senior management ndash located in your home country without any C-level representation in the new emerging market
bull Are you focusing all of your resources on doing business in the emerging market at the cost of losing profits in your home market
bull Have you researched local competitors in these markets who may already have a strong standing and proven models of success
bull Are you using the same ldquoentry approachrdquo and business model across different emerging markets
If your answer to one or more of these questions is yes it may be time to re-evaluate your presence in these markets and map out a different strategy
Finally remember that no matter what the outcome of your admission to these markets might be your business is sure to emerge out of this stronger tougher and ndash of course ndash ready for a new challenge
of companies believed they had invested more resources in
emerging markets than was required
entered a market without fully assessing the ability of the supply chain to support the expansion
entered with the wrong pricing model and an inappropriate
operating model
CONSIDER THE RISKS
48
24
20
There is also a high percentage of inherent risks take your time when adapt-ing to these markets and fully understand the business dynamics
Source Emerging markets expansion and the supply chain Economist Intelligence unit survey conducted on behalf of EY September 2010
34
CIMA INTERVIEW
wwwthecfomecom
The Chartered Institute of Management Accountantsrsquo (CIMA) Managing Director Andrew Harding visited Dubai to host the Institutersquos seminar on global management accounting principles In the wake of CIMA revising their well heralded syllabus Harding discussed with CFO Magazine what the newest edition held how CIMA is applying a digital focus to its courses and just how CFOs can gain from it all
CURATING CURRICULUm
35
CIMAINTERVIEW
wwwthecfomecom
can give CFOs something they can take and something they can measure their own management accounting services against They can benchmark using this and they can utilise this to see their progress
Part of that is having professional management accountant in place I donrsquot think the landscape matters I believe that there is a common business need wherever you may be around the globe
All of the emerging markets need these skills The first aspect that accounting schools teach is about auditing skills because theyrsquore interested in protecting investments Then they teach you how to keep your business sustainable and to have a sustainable business you need to have a management accountant in place So itrsquos not just here in the UAE where we see these demands we see the same demands in China Indonesia and other powerhouse economies We see their skills shortages and we see the need for solutions in those areas
Talk to me about how this new syllabus works to promote the evolution of a CFOThis syllabus that wersquove
Can you expound on just what can be found within the new CIMA syllabusWe just revised the syllabus we do that every four to five years What we have done this year is a very significant revision It is based from a complex study that we have carried out to over 3000 people from 200 companies globally It is the very first revision since the joint venture with CIMA and AICPA So this has allowed us to attain a syllabus rich with all the data from all the continents in the world For the first time wersquove had real involvement from companies in the USA in this project
Why is the collaboration between AICPA and CIMA significantMost important is the Chartered Global Management Accountant (CGMA) designation that AICPA and CIMA both issue for qualified management accountants Wersquoll have a common curriculum and common examination which will begin on January 1 which gives us a global designation for management accountants wherever they are around the world There are plenty of accounting bodies who claim to be global but actually this is the only
genuinely global designation This is because it has the only one with a North American participation in it So we can say that the CGMA will be just as well-recognised in the USA as it is in Dubai
With the global landscape in mind how do you create an even objective that applies to localities which may prove widely differentialThe landscapes are different but businesses have common needs wherever they may be What wersquove particularly seen since the global financial crisis is that companies are actively looking to build management accountant capability to build that capacity within their organisations They donrsquot want to have a poor quality of information that lacks insight being used in their businesses So they see management accountants can bring solutions to that As a result of all the work wersquove done with companies who participated in the syllabus wersquove also put together a series of what we call Global Accounting Principles This is a series of principles which describes what good management accounting looks like and what top quality management accounting in a company should be producing This then
ldquoCompanies are actively looking to build man-agement accountant capability to build that capacity within their organisa-tionsrdquo
36 wwwthecfomecom
worked on acknowledges the skill set needed by professionals throughout their career Therersquos a base level of competence that is needed but beyond that there is more There is business acumen the ability to communicate and influence and finally the ability to lead So you start off enhancing your raw technical accounting skills Then you need to place that into the context of the business that you are in Then as you move forward and as you rise to become the CFO yoursquoll need the others You have to learn how to present your work in a way that can influence and make an impact in the business The final piece is the ability to lead projects and other functions and to a great extent lead the board of directors Thatrsquos how the context works itrsquos not just about technical knowledge
How do you find that CFOs in the GCC region are responding to this programmeThe CFO has a real challenge on his hands now In 1975 80 per cent of corporate value is showing on the balance sheet By 2010 that dropped to less than 20 per cent Your traditional PampL reports no longer reflect the value of the business or how the business drives value
All things that should be of interest to investors is missing With things like the integrated report initiative wersquore starting to see the other dimensions that add value to business For CFOs thatrsquos all about strategic thinking and considering the long-term objectives Being articulate in implementing those strategies keeping in mind the risks and opportunities that the business faces We are also nowadays witnessing a whole new world of transparency around that
Are there electronic aspects to CIMArsquos advancing approachThe interactive case study simulates a real working situation and it tests how they can apply their knowledge in real life situations Theyrsquoll be presented with a scenario a few weeks before they take the exam so they can prepare for it They then go to an exam centre where they are asked questions about how they will deal with a certain situation in the real world Theyrsquoll get an email from the CFO giving them a certain task for a particular period of time We want to make it as close to reality as possible so students taking the exam will be assessing situations based on real life scenarios
ldquoThe CFO has a real challenge on his hands now as traditional PampL reports no longer reflect the value of the businessand [the role] must focus on strategic thinking and considering long-term objectivesrdquo
218KCIMA members worldwide
STAT FACTS
CIMA INTERVIEW
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
38
ERPANALyTICS
wwwthecfomecom
Faster more nuanced IT solutions are available to the modern day CFO Whilst Chief Financial Officers are called upon to analyse data across a number of spectrums the digital tools on hand are likewise being expanded to aid in focusing more squarely on the bottom line
ExCELLING WITH ERP
The global landscape is today firmly entrenched within a digital model As a result CFOs whom are called upon to take a larger role in a number of variables must also increase their abilities with respect to utilising the many upsides which tech innovations offer a business When surveyed about their most pressing concerns CFOs generally return a varying collection of responses Revenue growth regulatory changes and meeting quarterly goals are among the chief concerns Virtually every obstacle can be hurdled by way of maintaining the order of financial reporting and data which has long been
synonymous with the Chief Financial Officerrsquos remit A widening berth of ERP solutions is making this data all the easier to come by
Despite how sophisticated the market is today it was not long ago that ERP departments once spent days processing business reports
Said Rohan Tejura Assistant Vice President Focus Softnet ldquoTraditional ERP systems were solely data repositories Moreover these repositories werenrsquot real time and were incredibly dependent upon locational connectivity With the emergence of smarter development platforms more versatile devices and
39
ERPANALyTICS
wwwthecfomecom
more intuitive designs of system development the overall experience of the ERP now extends from data warehousing to reporting analysis trend mapping business intelligence and governance oriented capabilities Yet these solutions amazingly execute all of these deliverables via portable handheld devices and through cloud environmentsrdquo
New generation ERP systems must now be on the go whilst including up to the minute analytics to provide deeper insight into the business ERP Analytics tools use historical data captured from various business functions to provide valuable information for efficiency and business performance each incredibly priceless to a leading CFO
Finesse is an ERP provider which is continually addressing the transformation of output which the ERP industry is offering the equally transitioning role of CFO
ldquoWe provide end-to-end business management solutions to SMEs and Enterprises Our approach to ERP is much more than providing simply an operational management systemrdquo said Finesse COO Sunil Paul
ldquoWe believe that todayrsquos businesses need much more than integrating sales with inventory accounting and manufacturing but also to have seamless integration with all their sales channels including the point of sales ecommerce and inbound sales solutionsrdquo
A major im-petus of the ERP-cen-tered growth is based on how effec-tive com-prehensive real-time data proves to be for the CFO
40 wwwthecfomecom
before thereby creating new global benchmarks for overall economic growth
Microsoft Arabia CFO Sadrul Khan offered insight into just how far the knowledge economy has influenced regional financial leadership by explaining how one of the most prioritised technologies by CFOs in the region is social platform monitoring
ldquoOne of the five technology choices that CFOs tend to prioritise in boosting productivity efficiencies and faster decision making in the fast paced business environment which include a social platform that monitors trends customer sentiments and helps process mashable data for customer centricity and business growthrdquo said Khan
A major impetus of the ERP-centered growth is based on how effective comprehensive real-time data proves to be for the CFO Whether employed as on-premise ERP software-as-a-service or cloud-based solutions a nearly identical ethos is being utilised Allowing the CFO to quickly access the performance of all facets of a business is paying dividends in the boardroom a reality which is showing itself increasingly in the Middle East
The technologically-charged relationship between ERP solutions and the regionrsquos CFOs is expanding and as a result has catalysed what many see as GCC economic performance outstripping that of many economies outside of the region as a result
In order to compete in todayrsquos fiercely competitive environment organisations need to think both innovatively and out of the box They require more insights about their business and their customers and need to ensure that they are able to meet the expectations of their internal as well as external stakeholders Enormous amounts of data both structured and unstructured is continuously being generated within the internal and external systems of the organisation which if analysed can be of immense value both to the business and subsequently the stakeholders associated with the organisation
With the the era of CFOs labouring over spreadsheets now in the past given how many business frontiers have become so dependent on mobile options such as the cloud more and more tech companies are providing the regionrsquos CFOs with information technology that converts traditional internal and external data into rich visual insights This information is then used for faster decision making and provides the ability for a CFO to assess manage and control risks Regional CFOs have grown enabled to drive corporate strategy accordingly demonstrating how the knowledge economy is now in full force amongst the Gulfrsquos corporates
Given that advanced IT has now become a regular CFO tool the regionrsquos CFOs are subsequently making faster decisions and driving internal growth models with greater speed and agility than ever
Tech companies are providing the regionrsquos CFOs with information technology that converts traditional internal and external data into rich visual insights
ERPANALyTICS
Donrsquot discoveritrsquos counterfeittoner afteritrsquos too lateOriginal HP Toner works first time every time1 unlike cheap toners which fail over half of the people who try it2 Non-HP toner can compromise your printerrsquos performance to give you streaked blotchy or faded prints Only original HP Toner cartridges deliver unmatched quality for the most professional-looking prints 100 of the time1
1 A QualityLogic 2010 study commissioned by HP comparing original HP LaserJet Monochrome print cartridges with nine brands of non-HP toner cartridges available in Europe Middle East and Africa for the HP LaserJet P1505 and P4015 printers HP 36A and 64A For details see wwwqualitylogiccomEMEAmonotonertestpdf 2 From a 2012 EMEA Lyra Research study commissioned by HP Results based on a total of 1050 HP Color LaserJet users who have used both original HP and non-HP toner cartridges of whom 552 experienced problems with non-HP cartridges
copy 2014 Hewlett-Packard Development Company LP
42
Private Equity ANALyTICS
wwwthecfomecom
The rise of PE-backed acquisitions is forcing CFOs to develop an entirely new set of skills
THE PRIvATE EQUITy CFO
The CFOrsquos utility in the world of private equity is without question on the rise The once-held belief of the CFO existing solely as the ldquoaccounting guyrdquo has been abandoned Over the last 20 years the role of CFO has become more demanding - requiring not just finance and accounting acumen but also a financial literacy in corporate planning risk management MampA assetliability management and regulation This evolution has been driven by a number of
key factors Yet the private equity industry which is now reshaping the corporate landscape through active ownership is by far the most significant factor driving change within the role of the CFO
PE-backed buyers today represent a larger percentage of overall buyers in the corporate acquisition marketplace than ever before Data provider Prequin estimates that as of June 2014 the capital raised by PE funds that
has not yet been deployed amounts to $114 trillion globally The result of this ldquodry powderrdquo is that a vast quantity of corporate acquisitions in the coming years will be undertaken by the private equity industry As such CFOs will be more accountable to demanding ldquosmart moneyrdquo shareholders than at any point in recent history Budgeting accounting and financial reporting will no longer exist as sole priorities but as a core competency among a
ldquoBy effec-tively using real-time data CFOs can create a dynamic process that proac-tively drives performance account-ability and value crea-tionrdquo
By Aaron Heidari
43
Private Equity ANALyTICS
wwwthecfomecom
robust set of complimentary and required skills Most of all the bar for CFOs is rising as PE investors will only accept above-average performance from their management teams
CFOs were once more reactive in function setting budgets based on other executivesrsquo plans and managing the flow of reporting to shareholders on a quarterly and yearly basis Today CFOs are required to become proactive managers of their respective businesses alongside their C-suite compatriots using a granular data-driven approach to aggregate analyse implement and report on every aspect of a companyrsquos operations
An important tool to drive this value creation process are KPIs Yet KPI structures including both aggregation and output are generally not up to the standards required of private equity investors prior to an investment being made
ldquoThe benefits of using KPIs and monthly reporting packages are significant By effectively using real-time data that is actionable and by partnering with functional area leaders within the organisation company CFOs can create a dynamic process that proactively drives performance accountability and value creationrdquo said Amanda Robinson Vice President of Accordion International in Dubai a consulting firm which is comprised of former private equity and investment banking professionals who
MENA region Cumulative Funds Under Management Since 2008
Source Zawya private Equity Monitor
19 636 20 36321 586
22 64323 506 24 250
-
5000
10000
15000
20000
25000
2008 2009 2010 2011 2012 2013
Cu
mu
lati
ve f
un
ds
($ m
)
$15mAverage MENA PE investment size in lsquo13
50Percentage of investment in IT and energy sectors
STAT FACTS
44 wwwthecfomecom
work with companies to deliver cost-effective project execution services
Active shareholders whose money it is being spent will typically require a data-driven justification before approving any budgets capital expenditures or new acquisitions Furthermore in many private equity backed companies the use of debt and the matching of shorter-term bank financing with longer-term investments will only be considered after a robust analysis is conducted to understand the companyrsquos ability to service that debt in the future This evaluation is not simply to identify revenues expenses and profits Itrsquos about drilling down into every transaction and rooting out data processing and reporting At least that is the expectation
The most valuable CFOs are those who have the ability not just to scrutinise and understand the financials but all also possess a wider grasp of the underlying data which truly comprise the business As an investor who has just acquired a stake in a new business I want a CFO who can manage the transition and stay ahead of my expectations Most of all a CFO should impress upon the companyrsquos shareholders a new way of doing business The first 100 days of an acquisition are said to be the most important During this period the CFOrsquos worth will be established when the new financial plan is due and the platform for the next five years of growth is presented
A CFO should man-age the tran-sition stay ahead of expectations and impress upon the companyrsquos shareholders a new way of doing business
Investment Volume By Sector Since 2006
Investment Volume By Sector in 2013
Source Zawya private Equity Monitor
1
3
30
17
3
28
3
4
6
4
6
5
17
9
9
6
9
5
8
6
6
2
3
10
Education
Education
Information Technology
Information Technology
Other
Other
Telecoms
Telecoms
Media
Media
Transport
Transport
Oil amp Gas
Oil amp Gas
Healthcare
Healthcare
Consumer goods
Consumer goods
Food amp Beverages
Food amp Beverages
Leisure
Leisure
Manufacturing
Manufacturing
ANALyTICS
Private Equity
2000857 NBAD ratibi mag ad 200x268 Finalindd 1 92514 1017 AM
46 wwwthecfomecom
THE FUTURE OFACCOUNTING EDUCATIONAddRESSINg THECOMpETENCY CRISIS
Have you ever stopped to think about how the accounting profession has changed since you graduated from college Recent graduates can answer this question by reflecting on the last two or three years whereas for other more seasoned professionals answering this question requires a bit more thought and memory searching Indeed we can all think of ways that the field of accounting is remarkably different today from the one we likely envisioned during our college daysmdashregardless of which decade we each donned our cap and gown This gradual transformation of the accounting profession leads to two important questions related to competencies bull Which competencies are important for success inaccounting todaybull Were these competencies consciously developed as partof your accounting degree programme
We suspect that more than a few of you would answer ldquonordquo to the second question Put another way our profession may be facingmdashmore so than at any time in the pastmdasha ldquocompetency crisisrdquo that is a gap between the competencies needed for professional success and those taught in our college classrooms today We propose a three-pronged strategy or ldquogame planrdquo for overcoming this competency crisis and in turn better preparing accounting graduates for the challenging world they will face First all of us accountants need to understand the changes that have already taken place in our profession and perhaps more importantly anticipate the changes that are on the horizon Second we need to educate ourselves and future generations of accountants so that as a collective group we can deliver the expanding set of competencies demanded in todayrsquos dynamic organisational
contexts Third as professional organisations and as individuals we need to think beyond ourselves by asking How can I (or we) help the accounting profession address the competency crisis
A Shift Toward Integrated ThinkingMany articles and white papers have been written that describe in detail the changes that have occurred in our profession over the last few decades but for our purposes wersquod like to distill these changes down to one crucial idea How does the accounting function add value to an organisation Accountants have evolved from support-oriented personnel who hand off information to others who actually make decisions into business partners who ldquohave a seat at the tablerdquo with managers
By peter C Brewer James E Sorensen CpA CgMA and david E Stout
47wwwthecfomecom
1048576bull What regulatory risks mayaccompany the proposal
1048576bull What social and environmentalfactors will we face if for example the proposal requires investing in overseas operations
1048576bull What types of employeeresistance may arise if we implement the proposal and how will we overcome the root causes of any such resistance
1048576bull Can and how should we valuefuture options associated with the proposal such as expanding or contracting the investment over time as new information becomes available
1048576bull Should we use debt or equity tofund the proposal
In short accountants have evolved to become integrated thinkers who enable EPM by partnering with managers across the organisation to add value Yet as EPM has gradually become the centrepiece of our professionrsquos value proposition accounting education hasnrsquot done enough to embrace it To overcome this gap wersquod like to further suggest that the concepts of competency integration and EPM need to come ldquofront and centrerdquo as we move forward in educating the next generation of successful accounting practitioners
Accounting Education No Longer on the SidelinesRecently a task force consisting of members of IMAreg (Institute of Management Accountants) and members of the Management Accounting Section (MAS) of the American Accounting Association (AAA) addressed the competency issue How should accounting education change fundamentally to help close the competencies gap The efforts of the task force led to
cash flows and how to apply discounted cash flow (DCF) decision models such as net present value (NPV) is of foundationalmdashsome might say critical mdash importance But integrated thinkers draw on an understanding of organisational strategy coupled with a broader set of competencies (beyond what might be considered technical or foundational knowledge) when making these types of decisions For example they consider how behavioural issues may influence the capital investment decision-making process Perhaps the financial estimates contained in the NPV analysis are too optimistic because the manager who prepared the numbers has a vested interest in seeing the project approved Decision makers also need to consider issues such as leasing vs buying a capital asset and the corresponding impacts on the financial statements and ratios that are tracked by investors and lenders What nonfinancial factors are associated with the proposed investment Add in the tax consequences of capital investment decisions coupled with the need to maintain internal control over any new business processes tied to these decisions and the need to think in an integrated fashion across a variety of accounting competencies becomes apparent
Furthermore becoming a true business partner with managers across the organisation requires more than simply integrating various accounting competencies It also means thinking like a business manager or a chief executive officer (CEO) Returning to the capital budgeting example an integrated thinker will ask questions such as
across the organisation Together they formulate and plan strategies then participate in collaborative decision-making processes that execute those strategies in a manner that adds stakeholder value Said another way accountants have evolved to become enterprise performance managers This shift in our orientation from a support function to an enterprise performance management (EPM) role has enormous implications for defining the determinants of success within our profession the most important of which involves becoming collaborators and ldquointegrated thinkersrdquo Take for example a common but important business decision process capital investment analysis Certainly technical knowledge regarding how to estimate relevant after-tax
48 wwwthecfomecom
expanding capital budgeting discussions to include financial statement impacts tax consequences and internal control issues integrates topical coverage across the External Reporting and Analysis Taxation Compliance and Planning and Assurance and Internal Control competencies shown in Figure 1
Third accounting curricula can incorporate a broader set of management competencies For example evaluating capital investment proposals from the perspectives of change management (Leadership) social and environmental issues (Ethics and Social Responsibility) regulatory concerns (Governance Risk and Compliance) and capital structure (Additional Core Business Competencies) brings a CEOrsquos perspective to the decision-making process
Fourth accounting curricula should include foundational competencies such as proficiency with spreadsheets and written and oral communication In the context of capital budgeting this may include asking students to use Microsoft Excel to perform a sensitivity analysis and then to present their findings to the entire class
Working to Fix the ProblemAt this point although you may agree with us that therersquos a competency crisis within the accounting profession you may be wondering What does this have to do with me What can my organisation do to help address this so-called competency crisis The answer a lot Practice partners and academic partners can help the accounting profession overcome the competency crisis That said letrsquos take a closer look at the role of practice partners first
improvement) and accounting competencies (external reporting and analysis planning analysis and control taxation compliance and planning information systems assurance and internal control and professional values ethics and attitudes) Of critical importance to the framework is the assumption that the set of competencies contained in Figure 1 would be developed and integrated over time through a blend of formal education (including continuing education) training and job experience
What levels of integrationmdashon the road to developing integrated thinkers in accountingmdashare possible First accounting educators can integrate within a single accounting competency So referring back to our capital budgeting discussion teaching computational models such as NPV analysis coupled with a review of various behavioural issues associated with capital investment decisions would be an example of integrating within the Planning Analysis and Control competency listed in Figure 1
Second professors can integrate across accounting competencies For example
a recently published article that contains a proposed framework for accounting education reproduced here as Figure 1 The framework is general in the sense that itrsquos meant to apply to all accounting students not subgroups based on career specialisation such as tax assurance services corporate finance and the like Itrsquos based on the idea that accounting educators can better prepare students to deliver our professionrsquos EPM value proposition through integrated competency-oriented curricula (For more see ldquoFocusing Accounting Curricula on Studentsrsquo Long-Run Careers Recommendations for an Integrated Competency-Based Framework for Accounting Educationrdquo in the May 2014 edition of Issues in Accounting Education)
A glance at Figure 1 reveals three levels of competencies foundational competencies (communication ability to leverage technology and analytical thinking and problem solving among others) broad management competencies (including leadership ethics and social responsibility and process management and
Proposed Competencies-based Framework for Accounting Education
FOUNDATIONALCOMPETENCIES
ACCOUNTING COMPETENCIES
BROAD MANAGEMENT COMPETENCIES
leadership
ExternalReportingamp Analysis
PlanningAnalysis
amp Control
TaxationComplianceamp Planning
InformationSystems
Assuranceamp InternalControl
ProfessionalValues Ethics
amp Attitudes
Communication
Quantitative
Interpersonal
Technological
Analytical Thinking ampProblem Solving
Ethics amp SocialResponsibility
ProcessManagement ampImprovement
GovernanceRisk amp
Compliance
AdditionalCore BusinessCompetencies
Although you may agree with us that therersquos a competency crisis within the account-ing profes-sion you may bewondering What does this haveto do with me
A practice partner should be or become a CMAreg (Certified Management Accountant) maintain professional certification by completing required Continuing Professional Education (CPE) hours and regularly read the IMA publications Strategic Finance and Management Accounting Quarterly
In addition there are a number of excellent resources that deal with topics covered in this article and that IMA makes available to its members
Strategic Finance PowerPacks(wwwimanetorg SFPowerPacks) These are resources focused on contemporary topics similar to those discussed earlier Current offerings include Risk Management Strategic Planning IT Skills amp Software and Internal Controls Each PowerPack includes a combination of resources such as research studies articles and links to webinars
Statements on Management Accounting (SMAs)(wwwimanetorgresources and_publicationsresearch_ studies_resourcesstatements on_management_accounting aspx) SMAs represent monographs classified into one of the following six categories Leadership Strategies and Ethics Technology Enablement Strategic Cost Management Business Performance Management Finance Governance Risk and Compliance and the Practice of Management Accounting Multiple items are available within each category For example the Practice of Management Accounting category includes (among other items)
49wwwthecfomecom
the Definition of Management Accounting and Implementing Shared Service Centres
Research Studies (wwwimanetorgresources_and_publicationsResearch_Studies_and_ResourcesAll_reportsaspx) The ldquoThoughtLeadershiprdquo section of IMArsquos website includes research covering a broad range of issues classified into seven categories For example under the ldquoGlobal Business Environmentrdquo category the following two research reports are available ldquoKey Differences Between IFRS and US GAAP Impact on Financial Reportingrdquo and ldquoCosting Methodologies and Cost Management Practices in the Peoplersquos Republic of Chinardquo
IMA Leadership Academy (www imanetorgprograms_events leadership_academyaspx) As described on the IMA website this programme is designed to assess a memberrsquos leadership status enhance that individualrsquos skills (principally through monthly webinars) and recognise leadership achievements These benefits are free to members
How You Can Make a Bigger Impact In addition to attending local regional and national IMA meetings consider inviting a small group of students to each chapter meeting This could be a wonderful (and relatively low-cost) option for mentoring aspiring accountants and finance professionals providing networking opportunities and introducing students to cutting-edge issues regarding the practice of management accounting Joining a university accounting
advisory group may be another way to influence the development of EPM in that institutionrsquos curriculum design
Other methods to enhance EPM in your organisation include (1) forming user groups within your company your local IMA chapter or your industry to review and share EPM experiences (2) encouraging advancement in the firm to be linked to EPM proficiency (3) focusing your companyrsquos recruiting efforts on candidates who display a background in andor understanding of EPM and (4) organising cross training within your company to enhance a mutual understanding of each otherrsquos respective roles
Finally visit the Competency CrisisTM website (http competencycrisisorg) set up by IMA to unite the accounting and finance constituencies professionals students employers academics and professorsmdashand explore competency issues through the lens of each stakeholder group The site is designed to ldquoencourage a discourse spur action and create a community dedicated to resolving the serious crisis of competency present in the professionrdquo Special sections of the website are devoted to educators students and employers professionals
Our Partners in Education Much like a practice partner an academic partner should be or become a CMA maintain professional accreditation by completing CPE hours and regularly read IMArsquos publications
Academic members of IMA can pursue and actively promote the CMA programme at their respective institutions
50 wwwthecfomecom
IMArsquos website contains helpful resources including an exam content overview content specification outlines for each of the two parts of the CMA exam and learning outcome statements The current exam covers some of the professional competencies represented in Figure 1 A summary of changes to exam content which will be effective in January 2015 is provided on the IMA website in News amp Media Relations which is located under ldquoAbout IMArdquo (See the press release dated March 24 2014) Other helpful resources include ldquoICMA Announces CMA Exam Content Changesrdquo in the April 2014 issue of Strategic Finance as well as ldquoManagement Accounting Career Readiness Shaping YOUR Curriculumrdquo
These forthcoming changes are based on the most recent IMA study of the knowledge and skills needed by management accountants from the view of CFOs controllers and other accountingfinance professionals from around the world
Also consider taking a group of your students to the IMA Student Leadership Conference held each November The Conference provides excellent networking opportunities for you your students and practicing professionals Students can learn firsthand from Conference presenters the challenges and opportunities facing finance and accounting professionals today
Moreover if your institution doesnrsquot currently have an IMA Student Chapter consider forming one One of the authors of this article David Stout reinstituted the student chapter at his school (Youngstown State University) after travelling with a group of his students to the IMA
Student Leadership Conference in Cleveland Ohio Through an IMA Student Chapter on campus students are able to work closely with a sponsoring local IMA chapter and bring to campus speakers who are experts in a wide range of topics including those discussed earlier in this article Each year student chapters compete for an Award of Excellence (AOE) and recognition as an Outstanding Student Chapter In addition IMA student members are able to engage in networking activities leadership training mentoring and community service programmesmdashall through their local chapter
You also might consider volunteering to serve as a Campus Advocate In this role yoursquoll represent IMA in all major matters of interest to your students (scholarship opportunities starting a student chapter mentoring and the like) and to your institution (for example leveraging IMA resources to advance the relevancy of the accounting curriculum use of educational case studies published in the IMA Educational Case Journal and access to IMArsquos ethics curriculum)
And if you havenrsquot yet done this ask IMA to endorse your accounting programme (information is available at www imanetorgeducator_resources indexaspx) This programme is designed to identify business curricula that meet the quality educational standards required to prepare students to earn the CMA designation Endorsement is based on an analysis of the curriculum and topics covered on the two-part CMA exam Currently 12 programmes have been endorsed
Finally if your school has an IMA Student Chapter consider participating in the annual IMA Student Case Competition where students are asked to propose a solution to a real world problem (Cases are solicited each year by Raef Lawson IMA VP of Research and Policy and IMA Professor in-Residence) Finalists make their presentations at IMArsquos Annual Conference amp Exposition before a set of judges consisting of accounting faculty members and practitioners Each year a new case is published in the August issue of Strategic Finance for students to use for that yearrsquos competition
Working TogetherIn this article we have summarised the changes that have affected the accounting profession and provided a competencies-based framework for guiding accounting educators in responding productively to those changes As a management accountant you know that implementing change in any organisation let alone within an entire profession never comes easily To be successful in overcoming our professionrsquos competency crisis IMArsquos practice and academic partners will need to assume leadership roles in defining enterprise performance management as the cornerstone of the accounting professionrsquos value proposition
This article was orginally published in the August 2014 issue of Strategic Finance It appears here with the permission of The Association of Accountants and financial professionals in Business
We need to educate ourselvesand future generations of account-ants so that as a collec-tive group we can deliver theexpanding set of com-petenciesdemanded in todayrsquos dynamicorgani-sational contexts
THE POWERFUL AND THRIFTY OFFICE ALL-ROUNDERS
The new ECOSYS M3560idn series will astound you With their print speeds of up to 60 pages per minute they are among the most productive A4 bw multifunctionals on the market We nevertheless managed to keep their ecological footprint and total cost of ownership impressively low by using our well-known ECOSYS technology and equipping the devices with our renowned long-life components The result Not only less waste and lower maintenance costs but also less hassle for you and all your colleagues You will also greatly appreciate the many customisation possibilities of the devices equipped with KYOCERArsquos open solution platform HyPAStrade as it allows you to tailor the device to your needs So yes we are proud of our new range of MFPs and can hardly wait to share their numerous benefits with you
For more information please contactKYOCERA Document Solutions Middle East | PB Box 500817 DubaiUAE | Tel +9714 4330 412 | Fax +9714 4231 944KYOCERA Document Solutions Europe BV - wwwkyoceradocumentsolutionseuKYOCERA Document Solutions Inc - wwwkyoceradocumentsolutionscom
52
ACCAINTERVIEW
wwwthecfomecom
GLOBAL By ASSOCIATION
across the region from our key employers and learning provider partners to our active and growing student and member base I want to understand their challenges and priorities and how ACCA can work with them to help support the economic success of the region
What can a CFO gain from working with ACCAThe ACCA qualification is about complete finance professionals For CFOs it brings the technical knowledge vital to business success complemented with the strategic management skills and ethical competence crucial to an organisationrsquos success As an organization ACCA in the UAE brings CFOs access to that local and global network of peers and expertise along with our leading research and insights that help them to keep up to date on the issues that matter most
Are there any initiatives in place to leverage the recently announced partnership with AAA
How are the ACCArsquos many years of activity being applied to the Middle EastACCA has now had a presence in the UAE for well over a decade During that time we have established strong relationships across the Middle East epitomised by the recent signing of our Strategic Partnership with AAA As a national body in choosing to partner with ACCA they recognised the local and global perspective we bring We are continuing to work with students members and employers across the Middle East to build their networks knowledge and business success through events research and insights and access to a growing number of online resources
Which initial priorities are among your key aims upon joining the organisationrsquos efforts in the UAEIn the first few months I hope to build on the success of the team in the UAE My priority will be to meet as many of our key stakeholders
The Association for Chartered Certified Accountants (ACCA) provides its services across a number of international borders The recent announcement of Lindsay Degouve de Nuncques as the new head of the Associationrsquos UAE chapter further exemplifies the ACCArsquos reach based on her previous work in the UK Nuncques shares here what she brings to the Middle East and just how globalisation has driven her ascent
53
ACCAINTERVIEW
wwwthecfomecom
The strategic partnership with AAA is the first of its kind in the region Students who complete the UAECA qualification will be entitled to both the AAA and ACCA designations and ACCA members in the UAE will also be eligible to apply for AAA membership This is a very exciting development in the market and together AAA and ACCA will be working to deliver maximum value to all our stakeholders from this partnership As we launch the UAECA qualification this activity will start in earnest
Which key industries will you be spotlighting in the Middle East in the months aheadOur experience of working across all sectors and levels of organisations globally gives ACCA a unique insight into all types of industries We will continue to be working with employers across the spectrum in the months ahead to help them gain the insight and make the connections that drive businesses to succeed at whatever they do
ldquoThe ACCA qualification is about complete finance professionals For CFOs it brings the technical knowledge vital to business success complemented with the strategic management skillsrdquo
54
Islamic FinanceMARKET OUTLOOK
wwwthecfomecom
In its 10th instalment the Forum is hosted in Dubai as a direct result of the UAErsquos increasing importance in the world of global Islamic finance
THE WORLD ISLAmIC ECONOmIC FORUm LANDS IN DUBAI
In Dubairsquos continued quest for leading the world across a range of spectrums the Emirate accelerated its desire to become the worldrsquos leading hub for Islamic finance by hosting the 10th installment of the World Islamic Economic Forum (WIEF) Delegates from dozens of countries attended to take part in a three-day event held at Madinat Jumeirah which rests alongside Dubairsquos gleaming coastline Held under the patronage of His Highness Sheikh Mohammed Bin Rashid Al Maktoum the
Vice President and Prime Minister of the UAE and Ruler of Dubai key speakers included The Honorary Dr Zeti Akhtar Aziz Governor of the Central Bank of Malaysia HE Kairat Kelimbetov Governor of the National Bank of Kazakhstan The Honorary Datorsquo Sri Mohd Najib Tun Abdul Razal Prime Minister of Malaysia and HE Xavier Bettel Prime Minister of the Grand Duchy of Luxembourg
Launched in 2006 in Malaysia WIEF has grown in tandem with the increased
Delegates from dozens of countries attended WIEF to take part in the three-day event
sophistication and reach of Islamic finance After a successful event in London in 2013 amidst increased interest in Islamic finance across Europe WIEF relocated to Dubai where the local business structure is keen to host halal finance
Said Hamad Buamim President and CEO Dubai Chamber of Commerce and Industry co-organisers of the event ldquo[The forum] is the start of a new chapter of cooperation between Dubai and the world as part of
55
Islamic FinanceMARKET OUTLOOK
wwwthecfomecom
Dubai Capital of Islamic Economy visionhellipestablishing a unified regulatory authority to provide the framework for standards across halal industries will significantly accelerate growth Likewise we need to see increased cooperation and partnership between the public and private sectors This is already happening with great success here in Dubairdquo
The order of global cooperation needed to facilitate growth across the Islamic finance world was more than apparent at WIEF based on how many differing nations were represented at the event The exhibitorrsquos hall was populated with a number of key Malaysian stands representative of the Southeast Asianrsquos ranking as the global leader in Islamic finance Also present were companies from Saudi Arabia also a key locality in the worldrsquos halal industries An interesting yet prescient presence was of attendees from South Korea a nation which is eager to participate in Islamic finance and will be hosting the WIEF Pyeongchang Roundtable in December 2014
ldquoGangwon is a province located in Korea which is very interested in new business opportunities Wersquove realised the strength of the Islamic economy and have come here with many different companies The first type is based in real estate investment We also have companies which want to export their products to the Islamic economy based on their halal qualities And Gangwon will also be hosting the Winter
ldquoKorea is very interested in the strength of the Islamic economy and wants to export its products based on their halal qualitiesrdquo
56 wwwthecfomecom
$247trillionProjected value of halal products industry in lsquo18
125Muslim percentage of global tourism expenditure
STAT FACTSOlympics in 2018 and are presently seeking investments for this as wellrdquo said Seong-hun Kim a member of Gangwon Province Governmentrsquos Export Support Team
Dubai proved to be an excellent place for the event considering how well the UAE is able to so regularly corral international cooperation A key sign of this was witnessed recently when Luxembourg now considered the third most important base for Islamic finance globally opened a finance office in Dubai International Finance Centre The European nation also opened a euro200 sukuk earlier this year which was quickly oversubscribed
The prime minister of Luxembourg offered the WIEF audience a riveting speech which detailed just how international the Forum has become whilst encouraging more of the world to support the growing influence of Islamic finance
Said Bettel ldquoWe need to innovate more economic partnerships for growth We sometimes need to reengineer relationships but also have to make sure these relationships remain sustainable Growth in one country also brings growth to others as long as this is guided by free market initiatives Free trade and free flow of capital combined with innovation leads to prosperity We have all gathered here in Dubai to explore the future of Islamic finance and Luxembourg is also a pioneer of Islamic finance in Europe The Islamic financial sector has a major role to play in continued global growthrdquo
The Islamic Corporation for the Development of the Private Sector (ICD) is based in the Kingdom of Saudi Arabia where it manages an international fund worth $2 billion half of which is available for subscription With shareholders in more than 50 countries and a sovereign sukuk fund recently launched in West Africa the ICDrsquos CEO Khaled M Al Aboodi attended WIEF this year excited to participate in the global event
How does the ICD approach its attendance at the World Islamic Economic ForumI think the Forum is one of the best places for discussing the financial issues of the OEC member countries It has been around for ten years and has grown to become a very important platform for discussion Wersquore here to attend and listen but also to network Itrsquos a great networking platform and a place to share views whilst letting everyone know what we have to offer
How has Islamic finance changed over the yearsOf course itrsquos growing in a large scale Some of it actually needs more support particularly with respect to regulatory frameworks Wersquore trying to partner with many international organisations like the IMF to try to provide support to countries to adapt regulation for Islamic finance Sukuk issuance is one of the biggest issues that needs to be addressed because there is a huge amount of liquidity in this arena Due to issues related to regulation sukuk issuance can be costly But with the regulation we are confident it will be on a level playing field with other forms of finance Compliance is a major area where more work can be done The Forum started with a roundtable on sukuk which shows how helpful WIEF has been over the years
What type of work does ICD do internationallyICD helped the government of Senegal to issue the first sovereign sukuk This was successfully issued last summer Progressing in this manner is something wersquod like to see continue across West Africa in order to utilise its resources with aiding development in the region in mind
QampA WITH KHALED M AL ABOODI CEO OF ICD
Islamic FinanceMARKET OUTLOOK
OFFICIAL SPONSORS
ENDORSED BY OFFICIAL HOST OFFICIAL
COMMUNICATIONS PARTNER
MEYDAN HOTEL DUBAI UAE19 - 20 NOVEMBER 2014
WOMENOMICSthe next emerging market
TAKE PART in making change happen UNITE with business and through leaders from across the globe
PARTICIPATE to the expansion of a modern and inclusive economy
58
Gautam PradhanINTERVIEW
wwwthecfomecom
SUCCESS BEyOND BOUNDARIES
in other management roles such as strategic decision making mentoring and leading efficiency and productivity across a range of other departments and functions as well as a being a catalyst in ensuring that the boardrsquos vision for the organisation is achieved
A significant percentage of NMDCrsquos shares are owned publicly Does the CFO play a role in balancing the interests of the shareholdersAs a CFO balancing the shareholdersrsquo interests is definitely part of my responsibility In order to achieve this goal there needs to be a careful evaluation of each decision while keeping the short-term and long-term goals of the company in mind At NMDC we actively implement a system where we utilise a balance scorecard as a method of ensuring that all our primary objectives are met yet at the same time continuously enhance our relationships with our shareholders
NMDC has completed various projects across the Emirates Are there plans to move abroadAs NMDC moves towards becoming an international player our strategic expansion plans are focused in areas within the GCC region and India In line with this strategy we opened
How has a company with such a unique set of deliverables grown so consistently over the yearsOur organisation strongly believes that the core to our strength is the people process and equipment A strategic decision led by our Board of Directors and the senior management has been implemented that required us to consistently invest in these three aspects to help expand our business beyond the territorial boundaries of the UAE and at the same time enhance what we can offer which is relevant to these segments We attribute our success to the efforts which every employee contributes We also strongly believe in the ldquoWe can make it happenrdquo principle The management raises the index of performance while setting SMART objectives within the organisation and encouraging the employees to achieve them
How has your position as the CFO changed over NMDCrsquos 35 years of operationAs the market evolves and business dynamics change my role as the CFO has become complex and more challenging A few years back I was mainly focused on bookkeeping accounting and other financial responsibilities such as arranging bank facilities But moving forward I became more involved
The UAE is progressively becoming a hub for world-class infrastructure The country has duly impressed the rest of the globe with noteworthy land developments showcased across the emirates Among the remarkable landscapes found in Abu Dhabi are the Corniche Beach Yas Island and Sir Baniyas Island Behind these successful projects is NMDC the dredging division of Abu Dhabi National Oil Company (ADNOC)
In an interview with CFO Magazine Gautam Pradhan Chief Financial Officer NMDC shares an exclusive look into the companyrsquos international blueprint for growth and his dynamic role as a strategic leader of one of the best in dredging and marine construction in the Middle East
59
Gautam PradhanINTERVIEW
wwwthecfomecom
branches in Qatar Bahrain Oman and India This has paid rich dividends recently as projects of strategic importance are bagged in Qatar and Bahrain Furthermore NMDC (UAE) has recently played a key role as a leader of an international consortium with Royal Boskalis Westminister (Netherlands) and Jan De Nul Group (Belgium) for the awarding of the Suez Canal Dredging project in Egypt Moving forward we have devised a strategic approach that will enable us to play a key role in the development of Indiarsquos marine infrastructure
What are the global strategies that are part of the CFOrsquos responsibilitiesAs CFO understanding the macro economic scenario risk analysis and mitigating those risks are all a part of my responsibilities I also have to have a proper comprehension
ldquoA few years back I was mainly focused on financial responsibilities moving forward I became more involved in strategic decision making mentoring and leading productivityrdquo
Gautam PradhanINTERVIEW
60 wwwthecfomecom
of the challenges faced by the company in terms of dealing with foreign contracts direct and indirect taxes and hedging and managing the integration process These are essential to enhance shareholders wealth and mitigate undue risk
How significant is accountancy for NMDC in its operations Why exactlyAccountancy is the lifeline of any company it does not only record the finances it also reflects the health of the organisation The MIS reports analysis trends and statistical information go a long way toward effectively providing
the diagnostic approach essential for the company
How have NMDCrsquos environmental activities helped the companyrsquos bottom lineNMDCrsquos work is well-synchronised with our environmental activities and specifically with nature Our activities are closely linked to sand and water and we view such activities with strategic importance Projects such as increasing water supply to mangroves and beach nourishment help us support the environmental activities while adding to our bottom line
ldquoAccountancy is the lifeline of any company it does not only record the finances it also reflects the health of the organisationrdquo
A burgeoning slice of Abu Dhabi coastline
The largest business awards
in the GCC30th November Dubai
nominate now at wwwstarsofbusinessawardscom
Stars of Business has become an iconic awards brand like no other in the region It recognizes the very best SMEs across 26 business categories Itrsquos universally respected as scientifically assessed and unimpeachably judged
327000 SMEs across the UAE$234 billion estimated total revenue of the SME sector4974 Awards entries in 20131856 Individual company applicants
Presenting Partner Strategic SME Partner Gold Sponsor Gold Sponsor VIP Hospitality Partner Supporting Partner
Trade Facilitator PartnerTrade Credit PartnerLogistics Partner
Institutional Partner Institutional Partner Event Partner
OrganiserPublisherMedia Partner Media PartnerPort Authority Partner
62
David Allen INTERVIEW
wwwthecfomecom
What went into completing your bestseller ndash Getting Things Done (GTD)After twenty years of researching developing and implementing a methodology for achieving stress-free productivity based upon
thousands of hours spent desk-side with
some of the best brightest and busiest people in the world I decided to write the manual for it Thatrsquos what Getting Things Done is
What are the five phases of mastering workflowIn order to get
any situation under control so
you can focus you will utilise these five
steps Whether yoursquore managing your kitchen
or your company you will need to collect and capture what has your attention clarify what if anything to do about it organise it according to what it means to you review and reflect upon it in relation to
Todayrsquos evolving CFO is often caught between the world of business set-up generating revenue managing employees and building strong company infrastructure When can things actually get done What can one do to boost productivity and master workflow World-renowned business coach David Allen has the answers
PRODUCTIvITy PRINCIPLES WITH
DAvID ALLEN
63
David Allen INTERVIEW
wwwthecfomecom
those are greatly subvertedHow does one maintain a fair balance between the time spent planning and actually getting things doneYou simply need to spend just the amount of time you need to to trust that what you are getting done is the right thing to be getting done in the moment It takes as long as it takes to get to that point Why would you do anything less
How can one apply your core productivity and workflow principles to todayrsquos technologically driven environmentThe principles and their techniques are system-independent Whether you have meaningful input from the Internet your smartphone or a conversation in the hall you must engage with it equally Technology has simply increased the flow of input and ease of distraction in your world
There is a lot of talk about how connected wersquove become and how connectivity is driving tremendous business growth Does connectivity actually come with its fair share of downsides
Connectivity is obviously a two-edged sword We can have intimate productive and creative interaction instantly with someone on the other side of the world and we can just as easily be distracted and seduced into those engagements when they may not be the best use of our attention and resources Donrsquot shoot the medium Itrsquos all simply bringing attention to your clarity of direction and priorities or lack thereof
Could you share a few quick tips with our readers to instantly boost productivityWrite everything down that has your attention Decide the very next actions required to get closure on all of them Any next actions that require less than two minutes do instantly Park reminders of everything else somewhere that yoursquoll see when you can do something about them
We are currently facing a massive information overload What are some basic principles you could suggest to mentally organise such large amounts of dataConstantly ask yourself Where am I going Whatrsquos important and rewarding to me Is this information
the whole and then engage your resources with intuitive trust
As a CFO how can you transfer efficient workflow management skills to your employees Itrsquos very difficult to legislate processes for individuals ndash you can really only hold them accountable for their results But if you are managing your own commitments and intersections with them with integrity and rigour it will automatically force your team to ldquostep up to the platerdquo in their own behaviours in order to meet your standards If you request their complete list of their company projects and they canrsquot produce it thatrsquos a sign theyrsquore not in control If they make a commitment to you that they havenrsquot kept thatrsquos data about their performance GTD is simply about good operational business practices
With so many planning and organising activities in your methodology is there a risk of losing spontaneity as a strategistThe reason for these best practices is to optimise freedom creativity and spontaneity Without them
ldquoBut if you are manag-ing your own com-mitments and intersec-tions with them with integrity and rigour it will automatical-ly force them to ldquostep up to the platerdquo in their own behaviours in order to meet your standardsrdquo
64 wwwthecfomecom
supporting that Park whatever you find potentially meaningful somewhere that is easy to access when needed
Being an entrepreneur is a non-stop job How do you ensure that you have an adequate work-life balance Pay attention to what has your attentionmdashwith regard to anything Your health relationships career finances etc Notice when something might be ldquooffrdquo and make good decisions about what you need to do to get it back ldquoonrdquo again
Does your work teach people to be efficient or effective In essence they are the same thing Effective choices are generated by efficiency on a higher level If you want to implement strategy most effectively it demands utilising your resources optimally which is efficiency
Does motivation actually improve quality of work or purely quantityDepends on the focus of the motivation You can be motivated to work harder and you can be motivated to work smarter
What is your favourite productivity mantra that
you implement in your day-to-day lifeUsing my own in-basket and note-taking devices to capture potentially meaningful and valuable ideas and soon afterwards clearing all of them out by deciding what to do about them if anything
Your books seminars and other work inspires many individuals and businesses Who is your personal inspiration or role model I have many about many different aspects of my life The only person though that I ultimately trust as my best guide is my higher self which I try to access as frequently and clearly as I can
Finally what advice would you give to current business owners and aspiring entrepreneurs looking to gain complete control of their life and businessCapture what has your attention clarify what you need to do about it to get it off your mind organise the inventory of all your commitments at all levels review and reflect on all of that regularly relax and trust your inner wisdom to engage with the most appropriate thing in the moment
ldquoIf you want to implement strategy most effectively it demands utilising your resources optimallyrdquo
David Allen INTERVIEW
APPSTECH TALK
wwwthecfomecom 65
mAxImISE BUSINESS lsquoON-THE-GOrsquo WITH THESE HANDy APPS
ipAd SpECIAL
SAMSUNG UNvEILS GALAxY NOTE EDGE
Network
AP
Display
OS
Camera
Video
Audio
Additional Features
GoogleMobile Services
Connectivity
Sensor
Memory
Dimension
Battery
The availability of service may differ by country All functionality features specifications and other product information provided in this document including but not limited to the benefits design pricing components performance availability and capabilities of the product are subject to change without notice or obligation
Samsung Galaxy Note Edge Product Specifications
25G (GSM GPRS EDGE) 850 900 1800 1900 MHz3G (HSPA + 42Mbps) 850 900 1900 2100 MHz4G (LTE Cat 4 15050Mbps) or 4G(LTE Cat 6 30050Mbps)May differ by country and carrier
27 GHz Quad-Core Processor
56 inch (1419mm) Quad HD+ Super AMOLED (2560 x 1440 + 160)
Android 44 (KitKat)
Rear Facing 16 Mega pixel Auto Focus camera with Smart OISFront Facing 37 Mega pixel camera with f19Rear Facing Camera HDR (Rich tone) Selective Focus Rear-cam Selfie Beauty face Virtual Tour Shot ShotampMore Dual CameraFront Facing Camera Selfie Wide Selfie
Codec H264 MPEG-4 H263 VC-1 WMV7 WMV8 Sorenson Spark MP43 VP8 Recording amp Playback up to UHD
Codec MP3 AACAAC+eAAC+ WMA AMR-NBWB Vorbis FLAC()() Ultra High Quality Audio (~192KHz 24 bit) support
Multi WindowUltra Power Saving ModeVoice Recorder (Normal Mode Interview Mode Meeting Mode Voice Memo)Download BoosterS Health 35Dynamic Lock ScreenBriefingEdge screen UX Revolving Interaction Immersive apps(Camera Video S Note)Ticker board Express me Quick Tools Night Clock etc
Chrome Drive Photos Gmail Google Google+ Google Settings Hangouts Maps Play Books Play Games Play Newsstand Play Movie amp TV Play Music Play Store Voice Search YouTube
WiFi 80211 abgnac (HT80) MIMO PCIeGPS GLONASS BeidouNFC Bluetoothreg v 41 (BLE ANT+)IR LED (Remote Control) USB20 MHL 30
Gesture Accelerometer Geo-magnetic Gyroscope RGB IR-LEDProximity Barometer Hall Sensor Finger Scanner UV Heart Rate Monitoring SpO2 (Dependent on market)
32 64 GB Internal memory + microSD slot (up to 128GB)3GB RAM
1513 x 824 x 83mm 174g
Standard battery Li-ion 3000 mAh Fast Charging (Adaptive Fast Charging amp QC20)
wwwthecfomecom66
APPSTECH TALK
AIR DISPLAY
SQUARE REGISTER
Using this app you can connect your iPad to your computer and use it as an additional screen While working on an important presentation or sales proposal you can extend or mirror your computer screen on your iPad This app is compatible with both Mac and Windows computers Note that to use this feature you have to install Air Display on your iPad and a separate free app on your computer The computer and iPad also need to be on the same Wi-Fi network in order to work in-sync
For Mac users the app allows you to connect to up to four screens ndash all at the same time
Apart from the ability to convert your iPad into a wireless display whatrsquos also attractive about this app is that it allows you to control your computer wirelessly using your iPad
This fantastic application can serve as a mobile point of sale for your business It allows you to accept credit card payments ndash including Visa MasterCard Discover and American Express A transaction fee of 275 is charged for every time you swipe a card The sale amount is transferred to your account within two working days
Once you download the app you can sign up and register for a unique card reader solution called the lsquoSquare Readerrsquo (this is free) Square Reader encrypts all card details and ensures that the transaction is secure Once you receive your Square Reader you can connect it to your device and are all set
The application also offers added features such as transaction history connecting to a receipt printer creating employee logins and more
AED 3699
PRICE
Free
PRICE
wwwthecfomecom 67
APPSTECH TALK
DOCUSIGNHave you ever been in a situation where your employees need you to urgently sign a contract but arenrsquot able to physically reach you in time DocuSign solves this problem with its easy-to-use eSignature feature In three easy steps you can sign important documents and securely send them to your intended recipient
First you have to import the document to your device ndash this could be from Dropbox Google Drive or another select applications You then place your signature or any other important legal information you need to include such as initials Once you have finished working on the document send it back via e-mail
Whatrsquos particularly great about DocuSign is the great emphasis it puts on security ndash so that users donrsquot have to worry about getting into any legal trouble
Use DocuSign and never miss a deadline again
Free for basic version
PRICE
MPAYAn initiative by the Dubai eGovernment Department mPay is a simple application that allows you to make important payments Once yoursquove signed up and entered your payment details you are good to go You can pay your Dubai Electricity and Water Authority (DEWA) bills Etisalat utility bills Dubai Police fines Recharge SALIK and much more
A handy feature is its lsquoauto-rechargersquo option which you can use to set automatic payments
Free
PRICE
Opinion CIMAPERSONALITIES
wwwthecfomecom68
NEW HORIZONSBy geetu Ahuja Head of gCC at CIMA
The days of the traditional accountant working within a small community in a small town in a small market have long gone CFOs are now being referred to as Chief Frontier Officers as they travel from market to market overseeing their offices overseas This new expanded role has distinct advantages for both the company and the CFO who gain new skills and new insights from foreign branches a single hand at the helm of many markets provides business perspectives on a global scale and benchmarks across the board
On a personal level working abroad also has huge importance Robert Walters the specialist professional recruitment consultancy recently conducted a survey
of almost 2200 employees across a variety of professions exploring a number of topics which ranged from working practices and attitudes to careers The results highlighted some notable trends particularly for finance professionals
In career progression for example the survey showed that 50 of all accountants see working abroad as either lsquoessentialrsquo or lsquoextremely usefulrsquo to furthering their prospects more than banking professionals lawyers and IT workers ndash a strong indication of how accounting professionals are thinking about their future either within their existing company or with opportunities elsewhere
Accountants with globally recognised qualifications obviously have a greater chance of gaining some experience abroad and the lsquoGen Yrsquo professionals in particular seem ready to pack their bags In a CIMA study conducted in the UK last year over a third of those seeking employment in the
next two years will prioritise opportunities abroad over those in their home countries many of them enticed by the career incentives offered by the Middle East
How quickly can they land what seems to be their dream job What are the realities It may be that the move is simply from one branch to another and the only significant difference is a view from the window but for those expanding rather than changing their roles we have seen a very real need for a depth and breadth of knowledge never needed before
As geographical boundaries are pushed ever-wider a CFOrsquos responsibilities are pushed with them For many finance executives the understanding of their own patch of land is no longer enough they now have to be aware of foreign markets up to speed with foreign trends and au fait with foreign laws There is a need for a new commercial awareness in geography as well as philosophy
As geographical boundaries are pushed ever-wider a CFOrsquos responsibilities are pushed with them
John vargheseQampA
wwwthecfomecom 69
BUSINESSSET UP YOUR
IN THE UNITED ARAB EMIRATES
TO
WAREHOUSESOFFICES INDUSTRIAL LANDFLEXI
Quick and easy company set-up
Less than an hour drive from Dubai
Complete cost-effective packages including licences and facilities
100 foreign ownership
Zero income and corporate taxes
Eligibility for UAE Residence Visa
BUSINESS SET-UP SOLUTIONS STARTING FROM AED 15000 (USD 4000)
RAK FREE TRADE ZONE PROVIDES
RAK Free Trade Zone Authority - Government of Ras Al KhaimahUAE (Ras Al Khaimah) Tel +971 7 2041111 (Dubai) Tel +971 4 7041875 (Abu Dhabi) Tel +971 2 6994888
Germany (Cologne) - Turkey (Istanbul) - India (Mumbai)
Call +971 7 204 1111 Visit wwwrakftzcom Join rakftz
11
UAECA LaunchMARKET OUTLOOK
wwwthecfomecom
Saif Bin Abed Al Muhairi Chairman AAA
Ahmad Darwish Secretary General AAA
the governmentrsquos initiative to develop the accountancy and finance profession they will benefit from enhanced career opportunities as more employers and stakeholders choose to work with us in the futurerdquo
Emiratis in the accountancy field joined the procession eager to take part furthermore in what the AAA has planned unequivocally encouraged by the Associationrsquos hand in the UAECArsquoS launch The new qualification has stoked promise for bolstering Emirati involvement in local accountancy as well as international ventures which lie beyond the countryrsquos borders
ldquoAs an ACCA member Irsquom really proud the ACCA route
The new qualification has a good deal of promise for bolstering Emirati involvement in local accountancy as well as international ventures which lie beyond the countryrsquos borders
to membership has formed the basis of the new national qualification of the UAE It gives aspiring Emiratis recognition on a local and global stage and is a unique opportunity that will develop our careers and the profession in the UAErdquo said Ayesha Al Zaabi Senior Accountant of Group Finance Aerospace amp Engineering Services Mubadala
The future of accountancy appears brighter than ever in the UAE with the unveiling of an internationally supported qualification specific to the country The potential increase of Emirati participation spells great promise for the finance industry as it grows from within
12
at CPI Media Group the discussion offered a candid conversation of lively opinions bringing together key individuals from prestigious and influential businesses based in the UAE
The spirited discussion delved into how varied and increasingly imperative the Chief Financial Officerrsquos role has become
Vincent Valladares Managing Director Middle East Head Citi Commercial Bank led the vibrant discussion with the support of Anand Nagaraj Vice President Head Product Development Citi Commercial Bank whilst Grant Thornton Partners Jay Raney and Amgad Nassif offered their views as well
CFO RoundtableMARKET OUTLOOK
wwwthecfomecom
One of the trends in world business currently attracting considerable comment and debate is the changing role of the CFO No longer simply the custodian of the businessrsquo finance or the head of accounts the CFO is increasingly seen as a master strategist and the key architect of corporate decision-making As such a roundtable event held by Citi - in collaboration with Grant Thornton - was both a timely and revealing landmark on shifting attitudes and aspiration
IN CHANGING TImESCITI COMMERCIAL BANK CORRALS A pOwERfuL MEETINg Of MINdS
The management guru Tom Peters recently commented that ldquoIn these perverse and perhaps illusory times is it any wonder that the CFO is seen as the one reliable point of reference - the one person from the C-suite cut out for more responsibility and bigger things in the businessrdquo
Citi Commercial Bank and Grant Thornton echoed the importance of this shifting role by gathering a collection of leading CFOs and finance executives at Dubairsquos Grosvenor House - hosting a keynote round table called lsquoThe Changing Role of the CFOrsquo In a world where CFOs are increasingly wearing a number of new hats within their respective enterprises the event asked pertinent questions such as -
ldquoThe CFOs duties have changed as strategy and other focuses are becoming increasingly importantrdquo
bull Whether the CFO is increasingly the businessrsquo key strategist bull Whether or not the role is more and more impacted by changing legislation and regulationbull Is the CFO now effectively the CEO-in-waitingbull What is the role of management education in this new mix
So while much has been written lately about how essential it is that the CFOrsquos function evolve and change the dayrsquos discussion took an overtly practical view and gathered the opinions of the individuals at its core
Hosted by Paul Godfrey Group Editorial Director
13
recession environment has created an atmosphere rife with new regulations which CFOs are expected to master as these international enterprises venture into new markets and encounter sensitive and risk management-oriented frameworks
Citirsquos Vincent Valladares observed ldquoRegulatory issues are becoming bigger for banks as well as compliance And when we look at doing business with companies we want to look at those with good management teams because otherwise it can become difficult The CFO plays a very important role within this processrdquo
CEO waiting in the wingsWhen the group was quizzed on their individual desires to become CEO every hand around the table went skywards with an affirmative ldquoyes all of usrdquo - highlighting how commercially-minded todayrsquos CFOs have become Not to mention just how axiomatic the relationship between CEO and CFO consistently proves to be
Another factor is that amid all this diverse change - in roles working contexts and background economics - the CFO is seen very much as the person creating order control and standardization No small task
Perhaps the only certainty is that the communication of ideas is leading the charge forward for one of the business worldrsquos most important roles and The Changing Role of the CFO provided a definitive benchmark for this onward march
CFO RoundtableMARKET OUTLOOK
wwwthecfomecom
Members of the roundtable trade ideas
Vincent Valladares offers his position
CFO or CCOldquoThe duties have changed in some very clear ways A phrase that I am constantly coming across and strongly agree with is that we should be thinking of the CFO as the Chief Commercial Officer as opposed to someone who deals solely with finance Responsibilities central to finance continue to exist of course but strategy and other focuses are becoming just as if not more importantrdquo commented Rishi R Vig ZAFCO CFO
In addition to how much larger a remit commercial decisions are demanding the importance of regulatory protocols was a much- discussed topic The post-
Vincent Valladares Managing Director Middle East Head Citi Commercial Bank
Anand Nagaraj Vice President Head Product Development Citi Commercial Bank
Jay Raney PartnerGrant Thornton
Amgad Nassif Partner Grant Thornton
Paul Godfrey Moderator Group Editorial Director CPI Media Group
Steven Pradia Assistant EditorThe CFO Middle East
Ganapathi Bhat Senior Manager of Finance GEMS Education
Mark Downie Financial Controller Proclad
Nimesh Lokhandwala ICAI
Jehangir Pocha Himalaya
Kamal Shah Finance Manager Logicom
Rishi Vig CFO Zafco
Low Wai Leng Financial Controller Dubai Precast
Rajeev Jain CFO Afri Ventures
KG Vincent Finance Director FDC International
Ramesh Pemmasani Head of Accounts Intersun
Nagesh Nadig AIC
ROUNDTABLE ATTENDEES
IndiaCOUNTRy FOCUS
wwwthecfomecom14
SUBCONTINENTAL SURGE
By Arvind Chari
Last year was undoubtedly a turbulent time for emerging markets due to political instability inflation and the fledgling recovery in the West all causing significant headwinds Unsurprisingly this has led some commentators to be sceptical about the prospects for these markets including India But the Indian economy is showing signs that it will weather the challenges of the next few years This may not be an easy task given the
manner the Indian rupee plunged in response to the US Federal Reserversquos decision to taper asset purchasing Nevertheless India does have the political will to make the necessary reforms to deliver on its potential
While the Fedrsquos decision has caused some fallout in emerging markets commentators expect that this will tail off over time Meanwhile Indiarsquos economy is driven by domestic demand which means that
India does have the political will to make the necessary reforms to deliver on its potential
With an eye towards the nationrsquos key partnership with the Middle East the following India country report shares economic prospects accounting for last yearrsquos instability ndash defining what investors can gain moving forward
IndiaCOUNTRy FOCUS
wwwthecfomecom 15
$791bTotal trade between India and the UAE in lsquo13
64Expected growth of Indiarsquos economy in lsquo15
Indiarsquos debt market needs to attract stable investors over lsquobond touristsrsquo short term foreign flows evident in Indiarsquos bond markets
it is better placed than most to deal with the world post-quantitative easing Without the so-called lsquotaper tantrumrsquo investors in India might have focused more on the positives in 2013 But given the overall improvements in the economy and the political outlook we feel the India narrative will be harder to ignore in Q4
One of the most significant changes has been the appointment of Dr Raghuram Rajan as governor of the Reserve Bank of India (RBI)
last year He is clearly part of a dying breed of central banker that is one who actually knows how the world works He will make mistakes but the most important thing is that he will be trying to move India in the right direction as shown by his decision to continue with a hike in interest rates at the end of January Bond and currency markets have reacted very well to this move which shows the bank is now ahead of the curve in fighting inflation In October Rajan remarked that
Indiarsquos debt market needed to attract stable investors over lsquobond touristsrsquo a reference to the short-term foreign flows that have been evident in Indiarsquos bond markets His stance is an indication that policies could be shifted to attract more long-term stable money into Indiarsquos government bond markets away from a focus on the foreign-bank lsquoproprietaryrsquo investments that dominate flows currently
Indiarsquos current account deficit (CAD) was set to halve
STAT FACTS
IndiaCOUNTRy FOCUS
wwwthecfomecom16 wwwthecfomecom16
in the year ending March 2014 It was due to fall to 25 from 48 of GDP in 2013 The fall in gold imports alongside currency depreciation was a major contributing factor to this reduction Indiarsquos exports became more competitively priced over Q1 2014 which has led to higher exports in textiles chemicals and leather goods while the drop in the value of the rupee has also led to a fall in non-oilgold imports We expect the CAD to increase to around 3 of GDP for this financial year as gold import restrictions are removed a shift that should still be easily fundable Additionally the RBIrsquos FX reserves have increased by $34bn through the bank and non-resident Indian deposit swaps which was a much higher figure than anticipated This gives the RBI the additional firepower to intervene in the markets if it is necessary to counteract currency volatility In fact the
rupee has been remarkably stable since October and has steadily outperformed its other lsquofragilersquo emerging-market peers
There has also been an improvement in how other countries perceive India Net foreign direct investment is stable despite some negative sentiment driven by the outflows from the bond markets and banks Vodafone described by Rajan as lsquothe poster child for companies with difficulties in Indiarsquo is investing more in spectrum and also buying out minority operators In addition significant Japanese investment into Indiarsquos infrastructure is a further boost to the country and this relationship will be one to watch over the coming years
Overall the world has a much better impression of India than it did a few years ago when the country was facing significant obstacles In 2010 increasing inflation expanding fiscal deficits and an escalating CAD ndash all coupled with slowing growth rates ndash put India in a very difficult position But in 2012 the government realised that the current situation could not continue and since then there has been a much greater focus on reform
A mixture of poor growth and bad policies dramatically hampered Indiarsquos progress earlier this century frustrating many investors But the country is now beginning to drive a wedge between itself and the other more troubled emerging-market economies We feel
162KIndian tourists in Abu Dhabi yTD
Significant Japanese investment into Indiarsquos infrastructure is a further boost to the country and this relationship will be one to watch over the coming years
STAT FACTS
IndiaCOUNTRy FOCUS
wwwthecfomecomwwwthecfomecom 17
Population size 12 billion
Area 3287263km2
Type of government Federal republic
Official language Hindi
Capital city New Delhi
Largest city New Delhi
GDP (2012) $1825 trillion
Central government debt as a proportion of GDP 67
Currency Indian rupee
Conversion rate against the euro 0013
COUNTRy FILE
Hire a local manager or partner who has a very good
understanding of local rules and regulations
Have a longer-term investment horizon because the Indian rupee will remain
volatile for a while
donrsquot view volatility as a risk view the
integrity of the government and
management as a risk
Travel to India and feel the lsquomicrorsquo India
story rather than just read about the lsquomacrorsquo India story
Be patient and have realistic
expectations ndash things take time to work out in India
TOP TIPS FOR DOING BUSINESS IN INDIA
that these differences will mean that India significantly outperforms those economies over the coming years And while we might still be facing some turbulent times for India at least the dark clouds are beginning to break
As with any emerging-market economy the next few years will present challenges alongside opportunities and investors will have to
be comfortable with this state of affairs But India is committed to making the reforms it needs to improve its future The country has much better potential for growth than any developed country and it is also in a far better position than many of its emerging-market peers Now is the time to take advantage of all that India has to offer to investors
INNOvATIONrsquoS BOTTOm LINE Bill Chappell occupies a rare space as the CFO of Dubai Silicon Oasis a free zone dedicated to the development of technology across the emirate In the following interview he shares with CFO Magazine how far along technology has come in the UAE and why the figures are the most important aspect of his role as Chief Financial Officer
18
Cover StoryTECHNOLOGy
wwwthecfomecom
Dubai Silicon Oasis (DSO) occupies a vast 72 million square metre stretch of land in the northern reaches of the UAErsquos most globally recognised emirate Established in 2005 as a government-owned free zone devoted to the development of technology DSO has in the time since welcomed over 1087 companies into a space of which more than 59 of has been developed
Responsible for liaising with DSOrsquos companies both large and small whilst overseeing the free zonersquos balance sheet CFO Bill Chappell mans a unique station as a finance
executive with a keen eye for technological growth
ldquoIrsquove been with Dubai Silicon Oasis for nine years and my role is rather split I am the finance director but Irsquom also responsible
for our initiatives on technology incubation
and investment which is all very interestingrdquo
Chappell said Despite Chappellrsquos
years of experience in the technology industry granting him an imperatively strategic purview as CFO he makes clear what is most important as Chief Financial Officer
ldquoGetting the numbers right must always be the number one thing People talk about strategy and a number of other things but you must focus on the numbersrdquo
Chappell offered ldquoMy background is in technology companies for over ten years previous to coming here so I have a knowledge of technology which I brought to Dubai above all My overlap personally involves understanding technology whilst being a CFOrdquo
When Dubai Silicon Oasis first came into existence the area was undeveloped with no roads customers or residents Today the oasis acts as both a home for industry and residence whilst the Dubai Silicon Oasis Authority operates a number of services unique to companies which operate within the free zone A business incubation centre venture capital funding structure and various forms of entrepreneurial support are among DSOrsquos many aspects available to tenants
Said Chappell ldquoThere are three categories of companies at DSO There are smaller companies which deal more largely with our entrepreneur and incubator ecosystem The other extreme involves global firms such as Fujitsu or SAP and we look at their needs and make sure theyrsquore satisfied as customers They want our help to get setup And then there is the middle group and I meet them if they need my help as CFOrdquo
DSO counts SAP Porsche Fujitsu and Qordoba among its vast bank of companies
19
Cover StoryTECHNOLOGy
wwwthecfomecom
each of which are granted access to the Chappellrsquos well-honed expertise
ldquoBill has been involved in several meetings to gain updates about the company and offer input on what he thinks we should be focusing on whilst asking questions about our financial processes He also sits with the board on occasionrdquo said Loulou Khazen Baz founder of Nabbesh an online marketplace which connects professionals with work opportunities
ldquoDubai Silicon Oasis has been an important Investor at various stages of Nabbeshrsquos journey and a vital stamp of approval Our company has found priceless value in DSOrsquos support and the approachable nature of an involved CFO like Billrdquo
Chappell faces a number of challenges related to investment due to the region not ranking tech developments as high as traditional platforms such as real estate Additional concerns related to innovation have found themselves increasingly entering the CFOrsquos remit as related to encouraging ideas specific to the region Chappell is confident however that certain companies based in DSO are addressing these issues
ldquoIn this region one of my biggest challenges is getting people to understand
ldquoPeople talk about strategybut getting the numbers right must always be the number one thingrdquo
20 wwwthecfomecom
the complexities of tech Technology is a good investment class but the region is focused very much on real estate whilst the investment class of technology doesnrsquot rank as highrdquo said Chappell ldquoIn order to widen the general understanding we want to be developing solutions which address problems specific to the region We have one or two gems for example Qordoba a translation company which translates content in multiple languages The programme utilises artificial intelligence and as a result is getting smarter and smarter each time it is asked to translate so that it understands the meaning of what itrsquos translatingrdquo
Another key variable for DSO is centred on supporting
Dubairsquos goals based around becoming the worldrsquos capital for Islamic finance Chappell describes his role as CFO as one with ldquotwo thousand handsrdquo a multi-layered position which he seems to relish being held responsible for While DSO has grown tremendously in its near decade of existence the free zonersquos exuberant CFO sees lots more to come
Said Chappell ldquoI see us going from strength to strength Wersquove been in existence for nearly ten years When I joined it was empty desert Now we have over 1000 companies and an estimated 43000 living on site Within five years wersquoll also be further down the path and wersquoll be recognised for our contributions to the smart city and the Islamic economyrdquo
ldquoWithin five years wersquoll be further down the path and recognised for our contributions to the smart city and the Islamic economyrdquo
Dubai Silicon Oasis
headquarters
1080Companies in DSO
72millionDSOrsquos land mass in square metres
STAT FACTS
Cover StoryTECHNOLOGy
THE MIDDLE EAST ACCOUNTANCYAND FINANCE EXCELLENCE AWARDSWEDNESDAY 10 DECEMBER 2014AT THE JUMEIRAH BEACH HOTEL DUBAI
ACCOUNTING FOR EXCELLENCE
Once again the very best talent in the world of accountancy and fi nance will be celebrated by ICAEW at a stellar awards ceremony
ICAEW is a professional membership organisation supporting over 142000 chartered accountants around the world And on Wednesday 10 December 2014 at the Jumeirah Beach Hotel in Dubai wersquoll be recognising excellence in ten categories featuring Business Leader of the Year CFO of the Year Corporate Finance Deal of the Year and the Internal Audit Excellence Award
With an impressive line-up of speakers special guests and entertainment it all adds up to a trulymemorable evening
To submit a nomination or for more information visit icaewcommiddleeastawards
Nominations close on 1 October 2014
A WORLD LEADER OF THE ACCOUNTANCY AND FINANCE PROFESSION
400595_ICAEW_MiddleEast2014_Ad_NBAD_DEVERE_207x270_AW_3indd 1 27082014 1541
PROCUREMENTANALyTICS
wwwthecfomecom22
Return on Supply Management Assets (ROSMA) is a pioneering framework launched by AT Kearney after four years of testing one aimed at addressing the aforementioned procurement gaps The performance measurement standard was initiated with an eye on creating a benchmark for the procurement industry and providing a compass to direct investments
ldquoROSMA started in 2010 And it started out with conversations with the CFO There are a group of folks in the company talking about how great their achievements are however
the capital that procurement claims isnrsquot often obvious and can create a disconnect within the companyrdquo said AT Kearney Vice President Federico Mariscotti
This yearrsquos annual report surveyed a number of businesses and arrived at a series of significant findings which outline procurement patternsbull Top-tier companies generate
approximately $16 million in financial return per procurement employee yearly A reported 35 per cent of return derives from applying advanced methods
bull Mid-level performers typically
The first step for compa-nies in the Middle East is to take a good look at what they expect procurement to bring
Leading global management firm AT Kearney recently released a report on the evolving conversation which surrounds procurement A key aspect of the report spells out how much CFOs stand to gain by making more pronounced investments based on utilising procurement in terms of value The relative distance between CFOs and their respective companyrsquos procurement methods is cited as cause for concern
THE NEW LANGUAGE OF PROCUREmENT
generate four to five times of their investment in procurement valuation yet have not exemplified growth since 2011
bull Performers at the lowest level surveyed do not achieve monetary benefits which cover costs
bull The majority of organisations surveyed do not possess the tracking structures needed to analyse procurement performance
bull Regardless of company size or industry procurement
PROCUREMENTANALyTICS
wwwthecfomecom 23
The CFO community has not yet awakened to the value of procurement
performance varies though companies with sophisticated reporting techniques experience less variable performance
The reportrsquos express aim to create a benchmark for procurement follows a wave of process monitoring which found notice in the manufacturing industry in the 1980s supply chain research and engineering in the 1990s and sales and marketing performance being closely tracked in the 2000s
ldquoProcurement costs can represent anything from 20 to 90 of a companyrsquos total cost going from the public sector to consumer goods Yet the productivity of the team that presides over the supply market interactions has a way of explaining their value add using savings that do not add up to the PampL impact measured by finance Savings definitions different baselines and cost avoidance all contribute to a murky aggregate view of the impact on the businessrdquo added Mariscotti
In the Middle East the challenge is fundamental ndash getting the spend data in the first place Companies admit they often do not have a clear categorisation of intelligence lack an agreed definition of savings measurement and generally position procurement as a pre-eminently transactional activity lacking the mandate to contribute value Procurement processes as a result remain centred around purchasing are paper based and lack transparency The first step for companies in the Middle East is to take a good look at what they expect procurement to bring
wwwthecfomecom24
Influencedspend
The inconsequential The brand leaders
Leaning up
Note All three segments start with a common hypothetical spend of 1000 to normalize the case example
Source AT Kearney analysis
Source AT Kearney analysis
TOP QUARTILE
mIDDLE-TIER 50
BOTTOm QUARTILE
704
764
644
522
527
396
42
30
(138) (25)
(63)
19
39
28
15
21
4
3
60
32
18
Sourcedspend
Units of yield
Post-compliance
benefits
Additionalbenefits
Financial results
delivered
19x
17x
middle tier
bottom quartile
TOP-QUARTILE PERFORMERS DELIVER NEARLy TWICE AS MUCH VALUE AS MIDDLE-TIER PLAyERS
THE CFO COMMUNITy HAS NOT yET BEEN ldquoAWAKENEDrdquo TO THE VALUE OF PROCUREMENT
Procurement is not on the radar for those who gave the wrong answers to three essential questions
leadership with accountability for performance is clear but either the measures are not clear or performance is believed to be weak variable or unknown ndash or a mix
leaners and leaders answered all three essential questions correctly and also answered most or all other questions correctly
to the table and how it should support the business To make a steep change companies need to understand the multiple benefits which will occur for investments made once theyrsquove allowed for stronger procurement practices
The benchmarking aspects of ROSMArsquos report speak directly to CFOs based on an existing widespread inability to track and improve this often unquantifiable nature of procurement practices According to the report the CFO community has not yet awakened to the value of procurement and Chief Financial Officers are thus divided into three segments The brand leaders (25) those leaning up (63) the pack (774) and the inconsequential (138)
Said Mariscotti ldquoThis is a way to give procurement a measurable quality that CFOs can quantify You have to know what yoursquore doing with relation to procurement in order to do it well ROSMA gives you a number which helps you understand how good your procurement is working as compared to peers It lets you know whether or not you could be doing something differentrdquo offers Mariscotti
CFOs have exemplified an increasing ability to share in a companyrsquos strategic efforts whilst expand their respective remits Procurement is emerging as the latest segment of this conversation Understanding its value beyond the transactional is the first step for CFOs to fully engage with harnessing the potential of procurement and grow to become a part of the elusively paltry portion of brand leaders indicated in ROSMArsquos report
PROCUREMENTANALyTICS
The pack(774)
Al Sharid is the Vice Chairman of Emirates Transport and has enjoyed a successful career in which the lionrsquos share of his tenure has afforded him a seat at the helm of the business
ldquoI remember when I first received the GM of Tata in the late 80s he said to me lsquoYou are the youngest GM I have ever metrsquo I was 29 years old at the timerdquo Looking at Al Sharidrsquos rapid ascent to the top of his organisation can be mind boggling to the average observer however to those few who strive to push themselves to their limits it is perhaps more common a reality As with any top performer we can often see their desire for results and impact
early on in life and with Saeed the first stride of his race to the top began with an accounting degree in university
It was 1976 and the excitement of the UAErsquos biggest milestone moment its inception just five years earlier still clung to the air from Fujairah to Abu Dhabi and every emirate in between A nation was being built Saeed had just finished high school and went to the United States where he was to study engineering
ldquoI was not yet 18 years old it was 1976 and I was sent to America to study it was the beginning of a dream and a young liferdquo says Al Sharid Unfortunately Al Sharidrsquos academic tour of duty came to
THE EmIRATI DREAm Saeed Al Sharid is today an elder statesman in the world of UAE accountancy With decades of know-how based on chairing a number of key Emirati organisations Al Sharid is today atop his own family firm In the following exclusive interview he shares the importance of education the evolution of a nation and just how being an accountant has driven his many triumphs
an abrupt halt when his father suddenly passed and he was forced to return home ldquoWe are seven brothers and I am the middle one so during tough times we always come together and during this period the strength of my family pulled me through I have three younger brothers and I felt I had to be there for them I felt responsible for them My mother played an omnipotent role in pulling us through this dark moment in our history The death of my father forced us to become more independentrdquo says Al Sharid
Now back in the UAE with his plans of studying abroad dashed Saeed looked at the local schooling system within which Al
26
InterviewPERSONALITIES
wwwthecfomecom
Saeedrsquos desire for results took its first stride with an accounting degree in university
By Shane phillips
27
InterviewPERSONALITIES
wwwthecfomecom
Ain University had just opened ldquoAl Ain University was the pride of the Emirate at the time the students were like celebrities The first batch of graduates were all promised 50000 AED from HRH Sheikh Zayed I was one year late so technically I should not have graduated with the first batch but I was determined I worked an extra course load did summer school and soon caught up to the first class 50000 AED in 1981 was like 5000000 AED today so I was very motivatedrdquo says Al Sharid
Saeed not only caught up with the other students but he wound up graduating atop Al Ain Universityrsquos first class of graduates with a 38 GPA ldquoWe Saeed Al Sharid
28 wwwthecfomecom
to the organisationrdquo he says Saeed first joined Emirates Transport after seeing a small newspaper advertisement for an accountantrsquos position He applied but initially they did not want to hire a local because locals were too expensive After a few months however they called him back for an interview and offered him a job
Initially Saeed struggled to get a promotion or even a raise He worked tirelessly to develop himself and kept detailed notes of his work After nearly two years went by with no promotion he requested to meet with the Chairman of the corporation to discuss his career The Chairman was a Minister making him even more senior than his title implied Al Sharid was courageous and determined ldquoYou should not stay silent you have to take initiative your future is in your handsrdquo says Al Sharid
ldquoI met with the Chairman and told him about my work and what I wanted to do He did not talk he just listened and that was it It was a 15-minute meetingrdquo says Al Sharid Three days after Al Sharidrsquos pivotal appointment he was promoted to Deputy General Manager Directly from a Trainee to DGM skipping all the roles in between at the age of 27 years old They doubled his salary and catapulted him into a senior leadership role
ldquoI felt it was quite strange to move up that fast and personally was not sure I could handle the job I had a lot of resistance from the board I had people in their 50s reporting to me and they were not happy about it So I just took a step back and did not try to get involved in their work too fast I went slow and watched my step This was a very important
ldquoThe UAE was a brand new country and a lot of work was being done to develop the nationrdquo
never had any idea of a career path and there was no such thing as career counsellors or lsquocareer servicesrsquo at the school So when you graduated most people just joined the Ministries The UAE was a brand new country and a lot of work was being done to develop the nation The Federal Government paid the highest and so one just joined them There was no grand vision or dream that I was off and chasing In those times you simply tried to do the next best thing So I ended up working in the Ministry of Health as an accountant Back then a university degree was a veritable qualification and it had a lot of market equity today it wonrsquot even get you in the doorrdquo
As the Middle East market evolves not only are university degrees becoming more common but so are post graduate degrees such as MBAs and even PhDs As such the competitive positioning of professional qualifications are gradually eroding over time
ldquoTo stay competitive executives today will require deep and specialised knowledge of their respective industries an intellectual arbitrage that provides superior results To beat the market to manage the risks to develop a sustained competitive edge For this executives need to stay in a role for the full strategic cycle which is at least four years in durationrdquo says Sharid In the case of Al Sharid he was there for 33 years
ldquoDo you just want a job or are you looking to make a contribution to your company Too many young people today are just looking for a title or a position The difference between those who make it into senior roles and stay there is the desire to create impact to add value
InterviewPERSONALITIES
2012year Moodyrsquos upgraded the UAE economy from developing to emerging
37The UAErsquos global rank for GDP
STAT FACTS
moment for me to gain valuable leadership experience early on To make my learning curve even steeper the General Manager quit after two years and I became the GM at the age of 29 years oldrdquo explains Al Sharid
He ascended to the top job in less than five years and stayed in the position for almost twenty years He was totally committed and could even be found in the bus yard at four in the morning to greet the drivers as they started their shifts ldquoThe key to being successful in business is to keep your finger on the details Some people let the details slip and if this happens you will suffer I get into the yard I meet the drivers I meet all the staff If you saw us you will not know who was the GM or who was the driver You have to realise people will never work for you they will only work with you To me Emirates Transport is like my familyrdquo says Al Sharid
When asked what his keys to success are he says ldquoI think if I was not an accountant I would not be a good leader I would not be a good manager In my opinion trying to do business while not understanding accounting is like getting into the ocean and not knowing how to swim you will drown The Chief Executive Officer who does not know how to create the financial statements is always at the mercy of his Chief Financial Officer He cannot take any big decision on his own and he will not even be able to challenge the CFO Accounting is the bedrock of any business and a critical skill set for any leader No one can argue with this factrdquo says Al Sharid
With over 20 years of experience in tow and the related chairmanships to boot Al Sharid
ldquoTrying to do business while not understanding accounting is like getting into the ocean and not knowing how to swim you will drownrdquo
has since early last year partnered with his family to form Al Sharid Auditing Though the Emirati youth is not as keen to pursue positions related to accountancy as Al Sharid was he feels that there is hope to close the gap
ldquoIt is difficult to find an Emirati expert I studied the audit market specifically and there were others like me then But now you break Emirati auditing involvement into three categories The first involves the big firms This is followed by individual smaller enterprises But thirdly a lot of locals opt to work with the government also Most are not managing their own firms they just have a partnership and they are building thatrdquo Al Sharid explains
ldquoAl Sharid Auditing however is a firm that includes my brother and our two sons which make up a body of qualified professional auditors We established this firm last year and work closely with the government We decided to make one firm together instead of having many smaller entitiesrdquo
Moving forward Al Sharid plans to grow his familyrsquos firm by applying the very belief system which has catapulted him to his position of power Marketing concerns which are designed to furthermore announce how tailored Al Sharidrsquos offerings are at present a key variable to forging ahead
Said Al Sharid ldquoMoving forward wersquore focusing more on the marketing of our firm Itrsquos a matter of not exactly expanding but going over the right deals The market is tough and the small jobs are easy but we donrsquot need them We donrsquot want to be in many rooms we want to be in the important onesrdquo
29wwwthecfomecom
InterviewPERSONALITIES
1UAErsquos rank among GCC nations for chosen hub of all major accountancy bodies
STAT FACTS
Latest insights from PwCrsquos 15th Annual Global CEO Survey revealed that 59 per cent of CEOs see emerging markets as more important than developed markets to their future What is making emerging markets such a pressing priority for C-suite executives Why are emerging markets increasingly grabbing headlines
Emerging markets are large fast-growing and ambitious markets best known for being the growth engines of todayrsquos global economy Research (1) suggests that emerging market countries are expected to amount for more than 60 per cent of global GDP growth ndash a clear indication of the wealth of opportunity they present
Understanding emerging marketsBased on estimates by the International Monetary Fund emerging economies are expected to grow two to three times faster in comparison to developed nations Explaining this fast-growth and the rise of these emerging markets an article on Forbescom details that ldquoduring the US housing crash and resulting credit crisis of 2008 world markets were saved from a total disaster thanks to the big emerging markets ndash mainly Brazil India and China The global credit crisis was one of the longest deepest and most painful in history It toppled Wall Street icons like Lehman
The following report explores emerging markets from West to East which are at the helm of economic development trade and innovation and highlights what their rising popularity means for the growth of your business
Brothers required government bailouts of bulge bracket banks and shocked the global economy with a deep economic recession and even a deeper crisis of confidence Its most important legacy though may be one that has yet to fully unfold the crisis revealed a new world order in terms of economic and market dynamics Emerging market economies finally arrived as
30
Market IntelligenceANALyTICS
wwwthecfomecom
ENTERING EmERGING mARKETS STRATEgIES RISKS ANd OppORTuNITIES
Projected annual GDP growth 2014 amp 2015
PANAMA
67
PERU
RANK42
55
Projected annual GDP growth 2014 amp 2015
Ease of Doing Business
RANK55Ease of Doing
Business
TOP TEN MARKETS
(1) Source here Accenture Research ldquogearing up for growth ndash five imperatives for success in emerging markets 2011 Henry Egan and Armen Ovanessoff
31
Market IntelligenceANALyTICS
wwwthecfomecom
LATVIA
CZECH REP
MALAYSIA
THAILAND
SOUTH KOREA
CHINA
RANK75
41
21
50
45
35
74
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
CHILE
RANK 34
43
Projected annual GDP growth 2014 amp 2015
Ease of Doing Business
RANK 24Ease of Doing
Business
Ease of Doing Business
RANK 6Ease of Doing
Business
RANK18Ease of Doing
Business
RANK 7Ease of Doing
Business
RANK 96Ease of Doing
Business
POLAND
32
RANK45Ease of Doing
Business
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
Source httpwwwbloombergcomnews2014-01-29qatar-china-top-ranking-of-frontier-and-emerging-marketshtml
powerful essential and permanent contributors to global economic growth and sustainabilityrdquo
Bloombergcom recently ranked the top emerging markets based on their performance on 19 economic financial political and social indicators In order of ranking the top ten markets were
CHINA
SOUTH KOREA
MALAYSIA
CHILE
THAILAND
PANAMA
PERU
LATVIA
POLAND
CZECH REP
1 6
2 7
3 84 9
5 10
Market IntelligenceANALyTICS
32 wwwthecfomecom
Making an entryIf your business is looking to enter any of these emerging markets itrsquos worth considering the following checklist
1 Assess your readiness The biggest mistake you can make is to enter a market without proper evaluation of your business Donrsquot do it just because everyone else is Like every other major business decision be sure to speak to your Board of Directors partners investors stakeholders and most importantly your CFO and certified accountants Make a business plan enlisting your objectives goals investment strategy potential risks etc
2 Research research research Do your homework Treat emerging markets as any other international expansion venture and do thorough research on the new market ndash Who are the competitorsWhat is the price point for your product What are the customer demographics What kind of infrastructure do you need for the manufacturing production or distribution of your product
3 Understand the legal framework Emerging markets might not have rules and regulations as clearly spelled out as your home country Invest some time and money in understanding how business procedures work A very obvious area of focus for UAE-based companies is tax Since the UAE is a tax-free economy companies arenrsquot exposed to tax accounting and other legislation surrounding
ndash failing to adapt to the needs and expectations of the local customers is surely a recipe for failure Time and again companies havenrsquot been able to create a customised offer and have had to exit these markets with huge losses A success story however is that of the Haier Group Haier famously introduced washing machines to specifically suit the water pressure levels in the households of India ndash an emerging market strategy that worked very well in their favour and helped them become leaders in that sector Another great example is that of Coca-Cola as explained in an online Reuters article by Matt Reilly ldquoIn Brazil Coca-Cola has used social media to better understand consumer preferences and has developed a successful local network to supply traditional Coca-Cola products as well as fruit juices tailored to local tastesrdquo
7 Local currency This is a complex yet critical area to consider when entering a new market Ask yourself questions such as ndash What is the local currency rate How does it compare to the currency in your home country Is the country import-led or export-led and what impact can this have on the global value of the currency Remember that fluctuations in currency rates can hugely effect your overall investment and thereby the return on investment
8 Build partnerships When entering an unknown territory it is quite useful to have the backing and support of peers who can help you in case of unforeseen challenges This is
this Another area to consider is corruption ndash emerging markets are notorious for high corruption red-tape and bureaucracy Speak to your company lawyer to assess these areas and take proper measures to avoid them before-hand
4 Invest in local talent Working with people already accustomed to the new market avoids the hassle of relocation and reduces costs But more significantly gives you skilled talent to work in these unique environments This also works in favour of your company as it gives you a clear understanding of the kind of compensation packages you will have to offer to your employees For instance employees based in China might want high remuneration and low healthcare benefits while in India it may be quite the reverse Recruiting local talent will also have a trickledown effect ndash your employees will easily be able to cater to the local customer needs without the need for intense training
5 Supply chain 44 per cent of business leaders surveyed consider accessing the right supply chain capabilities extremely or challenging in emerging markets according to Deloittersquos Globalisation Survey Make sure that you know who your suppliers will be what the production costs are whether their production procedures fit your time constraints and if the final product matches your level of quality
6 Cater to local market demands This is one of the most important aspects of all
Do your homework Treat emerg-ing markets as any other internation-al expansion venture
Market IntelligenceANALyTICS
33wwwthecfomecom
the very reason why Mergers and Acquisitions are a popular way to enter into emerging markets Many companies piggyback on their clients who are entering these markets For instance if you are an IT consultancy working on a major project for a manufacturing and trading company with operations across India and China you can use their resources and expertise to explore opportunities in these countries
Remember to consider these steps every time you enter a
new market as every locality has its own set of unique needs One strategy doesnrsquot fit all
Surviving fierce market conditionsWhile the massive opportunity that lies within emerging markets paints a pretty picture businesses need to be wary of bottlenecks such as corruption volatility gaps in laws and regulations and strong competition There have been several high-profile cases of multinational companies withdrawing from emerging
markets owing to immense corruption pressures
There is also a high percentage of inherent risks in these markets which amount to many companies not succeeding in their first attempts It is important to take your time when adapting to these markets and fully understand the business dynamics Following recent case studies and going over the lessons learnt by multinational companies who have made an entry into these markets consider the below
bull Is your companyrsquos head-office ndash and senior management ndash located in your home country without any C-level representation in the new emerging market
bull Are you focusing all of your resources on doing business in the emerging market at the cost of losing profits in your home market
bull Have you researched local competitors in these markets who may already have a strong standing and proven models of success
bull Are you using the same ldquoentry approachrdquo and business model across different emerging markets
If your answer to one or more of these questions is yes it may be time to re-evaluate your presence in these markets and map out a different strategy
Finally remember that no matter what the outcome of your admission to these markets might be your business is sure to emerge out of this stronger tougher and ndash of course ndash ready for a new challenge
of companies believed they had invested more resources in
emerging markets than was required
entered a market without fully assessing the ability of the supply chain to support the expansion
entered with the wrong pricing model and an inappropriate
operating model
CONSIDER THE RISKS
48
24
20
There is also a high percentage of inherent risks take your time when adapt-ing to these markets and fully understand the business dynamics
Source Emerging markets expansion and the supply chain Economist Intelligence unit survey conducted on behalf of EY September 2010
34
CIMA INTERVIEW
wwwthecfomecom
The Chartered Institute of Management Accountantsrsquo (CIMA) Managing Director Andrew Harding visited Dubai to host the Institutersquos seminar on global management accounting principles In the wake of CIMA revising their well heralded syllabus Harding discussed with CFO Magazine what the newest edition held how CIMA is applying a digital focus to its courses and just how CFOs can gain from it all
CURATING CURRICULUm
35
CIMAINTERVIEW
wwwthecfomecom
can give CFOs something they can take and something they can measure their own management accounting services against They can benchmark using this and they can utilise this to see their progress
Part of that is having professional management accountant in place I donrsquot think the landscape matters I believe that there is a common business need wherever you may be around the globe
All of the emerging markets need these skills The first aspect that accounting schools teach is about auditing skills because theyrsquore interested in protecting investments Then they teach you how to keep your business sustainable and to have a sustainable business you need to have a management accountant in place So itrsquos not just here in the UAE where we see these demands we see the same demands in China Indonesia and other powerhouse economies We see their skills shortages and we see the need for solutions in those areas
Talk to me about how this new syllabus works to promote the evolution of a CFOThis syllabus that wersquove
Can you expound on just what can be found within the new CIMA syllabusWe just revised the syllabus we do that every four to five years What we have done this year is a very significant revision It is based from a complex study that we have carried out to over 3000 people from 200 companies globally It is the very first revision since the joint venture with CIMA and AICPA So this has allowed us to attain a syllabus rich with all the data from all the continents in the world For the first time wersquove had real involvement from companies in the USA in this project
Why is the collaboration between AICPA and CIMA significantMost important is the Chartered Global Management Accountant (CGMA) designation that AICPA and CIMA both issue for qualified management accountants Wersquoll have a common curriculum and common examination which will begin on January 1 which gives us a global designation for management accountants wherever they are around the world There are plenty of accounting bodies who claim to be global but actually this is the only
genuinely global designation This is because it has the only one with a North American participation in it So we can say that the CGMA will be just as well-recognised in the USA as it is in Dubai
With the global landscape in mind how do you create an even objective that applies to localities which may prove widely differentialThe landscapes are different but businesses have common needs wherever they may be What wersquove particularly seen since the global financial crisis is that companies are actively looking to build management accountant capability to build that capacity within their organisations They donrsquot want to have a poor quality of information that lacks insight being used in their businesses So they see management accountants can bring solutions to that As a result of all the work wersquove done with companies who participated in the syllabus wersquove also put together a series of what we call Global Accounting Principles This is a series of principles which describes what good management accounting looks like and what top quality management accounting in a company should be producing This then
ldquoCompanies are actively looking to build man-agement accountant capability to build that capacity within their organisa-tionsrdquo
36 wwwthecfomecom
worked on acknowledges the skill set needed by professionals throughout their career Therersquos a base level of competence that is needed but beyond that there is more There is business acumen the ability to communicate and influence and finally the ability to lead So you start off enhancing your raw technical accounting skills Then you need to place that into the context of the business that you are in Then as you move forward and as you rise to become the CFO yoursquoll need the others You have to learn how to present your work in a way that can influence and make an impact in the business The final piece is the ability to lead projects and other functions and to a great extent lead the board of directors Thatrsquos how the context works itrsquos not just about technical knowledge
How do you find that CFOs in the GCC region are responding to this programmeThe CFO has a real challenge on his hands now In 1975 80 per cent of corporate value is showing on the balance sheet By 2010 that dropped to less than 20 per cent Your traditional PampL reports no longer reflect the value of the business or how the business drives value
All things that should be of interest to investors is missing With things like the integrated report initiative wersquore starting to see the other dimensions that add value to business For CFOs thatrsquos all about strategic thinking and considering the long-term objectives Being articulate in implementing those strategies keeping in mind the risks and opportunities that the business faces We are also nowadays witnessing a whole new world of transparency around that
Are there electronic aspects to CIMArsquos advancing approachThe interactive case study simulates a real working situation and it tests how they can apply their knowledge in real life situations Theyrsquoll be presented with a scenario a few weeks before they take the exam so they can prepare for it They then go to an exam centre where they are asked questions about how they will deal with a certain situation in the real world Theyrsquoll get an email from the CFO giving them a certain task for a particular period of time We want to make it as close to reality as possible so students taking the exam will be assessing situations based on real life scenarios
ldquoThe CFO has a real challenge on his hands now as traditional PampL reports no longer reflect the value of the businessand [the role] must focus on strategic thinking and considering long-term objectivesrdquo
218KCIMA members worldwide
STAT FACTS
CIMA INTERVIEW
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
38
ERPANALyTICS
wwwthecfomecom
Faster more nuanced IT solutions are available to the modern day CFO Whilst Chief Financial Officers are called upon to analyse data across a number of spectrums the digital tools on hand are likewise being expanded to aid in focusing more squarely on the bottom line
ExCELLING WITH ERP
The global landscape is today firmly entrenched within a digital model As a result CFOs whom are called upon to take a larger role in a number of variables must also increase their abilities with respect to utilising the many upsides which tech innovations offer a business When surveyed about their most pressing concerns CFOs generally return a varying collection of responses Revenue growth regulatory changes and meeting quarterly goals are among the chief concerns Virtually every obstacle can be hurdled by way of maintaining the order of financial reporting and data which has long been
synonymous with the Chief Financial Officerrsquos remit A widening berth of ERP solutions is making this data all the easier to come by
Despite how sophisticated the market is today it was not long ago that ERP departments once spent days processing business reports
Said Rohan Tejura Assistant Vice President Focus Softnet ldquoTraditional ERP systems were solely data repositories Moreover these repositories werenrsquot real time and were incredibly dependent upon locational connectivity With the emergence of smarter development platforms more versatile devices and
39
ERPANALyTICS
wwwthecfomecom
more intuitive designs of system development the overall experience of the ERP now extends from data warehousing to reporting analysis trend mapping business intelligence and governance oriented capabilities Yet these solutions amazingly execute all of these deliverables via portable handheld devices and through cloud environmentsrdquo
New generation ERP systems must now be on the go whilst including up to the minute analytics to provide deeper insight into the business ERP Analytics tools use historical data captured from various business functions to provide valuable information for efficiency and business performance each incredibly priceless to a leading CFO
Finesse is an ERP provider which is continually addressing the transformation of output which the ERP industry is offering the equally transitioning role of CFO
ldquoWe provide end-to-end business management solutions to SMEs and Enterprises Our approach to ERP is much more than providing simply an operational management systemrdquo said Finesse COO Sunil Paul
ldquoWe believe that todayrsquos businesses need much more than integrating sales with inventory accounting and manufacturing but also to have seamless integration with all their sales channels including the point of sales ecommerce and inbound sales solutionsrdquo
A major im-petus of the ERP-cen-tered growth is based on how effec-tive com-prehensive real-time data proves to be for the CFO
40 wwwthecfomecom
before thereby creating new global benchmarks for overall economic growth
Microsoft Arabia CFO Sadrul Khan offered insight into just how far the knowledge economy has influenced regional financial leadership by explaining how one of the most prioritised technologies by CFOs in the region is social platform monitoring
ldquoOne of the five technology choices that CFOs tend to prioritise in boosting productivity efficiencies and faster decision making in the fast paced business environment which include a social platform that monitors trends customer sentiments and helps process mashable data for customer centricity and business growthrdquo said Khan
A major impetus of the ERP-centered growth is based on how effective comprehensive real-time data proves to be for the CFO Whether employed as on-premise ERP software-as-a-service or cloud-based solutions a nearly identical ethos is being utilised Allowing the CFO to quickly access the performance of all facets of a business is paying dividends in the boardroom a reality which is showing itself increasingly in the Middle East
The technologically-charged relationship between ERP solutions and the regionrsquos CFOs is expanding and as a result has catalysed what many see as GCC economic performance outstripping that of many economies outside of the region as a result
In order to compete in todayrsquos fiercely competitive environment organisations need to think both innovatively and out of the box They require more insights about their business and their customers and need to ensure that they are able to meet the expectations of their internal as well as external stakeholders Enormous amounts of data both structured and unstructured is continuously being generated within the internal and external systems of the organisation which if analysed can be of immense value both to the business and subsequently the stakeholders associated with the organisation
With the the era of CFOs labouring over spreadsheets now in the past given how many business frontiers have become so dependent on mobile options such as the cloud more and more tech companies are providing the regionrsquos CFOs with information technology that converts traditional internal and external data into rich visual insights This information is then used for faster decision making and provides the ability for a CFO to assess manage and control risks Regional CFOs have grown enabled to drive corporate strategy accordingly demonstrating how the knowledge economy is now in full force amongst the Gulfrsquos corporates
Given that advanced IT has now become a regular CFO tool the regionrsquos CFOs are subsequently making faster decisions and driving internal growth models with greater speed and agility than ever
Tech companies are providing the regionrsquos CFOs with information technology that converts traditional internal and external data into rich visual insights
ERPANALyTICS
Donrsquot discoveritrsquos counterfeittoner afteritrsquos too lateOriginal HP Toner works first time every time1 unlike cheap toners which fail over half of the people who try it2 Non-HP toner can compromise your printerrsquos performance to give you streaked blotchy or faded prints Only original HP Toner cartridges deliver unmatched quality for the most professional-looking prints 100 of the time1
1 A QualityLogic 2010 study commissioned by HP comparing original HP LaserJet Monochrome print cartridges with nine brands of non-HP toner cartridges available in Europe Middle East and Africa for the HP LaserJet P1505 and P4015 printers HP 36A and 64A For details see wwwqualitylogiccomEMEAmonotonertestpdf 2 From a 2012 EMEA Lyra Research study commissioned by HP Results based on a total of 1050 HP Color LaserJet users who have used both original HP and non-HP toner cartridges of whom 552 experienced problems with non-HP cartridges
copy 2014 Hewlett-Packard Development Company LP
42
Private Equity ANALyTICS
wwwthecfomecom
The rise of PE-backed acquisitions is forcing CFOs to develop an entirely new set of skills
THE PRIvATE EQUITy CFO
The CFOrsquos utility in the world of private equity is without question on the rise The once-held belief of the CFO existing solely as the ldquoaccounting guyrdquo has been abandoned Over the last 20 years the role of CFO has become more demanding - requiring not just finance and accounting acumen but also a financial literacy in corporate planning risk management MampA assetliability management and regulation This evolution has been driven by a number of
key factors Yet the private equity industry which is now reshaping the corporate landscape through active ownership is by far the most significant factor driving change within the role of the CFO
PE-backed buyers today represent a larger percentage of overall buyers in the corporate acquisition marketplace than ever before Data provider Prequin estimates that as of June 2014 the capital raised by PE funds that
has not yet been deployed amounts to $114 trillion globally The result of this ldquodry powderrdquo is that a vast quantity of corporate acquisitions in the coming years will be undertaken by the private equity industry As such CFOs will be more accountable to demanding ldquosmart moneyrdquo shareholders than at any point in recent history Budgeting accounting and financial reporting will no longer exist as sole priorities but as a core competency among a
ldquoBy effec-tively using real-time data CFOs can create a dynamic process that proac-tively drives performance account-ability and value crea-tionrdquo
By Aaron Heidari
43
Private Equity ANALyTICS
wwwthecfomecom
robust set of complimentary and required skills Most of all the bar for CFOs is rising as PE investors will only accept above-average performance from their management teams
CFOs were once more reactive in function setting budgets based on other executivesrsquo plans and managing the flow of reporting to shareholders on a quarterly and yearly basis Today CFOs are required to become proactive managers of their respective businesses alongside their C-suite compatriots using a granular data-driven approach to aggregate analyse implement and report on every aspect of a companyrsquos operations
An important tool to drive this value creation process are KPIs Yet KPI structures including both aggregation and output are generally not up to the standards required of private equity investors prior to an investment being made
ldquoThe benefits of using KPIs and monthly reporting packages are significant By effectively using real-time data that is actionable and by partnering with functional area leaders within the organisation company CFOs can create a dynamic process that proactively drives performance accountability and value creationrdquo said Amanda Robinson Vice President of Accordion International in Dubai a consulting firm which is comprised of former private equity and investment banking professionals who
MENA region Cumulative Funds Under Management Since 2008
Source Zawya private Equity Monitor
19 636 20 36321 586
22 64323 506 24 250
-
5000
10000
15000
20000
25000
2008 2009 2010 2011 2012 2013
Cu
mu
lati
ve f
un
ds
($ m
)
$15mAverage MENA PE investment size in lsquo13
50Percentage of investment in IT and energy sectors
STAT FACTS
44 wwwthecfomecom
work with companies to deliver cost-effective project execution services
Active shareholders whose money it is being spent will typically require a data-driven justification before approving any budgets capital expenditures or new acquisitions Furthermore in many private equity backed companies the use of debt and the matching of shorter-term bank financing with longer-term investments will only be considered after a robust analysis is conducted to understand the companyrsquos ability to service that debt in the future This evaluation is not simply to identify revenues expenses and profits Itrsquos about drilling down into every transaction and rooting out data processing and reporting At least that is the expectation
The most valuable CFOs are those who have the ability not just to scrutinise and understand the financials but all also possess a wider grasp of the underlying data which truly comprise the business As an investor who has just acquired a stake in a new business I want a CFO who can manage the transition and stay ahead of my expectations Most of all a CFO should impress upon the companyrsquos shareholders a new way of doing business The first 100 days of an acquisition are said to be the most important During this period the CFOrsquos worth will be established when the new financial plan is due and the platform for the next five years of growth is presented
A CFO should man-age the tran-sition stay ahead of expectations and impress upon the companyrsquos shareholders a new way of doing business
Investment Volume By Sector Since 2006
Investment Volume By Sector in 2013
Source Zawya private Equity Monitor
1
3
30
17
3
28
3
4
6
4
6
5
17
9
9
6
9
5
8
6
6
2
3
10
Education
Education
Information Technology
Information Technology
Other
Other
Telecoms
Telecoms
Media
Media
Transport
Transport
Oil amp Gas
Oil amp Gas
Healthcare
Healthcare
Consumer goods
Consumer goods
Food amp Beverages
Food amp Beverages
Leisure
Leisure
Manufacturing
Manufacturing
ANALyTICS
Private Equity
2000857 NBAD ratibi mag ad 200x268 Finalindd 1 92514 1017 AM
46 wwwthecfomecom
THE FUTURE OFACCOUNTING EDUCATIONAddRESSINg THECOMpETENCY CRISIS
Have you ever stopped to think about how the accounting profession has changed since you graduated from college Recent graduates can answer this question by reflecting on the last two or three years whereas for other more seasoned professionals answering this question requires a bit more thought and memory searching Indeed we can all think of ways that the field of accounting is remarkably different today from the one we likely envisioned during our college daysmdashregardless of which decade we each donned our cap and gown This gradual transformation of the accounting profession leads to two important questions related to competencies bull Which competencies are important for success inaccounting todaybull Were these competencies consciously developed as partof your accounting degree programme
We suspect that more than a few of you would answer ldquonordquo to the second question Put another way our profession may be facingmdashmore so than at any time in the pastmdasha ldquocompetency crisisrdquo that is a gap between the competencies needed for professional success and those taught in our college classrooms today We propose a three-pronged strategy or ldquogame planrdquo for overcoming this competency crisis and in turn better preparing accounting graduates for the challenging world they will face First all of us accountants need to understand the changes that have already taken place in our profession and perhaps more importantly anticipate the changes that are on the horizon Second we need to educate ourselves and future generations of accountants so that as a collective group we can deliver the expanding set of competencies demanded in todayrsquos dynamic organisational
contexts Third as professional organisations and as individuals we need to think beyond ourselves by asking How can I (or we) help the accounting profession address the competency crisis
A Shift Toward Integrated ThinkingMany articles and white papers have been written that describe in detail the changes that have occurred in our profession over the last few decades but for our purposes wersquod like to distill these changes down to one crucial idea How does the accounting function add value to an organisation Accountants have evolved from support-oriented personnel who hand off information to others who actually make decisions into business partners who ldquohave a seat at the tablerdquo with managers
By peter C Brewer James E Sorensen CpA CgMA and david E Stout
47wwwthecfomecom
1048576bull What regulatory risks mayaccompany the proposal
1048576bull What social and environmentalfactors will we face if for example the proposal requires investing in overseas operations
1048576bull What types of employeeresistance may arise if we implement the proposal and how will we overcome the root causes of any such resistance
1048576bull Can and how should we valuefuture options associated with the proposal such as expanding or contracting the investment over time as new information becomes available
1048576bull Should we use debt or equity tofund the proposal
In short accountants have evolved to become integrated thinkers who enable EPM by partnering with managers across the organisation to add value Yet as EPM has gradually become the centrepiece of our professionrsquos value proposition accounting education hasnrsquot done enough to embrace it To overcome this gap wersquod like to further suggest that the concepts of competency integration and EPM need to come ldquofront and centrerdquo as we move forward in educating the next generation of successful accounting practitioners
Accounting Education No Longer on the SidelinesRecently a task force consisting of members of IMAreg (Institute of Management Accountants) and members of the Management Accounting Section (MAS) of the American Accounting Association (AAA) addressed the competency issue How should accounting education change fundamentally to help close the competencies gap The efforts of the task force led to
cash flows and how to apply discounted cash flow (DCF) decision models such as net present value (NPV) is of foundationalmdashsome might say critical mdash importance But integrated thinkers draw on an understanding of organisational strategy coupled with a broader set of competencies (beyond what might be considered technical or foundational knowledge) when making these types of decisions For example they consider how behavioural issues may influence the capital investment decision-making process Perhaps the financial estimates contained in the NPV analysis are too optimistic because the manager who prepared the numbers has a vested interest in seeing the project approved Decision makers also need to consider issues such as leasing vs buying a capital asset and the corresponding impacts on the financial statements and ratios that are tracked by investors and lenders What nonfinancial factors are associated with the proposed investment Add in the tax consequences of capital investment decisions coupled with the need to maintain internal control over any new business processes tied to these decisions and the need to think in an integrated fashion across a variety of accounting competencies becomes apparent
Furthermore becoming a true business partner with managers across the organisation requires more than simply integrating various accounting competencies It also means thinking like a business manager or a chief executive officer (CEO) Returning to the capital budgeting example an integrated thinker will ask questions such as
across the organisation Together they formulate and plan strategies then participate in collaborative decision-making processes that execute those strategies in a manner that adds stakeholder value Said another way accountants have evolved to become enterprise performance managers This shift in our orientation from a support function to an enterprise performance management (EPM) role has enormous implications for defining the determinants of success within our profession the most important of which involves becoming collaborators and ldquointegrated thinkersrdquo Take for example a common but important business decision process capital investment analysis Certainly technical knowledge regarding how to estimate relevant after-tax
48 wwwthecfomecom
expanding capital budgeting discussions to include financial statement impacts tax consequences and internal control issues integrates topical coverage across the External Reporting and Analysis Taxation Compliance and Planning and Assurance and Internal Control competencies shown in Figure 1
Third accounting curricula can incorporate a broader set of management competencies For example evaluating capital investment proposals from the perspectives of change management (Leadership) social and environmental issues (Ethics and Social Responsibility) regulatory concerns (Governance Risk and Compliance) and capital structure (Additional Core Business Competencies) brings a CEOrsquos perspective to the decision-making process
Fourth accounting curricula should include foundational competencies such as proficiency with spreadsheets and written and oral communication In the context of capital budgeting this may include asking students to use Microsoft Excel to perform a sensitivity analysis and then to present their findings to the entire class
Working to Fix the ProblemAt this point although you may agree with us that therersquos a competency crisis within the accounting profession you may be wondering What does this have to do with me What can my organisation do to help address this so-called competency crisis The answer a lot Practice partners and academic partners can help the accounting profession overcome the competency crisis That said letrsquos take a closer look at the role of practice partners first
improvement) and accounting competencies (external reporting and analysis planning analysis and control taxation compliance and planning information systems assurance and internal control and professional values ethics and attitudes) Of critical importance to the framework is the assumption that the set of competencies contained in Figure 1 would be developed and integrated over time through a blend of formal education (including continuing education) training and job experience
What levels of integrationmdashon the road to developing integrated thinkers in accountingmdashare possible First accounting educators can integrate within a single accounting competency So referring back to our capital budgeting discussion teaching computational models such as NPV analysis coupled with a review of various behavioural issues associated with capital investment decisions would be an example of integrating within the Planning Analysis and Control competency listed in Figure 1
Second professors can integrate across accounting competencies For example
a recently published article that contains a proposed framework for accounting education reproduced here as Figure 1 The framework is general in the sense that itrsquos meant to apply to all accounting students not subgroups based on career specialisation such as tax assurance services corporate finance and the like Itrsquos based on the idea that accounting educators can better prepare students to deliver our professionrsquos EPM value proposition through integrated competency-oriented curricula (For more see ldquoFocusing Accounting Curricula on Studentsrsquo Long-Run Careers Recommendations for an Integrated Competency-Based Framework for Accounting Educationrdquo in the May 2014 edition of Issues in Accounting Education)
A glance at Figure 1 reveals three levels of competencies foundational competencies (communication ability to leverage technology and analytical thinking and problem solving among others) broad management competencies (including leadership ethics and social responsibility and process management and
Proposed Competencies-based Framework for Accounting Education
FOUNDATIONALCOMPETENCIES
ACCOUNTING COMPETENCIES
BROAD MANAGEMENT COMPETENCIES
leadership
ExternalReportingamp Analysis
PlanningAnalysis
amp Control
TaxationComplianceamp Planning
InformationSystems
Assuranceamp InternalControl
ProfessionalValues Ethics
amp Attitudes
Communication
Quantitative
Interpersonal
Technological
Analytical Thinking ampProblem Solving
Ethics amp SocialResponsibility
ProcessManagement ampImprovement
GovernanceRisk amp
Compliance
AdditionalCore BusinessCompetencies
Although you may agree with us that therersquos a competency crisis within the account-ing profes-sion you may bewondering What does this haveto do with me
A practice partner should be or become a CMAreg (Certified Management Accountant) maintain professional certification by completing required Continuing Professional Education (CPE) hours and regularly read the IMA publications Strategic Finance and Management Accounting Quarterly
In addition there are a number of excellent resources that deal with topics covered in this article and that IMA makes available to its members
Strategic Finance PowerPacks(wwwimanetorg SFPowerPacks) These are resources focused on contemporary topics similar to those discussed earlier Current offerings include Risk Management Strategic Planning IT Skills amp Software and Internal Controls Each PowerPack includes a combination of resources such as research studies articles and links to webinars
Statements on Management Accounting (SMAs)(wwwimanetorgresources and_publicationsresearch_ studies_resourcesstatements on_management_accounting aspx) SMAs represent monographs classified into one of the following six categories Leadership Strategies and Ethics Technology Enablement Strategic Cost Management Business Performance Management Finance Governance Risk and Compliance and the Practice of Management Accounting Multiple items are available within each category For example the Practice of Management Accounting category includes (among other items)
49wwwthecfomecom
the Definition of Management Accounting and Implementing Shared Service Centres
Research Studies (wwwimanetorgresources_and_publicationsResearch_Studies_and_ResourcesAll_reportsaspx) The ldquoThoughtLeadershiprdquo section of IMArsquos website includes research covering a broad range of issues classified into seven categories For example under the ldquoGlobal Business Environmentrdquo category the following two research reports are available ldquoKey Differences Between IFRS and US GAAP Impact on Financial Reportingrdquo and ldquoCosting Methodologies and Cost Management Practices in the Peoplersquos Republic of Chinardquo
IMA Leadership Academy (www imanetorgprograms_events leadership_academyaspx) As described on the IMA website this programme is designed to assess a memberrsquos leadership status enhance that individualrsquos skills (principally through monthly webinars) and recognise leadership achievements These benefits are free to members
How You Can Make a Bigger Impact In addition to attending local regional and national IMA meetings consider inviting a small group of students to each chapter meeting This could be a wonderful (and relatively low-cost) option for mentoring aspiring accountants and finance professionals providing networking opportunities and introducing students to cutting-edge issues regarding the practice of management accounting Joining a university accounting
advisory group may be another way to influence the development of EPM in that institutionrsquos curriculum design
Other methods to enhance EPM in your organisation include (1) forming user groups within your company your local IMA chapter or your industry to review and share EPM experiences (2) encouraging advancement in the firm to be linked to EPM proficiency (3) focusing your companyrsquos recruiting efforts on candidates who display a background in andor understanding of EPM and (4) organising cross training within your company to enhance a mutual understanding of each otherrsquos respective roles
Finally visit the Competency CrisisTM website (http competencycrisisorg) set up by IMA to unite the accounting and finance constituencies professionals students employers academics and professorsmdashand explore competency issues through the lens of each stakeholder group The site is designed to ldquoencourage a discourse spur action and create a community dedicated to resolving the serious crisis of competency present in the professionrdquo Special sections of the website are devoted to educators students and employers professionals
Our Partners in Education Much like a practice partner an academic partner should be or become a CMA maintain professional accreditation by completing CPE hours and regularly read IMArsquos publications
Academic members of IMA can pursue and actively promote the CMA programme at their respective institutions
50 wwwthecfomecom
IMArsquos website contains helpful resources including an exam content overview content specification outlines for each of the two parts of the CMA exam and learning outcome statements The current exam covers some of the professional competencies represented in Figure 1 A summary of changes to exam content which will be effective in January 2015 is provided on the IMA website in News amp Media Relations which is located under ldquoAbout IMArdquo (See the press release dated March 24 2014) Other helpful resources include ldquoICMA Announces CMA Exam Content Changesrdquo in the April 2014 issue of Strategic Finance as well as ldquoManagement Accounting Career Readiness Shaping YOUR Curriculumrdquo
These forthcoming changes are based on the most recent IMA study of the knowledge and skills needed by management accountants from the view of CFOs controllers and other accountingfinance professionals from around the world
Also consider taking a group of your students to the IMA Student Leadership Conference held each November The Conference provides excellent networking opportunities for you your students and practicing professionals Students can learn firsthand from Conference presenters the challenges and opportunities facing finance and accounting professionals today
Moreover if your institution doesnrsquot currently have an IMA Student Chapter consider forming one One of the authors of this article David Stout reinstituted the student chapter at his school (Youngstown State University) after travelling with a group of his students to the IMA
Student Leadership Conference in Cleveland Ohio Through an IMA Student Chapter on campus students are able to work closely with a sponsoring local IMA chapter and bring to campus speakers who are experts in a wide range of topics including those discussed earlier in this article Each year student chapters compete for an Award of Excellence (AOE) and recognition as an Outstanding Student Chapter In addition IMA student members are able to engage in networking activities leadership training mentoring and community service programmesmdashall through their local chapter
You also might consider volunteering to serve as a Campus Advocate In this role yoursquoll represent IMA in all major matters of interest to your students (scholarship opportunities starting a student chapter mentoring and the like) and to your institution (for example leveraging IMA resources to advance the relevancy of the accounting curriculum use of educational case studies published in the IMA Educational Case Journal and access to IMArsquos ethics curriculum)
And if you havenrsquot yet done this ask IMA to endorse your accounting programme (information is available at www imanetorgeducator_resources indexaspx) This programme is designed to identify business curricula that meet the quality educational standards required to prepare students to earn the CMA designation Endorsement is based on an analysis of the curriculum and topics covered on the two-part CMA exam Currently 12 programmes have been endorsed
Finally if your school has an IMA Student Chapter consider participating in the annual IMA Student Case Competition where students are asked to propose a solution to a real world problem (Cases are solicited each year by Raef Lawson IMA VP of Research and Policy and IMA Professor in-Residence) Finalists make their presentations at IMArsquos Annual Conference amp Exposition before a set of judges consisting of accounting faculty members and practitioners Each year a new case is published in the August issue of Strategic Finance for students to use for that yearrsquos competition
Working TogetherIn this article we have summarised the changes that have affected the accounting profession and provided a competencies-based framework for guiding accounting educators in responding productively to those changes As a management accountant you know that implementing change in any organisation let alone within an entire profession never comes easily To be successful in overcoming our professionrsquos competency crisis IMArsquos practice and academic partners will need to assume leadership roles in defining enterprise performance management as the cornerstone of the accounting professionrsquos value proposition
This article was orginally published in the August 2014 issue of Strategic Finance It appears here with the permission of The Association of Accountants and financial professionals in Business
We need to educate ourselvesand future generations of account-ants so that as a collec-tive group we can deliver theexpanding set of com-petenciesdemanded in todayrsquos dynamicorgani-sational contexts
THE POWERFUL AND THRIFTY OFFICE ALL-ROUNDERS
The new ECOSYS M3560idn series will astound you With their print speeds of up to 60 pages per minute they are among the most productive A4 bw multifunctionals on the market We nevertheless managed to keep their ecological footprint and total cost of ownership impressively low by using our well-known ECOSYS technology and equipping the devices with our renowned long-life components The result Not only less waste and lower maintenance costs but also less hassle for you and all your colleagues You will also greatly appreciate the many customisation possibilities of the devices equipped with KYOCERArsquos open solution platform HyPAStrade as it allows you to tailor the device to your needs So yes we are proud of our new range of MFPs and can hardly wait to share their numerous benefits with you
For more information please contactKYOCERA Document Solutions Middle East | PB Box 500817 DubaiUAE | Tel +9714 4330 412 | Fax +9714 4231 944KYOCERA Document Solutions Europe BV - wwwkyoceradocumentsolutionseuKYOCERA Document Solutions Inc - wwwkyoceradocumentsolutionscom
52
ACCAINTERVIEW
wwwthecfomecom
GLOBAL By ASSOCIATION
across the region from our key employers and learning provider partners to our active and growing student and member base I want to understand their challenges and priorities and how ACCA can work with them to help support the economic success of the region
What can a CFO gain from working with ACCAThe ACCA qualification is about complete finance professionals For CFOs it brings the technical knowledge vital to business success complemented with the strategic management skills and ethical competence crucial to an organisationrsquos success As an organization ACCA in the UAE brings CFOs access to that local and global network of peers and expertise along with our leading research and insights that help them to keep up to date on the issues that matter most
Are there any initiatives in place to leverage the recently announced partnership with AAA
How are the ACCArsquos many years of activity being applied to the Middle EastACCA has now had a presence in the UAE for well over a decade During that time we have established strong relationships across the Middle East epitomised by the recent signing of our Strategic Partnership with AAA As a national body in choosing to partner with ACCA they recognised the local and global perspective we bring We are continuing to work with students members and employers across the Middle East to build their networks knowledge and business success through events research and insights and access to a growing number of online resources
Which initial priorities are among your key aims upon joining the organisationrsquos efforts in the UAEIn the first few months I hope to build on the success of the team in the UAE My priority will be to meet as many of our key stakeholders
The Association for Chartered Certified Accountants (ACCA) provides its services across a number of international borders The recent announcement of Lindsay Degouve de Nuncques as the new head of the Associationrsquos UAE chapter further exemplifies the ACCArsquos reach based on her previous work in the UK Nuncques shares here what she brings to the Middle East and just how globalisation has driven her ascent
53
ACCAINTERVIEW
wwwthecfomecom
The strategic partnership with AAA is the first of its kind in the region Students who complete the UAECA qualification will be entitled to both the AAA and ACCA designations and ACCA members in the UAE will also be eligible to apply for AAA membership This is a very exciting development in the market and together AAA and ACCA will be working to deliver maximum value to all our stakeholders from this partnership As we launch the UAECA qualification this activity will start in earnest
Which key industries will you be spotlighting in the Middle East in the months aheadOur experience of working across all sectors and levels of organisations globally gives ACCA a unique insight into all types of industries We will continue to be working with employers across the spectrum in the months ahead to help them gain the insight and make the connections that drive businesses to succeed at whatever they do
ldquoThe ACCA qualification is about complete finance professionals For CFOs it brings the technical knowledge vital to business success complemented with the strategic management skillsrdquo
54
Islamic FinanceMARKET OUTLOOK
wwwthecfomecom
In its 10th instalment the Forum is hosted in Dubai as a direct result of the UAErsquos increasing importance in the world of global Islamic finance
THE WORLD ISLAmIC ECONOmIC FORUm LANDS IN DUBAI
In Dubairsquos continued quest for leading the world across a range of spectrums the Emirate accelerated its desire to become the worldrsquos leading hub for Islamic finance by hosting the 10th installment of the World Islamic Economic Forum (WIEF) Delegates from dozens of countries attended to take part in a three-day event held at Madinat Jumeirah which rests alongside Dubairsquos gleaming coastline Held under the patronage of His Highness Sheikh Mohammed Bin Rashid Al Maktoum the
Vice President and Prime Minister of the UAE and Ruler of Dubai key speakers included The Honorary Dr Zeti Akhtar Aziz Governor of the Central Bank of Malaysia HE Kairat Kelimbetov Governor of the National Bank of Kazakhstan The Honorary Datorsquo Sri Mohd Najib Tun Abdul Razal Prime Minister of Malaysia and HE Xavier Bettel Prime Minister of the Grand Duchy of Luxembourg
Launched in 2006 in Malaysia WIEF has grown in tandem with the increased
Delegates from dozens of countries attended WIEF to take part in the three-day event
sophistication and reach of Islamic finance After a successful event in London in 2013 amidst increased interest in Islamic finance across Europe WIEF relocated to Dubai where the local business structure is keen to host halal finance
Said Hamad Buamim President and CEO Dubai Chamber of Commerce and Industry co-organisers of the event ldquo[The forum] is the start of a new chapter of cooperation between Dubai and the world as part of
55
Islamic FinanceMARKET OUTLOOK
wwwthecfomecom
Dubai Capital of Islamic Economy visionhellipestablishing a unified regulatory authority to provide the framework for standards across halal industries will significantly accelerate growth Likewise we need to see increased cooperation and partnership between the public and private sectors This is already happening with great success here in Dubairdquo
The order of global cooperation needed to facilitate growth across the Islamic finance world was more than apparent at WIEF based on how many differing nations were represented at the event The exhibitorrsquos hall was populated with a number of key Malaysian stands representative of the Southeast Asianrsquos ranking as the global leader in Islamic finance Also present were companies from Saudi Arabia also a key locality in the worldrsquos halal industries An interesting yet prescient presence was of attendees from South Korea a nation which is eager to participate in Islamic finance and will be hosting the WIEF Pyeongchang Roundtable in December 2014
ldquoGangwon is a province located in Korea which is very interested in new business opportunities Wersquove realised the strength of the Islamic economy and have come here with many different companies The first type is based in real estate investment We also have companies which want to export their products to the Islamic economy based on their halal qualities And Gangwon will also be hosting the Winter
ldquoKorea is very interested in the strength of the Islamic economy and wants to export its products based on their halal qualitiesrdquo
56 wwwthecfomecom
$247trillionProjected value of halal products industry in lsquo18
125Muslim percentage of global tourism expenditure
STAT FACTSOlympics in 2018 and are presently seeking investments for this as wellrdquo said Seong-hun Kim a member of Gangwon Province Governmentrsquos Export Support Team
Dubai proved to be an excellent place for the event considering how well the UAE is able to so regularly corral international cooperation A key sign of this was witnessed recently when Luxembourg now considered the third most important base for Islamic finance globally opened a finance office in Dubai International Finance Centre The European nation also opened a euro200 sukuk earlier this year which was quickly oversubscribed
The prime minister of Luxembourg offered the WIEF audience a riveting speech which detailed just how international the Forum has become whilst encouraging more of the world to support the growing influence of Islamic finance
Said Bettel ldquoWe need to innovate more economic partnerships for growth We sometimes need to reengineer relationships but also have to make sure these relationships remain sustainable Growth in one country also brings growth to others as long as this is guided by free market initiatives Free trade and free flow of capital combined with innovation leads to prosperity We have all gathered here in Dubai to explore the future of Islamic finance and Luxembourg is also a pioneer of Islamic finance in Europe The Islamic financial sector has a major role to play in continued global growthrdquo
The Islamic Corporation for the Development of the Private Sector (ICD) is based in the Kingdom of Saudi Arabia where it manages an international fund worth $2 billion half of which is available for subscription With shareholders in more than 50 countries and a sovereign sukuk fund recently launched in West Africa the ICDrsquos CEO Khaled M Al Aboodi attended WIEF this year excited to participate in the global event
How does the ICD approach its attendance at the World Islamic Economic ForumI think the Forum is one of the best places for discussing the financial issues of the OEC member countries It has been around for ten years and has grown to become a very important platform for discussion Wersquore here to attend and listen but also to network Itrsquos a great networking platform and a place to share views whilst letting everyone know what we have to offer
How has Islamic finance changed over the yearsOf course itrsquos growing in a large scale Some of it actually needs more support particularly with respect to regulatory frameworks Wersquore trying to partner with many international organisations like the IMF to try to provide support to countries to adapt regulation for Islamic finance Sukuk issuance is one of the biggest issues that needs to be addressed because there is a huge amount of liquidity in this arena Due to issues related to regulation sukuk issuance can be costly But with the regulation we are confident it will be on a level playing field with other forms of finance Compliance is a major area where more work can be done The Forum started with a roundtable on sukuk which shows how helpful WIEF has been over the years
What type of work does ICD do internationallyICD helped the government of Senegal to issue the first sovereign sukuk This was successfully issued last summer Progressing in this manner is something wersquod like to see continue across West Africa in order to utilise its resources with aiding development in the region in mind
QampA WITH KHALED M AL ABOODI CEO OF ICD
Islamic FinanceMARKET OUTLOOK
OFFICIAL SPONSORS
ENDORSED BY OFFICIAL HOST OFFICIAL
COMMUNICATIONS PARTNER
MEYDAN HOTEL DUBAI UAE19 - 20 NOVEMBER 2014
WOMENOMICSthe next emerging market
TAKE PART in making change happen UNITE with business and through leaders from across the globe
PARTICIPATE to the expansion of a modern and inclusive economy
58
Gautam PradhanINTERVIEW
wwwthecfomecom
SUCCESS BEyOND BOUNDARIES
in other management roles such as strategic decision making mentoring and leading efficiency and productivity across a range of other departments and functions as well as a being a catalyst in ensuring that the boardrsquos vision for the organisation is achieved
A significant percentage of NMDCrsquos shares are owned publicly Does the CFO play a role in balancing the interests of the shareholdersAs a CFO balancing the shareholdersrsquo interests is definitely part of my responsibility In order to achieve this goal there needs to be a careful evaluation of each decision while keeping the short-term and long-term goals of the company in mind At NMDC we actively implement a system where we utilise a balance scorecard as a method of ensuring that all our primary objectives are met yet at the same time continuously enhance our relationships with our shareholders
NMDC has completed various projects across the Emirates Are there plans to move abroadAs NMDC moves towards becoming an international player our strategic expansion plans are focused in areas within the GCC region and India In line with this strategy we opened
How has a company with such a unique set of deliverables grown so consistently over the yearsOur organisation strongly believes that the core to our strength is the people process and equipment A strategic decision led by our Board of Directors and the senior management has been implemented that required us to consistently invest in these three aspects to help expand our business beyond the territorial boundaries of the UAE and at the same time enhance what we can offer which is relevant to these segments We attribute our success to the efforts which every employee contributes We also strongly believe in the ldquoWe can make it happenrdquo principle The management raises the index of performance while setting SMART objectives within the organisation and encouraging the employees to achieve them
How has your position as the CFO changed over NMDCrsquos 35 years of operationAs the market evolves and business dynamics change my role as the CFO has become complex and more challenging A few years back I was mainly focused on bookkeeping accounting and other financial responsibilities such as arranging bank facilities But moving forward I became more involved
The UAE is progressively becoming a hub for world-class infrastructure The country has duly impressed the rest of the globe with noteworthy land developments showcased across the emirates Among the remarkable landscapes found in Abu Dhabi are the Corniche Beach Yas Island and Sir Baniyas Island Behind these successful projects is NMDC the dredging division of Abu Dhabi National Oil Company (ADNOC)
In an interview with CFO Magazine Gautam Pradhan Chief Financial Officer NMDC shares an exclusive look into the companyrsquos international blueprint for growth and his dynamic role as a strategic leader of one of the best in dredging and marine construction in the Middle East
59
Gautam PradhanINTERVIEW
wwwthecfomecom
branches in Qatar Bahrain Oman and India This has paid rich dividends recently as projects of strategic importance are bagged in Qatar and Bahrain Furthermore NMDC (UAE) has recently played a key role as a leader of an international consortium with Royal Boskalis Westminister (Netherlands) and Jan De Nul Group (Belgium) for the awarding of the Suez Canal Dredging project in Egypt Moving forward we have devised a strategic approach that will enable us to play a key role in the development of Indiarsquos marine infrastructure
What are the global strategies that are part of the CFOrsquos responsibilitiesAs CFO understanding the macro economic scenario risk analysis and mitigating those risks are all a part of my responsibilities I also have to have a proper comprehension
ldquoA few years back I was mainly focused on financial responsibilities moving forward I became more involved in strategic decision making mentoring and leading productivityrdquo
Gautam PradhanINTERVIEW
60 wwwthecfomecom
of the challenges faced by the company in terms of dealing with foreign contracts direct and indirect taxes and hedging and managing the integration process These are essential to enhance shareholders wealth and mitigate undue risk
How significant is accountancy for NMDC in its operations Why exactlyAccountancy is the lifeline of any company it does not only record the finances it also reflects the health of the organisation The MIS reports analysis trends and statistical information go a long way toward effectively providing
the diagnostic approach essential for the company
How have NMDCrsquos environmental activities helped the companyrsquos bottom lineNMDCrsquos work is well-synchronised with our environmental activities and specifically with nature Our activities are closely linked to sand and water and we view such activities with strategic importance Projects such as increasing water supply to mangroves and beach nourishment help us support the environmental activities while adding to our bottom line
ldquoAccountancy is the lifeline of any company it does not only record the finances it also reflects the health of the organisationrdquo
A burgeoning slice of Abu Dhabi coastline
The largest business awards
in the GCC30th November Dubai
nominate now at wwwstarsofbusinessawardscom
Stars of Business has become an iconic awards brand like no other in the region It recognizes the very best SMEs across 26 business categories Itrsquos universally respected as scientifically assessed and unimpeachably judged
327000 SMEs across the UAE$234 billion estimated total revenue of the SME sector4974 Awards entries in 20131856 Individual company applicants
Presenting Partner Strategic SME Partner Gold Sponsor Gold Sponsor VIP Hospitality Partner Supporting Partner
Trade Facilitator PartnerTrade Credit PartnerLogistics Partner
Institutional Partner Institutional Partner Event Partner
OrganiserPublisherMedia Partner Media PartnerPort Authority Partner
62
David Allen INTERVIEW
wwwthecfomecom
What went into completing your bestseller ndash Getting Things Done (GTD)After twenty years of researching developing and implementing a methodology for achieving stress-free productivity based upon
thousands of hours spent desk-side with
some of the best brightest and busiest people in the world I decided to write the manual for it Thatrsquos what Getting Things Done is
What are the five phases of mastering workflowIn order to get
any situation under control so
you can focus you will utilise these five
steps Whether yoursquore managing your kitchen
or your company you will need to collect and capture what has your attention clarify what if anything to do about it organise it according to what it means to you review and reflect upon it in relation to
Todayrsquos evolving CFO is often caught between the world of business set-up generating revenue managing employees and building strong company infrastructure When can things actually get done What can one do to boost productivity and master workflow World-renowned business coach David Allen has the answers
PRODUCTIvITy PRINCIPLES WITH
DAvID ALLEN
63
David Allen INTERVIEW
wwwthecfomecom
those are greatly subvertedHow does one maintain a fair balance between the time spent planning and actually getting things doneYou simply need to spend just the amount of time you need to to trust that what you are getting done is the right thing to be getting done in the moment It takes as long as it takes to get to that point Why would you do anything less
How can one apply your core productivity and workflow principles to todayrsquos technologically driven environmentThe principles and their techniques are system-independent Whether you have meaningful input from the Internet your smartphone or a conversation in the hall you must engage with it equally Technology has simply increased the flow of input and ease of distraction in your world
There is a lot of talk about how connected wersquove become and how connectivity is driving tremendous business growth Does connectivity actually come with its fair share of downsides
Connectivity is obviously a two-edged sword We can have intimate productive and creative interaction instantly with someone on the other side of the world and we can just as easily be distracted and seduced into those engagements when they may not be the best use of our attention and resources Donrsquot shoot the medium Itrsquos all simply bringing attention to your clarity of direction and priorities or lack thereof
Could you share a few quick tips with our readers to instantly boost productivityWrite everything down that has your attention Decide the very next actions required to get closure on all of them Any next actions that require less than two minutes do instantly Park reminders of everything else somewhere that yoursquoll see when you can do something about them
We are currently facing a massive information overload What are some basic principles you could suggest to mentally organise such large amounts of dataConstantly ask yourself Where am I going Whatrsquos important and rewarding to me Is this information
the whole and then engage your resources with intuitive trust
As a CFO how can you transfer efficient workflow management skills to your employees Itrsquos very difficult to legislate processes for individuals ndash you can really only hold them accountable for their results But if you are managing your own commitments and intersections with them with integrity and rigour it will automatically force your team to ldquostep up to the platerdquo in their own behaviours in order to meet your standards If you request their complete list of their company projects and they canrsquot produce it thatrsquos a sign theyrsquore not in control If they make a commitment to you that they havenrsquot kept thatrsquos data about their performance GTD is simply about good operational business practices
With so many planning and organising activities in your methodology is there a risk of losing spontaneity as a strategistThe reason for these best practices is to optimise freedom creativity and spontaneity Without them
ldquoBut if you are manag-ing your own com-mitments and intersec-tions with them with integrity and rigour it will automatical-ly force them to ldquostep up to the platerdquo in their own behaviours in order to meet your standardsrdquo
64 wwwthecfomecom
supporting that Park whatever you find potentially meaningful somewhere that is easy to access when needed
Being an entrepreneur is a non-stop job How do you ensure that you have an adequate work-life balance Pay attention to what has your attentionmdashwith regard to anything Your health relationships career finances etc Notice when something might be ldquooffrdquo and make good decisions about what you need to do to get it back ldquoonrdquo again
Does your work teach people to be efficient or effective In essence they are the same thing Effective choices are generated by efficiency on a higher level If you want to implement strategy most effectively it demands utilising your resources optimally which is efficiency
Does motivation actually improve quality of work or purely quantityDepends on the focus of the motivation You can be motivated to work harder and you can be motivated to work smarter
What is your favourite productivity mantra that
you implement in your day-to-day lifeUsing my own in-basket and note-taking devices to capture potentially meaningful and valuable ideas and soon afterwards clearing all of them out by deciding what to do about them if anything
Your books seminars and other work inspires many individuals and businesses Who is your personal inspiration or role model I have many about many different aspects of my life The only person though that I ultimately trust as my best guide is my higher self which I try to access as frequently and clearly as I can
Finally what advice would you give to current business owners and aspiring entrepreneurs looking to gain complete control of their life and businessCapture what has your attention clarify what you need to do about it to get it off your mind organise the inventory of all your commitments at all levels review and reflect on all of that regularly relax and trust your inner wisdom to engage with the most appropriate thing in the moment
ldquoIf you want to implement strategy most effectively it demands utilising your resources optimallyrdquo
David Allen INTERVIEW
APPSTECH TALK
wwwthecfomecom 65
mAxImISE BUSINESS lsquoON-THE-GOrsquo WITH THESE HANDy APPS
ipAd SpECIAL
SAMSUNG UNvEILS GALAxY NOTE EDGE
Network
AP
Display
OS
Camera
Video
Audio
Additional Features
GoogleMobile Services
Connectivity
Sensor
Memory
Dimension
Battery
The availability of service may differ by country All functionality features specifications and other product information provided in this document including but not limited to the benefits design pricing components performance availability and capabilities of the product are subject to change without notice or obligation
Samsung Galaxy Note Edge Product Specifications
25G (GSM GPRS EDGE) 850 900 1800 1900 MHz3G (HSPA + 42Mbps) 850 900 1900 2100 MHz4G (LTE Cat 4 15050Mbps) or 4G(LTE Cat 6 30050Mbps)May differ by country and carrier
27 GHz Quad-Core Processor
56 inch (1419mm) Quad HD+ Super AMOLED (2560 x 1440 + 160)
Android 44 (KitKat)
Rear Facing 16 Mega pixel Auto Focus camera with Smart OISFront Facing 37 Mega pixel camera with f19Rear Facing Camera HDR (Rich tone) Selective Focus Rear-cam Selfie Beauty face Virtual Tour Shot ShotampMore Dual CameraFront Facing Camera Selfie Wide Selfie
Codec H264 MPEG-4 H263 VC-1 WMV7 WMV8 Sorenson Spark MP43 VP8 Recording amp Playback up to UHD
Codec MP3 AACAAC+eAAC+ WMA AMR-NBWB Vorbis FLAC()() Ultra High Quality Audio (~192KHz 24 bit) support
Multi WindowUltra Power Saving ModeVoice Recorder (Normal Mode Interview Mode Meeting Mode Voice Memo)Download BoosterS Health 35Dynamic Lock ScreenBriefingEdge screen UX Revolving Interaction Immersive apps(Camera Video S Note)Ticker board Express me Quick Tools Night Clock etc
Chrome Drive Photos Gmail Google Google+ Google Settings Hangouts Maps Play Books Play Games Play Newsstand Play Movie amp TV Play Music Play Store Voice Search YouTube
WiFi 80211 abgnac (HT80) MIMO PCIeGPS GLONASS BeidouNFC Bluetoothreg v 41 (BLE ANT+)IR LED (Remote Control) USB20 MHL 30
Gesture Accelerometer Geo-magnetic Gyroscope RGB IR-LEDProximity Barometer Hall Sensor Finger Scanner UV Heart Rate Monitoring SpO2 (Dependent on market)
32 64 GB Internal memory + microSD slot (up to 128GB)3GB RAM
1513 x 824 x 83mm 174g
Standard battery Li-ion 3000 mAh Fast Charging (Adaptive Fast Charging amp QC20)
wwwthecfomecom66
APPSTECH TALK
AIR DISPLAY
SQUARE REGISTER
Using this app you can connect your iPad to your computer and use it as an additional screen While working on an important presentation or sales proposal you can extend or mirror your computer screen on your iPad This app is compatible with both Mac and Windows computers Note that to use this feature you have to install Air Display on your iPad and a separate free app on your computer The computer and iPad also need to be on the same Wi-Fi network in order to work in-sync
For Mac users the app allows you to connect to up to four screens ndash all at the same time
Apart from the ability to convert your iPad into a wireless display whatrsquos also attractive about this app is that it allows you to control your computer wirelessly using your iPad
This fantastic application can serve as a mobile point of sale for your business It allows you to accept credit card payments ndash including Visa MasterCard Discover and American Express A transaction fee of 275 is charged for every time you swipe a card The sale amount is transferred to your account within two working days
Once you download the app you can sign up and register for a unique card reader solution called the lsquoSquare Readerrsquo (this is free) Square Reader encrypts all card details and ensures that the transaction is secure Once you receive your Square Reader you can connect it to your device and are all set
The application also offers added features such as transaction history connecting to a receipt printer creating employee logins and more
AED 3699
PRICE
Free
PRICE
wwwthecfomecom 67
APPSTECH TALK
DOCUSIGNHave you ever been in a situation where your employees need you to urgently sign a contract but arenrsquot able to physically reach you in time DocuSign solves this problem with its easy-to-use eSignature feature In three easy steps you can sign important documents and securely send them to your intended recipient
First you have to import the document to your device ndash this could be from Dropbox Google Drive or another select applications You then place your signature or any other important legal information you need to include such as initials Once you have finished working on the document send it back via e-mail
Whatrsquos particularly great about DocuSign is the great emphasis it puts on security ndash so that users donrsquot have to worry about getting into any legal trouble
Use DocuSign and never miss a deadline again
Free for basic version
PRICE
MPAYAn initiative by the Dubai eGovernment Department mPay is a simple application that allows you to make important payments Once yoursquove signed up and entered your payment details you are good to go You can pay your Dubai Electricity and Water Authority (DEWA) bills Etisalat utility bills Dubai Police fines Recharge SALIK and much more
A handy feature is its lsquoauto-rechargersquo option which you can use to set automatic payments
Free
PRICE
Opinion CIMAPERSONALITIES
wwwthecfomecom68
NEW HORIZONSBy geetu Ahuja Head of gCC at CIMA
The days of the traditional accountant working within a small community in a small town in a small market have long gone CFOs are now being referred to as Chief Frontier Officers as they travel from market to market overseeing their offices overseas This new expanded role has distinct advantages for both the company and the CFO who gain new skills and new insights from foreign branches a single hand at the helm of many markets provides business perspectives on a global scale and benchmarks across the board
On a personal level working abroad also has huge importance Robert Walters the specialist professional recruitment consultancy recently conducted a survey
of almost 2200 employees across a variety of professions exploring a number of topics which ranged from working practices and attitudes to careers The results highlighted some notable trends particularly for finance professionals
In career progression for example the survey showed that 50 of all accountants see working abroad as either lsquoessentialrsquo or lsquoextremely usefulrsquo to furthering their prospects more than banking professionals lawyers and IT workers ndash a strong indication of how accounting professionals are thinking about their future either within their existing company or with opportunities elsewhere
Accountants with globally recognised qualifications obviously have a greater chance of gaining some experience abroad and the lsquoGen Yrsquo professionals in particular seem ready to pack their bags In a CIMA study conducted in the UK last year over a third of those seeking employment in the
next two years will prioritise opportunities abroad over those in their home countries many of them enticed by the career incentives offered by the Middle East
How quickly can they land what seems to be their dream job What are the realities It may be that the move is simply from one branch to another and the only significant difference is a view from the window but for those expanding rather than changing their roles we have seen a very real need for a depth and breadth of knowledge never needed before
As geographical boundaries are pushed ever-wider a CFOrsquos responsibilities are pushed with them For many finance executives the understanding of their own patch of land is no longer enough they now have to be aware of foreign markets up to speed with foreign trends and au fait with foreign laws There is a need for a new commercial awareness in geography as well as philosophy
As geographical boundaries are pushed ever-wider a CFOrsquos responsibilities are pushed with them
John vargheseQampA
wwwthecfomecom 69
BUSINESSSET UP YOUR
IN THE UNITED ARAB EMIRATES
TO
WAREHOUSESOFFICES INDUSTRIAL LANDFLEXI
Quick and easy company set-up
Less than an hour drive from Dubai
Complete cost-effective packages including licences and facilities
100 foreign ownership
Zero income and corporate taxes
Eligibility for UAE Residence Visa
BUSINESS SET-UP SOLUTIONS STARTING FROM AED 15000 (USD 4000)
RAK FREE TRADE ZONE PROVIDES
RAK Free Trade Zone Authority - Government of Ras Al KhaimahUAE (Ras Al Khaimah) Tel +971 7 2041111 (Dubai) Tel +971 4 7041875 (Abu Dhabi) Tel +971 2 6994888
Germany (Cologne) - Turkey (Istanbul) - India (Mumbai)
Call +971 7 204 1111 Visit wwwrakftzcom Join rakftz
12
at CPI Media Group the discussion offered a candid conversation of lively opinions bringing together key individuals from prestigious and influential businesses based in the UAE
The spirited discussion delved into how varied and increasingly imperative the Chief Financial Officerrsquos role has become
Vincent Valladares Managing Director Middle East Head Citi Commercial Bank led the vibrant discussion with the support of Anand Nagaraj Vice President Head Product Development Citi Commercial Bank whilst Grant Thornton Partners Jay Raney and Amgad Nassif offered their views as well
CFO RoundtableMARKET OUTLOOK
wwwthecfomecom
One of the trends in world business currently attracting considerable comment and debate is the changing role of the CFO No longer simply the custodian of the businessrsquo finance or the head of accounts the CFO is increasingly seen as a master strategist and the key architect of corporate decision-making As such a roundtable event held by Citi - in collaboration with Grant Thornton - was both a timely and revealing landmark on shifting attitudes and aspiration
IN CHANGING TImESCITI COMMERCIAL BANK CORRALS A pOwERfuL MEETINg Of MINdS
The management guru Tom Peters recently commented that ldquoIn these perverse and perhaps illusory times is it any wonder that the CFO is seen as the one reliable point of reference - the one person from the C-suite cut out for more responsibility and bigger things in the businessrdquo
Citi Commercial Bank and Grant Thornton echoed the importance of this shifting role by gathering a collection of leading CFOs and finance executives at Dubairsquos Grosvenor House - hosting a keynote round table called lsquoThe Changing Role of the CFOrsquo In a world where CFOs are increasingly wearing a number of new hats within their respective enterprises the event asked pertinent questions such as -
ldquoThe CFOs duties have changed as strategy and other focuses are becoming increasingly importantrdquo
bull Whether the CFO is increasingly the businessrsquo key strategist bull Whether or not the role is more and more impacted by changing legislation and regulationbull Is the CFO now effectively the CEO-in-waitingbull What is the role of management education in this new mix
So while much has been written lately about how essential it is that the CFOrsquos function evolve and change the dayrsquos discussion took an overtly practical view and gathered the opinions of the individuals at its core
Hosted by Paul Godfrey Group Editorial Director
13
recession environment has created an atmosphere rife with new regulations which CFOs are expected to master as these international enterprises venture into new markets and encounter sensitive and risk management-oriented frameworks
Citirsquos Vincent Valladares observed ldquoRegulatory issues are becoming bigger for banks as well as compliance And when we look at doing business with companies we want to look at those with good management teams because otherwise it can become difficult The CFO plays a very important role within this processrdquo
CEO waiting in the wingsWhen the group was quizzed on their individual desires to become CEO every hand around the table went skywards with an affirmative ldquoyes all of usrdquo - highlighting how commercially-minded todayrsquos CFOs have become Not to mention just how axiomatic the relationship between CEO and CFO consistently proves to be
Another factor is that amid all this diverse change - in roles working contexts and background economics - the CFO is seen very much as the person creating order control and standardization No small task
Perhaps the only certainty is that the communication of ideas is leading the charge forward for one of the business worldrsquos most important roles and The Changing Role of the CFO provided a definitive benchmark for this onward march
CFO RoundtableMARKET OUTLOOK
wwwthecfomecom
Members of the roundtable trade ideas
Vincent Valladares offers his position
CFO or CCOldquoThe duties have changed in some very clear ways A phrase that I am constantly coming across and strongly agree with is that we should be thinking of the CFO as the Chief Commercial Officer as opposed to someone who deals solely with finance Responsibilities central to finance continue to exist of course but strategy and other focuses are becoming just as if not more importantrdquo commented Rishi R Vig ZAFCO CFO
In addition to how much larger a remit commercial decisions are demanding the importance of regulatory protocols was a much- discussed topic The post-
Vincent Valladares Managing Director Middle East Head Citi Commercial Bank
Anand Nagaraj Vice President Head Product Development Citi Commercial Bank
Jay Raney PartnerGrant Thornton
Amgad Nassif Partner Grant Thornton
Paul Godfrey Moderator Group Editorial Director CPI Media Group
Steven Pradia Assistant EditorThe CFO Middle East
Ganapathi Bhat Senior Manager of Finance GEMS Education
Mark Downie Financial Controller Proclad
Nimesh Lokhandwala ICAI
Jehangir Pocha Himalaya
Kamal Shah Finance Manager Logicom
Rishi Vig CFO Zafco
Low Wai Leng Financial Controller Dubai Precast
Rajeev Jain CFO Afri Ventures
KG Vincent Finance Director FDC International
Ramesh Pemmasani Head of Accounts Intersun
Nagesh Nadig AIC
ROUNDTABLE ATTENDEES
IndiaCOUNTRy FOCUS
wwwthecfomecom14
SUBCONTINENTAL SURGE
By Arvind Chari
Last year was undoubtedly a turbulent time for emerging markets due to political instability inflation and the fledgling recovery in the West all causing significant headwinds Unsurprisingly this has led some commentators to be sceptical about the prospects for these markets including India But the Indian economy is showing signs that it will weather the challenges of the next few years This may not be an easy task given the
manner the Indian rupee plunged in response to the US Federal Reserversquos decision to taper asset purchasing Nevertheless India does have the political will to make the necessary reforms to deliver on its potential
While the Fedrsquos decision has caused some fallout in emerging markets commentators expect that this will tail off over time Meanwhile Indiarsquos economy is driven by domestic demand which means that
India does have the political will to make the necessary reforms to deliver on its potential
With an eye towards the nationrsquos key partnership with the Middle East the following India country report shares economic prospects accounting for last yearrsquos instability ndash defining what investors can gain moving forward
IndiaCOUNTRy FOCUS
wwwthecfomecom 15
$791bTotal trade between India and the UAE in lsquo13
64Expected growth of Indiarsquos economy in lsquo15
Indiarsquos debt market needs to attract stable investors over lsquobond touristsrsquo short term foreign flows evident in Indiarsquos bond markets
it is better placed than most to deal with the world post-quantitative easing Without the so-called lsquotaper tantrumrsquo investors in India might have focused more on the positives in 2013 But given the overall improvements in the economy and the political outlook we feel the India narrative will be harder to ignore in Q4
One of the most significant changes has been the appointment of Dr Raghuram Rajan as governor of the Reserve Bank of India (RBI)
last year He is clearly part of a dying breed of central banker that is one who actually knows how the world works He will make mistakes but the most important thing is that he will be trying to move India in the right direction as shown by his decision to continue with a hike in interest rates at the end of January Bond and currency markets have reacted very well to this move which shows the bank is now ahead of the curve in fighting inflation In October Rajan remarked that
Indiarsquos debt market needed to attract stable investors over lsquobond touristsrsquo a reference to the short-term foreign flows that have been evident in Indiarsquos bond markets His stance is an indication that policies could be shifted to attract more long-term stable money into Indiarsquos government bond markets away from a focus on the foreign-bank lsquoproprietaryrsquo investments that dominate flows currently
Indiarsquos current account deficit (CAD) was set to halve
STAT FACTS
IndiaCOUNTRy FOCUS
wwwthecfomecom16 wwwthecfomecom16
in the year ending March 2014 It was due to fall to 25 from 48 of GDP in 2013 The fall in gold imports alongside currency depreciation was a major contributing factor to this reduction Indiarsquos exports became more competitively priced over Q1 2014 which has led to higher exports in textiles chemicals and leather goods while the drop in the value of the rupee has also led to a fall in non-oilgold imports We expect the CAD to increase to around 3 of GDP for this financial year as gold import restrictions are removed a shift that should still be easily fundable Additionally the RBIrsquos FX reserves have increased by $34bn through the bank and non-resident Indian deposit swaps which was a much higher figure than anticipated This gives the RBI the additional firepower to intervene in the markets if it is necessary to counteract currency volatility In fact the
rupee has been remarkably stable since October and has steadily outperformed its other lsquofragilersquo emerging-market peers
There has also been an improvement in how other countries perceive India Net foreign direct investment is stable despite some negative sentiment driven by the outflows from the bond markets and banks Vodafone described by Rajan as lsquothe poster child for companies with difficulties in Indiarsquo is investing more in spectrum and also buying out minority operators In addition significant Japanese investment into Indiarsquos infrastructure is a further boost to the country and this relationship will be one to watch over the coming years
Overall the world has a much better impression of India than it did a few years ago when the country was facing significant obstacles In 2010 increasing inflation expanding fiscal deficits and an escalating CAD ndash all coupled with slowing growth rates ndash put India in a very difficult position But in 2012 the government realised that the current situation could not continue and since then there has been a much greater focus on reform
A mixture of poor growth and bad policies dramatically hampered Indiarsquos progress earlier this century frustrating many investors But the country is now beginning to drive a wedge between itself and the other more troubled emerging-market economies We feel
162KIndian tourists in Abu Dhabi yTD
Significant Japanese investment into Indiarsquos infrastructure is a further boost to the country and this relationship will be one to watch over the coming years
STAT FACTS
IndiaCOUNTRy FOCUS
wwwthecfomecomwwwthecfomecom 17
Population size 12 billion
Area 3287263km2
Type of government Federal republic
Official language Hindi
Capital city New Delhi
Largest city New Delhi
GDP (2012) $1825 trillion
Central government debt as a proportion of GDP 67
Currency Indian rupee
Conversion rate against the euro 0013
COUNTRy FILE
Hire a local manager or partner who has a very good
understanding of local rules and regulations
Have a longer-term investment horizon because the Indian rupee will remain
volatile for a while
donrsquot view volatility as a risk view the
integrity of the government and
management as a risk
Travel to India and feel the lsquomicrorsquo India
story rather than just read about the lsquomacrorsquo India story
Be patient and have realistic
expectations ndash things take time to work out in India
TOP TIPS FOR DOING BUSINESS IN INDIA
that these differences will mean that India significantly outperforms those economies over the coming years And while we might still be facing some turbulent times for India at least the dark clouds are beginning to break
As with any emerging-market economy the next few years will present challenges alongside opportunities and investors will have to
be comfortable with this state of affairs But India is committed to making the reforms it needs to improve its future The country has much better potential for growth than any developed country and it is also in a far better position than many of its emerging-market peers Now is the time to take advantage of all that India has to offer to investors
INNOvATIONrsquoS BOTTOm LINE Bill Chappell occupies a rare space as the CFO of Dubai Silicon Oasis a free zone dedicated to the development of technology across the emirate In the following interview he shares with CFO Magazine how far along technology has come in the UAE and why the figures are the most important aspect of his role as Chief Financial Officer
18
Cover StoryTECHNOLOGy
wwwthecfomecom
Dubai Silicon Oasis (DSO) occupies a vast 72 million square metre stretch of land in the northern reaches of the UAErsquos most globally recognised emirate Established in 2005 as a government-owned free zone devoted to the development of technology DSO has in the time since welcomed over 1087 companies into a space of which more than 59 of has been developed
Responsible for liaising with DSOrsquos companies both large and small whilst overseeing the free zonersquos balance sheet CFO Bill Chappell mans a unique station as a finance
executive with a keen eye for technological growth
ldquoIrsquove been with Dubai Silicon Oasis for nine years and my role is rather split I am the finance director but Irsquom also responsible
for our initiatives on technology incubation
and investment which is all very interestingrdquo
Chappell said Despite Chappellrsquos
years of experience in the technology industry granting him an imperatively strategic purview as CFO he makes clear what is most important as Chief Financial Officer
ldquoGetting the numbers right must always be the number one thing People talk about strategy and a number of other things but you must focus on the numbersrdquo
Chappell offered ldquoMy background is in technology companies for over ten years previous to coming here so I have a knowledge of technology which I brought to Dubai above all My overlap personally involves understanding technology whilst being a CFOrdquo
When Dubai Silicon Oasis first came into existence the area was undeveloped with no roads customers or residents Today the oasis acts as both a home for industry and residence whilst the Dubai Silicon Oasis Authority operates a number of services unique to companies which operate within the free zone A business incubation centre venture capital funding structure and various forms of entrepreneurial support are among DSOrsquos many aspects available to tenants
Said Chappell ldquoThere are three categories of companies at DSO There are smaller companies which deal more largely with our entrepreneur and incubator ecosystem The other extreme involves global firms such as Fujitsu or SAP and we look at their needs and make sure theyrsquore satisfied as customers They want our help to get setup And then there is the middle group and I meet them if they need my help as CFOrdquo
DSO counts SAP Porsche Fujitsu and Qordoba among its vast bank of companies
19
Cover StoryTECHNOLOGy
wwwthecfomecom
each of which are granted access to the Chappellrsquos well-honed expertise
ldquoBill has been involved in several meetings to gain updates about the company and offer input on what he thinks we should be focusing on whilst asking questions about our financial processes He also sits with the board on occasionrdquo said Loulou Khazen Baz founder of Nabbesh an online marketplace which connects professionals with work opportunities
ldquoDubai Silicon Oasis has been an important Investor at various stages of Nabbeshrsquos journey and a vital stamp of approval Our company has found priceless value in DSOrsquos support and the approachable nature of an involved CFO like Billrdquo
Chappell faces a number of challenges related to investment due to the region not ranking tech developments as high as traditional platforms such as real estate Additional concerns related to innovation have found themselves increasingly entering the CFOrsquos remit as related to encouraging ideas specific to the region Chappell is confident however that certain companies based in DSO are addressing these issues
ldquoIn this region one of my biggest challenges is getting people to understand
ldquoPeople talk about strategybut getting the numbers right must always be the number one thingrdquo
20 wwwthecfomecom
the complexities of tech Technology is a good investment class but the region is focused very much on real estate whilst the investment class of technology doesnrsquot rank as highrdquo said Chappell ldquoIn order to widen the general understanding we want to be developing solutions which address problems specific to the region We have one or two gems for example Qordoba a translation company which translates content in multiple languages The programme utilises artificial intelligence and as a result is getting smarter and smarter each time it is asked to translate so that it understands the meaning of what itrsquos translatingrdquo
Another key variable for DSO is centred on supporting
Dubairsquos goals based around becoming the worldrsquos capital for Islamic finance Chappell describes his role as CFO as one with ldquotwo thousand handsrdquo a multi-layered position which he seems to relish being held responsible for While DSO has grown tremendously in its near decade of existence the free zonersquos exuberant CFO sees lots more to come
Said Chappell ldquoI see us going from strength to strength Wersquove been in existence for nearly ten years When I joined it was empty desert Now we have over 1000 companies and an estimated 43000 living on site Within five years wersquoll also be further down the path and wersquoll be recognised for our contributions to the smart city and the Islamic economyrdquo
ldquoWithin five years wersquoll be further down the path and recognised for our contributions to the smart city and the Islamic economyrdquo
Dubai Silicon Oasis
headquarters
1080Companies in DSO
72millionDSOrsquos land mass in square metres
STAT FACTS
Cover StoryTECHNOLOGy
THE MIDDLE EAST ACCOUNTANCYAND FINANCE EXCELLENCE AWARDSWEDNESDAY 10 DECEMBER 2014AT THE JUMEIRAH BEACH HOTEL DUBAI
ACCOUNTING FOR EXCELLENCE
Once again the very best talent in the world of accountancy and fi nance will be celebrated by ICAEW at a stellar awards ceremony
ICAEW is a professional membership organisation supporting over 142000 chartered accountants around the world And on Wednesday 10 December 2014 at the Jumeirah Beach Hotel in Dubai wersquoll be recognising excellence in ten categories featuring Business Leader of the Year CFO of the Year Corporate Finance Deal of the Year and the Internal Audit Excellence Award
With an impressive line-up of speakers special guests and entertainment it all adds up to a trulymemorable evening
To submit a nomination or for more information visit icaewcommiddleeastawards
Nominations close on 1 October 2014
A WORLD LEADER OF THE ACCOUNTANCY AND FINANCE PROFESSION
400595_ICAEW_MiddleEast2014_Ad_NBAD_DEVERE_207x270_AW_3indd 1 27082014 1541
PROCUREMENTANALyTICS
wwwthecfomecom22
Return on Supply Management Assets (ROSMA) is a pioneering framework launched by AT Kearney after four years of testing one aimed at addressing the aforementioned procurement gaps The performance measurement standard was initiated with an eye on creating a benchmark for the procurement industry and providing a compass to direct investments
ldquoROSMA started in 2010 And it started out with conversations with the CFO There are a group of folks in the company talking about how great their achievements are however
the capital that procurement claims isnrsquot often obvious and can create a disconnect within the companyrdquo said AT Kearney Vice President Federico Mariscotti
This yearrsquos annual report surveyed a number of businesses and arrived at a series of significant findings which outline procurement patternsbull Top-tier companies generate
approximately $16 million in financial return per procurement employee yearly A reported 35 per cent of return derives from applying advanced methods
bull Mid-level performers typically
The first step for compa-nies in the Middle East is to take a good look at what they expect procurement to bring
Leading global management firm AT Kearney recently released a report on the evolving conversation which surrounds procurement A key aspect of the report spells out how much CFOs stand to gain by making more pronounced investments based on utilising procurement in terms of value The relative distance between CFOs and their respective companyrsquos procurement methods is cited as cause for concern
THE NEW LANGUAGE OF PROCUREmENT
generate four to five times of their investment in procurement valuation yet have not exemplified growth since 2011
bull Performers at the lowest level surveyed do not achieve monetary benefits which cover costs
bull The majority of organisations surveyed do not possess the tracking structures needed to analyse procurement performance
bull Regardless of company size or industry procurement
PROCUREMENTANALyTICS
wwwthecfomecom 23
The CFO community has not yet awakened to the value of procurement
performance varies though companies with sophisticated reporting techniques experience less variable performance
The reportrsquos express aim to create a benchmark for procurement follows a wave of process monitoring which found notice in the manufacturing industry in the 1980s supply chain research and engineering in the 1990s and sales and marketing performance being closely tracked in the 2000s
ldquoProcurement costs can represent anything from 20 to 90 of a companyrsquos total cost going from the public sector to consumer goods Yet the productivity of the team that presides over the supply market interactions has a way of explaining their value add using savings that do not add up to the PampL impact measured by finance Savings definitions different baselines and cost avoidance all contribute to a murky aggregate view of the impact on the businessrdquo added Mariscotti
In the Middle East the challenge is fundamental ndash getting the spend data in the first place Companies admit they often do not have a clear categorisation of intelligence lack an agreed definition of savings measurement and generally position procurement as a pre-eminently transactional activity lacking the mandate to contribute value Procurement processes as a result remain centred around purchasing are paper based and lack transparency The first step for companies in the Middle East is to take a good look at what they expect procurement to bring
wwwthecfomecom24
Influencedspend
The inconsequential The brand leaders
Leaning up
Note All three segments start with a common hypothetical spend of 1000 to normalize the case example
Source AT Kearney analysis
Source AT Kearney analysis
TOP QUARTILE
mIDDLE-TIER 50
BOTTOm QUARTILE
704
764
644
522
527
396
42
30
(138) (25)
(63)
19
39
28
15
21
4
3
60
32
18
Sourcedspend
Units of yield
Post-compliance
benefits
Additionalbenefits
Financial results
delivered
19x
17x
middle tier
bottom quartile
TOP-QUARTILE PERFORMERS DELIVER NEARLy TWICE AS MUCH VALUE AS MIDDLE-TIER PLAyERS
THE CFO COMMUNITy HAS NOT yET BEEN ldquoAWAKENEDrdquo TO THE VALUE OF PROCUREMENT
Procurement is not on the radar for those who gave the wrong answers to three essential questions
leadership with accountability for performance is clear but either the measures are not clear or performance is believed to be weak variable or unknown ndash or a mix
leaners and leaders answered all three essential questions correctly and also answered most or all other questions correctly
to the table and how it should support the business To make a steep change companies need to understand the multiple benefits which will occur for investments made once theyrsquove allowed for stronger procurement practices
The benchmarking aspects of ROSMArsquos report speak directly to CFOs based on an existing widespread inability to track and improve this often unquantifiable nature of procurement practices According to the report the CFO community has not yet awakened to the value of procurement and Chief Financial Officers are thus divided into three segments The brand leaders (25) those leaning up (63) the pack (774) and the inconsequential (138)
Said Mariscotti ldquoThis is a way to give procurement a measurable quality that CFOs can quantify You have to know what yoursquore doing with relation to procurement in order to do it well ROSMA gives you a number which helps you understand how good your procurement is working as compared to peers It lets you know whether or not you could be doing something differentrdquo offers Mariscotti
CFOs have exemplified an increasing ability to share in a companyrsquos strategic efforts whilst expand their respective remits Procurement is emerging as the latest segment of this conversation Understanding its value beyond the transactional is the first step for CFOs to fully engage with harnessing the potential of procurement and grow to become a part of the elusively paltry portion of brand leaders indicated in ROSMArsquos report
PROCUREMENTANALyTICS
The pack(774)
Al Sharid is the Vice Chairman of Emirates Transport and has enjoyed a successful career in which the lionrsquos share of his tenure has afforded him a seat at the helm of the business
ldquoI remember when I first received the GM of Tata in the late 80s he said to me lsquoYou are the youngest GM I have ever metrsquo I was 29 years old at the timerdquo Looking at Al Sharidrsquos rapid ascent to the top of his organisation can be mind boggling to the average observer however to those few who strive to push themselves to their limits it is perhaps more common a reality As with any top performer we can often see their desire for results and impact
early on in life and with Saeed the first stride of his race to the top began with an accounting degree in university
It was 1976 and the excitement of the UAErsquos biggest milestone moment its inception just five years earlier still clung to the air from Fujairah to Abu Dhabi and every emirate in between A nation was being built Saeed had just finished high school and went to the United States where he was to study engineering
ldquoI was not yet 18 years old it was 1976 and I was sent to America to study it was the beginning of a dream and a young liferdquo says Al Sharid Unfortunately Al Sharidrsquos academic tour of duty came to
THE EmIRATI DREAm Saeed Al Sharid is today an elder statesman in the world of UAE accountancy With decades of know-how based on chairing a number of key Emirati organisations Al Sharid is today atop his own family firm In the following exclusive interview he shares the importance of education the evolution of a nation and just how being an accountant has driven his many triumphs
an abrupt halt when his father suddenly passed and he was forced to return home ldquoWe are seven brothers and I am the middle one so during tough times we always come together and during this period the strength of my family pulled me through I have three younger brothers and I felt I had to be there for them I felt responsible for them My mother played an omnipotent role in pulling us through this dark moment in our history The death of my father forced us to become more independentrdquo says Al Sharid
Now back in the UAE with his plans of studying abroad dashed Saeed looked at the local schooling system within which Al
26
InterviewPERSONALITIES
wwwthecfomecom
Saeedrsquos desire for results took its first stride with an accounting degree in university
By Shane phillips
27
InterviewPERSONALITIES
wwwthecfomecom
Ain University had just opened ldquoAl Ain University was the pride of the Emirate at the time the students were like celebrities The first batch of graduates were all promised 50000 AED from HRH Sheikh Zayed I was one year late so technically I should not have graduated with the first batch but I was determined I worked an extra course load did summer school and soon caught up to the first class 50000 AED in 1981 was like 5000000 AED today so I was very motivatedrdquo says Al Sharid
Saeed not only caught up with the other students but he wound up graduating atop Al Ain Universityrsquos first class of graduates with a 38 GPA ldquoWe Saeed Al Sharid
28 wwwthecfomecom
to the organisationrdquo he says Saeed first joined Emirates Transport after seeing a small newspaper advertisement for an accountantrsquos position He applied but initially they did not want to hire a local because locals were too expensive After a few months however they called him back for an interview and offered him a job
Initially Saeed struggled to get a promotion or even a raise He worked tirelessly to develop himself and kept detailed notes of his work After nearly two years went by with no promotion he requested to meet with the Chairman of the corporation to discuss his career The Chairman was a Minister making him even more senior than his title implied Al Sharid was courageous and determined ldquoYou should not stay silent you have to take initiative your future is in your handsrdquo says Al Sharid
ldquoI met with the Chairman and told him about my work and what I wanted to do He did not talk he just listened and that was it It was a 15-minute meetingrdquo says Al Sharid Three days after Al Sharidrsquos pivotal appointment he was promoted to Deputy General Manager Directly from a Trainee to DGM skipping all the roles in between at the age of 27 years old They doubled his salary and catapulted him into a senior leadership role
ldquoI felt it was quite strange to move up that fast and personally was not sure I could handle the job I had a lot of resistance from the board I had people in their 50s reporting to me and they were not happy about it So I just took a step back and did not try to get involved in their work too fast I went slow and watched my step This was a very important
ldquoThe UAE was a brand new country and a lot of work was being done to develop the nationrdquo
never had any idea of a career path and there was no such thing as career counsellors or lsquocareer servicesrsquo at the school So when you graduated most people just joined the Ministries The UAE was a brand new country and a lot of work was being done to develop the nation The Federal Government paid the highest and so one just joined them There was no grand vision or dream that I was off and chasing In those times you simply tried to do the next best thing So I ended up working in the Ministry of Health as an accountant Back then a university degree was a veritable qualification and it had a lot of market equity today it wonrsquot even get you in the doorrdquo
As the Middle East market evolves not only are university degrees becoming more common but so are post graduate degrees such as MBAs and even PhDs As such the competitive positioning of professional qualifications are gradually eroding over time
ldquoTo stay competitive executives today will require deep and specialised knowledge of their respective industries an intellectual arbitrage that provides superior results To beat the market to manage the risks to develop a sustained competitive edge For this executives need to stay in a role for the full strategic cycle which is at least four years in durationrdquo says Sharid In the case of Al Sharid he was there for 33 years
ldquoDo you just want a job or are you looking to make a contribution to your company Too many young people today are just looking for a title or a position The difference between those who make it into senior roles and stay there is the desire to create impact to add value
InterviewPERSONALITIES
2012year Moodyrsquos upgraded the UAE economy from developing to emerging
37The UAErsquos global rank for GDP
STAT FACTS
moment for me to gain valuable leadership experience early on To make my learning curve even steeper the General Manager quit after two years and I became the GM at the age of 29 years oldrdquo explains Al Sharid
He ascended to the top job in less than five years and stayed in the position for almost twenty years He was totally committed and could even be found in the bus yard at four in the morning to greet the drivers as they started their shifts ldquoThe key to being successful in business is to keep your finger on the details Some people let the details slip and if this happens you will suffer I get into the yard I meet the drivers I meet all the staff If you saw us you will not know who was the GM or who was the driver You have to realise people will never work for you they will only work with you To me Emirates Transport is like my familyrdquo says Al Sharid
When asked what his keys to success are he says ldquoI think if I was not an accountant I would not be a good leader I would not be a good manager In my opinion trying to do business while not understanding accounting is like getting into the ocean and not knowing how to swim you will drown The Chief Executive Officer who does not know how to create the financial statements is always at the mercy of his Chief Financial Officer He cannot take any big decision on his own and he will not even be able to challenge the CFO Accounting is the bedrock of any business and a critical skill set for any leader No one can argue with this factrdquo says Al Sharid
With over 20 years of experience in tow and the related chairmanships to boot Al Sharid
ldquoTrying to do business while not understanding accounting is like getting into the ocean and not knowing how to swim you will drownrdquo
has since early last year partnered with his family to form Al Sharid Auditing Though the Emirati youth is not as keen to pursue positions related to accountancy as Al Sharid was he feels that there is hope to close the gap
ldquoIt is difficult to find an Emirati expert I studied the audit market specifically and there were others like me then But now you break Emirati auditing involvement into three categories The first involves the big firms This is followed by individual smaller enterprises But thirdly a lot of locals opt to work with the government also Most are not managing their own firms they just have a partnership and they are building thatrdquo Al Sharid explains
ldquoAl Sharid Auditing however is a firm that includes my brother and our two sons which make up a body of qualified professional auditors We established this firm last year and work closely with the government We decided to make one firm together instead of having many smaller entitiesrdquo
Moving forward Al Sharid plans to grow his familyrsquos firm by applying the very belief system which has catapulted him to his position of power Marketing concerns which are designed to furthermore announce how tailored Al Sharidrsquos offerings are at present a key variable to forging ahead
Said Al Sharid ldquoMoving forward wersquore focusing more on the marketing of our firm Itrsquos a matter of not exactly expanding but going over the right deals The market is tough and the small jobs are easy but we donrsquot need them We donrsquot want to be in many rooms we want to be in the important onesrdquo
29wwwthecfomecom
InterviewPERSONALITIES
1UAErsquos rank among GCC nations for chosen hub of all major accountancy bodies
STAT FACTS
Latest insights from PwCrsquos 15th Annual Global CEO Survey revealed that 59 per cent of CEOs see emerging markets as more important than developed markets to their future What is making emerging markets such a pressing priority for C-suite executives Why are emerging markets increasingly grabbing headlines
Emerging markets are large fast-growing and ambitious markets best known for being the growth engines of todayrsquos global economy Research (1) suggests that emerging market countries are expected to amount for more than 60 per cent of global GDP growth ndash a clear indication of the wealth of opportunity they present
Understanding emerging marketsBased on estimates by the International Monetary Fund emerging economies are expected to grow two to three times faster in comparison to developed nations Explaining this fast-growth and the rise of these emerging markets an article on Forbescom details that ldquoduring the US housing crash and resulting credit crisis of 2008 world markets were saved from a total disaster thanks to the big emerging markets ndash mainly Brazil India and China The global credit crisis was one of the longest deepest and most painful in history It toppled Wall Street icons like Lehman
The following report explores emerging markets from West to East which are at the helm of economic development trade and innovation and highlights what their rising popularity means for the growth of your business
Brothers required government bailouts of bulge bracket banks and shocked the global economy with a deep economic recession and even a deeper crisis of confidence Its most important legacy though may be one that has yet to fully unfold the crisis revealed a new world order in terms of economic and market dynamics Emerging market economies finally arrived as
30
Market IntelligenceANALyTICS
wwwthecfomecom
ENTERING EmERGING mARKETS STRATEgIES RISKS ANd OppORTuNITIES
Projected annual GDP growth 2014 amp 2015
PANAMA
67
PERU
RANK42
55
Projected annual GDP growth 2014 amp 2015
Ease of Doing Business
RANK55Ease of Doing
Business
TOP TEN MARKETS
(1) Source here Accenture Research ldquogearing up for growth ndash five imperatives for success in emerging markets 2011 Henry Egan and Armen Ovanessoff
31
Market IntelligenceANALyTICS
wwwthecfomecom
LATVIA
CZECH REP
MALAYSIA
THAILAND
SOUTH KOREA
CHINA
RANK75
41
21
50
45
35
74
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
CHILE
RANK 34
43
Projected annual GDP growth 2014 amp 2015
Ease of Doing Business
RANK 24Ease of Doing
Business
Ease of Doing Business
RANK 6Ease of Doing
Business
RANK18Ease of Doing
Business
RANK 7Ease of Doing
Business
RANK 96Ease of Doing
Business
POLAND
32
RANK45Ease of Doing
Business
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
Source httpwwwbloombergcomnews2014-01-29qatar-china-top-ranking-of-frontier-and-emerging-marketshtml
powerful essential and permanent contributors to global economic growth and sustainabilityrdquo
Bloombergcom recently ranked the top emerging markets based on their performance on 19 economic financial political and social indicators In order of ranking the top ten markets were
CHINA
SOUTH KOREA
MALAYSIA
CHILE
THAILAND
PANAMA
PERU
LATVIA
POLAND
CZECH REP
1 6
2 7
3 84 9
5 10
Market IntelligenceANALyTICS
32 wwwthecfomecom
Making an entryIf your business is looking to enter any of these emerging markets itrsquos worth considering the following checklist
1 Assess your readiness The biggest mistake you can make is to enter a market without proper evaluation of your business Donrsquot do it just because everyone else is Like every other major business decision be sure to speak to your Board of Directors partners investors stakeholders and most importantly your CFO and certified accountants Make a business plan enlisting your objectives goals investment strategy potential risks etc
2 Research research research Do your homework Treat emerging markets as any other international expansion venture and do thorough research on the new market ndash Who are the competitorsWhat is the price point for your product What are the customer demographics What kind of infrastructure do you need for the manufacturing production or distribution of your product
3 Understand the legal framework Emerging markets might not have rules and regulations as clearly spelled out as your home country Invest some time and money in understanding how business procedures work A very obvious area of focus for UAE-based companies is tax Since the UAE is a tax-free economy companies arenrsquot exposed to tax accounting and other legislation surrounding
ndash failing to adapt to the needs and expectations of the local customers is surely a recipe for failure Time and again companies havenrsquot been able to create a customised offer and have had to exit these markets with huge losses A success story however is that of the Haier Group Haier famously introduced washing machines to specifically suit the water pressure levels in the households of India ndash an emerging market strategy that worked very well in their favour and helped them become leaders in that sector Another great example is that of Coca-Cola as explained in an online Reuters article by Matt Reilly ldquoIn Brazil Coca-Cola has used social media to better understand consumer preferences and has developed a successful local network to supply traditional Coca-Cola products as well as fruit juices tailored to local tastesrdquo
7 Local currency This is a complex yet critical area to consider when entering a new market Ask yourself questions such as ndash What is the local currency rate How does it compare to the currency in your home country Is the country import-led or export-led and what impact can this have on the global value of the currency Remember that fluctuations in currency rates can hugely effect your overall investment and thereby the return on investment
8 Build partnerships When entering an unknown territory it is quite useful to have the backing and support of peers who can help you in case of unforeseen challenges This is
this Another area to consider is corruption ndash emerging markets are notorious for high corruption red-tape and bureaucracy Speak to your company lawyer to assess these areas and take proper measures to avoid them before-hand
4 Invest in local talent Working with people already accustomed to the new market avoids the hassle of relocation and reduces costs But more significantly gives you skilled talent to work in these unique environments This also works in favour of your company as it gives you a clear understanding of the kind of compensation packages you will have to offer to your employees For instance employees based in China might want high remuneration and low healthcare benefits while in India it may be quite the reverse Recruiting local talent will also have a trickledown effect ndash your employees will easily be able to cater to the local customer needs without the need for intense training
5 Supply chain 44 per cent of business leaders surveyed consider accessing the right supply chain capabilities extremely or challenging in emerging markets according to Deloittersquos Globalisation Survey Make sure that you know who your suppliers will be what the production costs are whether their production procedures fit your time constraints and if the final product matches your level of quality
6 Cater to local market demands This is one of the most important aspects of all
Do your homework Treat emerg-ing markets as any other internation-al expansion venture
Market IntelligenceANALyTICS
33wwwthecfomecom
the very reason why Mergers and Acquisitions are a popular way to enter into emerging markets Many companies piggyback on their clients who are entering these markets For instance if you are an IT consultancy working on a major project for a manufacturing and trading company with operations across India and China you can use their resources and expertise to explore opportunities in these countries
Remember to consider these steps every time you enter a
new market as every locality has its own set of unique needs One strategy doesnrsquot fit all
Surviving fierce market conditionsWhile the massive opportunity that lies within emerging markets paints a pretty picture businesses need to be wary of bottlenecks such as corruption volatility gaps in laws and regulations and strong competition There have been several high-profile cases of multinational companies withdrawing from emerging
markets owing to immense corruption pressures
There is also a high percentage of inherent risks in these markets which amount to many companies not succeeding in their first attempts It is important to take your time when adapting to these markets and fully understand the business dynamics Following recent case studies and going over the lessons learnt by multinational companies who have made an entry into these markets consider the below
bull Is your companyrsquos head-office ndash and senior management ndash located in your home country without any C-level representation in the new emerging market
bull Are you focusing all of your resources on doing business in the emerging market at the cost of losing profits in your home market
bull Have you researched local competitors in these markets who may already have a strong standing and proven models of success
bull Are you using the same ldquoentry approachrdquo and business model across different emerging markets
If your answer to one or more of these questions is yes it may be time to re-evaluate your presence in these markets and map out a different strategy
Finally remember that no matter what the outcome of your admission to these markets might be your business is sure to emerge out of this stronger tougher and ndash of course ndash ready for a new challenge
of companies believed they had invested more resources in
emerging markets than was required
entered a market without fully assessing the ability of the supply chain to support the expansion
entered with the wrong pricing model and an inappropriate
operating model
CONSIDER THE RISKS
48
24
20
There is also a high percentage of inherent risks take your time when adapt-ing to these markets and fully understand the business dynamics
Source Emerging markets expansion and the supply chain Economist Intelligence unit survey conducted on behalf of EY September 2010
34
CIMA INTERVIEW
wwwthecfomecom
The Chartered Institute of Management Accountantsrsquo (CIMA) Managing Director Andrew Harding visited Dubai to host the Institutersquos seminar on global management accounting principles In the wake of CIMA revising their well heralded syllabus Harding discussed with CFO Magazine what the newest edition held how CIMA is applying a digital focus to its courses and just how CFOs can gain from it all
CURATING CURRICULUm
35
CIMAINTERVIEW
wwwthecfomecom
can give CFOs something they can take and something they can measure their own management accounting services against They can benchmark using this and they can utilise this to see their progress
Part of that is having professional management accountant in place I donrsquot think the landscape matters I believe that there is a common business need wherever you may be around the globe
All of the emerging markets need these skills The first aspect that accounting schools teach is about auditing skills because theyrsquore interested in protecting investments Then they teach you how to keep your business sustainable and to have a sustainable business you need to have a management accountant in place So itrsquos not just here in the UAE where we see these demands we see the same demands in China Indonesia and other powerhouse economies We see their skills shortages and we see the need for solutions in those areas
Talk to me about how this new syllabus works to promote the evolution of a CFOThis syllabus that wersquove
Can you expound on just what can be found within the new CIMA syllabusWe just revised the syllabus we do that every four to five years What we have done this year is a very significant revision It is based from a complex study that we have carried out to over 3000 people from 200 companies globally It is the very first revision since the joint venture with CIMA and AICPA So this has allowed us to attain a syllabus rich with all the data from all the continents in the world For the first time wersquove had real involvement from companies in the USA in this project
Why is the collaboration between AICPA and CIMA significantMost important is the Chartered Global Management Accountant (CGMA) designation that AICPA and CIMA both issue for qualified management accountants Wersquoll have a common curriculum and common examination which will begin on January 1 which gives us a global designation for management accountants wherever they are around the world There are plenty of accounting bodies who claim to be global but actually this is the only
genuinely global designation This is because it has the only one with a North American participation in it So we can say that the CGMA will be just as well-recognised in the USA as it is in Dubai
With the global landscape in mind how do you create an even objective that applies to localities which may prove widely differentialThe landscapes are different but businesses have common needs wherever they may be What wersquove particularly seen since the global financial crisis is that companies are actively looking to build management accountant capability to build that capacity within their organisations They donrsquot want to have a poor quality of information that lacks insight being used in their businesses So they see management accountants can bring solutions to that As a result of all the work wersquove done with companies who participated in the syllabus wersquove also put together a series of what we call Global Accounting Principles This is a series of principles which describes what good management accounting looks like and what top quality management accounting in a company should be producing This then
ldquoCompanies are actively looking to build man-agement accountant capability to build that capacity within their organisa-tionsrdquo
36 wwwthecfomecom
worked on acknowledges the skill set needed by professionals throughout their career Therersquos a base level of competence that is needed but beyond that there is more There is business acumen the ability to communicate and influence and finally the ability to lead So you start off enhancing your raw technical accounting skills Then you need to place that into the context of the business that you are in Then as you move forward and as you rise to become the CFO yoursquoll need the others You have to learn how to present your work in a way that can influence and make an impact in the business The final piece is the ability to lead projects and other functions and to a great extent lead the board of directors Thatrsquos how the context works itrsquos not just about technical knowledge
How do you find that CFOs in the GCC region are responding to this programmeThe CFO has a real challenge on his hands now In 1975 80 per cent of corporate value is showing on the balance sheet By 2010 that dropped to less than 20 per cent Your traditional PampL reports no longer reflect the value of the business or how the business drives value
All things that should be of interest to investors is missing With things like the integrated report initiative wersquore starting to see the other dimensions that add value to business For CFOs thatrsquos all about strategic thinking and considering the long-term objectives Being articulate in implementing those strategies keeping in mind the risks and opportunities that the business faces We are also nowadays witnessing a whole new world of transparency around that
Are there electronic aspects to CIMArsquos advancing approachThe interactive case study simulates a real working situation and it tests how they can apply their knowledge in real life situations Theyrsquoll be presented with a scenario a few weeks before they take the exam so they can prepare for it They then go to an exam centre where they are asked questions about how they will deal with a certain situation in the real world Theyrsquoll get an email from the CFO giving them a certain task for a particular period of time We want to make it as close to reality as possible so students taking the exam will be assessing situations based on real life scenarios
ldquoThe CFO has a real challenge on his hands now as traditional PampL reports no longer reflect the value of the businessand [the role] must focus on strategic thinking and considering long-term objectivesrdquo
218KCIMA members worldwide
STAT FACTS
CIMA INTERVIEW
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
38
ERPANALyTICS
wwwthecfomecom
Faster more nuanced IT solutions are available to the modern day CFO Whilst Chief Financial Officers are called upon to analyse data across a number of spectrums the digital tools on hand are likewise being expanded to aid in focusing more squarely on the bottom line
ExCELLING WITH ERP
The global landscape is today firmly entrenched within a digital model As a result CFOs whom are called upon to take a larger role in a number of variables must also increase their abilities with respect to utilising the many upsides which tech innovations offer a business When surveyed about their most pressing concerns CFOs generally return a varying collection of responses Revenue growth regulatory changes and meeting quarterly goals are among the chief concerns Virtually every obstacle can be hurdled by way of maintaining the order of financial reporting and data which has long been
synonymous with the Chief Financial Officerrsquos remit A widening berth of ERP solutions is making this data all the easier to come by
Despite how sophisticated the market is today it was not long ago that ERP departments once spent days processing business reports
Said Rohan Tejura Assistant Vice President Focus Softnet ldquoTraditional ERP systems were solely data repositories Moreover these repositories werenrsquot real time and were incredibly dependent upon locational connectivity With the emergence of smarter development platforms more versatile devices and
39
ERPANALyTICS
wwwthecfomecom
more intuitive designs of system development the overall experience of the ERP now extends from data warehousing to reporting analysis trend mapping business intelligence and governance oriented capabilities Yet these solutions amazingly execute all of these deliverables via portable handheld devices and through cloud environmentsrdquo
New generation ERP systems must now be on the go whilst including up to the minute analytics to provide deeper insight into the business ERP Analytics tools use historical data captured from various business functions to provide valuable information for efficiency and business performance each incredibly priceless to a leading CFO
Finesse is an ERP provider which is continually addressing the transformation of output which the ERP industry is offering the equally transitioning role of CFO
ldquoWe provide end-to-end business management solutions to SMEs and Enterprises Our approach to ERP is much more than providing simply an operational management systemrdquo said Finesse COO Sunil Paul
ldquoWe believe that todayrsquos businesses need much more than integrating sales with inventory accounting and manufacturing but also to have seamless integration with all their sales channels including the point of sales ecommerce and inbound sales solutionsrdquo
A major im-petus of the ERP-cen-tered growth is based on how effec-tive com-prehensive real-time data proves to be for the CFO
40 wwwthecfomecom
before thereby creating new global benchmarks for overall economic growth
Microsoft Arabia CFO Sadrul Khan offered insight into just how far the knowledge economy has influenced regional financial leadership by explaining how one of the most prioritised technologies by CFOs in the region is social platform monitoring
ldquoOne of the five technology choices that CFOs tend to prioritise in boosting productivity efficiencies and faster decision making in the fast paced business environment which include a social platform that monitors trends customer sentiments and helps process mashable data for customer centricity and business growthrdquo said Khan
A major impetus of the ERP-centered growth is based on how effective comprehensive real-time data proves to be for the CFO Whether employed as on-premise ERP software-as-a-service or cloud-based solutions a nearly identical ethos is being utilised Allowing the CFO to quickly access the performance of all facets of a business is paying dividends in the boardroom a reality which is showing itself increasingly in the Middle East
The technologically-charged relationship between ERP solutions and the regionrsquos CFOs is expanding and as a result has catalysed what many see as GCC economic performance outstripping that of many economies outside of the region as a result
In order to compete in todayrsquos fiercely competitive environment organisations need to think both innovatively and out of the box They require more insights about their business and their customers and need to ensure that they are able to meet the expectations of their internal as well as external stakeholders Enormous amounts of data both structured and unstructured is continuously being generated within the internal and external systems of the organisation which if analysed can be of immense value both to the business and subsequently the stakeholders associated with the organisation
With the the era of CFOs labouring over spreadsheets now in the past given how many business frontiers have become so dependent on mobile options such as the cloud more and more tech companies are providing the regionrsquos CFOs with information technology that converts traditional internal and external data into rich visual insights This information is then used for faster decision making and provides the ability for a CFO to assess manage and control risks Regional CFOs have grown enabled to drive corporate strategy accordingly demonstrating how the knowledge economy is now in full force amongst the Gulfrsquos corporates
Given that advanced IT has now become a regular CFO tool the regionrsquos CFOs are subsequently making faster decisions and driving internal growth models with greater speed and agility than ever
Tech companies are providing the regionrsquos CFOs with information technology that converts traditional internal and external data into rich visual insights
ERPANALyTICS
Donrsquot discoveritrsquos counterfeittoner afteritrsquos too lateOriginal HP Toner works first time every time1 unlike cheap toners which fail over half of the people who try it2 Non-HP toner can compromise your printerrsquos performance to give you streaked blotchy or faded prints Only original HP Toner cartridges deliver unmatched quality for the most professional-looking prints 100 of the time1
1 A QualityLogic 2010 study commissioned by HP comparing original HP LaserJet Monochrome print cartridges with nine brands of non-HP toner cartridges available in Europe Middle East and Africa for the HP LaserJet P1505 and P4015 printers HP 36A and 64A For details see wwwqualitylogiccomEMEAmonotonertestpdf 2 From a 2012 EMEA Lyra Research study commissioned by HP Results based on a total of 1050 HP Color LaserJet users who have used both original HP and non-HP toner cartridges of whom 552 experienced problems with non-HP cartridges
copy 2014 Hewlett-Packard Development Company LP
42
Private Equity ANALyTICS
wwwthecfomecom
The rise of PE-backed acquisitions is forcing CFOs to develop an entirely new set of skills
THE PRIvATE EQUITy CFO
The CFOrsquos utility in the world of private equity is without question on the rise The once-held belief of the CFO existing solely as the ldquoaccounting guyrdquo has been abandoned Over the last 20 years the role of CFO has become more demanding - requiring not just finance and accounting acumen but also a financial literacy in corporate planning risk management MampA assetliability management and regulation This evolution has been driven by a number of
key factors Yet the private equity industry which is now reshaping the corporate landscape through active ownership is by far the most significant factor driving change within the role of the CFO
PE-backed buyers today represent a larger percentage of overall buyers in the corporate acquisition marketplace than ever before Data provider Prequin estimates that as of June 2014 the capital raised by PE funds that
has not yet been deployed amounts to $114 trillion globally The result of this ldquodry powderrdquo is that a vast quantity of corporate acquisitions in the coming years will be undertaken by the private equity industry As such CFOs will be more accountable to demanding ldquosmart moneyrdquo shareholders than at any point in recent history Budgeting accounting and financial reporting will no longer exist as sole priorities but as a core competency among a
ldquoBy effec-tively using real-time data CFOs can create a dynamic process that proac-tively drives performance account-ability and value crea-tionrdquo
By Aaron Heidari
43
Private Equity ANALyTICS
wwwthecfomecom
robust set of complimentary and required skills Most of all the bar for CFOs is rising as PE investors will only accept above-average performance from their management teams
CFOs were once more reactive in function setting budgets based on other executivesrsquo plans and managing the flow of reporting to shareholders on a quarterly and yearly basis Today CFOs are required to become proactive managers of their respective businesses alongside their C-suite compatriots using a granular data-driven approach to aggregate analyse implement and report on every aspect of a companyrsquos operations
An important tool to drive this value creation process are KPIs Yet KPI structures including both aggregation and output are generally not up to the standards required of private equity investors prior to an investment being made
ldquoThe benefits of using KPIs and monthly reporting packages are significant By effectively using real-time data that is actionable and by partnering with functional area leaders within the organisation company CFOs can create a dynamic process that proactively drives performance accountability and value creationrdquo said Amanda Robinson Vice President of Accordion International in Dubai a consulting firm which is comprised of former private equity and investment banking professionals who
MENA region Cumulative Funds Under Management Since 2008
Source Zawya private Equity Monitor
19 636 20 36321 586
22 64323 506 24 250
-
5000
10000
15000
20000
25000
2008 2009 2010 2011 2012 2013
Cu
mu
lati
ve f
un
ds
($ m
)
$15mAverage MENA PE investment size in lsquo13
50Percentage of investment in IT and energy sectors
STAT FACTS
44 wwwthecfomecom
work with companies to deliver cost-effective project execution services
Active shareholders whose money it is being spent will typically require a data-driven justification before approving any budgets capital expenditures or new acquisitions Furthermore in many private equity backed companies the use of debt and the matching of shorter-term bank financing with longer-term investments will only be considered after a robust analysis is conducted to understand the companyrsquos ability to service that debt in the future This evaluation is not simply to identify revenues expenses and profits Itrsquos about drilling down into every transaction and rooting out data processing and reporting At least that is the expectation
The most valuable CFOs are those who have the ability not just to scrutinise and understand the financials but all also possess a wider grasp of the underlying data which truly comprise the business As an investor who has just acquired a stake in a new business I want a CFO who can manage the transition and stay ahead of my expectations Most of all a CFO should impress upon the companyrsquos shareholders a new way of doing business The first 100 days of an acquisition are said to be the most important During this period the CFOrsquos worth will be established when the new financial plan is due and the platform for the next five years of growth is presented
A CFO should man-age the tran-sition stay ahead of expectations and impress upon the companyrsquos shareholders a new way of doing business
Investment Volume By Sector Since 2006
Investment Volume By Sector in 2013
Source Zawya private Equity Monitor
1
3
30
17
3
28
3
4
6
4
6
5
17
9
9
6
9
5
8
6
6
2
3
10
Education
Education
Information Technology
Information Technology
Other
Other
Telecoms
Telecoms
Media
Media
Transport
Transport
Oil amp Gas
Oil amp Gas
Healthcare
Healthcare
Consumer goods
Consumer goods
Food amp Beverages
Food amp Beverages
Leisure
Leisure
Manufacturing
Manufacturing
ANALyTICS
Private Equity
2000857 NBAD ratibi mag ad 200x268 Finalindd 1 92514 1017 AM
46 wwwthecfomecom
THE FUTURE OFACCOUNTING EDUCATIONAddRESSINg THECOMpETENCY CRISIS
Have you ever stopped to think about how the accounting profession has changed since you graduated from college Recent graduates can answer this question by reflecting on the last two or three years whereas for other more seasoned professionals answering this question requires a bit more thought and memory searching Indeed we can all think of ways that the field of accounting is remarkably different today from the one we likely envisioned during our college daysmdashregardless of which decade we each donned our cap and gown This gradual transformation of the accounting profession leads to two important questions related to competencies bull Which competencies are important for success inaccounting todaybull Were these competencies consciously developed as partof your accounting degree programme
We suspect that more than a few of you would answer ldquonordquo to the second question Put another way our profession may be facingmdashmore so than at any time in the pastmdasha ldquocompetency crisisrdquo that is a gap between the competencies needed for professional success and those taught in our college classrooms today We propose a three-pronged strategy or ldquogame planrdquo for overcoming this competency crisis and in turn better preparing accounting graduates for the challenging world they will face First all of us accountants need to understand the changes that have already taken place in our profession and perhaps more importantly anticipate the changes that are on the horizon Second we need to educate ourselves and future generations of accountants so that as a collective group we can deliver the expanding set of competencies demanded in todayrsquos dynamic organisational
contexts Third as professional organisations and as individuals we need to think beyond ourselves by asking How can I (or we) help the accounting profession address the competency crisis
A Shift Toward Integrated ThinkingMany articles and white papers have been written that describe in detail the changes that have occurred in our profession over the last few decades but for our purposes wersquod like to distill these changes down to one crucial idea How does the accounting function add value to an organisation Accountants have evolved from support-oriented personnel who hand off information to others who actually make decisions into business partners who ldquohave a seat at the tablerdquo with managers
By peter C Brewer James E Sorensen CpA CgMA and david E Stout
47wwwthecfomecom
1048576bull What regulatory risks mayaccompany the proposal
1048576bull What social and environmentalfactors will we face if for example the proposal requires investing in overseas operations
1048576bull What types of employeeresistance may arise if we implement the proposal and how will we overcome the root causes of any such resistance
1048576bull Can and how should we valuefuture options associated with the proposal such as expanding or contracting the investment over time as new information becomes available
1048576bull Should we use debt or equity tofund the proposal
In short accountants have evolved to become integrated thinkers who enable EPM by partnering with managers across the organisation to add value Yet as EPM has gradually become the centrepiece of our professionrsquos value proposition accounting education hasnrsquot done enough to embrace it To overcome this gap wersquod like to further suggest that the concepts of competency integration and EPM need to come ldquofront and centrerdquo as we move forward in educating the next generation of successful accounting practitioners
Accounting Education No Longer on the SidelinesRecently a task force consisting of members of IMAreg (Institute of Management Accountants) and members of the Management Accounting Section (MAS) of the American Accounting Association (AAA) addressed the competency issue How should accounting education change fundamentally to help close the competencies gap The efforts of the task force led to
cash flows and how to apply discounted cash flow (DCF) decision models such as net present value (NPV) is of foundationalmdashsome might say critical mdash importance But integrated thinkers draw on an understanding of organisational strategy coupled with a broader set of competencies (beyond what might be considered technical or foundational knowledge) when making these types of decisions For example they consider how behavioural issues may influence the capital investment decision-making process Perhaps the financial estimates contained in the NPV analysis are too optimistic because the manager who prepared the numbers has a vested interest in seeing the project approved Decision makers also need to consider issues such as leasing vs buying a capital asset and the corresponding impacts on the financial statements and ratios that are tracked by investors and lenders What nonfinancial factors are associated with the proposed investment Add in the tax consequences of capital investment decisions coupled with the need to maintain internal control over any new business processes tied to these decisions and the need to think in an integrated fashion across a variety of accounting competencies becomes apparent
Furthermore becoming a true business partner with managers across the organisation requires more than simply integrating various accounting competencies It also means thinking like a business manager or a chief executive officer (CEO) Returning to the capital budgeting example an integrated thinker will ask questions such as
across the organisation Together they formulate and plan strategies then participate in collaborative decision-making processes that execute those strategies in a manner that adds stakeholder value Said another way accountants have evolved to become enterprise performance managers This shift in our orientation from a support function to an enterprise performance management (EPM) role has enormous implications for defining the determinants of success within our profession the most important of which involves becoming collaborators and ldquointegrated thinkersrdquo Take for example a common but important business decision process capital investment analysis Certainly technical knowledge regarding how to estimate relevant after-tax
48 wwwthecfomecom
expanding capital budgeting discussions to include financial statement impacts tax consequences and internal control issues integrates topical coverage across the External Reporting and Analysis Taxation Compliance and Planning and Assurance and Internal Control competencies shown in Figure 1
Third accounting curricula can incorporate a broader set of management competencies For example evaluating capital investment proposals from the perspectives of change management (Leadership) social and environmental issues (Ethics and Social Responsibility) regulatory concerns (Governance Risk and Compliance) and capital structure (Additional Core Business Competencies) brings a CEOrsquos perspective to the decision-making process
Fourth accounting curricula should include foundational competencies such as proficiency with spreadsheets and written and oral communication In the context of capital budgeting this may include asking students to use Microsoft Excel to perform a sensitivity analysis and then to present their findings to the entire class
Working to Fix the ProblemAt this point although you may agree with us that therersquos a competency crisis within the accounting profession you may be wondering What does this have to do with me What can my organisation do to help address this so-called competency crisis The answer a lot Practice partners and academic partners can help the accounting profession overcome the competency crisis That said letrsquos take a closer look at the role of practice partners first
improvement) and accounting competencies (external reporting and analysis planning analysis and control taxation compliance and planning information systems assurance and internal control and professional values ethics and attitudes) Of critical importance to the framework is the assumption that the set of competencies contained in Figure 1 would be developed and integrated over time through a blend of formal education (including continuing education) training and job experience
What levels of integrationmdashon the road to developing integrated thinkers in accountingmdashare possible First accounting educators can integrate within a single accounting competency So referring back to our capital budgeting discussion teaching computational models such as NPV analysis coupled with a review of various behavioural issues associated with capital investment decisions would be an example of integrating within the Planning Analysis and Control competency listed in Figure 1
Second professors can integrate across accounting competencies For example
a recently published article that contains a proposed framework for accounting education reproduced here as Figure 1 The framework is general in the sense that itrsquos meant to apply to all accounting students not subgroups based on career specialisation such as tax assurance services corporate finance and the like Itrsquos based on the idea that accounting educators can better prepare students to deliver our professionrsquos EPM value proposition through integrated competency-oriented curricula (For more see ldquoFocusing Accounting Curricula on Studentsrsquo Long-Run Careers Recommendations for an Integrated Competency-Based Framework for Accounting Educationrdquo in the May 2014 edition of Issues in Accounting Education)
A glance at Figure 1 reveals three levels of competencies foundational competencies (communication ability to leverage technology and analytical thinking and problem solving among others) broad management competencies (including leadership ethics and social responsibility and process management and
Proposed Competencies-based Framework for Accounting Education
FOUNDATIONALCOMPETENCIES
ACCOUNTING COMPETENCIES
BROAD MANAGEMENT COMPETENCIES
leadership
ExternalReportingamp Analysis
PlanningAnalysis
amp Control
TaxationComplianceamp Planning
InformationSystems
Assuranceamp InternalControl
ProfessionalValues Ethics
amp Attitudes
Communication
Quantitative
Interpersonal
Technological
Analytical Thinking ampProblem Solving
Ethics amp SocialResponsibility
ProcessManagement ampImprovement
GovernanceRisk amp
Compliance
AdditionalCore BusinessCompetencies
Although you may agree with us that therersquos a competency crisis within the account-ing profes-sion you may bewondering What does this haveto do with me
A practice partner should be or become a CMAreg (Certified Management Accountant) maintain professional certification by completing required Continuing Professional Education (CPE) hours and regularly read the IMA publications Strategic Finance and Management Accounting Quarterly
In addition there are a number of excellent resources that deal with topics covered in this article and that IMA makes available to its members
Strategic Finance PowerPacks(wwwimanetorg SFPowerPacks) These are resources focused on contemporary topics similar to those discussed earlier Current offerings include Risk Management Strategic Planning IT Skills amp Software and Internal Controls Each PowerPack includes a combination of resources such as research studies articles and links to webinars
Statements on Management Accounting (SMAs)(wwwimanetorgresources and_publicationsresearch_ studies_resourcesstatements on_management_accounting aspx) SMAs represent monographs classified into one of the following six categories Leadership Strategies and Ethics Technology Enablement Strategic Cost Management Business Performance Management Finance Governance Risk and Compliance and the Practice of Management Accounting Multiple items are available within each category For example the Practice of Management Accounting category includes (among other items)
49wwwthecfomecom
the Definition of Management Accounting and Implementing Shared Service Centres
Research Studies (wwwimanetorgresources_and_publicationsResearch_Studies_and_ResourcesAll_reportsaspx) The ldquoThoughtLeadershiprdquo section of IMArsquos website includes research covering a broad range of issues classified into seven categories For example under the ldquoGlobal Business Environmentrdquo category the following two research reports are available ldquoKey Differences Between IFRS and US GAAP Impact on Financial Reportingrdquo and ldquoCosting Methodologies and Cost Management Practices in the Peoplersquos Republic of Chinardquo
IMA Leadership Academy (www imanetorgprograms_events leadership_academyaspx) As described on the IMA website this programme is designed to assess a memberrsquos leadership status enhance that individualrsquos skills (principally through monthly webinars) and recognise leadership achievements These benefits are free to members
How You Can Make a Bigger Impact In addition to attending local regional and national IMA meetings consider inviting a small group of students to each chapter meeting This could be a wonderful (and relatively low-cost) option for mentoring aspiring accountants and finance professionals providing networking opportunities and introducing students to cutting-edge issues regarding the practice of management accounting Joining a university accounting
advisory group may be another way to influence the development of EPM in that institutionrsquos curriculum design
Other methods to enhance EPM in your organisation include (1) forming user groups within your company your local IMA chapter or your industry to review and share EPM experiences (2) encouraging advancement in the firm to be linked to EPM proficiency (3) focusing your companyrsquos recruiting efforts on candidates who display a background in andor understanding of EPM and (4) organising cross training within your company to enhance a mutual understanding of each otherrsquos respective roles
Finally visit the Competency CrisisTM website (http competencycrisisorg) set up by IMA to unite the accounting and finance constituencies professionals students employers academics and professorsmdashand explore competency issues through the lens of each stakeholder group The site is designed to ldquoencourage a discourse spur action and create a community dedicated to resolving the serious crisis of competency present in the professionrdquo Special sections of the website are devoted to educators students and employers professionals
Our Partners in Education Much like a practice partner an academic partner should be or become a CMA maintain professional accreditation by completing CPE hours and regularly read IMArsquos publications
Academic members of IMA can pursue and actively promote the CMA programme at their respective institutions
50 wwwthecfomecom
IMArsquos website contains helpful resources including an exam content overview content specification outlines for each of the two parts of the CMA exam and learning outcome statements The current exam covers some of the professional competencies represented in Figure 1 A summary of changes to exam content which will be effective in January 2015 is provided on the IMA website in News amp Media Relations which is located under ldquoAbout IMArdquo (See the press release dated March 24 2014) Other helpful resources include ldquoICMA Announces CMA Exam Content Changesrdquo in the April 2014 issue of Strategic Finance as well as ldquoManagement Accounting Career Readiness Shaping YOUR Curriculumrdquo
These forthcoming changes are based on the most recent IMA study of the knowledge and skills needed by management accountants from the view of CFOs controllers and other accountingfinance professionals from around the world
Also consider taking a group of your students to the IMA Student Leadership Conference held each November The Conference provides excellent networking opportunities for you your students and practicing professionals Students can learn firsthand from Conference presenters the challenges and opportunities facing finance and accounting professionals today
Moreover if your institution doesnrsquot currently have an IMA Student Chapter consider forming one One of the authors of this article David Stout reinstituted the student chapter at his school (Youngstown State University) after travelling with a group of his students to the IMA
Student Leadership Conference in Cleveland Ohio Through an IMA Student Chapter on campus students are able to work closely with a sponsoring local IMA chapter and bring to campus speakers who are experts in a wide range of topics including those discussed earlier in this article Each year student chapters compete for an Award of Excellence (AOE) and recognition as an Outstanding Student Chapter In addition IMA student members are able to engage in networking activities leadership training mentoring and community service programmesmdashall through their local chapter
You also might consider volunteering to serve as a Campus Advocate In this role yoursquoll represent IMA in all major matters of interest to your students (scholarship opportunities starting a student chapter mentoring and the like) and to your institution (for example leveraging IMA resources to advance the relevancy of the accounting curriculum use of educational case studies published in the IMA Educational Case Journal and access to IMArsquos ethics curriculum)
And if you havenrsquot yet done this ask IMA to endorse your accounting programme (information is available at www imanetorgeducator_resources indexaspx) This programme is designed to identify business curricula that meet the quality educational standards required to prepare students to earn the CMA designation Endorsement is based on an analysis of the curriculum and topics covered on the two-part CMA exam Currently 12 programmes have been endorsed
Finally if your school has an IMA Student Chapter consider participating in the annual IMA Student Case Competition where students are asked to propose a solution to a real world problem (Cases are solicited each year by Raef Lawson IMA VP of Research and Policy and IMA Professor in-Residence) Finalists make their presentations at IMArsquos Annual Conference amp Exposition before a set of judges consisting of accounting faculty members and practitioners Each year a new case is published in the August issue of Strategic Finance for students to use for that yearrsquos competition
Working TogetherIn this article we have summarised the changes that have affected the accounting profession and provided a competencies-based framework for guiding accounting educators in responding productively to those changes As a management accountant you know that implementing change in any organisation let alone within an entire profession never comes easily To be successful in overcoming our professionrsquos competency crisis IMArsquos practice and academic partners will need to assume leadership roles in defining enterprise performance management as the cornerstone of the accounting professionrsquos value proposition
This article was orginally published in the August 2014 issue of Strategic Finance It appears here with the permission of The Association of Accountants and financial professionals in Business
We need to educate ourselvesand future generations of account-ants so that as a collec-tive group we can deliver theexpanding set of com-petenciesdemanded in todayrsquos dynamicorgani-sational contexts
THE POWERFUL AND THRIFTY OFFICE ALL-ROUNDERS
The new ECOSYS M3560idn series will astound you With their print speeds of up to 60 pages per minute they are among the most productive A4 bw multifunctionals on the market We nevertheless managed to keep their ecological footprint and total cost of ownership impressively low by using our well-known ECOSYS technology and equipping the devices with our renowned long-life components The result Not only less waste and lower maintenance costs but also less hassle for you and all your colleagues You will also greatly appreciate the many customisation possibilities of the devices equipped with KYOCERArsquos open solution platform HyPAStrade as it allows you to tailor the device to your needs So yes we are proud of our new range of MFPs and can hardly wait to share their numerous benefits with you
For more information please contactKYOCERA Document Solutions Middle East | PB Box 500817 DubaiUAE | Tel +9714 4330 412 | Fax +9714 4231 944KYOCERA Document Solutions Europe BV - wwwkyoceradocumentsolutionseuKYOCERA Document Solutions Inc - wwwkyoceradocumentsolutionscom
52
ACCAINTERVIEW
wwwthecfomecom
GLOBAL By ASSOCIATION
across the region from our key employers and learning provider partners to our active and growing student and member base I want to understand their challenges and priorities and how ACCA can work with them to help support the economic success of the region
What can a CFO gain from working with ACCAThe ACCA qualification is about complete finance professionals For CFOs it brings the technical knowledge vital to business success complemented with the strategic management skills and ethical competence crucial to an organisationrsquos success As an organization ACCA in the UAE brings CFOs access to that local and global network of peers and expertise along with our leading research and insights that help them to keep up to date on the issues that matter most
Are there any initiatives in place to leverage the recently announced partnership with AAA
How are the ACCArsquos many years of activity being applied to the Middle EastACCA has now had a presence in the UAE for well over a decade During that time we have established strong relationships across the Middle East epitomised by the recent signing of our Strategic Partnership with AAA As a national body in choosing to partner with ACCA they recognised the local and global perspective we bring We are continuing to work with students members and employers across the Middle East to build their networks knowledge and business success through events research and insights and access to a growing number of online resources
Which initial priorities are among your key aims upon joining the organisationrsquos efforts in the UAEIn the first few months I hope to build on the success of the team in the UAE My priority will be to meet as many of our key stakeholders
The Association for Chartered Certified Accountants (ACCA) provides its services across a number of international borders The recent announcement of Lindsay Degouve de Nuncques as the new head of the Associationrsquos UAE chapter further exemplifies the ACCArsquos reach based on her previous work in the UK Nuncques shares here what she brings to the Middle East and just how globalisation has driven her ascent
53
ACCAINTERVIEW
wwwthecfomecom
The strategic partnership with AAA is the first of its kind in the region Students who complete the UAECA qualification will be entitled to both the AAA and ACCA designations and ACCA members in the UAE will also be eligible to apply for AAA membership This is a very exciting development in the market and together AAA and ACCA will be working to deliver maximum value to all our stakeholders from this partnership As we launch the UAECA qualification this activity will start in earnest
Which key industries will you be spotlighting in the Middle East in the months aheadOur experience of working across all sectors and levels of organisations globally gives ACCA a unique insight into all types of industries We will continue to be working with employers across the spectrum in the months ahead to help them gain the insight and make the connections that drive businesses to succeed at whatever they do
ldquoThe ACCA qualification is about complete finance professionals For CFOs it brings the technical knowledge vital to business success complemented with the strategic management skillsrdquo
54
Islamic FinanceMARKET OUTLOOK
wwwthecfomecom
In its 10th instalment the Forum is hosted in Dubai as a direct result of the UAErsquos increasing importance in the world of global Islamic finance
THE WORLD ISLAmIC ECONOmIC FORUm LANDS IN DUBAI
In Dubairsquos continued quest for leading the world across a range of spectrums the Emirate accelerated its desire to become the worldrsquos leading hub for Islamic finance by hosting the 10th installment of the World Islamic Economic Forum (WIEF) Delegates from dozens of countries attended to take part in a three-day event held at Madinat Jumeirah which rests alongside Dubairsquos gleaming coastline Held under the patronage of His Highness Sheikh Mohammed Bin Rashid Al Maktoum the
Vice President and Prime Minister of the UAE and Ruler of Dubai key speakers included The Honorary Dr Zeti Akhtar Aziz Governor of the Central Bank of Malaysia HE Kairat Kelimbetov Governor of the National Bank of Kazakhstan The Honorary Datorsquo Sri Mohd Najib Tun Abdul Razal Prime Minister of Malaysia and HE Xavier Bettel Prime Minister of the Grand Duchy of Luxembourg
Launched in 2006 in Malaysia WIEF has grown in tandem with the increased
Delegates from dozens of countries attended WIEF to take part in the three-day event
sophistication and reach of Islamic finance After a successful event in London in 2013 amidst increased interest in Islamic finance across Europe WIEF relocated to Dubai where the local business structure is keen to host halal finance
Said Hamad Buamim President and CEO Dubai Chamber of Commerce and Industry co-organisers of the event ldquo[The forum] is the start of a new chapter of cooperation between Dubai and the world as part of
55
Islamic FinanceMARKET OUTLOOK
wwwthecfomecom
Dubai Capital of Islamic Economy visionhellipestablishing a unified regulatory authority to provide the framework for standards across halal industries will significantly accelerate growth Likewise we need to see increased cooperation and partnership between the public and private sectors This is already happening with great success here in Dubairdquo
The order of global cooperation needed to facilitate growth across the Islamic finance world was more than apparent at WIEF based on how many differing nations were represented at the event The exhibitorrsquos hall was populated with a number of key Malaysian stands representative of the Southeast Asianrsquos ranking as the global leader in Islamic finance Also present were companies from Saudi Arabia also a key locality in the worldrsquos halal industries An interesting yet prescient presence was of attendees from South Korea a nation which is eager to participate in Islamic finance and will be hosting the WIEF Pyeongchang Roundtable in December 2014
ldquoGangwon is a province located in Korea which is very interested in new business opportunities Wersquove realised the strength of the Islamic economy and have come here with many different companies The first type is based in real estate investment We also have companies which want to export their products to the Islamic economy based on their halal qualities And Gangwon will also be hosting the Winter
ldquoKorea is very interested in the strength of the Islamic economy and wants to export its products based on their halal qualitiesrdquo
56 wwwthecfomecom
$247trillionProjected value of halal products industry in lsquo18
125Muslim percentage of global tourism expenditure
STAT FACTSOlympics in 2018 and are presently seeking investments for this as wellrdquo said Seong-hun Kim a member of Gangwon Province Governmentrsquos Export Support Team
Dubai proved to be an excellent place for the event considering how well the UAE is able to so regularly corral international cooperation A key sign of this was witnessed recently when Luxembourg now considered the third most important base for Islamic finance globally opened a finance office in Dubai International Finance Centre The European nation also opened a euro200 sukuk earlier this year which was quickly oversubscribed
The prime minister of Luxembourg offered the WIEF audience a riveting speech which detailed just how international the Forum has become whilst encouraging more of the world to support the growing influence of Islamic finance
Said Bettel ldquoWe need to innovate more economic partnerships for growth We sometimes need to reengineer relationships but also have to make sure these relationships remain sustainable Growth in one country also brings growth to others as long as this is guided by free market initiatives Free trade and free flow of capital combined with innovation leads to prosperity We have all gathered here in Dubai to explore the future of Islamic finance and Luxembourg is also a pioneer of Islamic finance in Europe The Islamic financial sector has a major role to play in continued global growthrdquo
The Islamic Corporation for the Development of the Private Sector (ICD) is based in the Kingdom of Saudi Arabia where it manages an international fund worth $2 billion half of which is available for subscription With shareholders in more than 50 countries and a sovereign sukuk fund recently launched in West Africa the ICDrsquos CEO Khaled M Al Aboodi attended WIEF this year excited to participate in the global event
How does the ICD approach its attendance at the World Islamic Economic ForumI think the Forum is one of the best places for discussing the financial issues of the OEC member countries It has been around for ten years and has grown to become a very important platform for discussion Wersquore here to attend and listen but also to network Itrsquos a great networking platform and a place to share views whilst letting everyone know what we have to offer
How has Islamic finance changed over the yearsOf course itrsquos growing in a large scale Some of it actually needs more support particularly with respect to regulatory frameworks Wersquore trying to partner with many international organisations like the IMF to try to provide support to countries to adapt regulation for Islamic finance Sukuk issuance is one of the biggest issues that needs to be addressed because there is a huge amount of liquidity in this arena Due to issues related to regulation sukuk issuance can be costly But with the regulation we are confident it will be on a level playing field with other forms of finance Compliance is a major area where more work can be done The Forum started with a roundtable on sukuk which shows how helpful WIEF has been over the years
What type of work does ICD do internationallyICD helped the government of Senegal to issue the first sovereign sukuk This was successfully issued last summer Progressing in this manner is something wersquod like to see continue across West Africa in order to utilise its resources with aiding development in the region in mind
QampA WITH KHALED M AL ABOODI CEO OF ICD
Islamic FinanceMARKET OUTLOOK
OFFICIAL SPONSORS
ENDORSED BY OFFICIAL HOST OFFICIAL
COMMUNICATIONS PARTNER
MEYDAN HOTEL DUBAI UAE19 - 20 NOVEMBER 2014
WOMENOMICSthe next emerging market
TAKE PART in making change happen UNITE with business and through leaders from across the globe
PARTICIPATE to the expansion of a modern and inclusive economy
58
Gautam PradhanINTERVIEW
wwwthecfomecom
SUCCESS BEyOND BOUNDARIES
in other management roles such as strategic decision making mentoring and leading efficiency and productivity across a range of other departments and functions as well as a being a catalyst in ensuring that the boardrsquos vision for the organisation is achieved
A significant percentage of NMDCrsquos shares are owned publicly Does the CFO play a role in balancing the interests of the shareholdersAs a CFO balancing the shareholdersrsquo interests is definitely part of my responsibility In order to achieve this goal there needs to be a careful evaluation of each decision while keeping the short-term and long-term goals of the company in mind At NMDC we actively implement a system where we utilise a balance scorecard as a method of ensuring that all our primary objectives are met yet at the same time continuously enhance our relationships with our shareholders
NMDC has completed various projects across the Emirates Are there plans to move abroadAs NMDC moves towards becoming an international player our strategic expansion plans are focused in areas within the GCC region and India In line with this strategy we opened
How has a company with such a unique set of deliverables grown so consistently over the yearsOur organisation strongly believes that the core to our strength is the people process and equipment A strategic decision led by our Board of Directors and the senior management has been implemented that required us to consistently invest in these three aspects to help expand our business beyond the territorial boundaries of the UAE and at the same time enhance what we can offer which is relevant to these segments We attribute our success to the efforts which every employee contributes We also strongly believe in the ldquoWe can make it happenrdquo principle The management raises the index of performance while setting SMART objectives within the organisation and encouraging the employees to achieve them
How has your position as the CFO changed over NMDCrsquos 35 years of operationAs the market evolves and business dynamics change my role as the CFO has become complex and more challenging A few years back I was mainly focused on bookkeeping accounting and other financial responsibilities such as arranging bank facilities But moving forward I became more involved
The UAE is progressively becoming a hub for world-class infrastructure The country has duly impressed the rest of the globe with noteworthy land developments showcased across the emirates Among the remarkable landscapes found in Abu Dhabi are the Corniche Beach Yas Island and Sir Baniyas Island Behind these successful projects is NMDC the dredging division of Abu Dhabi National Oil Company (ADNOC)
In an interview with CFO Magazine Gautam Pradhan Chief Financial Officer NMDC shares an exclusive look into the companyrsquos international blueprint for growth and his dynamic role as a strategic leader of one of the best in dredging and marine construction in the Middle East
59
Gautam PradhanINTERVIEW
wwwthecfomecom
branches in Qatar Bahrain Oman and India This has paid rich dividends recently as projects of strategic importance are bagged in Qatar and Bahrain Furthermore NMDC (UAE) has recently played a key role as a leader of an international consortium with Royal Boskalis Westminister (Netherlands) and Jan De Nul Group (Belgium) for the awarding of the Suez Canal Dredging project in Egypt Moving forward we have devised a strategic approach that will enable us to play a key role in the development of Indiarsquos marine infrastructure
What are the global strategies that are part of the CFOrsquos responsibilitiesAs CFO understanding the macro economic scenario risk analysis and mitigating those risks are all a part of my responsibilities I also have to have a proper comprehension
ldquoA few years back I was mainly focused on financial responsibilities moving forward I became more involved in strategic decision making mentoring and leading productivityrdquo
Gautam PradhanINTERVIEW
60 wwwthecfomecom
of the challenges faced by the company in terms of dealing with foreign contracts direct and indirect taxes and hedging and managing the integration process These are essential to enhance shareholders wealth and mitigate undue risk
How significant is accountancy for NMDC in its operations Why exactlyAccountancy is the lifeline of any company it does not only record the finances it also reflects the health of the organisation The MIS reports analysis trends and statistical information go a long way toward effectively providing
the diagnostic approach essential for the company
How have NMDCrsquos environmental activities helped the companyrsquos bottom lineNMDCrsquos work is well-synchronised with our environmental activities and specifically with nature Our activities are closely linked to sand and water and we view such activities with strategic importance Projects such as increasing water supply to mangroves and beach nourishment help us support the environmental activities while adding to our bottom line
ldquoAccountancy is the lifeline of any company it does not only record the finances it also reflects the health of the organisationrdquo
A burgeoning slice of Abu Dhabi coastline
The largest business awards
in the GCC30th November Dubai
nominate now at wwwstarsofbusinessawardscom
Stars of Business has become an iconic awards brand like no other in the region It recognizes the very best SMEs across 26 business categories Itrsquos universally respected as scientifically assessed and unimpeachably judged
327000 SMEs across the UAE$234 billion estimated total revenue of the SME sector4974 Awards entries in 20131856 Individual company applicants
Presenting Partner Strategic SME Partner Gold Sponsor Gold Sponsor VIP Hospitality Partner Supporting Partner
Trade Facilitator PartnerTrade Credit PartnerLogistics Partner
Institutional Partner Institutional Partner Event Partner
OrganiserPublisherMedia Partner Media PartnerPort Authority Partner
62
David Allen INTERVIEW
wwwthecfomecom
What went into completing your bestseller ndash Getting Things Done (GTD)After twenty years of researching developing and implementing a methodology for achieving stress-free productivity based upon
thousands of hours spent desk-side with
some of the best brightest and busiest people in the world I decided to write the manual for it Thatrsquos what Getting Things Done is
What are the five phases of mastering workflowIn order to get
any situation under control so
you can focus you will utilise these five
steps Whether yoursquore managing your kitchen
or your company you will need to collect and capture what has your attention clarify what if anything to do about it organise it according to what it means to you review and reflect upon it in relation to
Todayrsquos evolving CFO is often caught between the world of business set-up generating revenue managing employees and building strong company infrastructure When can things actually get done What can one do to boost productivity and master workflow World-renowned business coach David Allen has the answers
PRODUCTIvITy PRINCIPLES WITH
DAvID ALLEN
63
David Allen INTERVIEW
wwwthecfomecom
those are greatly subvertedHow does one maintain a fair balance between the time spent planning and actually getting things doneYou simply need to spend just the amount of time you need to to trust that what you are getting done is the right thing to be getting done in the moment It takes as long as it takes to get to that point Why would you do anything less
How can one apply your core productivity and workflow principles to todayrsquos technologically driven environmentThe principles and their techniques are system-independent Whether you have meaningful input from the Internet your smartphone or a conversation in the hall you must engage with it equally Technology has simply increased the flow of input and ease of distraction in your world
There is a lot of talk about how connected wersquove become and how connectivity is driving tremendous business growth Does connectivity actually come with its fair share of downsides
Connectivity is obviously a two-edged sword We can have intimate productive and creative interaction instantly with someone on the other side of the world and we can just as easily be distracted and seduced into those engagements when they may not be the best use of our attention and resources Donrsquot shoot the medium Itrsquos all simply bringing attention to your clarity of direction and priorities or lack thereof
Could you share a few quick tips with our readers to instantly boost productivityWrite everything down that has your attention Decide the very next actions required to get closure on all of them Any next actions that require less than two minutes do instantly Park reminders of everything else somewhere that yoursquoll see when you can do something about them
We are currently facing a massive information overload What are some basic principles you could suggest to mentally organise such large amounts of dataConstantly ask yourself Where am I going Whatrsquos important and rewarding to me Is this information
the whole and then engage your resources with intuitive trust
As a CFO how can you transfer efficient workflow management skills to your employees Itrsquos very difficult to legislate processes for individuals ndash you can really only hold them accountable for their results But if you are managing your own commitments and intersections with them with integrity and rigour it will automatically force your team to ldquostep up to the platerdquo in their own behaviours in order to meet your standards If you request their complete list of their company projects and they canrsquot produce it thatrsquos a sign theyrsquore not in control If they make a commitment to you that they havenrsquot kept thatrsquos data about their performance GTD is simply about good operational business practices
With so many planning and organising activities in your methodology is there a risk of losing spontaneity as a strategistThe reason for these best practices is to optimise freedom creativity and spontaneity Without them
ldquoBut if you are manag-ing your own com-mitments and intersec-tions with them with integrity and rigour it will automatical-ly force them to ldquostep up to the platerdquo in their own behaviours in order to meet your standardsrdquo
64 wwwthecfomecom
supporting that Park whatever you find potentially meaningful somewhere that is easy to access when needed
Being an entrepreneur is a non-stop job How do you ensure that you have an adequate work-life balance Pay attention to what has your attentionmdashwith regard to anything Your health relationships career finances etc Notice when something might be ldquooffrdquo and make good decisions about what you need to do to get it back ldquoonrdquo again
Does your work teach people to be efficient or effective In essence they are the same thing Effective choices are generated by efficiency on a higher level If you want to implement strategy most effectively it demands utilising your resources optimally which is efficiency
Does motivation actually improve quality of work or purely quantityDepends on the focus of the motivation You can be motivated to work harder and you can be motivated to work smarter
What is your favourite productivity mantra that
you implement in your day-to-day lifeUsing my own in-basket and note-taking devices to capture potentially meaningful and valuable ideas and soon afterwards clearing all of them out by deciding what to do about them if anything
Your books seminars and other work inspires many individuals and businesses Who is your personal inspiration or role model I have many about many different aspects of my life The only person though that I ultimately trust as my best guide is my higher self which I try to access as frequently and clearly as I can
Finally what advice would you give to current business owners and aspiring entrepreneurs looking to gain complete control of their life and businessCapture what has your attention clarify what you need to do about it to get it off your mind organise the inventory of all your commitments at all levels review and reflect on all of that regularly relax and trust your inner wisdom to engage with the most appropriate thing in the moment
ldquoIf you want to implement strategy most effectively it demands utilising your resources optimallyrdquo
David Allen INTERVIEW
APPSTECH TALK
wwwthecfomecom 65
mAxImISE BUSINESS lsquoON-THE-GOrsquo WITH THESE HANDy APPS
ipAd SpECIAL
SAMSUNG UNvEILS GALAxY NOTE EDGE
Network
AP
Display
OS
Camera
Video
Audio
Additional Features
GoogleMobile Services
Connectivity
Sensor
Memory
Dimension
Battery
The availability of service may differ by country All functionality features specifications and other product information provided in this document including but not limited to the benefits design pricing components performance availability and capabilities of the product are subject to change without notice or obligation
Samsung Galaxy Note Edge Product Specifications
25G (GSM GPRS EDGE) 850 900 1800 1900 MHz3G (HSPA + 42Mbps) 850 900 1900 2100 MHz4G (LTE Cat 4 15050Mbps) or 4G(LTE Cat 6 30050Mbps)May differ by country and carrier
27 GHz Quad-Core Processor
56 inch (1419mm) Quad HD+ Super AMOLED (2560 x 1440 + 160)
Android 44 (KitKat)
Rear Facing 16 Mega pixel Auto Focus camera with Smart OISFront Facing 37 Mega pixel camera with f19Rear Facing Camera HDR (Rich tone) Selective Focus Rear-cam Selfie Beauty face Virtual Tour Shot ShotampMore Dual CameraFront Facing Camera Selfie Wide Selfie
Codec H264 MPEG-4 H263 VC-1 WMV7 WMV8 Sorenson Spark MP43 VP8 Recording amp Playback up to UHD
Codec MP3 AACAAC+eAAC+ WMA AMR-NBWB Vorbis FLAC()() Ultra High Quality Audio (~192KHz 24 bit) support
Multi WindowUltra Power Saving ModeVoice Recorder (Normal Mode Interview Mode Meeting Mode Voice Memo)Download BoosterS Health 35Dynamic Lock ScreenBriefingEdge screen UX Revolving Interaction Immersive apps(Camera Video S Note)Ticker board Express me Quick Tools Night Clock etc
Chrome Drive Photos Gmail Google Google+ Google Settings Hangouts Maps Play Books Play Games Play Newsstand Play Movie amp TV Play Music Play Store Voice Search YouTube
WiFi 80211 abgnac (HT80) MIMO PCIeGPS GLONASS BeidouNFC Bluetoothreg v 41 (BLE ANT+)IR LED (Remote Control) USB20 MHL 30
Gesture Accelerometer Geo-magnetic Gyroscope RGB IR-LEDProximity Barometer Hall Sensor Finger Scanner UV Heart Rate Monitoring SpO2 (Dependent on market)
32 64 GB Internal memory + microSD slot (up to 128GB)3GB RAM
1513 x 824 x 83mm 174g
Standard battery Li-ion 3000 mAh Fast Charging (Adaptive Fast Charging amp QC20)
wwwthecfomecom66
APPSTECH TALK
AIR DISPLAY
SQUARE REGISTER
Using this app you can connect your iPad to your computer and use it as an additional screen While working on an important presentation or sales proposal you can extend or mirror your computer screen on your iPad This app is compatible with both Mac and Windows computers Note that to use this feature you have to install Air Display on your iPad and a separate free app on your computer The computer and iPad also need to be on the same Wi-Fi network in order to work in-sync
For Mac users the app allows you to connect to up to four screens ndash all at the same time
Apart from the ability to convert your iPad into a wireless display whatrsquos also attractive about this app is that it allows you to control your computer wirelessly using your iPad
This fantastic application can serve as a mobile point of sale for your business It allows you to accept credit card payments ndash including Visa MasterCard Discover and American Express A transaction fee of 275 is charged for every time you swipe a card The sale amount is transferred to your account within two working days
Once you download the app you can sign up and register for a unique card reader solution called the lsquoSquare Readerrsquo (this is free) Square Reader encrypts all card details and ensures that the transaction is secure Once you receive your Square Reader you can connect it to your device and are all set
The application also offers added features such as transaction history connecting to a receipt printer creating employee logins and more
AED 3699
PRICE
Free
PRICE
wwwthecfomecom 67
APPSTECH TALK
DOCUSIGNHave you ever been in a situation where your employees need you to urgently sign a contract but arenrsquot able to physically reach you in time DocuSign solves this problem with its easy-to-use eSignature feature In three easy steps you can sign important documents and securely send them to your intended recipient
First you have to import the document to your device ndash this could be from Dropbox Google Drive or another select applications You then place your signature or any other important legal information you need to include such as initials Once you have finished working on the document send it back via e-mail
Whatrsquos particularly great about DocuSign is the great emphasis it puts on security ndash so that users donrsquot have to worry about getting into any legal trouble
Use DocuSign and never miss a deadline again
Free for basic version
PRICE
MPAYAn initiative by the Dubai eGovernment Department mPay is a simple application that allows you to make important payments Once yoursquove signed up and entered your payment details you are good to go You can pay your Dubai Electricity and Water Authority (DEWA) bills Etisalat utility bills Dubai Police fines Recharge SALIK and much more
A handy feature is its lsquoauto-rechargersquo option which you can use to set automatic payments
Free
PRICE
Opinion CIMAPERSONALITIES
wwwthecfomecom68
NEW HORIZONSBy geetu Ahuja Head of gCC at CIMA
The days of the traditional accountant working within a small community in a small town in a small market have long gone CFOs are now being referred to as Chief Frontier Officers as they travel from market to market overseeing their offices overseas This new expanded role has distinct advantages for both the company and the CFO who gain new skills and new insights from foreign branches a single hand at the helm of many markets provides business perspectives on a global scale and benchmarks across the board
On a personal level working abroad also has huge importance Robert Walters the specialist professional recruitment consultancy recently conducted a survey
of almost 2200 employees across a variety of professions exploring a number of topics which ranged from working practices and attitudes to careers The results highlighted some notable trends particularly for finance professionals
In career progression for example the survey showed that 50 of all accountants see working abroad as either lsquoessentialrsquo or lsquoextremely usefulrsquo to furthering their prospects more than banking professionals lawyers and IT workers ndash a strong indication of how accounting professionals are thinking about their future either within their existing company or with opportunities elsewhere
Accountants with globally recognised qualifications obviously have a greater chance of gaining some experience abroad and the lsquoGen Yrsquo professionals in particular seem ready to pack their bags In a CIMA study conducted in the UK last year over a third of those seeking employment in the
next two years will prioritise opportunities abroad over those in their home countries many of them enticed by the career incentives offered by the Middle East
How quickly can they land what seems to be their dream job What are the realities It may be that the move is simply from one branch to another and the only significant difference is a view from the window but for those expanding rather than changing their roles we have seen a very real need for a depth and breadth of knowledge never needed before
As geographical boundaries are pushed ever-wider a CFOrsquos responsibilities are pushed with them For many finance executives the understanding of their own patch of land is no longer enough they now have to be aware of foreign markets up to speed with foreign trends and au fait with foreign laws There is a need for a new commercial awareness in geography as well as philosophy
As geographical boundaries are pushed ever-wider a CFOrsquos responsibilities are pushed with them
John vargheseQampA
wwwthecfomecom 69
BUSINESSSET UP YOUR
IN THE UNITED ARAB EMIRATES
TO
WAREHOUSESOFFICES INDUSTRIAL LANDFLEXI
Quick and easy company set-up
Less than an hour drive from Dubai
Complete cost-effective packages including licences and facilities
100 foreign ownership
Zero income and corporate taxes
Eligibility for UAE Residence Visa
BUSINESS SET-UP SOLUTIONS STARTING FROM AED 15000 (USD 4000)
RAK FREE TRADE ZONE PROVIDES
RAK Free Trade Zone Authority - Government of Ras Al KhaimahUAE (Ras Al Khaimah) Tel +971 7 2041111 (Dubai) Tel +971 4 7041875 (Abu Dhabi) Tel +971 2 6994888
Germany (Cologne) - Turkey (Istanbul) - India (Mumbai)
Call +971 7 204 1111 Visit wwwrakftzcom Join rakftz
13
recession environment has created an atmosphere rife with new regulations which CFOs are expected to master as these international enterprises venture into new markets and encounter sensitive and risk management-oriented frameworks
Citirsquos Vincent Valladares observed ldquoRegulatory issues are becoming bigger for banks as well as compliance And when we look at doing business with companies we want to look at those with good management teams because otherwise it can become difficult The CFO plays a very important role within this processrdquo
CEO waiting in the wingsWhen the group was quizzed on their individual desires to become CEO every hand around the table went skywards with an affirmative ldquoyes all of usrdquo - highlighting how commercially-minded todayrsquos CFOs have become Not to mention just how axiomatic the relationship between CEO and CFO consistently proves to be
Another factor is that amid all this diverse change - in roles working contexts and background economics - the CFO is seen very much as the person creating order control and standardization No small task
Perhaps the only certainty is that the communication of ideas is leading the charge forward for one of the business worldrsquos most important roles and The Changing Role of the CFO provided a definitive benchmark for this onward march
CFO RoundtableMARKET OUTLOOK
wwwthecfomecom
Members of the roundtable trade ideas
Vincent Valladares offers his position
CFO or CCOldquoThe duties have changed in some very clear ways A phrase that I am constantly coming across and strongly agree with is that we should be thinking of the CFO as the Chief Commercial Officer as opposed to someone who deals solely with finance Responsibilities central to finance continue to exist of course but strategy and other focuses are becoming just as if not more importantrdquo commented Rishi R Vig ZAFCO CFO
In addition to how much larger a remit commercial decisions are demanding the importance of regulatory protocols was a much- discussed topic The post-
Vincent Valladares Managing Director Middle East Head Citi Commercial Bank
Anand Nagaraj Vice President Head Product Development Citi Commercial Bank
Jay Raney PartnerGrant Thornton
Amgad Nassif Partner Grant Thornton
Paul Godfrey Moderator Group Editorial Director CPI Media Group
Steven Pradia Assistant EditorThe CFO Middle East
Ganapathi Bhat Senior Manager of Finance GEMS Education
Mark Downie Financial Controller Proclad
Nimesh Lokhandwala ICAI
Jehangir Pocha Himalaya
Kamal Shah Finance Manager Logicom
Rishi Vig CFO Zafco
Low Wai Leng Financial Controller Dubai Precast
Rajeev Jain CFO Afri Ventures
KG Vincent Finance Director FDC International
Ramesh Pemmasani Head of Accounts Intersun
Nagesh Nadig AIC
ROUNDTABLE ATTENDEES
IndiaCOUNTRy FOCUS
wwwthecfomecom14
SUBCONTINENTAL SURGE
By Arvind Chari
Last year was undoubtedly a turbulent time for emerging markets due to political instability inflation and the fledgling recovery in the West all causing significant headwinds Unsurprisingly this has led some commentators to be sceptical about the prospects for these markets including India But the Indian economy is showing signs that it will weather the challenges of the next few years This may not be an easy task given the
manner the Indian rupee plunged in response to the US Federal Reserversquos decision to taper asset purchasing Nevertheless India does have the political will to make the necessary reforms to deliver on its potential
While the Fedrsquos decision has caused some fallout in emerging markets commentators expect that this will tail off over time Meanwhile Indiarsquos economy is driven by domestic demand which means that
India does have the political will to make the necessary reforms to deliver on its potential
With an eye towards the nationrsquos key partnership with the Middle East the following India country report shares economic prospects accounting for last yearrsquos instability ndash defining what investors can gain moving forward
IndiaCOUNTRy FOCUS
wwwthecfomecom 15
$791bTotal trade between India and the UAE in lsquo13
64Expected growth of Indiarsquos economy in lsquo15
Indiarsquos debt market needs to attract stable investors over lsquobond touristsrsquo short term foreign flows evident in Indiarsquos bond markets
it is better placed than most to deal with the world post-quantitative easing Without the so-called lsquotaper tantrumrsquo investors in India might have focused more on the positives in 2013 But given the overall improvements in the economy and the political outlook we feel the India narrative will be harder to ignore in Q4
One of the most significant changes has been the appointment of Dr Raghuram Rajan as governor of the Reserve Bank of India (RBI)
last year He is clearly part of a dying breed of central banker that is one who actually knows how the world works He will make mistakes but the most important thing is that he will be trying to move India in the right direction as shown by his decision to continue with a hike in interest rates at the end of January Bond and currency markets have reacted very well to this move which shows the bank is now ahead of the curve in fighting inflation In October Rajan remarked that
Indiarsquos debt market needed to attract stable investors over lsquobond touristsrsquo a reference to the short-term foreign flows that have been evident in Indiarsquos bond markets His stance is an indication that policies could be shifted to attract more long-term stable money into Indiarsquos government bond markets away from a focus on the foreign-bank lsquoproprietaryrsquo investments that dominate flows currently
Indiarsquos current account deficit (CAD) was set to halve
STAT FACTS
IndiaCOUNTRy FOCUS
wwwthecfomecom16 wwwthecfomecom16
in the year ending March 2014 It was due to fall to 25 from 48 of GDP in 2013 The fall in gold imports alongside currency depreciation was a major contributing factor to this reduction Indiarsquos exports became more competitively priced over Q1 2014 which has led to higher exports in textiles chemicals and leather goods while the drop in the value of the rupee has also led to a fall in non-oilgold imports We expect the CAD to increase to around 3 of GDP for this financial year as gold import restrictions are removed a shift that should still be easily fundable Additionally the RBIrsquos FX reserves have increased by $34bn through the bank and non-resident Indian deposit swaps which was a much higher figure than anticipated This gives the RBI the additional firepower to intervene in the markets if it is necessary to counteract currency volatility In fact the
rupee has been remarkably stable since October and has steadily outperformed its other lsquofragilersquo emerging-market peers
There has also been an improvement in how other countries perceive India Net foreign direct investment is stable despite some negative sentiment driven by the outflows from the bond markets and banks Vodafone described by Rajan as lsquothe poster child for companies with difficulties in Indiarsquo is investing more in spectrum and also buying out minority operators In addition significant Japanese investment into Indiarsquos infrastructure is a further boost to the country and this relationship will be one to watch over the coming years
Overall the world has a much better impression of India than it did a few years ago when the country was facing significant obstacles In 2010 increasing inflation expanding fiscal deficits and an escalating CAD ndash all coupled with slowing growth rates ndash put India in a very difficult position But in 2012 the government realised that the current situation could not continue and since then there has been a much greater focus on reform
A mixture of poor growth and bad policies dramatically hampered Indiarsquos progress earlier this century frustrating many investors But the country is now beginning to drive a wedge between itself and the other more troubled emerging-market economies We feel
162KIndian tourists in Abu Dhabi yTD
Significant Japanese investment into Indiarsquos infrastructure is a further boost to the country and this relationship will be one to watch over the coming years
STAT FACTS
IndiaCOUNTRy FOCUS
wwwthecfomecomwwwthecfomecom 17
Population size 12 billion
Area 3287263km2
Type of government Federal republic
Official language Hindi
Capital city New Delhi
Largest city New Delhi
GDP (2012) $1825 trillion
Central government debt as a proportion of GDP 67
Currency Indian rupee
Conversion rate against the euro 0013
COUNTRy FILE
Hire a local manager or partner who has a very good
understanding of local rules and regulations
Have a longer-term investment horizon because the Indian rupee will remain
volatile for a while
donrsquot view volatility as a risk view the
integrity of the government and
management as a risk
Travel to India and feel the lsquomicrorsquo India
story rather than just read about the lsquomacrorsquo India story
Be patient and have realistic
expectations ndash things take time to work out in India
TOP TIPS FOR DOING BUSINESS IN INDIA
that these differences will mean that India significantly outperforms those economies over the coming years And while we might still be facing some turbulent times for India at least the dark clouds are beginning to break
As with any emerging-market economy the next few years will present challenges alongside opportunities and investors will have to
be comfortable with this state of affairs But India is committed to making the reforms it needs to improve its future The country has much better potential for growth than any developed country and it is also in a far better position than many of its emerging-market peers Now is the time to take advantage of all that India has to offer to investors
INNOvATIONrsquoS BOTTOm LINE Bill Chappell occupies a rare space as the CFO of Dubai Silicon Oasis a free zone dedicated to the development of technology across the emirate In the following interview he shares with CFO Magazine how far along technology has come in the UAE and why the figures are the most important aspect of his role as Chief Financial Officer
18
Cover StoryTECHNOLOGy
wwwthecfomecom
Dubai Silicon Oasis (DSO) occupies a vast 72 million square metre stretch of land in the northern reaches of the UAErsquos most globally recognised emirate Established in 2005 as a government-owned free zone devoted to the development of technology DSO has in the time since welcomed over 1087 companies into a space of which more than 59 of has been developed
Responsible for liaising with DSOrsquos companies both large and small whilst overseeing the free zonersquos balance sheet CFO Bill Chappell mans a unique station as a finance
executive with a keen eye for technological growth
ldquoIrsquove been with Dubai Silicon Oasis for nine years and my role is rather split I am the finance director but Irsquom also responsible
for our initiatives on technology incubation
and investment which is all very interestingrdquo
Chappell said Despite Chappellrsquos
years of experience in the technology industry granting him an imperatively strategic purview as CFO he makes clear what is most important as Chief Financial Officer
ldquoGetting the numbers right must always be the number one thing People talk about strategy and a number of other things but you must focus on the numbersrdquo
Chappell offered ldquoMy background is in technology companies for over ten years previous to coming here so I have a knowledge of technology which I brought to Dubai above all My overlap personally involves understanding technology whilst being a CFOrdquo
When Dubai Silicon Oasis first came into existence the area was undeveloped with no roads customers or residents Today the oasis acts as both a home for industry and residence whilst the Dubai Silicon Oasis Authority operates a number of services unique to companies which operate within the free zone A business incubation centre venture capital funding structure and various forms of entrepreneurial support are among DSOrsquos many aspects available to tenants
Said Chappell ldquoThere are three categories of companies at DSO There are smaller companies which deal more largely with our entrepreneur and incubator ecosystem The other extreme involves global firms such as Fujitsu or SAP and we look at their needs and make sure theyrsquore satisfied as customers They want our help to get setup And then there is the middle group and I meet them if they need my help as CFOrdquo
DSO counts SAP Porsche Fujitsu and Qordoba among its vast bank of companies
19
Cover StoryTECHNOLOGy
wwwthecfomecom
each of which are granted access to the Chappellrsquos well-honed expertise
ldquoBill has been involved in several meetings to gain updates about the company and offer input on what he thinks we should be focusing on whilst asking questions about our financial processes He also sits with the board on occasionrdquo said Loulou Khazen Baz founder of Nabbesh an online marketplace which connects professionals with work opportunities
ldquoDubai Silicon Oasis has been an important Investor at various stages of Nabbeshrsquos journey and a vital stamp of approval Our company has found priceless value in DSOrsquos support and the approachable nature of an involved CFO like Billrdquo
Chappell faces a number of challenges related to investment due to the region not ranking tech developments as high as traditional platforms such as real estate Additional concerns related to innovation have found themselves increasingly entering the CFOrsquos remit as related to encouraging ideas specific to the region Chappell is confident however that certain companies based in DSO are addressing these issues
ldquoIn this region one of my biggest challenges is getting people to understand
ldquoPeople talk about strategybut getting the numbers right must always be the number one thingrdquo
20 wwwthecfomecom
the complexities of tech Technology is a good investment class but the region is focused very much on real estate whilst the investment class of technology doesnrsquot rank as highrdquo said Chappell ldquoIn order to widen the general understanding we want to be developing solutions which address problems specific to the region We have one or two gems for example Qordoba a translation company which translates content in multiple languages The programme utilises artificial intelligence and as a result is getting smarter and smarter each time it is asked to translate so that it understands the meaning of what itrsquos translatingrdquo
Another key variable for DSO is centred on supporting
Dubairsquos goals based around becoming the worldrsquos capital for Islamic finance Chappell describes his role as CFO as one with ldquotwo thousand handsrdquo a multi-layered position which he seems to relish being held responsible for While DSO has grown tremendously in its near decade of existence the free zonersquos exuberant CFO sees lots more to come
Said Chappell ldquoI see us going from strength to strength Wersquove been in existence for nearly ten years When I joined it was empty desert Now we have over 1000 companies and an estimated 43000 living on site Within five years wersquoll also be further down the path and wersquoll be recognised for our contributions to the smart city and the Islamic economyrdquo
ldquoWithin five years wersquoll be further down the path and recognised for our contributions to the smart city and the Islamic economyrdquo
Dubai Silicon Oasis
headquarters
1080Companies in DSO
72millionDSOrsquos land mass in square metres
STAT FACTS
Cover StoryTECHNOLOGy
THE MIDDLE EAST ACCOUNTANCYAND FINANCE EXCELLENCE AWARDSWEDNESDAY 10 DECEMBER 2014AT THE JUMEIRAH BEACH HOTEL DUBAI
ACCOUNTING FOR EXCELLENCE
Once again the very best talent in the world of accountancy and fi nance will be celebrated by ICAEW at a stellar awards ceremony
ICAEW is a professional membership organisation supporting over 142000 chartered accountants around the world And on Wednesday 10 December 2014 at the Jumeirah Beach Hotel in Dubai wersquoll be recognising excellence in ten categories featuring Business Leader of the Year CFO of the Year Corporate Finance Deal of the Year and the Internal Audit Excellence Award
With an impressive line-up of speakers special guests and entertainment it all adds up to a trulymemorable evening
To submit a nomination or for more information visit icaewcommiddleeastawards
Nominations close on 1 October 2014
A WORLD LEADER OF THE ACCOUNTANCY AND FINANCE PROFESSION
400595_ICAEW_MiddleEast2014_Ad_NBAD_DEVERE_207x270_AW_3indd 1 27082014 1541
PROCUREMENTANALyTICS
wwwthecfomecom22
Return on Supply Management Assets (ROSMA) is a pioneering framework launched by AT Kearney after four years of testing one aimed at addressing the aforementioned procurement gaps The performance measurement standard was initiated with an eye on creating a benchmark for the procurement industry and providing a compass to direct investments
ldquoROSMA started in 2010 And it started out with conversations with the CFO There are a group of folks in the company talking about how great their achievements are however
the capital that procurement claims isnrsquot often obvious and can create a disconnect within the companyrdquo said AT Kearney Vice President Federico Mariscotti
This yearrsquos annual report surveyed a number of businesses and arrived at a series of significant findings which outline procurement patternsbull Top-tier companies generate
approximately $16 million in financial return per procurement employee yearly A reported 35 per cent of return derives from applying advanced methods
bull Mid-level performers typically
The first step for compa-nies in the Middle East is to take a good look at what they expect procurement to bring
Leading global management firm AT Kearney recently released a report on the evolving conversation which surrounds procurement A key aspect of the report spells out how much CFOs stand to gain by making more pronounced investments based on utilising procurement in terms of value The relative distance between CFOs and their respective companyrsquos procurement methods is cited as cause for concern
THE NEW LANGUAGE OF PROCUREmENT
generate four to five times of their investment in procurement valuation yet have not exemplified growth since 2011
bull Performers at the lowest level surveyed do not achieve monetary benefits which cover costs
bull The majority of organisations surveyed do not possess the tracking structures needed to analyse procurement performance
bull Regardless of company size or industry procurement
PROCUREMENTANALyTICS
wwwthecfomecom 23
The CFO community has not yet awakened to the value of procurement
performance varies though companies with sophisticated reporting techniques experience less variable performance
The reportrsquos express aim to create a benchmark for procurement follows a wave of process monitoring which found notice in the manufacturing industry in the 1980s supply chain research and engineering in the 1990s and sales and marketing performance being closely tracked in the 2000s
ldquoProcurement costs can represent anything from 20 to 90 of a companyrsquos total cost going from the public sector to consumer goods Yet the productivity of the team that presides over the supply market interactions has a way of explaining their value add using savings that do not add up to the PampL impact measured by finance Savings definitions different baselines and cost avoidance all contribute to a murky aggregate view of the impact on the businessrdquo added Mariscotti
In the Middle East the challenge is fundamental ndash getting the spend data in the first place Companies admit they often do not have a clear categorisation of intelligence lack an agreed definition of savings measurement and generally position procurement as a pre-eminently transactional activity lacking the mandate to contribute value Procurement processes as a result remain centred around purchasing are paper based and lack transparency The first step for companies in the Middle East is to take a good look at what they expect procurement to bring
wwwthecfomecom24
Influencedspend
The inconsequential The brand leaders
Leaning up
Note All three segments start with a common hypothetical spend of 1000 to normalize the case example
Source AT Kearney analysis
Source AT Kearney analysis
TOP QUARTILE
mIDDLE-TIER 50
BOTTOm QUARTILE
704
764
644
522
527
396
42
30
(138) (25)
(63)
19
39
28
15
21
4
3
60
32
18
Sourcedspend
Units of yield
Post-compliance
benefits
Additionalbenefits
Financial results
delivered
19x
17x
middle tier
bottom quartile
TOP-QUARTILE PERFORMERS DELIVER NEARLy TWICE AS MUCH VALUE AS MIDDLE-TIER PLAyERS
THE CFO COMMUNITy HAS NOT yET BEEN ldquoAWAKENEDrdquo TO THE VALUE OF PROCUREMENT
Procurement is not on the radar for those who gave the wrong answers to three essential questions
leadership with accountability for performance is clear but either the measures are not clear or performance is believed to be weak variable or unknown ndash or a mix
leaners and leaders answered all three essential questions correctly and also answered most or all other questions correctly
to the table and how it should support the business To make a steep change companies need to understand the multiple benefits which will occur for investments made once theyrsquove allowed for stronger procurement practices
The benchmarking aspects of ROSMArsquos report speak directly to CFOs based on an existing widespread inability to track and improve this often unquantifiable nature of procurement practices According to the report the CFO community has not yet awakened to the value of procurement and Chief Financial Officers are thus divided into three segments The brand leaders (25) those leaning up (63) the pack (774) and the inconsequential (138)
Said Mariscotti ldquoThis is a way to give procurement a measurable quality that CFOs can quantify You have to know what yoursquore doing with relation to procurement in order to do it well ROSMA gives you a number which helps you understand how good your procurement is working as compared to peers It lets you know whether or not you could be doing something differentrdquo offers Mariscotti
CFOs have exemplified an increasing ability to share in a companyrsquos strategic efforts whilst expand their respective remits Procurement is emerging as the latest segment of this conversation Understanding its value beyond the transactional is the first step for CFOs to fully engage with harnessing the potential of procurement and grow to become a part of the elusively paltry portion of brand leaders indicated in ROSMArsquos report
PROCUREMENTANALyTICS
The pack(774)
Al Sharid is the Vice Chairman of Emirates Transport and has enjoyed a successful career in which the lionrsquos share of his tenure has afforded him a seat at the helm of the business
ldquoI remember when I first received the GM of Tata in the late 80s he said to me lsquoYou are the youngest GM I have ever metrsquo I was 29 years old at the timerdquo Looking at Al Sharidrsquos rapid ascent to the top of his organisation can be mind boggling to the average observer however to those few who strive to push themselves to their limits it is perhaps more common a reality As with any top performer we can often see their desire for results and impact
early on in life and with Saeed the first stride of his race to the top began with an accounting degree in university
It was 1976 and the excitement of the UAErsquos biggest milestone moment its inception just five years earlier still clung to the air from Fujairah to Abu Dhabi and every emirate in between A nation was being built Saeed had just finished high school and went to the United States where he was to study engineering
ldquoI was not yet 18 years old it was 1976 and I was sent to America to study it was the beginning of a dream and a young liferdquo says Al Sharid Unfortunately Al Sharidrsquos academic tour of duty came to
THE EmIRATI DREAm Saeed Al Sharid is today an elder statesman in the world of UAE accountancy With decades of know-how based on chairing a number of key Emirati organisations Al Sharid is today atop his own family firm In the following exclusive interview he shares the importance of education the evolution of a nation and just how being an accountant has driven his many triumphs
an abrupt halt when his father suddenly passed and he was forced to return home ldquoWe are seven brothers and I am the middle one so during tough times we always come together and during this period the strength of my family pulled me through I have three younger brothers and I felt I had to be there for them I felt responsible for them My mother played an omnipotent role in pulling us through this dark moment in our history The death of my father forced us to become more independentrdquo says Al Sharid
Now back in the UAE with his plans of studying abroad dashed Saeed looked at the local schooling system within which Al
26
InterviewPERSONALITIES
wwwthecfomecom
Saeedrsquos desire for results took its first stride with an accounting degree in university
By Shane phillips
27
InterviewPERSONALITIES
wwwthecfomecom
Ain University had just opened ldquoAl Ain University was the pride of the Emirate at the time the students were like celebrities The first batch of graduates were all promised 50000 AED from HRH Sheikh Zayed I was one year late so technically I should not have graduated with the first batch but I was determined I worked an extra course load did summer school and soon caught up to the first class 50000 AED in 1981 was like 5000000 AED today so I was very motivatedrdquo says Al Sharid
Saeed not only caught up with the other students but he wound up graduating atop Al Ain Universityrsquos first class of graduates with a 38 GPA ldquoWe Saeed Al Sharid
28 wwwthecfomecom
to the organisationrdquo he says Saeed first joined Emirates Transport after seeing a small newspaper advertisement for an accountantrsquos position He applied but initially they did not want to hire a local because locals were too expensive After a few months however they called him back for an interview and offered him a job
Initially Saeed struggled to get a promotion or even a raise He worked tirelessly to develop himself and kept detailed notes of his work After nearly two years went by with no promotion he requested to meet with the Chairman of the corporation to discuss his career The Chairman was a Minister making him even more senior than his title implied Al Sharid was courageous and determined ldquoYou should not stay silent you have to take initiative your future is in your handsrdquo says Al Sharid
ldquoI met with the Chairman and told him about my work and what I wanted to do He did not talk he just listened and that was it It was a 15-minute meetingrdquo says Al Sharid Three days after Al Sharidrsquos pivotal appointment he was promoted to Deputy General Manager Directly from a Trainee to DGM skipping all the roles in between at the age of 27 years old They doubled his salary and catapulted him into a senior leadership role
ldquoI felt it was quite strange to move up that fast and personally was not sure I could handle the job I had a lot of resistance from the board I had people in their 50s reporting to me and they were not happy about it So I just took a step back and did not try to get involved in their work too fast I went slow and watched my step This was a very important
ldquoThe UAE was a brand new country and a lot of work was being done to develop the nationrdquo
never had any idea of a career path and there was no such thing as career counsellors or lsquocareer servicesrsquo at the school So when you graduated most people just joined the Ministries The UAE was a brand new country and a lot of work was being done to develop the nation The Federal Government paid the highest and so one just joined them There was no grand vision or dream that I was off and chasing In those times you simply tried to do the next best thing So I ended up working in the Ministry of Health as an accountant Back then a university degree was a veritable qualification and it had a lot of market equity today it wonrsquot even get you in the doorrdquo
As the Middle East market evolves not only are university degrees becoming more common but so are post graduate degrees such as MBAs and even PhDs As such the competitive positioning of professional qualifications are gradually eroding over time
ldquoTo stay competitive executives today will require deep and specialised knowledge of their respective industries an intellectual arbitrage that provides superior results To beat the market to manage the risks to develop a sustained competitive edge For this executives need to stay in a role for the full strategic cycle which is at least four years in durationrdquo says Sharid In the case of Al Sharid he was there for 33 years
ldquoDo you just want a job or are you looking to make a contribution to your company Too many young people today are just looking for a title or a position The difference between those who make it into senior roles and stay there is the desire to create impact to add value
InterviewPERSONALITIES
2012year Moodyrsquos upgraded the UAE economy from developing to emerging
37The UAErsquos global rank for GDP
STAT FACTS
moment for me to gain valuable leadership experience early on To make my learning curve even steeper the General Manager quit after two years and I became the GM at the age of 29 years oldrdquo explains Al Sharid
He ascended to the top job in less than five years and stayed in the position for almost twenty years He was totally committed and could even be found in the bus yard at four in the morning to greet the drivers as they started their shifts ldquoThe key to being successful in business is to keep your finger on the details Some people let the details slip and if this happens you will suffer I get into the yard I meet the drivers I meet all the staff If you saw us you will not know who was the GM or who was the driver You have to realise people will never work for you they will only work with you To me Emirates Transport is like my familyrdquo says Al Sharid
When asked what his keys to success are he says ldquoI think if I was not an accountant I would not be a good leader I would not be a good manager In my opinion trying to do business while not understanding accounting is like getting into the ocean and not knowing how to swim you will drown The Chief Executive Officer who does not know how to create the financial statements is always at the mercy of his Chief Financial Officer He cannot take any big decision on his own and he will not even be able to challenge the CFO Accounting is the bedrock of any business and a critical skill set for any leader No one can argue with this factrdquo says Al Sharid
With over 20 years of experience in tow and the related chairmanships to boot Al Sharid
ldquoTrying to do business while not understanding accounting is like getting into the ocean and not knowing how to swim you will drownrdquo
has since early last year partnered with his family to form Al Sharid Auditing Though the Emirati youth is not as keen to pursue positions related to accountancy as Al Sharid was he feels that there is hope to close the gap
ldquoIt is difficult to find an Emirati expert I studied the audit market specifically and there were others like me then But now you break Emirati auditing involvement into three categories The first involves the big firms This is followed by individual smaller enterprises But thirdly a lot of locals opt to work with the government also Most are not managing their own firms they just have a partnership and they are building thatrdquo Al Sharid explains
ldquoAl Sharid Auditing however is a firm that includes my brother and our two sons which make up a body of qualified professional auditors We established this firm last year and work closely with the government We decided to make one firm together instead of having many smaller entitiesrdquo
Moving forward Al Sharid plans to grow his familyrsquos firm by applying the very belief system which has catapulted him to his position of power Marketing concerns which are designed to furthermore announce how tailored Al Sharidrsquos offerings are at present a key variable to forging ahead
Said Al Sharid ldquoMoving forward wersquore focusing more on the marketing of our firm Itrsquos a matter of not exactly expanding but going over the right deals The market is tough and the small jobs are easy but we donrsquot need them We donrsquot want to be in many rooms we want to be in the important onesrdquo
29wwwthecfomecom
InterviewPERSONALITIES
1UAErsquos rank among GCC nations for chosen hub of all major accountancy bodies
STAT FACTS
Latest insights from PwCrsquos 15th Annual Global CEO Survey revealed that 59 per cent of CEOs see emerging markets as more important than developed markets to their future What is making emerging markets such a pressing priority for C-suite executives Why are emerging markets increasingly grabbing headlines
Emerging markets are large fast-growing and ambitious markets best known for being the growth engines of todayrsquos global economy Research (1) suggests that emerging market countries are expected to amount for more than 60 per cent of global GDP growth ndash a clear indication of the wealth of opportunity they present
Understanding emerging marketsBased on estimates by the International Monetary Fund emerging economies are expected to grow two to three times faster in comparison to developed nations Explaining this fast-growth and the rise of these emerging markets an article on Forbescom details that ldquoduring the US housing crash and resulting credit crisis of 2008 world markets were saved from a total disaster thanks to the big emerging markets ndash mainly Brazil India and China The global credit crisis was one of the longest deepest and most painful in history It toppled Wall Street icons like Lehman
The following report explores emerging markets from West to East which are at the helm of economic development trade and innovation and highlights what their rising popularity means for the growth of your business
Brothers required government bailouts of bulge bracket banks and shocked the global economy with a deep economic recession and even a deeper crisis of confidence Its most important legacy though may be one that has yet to fully unfold the crisis revealed a new world order in terms of economic and market dynamics Emerging market economies finally arrived as
30
Market IntelligenceANALyTICS
wwwthecfomecom
ENTERING EmERGING mARKETS STRATEgIES RISKS ANd OppORTuNITIES
Projected annual GDP growth 2014 amp 2015
PANAMA
67
PERU
RANK42
55
Projected annual GDP growth 2014 amp 2015
Ease of Doing Business
RANK55Ease of Doing
Business
TOP TEN MARKETS
(1) Source here Accenture Research ldquogearing up for growth ndash five imperatives for success in emerging markets 2011 Henry Egan and Armen Ovanessoff
31
Market IntelligenceANALyTICS
wwwthecfomecom
LATVIA
CZECH REP
MALAYSIA
THAILAND
SOUTH KOREA
CHINA
RANK75
41
21
50
45
35
74
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
CHILE
RANK 34
43
Projected annual GDP growth 2014 amp 2015
Ease of Doing Business
RANK 24Ease of Doing
Business
Ease of Doing Business
RANK 6Ease of Doing
Business
RANK18Ease of Doing
Business
RANK 7Ease of Doing
Business
RANK 96Ease of Doing
Business
POLAND
32
RANK45Ease of Doing
Business
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
Source httpwwwbloombergcomnews2014-01-29qatar-china-top-ranking-of-frontier-and-emerging-marketshtml
powerful essential and permanent contributors to global economic growth and sustainabilityrdquo
Bloombergcom recently ranked the top emerging markets based on their performance on 19 economic financial political and social indicators In order of ranking the top ten markets were
CHINA
SOUTH KOREA
MALAYSIA
CHILE
THAILAND
PANAMA
PERU
LATVIA
POLAND
CZECH REP
1 6
2 7
3 84 9
5 10
Market IntelligenceANALyTICS
32 wwwthecfomecom
Making an entryIf your business is looking to enter any of these emerging markets itrsquos worth considering the following checklist
1 Assess your readiness The biggest mistake you can make is to enter a market without proper evaluation of your business Donrsquot do it just because everyone else is Like every other major business decision be sure to speak to your Board of Directors partners investors stakeholders and most importantly your CFO and certified accountants Make a business plan enlisting your objectives goals investment strategy potential risks etc
2 Research research research Do your homework Treat emerging markets as any other international expansion venture and do thorough research on the new market ndash Who are the competitorsWhat is the price point for your product What are the customer demographics What kind of infrastructure do you need for the manufacturing production or distribution of your product
3 Understand the legal framework Emerging markets might not have rules and regulations as clearly spelled out as your home country Invest some time and money in understanding how business procedures work A very obvious area of focus for UAE-based companies is tax Since the UAE is a tax-free economy companies arenrsquot exposed to tax accounting and other legislation surrounding
ndash failing to adapt to the needs and expectations of the local customers is surely a recipe for failure Time and again companies havenrsquot been able to create a customised offer and have had to exit these markets with huge losses A success story however is that of the Haier Group Haier famously introduced washing machines to specifically suit the water pressure levels in the households of India ndash an emerging market strategy that worked very well in their favour and helped them become leaders in that sector Another great example is that of Coca-Cola as explained in an online Reuters article by Matt Reilly ldquoIn Brazil Coca-Cola has used social media to better understand consumer preferences and has developed a successful local network to supply traditional Coca-Cola products as well as fruit juices tailored to local tastesrdquo
7 Local currency This is a complex yet critical area to consider when entering a new market Ask yourself questions such as ndash What is the local currency rate How does it compare to the currency in your home country Is the country import-led or export-led and what impact can this have on the global value of the currency Remember that fluctuations in currency rates can hugely effect your overall investment and thereby the return on investment
8 Build partnerships When entering an unknown territory it is quite useful to have the backing and support of peers who can help you in case of unforeseen challenges This is
this Another area to consider is corruption ndash emerging markets are notorious for high corruption red-tape and bureaucracy Speak to your company lawyer to assess these areas and take proper measures to avoid them before-hand
4 Invest in local talent Working with people already accustomed to the new market avoids the hassle of relocation and reduces costs But more significantly gives you skilled talent to work in these unique environments This also works in favour of your company as it gives you a clear understanding of the kind of compensation packages you will have to offer to your employees For instance employees based in China might want high remuneration and low healthcare benefits while in India it may be quite the reverse Recruiting local talent will also have a trickledown effect ndash your employees will easily be able to cater to the local customer needs without the need for intense training
5 Supply chain 44 per cent of business leaders surveyed consider accessing the right supply chain capabilities extremely or challenging in emerging markets according to Deloittersquos Globalisation Survey Make sure that you know who your suppliers will be what the production costs are whether their production procedures fit your time constraints and if the final product matches your level of quality
6 Cater to local market demands This is one of the most important aspects of all
Do your homework Treat emerg-ing markets as any other internation-al expansion venture
Market IntelligenceANALyTICS
33wwwthecfomecom
the very reason why Mergers and Acquisitions are a popular way to enter into emerging markets Many companies piggyback on their clients who are entering these markets For instance if you are an IT consultancy working on a major project for a manufacturing and trading company with operations across India and China you can use their resources and expertise to explore opportunities in these countries
Remember to consider these steps every time you enter a
new market as every locality has its own set of unique needs One strategy doesnrsquot fit all
Surviving fierce market conditionsWhile the massive opportunity that lies within emerging markets paints a pretty picture businesses need to be wary of bottlenecks such as corruption volatility gaps in laws and regulations and strong competition There have been several high-profile cases of multinational companies withdrawing from emerging
markets owing to immense corruption pressures
There is also a high percentage of inherent risks in these markets which amount to many companies not succeeding in their first attempts It is important to take your time when adapting to these markets and fully understand the business dynamics Following recent case studies and going over the lessons learnt by multinational companies who have made an entry into these markets consider the below
bull Is your companyrsquos head-office ndash and senior management ndash located in your home country without any C-level representation in the new emerging market
bull Are you focusing all of your resources on doing business in the emerging market at the cost of losing profits in your home market
bull Have you researched local competitors in these markets who may already have a strong standing and proven models of success
bull Are you using the same ldquoentry approachrdquo and business model across different emerging markets
If your answer to one or more of these questions is yes it may be time to re-evaluate your presence in these markets and map out a different strategy
Finally remember that no matter what the outcome of your admission to these markets might be your business is sure to emerge out of this stronger tougher and ndash of course ndash ready for a new challenge
of companies believed they had invested more resources in
emerging markets than was required
entered a market without fully assessing the ability of the supply chain to support the expansion
entered with the wrong pricing model and an inappropriate
operating model
CONSIDER THE RISKS
48
24
20
There is also a high percentage of inherent risks take your time when adapt-ing to these markets and fully understand the business dynamics
Source Emerging markets expansion and the supply chain Economist Intelligence unit survey conducted on behalf of EY September 2010
34
CIMA INTERVIEW
wwwthecfomecom
The Chartered Institute of Management Accountantsrsquo (CIMA) Managing Director Andrew Harding visited Dubai to host the Institutersquos seminar on global management accounting principles In the wake of CIMA revising their well heralded syllabus Harding discussed with CFO Magazine what the newest edition held how CIMA is applying a digital focus to its courses and just how CFOs can gain from it all
CURATING CURRICULUm
35
CIMAINTERVIEW
wwwthecfomecom
can give CFOs something they can take and something they can measure their own management accounting services against They can benchmark using this and they can utilise this to see their progress
Part of that is having professional management accountant in place I donrsquot think the landscape matters I believe that there is a common business need wherever you may be around the globe
All of the emerging markets need these skills The first aspect that accounting schools teach is about auditing skills because theyrsquore interested in protecting investments Then they teach you how to keep your business sustainable and to have a sustainable business you need to have a management accountant in place So itrsquos not just here in the UAE where we see these demands we see the same demands in China Indonesia and other powerhouse economies We see their skills shortages and we see the need for solutions in those areas
Talk to me about how this new syllabus works to promote the evolution of a CFOThis syllabus that wersquove
Can you expound on just what can be found within the new CIMA syllabusWe just revised the syllabus we do that every four to five years What we have done this year is a very significant revision It is based from a complex study that we have carried out to over 3000 people from 200 companies globally It is the very first revision since the joint venture with CIMA and AICPA So this has allowed us to attain a syllabus rich with all the data from all the continents in the world For the first time wersquove had real involvement from companies in the USA in this project
Why is the collaboration between AICPA and CIMA significantMost important is the Chartered Global Management Accountant (CGMA) designation that AICPA and CIMA both issue for qualified management accountants Wersquoll have a common curriculum and common examination which will begin on January 1 which gives us a global designation for management accountants wherever they are around the world There are plenty of accounting bodies who claim to be global but actually this is the only
genuinely global designation This is because it has the only one with a North American participation in it So we can say that the CGMA will be just as well-recognised in the USA as it is in Dubai
With the global landscape in mind how do you create an even objective that applies to localities which may prove widely differentialThe landscapes are different but businesses have common needs wherever they may be What wersquove particularly seen since the global financial crisis is that companies are actively looking to build management accountant capability to build that capacity within their organisations They donrsquot want to have a poor quality of information that lacks insight being used in their businesses So they see management accountants can bring solutions to that As a result of all the work wersquove done with companies who participated in the syllabus wersquove also put together a series of what we call Global Accounting Principles This is a series of principles which describes what good management accounting looks like and what top quality management accounting in a company should be producing This then
ldquoCompanies are actively looking to build man-agement accountant capability to build that capacity within their organisa-tionsrdquo
36 wwwthecfomecom
worked on acknowledges the skill set needed by professionals throughout their career Therersquos a base level of competence that is needed but beyond that there is more There is business acumen the ability to communicate and influence and finally the ability to lead So you start off enhancing your raw technical accounting skills Then you need to place that into the context of the business that you are in Then as you move forward and as you rise to become the CFO yoursquoll need the others You have to learn how to present your work in a way that can influence and make an impact in the business The final piece is the ability to lead projects and other functions and to a great extent lead the board of directors Thatrsquos how the context works itrsquos not just about technical knowledge
How do you find that CFOs in the GCC region are responding to this programmeThe CFO has a real challenge on his hands now In 1975 80 per cent of corporate value is showing on the balance sheet By 2010 that dropped to less than 20 per cent Your traditional PampL reports no longer reflect the value of the business or how the business drives value
All things that should be of interest to investors is missing With things like the integrated report initiative wersquore starting to see the other dimensions that add value to business For CFOs thatrsquos all about strategic thinking and considering the long-term objectives Being articulate in implementing those strategies keeping in mind the risks and opportunities that the business faces We are also nowadays witnessing a whole new world of transparency around that
Are there electronic aspects to CIMArsquos advancing approachThe interactive case study simulates a real working situation and it tests how they can apply their knowledge in real life situations Theyrsquoll be presented with a scenario a few weeks before they take the exam so they can prepare for it They then go to an exam centre where they are asked questions about how they will deal with a certain situation in the real world Theyrsquoll get an email from the CFO giving them a certain task for a particular period of time We want to make it as close to reality as possible so students taking the exam will be assessing situations based on real life scenarios
ldquoThe CFO has a real challenge on his hands now as traditional PampL reports no longer reflect the value of the businessand [the role] must focus on strategic thinking and considering long-term objectivesrdquo
218KCIMA members worldwide
STAT FACTS
CIMA INTERVIEW
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
38
ERPANALyTICS
wwwthecfomecom
Faster more nuanced IT solutions are available to the modern day CFO Whilst Chief Financial Officers are called upon to analyse data across a number of spectrums the digital tools on hand are likewise being expanded to aid in focusing more squarely on the bottom line
ExCELLING WITH ERP
The global landscape is today firmly entrenched within a digital model As a result CFOs whom are called upon to take a larger role in a number of variables must also increase their abilities with respect to utilising the many upsides which tech innovations offer a business When surveyed about their most pressing concerns CFOs generally return a varying collection of responses Revenue growth regulatory changes and meeting quarterly goals are among the chief concerns Virtually every obstacle can be hurdled by way of maintaining the order of financial reporting and data which has long been
synonymous with the Chief Financial Officerrsquos remit A widening berth of ERP solutions is making this data all the easier to come by
Despite how sophisticated the market is today it was not long ago that ERP departments once spent days processing business reports
Said Rohan Tejura Assistant Vice President Focus Softnet ldquoTraditional ERP systems were solely data repositories Moreover these repositories werenrsquot real time and were incredibly dependent upon locational connectivity With the emergence of smarter development platforms more versatile devices and
39
ERPANALyTICS
wwwthecfomecom
more intuitive designs of system development the overall experience of the ERP now extends from data warehousing to reporting analysis trend mapping business intelligence and governance oriented capabilities Yet these solutions amazingly execute all of these deliverables via portable handheld devices and through cloud environmentsrdquo
New generation ERP systems must now be on the go whilst including up to the minute analytics to provide deeper insight into the business ERP Analytics tools use historical data captured from various business functions to provide valuable information for efficiency and business performance each incredibly priceless to a leading CFO
Finesse is an ERP provider which is continually addressing the transformation of output which the ERP industry is offering the equally transitioning role of CFO
ldquoWe provide end-to-end business management solutions to SMEs and Enterprises Our approach to ERP is much more than providing simply an operational management systemrdquo said Finesse COO Sunil Paul
ldquoWe believe that todayrsquos businesses need much more than integrating sales with inventory accounting and manufacturing but also to have seamless integration with all their sales channels including the point of sales ecommerce and inbound sales solutionsrdquo
A major im-petus of the ERP-cen-tered growth is based on how effec-tive com-prehensive real-time data proves to be for the CFO
40 wwwthecfomecom
before thereby creating new global benchmarks for overall economic growth
Microsoft Arabia CFO Sadrul Khan offered insight into just how far the knowledge economy has influenced regional financial leadership by explaining how one of the most prioritised technologies by CFOs in the region is social platform monitoring
ldquoOne of the five technology choices that CFOs tend to prioritise in boosting productivity efficiencies and faster decision making in the fast paced business environment which include a social platform that monitors trends customer sentiments and helps process mashable data for customer centricity and business growthrdquo said Khan
A major impetus of the ERP-centered growth is based on how effective comprehensive real-time data proves to be for the CFO Whether employed as on-premise ERP software-as-a-service or cloud-based solutions a nearly identical ethos is being utilised Allowing the CFO to quickly access the performance of all facets of a business is paying dividends in the boardroom a reality which is showing itself increasingly in the Middle East
The technologically-charged relationship between ERP solutions and the regionrsquos CFOs is expanding and as a result has catalysed what many see as GCC economic performance outstripping that of many economies outside of the region as a result
In order to compete in todayrsquos fiercely competitive environment organisations need to think both innovatively and out of the box They require more insights about their business and their customers and need to ensure that they are able to meet the expectations of their internal as well as external stakeholders Enormous amounts of data both structured and unstructured is continuously being generated within the internal and external systems of the organisation which if analysed can be of immense value both to the business and subsequently the stakeholders associated with the organisation
With the the era of CFOs labouring over spreadsheets now in the past given how many business frontiers have become so dependent on mobile options such as the cloud more and more tech companies are providing the regionrsquos CFOs with information technology that converts traditional internal and external data into rich visual insights This information is then used for faster decision making and provides the ability for a CFO to assess manage and control risks Regional CFOs have grown enabled to drive corporate strategy accordingly demonstrating how the knowledge economy is now in full force amongst the Gulfrsquos corporates
Given that advanced IT has now become a regular CFO tool the regionrsquos CFOs are subsequently making faster decisions and driving internal growth models with greater speed and agility than ever
Tech companies are providing the regionrsquos CFOs with information technology that converts traditional internal and external data into rich visual insights
ERPANALyTICS
Donrsquot discoveritrsquos counterfeittoner afteritrsquos too lateOriginal HP Toner works first time every time1 unlike cheap toners which fail over half of the people who try it2 Non-HP toner can compromise your printerrsquos performance to give you streaked blotchy or faded prints Only original HP Toner cartridges deliver unmatched quality for the most professional-looking prints 100 of the time1
1 A QualityLogic 2010 study commissioned by HP comparing original HP LaserJet Monochrome print cartridges with nine brands of non-HP toner cartridges available in Europe Middle East and Africa for the HP LaserJet P1505 and P4015 printers HP 36A and 64A For details see wwwqualitylogiccomEMEAmonotonertestpdf 2 From a 2012 EMEA Lyra Research study commissioned by HP Results based on a total of 1050 HP Color LaserJet users who have used both original HP and non-HP toner cartridges of whom 552 experienced problems with non-HP cartridges
copy 2014 Hewlett-Packard Development Company LP
42
Private Equity ANALyTICS
wwwthecfomecom
The rise of PE-backed acquisitions is forcing CFOs to develop an entirely new set of skills
THE PRIvATE EQUITy CFO
The CFOrsquos utility in the world of private equity is without question on the rise The once-held belief of the CFO existing solely as the ldquoaccounting guyrdquo has been abandoned Over the last 20 years the role of CFO has become more demanding - requiring not just finance and accounting acumen but also a financial literacy in corporate planning risk management MampA assetliability management and regulation This evolution has been driven by a number of
key factors Yet the private equity industry which is now reshaping the corporate landscape through active ownership is by far the most significant factor driving change within the role of the CFO
PE-backed buyers today represent a larger percentage of overall buyers in the corporate acquisition marketplace than ever before Data provider Prequin estimates that as of June 2014 the capital raised by PE funds that
has not yet been deployed amounts to $114 trillion globally The result of this ldquodry powderrdquo is that a vast quantity of corporate acquisitions in the coming years will be undertaken by the private equity industry As such CFOs will be more accountable to demanding ldquosmart moneyrdquo shareholders than at any point in recent history Budgeting accounting and financial reporting will no longer exist as sole priorities but as a core competency among a
ldquoBy effec-tively using real-time data CFOs can create a dynamic process that proac-tively drives performance account-ability and value crea-tionrdquo
By Aaron Heidari
43
Private Equity ANALyTICS
wwwthecfomecom
robust set of complimentary and required skills Most of all the bar for CFOs is rising as PE investors will only accept above-average performance from their management teams
CFOs were once more reactive in function setting budgets based on other executivesrsquo plans and managing the flow of reporting to shareholders on a quarterly and yearly basis Today CFOs are required to become proactive managers of their respective businesses alongside their C-suite compatriots using a granular data-driven approach to aggregate analyse implement and report on every aspect of a companyrsquos operations
An important tool to drive this value creation process are KPIs Yet KPI structures including both aggregation and output are generally not up to the standards required of private equity investors prior to an investment being made
ldquoThe benefits of using KPIs and monthly reporting packages are significant By effectively using real-time data that is actionable and by partnering with functional area leaders within the organisation company CFOs can create a dynamic process that proactively drives performance accountability and value creationrdquo said Amanda Robinson Vice President of Accordion International in Dubai a consulting firm which is comprised of former private equity and investment banking professionals who
MENA region Cumulative Funds Under Management Since 2008
Source Zawya private Equity Monitor
19 636 20 36321 586
22 64323 506 24 250
-
5000
10000
15000
20000
25000
2008 2009 2010 2011 2012 2013
Cu
mu
lati
ve f
un
ds
($ m
)
$15mAverage MENA PE investment size in lsquo13
50Percentage of investment in IT and energy sectors
STAT FACTS
44 wwwthecfomecom
work with companies to deliver cost-effective project execution services
Active shareholders whose money it is being spent will typically require a data-driven justification before approving any budgets capital expenditures or new acquisitions Furthermore in many private equity backed companies the use of debt and the matching of shorter-term bank financing with longer-term investments will only be considered after a robust analysis is conducted to understand the companyrsquos ability to service that debt in the future This evaluation is not simply to identify revenues expenses and profits Itrsquos about drilling down into every transaction and rooting out data processing and reporting At least that is the expectation
The most valuable CFOs are those who have the ability not just to scrutinise and understand the financials but all also possess a wider grasp of the underlying data which truly comprise the business As an investor who has just acquired a stake in a new business I want a CFO who can manage the transition and stay ahead of my expectations Most of all a CFO should impress upon the companyrsquos shareholders a new way of doing business The first 100 days of an acquisition are said to be the most important During this period the CFOrsquos worth will be established when the new financial plan is due and the platform for the next five years of growth is presented
A CFO should man-age the tran-sition stay ahead of expectations and impress upon the companyrsquos shareholders a new way of doing business
Investment Volume By Sector Since 2006
Investment Volume By Sector in 2013
Source Zawya private Equity Monitor
1
3
30
17
3
28
3
4
6
4
6
5
17
9
9
6
9
5
8
6
6
2
3
10
Education
Education
Information Technology
Information Technology
Other
Other
Telecoms
Telecoms
Media
Media
Transport
Transport
Oil amp Gas
Oil amp Gas
Healthcare
Healthcare
Consumer goods
Consumer goods
Food amp Beverages
Food amp Beverages
Leisure
Leisure
Manufacturing
Manufacturing
ANALyTICS
Private Equity
2000857 NBAD ratibi mag ad 200x268 Finalindd 1 92514 1017 AM
46 wwwthecfomecom
THE FUTURE OFACCOUNTING EDUCATIONAddRESSINg THECOMpETENCY CRISIS
Have you ever stopped to think about how the accounting profession has changed since you graduated from college Recent graduates can answer this question by reflecting on the last two or three years whereas for other more seasoned professionals answering this question requires a bit more thought and memory searching Indeed we can all think of ways that the field of accounting is remarkably different today from the one we likely envisioned during our college daysmdashregardless of which decade we each donned our cap and gown This gradual transformation of the accounting profession leads to two important questions related to competencies bull Which competencies are important for success inaccounting todaybull Were these competencies consciously developed as partof your accounting degree programme
We suspect that more than a few of you would answer ldquonordquo to the second question Put another way our profession may be facingmdashmore so than at any time in the pastmdasha ldquocompetency crisisrdquo that is a gap between the competencies needed for professional success and those taught in our college classrooms today We propose a three-pronged strategy or ldquogame planrdquo for overcoming this competency crisis and in turn better preparing accounting graduates for the challenging world they will face First all of us accountants need to understand the changes that have already taken place in our profession and perhaps more importantly anticipate the changes that are on the horizon Second we need to educate ourselves and future generations of accountants so that as a collective group we can deliver the expanding set of competencies demanded in todayrsquos dynamic organisational
contexts Third as professional organisations and as individuals we need to think beyond ourselves by asking How can I (or we) help the accounting profession address the competency crisis
A Shift Toward Integrated ThinkingMany articles and white papers have been written that describe in detail the changes that have occurred in our profession over the last few decades but for our purposes wersquod like to distill these changes down to one crucial idea How does the accounting function add value to an organisation Accountants have evolved from support-oriented personnel who hand off information to others who actually make decisions into business partners who ldquohave a seat at the tablerdquo with managers
By peter C Brewer James E Sorensen CpA CgMA and david E Stout
47wwwthecfomecom
1048576bull What regulatory risks mayaccompany the proposal
1048576bull What social and environmentalfactors will we face if for example the proposal requires investing in overseas operations
1048576bull What types of employeeresistance may arise if we implement the proposal and how will we overcome the root causes of any such resistance
1048576bull Can and how should we valuefuture options associated with the proposal such as expanding or contracting the investment over time as new information becomes available
1048576bull Should we use debt or equity tofund the proposal
In short accountants have evolved to become integrated thinkers who enable EPM by partnering with managers across the organisation to add value Yet as EPM has gradually become the centrepiece of our professionrsquos value proposition accounting education hasnrsquot done enough to embrace it To overcome this gap wersquod like to further suggest that the concepts of competency integration and EPM need to come ldquofront and centrerdquo as we move forward in educating the next generation of successful accounting practitioners
Accounting Education No Longer on the SidelinesRecently a task force consisting of members of IMAreg (Institute of Management Accountants) and members of the Management Accounting Section (MAS) of the American Accounting Association (AAA) addressed the competency issue How should accounting education change fundamentally to help close the competencies gap The efforts of the task force led to
cash flows and how to apply discounted cash flow (DCF) decision models such as net present value (NPV) is of foundationalmdashsome might say critical mdash importance But integrated thinkers draw on an understanding of organisational strategy coupled with a broader set of competencies (beyond what might be considered technical or foundational knowledge) when making these types of decisions For example they consider how behavioural issues may influence the capital investment decision-making process Perhaps the financial estimates contained in the NPV analysis are too optimistic because the manager who prepared the numbers has a vested interest in seeing the project approved Decision makers also need to consider issues such as leasing vs buying a capital asset and the corresponding impacts on the financial statements and ratios that are tracked by investors and lenders What nonfinancial factors are associated with the proposed investment Add in the tax consequences of capital investment decisions coupled with the need to maintain internal control over any new business processes tied to these decisions and the need to think in an integrated fashion across a variety of accounting competencies becomes apparent
Furthermore becoming a true business partner with managers across the organisation requires more than simply integrating various accounting competencies It also means thinking like a business manager or a chief executive officer (CEO) Returning to the capital budgeting example an integrated thinker will ask questions such as
across the organisation Together they formulate and plan strategies then participate in collaborative decision-making processes that execute those strategies in a manner that adds stakeholder value Said another way accountants have evolved to become enterprise performance managers This shift in our orientation from a support function to an enterprise performance management (EPM) role has enormous implications for defining the determinants of success within our profession the most important of which involves becoming collaborators and ldquointegrated thinkersrdquo Take for example a common but important business decision process capital investment analysis Certainly technical knowledge regarding how to estimate relevant after-tax
48 wwwthecfomecom
expanding capital budgeting discussions to include financial statement impacts tax consequences and internal control issues integrates topical coverage across the External Reporting and Analysis Taxation Compliance and Planning and Assurance and Internal Control competencies shown in Figure 1
Third accounting curricula can incorporate a broader set of management competencies For example evaluating capital investment proposals from the perspectives of change management (Leadership) social and environmental issues (Ethics and Social Responsibility) regulatory concerns (Governance Risk and Compliance) and capital structure (Additional Core Business Competencies) brings a CEOrsquos perspective to the decision-making process
Fourth accounting curricula should include foundational competencies such as proficiency with spreadsheets and written and oral communication In the context of capital budgeting this may include asking students to use Microsoft Excel to perform a sensitivity analysis and then to present their findings to the entire class
Working to Fix the ProblemAt this point although you may agree with us that therersquos a competency crisis within the accounting profession you may be wondering What does this have to do with me What can my organisation do to help address this so-called competency crisis The answer a lot Practice partners and academic partners can help the accounting profession overcome the competency crisis That said letrsquos take a closer look at the role of practice partners first
improvement) and accounting competencies (external reporting and analysis planning analysis and control taxation compliance and planning information systems assurance and internal control and professional values ethics and attitudes) Of critical importance to the framework is the assumption that the set of competencies contained in Figure 1 would be developed and integrated over time through a blend of formal education (including continuing education) training and job experience
What levels of integrationmdashon the road to developing integrated thinkers in accountingmdashare possible First accounting educators can integrate within a single accounting competency So referring back to our capital budgeting discussion teaching computational models such as NPV analysis coupled with a review of various behavioural issues associated with capital investment decisions would be an example of integrating within the Planning Analysis and Control competency listed in Figure 1
Second professors can integrate across accounting competencies For example
a recently published article that contains a proposed framework for accounting education reproduced here as Figure 1 The framework is general in the sense that itrsquos meant to apply to all accounting students not subgroups based on career specialisation such as tax assurance services corporate finance and the like Itrsquos based on the idea that accounting educators can better prepare students to deliver our professionrsquos EPM value proposition through integrated competency-oriented curricula (For more see ldquoFocusing Accounting Curricula on Studentsrsquo Long-Run Careers Recommendations for an Integrated Competency-Based Framework for Accounting Educationrdquo in the May 2014 edition of Issues in Accounting Education)
A glance at Figure 1 reveals three levels of competencies foundational competencies (communication ability to leverage technology and analytical thinking and problem solving among others) broad management competencies (including leadership ethics and social responsibility and process management and
Proposed Competencies-based Framework for Accounting Education
FOUNDATIONALCOMPETENCIES
ACCOUNTING COMPETENCIES
BROAD MANAGEMENT COMPETENCIES
leadership
ExternalReportingamp Analysis
PlanningAnalysis
amp Control
TaxationComplianceamp Planning
InformationSystems
Assuranceamp InternalControl
ProfessionalValues Ethics
amp Attitudes
Communication
Quantitative
Interpersonal
Technological
Analytical Thinking ampProblem Solving
Ethics amp SocialResponsibility
ProcessManagement ampImprovement
GovernanceRisk amp
Compliance
AdditionalCore BusinessCompetencies
Although you may agree with us that therersquos a competency crisis within the account-ing profes-sion you may bewondering What does this haveto do with me
A practice partner should be or become a CMAreg (Certified Management Accountant) maintain professional certification by completing required Continuing Professional Education (CPE) hours and regularly read the IMA publications Strategic Finance and Management Accounting Quarterly
In addition there are a number of excellent resources that deal with topics covered in this article and that IMA makes available to its members
Strategic Finance PowerPacks(wwwimanetorg SFPowerPacks) These are resources focused on contemporary topics similar to those discussed earlier Current offerings include Risk Management Strategic Planning IT Skills amp Software and Internal Controls Each PowerPack includes a combination of resources such as research studies articles and links to webinars
Statements on Management Accounting (SMAs)(wwwimanetorgresources and_publicationsresearch_ studies_resourcesstatements on_management_accounting aspx) SMAs represent monographs classified into one of the following six categories Leadership Strategies and Ethics Technology Enablement Strategic Cost Management Business Performance Management Finance Governance Risk and Compliance and the Practice of Management Accounting Multiple items are available within each category For example the Practice of Management Accounting category includes (among other items)
49wwwthecfomecom
the Definition of Management Accounting and Implementing Shared Service Centres
Research Studies (wwwimanetorgresources_and_publicationsResearch_Studies_and_ResourcesAll_reportsaspx) The ldquoThoughtLeadershiprdquo section of IMArsquos website includes research covering a broad range of issues classified into seven categories For example under the ldquoGlobal Business Environmentrdquo category the following two research reports are available ldquoKey Differences Between IFRS and US GAAP Impact on Financial Reportingrdquo and ldquoCosting Methodologies and Cost Management Practices in the Peoplersquos Republic of Chinardquo
IMA Leadership Academy (www imanetorgprograms_events leadership_academyaspx) As described on the IMA website this programme is designed to assess a memberrsquos leadership status enhance that individualrsquos skills (principally through monthly webinars) and recognise leadership achievements These benefits are free to members
How You Can Make a Bigger Impact In addition to attending local regional and national IMA meetings consider inviting a small group of students to each chapter meeting This could be a wonderful (and relatively low-cost) option for mentoring aspiring accountants and finance professionals providing networking opportunities and introducing students to cutting-edge issues regarding the practice of management accounting Joining a university accounting
advisory group may be another way to influence the development of EPM in that institutionrsquos curriculum design
Other methods to enhance EPM in your organisation include (1) forming user groups within your company your local IMA chapter or your industry to review and share EPM experiences (2) encouraging advancement in the firm to be linked to EPM proficiency (3) focusing your companyrsquos recruiting efforts on candidates who display a background in andor understanding of EPM and (4) organising cross training within your company to enhance a mutual understanding of each otherrsquos respective roles
Finally visit the Competency CrisisTM website (http competencycrisisorg) set up by IMA to unite the accounting and finance constituencies professionals students employers academics and professorsmdashand explore competency issues through the lens of each stakeholder group The site is designed to ldquoencourage a discourse spur action and create a community dedicated to resolving the serious crisis of competency present in the professionrdquo Special sections of the website are devoted to educators students and employers professionals
Our Partners in Education Much like a practice partner an academic partner should be or become a CMA maintain professional accreditation by completing CPE hours and regularly read IMArsquos publications
Academic members of IMA can pursue and actively promote the CMA programme at their respective institutions
50 wwwthecfomecom
IMArsquos website contains helpful resources including an exam content overview content specification outlines for each of the two parts of the CMA exam and learning outcome statements The current exam covers some of the professional competencies represented in Figure 1 A summary of changes to exam content which will be effective in January 2015 is provided on the IMA website in News amp Media Relations which is located under ldquoAbout IMArdquo (See the press release dated March 24 2014) Other helpful resources include ldquoICMA Announces CMA Exam Content Changesrdquo in the April 2014 issue of Strategic Finance as well as ldquoManagement Accounting Career Readiness Shaping YOUR Curriculumrdquo
These forthcoming changes are based on the most recent IMA study of the knowledge and skills needed by management accountants from the view of CFOs controllers and other accountingfinance professionals from around the world
Also consider taking a group of your students to the IMA Student Leadership Conference held each November The Conference provides excellent networking opportunities for you your students and practicing professionals Students can learn firsthand from Conference presenters the challenges and opportunities facing finance and accounting professionals today
Moreover if your institution doesnrsquot currently have an IMA Student Chapter consider forming one One of the authors of this article David Stout reinstituted the student chapter at his school (Youngstown State University) after travelling with a group of his students to the IMA
Student Leadership Conference in Cleveland Ohio Through an IMA Student Chapter on campus students are able to work closely with a sponsoring local IMA chapter and bring to campus speakers who are experts in a wide range of topics including those discussed earlier in this article Each year student chapters compete for an Award of Excellence (AOE) and recognition as an Outstanding Student Chapter In addition IMA student members are able to engage in networking activities leadership training mentoring and community service programmesmdashall through their local chapter
You also might consider volunteering to serve as a Campus Advocate In this role yoursquoll represent IMA in all major matters of interest to your students (scholarship opportunities starting a student chapter mentoring and the like) and to your institution (for example leveraging IMA resources to advance the relevancy of the accounting curriculum use of educational case studies published in the IMA Educational Case Journal and access to IMArsquos ethics curriculum)
And if you havenrsquot yet done this ask IMA to endorse your accounting programme (information is available at www imanetorgeducator_resources indexaspx) This programme is designed to identify business curricula that meet the quality educational standards required to prepare students to earn the CMA designation Endorsement is based on an analysis of the curriculum and topics covered on the two-part CMA exam Currently 12 programmes have been endorsed
Finally if your school has an IMA Student Chapter consider participating in the annual IMA Student Case Competition where students are asked to propose a solution to a real world problem (Cases are solicited each year by Raef Lawson IMA VP of Research and Policy and IMA Professor in-Residence) Finalists make their presentations at IMArsquos Annual Conference amp Exposition before a set of judges consisting of accounting faculty members and practitioners Each year a new case is published in the August issue of Strategic Finance for students to use for that yearrsquos competition
Working TogetherIn this article we have summarised the changes that have affected the accounting profession and provided a competencies-based framework for guiding accounting educators in responding productively to those changes As a management accountant you know that implementing change in any organisation let alone within an entire profession never comes easily To be successful in overcoming our professionrsquos competency crisis IMArsquos practice and academic partners will need to assume leadership roles in defining enterprise performance management as the cornerstone of the accounting professionrsquos value proposition
This article was orginally published in the August 2014 issue of Strategic Finance It appears here with the permission of The Association of Accountants and financial professionals in Business
We need to educate ourselvesand future generations of account-ants so that as a collec-tive group we can deliver theexpanding set of com-petenciesdemanded in todayrsquos dynamicorgani-sational contexts
THE POWERFUL AND THRIFTY OFFICE ALL-ROUNDERS
The new ECOSYS M3560idn series will astound you With their print speeds of up to 60 pages per minute they are among the most productive A4 bw multifunctionals on the market We nevertheless managed to keep their ecological footprint and total cost of ownership impressively low by using our well-known ECOSYS technology and equipping the devices with our renowned long-life components The result Not only less waste and lower maintenance costs but also less hassle for you and all your colleagues You will also greatly appreciate the many customisation possibilities of the devices equipped with KYOCERArsquos open solution platform HyPAStrade as it allows you to tailor the device to your needs So yes we are proud of our new range of MFPs and can hardly wait to share their numerous benefits with you
For more information please contactKYOCERA Document Solutions Middle East | PB Box 500817 DubaiUAE | Tel +9714 4330 412 | Fax +9714 4231 944KYOCERA Document Solutions Europe BV - wwwkyoceradocumentsolutionseuKYOCERA Document Solutions Inc - wwwkyoceradocumentsolutionscom
52
ACCAINTERVIEW
wwwthecfomecom
GLOBAL By ASSOCIATION
across the region from our key employers and learning provider partners to our active and growing student and member base I want to understand their challenges and priorities and how ACCA can work with them to help support the economic success of the region
What can a CFO gain from working with ACCAThe ACCA qualification is about complete finance professionals For CFOs it brings the technical knowledge vital to business success complemented with the strategic management skills and ethical competence crucial to an organisationrsquos success As an organization ACCA in the UAE brings CFOs access to that local and global network of peers and expertise along with our leading research and insights that help them to keep up to date on the issues that matter most
Are there any initiatives in place to leverage the recently announced partnership with AAA
How are the ACCArsquos many years of activity being applied to the Middle EastACCA has now had a presence in the UAE for well over a decade During that time we have established strong relationships across the Middle East epitomised by the recent signing of our Strategic Partnership with AAA As a national body in choosing to partner with ACCA they recognised the local and global perspective we bring We are continuing to work with students members and employers across the Middle East to build their networks knowledge and business success through events research and insights and access to a growing number of online resources
Which initial priorities are among your key aims upon joining the organisationrsquos efforts in the UAEIn the first few months I hope to build on the success of the team in the UAE My priority will be to meet as many of our key stakeholders
The Association for Chartered Certified Accountants (ACCA) provides its services across a number of international borders The recent announcement of Lindsay Degouve de Nuncques as the new head of the Associationrsquos UAE chapter further exemplifies the ACCArsquos reach based on her previous work in the UK Nuncques shares here what she brings to the Middle East and just how globalisation has driven her ascent
53
ACCAINTERVIEW
wwwthecfomecom
The strategic partnership with AAA is the first of its kind in the region Students who complete the UAECA qualification will be entitled to both the AAA and ACCA designations and ACCA members in the UAE will also be eligible to apply for AAA membership This is a very exciting development in the market and together AAA and ACCA will be working to deliver maximum value to all our stakeholders from this partnership As we launch the UAECA qualification this activity will start in earnest
Which key industries will you be spotlighting in the Middle East in the months aheadOur experience of working across all sectors and levels of organisations globally gives ACCA a unique insight into all types of industries We will continue to be working with employers across the spectrum in the months ahead to help them gain the insight and make the connections that drive businesses to succeed at whatever they do
ldquoThe ACCA qualification is about complete finance professionals For CFOs it brings the technical knowledge vital to business success complemented with the strategic management skillsrdquo
54
Islamic FinanceMARKET OUTLOOK
wwwthecfomecom
In its 10th instalment the Forum is hosted in Dubai as a direct result of the UAErsquos increasing importance in the world of global Islamic finance
THE WORLD ISLAmIC ECONOmIC FORUm LANDS IN DUBAI
In Dubairsquos continued quest for leading the world across a range of spectrums the Emirate accelerated its desire to become the worldrsquos leading hub for Islamic finance by hosting the 10th installment of the World Islamic Economic Forum (WIEF) Delegates from dozens of countries attended to take part in a three-day event held at Madinat Jumeirah which rests alongside Dubairsquos gleaming coastline Held under the patronage of His Highness Sheikh Mohammed Bin Rashid Al Maktoum the
Vice President and Prime Minister of the UAE and Ruler of Dubai key speakers included The Honorary Dr Zeti Akhtar Aziz Governor of the Central Bank of Malaysia HE Kairat Kelimbetov Governor of the National Bank of Kazakhstan The Honorary Datorsquo Sri Mohd Najib Tun Abdul Razal Prime Minister of Malaysia and HE Xavier Bettel Prime Minister of the Grand Duchy of Luxembourg
Launched in 2006 in Malaysia WIEF has grown in tandem with the increased
Delegates from dozens of countries attended WIEF to take part in the three-day event
sophistication and reach of Islamic finance After a successful event in London in 2013 amidst increased interest in Islamic finance across Europe WIEF relocated to Dubai where the local business structure is keen to host halal finance
Said Hamad Buamim President and CEO Dubai Chamber of Commerce and Industry co-organisers of the event ldquo[The forum] is the start of a new chapter of cooperation between Dubai and the world as part of
55
Islamic FinanceMARKET OUTLOOK
wwwthecfomecom
Dubai Capital of Islamic Economy visionhellipestablishing a unified regulatory authority to provide the framework for standards across halal industries will significantly accelerate growth Likewise we need to see increased cooperation and partnership between the public and private sectors This is already happening with great success here in Dubairdquo
The order of global cooperation needed to facilitate growth across the Islamic finance world was more than apparent at WIEF based on how many differing nations were represented at the event The exhibitorrsquos hall was populated with a number of key Malaysian stands representative of the Southeast Asianrsquos ranking as the global leader in Islamic finance Also present were companies from Saudi Arabia also a key locality in the worldrsquos halal industries An interesting yet prescient presence was of attendees from South Korea a nation which is eager to participate in Islamic finance and will be hosting the WIEF Pyeongchang Roundtable in December 2014
ldquoGangwon is a province located in Korea which is very interested in new business opportunities Wersquove realised the strength of the Islamic economy and have come here with many different companies The first type is based in real estate investment We also have companies which want to export their products to the Islamic economy based on their halal qualities And Gangwon will also be hosting the Winter
ldquoKorea is very interested in the strength of the Islamic economy and wants to export its products based on their halal qualitiesrdquo
56 wwwthecfomecom
$247trillionProjected value of halal products industry in lsquo18
125Muslim percentage of global tourism expenditure
STAT FACTSOlympics in 2018 and are presently seeking investments for this as wellrdquo said Seong-hun Kim a member of Gangwon Province Governmentrsquos Export Support Team
Dubai proved to be an excellent place for the event considering how well the UAE is able to so regularly corral international cooperation A key sign of this was witnessed recently when Luxembourg now considered the third most important base for Islamic finance globally opened a finance office in Dubai International Finance Centre The European nation also opened a euro200 sukuk earlier this year which was quickly oversubscribed
The prime minister of Luxembourg offered the WIEF audience a riveting speech which detailed just how international the Forum has become whilst encouraging more of the world to support the growing influence of Islamic finance
Said Bettel ldquoWe need to innovate more economic partnerships for growth We sometimes need to reengineer relationships but also have to make sure these relationships remain sustainable Growth in one country also brings growth to others as long as this is guided by free market initiatives Free trade and free flow of capital combined with innovation leads to prosperity We have all gathered here in Dubai to explore the future of Islamic finance and Luxembourg is also a pioneer of Islamic finance in Europe The Islamic financial sector has a major role to play in continued global growthrdquo
The Islamic Corporation for the Development of the Private Sector (ICD) is based in the Kingdom of Saudi Arabia where it manages an international fund worth $2 billion half of which is available for subscription With shareholders in more than 50 countries and a sovereign sukuk fund recently launched in West Africa the ICDrsquos CEO Khaled M Al Aboodi attended WIEF this year excited to participate in the global event
How does the ICD approach its attendance at the World Islamic Economic ForumI think the Forum is one of the best places for discussing the financial issues of the OEC member countries It has been around for ten years and has grown to become a very important platform for discussion Wersquore here to attend and listen but also to network Itrsquos a great networking platform and a place to share views whilst letting everyone know what we have to offer
How has Islamic finance changed over the yearsOf course itrsquos growing in a large scale Some of it actually needs more support particularly with respect to regulatory frameworks Wersquore trying to partner with many international organisations like the IMF to try to provide support to countries to adapt regulation for Islamic finance Sukuk issuance is one of the biggest issues that needs to be addressed because there is a huge amount of liquidity in this arena Due to issues related to regulation sukuk issuance can be costly But with the regulation we are confident it will be on a level playing field with other forms of finance Compliance is a major area where more work can be done The Forum started with a roundtable on sukuk which shows how helpful WIEF has been over the years
What type of work does ICD do internationallyICD helped the government of Senegal to issue the first sovereign sukuk This was successfully issued last summer Progressing in this manner is something wersquod like to see continue across West Africa in order to utilise its resources with aiding development in the region in mind
QampA WITH KHALED M AL ABOODI CEO OF ICD
Islamic FinanceMARKET OUTLOOK
OFFICIAL SPONSORS
ENDORSED BY OFFICIAL HOST OFFICIAL
COMMUNICATIONS PARTNER
MEYDAN HOTEL DUBAI UAE19 - 20 NOVEMBER 2014
WOMENOMICSthe next emerging market
TAKE PART in making change happen UNITE with business and through leaders from across the globe
PARTICIPATE to the expansion of a modern and inclusive economy
58
Gautam PradhanINTERVIEW
wwwthecfomecom
SUCCESS BEyOND BOUNDARIES
in other management roles such as strategic decision making mentoring and leading efficiency and productivity across a range of other departments and functions as well as a being a catalyst in ensuring that the boardrsquos vision for the organisation is achieved
A significant percentage of NMDCrsquos shares are owned publicly Does the CFO play a role in balancing the interests of the shareholdersAs a CFO balancing the shareholdersrsquo interests is definitely part of my responsibility In order to achieve this goal there needs to be a careful evaluation of each decision while keeping the short-term and long-term goals of the company in mind At NMDC we actively implement a system where we utilise a balance scorecard as a method of ensuring that all our primary objectives are met yet at the same time continuously enhance our relationships with our shareholders
NMDC has completed various projects across the Emirates Are there plans to move abroadAs NMDC moves towards becoming an international player our strategic expansion plans are focused in areas within the GCC region and India In line with this strategy we opened
How has a company with such a unique set of deliverables grown so consistently over the yearsOur organisation strongly believes that the core to our strength is the people process and equipment A strategic decision led by our Board of Directors and the senior management has been implemented that required us to consistently invest in these three aspects to help expand our business beyond the territorial boundaries of the UAE and at the same time enhance what we can offer which is relevant to these segments We attribute our success to the efforts which every employee contributes We also strongly believe in the ldquoWe can make it happenrdquo principle The management raises the index of performance while setting SMART objectives within the organisation and encouraging the employees to achieve them
How has your position as the CFO changed over NMDCrsquos 35 years of operationAs the market evolves and business dynamics change my role as the CFO has become complex and more challenging A few years back I was mainly focused on bookkeeping accounting and other financial responsibilities such as arranging bank facilities But moving forward I became more involved
The UAE is progressively becoming a hub for world-class infrastructure The country has duly impressed the rest of the globe with noteworthy land developments showcased across the emirates Among the remarkable landscapes found in Abu Dhabi are the Corniche Beach Yas Island and Sir Baniyas Island Behind these successful projects is NMDC the dredging division of Abu Dhabi National Oil Company (ADNOC)
In an interview with CFO Magazine Gautam Pradhan Chief Financial Officer NMDC shares an exclusive look into the companyrsquos international blueprint for growth and his dynamic role as a strategic leader of one of the best in dredging and marine construction in the Middle East
59
Gautam PradhanINTERVIEW
wwwthecfomecom
branches in Qatar Bahrain Oman and India This has paid rich dividends recently as projects of strategic importance are bagged in Qatar and Bahrain Furthermore NMDC (UAE) has recently played a key role as a leader of an international consortium with Royal Boskalis Westminister (Netherlands) and Jan De Nul Group (Belgium) for the awarding of the Suez Canal Dredging project in Egypt Moving forward we have devised a strategic approach that will enable us to play a key role in the development of Indiarsquos marine infrastructure
What are the global strategies that are part of the CFOrsquos responsibilitiesAs CFO understanding the macro economic scenario risk analysis and mitigating those risks are all a part of my responsibilities I also have to have a proper comprehension
ldquoA few years back I was mainly focused on financial responsibilities moving forward I became more involved in strategic decision making mentoring and leading productivityrdquo
Gautam PradhanINTERVIEW
60 wwwthecfomecom
of the challenges faced by the company in terms of dealing with foreign contracts direct and indirect taxes and hedging and managing the integration process These are essential to enhance shareholders wealth and mitigate undue risk
How significant is accountancy for NMDC in its operations Why exactlyAccountancy is the lifeline of any company it does not only record the finances it also reflects the health of the organisation The MIS reports analysis trends and statistical information go a long way toward effectively providing
the diagnostic approach essential for the company
How have NMDCrsquos environmental activities helped the companyrsquos bottom lineNMDCrsquos work is well-synchronised with our environmental activities and specifically with nature Our activities are closely linked to sand and water and we view such activities with strategic importance Projects such as increasing water supply to mangroves and beach nourishment help us support the environmental activities while adding to our bottom line
ldquoAccountancy is the lifeline of any company it does not only record the finances it also reflects the health of the organisationrdquo
A burgeoning slice of Abu Dhabi coastline
The largest business awards
in the GCC30th November Dubai
nominate now at wwwstarsofbusinessawardscom
Stars of Business has become an iconic awards brand like no other in the region It recognizes the very best SMEs across 26 business categories Itrsquos universally respected as scientifically assessed and unimpeachably judged
327000 SMEs across the UAE$234 billion estimated total revenue of the SME sector4974 Awards entries in 20131856 Individual company applicants
Presenting Partner Strategic SME Partner Gold Sponsor Gold Sponsor VIP Hospitality Partner Supporting Partner
Trade Facilitator PartnerTrade Credit PartnerLogistics Partner
Institutional Partner Institutional Partner Event Partner
OrganiserPublisherMedia Partner Media PartnerPort Authority Partner
62
David Allen INTERVIEW
wwwthecfomecom
What went into completing your bestseller ndash Getting Things Done (GTD)After twenty years of researching developing and implementing a methodology for achieving stress-free productivity based upon
thousands of hours spent desk-side with
some of the best brightest and busiest people in the world I decided to write the manual for it Thatrsquos what Getting Things Done is
What are the five phases of mastering workflowIn order to get
any situation under control so
you can focus you will utilise these five
steps Whether yoursquore managing your kitchen
or your company you will need to collect and capture what has your attention clarify what if anything to do about it organise it according to what it means to you review and reflect upon it in relation to
Todayrsquos evolving CFO is often caught between the world of business set-up generating revenue managing employees and building strong company infrastructure When can things actually get done What can one do to boost productivity and master workflow World-renowned business coach David Allen has the answers
PRODUCTIvITy PRINCIPLES WITH
DAvID ALLEN
63
David Allen INTERVIEW
wwwthecfomecom
those are greatly subvertedHow does one maintain a fair balance between the time spent planning and actually getting things doneYou simply need to spend just the amount of time you need to to trust that what you are getting done is the right thing to be getting done in the moment It takes as long as it takes to get to that point Why would you do anything less
How can one apply your core productivity and workflow principles to todayrsquos technologically driven environmentThe principles and their techniques are system-independent Whether you have meaningful input from the Internet your smartphone or a conversation in the hall you must engage with it equally Technology has simply increased the flow of input and ease of distraction in your world
There is a lot of talk about how connected wersquove become and how connectivity is driving tremendous business growth Does connectivity actually come with its fair share of downsides
Connectivity is obviously a two-edged sword We can have intimate productive and creative interaction instantly with someone on the other side of the world and we can just as easily be distracted and seduced into those engagements when they may not be the best use of our attention and resources Donrsquot shoot the medium Itrsquos all simply bringing attention to your clarity of direction and priorities or lack thereof
Could you share a few quick tips with our readers to instantly boost productivityWrite everything down that has your attention Decide the very next actions required to get closure on all of them Any next actions that require less than two minutes do instantly Park reminders of everything else somewhere that yoursquoll see when you can do something about them
We are currently facing a massive information overload What are some basic principles you could suggest to mentally organise such large amounts of dataConstantly ask yourself Where am I going Whatrsquos important and rewarding to me Is this information
the whole and then engage your resources with intuitive trust
As a CFO how can you transfer efficient workflow management skills to your employees Itrsquos very difficult to legislate processes for individuals ndash you can really only hold them accountable for their results But if you are managing your own commitments and intersections with them with integrity and rigour it will automatically force your team to ldquostep up to the platerdquo in their own behaviours in order to meet your standards If you request their complete list of their company projects and they canrsquot produce it thatrsquos a sign theyrsquore not in control If they make a commitment to you that they havenrsquot kept thatrsquos data about their performance GTD is simply about good operational business practices
With so many planning and organising activities in your methodology is there a risk of losing spontaneity as a strategistThe reason for these best practices is to optimise freedom creativity and spontaneity Without them
ldquoBut if you are manag-ing your own com-mitments and intersec-tions with them with integrity and rigour it will automatical-ly force them to ldquostep up to the platerdquo in their own behaviours in order to meet your standardsrdquo
64 wwwthecfomecom
supporting that Park whatever you find potentially meaningful somewhere that is easy to access when needed
Being an entrepreneur is a non-stop job How do you ensure that you have an adequate work-life balance Pay attention to what has your attentionmdashwith regard to anything Your health relationships career finances etc Notice when something might be ldquooffrdquo and make good decisions about what you need to do to get it back ldquoonrdquo again
Does your work teach people to be efficient or effective In essence they are the same thing Effective choices are generated by efficiency on a higher level If you want to implement strategy most effectively it demands utilising your resources optimally which is efficiency
Does motivation actually improve quality of work or purely quantityDepends on the focus of the motivation You can be motivated to work harder and you can be motivated to work smarter
What is your favourite productivity mantra that
you implement in your day-to-day lifeUsing my own in-basket and note-taking devices to capture potentially meaningful and valuable ideas and soon afterwards clearing all of them out by deciding what to do about them if anything
Your books seminars and other work inspires many individuals and businesses Who is your personal inspiration or role model I have many about many different aspects of my life The only person though that I ultimately trust as my best guide is my higher self which I try to access as frequently and clearly as I can
Finally what advice would you give to current business owners and aspiring entrepreneurs looking to gain complete control of their life and businessCapture what has your attention clarify what you need to do about it to get it off your mind organise the inventory of all your commitments at all levels review and reflect on all of that regularly relax and trust your inner wisdom to engage with the most appropriate thing in the moment
ldquoIf you want to implement strategy most effectively it demands utilising your resources optimallyrdquo
David Allen INTERVIEW
APPSTECH TALK
wwwthecfomecom 65
mAxImISE BUSINESS lsquoON-THE-GOrsquo WITH THESE HANDy APPS
ipAd SpECIAL
SAMSUNG UNvEILS GALAxY NOTE EDGE
Network
AP
Display
OS
Camera
Video
Audio
Additional Features
GoogleMobile Services
Connectivity
Sensor
Memory
Dimension
Battery
The availability of service may differ by country All functionality features specifications and other product information provided in this document including but not limited to the benefits design pricing components performance availability and capabilities of the product are subject to change without notice or obligation
Samsung Galaxy Note Edge Product Specifications
25G (GSM GPRS EDGE) 850 900 1800 1900 MHz3G (HSPA + 42Mbps) 850 900 1900 2100 MHz4G (LTE Cat 4 15050Mbps) or 4G(LTE Cat 6 30050Mbps)May differ by country and carrier
27 GHz Quad-Core Processor
56 inch (1419mm) Quad HD+ Super AMOLED (2560 x 1440 + 160)
Android 44 (KitKat)
Rear Facing 16 Mega pixel Auto Focus camera with Smart OISFront Facing 37 Mega pixel camera with f19Rear Facing Camera HDR (Rich tone) Selective Focus Rear-cam Selfie Beauty face Virtual Tour Shot ShotampMore Dual CameraFront Facing Camera Selfie Wide Selfie
Codec H264 MPEG-4 H263 VC-1 WMV7 WMV8 Sorenson Spark MP43 VP8 Recording amp Playback up to UHD
Codec MP3 AACAAC+eAAC+ WMA AMR-NBWB Vorbis FLAC()() Ultra High Quality Audio (~192KHz 24 bit) support
Multi WindowUltra Power Saving ModeVoice Recorder (Normal Mode Interview Mode Meeting Mode Voice Memo)Download BoosterS Health 35Dynamic Lock ScreenBriefingEdge screen UX Revolving Interaction Immersive apps(Camera Video S Note)Ticker board Express me Quick Tools Night Clock etc
Chrome Drive Photos Gmail Google Google+ Google Settings Hangouts Maps Play Books Play Games Play Newsstand Play Movie amp TV Play Music Play Store Voice Search YouTube
WiFi 80211 abgnac (HT80) MIMO PCIeGPS GLONASS BeidouNFC Bluetoothreg v 41 (BLE ANT+)IR LED (Remote Control) USB20 MHL 30
Gesture Accelerometer Geo-magnetic Gyroscope RGB IR-LEDProximity Barometer Hall Sensor Finger Scanner UV Heart Rate Monitoring SpO2 (Dependent on market)
32 64 GB Internal memory + microSD slot (up to 128GB)3GB RAM
1513 x 824 x 83mm 174g
Standard battery Li-ion 3000 mAh Fast Charging (Adaptive Fast Charging amp QC20)
wwwthecfomecom66
APPSTECH TALK
AIR DISPLAY
SQUARE REGISTER
Using this app you can connect your iPad to your computer and use it as an additional screen While working on an important presentation or sales proposal you can extend or mirror your computer screen on your iPad This app is compatible with both Mac and Windows computers Note that to use this feature you have to install Air Display on your iPad and a separate free app on your computer The computer and iPad also need to be on the same Wi-Fi network in order to work in-sync
For Mac users the app allows you to connect to up to four screens ndash all at the same time
Apart from the ability to convert your iPad into a wireless display whatrsquos also attractive about this app is that it allows you to control your computer wirelessly using your iPad
This fantastic application can serve as a mobile point of sale for your business It allows you to accept credit card payments ndash including Visa MasterCard Discover and American Express A transaction fee of 275 is charged for every time you swipe a card The sale amount is transferred to your account within two working days
Once you download the app you can sign up and register for a unique card reader solution called the lsquoSquare Readerrsquo (this is free) Square Reader encrypts all card details and ensures that the transaction is secure Once you receive your Square Reader you can connect it to your device and are all set
The application also offers added features such as transaction history connecting to a receipt printer creating employee logins and more
AED 3699
PRICE
Free
PRICE
wwwthecfomecom 67
APPSTECH TALK
DOCUSIGNHave you ever been in a situation where your employees need you to urgently sign a contract but arenrsquot able to physically reach you in time DocuSign solves this problem with its easy-to-use eSignature feature In three easy steps you can sign important documents and securely send them to your intended recipient
First you have to import the document to your device ndash this could be from Dropbox Google Drive or another select applications You then place your signature or any other important legal information you need to include such as initials Once you have finished working on the document send it back via e-mail
Whatrsquos particularly great about DocuSign is the great emphasis it puts on security ndash so that users donrsquot have to worry about getting into any legal trouble
Use DocuSign and never miss a deadline again
Free for basic version
PRICE
MPAYAn initiative by the Dubai eGovernment Department mPay is a simple application that allows you to make important payments Once yoursquove signed up and entered your payment details you are good to go You can pay your Dubai Electricity and Water Authority (DEWA) bills Etisalat utility bills Dubai Police fines Recharge SALIK and much more
A handy feature is its lsquoauto-rechargersquo option which you can use to set automatic payments
Free
PRICE
Opinion CIMAPERSONALITIES
wwwthecfomecom68
NEW HORIZONSBy geetu Ahuja Head of gCC at CIMA
The days of the traditional accountant working within a small community in a small town in a small market have long gone CFOs are now being referred to as Chief Frontier Officers as they travel from market to market overseeing their offices overseas This new expanded role has distinct advantages for both the company and the CFO who gain new skills and new insights from foreign branches a single hand at the helm of many markets provides business perspectives on a global scale and benchmarks across the board
On a personal level working abroad also has huge importance Robert Walters the specialist professional recruitment consultancy recently conducted a survey
of almost 2200 employees across a variety of professions exploring a number of topics which ranged from working practices and attitudes to careers The results highlighted some notable trends particularly for finance professionals
In career progression for example the survey showed that 50 of all accountants see working abroad as either lsquoessentialrsquo or lsquoextremely usefulrsquo to furthering their prospects more than banking professionals lawyers and IT workers ndash a strong indication of how accounting professionals are thinking about their future either within their existing company or with opportunities elsewhere
Accountants with globally recognised qualifications obviously have a greater chance of gaining some experience abroad and the lsquoGen Yrsquo professionals in particular seem ready to pack their bags In a CIMA study conducted in the UK last year over a third of those seeking employment in the
next two years will prioritise opportunities abroad over those in their home countries many of them enticed by the career incentives offered by the Middle East
How quickly can they land what seems to be their dream job What are the realities It may be that the move is simply from one branch to another and the only significant difference is a view from the window but for those expanding rather than changing their roles we have seen a very real need for a depth and breadth of knowledge never needed before
As geographical boundaries are pushed ever-wider a CFOrsquos responsibilities are pushed with them For many finance executives the understanding of their own patch of land is no longer enough they now have to be aware of foreign markets up to speed with foreign trends and au fait with foreign laws There is a need for a new commercial awareness in geography as well as philosophy
As geographical boundaries are pushed ever-wider a CFOrsquos responsibilities are pushed with them
John vargheseQampA
wwwthecfomecom 69
BUSINESSSET UP YOUR
IN THE UNITED ARAB EMIRATES
TO
WAREHOUSESOFFICES INDUSTRIAL LANDFLEXI
Quick and easy company set-up
Less than an hour drive from Dubai
Complete cost-effective packages including licences and facilities
100 foreign ownership
Zero income and corporate taxes
Eligibility for UAE Residence Visa
BUSINESS SET-UP SOLUTIONS STARTING FROM AED 15000 (USD 4000)
RAK FREE TRADE ZONE PROVIDES
RAK Free Trade Zone Authority - Government of Ras Al KhaimahUAE (Ras Al Khaimah) Tel +971 7 2041111 (Dubai) Tel +971 4 7041875 (Abu Dhabi) Tel +971 2 6994888
Germany (Cologne) - Turkey (Istanbul) - India (Mumbai)
Call +971 7 204 1111 Visit wwwrakftzcom Join rakftz
IndiaCOUNTRy FOCUS
wwwthecfomecom14
SUBCONTINENTAL SURGE
By Arvind Chari
Last year was undoubtedly a turbulent time for emerging markets due to political instability inflation and the fledgling recovery in the West all causing significant headwinds Unsurprisingly this has led some commentators to be sceptical about the prospects for these markets including India But the Indian economy is showing signs that it will weather the challenges of the next few years This may not be an easy task given the
manner the Indian rupee plunged in response to the US Federal Reserversquos decision to taper asset purchasing Nevertheless India does have the political will to make the necessary reforms to deliver on its potential
While the Fedrsquos decision has caused some fallout in emerging markets commentators expect that this will tail off over time Meanwhile Indiarsquos economy is driven by domestic demand which means that
India does have the political will to make the necessary reforms to deliver on its potential
With an eye towards the nationrsquos key partnership with the Middle East the following India country report shares economic prospects accounting for last yearrsquos instability ndash defining what investors can gain moving forward
IndiaCOUNTRy FOCUS
wwwthecfomecom 15
$791bTotal trade between India and the UAE in lsquo13
64Expected growth of Indiarsquos economy in lsquo15
Indiarsquos debt market needs to attract stable investors over lsquobond touristsrsquo short term foreign flows evident in Indiarsquos bond markets
it is better placed than most to deal with the world post-quantitative easing Without the so-called lsquotaper tantrumrsquo investors in India might have focused more on the positives in 2013 But given the overall improvements in the economy and the political outlook we feel the India narrative will be harder to ignore in Q4
One of the most significant changes has been the appointment of Dr Raghuram Rajan as governor of the Reserve Bank of India (RBI)
last year He is clearly part of a dying breed of central banker that is one who actually knows how the world works He will make mistakes but the most important thing is that he will be trying to move India in the right direction as shown by his decision to continue with a hike in interest rates at the end of January Bond and currency markets have reacted very well to this move which shows the bank is now ahead of the curve in fighting inflation In October Rajan remarked that
Indiarsquos debt market needed to attract stable investors over lsquobond touristsrsquo a reference to the short-term foreign flows that have been evident in Indiarsquos bond markets His stance is an indication that policies could be shifted to attract more long-term stable money into Indiarsquos government bond markets away from a focus on the foreign-bank lsquoproprietaryrsquo investments that dominate flows currently
Indiarsquos current account deficit (CAD) was set to halve
STAT FACTS
IndiaCOUNTRy FOCUS
wwwthecfomecom16 wwwthecfomecom16
in the year ending March 2014 It was due to fall to 25 from 48 of GDP in 2013 The fall in gold imports alongside currency depreciation was a major contributing factor to this reduction Indiarsquos exports became more competitively priced over Q1 2014 which has led to higher exports in textiles chemicals and leather goods while the drop in the value of the rupee has also led to a fall in non-oilgold imports We expect the CAD to increase to around 3 of GDP for this financial year as gold import restrictions are removed a shift that should still be easily fundable Additionally the RBIrsquos FX reserves have increased by $34bn through the bank and non-resident Indian deposit swaps which was a much higher figure than anticipated This gives the RBI the additional firepower to intervene in the markets if it is necessary to counteract currency volatility In fact the
rupee has been remarkably stable since October and has steadily outperformed its other lsquofragilersquo emerging-market peers
There has also been an improvement in how other countries perceive India Net foreign direct investment is stable despite some negative sentiment driven by the outflows from the bond markets and banks Vodafone described by Rajan as lsquothe poster child for companies with difficulties in Indiarsquo is investing more in spectrum and also buying out minority operators In addition significant Japanese investment into Indiarsquos infrastructure is a further boost to the country and this relationship will be one to watch over the coming years
Overall the world has a much better impression of India than it did a few years ago when the country was facing significant obstacles In 2010 increasing inflation expanding fiscal deficits and an escalating CAD ndash all coupled with slowing growth rates ndash put India in a very difficult position But in 2012 the government realised that the current situation could not continue and since then there has been a much greater focus on reform
A mixture of poor growth and bad policies dramatically hampered Indiarsquos progress earlier this century frustrating many investors But the country is now beginning to drive a wedge between itself and the other more troubled emerging-market economies We feel
162KIndian tourists in Abu Dhabi yTD
Significant Japanese investment into Indiarsquos infrastructure is a further boost to the country and this relationship will be one to watch over the coming years
STAT FACTS
IndiaCOUNTRy FOCUS
wwwthecfomecomwwwthecfomecom 17
Population size 12 billion
Area 3287263km2
Type of government Federal republic
Official language Hindi
Capital city New Delhi
Largest city New Delhi
GDP (2012) $1825 trillion
Central government debt as a proportion of GDP 67
Currency Indian rupee
Conversion rate against the euro 0013
COUNTRy FILE
Hire a local manager or partner who has a very good
understanding of local rules and regulations
Have a longer-term investment horizon because the Indian rupee will remain
volatile for a while
donrsquot view volatility as a risk view the
integrity of the government and
management as a risk
Travel to India and feel the lsquomicrorsquo India
story rather than just read about the lsquomacrorsquo India story
Be patient and have realistic
expectations ndash things take time to work out in India
TOP TIPS FOR DOING BUSINESS IN INDIA
that these differences will mean that India significantly outperforms those economies over the coming years And while we might still be facing some turbulent times for India at least the dark clouds are beginning to break
As with any emerging-market economy the next few years will present challenges alongside opportunities and investors will have to
be comfortable with this state of affairs But India is committed to making the reforms it needs to improve its future The country has much better potential for growth than any developed country and it is also in a far better position than many of its emerging-market peers Now is the time to take advantage of all that India has to offer to investors
INNOvATIONrsquoS BOTTOm LINE Bill Chappell occupies a rare space as the CFO of Dubai Silicon Oasis a free zone dedicated to the development of technology across the emirate In the following interview he shares with CFO Magazine how far along technology has come in the UAE and why the figures are the most important aspect of his role as Chief Financial Officer
18
Cover StoryTECHNOLOGy
wwwthecfomecom
Dubai Silicon Oasis (DSO) occupies a vast 72 million square metre stretch of land in the northern reaches of the UAErsquos most globally recognised emirate Established in 2005 as a government-owned free zone devoted to the development of technology DSO has in the time since welcomed over 1087 companies into a space of which more than 59 of has been developed
Responsible for liaising with DSOrsquos companies both large and small whilst overseeing the free zonersquos balance sheet CFO Bill Chappell mans a unique station as a finance
executive with a keen eye for technological growth
ldquoIrsquove been with Dubai Silicon Oasis for nine years and my role is rather split I am the finance director but Irsquom also responsible
for our initiatives on technology incubation
and investment which is all very interestingrdquo
Chappell said Despite Chappellrsquos
years of experience in the technology industry granting him an imperatively strategic purview as CFO he makes clear what is most important as Chief Financial Officer
ldquoGetting the numbers right must always be the number one thing People talk about strategy and a number of other things but you must focus on the numbersrdquo
Chappell offered ldquoMy background is in technology companies for over ten years previous to coming here so I have a knowledge of technology which I brought to Dubai above all My overlap personally involves understanding technology whilst being a CFOrdquo
When Dubai Silicon Oasis first came into existence the area was undeveloped with no roads customers or residents Today the oasis acts as both a home for industry and residence whilst the Dubai Silicon Oasis Authority operates a number of services unique to companies which operate within the free zone A business incubation centre venture capital funding structure and various forms of entrepreneurial support are among DSOrsquos many aspects available to tenants
Said Chappell ldquoThere are three categories of companies at DSO There are smaller companies which deal more largely with our entrepreneur and incubator ecosystem The other extreme involves global firms such as Fujitsu or SAP and we look at their needs and make sure theyrsquore satisfied as customers They want our help to get setup And then there is the middle group and I meet them if they need my help as CFOrdquo
DSO counts SAP Porsche Fujitsu and Qordoba among its vast bank of companies
19
Cover StoryTECHNOLOGy
wwwthecfomecom
each of which are granted access to the Chappellrsquos well-honed expertise
ldquoBill has been involved in several meetings to gain updates about the company and offer input on what he thinks we should be focusing on whilst asking questions about our financial processes He also sits with the board on occasionrdquo said Loulou Khazen Baz founder of Nabbesh an online marketplace which connects professionals with work opportunities
ldquoDubai Silicon Oasis has been an important Investor at various stages of Nabbeshrsquos journey and a vital stamp of approval Our company has found priceless value in DSOrsquos support and the approachable nature of an involved CFO like Billrdquo
Chappell faces a number of challenges related to investment due to the region not ranking tech developments as high as traditional platforms such as real estate Additional concerns related to innovation have found themselves increasingly entering the CFOrsquos remit as related to encouraging ideas specific to the region Chappell is confident however that certain companies based in DSO are addressing these issues
ldquoIn this region one of my biggest challenges is getting people to understand
ldquoPeople talk about strategybut getting the numbers right must always be the number one thingrdquo
20 wwwthecfomecom
the complexities of tech Technology is a good investment class but the region is focused very much on real estate whilst the investment class of technology doesnrsquot rank as highrdquo said Chappell ldquoIn order to widen the general understanding we want to be developing solutions which address problems specific to the region We have one or two gems for example Qordoba a translation company which translates content in multiple languages The programme utilises artificial intelligence and as a result is getting smarter and smarter each time it is asked to translate so that it understands the meaning of what itrsquos translatingrdquo
Another key variable for DSO is centred on supporting
Dubairsquos goals based around becoming the worldrsquos capital for Islamic finance Chappell describes his role as CFO as one with ldquotwo thousand handsrdquo a multi-layered position which he seems to relish being held responsible for While DSO has grown tremendously in its near decade of existence the free zonersquos exuberant CFO sees lots more to come
Said Chappell ldquoI see us going from strength to strength Wersquove been in existence for nearly ten years When I joined it was empty desert Now we have over 1000 companies and an estimated 43000 living on site Within five years wersquoll also be further down the path and wersquoll be recognised for our contributions to the smart city and the Islamic economyrdquo
ldquoWithin five years wersquoll be further down the path and recognised for our contributions to the smart city and the Islamic economyrdquo
Dubai Silicon Oasis
headquarters
1080Companies in DSO
72millionDSOrsquos land mass in square metres
STAT FACTS
Cover StoryTECHNOLOGy
THE MIDDLE EAST ACCOUNTANCYAND FINANCE EXCELLENCE AWARDSWEDNESDAY 10 DECEMBER 2014AT THE JUMEIRAH BEACH HOTEL DUBAI
ACCOUNTING FOR EXCELLENCE
Once again the very best talent in the world of accountancy and fi nance will be celebrated by ICAEW at a stellar awards ceremony
ICAEW is a professional membership organisation supporting over 142000 chartered accountants around the world And on Wednesday 10 December 2014 at the Jumeirah Beach Hotel in Dubai wersquoll be recognising excellence in ten categories featuring Business Leader of the Year CFO of the Year Corporate Finance Deal of the Year and the Internal Audit Excellence Award
With an impressive line-up of speakers special guests and entertainment it all adds up to a trulymemorable evening
To submit a nomination or for more information visit icaewcommiddleeastawards
Nominations close on 1 October 2014
A WORLD LEADER OF THE ACCOUNTANCY AND FINANCE PROFESSION
400595_ICAEW_MiddleEast2014_Ad_NBAD_DEVERE_207x270_AW_3indd 1 27082014 1541
PROCUREMENTANALyTICS
wwwthecfomecom22
Return on Supply Management Assets (ROSMA) is a pioneering framework launched by AT Kearney after four years of testing one aimed at addressing the aforementioned procurement gaps The performance measurement standard was initiated with an eye on creating a benchmark for the procurement industry and providing a compass to direct investments
ldquoROSMA started in 2010 And it started out with conversations with the CFO There are a group of folks in the company talking about how great their achievements are however
the capital that procurement claims isnrsquot often obvious and can create a disconnect within the companyrdquo said AT Kearney Vice President Federico Mariscotti
This yearrsquos annual report surveyed a number of businesses and arrived at a series of significant findings which outline procurement patternsbull Top-tier companies generate
approximately $16 million in financial return per procurement employee yearly A reported 35 per cent of return derives from applying advanced methods
bull Mid-level performers typically
The first step for compa-nies in the Middle East is to take a good look at what they expect procurement to bring
Leading global management firm AT Kearney recently released a report on the evolving conversation which surrounds procurement A key aspect of the report spells out how much CFOs stand to gain by making more pronounced investments based on utilising procurement in terms of value The relative distance between CFOs and their respective companyrsquos procurement methods is cited as cause for concern
THE NEW LANGUAGE OF PROCUREmENT
generate four to five times of their investment in procurement valuation yet have not exemplified growth since 2011
bull Performers at the lowest level surveyed do not achieve monetary benefits which cover costs
bull The majority of organisations surveyed do not possess the tracking structures needed to analyse procurement performance
bull Regardless of company size or industry procurement
PROCUREMENTANALyTICS
wwwthecfomecom 23
The CFO community has not yet awakened to the value of procurement
performance varies though companies with sophisticated reporting techniques experience less variable performance
The reportrsquos express aim to create a benchmark for procurement follows a wave of process monitoring which found notice in the manufacturing industry in the 1980s supply chain research and engineering in the 1990s and sales and marketing performance being closely tracked in the 2000s
ldquoProcurement costs can represent anything from 20 to 90 of a companyrsquos total cost going from the public sector to consumer goods Yet the productivity of the team that presides over the supply market interactions has a way of explaining their value add using savings that do not add up to the PampL impact measured by finance Savings definitions different baselines and cost avoidance all contribute to a murky aggregate view of the impact on the businessrdquo added Mariscotti
In the Middle East the challenge is fundamental ndash getting the spend data in the first place Companies admit they often do not have a clear categorisation of intelligence lack an agreed definition of savings measurement and generally position procurement as a pre-eminently transactional activity lacking the mandate to contribute value Procurement processes as a result remain centred around purchasing are paper based and lack transparency The first step for companies in the Middle East is to take a good look at what they expect procurement to bring
wwwthecfomecom24
Influencedspend
The inconsequential The brand leaders
Leaning up
Note All three segments start with a common hypothetical spend of 1000 to normalize the case example
Source AT Kearney analysis
Source AT Kearney analysis
TOP QUARTILE
mIDDLE-TIER 50
BOTTOm QUARTILE
704
764
644
522
527
396
42
30
(138) (25)
(63)
19
39
28
15
21
4
3
60
32
18
Sourcedspend
Units of yield
Post-compliance
benefits
Additionalbenefits
Financial results
delivered
19x
17x
middle tier
bottom quartile
TOP-QUARTILE PERFORMERS DELIVER NEARLy TWICE AS MUCH VALUE AS MIDDLE-TIER PLAyERS
THE CFO COMMUNITy HAS NOT yET BEEN ldquoAWAKENEDrdquo TO THE VALUE OF PROCUREMENT
Procurement is not on the radar for those who gave the wrong answers to three essential questions
leadership with accountability for performance is clear but either the measures are not clear or performance is believed to be weak variable or unknown ndash or a mix
leaners and leaders answered all three essential questions correctly and also answered most or all other questions correctly
to the table and how it should support the business To make a steep change companies need to understand the multiple benefits which will occur for investments made once theyrsquove allowed for stronger procurement practices
The benchmarking aspects of ROSMArsquos report speak directly to CFOs based on an existing widespread inability to track and improve this often unquantifiable nature of procurement practices According to the report the CFO community has not yet awakened to the value of procurement and Chief Financial Officers are thus divided into three segments The brand leaders (25) those leaning up (63) the pack (774) and the inconsequential (138)
Said Mariscotti ldquoThis is a way to give procurement a measurable quality that CFOs can quantify You have to know what yoursquore doing with relation to procurement in order to do it well ROSMA gives you a number which helps you understand how good your procurement is working as compared to peers It lets you know whether or not you could be doing something differentrdquo offers Mariscotti
CFOs have exemplified an increasing ability to share in a companyrsquos strategic efforts whilst expand their respective remits Procurement is emerging as the latest segment of this conversation Understanding its value beyond the transactional is the first step for CFOs to fully engage with harnessing the potential of procurement and grow to become a part of the elusively paltry portion of brand leaders indicated in ROSMArsquos report
PROCUREMENTANALyTICS
The pack(774)
Al Sharid is the Vice Chairman of Emirates Transport and has enjoyed a successful career in which the lionrsquos share of his tenure has afforded him a seat at the helm of the business
ldquoI remember when I first received the GM of Tata in the late 80s he said to me lsquoYou are the youngest GM I have ever metrsquo I was 29 years old at the timerdquo Looking at Al Sharidrsquos rapid ascent to the top of his organisation can be mind boggling to the average observer however to those few who strive to push themselves to their limits it is perhaps more common a reality As with any top performer we can often see their desire for results and impact
early on in life and with Saeed the first stride of his race to the top began with an accounting degree in university
It was 1976 and the excitement of the UAErsquos biggest milestone moment its inception just five years earlier still clung to the air from Fujairah to Abu Dhabi and every emirate in between A nation was being built Saeed had just finished high school and went to the United States where he was to study engineering
ldquoI was not yet 18 years old it was 1976 and I was sent to America to study it was the beginning of a dream and a young liferdquo says Al Sharid Unfortunately Al Sharidrsquos academic tour of duty came to
THE EmIRATI DREAm Saeed Al Sharid is today an elder statesman in the world of UAE accountancy With decades of know-how based on chairing a number of key Emirati organisations Al Sharid is today atop his own family firm In the following exclusive interview he shares the importance of education the evolution of a nation and just how being an accountant has driven his many triumphs
an abrupt halt when his father suddenly passed and he was forced to return home ldquoWe are seven brothers and I am the middle one so during tough times we always come together and during this period the strength of my family pulled me through I have three younger brothers and I felt I had to be there for them I felt responsible for them My mother played an omnipotent role in pulling us through this dark moment in our history The death of my father forced us to become more independentrdquo says Al Sharid
Now back in the UAE with his plans of studying abroad dashed Saeed looked at the local schooling system within which Al
26
InterviewPERSONALITIES
wwwthecfomecom
Saeedrsquos desire for results took its first stride with an accounting degree in university
By Shane phillips
27
InterviewPERSONALITIES
wwwthecfomecom
Ain University had just opened ldquoAl Ain University was the pride of the Emirate at the time the students were like celebrities The first batch of graduates were all promised 50000 AED from HRH Sheikh Zayed I was one year late so technically I should not have graduated with the first batch but I was determined I worked an extra course load did summer school and soon caught up to the first class 50000 AED in 1981 was like 5000000 AED today so I was very motivatedrdquo says Al Sharid
Saeed not only caught up with the other students but he wound up graduating atop Al Ain Universityrsquos first class of graduates with a 38 GPA ldquoWe Saeed Al Sharid
28 wwwthecfomecom
to the organisationrdquo he says Saeed first joined Emirates Transport after seeing a small newspaper advertisement for an accountantrsquos position He applied but initially they did not want to hire a local because locals were too expensive After a few months however they called him back for an interview and offered him a job
Initially Saeed struggled to get a promotion or even a raise He worked tirelessly to develop himself and kept detailed notes of his work After nearly two years went by with no promotion he requested to meet with the Chairman of the corporation to discuss his career The Chairman was a Minister making him even more senior than his title implied Al Sharid was courageous and determined ldquoYou should not stay silent you have to take initiative your future is in your handsrdquo says Al Sharid
ldquoI met with the Chairman and told him about my work and what I wanted to do He did not talk he just listened and that was it It was a 15-minute meetingrdquo says Al Sharid Three days after Al Sharidrsquos pivotal appointment he was promoted to Deputy General Manager Directly from a Trainee to DGM skipping all the roles in between at the age of 27 years old They doubled his salary and catapulted him into a senior leadership role
ldquoI felt it was quite strange to move up that fast and personally was not sure I could handle the job I had a lot of resistance from the board I had people in their 50s reporting to me and they were not happy about it So I just took a step back and did not try to get involved in their work too fast I went slow and watched my step This was a very important
ldquoThe UAE was a brand new country and a lot of work was being done to develop the nationrdquo
never had any idea of a career path and there was no such thing as career counsellors or lsquocareer servicesrsquo at the school So when you graduated most people just joined the Ministries The UAE was a brand new country and a lot of work was being done to develop the nation The Federal Government paid the highest and so one just joined them There was no grand vision or dream that I was off and chasing In those times you simply tried to do the next best thing So I ended up working in the Ministry of Health as an accountant Back then a university degree was a veritable qualification and it had a lot of market equity today it wonrsquot even get you in the doorrdquo
As the Middle East market evolves not only are university degrees becoming more common but so are post graduate degrees such as MBAs and even PhDs As such the competitive positioning of professional qualifications are gradually eroding over time
ldquoTo stay competitive executives today will require deep and specialised knowledge of their respective industries an intellectual arbitrage that provides superior results To beat the market to manage the risks to develop a sustained competitive edge For this executives need to stay in a role for the full strategic cycle which is at least four years in durationrdquo says Sharid In the case of Al Sharid he was there for 33 years
ldquoDo you just want a job or are you looking to make a contribution to your company Too many young people today are just looking for a title or a position The difference between those who make it into senior roles and stay there is the desire to create impact to add value
InterviewPERSONALITIES
2012year Moodyrsquos upgraded the UAE economy from developing to emerging
37The UAErsquos global rank for GDP
STAT FACTS
moment for me to gain valuable leadership experience early on To make my learning curve even steeper the General Manager quit after two years and I became the GM at the age of 29 years oldrdquo explains Al Sharid
He ascended to the top job in less than five years and stayed in the position for almost twenty years He was totally committed and could even be found in the bus yard at four in the morning to greet the drivers as they started their shifts ldquoThe key to being successful in business is to keep your finger on the details Some people let the details slip and if this happens you will suffer I get into the yard I meet the drivers I meet all the staff If you saw us you will not know who was the GM or who was the driver You have to realise people will never work for you they will only work with you To me Emirates Transport is like my familyrdquo says Al Sharid
When asked what his keys to success are he says ldquoI think if I was not an accountant I would not be a good leader I would not be a good manager In my opinion trying to do business while not understanding accounting is like getting into the ocean and not knowing how to swim you will drown The Chief Executive Officer who does not know how to create the financial statements is always at the mercy of his Chief Financial Officer He cannot take any big decision on his own and he will not even be able to challenge the CFO Accounting is the bedrock of any business and a critical skill set for any leader No one can argue with this factrdquo says Al Sharid
With over 20 years of experience in tow and the related chairmanships to boot Al Sharid
ldquoTrying to do business while not understanding accounting is like getting into the ocean and not knowing how to swim you will drownrdquo
has since early last year partnered with his family to form Al Sharid Auditing Though the Emirati youth is not as keen to pursue positions related to accountancy as Al Sharid was he feels that there is hope to close the gap
ldquoIt is difficult to find an Emirati expert I studied the audit market specifically and there were others like me then But now you break Emirati auditing involvement into three categories The first involves the big firms This is followed by individual smaller enterprises But thirdly a lot of locals opt to work with the government also Most are not managing their own firms they just have a partnership and they are building thatrdquo Al Sharid explains
ldquoAl Sharid Auditing however is a firm that includes my brother and our two sons which make up a body of qualified professional auditors We established this firm last year and work closely with the government We decided to make one firm together instead of having many smaller entitiesrdquo
Moving forward Al Sharid plans to grow his familyrsquos firm by applying the very belief system which has catapulted him to his position of power Marketing concerns which are designed to furthermore announce how tailored Al Sharidrsquos offerings are at present a key variable to forging ahead
Said Al Sharid ldquoMoving forward wersquore focusing more on the marketing of our firm Itrsquos a matter of not exactly expanding but going over the right deals The market is tough and the small jobs are easy but we donrsquot need them We donrsquot want to be in many rooms we want to be in the important onesrdquo
29wwwthecfomecom
InterviewPERSONALITIES
1UAErsquos rank among GCC nations for chosen hub of all major accountancy bodies
STAT FACTS
Latest insights from PwCrsquos 15th Annual Global CEO Survey revealed that 59 per cent of CEOs see emerging markets as more important than developed markets to their future What is making emerging markets such a pressing priority for C-suite executives Why are emerging markets increasingly grabbing headlines
Emerging markets are large fast-growing and ambitious markets best known for being the growth engines of todayrsquos global economy Research (1) suggests that emerging market countries are expected to amount for more than 60 per cent of global GDP growth ndash a clear indication of the wealth of opportunity they present
Understanding emerging marketsBased on estimates by the International Monetary Fund emerging economies are expected to grow two to three times faster in comparison to developed nations Explaining this fast-growth and the rise of these emerging markets an article on Forbescom details that ldquoduring the US housing crash and resulting credit crisis of 2008 world markets were saved from a total disaster thanks to the big emerging markets ndash mainly Brazil India and China The global credit crisis was one of the longest deepest and most painful in history It toppled Wall Street icons like Lehman
The following report explores emerging markets from West to East which are at the helm of economic development trade and innovation and highlights what their rising popularity means for the growth of your business
Brothers required government bailouts of bulge bracket banks and shocked the global economy with a deep economic recession and even a deeper crisis of confidence Its most important legacy though may be one that has yet to fully unfold the crisis revealed a new world order in terms of economic and market dynamics Emerging market economies finally arrived as
30
Market IntelligenceANALyTICS
wwwthecfomecom
ENTERING EmERGING mARKETS STRATEgIES RISKS ANd OppORTuNITIES
Projected annual GDP growth 2014 amp 2015
PANAMA
67
PERU
RANK42
55
Projected annual GDP growth 2014 amp 2015
Ease of Doing Business
RANK55Ease of Doing
Business
TOP TEN MARKETS
(1) Source here Accenture Research ldquogearing up for growth ndash five imperatives for success in emerging markets 2011 Henry Egan and Armen Ovanessoff
31
Market IntelligenceANALyTICS
wwwthecfomecom
LATVIA
CZECH REP
MALAYSIA
THAILAND
SOUTH KOREA
CHINA
RANK75
41
21
50
45
35
74
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
CHILE
RANK 34
43
Projected annual GDP growth 2014 amp 2015
Ease of Doing Business
RANK 24Ease of Doing
Business
Ease of Doing Business
RANK 6Ease of Doing
Business
RANK18Ease of Doing
Business
RANK 7Ease of Doing
Business
RANK 96Ease of Doing
Business
POLAND
32
RANK45Ease of Doing
Business
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
Source httpwwwbloombergcomnews2014-01-29qatar-china-top-ranking-of-frontier-and-emerging-marketshtml
powerful essential and permanent contributors to global economic growth and sustainabilityrdquo
Bloombergcom recently ranked the top emerging markets based on their performance on 19 economic financial political and social indicators In order of ranking the top ten markets were
CHINA
SOUTH KOREA
MALAYSIA
CHILE
THAILAND
PANAMA
PERU
LATVIA
POLAND
CZECH REP
1 6
2 7
3 84 9
5 10
Market IntelligenceANALyTICS
32 wwwthecfomecom
Making an entryIf your business is looking to enter any of these emerging markets itrsquos worth considering the following checklist
1 Assess your readiness The biggest mistake you can make is to enter a market without proper evaluation of your business Donrsquot do it just because everyone else is Like every other major business decision be sure to speak to your Board of Directors partners investors stakeholders and most importantly your CFO and certified accountants Make a business plan enlisting your objectives goals investment strategy potential risks etc
2 Research research research Do your homework Treat emerging markets as any other international expansion venture and do thorough research on the new market ndash Who are the competitorsWhat is the price point for your product What are the customer demographics What kind of infrastructure do you need for the manufacturing production or distribution of your product
3 Understand the legal framework Emerging markets might not have rules and regulations as clearly spelled out as your home country Invest some time and money in understanding how business procedures work A very obvious area of focus for UAE-based companies is tax Since the UAE is a tax-free economy companies arenrsquot exposed to tax accounting and other legislation surrounding
ndash failing to adapt to the needs and expectations of the local customers is surely a recipe for failure Time and again companies havenrsquot been able to create a customised offer and have had to exit these markets with huge losses A success story however is that of the Haier Group Haier famously introduced washing machines to specifically suit the water pressure levels in the households of India ndash an emerging market strategy that worked very well in their favour and helped them become leaders in that sector Another great example is that of Coca-Cola as explained in an online Reuters article by Matt Reilly ldquoIn Brazil Coca-Cola has used social media to better understand consumer preferences and has developed a successful local network to supply traditional Coca-Cola products as well as fruit juices tailored to local tastesrdquo
7 Local currency This is a complex yet critical area to consider when entering a new market Ask yourself questions such as ndash What is the local currency rate How does it compare to the currency in your home country Is the country import-led or export-led and what impact can this have on the global value of the currency Remember that fluctuations in currency rates can hugely effect your overall investment and thereby the return on investment
8 Build partnerships When entering an unknown territory it is quite useful to have the backing and support of peers who can help you in case of unforeseen challenges This is
this Another area to consider is corruption ndash emerging markets are notorious for high corruption red-tape and bureaucracy Speak to your company lawyer to assess these areas and take proper measures to avoid them before-hand
4 Invest in local talent Working with people already accustomed to the new market avoids the hassle of relocation and reduces costs But more significantly gives you skilled talent to work in these unique environments This also works in favour of your company as it gives you a clear understanding of the kind of compensation packages you will have to offer to your employees For instance employees based in China might want high remuneration and low healthcare benefits while in India it may be quite the reverse Recruiting local talent will also have a trickledown effect ndash your employees will easily be able to cater to the local customer needs without the need for intense training
5 Supply chain 44 per cent of business leaders surveyed consider accessing the right supply chain capabilities extremely or challenging in emerging markets according to Deloittersquos Globalisation Survey Make sure that you know who your suppliers will be what the production costs are whether their production procedures fit your time constraints and if the final product matches your level of quality
6 Cater to local market demands This is one of the most important aspects of all
Do your homework Treat emerg-ing markets as any other internation-al expansion venture
Market IntelligenceANALyTICS
33wwwthecfomecom
the very reason why Mergers and Acquisitions are a popular way to enter into emerging markets Many companies piggyback on their clients who are entering these markets For instance if you are an IT consultancy working on a major project for a manufacturing and trading company with operations across India and China you can use their resources and expertise to explore opportunities in these countries
Remember to consider these steps every time you enter a
new market as every locality has its own set of unique needs One strategy doesnrsquot fit all
Surviving fierce market conditionsWhile the massive opportunity that lies within emerging markets paints a pretty picture businesses need to be wary of bottlenecks such as corruption volatility gaps in laws and regulations and strong competition There have been several high-profile cases of multinational companies withdrawing from emerging
markets owing to immense corruption pressures
There is also a high percentage of inherent risks in these markets which amount to many companies not succeeding in their first attempts It is important to take your time when adapting to these markets and fully understand the business dynamics Following recent case studies and going over the lessons learnt by multinational companies who have made an entry into these markets consider the below
bull Is your companyrsquos head-office ndash and senior management ndash located in your home country without any C-level representation in the new emerging market
bull Are you focusing all of your resources on doing business in the emerging market at the cost of losing profits in your home market
bull Have you researched local competitors in these markets who may already have a strong standing and proven models of success
bull Are you using the same ldquoentry approachrdquo and business model across different emerging markets
If your answer to one or more of these questions is yes it may be time to re-evaluate your presence in these markets and map out a different strategy
Finally remember that no matter what the outcome of your admission to these markets might be your business is sure to emerge out of this stronger tougher and ndash of course ndash ready for a new challenge
of companies believed they had invested more resources in
emerging markets than was required
entered a market without fully assessing the ability of the supply chain to support the expansion
entered with the wrong pricing model and an inappropriate
operating model
CONSIDER THE RISKS
48
24
20
There is also a high percentage of inherent risks take your time when adapt-ing to these markets and fully understand the business dynamics
Source Emerging markets expansion and the supply chain Economist Intelligence unit survey conducted on behalf of EY September 2010
34
CIMA INTERVIEW
wwwthecfomecom
The Chartered Institute of Management Accountantsrsquo (CIMA) Managing Director Andrew Harding visited Dubai to host the Institutersquos seminar on global management accounting principles In the wake of CIMA revising their well heralded syllabus Harding discussed with CFO Magazine what the newest edition held how CIMA is applying a digital focus to its courses and just how CFOs can gain from it all
CURATING CURRICULUm
35
CIMAINTERVIEW
wwwthecfomecom
can give CFOs something they can take and something they can measure their own management accounting services against They can benchmark using this and they can utilise this to see their progress
Part of that is having professional management accountant in place I donrsquot think the landscape matters I believe that there is a common business need wherever you may be around the globe
All of the emerging markets need these skills The first aspect that accounting schools teach is about auditing skills because theyrsquore interested in protecting investments Then they teach you how to keep your business sustainable and to have a sustainable business you need to have a management accountant in place So itrsquos not just here in the UAE where we see these demands we see the same demands in China Indonesia and other powerhouse economies We see their skills shortages and we see the need for solutions in those areas
Talk to me about how this new syllabus works to promote the evolution of a CFOThis syllabus that wersquove
Can you expound on just what can be found within the new CIMA syllabusWe just revised the syllabus we do that every four to five years What we have done this year is a very significant revision It is based from a complex study that we have carried out to over 3000 people from 200 companies globally It is the very first revision since the joint venture with CIMA and AICPA So this has allowed us to attain a syllabus rich with all the data from all the continents in the world For the first time wersquove had real involvement from companies in the USA in this project
Why is the collaboration between AICPA and CIMA significantMost important is the Chartered Global Management Accountant (CGMA) designation that AICPA and CIMA both issue for qualified management accountants Wersquoll have a common curriculum and common examination which will begin on January 1 which gives us a global designation for management accountants wherever they are around the world There are plenty of accounting bodies who claim to be global but actually this is the only
genuinely global designation This is because it has the only one with a North American participation in it So we can say that the CGMA will be just as well-recognised in the USA as it is in Dubai
With the global landscape in mind how do you create an even objective that applies to localities which may prove widely differentialThe landscapes are different but businesses have common needs wherever they may be What wersquove particularly seen since the global financial crisis is that companies are actively looking to build management accountant capability to build that capacity within their organisations They donrsquot want to have a poor quality of information that lacks insight being used in their businesses So they see management accountants can bring solutions to that As a result of all the work wersquove done with companies who participated in the syllabus wersquove also put together a series of what we call Global Accounting Principles This is a series of principles which describes what good management accounting looks like and what top quality management accounting in a company should be producing This then
ldquoCompanies are actively looking to build man-agement accountant capability to build that capacity within their organisa-tionsrdquo
36 wwwthecfomecom
worked on acknowledges the skill set needed by professionals throughout their career Therersquos a base level of competence that is needed but beyond that there is more There is business acumen the ability to communicate and influence and finally the ability to lead So you start off enhancing your raw technical accounting skills Then you need to place that into the context of the business that you are in Then as you move forward and as you rise to become the CFO yoursquoll need the others You have to learn how to present your work in a way that can influence and make an impact in the business The final piece is the ability to lead projects and other functions and to a great extent lead the board of directors Thatrsquos how the context works itrsquos not just about technical knowledge
How do you find that CFOs in the GCC region are responding to this programmeThe CFO has a real challenge on his hands now In 1975 80 per cent of corporate value is showing on the balance sheet By 2010 that dropped to less than 20 per cent Your traditional PampL reports no longer reflect the value of the business or how the business drives value
All things that should be of interest to investors is missing With things like the integrated report initiative wersquore starting to see the other dimensions that add value to business For CFOs thatrsquos all about strategic thinking and considering the long-term objectives Being articulate in implementing those strategies keeping in mind the risks and opportunities that the business faces We are also nowadays witnessing a whole new world of transparency around that
Are there electronic aspects to CIMArsquos advancing approachThe interactive case study simulates a real working situation and it tests how they can apply their knowledge in real life situations Theyrsquoll be presented with a scenario a few weeks before they take the exam so they can prepare for it They then go to an exam centre where they are asked questions about how they will deal with a certain situation in the real world Theyrsquoll get an email from the CFO giving them a certain task for a particular period of time We want to make it as close to reality as possible so students taking the exam will be assessing situations based on real life scenarios
ldquoThe CFO has a real challenge on his hands now as traditional PampL reports no longer reflect the value of the businessand [the role] must focus on strategic thinking and considering long-term objectivesrdquo
218KCIMA members worldwide
STAT FACTS
CIMA INTERVIEW
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
38
ERPANALyTICS
wwwthecfomecom
Faster more nuanced IT solutions are available to the modern day CFO Whilst Chief Financial Officers are called upon to analyse data across a number of spectrums the digital tools on hand are likewise being expanded to aid in focusing more squarely on the bottom line
ExCELLING WITH ERP
The global landscape is today firmly entrenched within a digital model As a result CFOs whom are called upon to take a larger role in a number of variables must also increase their abilities with respect to utilising the many upsides which tech innovations offer a business When surveyed about their most pressing concerns CFOs generally return a varying collection of responses Revenue growth regulatory changes and meeting quarterly goals are among the chief concerns Virtually every obstacle can be hurdled by way of maintaining the order of financial reporting and data which has long been
synonymous with the Chief Financial Officerrsquos remit A widening berth of ERP solutions is making this data all the easier to come by
Despite how sophisticated the market is today it was not long ago that ERP departments once spent days processing business reports
Said Rohan Tejura Assistant Vice President Focus Softnet ldquoTraditional ERP systems were solely data repositories Moreover these repositories werenrsquot real time and were incredibly dependent upon locational connectivity With the emergence of smarter development platforms more versatile devices and
39
ERPANALyTICS
wwwthecfomecom
more intuitive designs of system development the overall experience of the ERP now extends from data warehousing to reporting analysis trend mapping business intelligence and governance oriented capabilities Yet these solutions amazingly execute all of these deliverables via portable handheld devices and through cloud environmentsrdquo
New generation ERP systems must now be on the go whilst including up to the minute analytics to provide deeper insight into the business ERP Analytics tools use historical data captured from various business functions to provide valuable information for efficiency and business performance each incredibly priceless to a leading CFO
Finesse is an ERP provider which is continually addressing the transformation of output which the ERP industry is offering the equally transitioning role of CFO
ldquoWe provide end-to-end business management solutions to SMEs and Enterprises Our approach to ERP is much more than providing simply an operational management systemrdquo said Finesse COO Sunil Paul
ldquoWe believe that todayrsquos businesses need much more than integrating sales with inventory accounting and manufacturing but also to have seamless integration with all their sales channels including the point of sales ecommerce and inbound sales solutionsrdquo
A major im-petus of the ERP-cen-tered growth is based on how effec-tive com-prehensive real-time data proves to be for the CFO
40 wwwthecfomecom
before thereby creating new global benchmarks for overall economic growth
Microsoft Arabia CFO Sadrul Khan offered insight into just how far the knowledge economy has influenced regional financial leadership by explaining how one of the most prioritised technologies by CFOs in the region is social platform monitoring
ldquoOne of the five technology choices that CFOs tend to prioritise in boosting productivity efficiencies and faster decision making in the fast paced business environment which include a social platform that monitors trends customer sentiments and helps process mashable data for customer centricity and business growthrdquo said Khan
A major impetus of the ERP-centered growth is based on how effective comprehensive real-time data proves to be for the CFO Whether employed as on-premise ERP software-as-a-service or cloud-based solutions a nearly identical ethos is being utilised Allowing the CFO to quickly access the performance of all facets of a business is paying dividends in the boardroom a reality which is showing itself increasingly in the Middle East
The technologically-charged relationship between ERP solutions and the regionrsquos CFOs is expanding and as a result has catalysed what many see as GCC economic performance outstripping that of many economies outside of the region as a result
In order to compete in todayrsquos fiercely competitive environment organisations need to think both innovatively and out of the box They require more insights about their business and their customers and need to ensure that they are able to meet the expectations of their internal as well as external stakeholders Enormous amounts of data both structured and unstructured is continuously being generated within the internal and external systems of the organisation which if analysed can be of immense value both to the business and subsequently the stakeholders associated with the organisation
With the the era of CFOs labouring over spreadsheets now in the past given how many business frontiers have become so dependent on mobile options such as the cloud more and more tech companies are providing the regionrsquos CFOs with information technology that converts traditional internal and external data into rich visual insights This information is then used for faster decision making and provides the ability for a CFO to assess manage and control risks Regional CFOs have grown enabled to drive corporate strategy accordingly demonstrating how the knowledge economy is now in full force amongst the Gulfrsquos corporates
Given that advanced IT has now become a regular CFO tool the regionrsquos CFOs are subsequently making faster decisions and driving internal growth models with greater speed and agility than ever
Tech companies are providing the regionrsquos CFOs with information technology that converts traditional internal and external data into rich visual insights
ERPANALyTICS
Donrsquot discoveritrsquos counterfeittoner afteritrsquos too lateOriginal HP Toner works first time every time1 unlike cheap toners which fail over half of the people who try it2 Non-HP toner can compromise your printerrsquos performance to give you streaked blotchy or faded prints Only original HP Toner cartridges deliver unmatched quality for the most professional-looking prints 100 of the time1
1 A QualityLogic 2010 study commissioned by HP comparing original HP LaserJet Monochrome print cartridges with nine brands of non-HP toner cartridges available in Europe Middle East and Africa for the HP LaserJet P1505 and P4015 printers HP 36A and 64A For details see wwwqualitylogiccomEMEAmonotonertestpdf 2 From a 2012 EMEA Lyra Research study commissioned by HP Results based on a total of 1050 HP Color LaserJet users who have used both original HP and non-HP toner cartridges of whom 552 experienced problems with non-HP cartridges
copy 2014 Hewlett-Packard Development Company LP
42
Private Equity ANALyTICS
wwwthecfomecom
The rise of PE-backed acquisitions is forcing CFOs to develop an entirely new set of skills
THE PRIvATE EQUITy CFO
The CFOrsquos utility in the world of private equity is without question on the rise The once-held belief of the CFO existing solely as the ldquoaccounting guyrdquo has been abandoned Over the last 20 years the role of CFO has become more demanding - requiring not just finance and accounting acumen but also a financial literacy in corporate planning risk management MampA assetliability management and regulation This evolution has been driven by a number of
key factors Yet the private equity industry which is now reshaping the corporate landscape through active ownership is by far the most significant factor driving change within the role of the CFO
PE-backed buyers today represent a larger percentage of overall buyers in the corporate acquisition marketplace than ever before Data provider Prequin estimates that as of June 2014 the capital raised by PE funds that
has not yet been deployed amounts to $114 trillion globally The result of this ldquodry powderrdquo is that a vast quantity of corporate acquisitions in the coming years will be undertaken by the private equity industry As such CFOs will be more accountable to demanding ldquosmart moneyrdquo shareholders than at any point in recent history Budgeting accounting and financial reporting will no longer exist as sole priorities but as a core competency among a
ldquoBy effec-tively using real-time data CFOs can create a dynamic process that proac-tively drives performance account-ability and value crea-tionrdquo
By Aaron Heidari
43
Private Equity ANALyTICS
wwwthecfomecom
robust set of complimentary and required skills Most of all the bar for CFOs is rising as PE investors will only accept above-average performance from their management teams
CFOs were once more reactive in function setting budgets based on other executivesrsquo plans and managing the flow of reporting to shareholders on a quarterly and yearly basis Today CFOs are required to become proactive managers of their respective businesses alongside their C-suite compatriots using a granular data-driven approach to aggregate analyse implement and report on every aspect of a companyrsquos operations
An important tool to drive this value creation process are KPIs Yet KPI structures including both aggregation and output are generally not up to the standards required of private equity investors prior to an investment being made
ldquoThe benefits of using KPIs and monthly reporting packages are significant By effectively using real-time data that is actionable and by partnering with functional area leaders within the organisation company CFOs can create a dynamic process that proactively drives performance accountability and value creationrdquo said Amanda Robinson Vice President of Accordion International in Dubai a consulting firm which is comprised of former private equity and investment banking professionals who
MENA region Cumulative Funds Under Management Since 2008
Source Zawya private Equity Monitor
19 636 20 36321 586
22 64323 506 24 250
-
5000
10000
15000
20000
25000
2008 2009 2010 2011 2012 2013
Cu
mu
lati
ve f
un
ds
($ m
)
$15mAverage MENA PE investment size in lsquo13
50Percentage of investment in IT and energy sectors
STAT FACTS
44 wwwthecfomecom
work with companies to deliver cost-effective project execution services
Active shareholders whose money it is being spent will typically require a data-driven justification before approving any budgets capital expenditures or new acquisitions Furthermore in many private equity backed companies the use of debt and the matching of shorter-term bank financing with longer-term investments will only be considered after a robust analysis is conducted to understand the companyrsquos ability to service that debt in the future This evaluation is not simply to identify revenues expenses and profits Itrsquos about drilling down into every transaction and rooting out data processing and reporting At least that is the expectation
The most valuable CFOs are those who have the ability not just to scrutinise and understand the financials but all also possess a wider grasp of the underlying data which truly comprise the business As an investor who has just acquired a stake in a new business I want a CFO who can manage the transition and stay ahead of my expectations Most of all a CFO should impress upon the companyrsquos shareholders a new way of doing business The first 100 days of an acquisition are said to be the most important During this period the CFOrsquos worth will be established when the new financial plan is due and the platform for the next five years of growth is presented
A CFO should man-age the tran-sition stay ahead of expectations and impress upon the companyrsquos shareholders a new way of doing business
Investment Volume By Sector Since 2006
Investment Volume By Sector in 2013
Source Zawya private Equity Monitor
1
3
30
17
3
28
3
4
6
4
6
5
17
9
9
6
9
5
8
6
6
2
3
10
Education
Education
Information Technology
Information Technology
Other
Other
Telecoms
Telecoms
Media
Media
Transport
Transport
Oil amp Gas
Oil amp Gas
Healthcare
Healthcare
Consumer goods
Consumer goods
Food amp Beverages
Food amp Beverages
Leisure
Leisure
Manufacturing
Manufacturing
ANALyTICS
Private Equity
2000857 NBAD ratibi mag ad 200x268 Finalindd 1 92514 1017 AM
46 wwwthecfomecom
THE FUTURE OFACCOUNTING EDUCATIONAddRESSINg THECOMpETENCY CRISIS
Have you ever stopped to think about how the accounting profession has changed since you graduated from college Recent graduates can answer this question by reflecting on the last two or three years whereas for other more seasoned professionals answering this question requires a bit more thought and memory searching Indeed we can all think of ways that the field of accounting is remarkably different today from the one we likely envisioned during our college daysmdashregardless of which decade we each donned our cap and gown This gradual transformation of the accounting profession leads to two important questions related to competencies bull Which competencies are important for success inaccounting todaybull Were these competencies consciously developed as partof your accounting degree programme
We suspect that more than a few of you would answer ldquonordquo to the second question Put another way our profession may be facingmdashmore so than at any time in the pastmdasha ldquocompetency crisisrdquo that is a gap between the competencies needed for professional success and those taught in our college classrooms today We propose a three-pronged strategy or ldquogame planrdquo for overcoming this competency crisis and in turn better preparing accounting graduates for the challenging world they will face First all of us accountants need to understand the changes that have already taken place in our profession and perhaps more importantly anticipate the changes that are on the horizon Second we need to educate ourselves and future generations of accountants so that as a collective group we can deliver the expanding set of competencies demanded in todayrsquos dynamic organisational
contexts Third as professional organisations and as individuals we need to think beyond ourselves by asking How can I (or we) help the accounting profession address the competency crisis
A Shift Toward Integrated ThinkingMany articles and white papers have been written that describe in detail the changes that have occurred in our profession over the last few decades but for our purposes wersquod like to distill these changes down to one crucial idea How does the accounting function add value to an organisation Accountants have evolved from support-oriented personnel who hand off information to others who actually make decisions into business partners who ldquohave a seat at the tablerdquo with managers
By peter C Brewer James E Sorensen CpA CgMA and david E Stout
47wwwthecfomecom
1048576bull What regulatory risks mayaccompany the proposal
1048576bull What social and environmentalfactors will we face if for example the proposal requires investing in overseas operations
1048576bull What types of employeeresistance may arise if we implement the proposal and how will we overcome the root causes of any such resistance
1048576bull Can and how should we valuefuture options associated with the proposal such as expanding or contracting the investment over time as new information becomes available
1048576bull Should we use debt or equity tofund the proposal
In short accountants have evolved to become integrated thinkers who enable EPM by partnering with managers across the organisation to add value Yet as EPM has gradually become the centrepiece of our professionrsquos value proposition accounting education hasnrsquot done enough to embrace it To overcome this gap wersquod like to further suggest that the concepts of competency integration and EPM need to come ldquofront and centrerdquo as we move forward in educating the next generation of successful accounting practitioners
Accounting Education No Longer on the SidelinesRecently a task force consisting of members of IMAreg (Institute of Management Accountants) and members of the Management Accounting Section (MAS) of the American Accounting Association (AAA) addressed the competency issue How should accounting education change fundamentally to help close the competencies gap The efforts of the task force led to
cash flows and how to apply discounted cash flow (DCF) decision models such as net present value (NPV) is of foundationalmdashsome might say critical mdash importance But integrated thinkers draw on an understanding of organisational strategy coupled with a broader set of competencies (beyond what might be considered technical or foundational knowledge) when making these types of decisions For example they consider how behavioural issues may influence the capital investment decision-making process Perhaps the financial estimates contained in the NPV analysis are too optimistic because the manager who prepared the numbers has a vested interest in seeing the project approved Decision makers also need to consider issues such as leasing vs buying a capital asset and the corresponding impacts on the financial statements and ratios that are tracked by investors and lenders What nonfinancial factors are associated with the proposed investment Add in the tax consequences of capital investment decisions coupled with the need to maintain internal control over any new business processes tied to these decisions and the need to think in an integrated fashion across a variety of accounting competencies becomes apparent
Furthermore becoming a true business partner with managers across the organisation requires more than simply integrating various accounting competencies It also means thinking like a business manager or a chief executive officer (CEO) Returning to the capital budgeting example an integrated thinker will ask questions such as
across the organisation Together they formulate and plan strategies then participate in collaborative decision-making processes that execute those strategies in a manner that adds stakeholder value Said another way accountants have evolved to become enterprise performance managers This shift in our orientation from a support function to an enterprise performance management (EPM) role has enormous implications for defining the determinants of success within our profession the most important of which involves becoming collaborators and ldquointegrated thinkersrdquo Take for example a common but important business decision process capital investment analysis Certainly technical knowledge regarding how to estimate relevant after-tax
48 wwwthecfomecom
expanding capital budgeting discussions to include financial statement impacts tax consequences and internal control issues integrates topical coverage across the External Reporting and Analysis Taxation Compliance and Planning and Assurance and Internal Control competencies shown in Figure 1
Third accounting curricula can incorporate a broader set of management competencies For example evaluating capital investment proposals from the perspectives of change management (Leadership) social and environmental issues (Ethics and Social Responsibility) regulatory concerns (Governance Risk and Compliance) and capital structure (Additional Core Business Competencies) brings a CEOrsquos perspective to the decision-making process
Fourth accounting curricula should include foundational competencies such as proficiency with spreadsheets and written and oral communication In the context of capital budgeting this may include asking students to use Microsoft Excel to perform a sensitivity analysis and then to present their findings to the entire class
Working to Fix the ProblemAt this point although you may agree with us that therersquos a competency crisis within the accounting profession you may be wondering What does this have to do with me What can my organisation do to help address this so-called competency crisis The answer a lot Practice partners and academic partners can help the accounting profession overcome the competency crisis That said letrsquos take a closer look at the role of practice partners first
improvement) and accounting competencies (external reporting and analysis planning analysis and control taxation compliance and planning information systems assurance and internal control and professional values ethics and attitudes) Of critical importance to the framework is the assumption that the set of competencies contained in Figure 1 would be developed and integrated over time through a blend of formal education (including continuing education) training and job experience
What levels of integrationmdashon the road to developing integrated thinkers in accountingmdashare possible First accounting educators can integrate within a single accounting competency So referring back to our capital budgeting discussion teaching computational models such as NPV analysis coupled with a review of various behavioural issues associated with capital investment decisions would be an example of integrating within the Planning Analysis and Control competency listed in Figure 1
Second professors can integrate across accounting competencies For example
a recently published article that contains a proposed framework for accounting education reproduced here as Figure 1 The framework is general in the sense that itrsquos meant to apply to all accounting students not subgroups based on career specialisation such as tax assurance services corporate finance and the like Itrsquos based on the idea that accounting educators can better prepare students to deliver our professionrsquos EPM value proposition through integrated competency-oriented curricula (For more see ldquoFocusing Accounting Curricula on Studentsrsquo Long-Run Careers Recommendations for an Integrated Competency-Based Framework for Accounting Educationrdquo in the May 2014 edition of Issues in Accounting Education)
A glance at Figure 1 reveals three levels of competencies foundational competencies (communication ability to leverage technology and analytical thinking and problem solving among others) broad management competencies (including leadership ethics and social responsibility and process management and
Proposed Competencies-based Framework for Accounting Education
FOUNDATIONALCOMPETENCIES
ACCOUNTING COMPETENCIES
BROAD MANAGEMENT COMPETENCIES
leadership
ExternalReportingamp Analysis
PlanningAnalysis
amp Control
TaxationComplianceamp Planning
InformationSystems
Assuranceamp InternalControl
ProfessionalValues Ethics
amp Attitudes
Communication
Quantitative
Interpersonal
Technological
Analytical Thinking ampProblem Solving
Ethics amp SocialResponsibility
ProcessManagement ampImprovement
GovernanceRisk amp
Compliance
AdditionalCore BusinessCompetencies
Although you may agree with us that therersquos a competency crisis within the account-ing profes-sion you may bewondering What does this haveto do with me
A practice partner should be or become a CMAreg (Certified Management Accountant) maintain professional certification by completing required Continuing Professional Education (CPE) hours and regularly read the IMA publications Strategic Finance and Management Accounting Quarterly
In addition there are a number of excellent resources that deal with topics covered in this article and that IMA makes available to its members
Strategic Finance PowerPacks(wwwimanetorg SFPowerPacks) These are resources focused on contemporary topics similar to those discussed earlier Current offerings include Risk Management Strategic Planning IT Skills amp Software and Internal Controls Each PowerPack includes a combination of resources such as research studies articles and links to webinars
Statements on Management Accounting (SMAs)(wwwimanetorgresources and_publicationsresearch_ studies_resourcesstatements on_management_accounting aspx) SMAs represent monographs classified into one of the following six categories Leadership Strategies and Ethics Technology Enablement Strategic Cost Management Business Performance Management Finance Governance Risk and Compliance and the Practice of Management Accounting Multiple items are available within each category For example the Practice of Management Accounting category includes (among other items)
49wwwthecfomecom
the Definition of Management Accounting and Implementing Shared Service Centres
Research Studies (wwwimanetorgresources_and_publicationsResearch_Studies_and_ResourcesAll_reportsaspx) The ldquoThoughtLeadershiprdquo section of IMArsquos website includes research covering a broad range of issues classified into seven categories For example under the ldquoGlobal Business Environmentrdquo category the following two research reports are available ldquoKey Differences Between IFRS and US GAAP Impact on Financial Reportingrdquo and ldquoCosting Methodologies and Cost Management Practices in the Peoplersquos Republic of Chinardquo
IMA Leadership Academy (www imanetorgprograms_events leadership_academyaspx) As described on the IMA website this programme is designed to assess a memberrsquos leadership status enhance that individualrsquos skills (principally through monthly webinars) and recognise leadership achievements These benefits are free to members
How You Can Make a Bigger Impact In addition to attending local regional and national IMA meetings consider inviting a small group of students to each chapter meeting This could be a wonderful (and relatively low-cost) option for mentoring aspiring accountants and finance professionals providing networking opportunities and introducing students to cutting-edge issues regarding the practice of management accounting Joining a university accounting
advisory group may be another way to influence the development of EPM in that institutionrsquos curriculum design
Other methods to enhance EPM in your organisation include (1) forming user groups within your company your local IMA chapter or your industry to review and share EPM experiences (2) encouraging advancement in the firm to be linked to EPM proficiency (3) focusing your companyrsquos recruiting efforts on candidates who display a background in andor understanding of EPM and (4) organising cross training within your company to enhance a mutual understanding of each otherrsquos respective roles
Finally visit the Competency CrisisTM website (http competencycrisisorg) set up by IMA to unite the accounting and finance constituencies professionals students employers academics and professorsmdashand explore competency issues through the lens of each stakeholder group The site is designed to ldquoencourage a discourse spur action and create a community dedicated to resolving the serious crisis of competency present in the professionrdquo Special sections of the website are devoted to educators students and employers professionals
Our Partners in Education Much like a practice partner an academic partner should be or become a CMA maintain professional accreditation by completing CPE hours and regularly read IMArsquos publications
Academic members of IMA can pursue and actively promote the CMA programme at their respective institutions
50 wwwthecfomecom
IMArsquos website contains helpful resources including an exam content overview content specification outlines for each of the two parts of the CMA exam and learning outcome statements The current exam covers some of the professional competencies represented in Figure 1 A summary of changes to exam content which will be effective in January 2015 is provided on the IMA website in News amp Media Relations which is located under ldquoAbout IMArdquo (See the press release dated March 24 2014) Other helpful resources include ldquoICMA Announces CMA Exam Content Changesrdquo in the April 2014 issue of Strategic Finance as well as ldquoManagement Accounting Career Readiness Shaping YOUR Curriculumrdquo
These forthcoming changes are based on the most recent IMA study of the knowledge and skills needed by management accountants from the view of CFOs controllers and other accountingfinance professionals from around the world
Also consider taking a group of your students to the IMA Student Leadership Conference held each November The Conference provides excellent networking opportunities for you your students and practicing professionals Students can learn firsthand from Conference presenters the challenges and opportunities facing finance and accounting professionals today
Moreover if your institution doesnrsquot currently have an IMA Student Chapter consider forming one One of the authors of this article David Stout reinstituted the student chapter at his school (Youngstown State University) after travelling with a group of his students to the IMA
Student Leadership Conference in Cleveland Ohio Through an IMA Student Chapter on campus students are able to work closely with a sponsoring local IMA chapter and bring to campus speakers who are experts in a wide range of topics including those discussed earlier in this article Each year student chapters compete for an Award of Excellence (AOE) and recognition as an Outstanding Student Chapter In addition IMA student members are able to engage in networking activities leadership training mentoring and community service programmesmdashall through their local chapter
You also might consider volunteering to serve as a Campus Advocate In this role yoursquoll represent IMA in all major matters of interest to your students (scholarship opportunities starting a student chapter mentoring and the like) and to your institution (for example leveraging IMA resources to advance the relevancy of the accounting curriculum use of educational case studies published in the IMA Educational Case Journal and access to IMArsquos ethics curriculum)
And if you havenrsquot yet done this ask IMA to endorse your accounting programme (information is available at www imanetorgeducator_resources indexaspx) This programme is designed to identify business curricula that meet the quality educational standards required to prepare students to earn the CMA designation Endorsement is based on an analysis of the curriculum and topics covered on the two-part CMA exam Currently 12 programmes have been endorsed
Finally if your school has an IMA Student Chapter consider participating in the annual IMA Student Case Competition where students are asked to propose a solution to a real world problem (Cases are solicited each year by Raef Lawson IMA VP of Research and Policy and IMA Professor in-Residence) Finalists make their presentations at IMArsquos Annual Conference amp Exposition before a set of judges consisting of accounting faculty members and practitioners Each year a new case is published in the August issue of Strategic Finance for students to use for that yearrsquos competition
Working TogetherIn this article we have summarised the changes that have affected the accounting profession and provided a competencies-based framework for guiding accounting educators in responding productively to those changes As a management accountant you know that implementing change in any organisation let alone within an entire profession never comes easily To be successful in overcoming our professionrsquos competency crisis IMArsquos practice and academic partners will need to assume leadership roles in defining enterprise performance management as the cornerstone of the accounting professionrsquos value proposition
This article was orginally published in the August 2014 issue of Strategic Finance It appears here with the permission of The Association of Accountants and financial professionals in Business
We need to educate ourselvesand future generations of account-ants so that as a collec-tive group we can deliver theexpanding set of com-petenciesdemanded in todayrsquos dynamicorgani-sational contexts
THE POWERFUL AND THRIFTY OFFICE ALL-ROUNDERS
The new ECOSYS M3560idn series will astound you With their print speeds of up to 60 pages per minute they are among the most productive A4 bw multifunctionals on the market We nevertheless managed to keep their ecological footprint and total cost of ownership impressively low by using our well-known ECOSYS technology and equipping the devices with our renowned long-life components The result Not only less waste and lower maintenance costs but also less hassle for you and all your colleagues You will also greatly appreciate the many customisation possibilities of the devices equipped with KYOCERArsquos open solution platform HyPAStrade as it allows you to tailor the device to your needs So yes we are proud of our new range of MFPs and can hardly wait to share their numerous benefits with you
For more information please contactKYOCERA Document Solutions Middle East | PB Box 500817 DubaiUAE | Tel +9714 4330 412 | Fax +9714 4231 944KYOCERA Document Solutions Europe BV - wwwkyoceradocumentsolutionseuKYOCERA Document Solutions Inc - wwwkyoceradocumentsolutionscom
52
ACCAINTERVIEW
wwwthecfomecom
GLOBAL By ASSOCIATION
across the region from our key employers and learning provider partners to our active and growing student and member base I want to understand their challenges and priorities and how ACCA can work with them to help support the economic success of the region
What can a CFO gain from working with ACCAThe ACCA qualification is about complete finance professionals For CFOs it brings the technical knowledge vital to business success complemented with the strategic management skills and ethical competence crucial to an organisationrsquos success As an organization ACCA in the UAE brings CFOs access to that local and global network of peers and expertise along with our leading research and insights that help them to keep up to date on the issues that matter most
Are there any initiatives in place to leverage the recently announced partnership with AAA
How are the ACCArsquos many years of activity being applied to the Middle EastACCA has now had a presence in the UAE for well over a decade During that time we have established strong relationships across the Middle East epitomised by the recent signing of our Strategic Partnership with AAA As a national body in choosing to partner with ACCA they recognised the local and global perspective we bring We are continuing to work with students members and employers across the Middle East to build their networks knowledge and business success through events research and insights and access to a growing number of online resources
Which initial priorities are among your key aims upon joining the organisationrsquos efforts in the UAEIn the first few months I hope to build on the success of the team in the UAE My priority will be to meet as many of our key stakeholders
The Association for Chartered Certified Accountants (ACCA) provides its services across a number of international borders The recent announcement of Lindsay Degouve de Nuncques as the new head of the Associationrsquos UAE chapter further exemplifies the ACCArsquos reach based on her previous work in the UK Nuncques shares here what she brings to the Middle East and just how globalisation has driven her ascent
53
ACCAINTERVIEW
wwwthecfomecom
The strategic partnership with AAA is the first of its kind in the region Students who complete the UAECA qualification will be entitled to both the AAA and ACCA designations and ACCA members in the UAE will also be eligible to apply for AAA membership This is a very exciting development in the market and together AAA and ACCA will be working to deliver maximum value to all our stakeholders from this partnership As we launch the UAECA qualification this activity will start in earnest
Which key industries will you be spotlighting in the Middle East in the months aheadOur experience of working across all sectors and levels of organisations globally gives ACCA a unique insight into all types of industries We will continue to be working with employers across the spectrum in the months ahead to help them gain the insight and make the connections that drive businesses to succeed at whatever they do
ldquoThe ACCA qualification is about complete finance professionals For CFOs it brings the technical knowledge vital to business success complemented with the strategic management skillsrdquo
54
Islamic FinanceMARKET OUTLOOK
wwwthecfomecom
In its 10th instalment the Forum is hosted in Dubai as a direct result of the UAErsquos increasing importance in the world of global Islamic finance
THE WORLD ISLAmIC ECONOmIC FORUm LANDS IN DUBAI
In Dubairsquos continued quest for leading the world across a range of spectrums the Emirate accelerated its desire to become the worldrsquos leading hub for Islamic finance by hosting the 10th installment of the World Islamic Economic Forum (WIEF) Delegates from dozens of countries attended to take part in a three-day event held at Madinat Jumeirah which rests alongside Dubairsquos gleaming coastline Held under the patronage of His Highness Sheikh Mohammed Bin Rashid Al Maktoum the
Vice President and Prime Minister of the UAE and Ruler of Dubai key speakers included The Honorary Dr Zeti Akhtar Aziz Governor of the Central Bank of Malaysia HE Kairat Kelimbetov Governor of the National Bank of Kazakhstan The Honorary Datorsquo Sri Mohd Najib Tun Abdul Razal Prime Minister of Malaysia and HE Xavier Bettel Prime Minister of the Grand Duchy of Luxembourg
Launched in 2006 in Malaysia WIEF has grown in tandem with the increased
Delegates from dozens of countries attended WIEF to take part in the three-day event
sophistication and reach of Islamic finance After a successful event in London in 2013 amidst increased interest in Islamic finance across Europe WIEF relocated to Dubai where the local business structure is keen to host halal finance
Said Hamad Buamim President and CEO Dubai Chamber of Commerce and Industry co-organisers of the event ldquo[The forum] is the start of a new chapter of cooperation between Dubai and the world as part of
55
Islamic FinanceMARKET OUTLOOK
wwwthecfomecom
Dubai Capital of Islamic Economy visionhellipestablishing a unified regulatory authority to provide the framework for standards across halal industries will significantly accelerate growth Likewise we need to see increased cooperation and partnership between the public and private sectors This is already happening with great success here in Dubairdquo
The order of global cooperation needed to facilitate growth across the Islamic finance world was more than apparent at WIEF based on how many differing nations were represented at the event The exhibitorrsquos hall was populated with a number of key Malaysian stands representative of the Southeast Asianrsquos ranking as the global leader in Islamic finance Also present were companies from Saudi Arabia also a key locality in the worldrsquos halal industries An interesting yet prescient presence was of attendees from South Korea a nation which is eager to participate in Islamic finance and will be hosting the WIEF Pyeongchang Roundtable in December 2014
ldquoGangwon is a province located in Korea which is very interested in new business opportunities Wersquove realised the strength of the Islamic economy and have come here with many different companies The first type is based in real estate investment We also have companies which want to export their products to the Islamic economy based on their halal qualities And Gangwon will also be hosting the Winter
ldquoKorea is very interested in the strength of the Islamic economy and wants to export its products based on their halal qualitiesrdquo
56 wwwthecfomecom
$247trillionProjected value of halal products industry in lsquo18
125Muslim percentage of global tourism expenditure
STAT FACTSOlympics in 2018 and are presently seeking investments for this as wellrdquo said Seong-hun Kim a member of Gangwon Province Governmentrsquos Export Support Team
Dubai proved to be an excellent place for the event considering how well the UAE is able to so regularly corral international cooperation A key sign of this was witnessed recently when Luxembourg now considered the third most important base for Islamic finance globally opened a finance office in Dubai International Finance Centre The European nation also opened a euro200 sukuk earlier this year which was quickly oversubscribed
The prime minister of Luxembourg offered the WIEF audience a riveting speech which detailed just how international the Forum has become whilst encouraging more of the world to support the growing influence of Islamic finance
Said Bettel ldquoWe need to innovate more economic partnerships for growth We sometimes need to reengineer relationships but also have to make sure these relationships remain sustainable Growth in one country also brings growth to others as long as this is guided by free market initiatives Free trade and free flow of capital combined with innovation leads to prosperity We have all gathered here in Dubai to explore the future of Islamic finance and Luxembourg is also a pioneer of Islamic finance in Europe The Islamic financial sector has a major role to play in continued global growthrdquo
The Islamic Corporation for the Development of the Private Sector (ICD) is based in the Kingdom of Saudi Arabia where it manages an international fund worth $2 billion half of which is available for subscription With shareholders in more than 50 countries and a sovereign sukuk fund recently launched in West Africa the ICDrsquos CEO Khaled M Al Aboodi attended WIEF this year excited to participate in the global event
How does the ICD approach its attendance at the World Islamic Economic ForumI think the Forum is one of the best places for discussing the financial issues of the OEC member countries It has been around for ten years and has grown to become a very important platform for discussion Wersquore here to attend and listen but also to network Itrsquos a great networking platform and a place to share views whilst letting everyone know what we have to offer
How has Islamic finance changed over the yearsOf course itrsquos growing in a large scale Some of it actually needs more support particularly with respect to regulatory frameworks Wersquore trying to partner with many international organisations like the IMF to try to provide support to countries to adapt regulation for Islamic finance Sukuk issuance is one of the biggest issues that needs to be addressed because there is a huge amount of liquidity in this arena Due to issues related to regulation sukuk issuance can be costly But with the regulation we are confident it will be on a level playing field with other forms of finance Compliance is a major area where more work can be done The Forum started with a roundtable on sukuk which shows how helpful WIEF has been over the years
What type of work does ICD do internationallyICD helped the government of Senegal to issue the first sovereign sukuk This was successfully issued last summer Progressing in this manner is something wersquod like to see continue across West Africa in order to utilise its resources with aiding development in the region in mind
QampA WITH KHALED M AL ABOODI CEO OF ICD
Islamic FinanceMARKET OUTLOOK
OFFICIAL SPONSORS
ENDORSED BY OFFICIAL HOST OFFICIAL
COMMUNICATIONS PARTNER
MEYDAN HOTEL DUBAI UAE19 - 20 NOVEMBER 2014
WOMENOMICSthe next emerging market
TAKE PART in making change happen UNITE with business and through leaders from across the globe
PARTICIPATE to the expansion of a modern and inclusive economy
58
Gautam PradhanINTERVIEW
wwwthecfomecom
SUCCESS BEyOND BOUNDARIES
in other management roles such as strategic decision making mentoring and leading efficiency and productivity across a range of other departments and functions as well as a being a catalyst in ensuring that the boardrsquos vision for the organisation is achieved
A significant percentage of NMDCrsquos shares are owned publicly Does the CFO play a role in balancing the interests of the shareholdersAs a CFO balancing the shareholdersrsquo interests is definitely part of my responsibility In order to achieve this goal there needs to be a careful evaluation of each decision while keeping the short-term and long-term goals of the company in mind At NMDC we actively implement a system where we utilise a balance scorecard as a method of ensuring that all our primary objectives are met yet at the same time continuously enhance our relationships with our shareholders
NMDC has completed various projects across the Emirates Are there plans to move abroadAs NMDC moves towards becoming an international player our strategic expansion plans are focused in areas within the GCC region and India In line with this strategy we opened
How has a company with such a unique set of deliverables grown so consistently over the yearsOur organisation strongly believes that the core to our strength is the people process and equipment A strategic decision led by our Board of Directors and the senior management has been implemented that required us to consistently invest in these three aspects to help expand our business beyond the territorial boundaries of the UAE and at the same time enhance what we can offer which is relevant to these segments We attribute our success to the efforts which every employee contributes We also strongly believe in the ldquoWe can make it happenrdquo principle The management raises the index of performance while setting SMART objectives within the organisation and encouraging the employees to achieve them
How has your position as the CFO changed over NMDCrsquos 35 years of operationAs the market evolves and business dynamics change my role as the CFO has become complex and more challenging A few years back I was mainly focused on bookkeeping accounting and other financial responsibilities such as arranging bank facilities But moving forward I became more involved
The UAE is progressively becoming a hub for world-class infrastructure The country has duly impressed the rest of the globe with noteworthy land developments showcased across the emirates Among the remarkable landscapes found in Abu Dhabi are the Corniche Beach Yas Island and Sir Baniyas Island Behind these successful projects is NMDC the dredging division of Abu Dhabi National Oil Company (ADNOC)
In an interview with CFO Magazine Gautam Pradhan Chief Financial Officer NMDC shares an exclusive look into the companyrsquos international blueprint for growth and his dynamic role as a strategic leader of one of the best in dredging and marine construction in the Middle East
59
Gautam PradhanINTERVIEW
wwwthecfomecom
branches in Qatar Bahrain Oman and India This has paid rich dividends recently as projects of strategic importance are bagged in Qatar and Bahrain Furthermore NMDC (UAE) has recently played a key role as a leader of an international consortium with Royal Boskalis Westminister (Netherlands) and Jan De Nul Group (Belgium) for the awarding of the Suez Canal Dredging project in Egypt Moving forward we have devised a strategic approach that will enable us to play a key role in the development of Indiarsquos marine infrastructure
What are the global strategies that are part of the CFOrsquos responsibilitiesAs CFO understanding the macro economic scenario risk analysis and mitigating those risks are all a part of my responsibilities I also have to have a proper comprehension
ldquoA few years back I was mainly focused on financial responsibilities moving forward I became more involved in strategic decision making mentoring and leading productivityrdquo
Gautam PradhanINTERVIEW
60 wwwthecfomecom
of the challenges faced by the company in terms of dealing with foreign contracts direct and indirect taxes and hedging and managing the integration process These are essential to enhance shareholders wealth and mitigate undue risk
How significant is accountancy for NMDC in its operations Why exactlyAccountancy is the lifeline of any company it does not only record the finances it also reflects the health of the organisation The MIS reports analysis trends and statistical information go a long way toward effectively providing
the diagnostic approach essential for the company
How have NMDCrsquos environmental activities helped the companyrsquos bottom lineNMDCrsquos work is well-synchronised with our environmental activities and specifically with nature Our activities are closely linked to sand and water and we view such activities with strategic importance Projects such as increasing water supply to mangroves and beach nourishment help us support the environmental activities while adding to our bottom line
ldquoAccountancy is the lifeline of any company it does not only record the finances it also reflects the health of the organisationrdquo
A burgeoning slice of Abu Dhabi coastline
The largest business awards
in the GCC30th November Dubai
nominate now at wwwstarsofbusinessawardscom
Stars of Business has become an iconic awards brand like no other in the region It recognizes the very best SMEs across 26 business categories Itrsquos universally respected as scientifically assessed and unimpeachably judged
327000 SMEs across the UAE$234 billion estimated total revenue of the SME sector4974 Awards entries in 20131856 Individual company applicants
Presenting Partner Strategic SME Partner Gold Sponsor Gold Sponsor VIP Hospitality Partner Supporting Partner
Trade Facilitator PartnerTrade Credit PartnerLogistics Partner
Institutional Partner Institutional Partner Event Partner
OrganiserPublisherMedia Partner Media PartnerPort Authority Partner
62
David Allen INTERVIEW
wwwthecfomecom
What went into completing your bestseller ndash Getting Things Done (GTD)After twenty years of researching developing and implementing a methodology for achieving stress-free productivity based upon
thousands of hours spent desk-side with
some of the best brightest and busiest people in the world I decided to write the manual for it Thatrsquos what Getting Things Done is
What are the five phases of mastering workflowIn order to get
any situation under control so
you can focus you will utilise these five
steps Whether yoursquore managing your kitchen
or your company you will need to collect and capture what has your attention clarify what if anything to do about it organise it according to what it means to you review and reflect upon it in relation to
Todayrsquos evolving CFO is often caught between the world of business set-up generating revenue managing employees and building strong company infrastructure When can things actually get done What can one do to boost productivity and master workflow World-renowned business coach David Allen has the answers
PRODUCTIvITy PRINCIPLES WITH
DAvID ALLEN
63
David Allen INTERVIEW
wwwthecfomecom
those are greatly subvertedHow does one maintain a fair balance between the time spent planning and actually getting things doneYou simply need to spend just the amount of time you need to to trust that what you are getting done is the right thing to be getting done in the moment It takes as long as it takes to get to that point Why would you do anything less
How can one apply your core productivity and workflow principles to todayrsquos technologically driven environmentThe principles and their techniques are system-independent Whether you have meaningful input from the Internet your smartphone or a conversation in the hall you must engage with it equally Technology has simply increased the flow of input and ease of distraction in your world
There is a lot of talk about how connected wersquove become and how connectivity is driving tremendous business growth Does connectivity actually come with its fair share of downsides
Connectivity is obviously a two-edged sword We can have intimate productive and creative interaction instantly with someone on the other side of the world and we can just as easily be distracted and seduced into those engagements when they may not be the best use of our attention and resources Donrsquot shoot the medium Itrsquos all simply bringing attention to your clarity of direction and priorities or lack thereof
Could you share a few quick tips with our readers to instantly boost productivityWrite everything down that has your attention Decide the very next actions required to get closure on all of them Any next actions that require less than two minutes do instantly Park reminders of everything else somewhere that yoursquoll see when you can do something about them
We are currently facing a massive information overload What are some basic principles you could suggest to mentally organise such large amounts of dataConstantly ask yourself Where am I going Whatrsquos important and rewarding to me Is this information
the whole and then engage your resources with intuitive trust
As a CFO how can you transfer efficient workflow management skills to your employees Itrsquos very difficult to legislate processes for individuals ndash you can really only hold them accountable for their results But if you are managing your own commitments and intersections with them with integrity and rigour it will automatically force your team to ldquostep up to the platerdquo in their own behaviours in order to meet your standards If you request their complete list of their company projects and they canrsquot produce it thatrsquos a sign theyrsquore not in control If they make a commitment to you that they havenrsquot kept thatrsquos data about their performance GTD is simply about good operational business practices
With so many planning and organising activities in your methodology is there a risk of losing spontaneity as a strategistThe reason for these best practices is to optimise freedom creativity and spontaneity Without them
ldquoBut if you are manag-ing your own com-mitments and intersec-tions with them with integrity and rigour it will automatical-ly force them to ldquostep up to the platerdquo in their own behaviours in order to meet your standardsrdquo
64 wwwthecfomecom
supporting that Park whatever you find potentially meaningful somewhere that is easy to access when needed
Being an entrepreneur is a non-stop job How do you ensure that you have an adequate work-life balance Pay attention to what has your attentionmdashwith regard to anything Your health relationships career finances etc Notice when something might be ldquooffrdquo and make good decisions about what you need to do to get it back ldquoonrdquo again
Does your work teach people to be efficient or effective In essence they are the same thing Effective choices are generated by efficiency on a higher level If you want to implement strategy most effectively it demands utilising your resources optimally which is efficiency
Does motivation actually improve quality of work or purely quantityDepends on the focus of the motivation You can be motivated to work harder and you can be motivated to work smarter
What is your favourite productivity mantra that
you implement in your day-to-day lifeUsing my own in-basket and note-taking devices to capture potentially meaningful and valuable ideas and soon afterwards clearing all of them out by deciding what to do about them if anything
Your books seminars and other work inspires many individuals and businesses Who is your personal inspiration or role model I have many about many different aspects of my life The only person though that I ultimately trust as my best guide is my higher self which I try to access as frequently and clearly as I can
Finally what advice would you give to current business owners and aspiring entrepreneurs looking to gain complete control of their life and businessCapture what has your attention clarify what you need to do about it to get it off your mind organise the inventory of all your commitments at all levels review and reflect on all of that regularly relax and trust your inner wisdom to engage with the most appropriate thing in the moment
ldquoIf you want to implement strategy most effectively it demands utilising your resources optimallyrdquo
David Allen INTERVIEW
APPSTECH TALK
wwwthecfomecom 65
mAxImISE BUSINESS lsquoON-THE-GOrsquo WITH THESE HANDy APPS
ipAd SpECIAL
SAMSUNG UNvEILS GALAxY NOTE EDGE
Network
AP
Display
OS
Camera
Video
Audio
Additional Features
GoogleMobile Services
Connectivity
Sensor
Memory
Dimension
Battery
The availability of service may differ by country All functionality features specifications and other product information provided in this document including but not limited to the benefits design pricing components performance availability and capabilities of the product are subject to change without notice or obligation
Samsung Galaxy Note Edge Product Specifications
25G (GSM GPRS EDGE) 850 900 1800 1900 MHz3G (HSPA + 42Mbps) 850 900 1900 2100 MHz4G (LTE Cat 4 15050Mbps) or 4G(LTE Cat 6 30050Mbps)May differ by country and carrier
27 GHz Quad-Core Processor
56 inch (1419mm) Quad HD+ Super AMOLED (2560 x 1440 + 160)
Android 44 (KitKat)
Rear Facing 16 Mega pixel Auto Focus camera with Smart OISFront Facing 37 Mega pixel camera with f19Rear Facing Camera HDR (Rich tone) Selective Focus Rear-cam Selfie Beauty face Virtual Tour Shot ShotampMore Dual CameraFront Facing Camera Selfie Wide Selfie
Codec H264 MPEG-4 H263 VC-1 WMV7 WMV8 Sorenson Spark MP43 VP8 Recording amp Playback up to UHD
Codec MP3 AACAAC+eAAC+ WMA AMR-NBWB Vorbis FLAC()() Ultra High Quality Audio (~192KHz 24 bit) support
Multi WindowUltra Power Saving ModeVoice Recorder (Normal Mode Interview Mode Meeting Mode Voice Memo)Download BoosterS Health 35Dynamic Lock ScreenBriefingEdge screen UX Revolving Interaction Immersive apps(Camera Video S Note)Ticker board Express me Quick Tools Night Clock etc
Chrome Drive Photos Gmail Google Google+ Google Settings Hangouts Maps Play Books Play Games Play Newsstand Play Movie amp TV Play Music Play Store Voice Search YouTube
WiFi 80211 abgnac (HT80) MIMO PCIeGPS GLONASS BeidouNFC Bluetoothreg v 41 (BLE ANT+)IR LED (Remote Control) USB20 MHL 30
Gesture Accelerometer Geo-magnetic Gyroscope RGB IR-LEDProximity Barometer Hall Sensor Finger Scanner UV Heart Rate Monitoring SpO2 (Dependent on market)
32 64 GB Internal memory + microSD slot (up to 128GB)3GB RAM
1513 x 824 x 83mm 174g
Standard battery Li-ion 3000 mAh Fast Charging (Adaptive Fast Charging amp QC20)
wwwthecfomecom66
APPSTECH TALK
AIR DISPLAY
SQUARE REGISTER
Using this app you can connect your iPad to your computer and use it as an additional screen While working on an important presentation or sales proposal you can extend or mirror your computer screen on your iPad This app is compatible with both Mac and Windows computers Note that to use this feature you have to install Air Display on your iPad and a separate free app on your computer The computer and iPad also need to be on the same Wi-Fi network in order to work in-sync
For Mac users the app allows you to connect to up to four screens ndash all at the same time
Apart from the ability to convert your iPad into a wireless display whatrsquos also attractive about this app is that it allows you to control your computer wirelessly using your iPad
This fantastic application can serve as a mobile point of sale for your business It allows you to accept credit card payments ndash including Visa MasterCard Discover and American Express A transaction fee of 275 is charged for every time you swipe a card The sale amount is transferred to your account within two working days
Once you download the app you can sign up and register for a unique card reader solution called the lsquoSquare Readerrsquo (this is free) Square Reader encrypts all card details and ensures that the transaction is secure Once you receive your Square Reader you can connect it to your device and are all set
The application also offers added features such as transaction history connecting to a receipt printer creating employee logins and more
AED 3699
PRICE
Free
PRICE
wwwthecfomecom 67
APPSTECH TALK
DOCUSIGNHave you ever been in a situation where your employees need you to urgently sign a contract but arenrsquot able to physically reach you in time DocuSign solves this problem with its easy-to-use eSignature feature In three easy steps you can sign important documents and securely send them to your intended recipient
First you have to import the document to your device ndash this could be from Dropbox Google Drive or another select applications You then place your signature or any other important legal information you need to include such as initials Once you have finished working on the document send it back via e-mail
Whatrsquos particularly great about DocuSign is the great emphasis it puts on security ndash so that users donrsquot have to worry about getting into any legal trouble
Use DocuSign and never miss a deadline again
Free for basic version
PRICE
MPAYAn initiative by the Dubai eGovernment Department mPay is a simple application that allows you to make important payments Once yoursquove signed up and entered your payment details you are good to go You can pay your Dubai Electricity and Water Authority (DEWA) bills Etisalat utility bills Dubai Police fines Recharge SALIK and much more
A handy feature is its lsquoauto-rechargersquo option which you can use to set automatic payments
Free
PRICE
Opinion CIMAPERSONALITIES
wwwthecfomecom68
NEW HORIZONSBy geetu Ahuja Head of gCC at CIMA
The days of the traditional accountant working within a small community in a small town in a small market have long gone CFOs are now being referred to as Chief Frontier Officers as they travel from market to market overseeing their offices overseas This new expanded role has distinct advantages for both the company and the CFO who gain new skills and new insights from foreign branches a single hand at the helm of many markets provides business perspectives on a global scale and benchmarks across the board
On a personal level working abroad also has huge importance Robert Walters the specialist professional recruitment consultancy recently conducted a survey
of almost 2200 employees across a variety of professions exploring a number of topics which ranged from working practices and attitudes to careers The results highlighted some notable trends particularly for finance professionals
In career progression for example the survey showed that 50 of all accountants see working abroad as either lsquoessentialrsquo or lsquoextremely usefulrsquo to furthering their prospects more than banking professionals lawyers and IT workers ndash a strong indication of how accounting professionals are thinking about their future either within their existing company or with opportunities elsewhere
Accountants with globally recognised qualifications obviously have a greater chance of gaining some experience abroad and the lsquoGen Yrsquo professionals in particular seem ready to pack their bags In a CIMA study conducted in the UK last year over a third of those seeking employment in the
next two years will prioritise opportunities abroad over those in their home countries many of them enticed by the career incentives offered by the Middle East
How quickly can they land what seems to be their dream job What are the realities It may be that the move is simply from one branch to another and the only significant difference is a view from the window but for those expanding rather than changing their roles we have seen a very real need for a depth and breadth of knowledge never needed before
As geographical boundaries are pushed ever-wider a CFOrsquos responsibilities are pushed with them For many finance executives the understanding of their own patch of land is no longer enough they now have to be aware of foreign markets up to speed with foreign trends and au fait with foreign laws There is a need for a new commercial awareness in geography as well as philosophy
As geographical boundaries are pushed ever-wider a CFOrsquos responsibilities are pushed with them
John vargheseQampA
wwwthecfomecom 69
BUSINESSSET UP YOUR
IN THE UNITED ARAB EMIRATES
TO
WAREHOUSESOFFICES INDUSTRIAL LANDFLEXI
Quick and easy company set-up
Less than an hour drive from Dubai
Complete cost-effective packages including licences and facilities
100 foreign ownership
Zero income and corporate taxes
Eligibility for UAE Residence Visa
BUSINESS SET-UP SOLUTIONS STARTING FROM AED 15000 (USD 4000)
RAK FREE TRADE ZONE PROVIDES
RAK Free Trade Zone Authority - Government of Ras Al KhaimahUAE (Ras Al Khaimah) Tel +971 7 2041111 (Dubai) Tel +971 4 7041875 (Abu Dhabi) Tel +971 2 6994888
Germany (Cologne) - Turkey (Istanbul) - India (Mumbai)
Call +971 7 204 1111 Visit wwwrakftzcom Join rakftz
IndiaCOUNTRy FOCUS
wwwthecfomecom 15
$791bTotal trade between India and the UAE in lsquo13
64Expected growth of Indiarsquos economy in lsquo15
Indiarsquos debt market needs to attract stable investors over lsquobond touristsrsquo short term foreign flows evident in Indiarsquos bond markets
it is better placed than most to deal with the world post-quantitative easing Without the so-called lsquotaper tantrumrsquo investors in India might have focused more on the positives in 2013 But given the overall improvements in the economy and the political outlook we feel the India narrative will be harder to ignore in Q4
One of the most significant changes has been the appointment of Dr Raghuram Rajan as governor of the Reserve Bank of India (RBI)
last year He is clearly part of a dying breed of central banker that is one who actually knows how the world works He will make mistakes but the most important thing is that he will be trying to move India in the right direction as shown by his decision to continue with a hike in interest rates at the end of January Bond and currency markets have reacted very well to this move which shows the bank is now ahead of the curve in fighting inflation In October Rajan remarked that
Indiarsquos debt market needed to attract stable investors over lsquobond touristsrsquo a reference to the short-term foreign flows that have been evident in Indiarsquos bond markets His stance is an indication that policies could be shifted to attract more long-term stable money into Indiarsquos government bond markets away from a focus on the foreign-bank lsquoproprietaryrsquo investments that dominate flows currently
Indiarsquos current account deficit (CAD) was set to halve
STAT FACTS
IndiaCOUNTRy FOCUS
wwwthecfomecom16 wwwthecfomecom16
in the year ending March 2014 It was due to fall to 25 from 48 of GDP in 2013 The fall in gold imports alongside currency depreciation was a major contributing factor to this reduction Indiarsquos exports became more competitively priced over Q1 2014 which has led to higher exports in textiles chemicals and leather goods while the drop in the value of the rupee has also led to a fall in non-oilgold imports We expect the CAD to increase to around 3 of GDP for this financial year as gold import restrictions are removed a shift that should still be easily fundable Additionally the RBIrsquos FX reserves have increased by $34bn through the bank and non-resident Indian deposit swaps which was a much higher figure than anticipated This gives the RBI the additional firepower to intervene in the markets if it is necessary to counteract currency volatility In fact the
rupee has been remarkably stable since October and has steadily outperformed its other lsquofragilersquo emerging-market peers
There has also been an improvement in how other countries perceive India Net foreign direct investment is stable despite some negative sentiment driven by the outflows from the bond markets and banks Vodafone described by Rajan as lsquothe poster child for companies with difficulties in Indiarsquo is investing more in spectrum and also buying out minority operators In addition significant Japanese investment into Indiarsquos infrastructure is a further boost to the country and this relationship will be one to watch over the coming years
Overall the world has a much better impression of India than it did a few years ago when the country was facing significant obstacles In 2010 increasing inflation expanding fiscal deficits and an escalating CAD ndash all coupled with slowing growth rates ndash put India in a very difficult position But in 2012 the government realised that the current situation could not continue and since then there has been a much greater focus on reform
A mixture of poor growth and bad policies dramatically hampered Indiarsquos progress earlier this century frustrating many investors But the country is now beginning to drive a wedge between itself and the other more troubled emerging-market economies We feel
162KIndian tourists in Abu Dhabi yTD
Significant Japanese investment into Indiarsquos infrastructure is a further boost to the country and this relationship will be one to watch over the coming years
STAT FACTS
IndiaCOUNTRy FOCUS
wwwthecfomecomwwwthecfomecom 17
Population size 12 billion
Area 3287263km2
Type of government Federal republic
Official language Hindi
Capital city New Delhi
Largest city New Delhi
GDP (2012) $1825 trillion
Central government debt as a proportion of GDP 67
Currency Indian rupee
Conversion rate against the euro 0013
COUNTRy FILE
Hire a local manager or partner who has a very good
understanding of local rules and regulations
Have a longer-term investment horizon because the Indian rupee will remain
volatile for a while
donrsquot view volatility as a risk view the
integrity of the government and
management as a risk
Travel to India and feel the lsquomicrorsquo India
story rather than just read about the lsquomacrorsquo India story
Be patient and have realistic
expectations ndash things take time to work out in India
TOP TIPS FOR DOING BUSINESS IN INDIA
that these differences will mean that India significantly outperforms those economies over the coming years And while we might still be facing some turbulent times for India at least the dark clouds are beginning to break
As with any emerging-market economy the next few years will present challenges alongside opportunities and investors will have to
be comfortable with this state of affairs But India is committed to making the reforms it needs to improve its future The country has much better potential for growth than any developed country and it is also in a far better position than many of its emerging-market peers Now is the time to take advantage of all that India has to offer to investors
INNOvATIONrsquoS BOTTOm LINE Bill Chappell occupies a rare space as the CFO of Dubai Silicon Oasis a free zone dedicated to the development of technology across the emirate In the following interview he shares with CFO Magazine how far along technology has come in the UAE and why the figures are the most important aspect of his role as Chief Financial Officer
18
Cover StoryTECHNOLOGy
wwwthecfomecom
Dubai Silicon Oasis (DSO) occupies a vast 72 million square metre stretch of land in the northern reaches of the UAErsquos most globally recognised emirate Established in 2005 as a government-owned free zone devoted to the development of technology DSO has in the time since welcomed over 1087 companies into a space of which more than 59 of has been developed
Responsible for liaising with DSOrsquos companies both large and small whilst overseeing the free zonersquos balance sheet CFO Bill Chappell mans a unique station as a finance
executive with a keen eye for technological growth
ldquoIrsquove been with Dubai Silicon Oasis for nine years and my role is rather split I am the finance director but Irsquom also responsible
for our initiatives on technology incubation
and investment which is all very interestingrdquo
Chappell said Despite Chappellrsquos
years of experience in the technology industry granting him an imperatively strategic purview as CFO he makes clear what is most important as Chief Financial Officer
ldquoGetting the numbers right must always be the number one thing People talk about strategy and a number of other things but you must focus on the numbersrdquo
Chappell offered ldquoMy background is in technology companies for over ten years previous to coming here so I have a knowledge of technology which I brought to Dubai above all My overlap personally involves understanding technology whilst being a CFOrdquo
When Dubai Silicon Oasis first came into existence the area was undeveloped with no roads customers or residents Today the oasis acts as both a home for industry and residence whilst the Dubai Silicon Oasis Authority operates a number of services unique to companies which operate within the free zone A business incubation centre venture capital funding structure and various forms of entrepreneurial support are among DSOrsquos many aspects available to tenants
Said Chappell ldquoThere are three categories of companies at DSO There are smaller companies which deal more largely with our entrepreneur and incubator ecosystem The other extreme involves global firms such as Fujitsu or SAP and we look at their needs and make sure theyrsquore satisfied as customers They want our help to get setup And then there is the middle group and I meet them if they need my help as CFOrdquo
DSO counts SAP Porsche Fujitsu and Qordoba among its vast bank of companies
19
Cover StoryTECHNOLOGy
wwwthecfomecom
each of which are granted access to the Chappellrsquos well-honed expertise
ldquoBill has been involved in several meetings to gain updates about the company and offer input on what he thinks we should be focusing on whilst asking questions about our financial processes He also sits with the board on occasionrdquo said Loulou Khazen Baz founder of Nabbesh an online marketplace which connects professionals with work opportunities
ldquoDubai Silicon Oasis has been an important Investor at various stages of Nabbeshrsquos journey and a vital stamp of approval Our company has found priceless value in DSOrsquos support and the approachable nature of an involved CFO like Billrdquo
Chappell faces a number of challenges related to investment due to the region not ranking tech developments as high as traditional platforms such as real estate Additional concerns related to innovation have found themselves increasingly entering the CFOrsquos remit as related to encouraging ideas specific to the region Chappell is confident however that certain companies based in DSO are addressing these issues
ldquoIn this region one of my biggest challenges is getting people to understand
ldquoPeople talk about strategybut getting the numbers right must always be the number one thingrdquo
20 wwwthecfomecom
the complexities of tech Technology is a good investment class but the region is focused very much on real estate whilst the investment class of technology doesnrsquot rank as highrdquo said Chappell ldquoIn order to widen the general understanding we want to be developing solutions which address problems specific to the region We have one or two gems for example Qordoba a translation company which translates content in multiple languages The programme utilises artificial intelligence and as a result is getting smarter and smarter each time it is asked to translate so that it understands the meaning of what itrsquos translatingrdquo
Another key variable for DSO is centred on supporting
Dubairsquos goals based around becoming the worldrsquos capital for Islamic finance Chappell describes his role as CFO as one with ldquotwo thousand handsrdquo a multi-layered position which he seems to relish being held responsible for While DSO has grown tremendously in its near decade of existence the free zonersquos exuberant CFO sees lots more to come
Said Chappell ldquoI see us going from strength to strength Wersquove been in existence for nearly ten years When I joined it was empty desert Now we have over 1000 companies and an estimated 43000 living on site Within five years wersquoll also be further down the path and wersquoll be recognised for our contributions to the smart city and the Islamic economyrdquo
ldquoWithin five years wersquoll be further down the path and recognised for our contributions to the smart city and the Islamic economyrdquo
Dubai Silicon Oasis
headquarters
1080Companies in DSO
72millionDSOrsquos land mass in square metres
STAT FACTS
Cover StoryTECHNOLOGy
THE MIDDLE EAST ACCOUNTANCYAND FINANCE EXCELLENCE AWARDSWEDNESDAY 10 DECEMBER 2014AT THE JUMEIRAH BEACH HOTEL DUBAI
ACCOUNTING FOR EXCELLENCE
Once again the very best talent in the world of accountancy and fi nance will be celebrated by ICAEW at a stellar awards ceremony
ICAEW is a professional membership organisation supporting over 142000 chartered accountants around the world And on Wednesday 10 December 2014 at the Jumeirah Beach Hotel in Dubai wersquoll be recognising excellence in ten categories featuring Business Leader of the Year CFO of the Year Corporate Finance Deal of the Year and the Internal Audit Excellence Award
With an impressive line-up of speakers special guests and entertainment it all adds up to a trulymemorable evening
To submit a nomination or for more information visit icaewcommiddleeastawards
Nominations close on 1 October 2014
A WORLD LEADER OF THE ACCOUNTANCY AND FINANCE PROFESSION
400595_ICAEW_MiddleEast2014_Ad_NBAD_DEVERE_207x270_AW_3indd 1 27082014 1541
PROCUREMENTANALyTICS
wwwthecfomecom22
Return on Supply Management Assets (ROSMA) is a pioneering framework launched by AT Kearney after four years of testing one aimed at addressing the aforementioned procurement gaps The performance measurement standard was initiated with an eye on creating a benchmark for the procurement industry and providing a compass to direct investments
ldquoROSMA started in 2010 And it started out with conversations with the CFO There are a group of folks in the company talking about how great their achievements are however
the capital that procurement claims isnrsquot often obvious and can create a disconnect within the companyrdquo said AT Kearney Vice President Federico Mariscotti
This yearrsquos annual report surveyed a number of businesses and arrived at a series of significant findings which outline procurement patternsbull Top-tier companies generate
approximately $16 million in financial return per procurement employee yearly A reported 35 per cent of return derives from applying advanced methods
bull Mid-level performers typically
The first step for compa-nies in the Middle East is to take a good look at what they expect procurement to bring
Leading global management firm AT Kearney recently released a report on the evolving conversation which surrounds procurement A key aspect of the report spells out how much CFOs stand to gain by making more pronounced investments based on utilising procurement in terms of value The relative distance between CFOs and their respective companyrsquos procurement methods is cited as cause for concern
THE NEW LANGUAGE OF PROCUREmENT
generate four to five times of their investment in procurement valuation yet have not exemplified growth since 2011
bull Performers at the lowest level surveyed do not achieve monetary benefits which cover costs
bull The majority of organisations surveyed do not possess the tracking structures needed to analyse procurement performance
bull Regardless of company size or industry procurement
PROCUREMENTANALyTICS
wwwthecfomecom 23
The CFO community has not yet awakened to the value of procurement
performance varies though companies with sophisticated reporting techniques experience less variable performance
The reportrsquos express aim to create a benchmark for procurement follows a wave of process monitoring which found notice in the manufacturing industry in the 1980s supply chain research and engineering in the 1990s and sales and marketing performance being closely tracked in the 2000s
ldquoProcurement costs can represent anything from 20 to 90 of a companyrsquos total cost going from the public sector to consumer goods Yet the productivity of the team that presides over the supply market interactions has a way of explaining their value add using savings that do not add up to the PampL impact measured by finance Savings definitions different baselines and cost avoidance all contribute to a murky aggregate view of the impact on the businessrdquo added Mariscotti
In the Middle East the challenge is fundamental ndash getting the spend data in the first place Companies admit they often do not have a clear categorisation of intelligence lack an agreed definition of savings measurement and generally position procurement as a pre-eminently transactional activity lacking the mandate to contribute value Procurement processes as a result remain centred around purchasing are paper based and lack transparency The first step for companies in the Middle East is to take a good look at what they expect procurement to bring
wwwthecfomecom24
Influencedspend
The inconsequential The brand leaders
Leaning up
Note All three segments start with a common hypothetical spend of 1000 to normalize the case example
Source AT Kearney analysis
Source AT Kearney analysis
TOP QUARTILE
mIDDLE-TIER 50
BOTTOm QUARTILE
704
764
644
522
527
396
42
30
(138) (25)
(63)
19
39
28
15
21
4
3
60
32
18
Sourcedspend
Units of yield
Post-compliance
benefits
Additionalbenefits
Financial results
delivered
19x
17x
middle tier
bottom quartile
TOP-QUARTILE PERFORMERS DELIVER NEARLy TWICE AS MUCH VALUE AS MIDDLE-TIER PLAyERS
THE CFO COMMUNITy HAS NOT yET BEEN ldquoAWAKENEDrdquo TO THE VALUE OF PROCUREMENT
Procurement is not on the radar for those who gave the wrong answers to three essential questions
leadership with accountability for performance is clear but either the measures are not clear or performance is believed to be weak variable or unknown ndash or a mix
leaners and leaders answered all three essential questions correctly and also answered most or all other questions correctly
to the table and how it should support the business To make a steep change companies need to understand the multiple benefits which will occur for investments made once theyrsquove allowed for stronger procurement practices
The benchmarking aspects of ROSMArsquos report speak directly to CFOs based on an existing widespread inability to track and improve this often unquantifiable nature of procurement practices According to the report the CFO community has not yet awakened to the value of procurement and Chief Financial Officers are thus divided into three segments The brand leaders (25) those leaning up (63) the pack (774) and the inconsequential (138)
Said Mariscotti ldquoThis is a way to give procurement a measurable quality that CFOs can quantify You have to know what yoursquore doing with relation to procurement in order to do it well ROSMA gives you a number which helps you understand how good your procurement is working as compared to peers It lets you know whether or not you could be doing something differentrdquo offers Mariscotti
CFOs have exemplified an increasing ability to share in a companyrsquos strategic efforts whilst expand their respective remits Procurement is emerging as the latest segment of this conversation Understanding its value beyond the transactional is the first step for CFOs to fully engage with harnessing the potential of procurement and grow to become a part of the elusively paltry portion of brand leaders indicated in ROSMArsquos report
PROCUREMENTANALyTICS
The pack(774)
Al Sharid is the Vice Chairman of Emirates Transport and has enjoyed a successful career in which the lionrsquos share of his tenure has afforded him a seat at the helm of the business
ldquoI remember when I first received the GM of Tata in the late 80s he said to me lsquoYou are the youngest GM I have ever metrsquo I was 29 years old at the timerdquo Looking at Al Sharidrsquos rapid ascent to the top of his organisation can be mind boggling to the average observer however to those few who strive to push themselves to their limits it is perhaps more common a reality As with any top performer we can often see their desire for results and impact
early on in life and with Saeed the first stride of his race to the top began with an accounting degree in university
It was 1976 and the excitement of the UAErsquos biggest milestone moment its inception just five years earlier still clung to the air from Fujairah to Abu Dhabi and every emirate in between A nation was being built Saeed had just finished high school and went to the United States where he was to study engineering
ldquoI was not yet 18 years old it was 1976 and I was sent to America to study it was the beginning of a dream and a young liferdquo says Al Sharid Unfortunately Al Sharidrsquos academic tour of duty came to
THE EmIRATI DREAm Saeed Al Sharid is today an elder statesman in the world of UAE accountancy With decades of know-how based on chairing a number of key Emirati organisations Al Sharid is today atop his own family firm In the following exclusive interview he shares the importance of education the evolution of a nation and just how being an accountant has driven his many triumphs
an abrupt halt when his father suddenly passed and he was forced to return home ldquoWe are seven brothers and I am the middle one so during tough times we always come together and during this period the strength of my family pulled me through I have three younger brothers and I felt I had to be there for them I felt responsible for them My mother played an omnipotent role in pulling us through this dark moment in our history The death of my father forced us to become more independentrdquo says Al Sharid
Now back in the UAE with his plans of studying abroad dashed Saeed looked at the local schooling system within which Al
26
InterviewPERSONALITIES
wwwthecfomecom
Saeedrsquos desire for results took its first stride with an accounting degree in university
By Shane phillips
27
InterviewPERSONALITIES
wwwthecfomecom
Ain University had just opened ldquoAl Ain University was the pride of the Emirate at the time the students were like celebrities The first batch of graduates were all promised 50000 AED from HRH Sheikh Zayed I was one year late so technically I should not have graduated with the first batch but I was determined I worked an extra course load did summer school and soon caught up to the first class 50000 AED in 1981 was like 5000000 AED today so I was very motivatedrdquo says Al Sharid
Saeed not only caught up with the other students but he wound up graduating atop Al Ain Universityrsquos first class of graduates with a 38 GPA ldquoWe Saeed Al Sharid
28 wwwthecfomecom
to the organisationrdquo he says Saeed first joined Emirates Transport after seeing a small newspaper advertisement for an accountantrsquos position He applied but initially they did not want to hire a local because locals were too expensive After a few months however they called him back for an interview and offered him a job
Initially Saeed struggled to get a promotion or even a raise He worked tirelessly to develop himself and kept detailed notes of his work After nearly two years went by with no promotion he requested to meet with the Chairman of the corporation to discuss his career The Chairman was a Minister making him even more senior than his title implied Al Sharid was courageous and determined ldquoYou should not stay silent you have to take initiative your future is in your handsrdquo says Al Sharid
ldquoI met with the Chairman and told him about my work and what I wanted to do He did not talk he just listened and that was it It was a 15-minute meetingrdquo says Al Sharid Three days after Al Sharidrsquos pivotal appointment he was promoted to Deputy General Manager Directly from a Trainee to DGM skipping all the roles in between at the age of 27 years old They doubled his salary and catapulted him into a senior leadership role
ldquoI felt it was quite strange to move up that fast and personally was not sure I could handle the job I had a lot of resistance from the board I had people in their 50s reporting to me and they were not happy about it So I just took a step back and did not try to get involved in their work too fast I went slow and watched my step This was a very important
ldquoThe UAE was a brand new country and a lot of work was being done to develop the nationrdquo
never had any idea of a career path and there was no such thing as career counsellors or lsquocareer servicesrsquo at the school So when you graduated most people just joined the Ministries The UAE was a brand new country and a lot of work was being done to develop the nation The Federal Government paid the highest and so one just joined them There was no grand vision or dream that I was off and chasing In those times you simply tried to do the next best thing So I ended up working in the Ministry of Health as an accountant Back then a university degree was a veritable qualification and it had a lot of market equity today it wonrsquot even get you in the doorrdquo
As the Middle East market evolves not only are university degrees becoming more common but so are post graduate degrees such as MBAs and even PhDs As such the competitive positioning of professional qualifications are gradually eroding over time
ldquoTo stay competitive executives today will require deep and specialised knowledge of their respective industries an intellectual arbitrage that provides superior results To beat the market to manage the risks to develop a sustained competitive edge For this executives need to stay in a role for the full strategic cycle which is at least four years in durationrdquo says Sharid In the case of Al Sharid he was there for 33 years
ldquoDo you just want a job or are you looking to make a contribution to your company Too many young people today are just looking for a title or a position The difference between those who make it into senior roles and stay there is the desire to create impact to add value
InterviewPERSONALITIES
2012year Moodyrsquos upgraded the UAE economy from developing to emerging
37The UAErsquos global rank for GDP
STAT FACTS
moment for me to gain valuable leadership experience early on To make my learning curve even steeper the General Manager quit after two years and I became the GM at the age of 29 years oldrdquo explains Al Sharid
He ascended to the top job in less than five years and stayed in the position for almost twenty years He was totally committed and could even be found in the bus yard at four in the morning to greet the drivers as they started their shifts ldquoThe key to being successful in business is to keep your finger on the details Some people let the details slip and if this happens you will suffer I get into the yard I meet the drivers I meet all the staff If you saw us you will not know who was the GM or who was the driver You have to realise people will never work for you they will only work with you To me Emirates Transport is like my familyrdquo says Al Sharid
When asked what his keys to success are he says ldquoI think if I was not an accountant I would not be a good leader I would not be a good manager In my opinion trying to do business while not understanding accounting is like getting into the ocean and not knowing how to swim you will drown The Chief Executive Officer who does not know how to create the financial statements is always at the mercy of his Chief Financial Officer He cannot take any big decision on his own and he will not even be able to challenge the CFO Accounting is the bedrock of any business and a critical skill set for any leader No one can argue with this factrdquo says Al Sharid
With over 20 years of experience in tow and the related chairmanships to boot Al Sharid
ldquoTrying to do business while not understanding accounting is like getting into the ocean and not knowing how to swim you will drownrdquo
has since early last year partnered with his family to form Al Sharid Auditing Though the Emirati youth is not as keen to pursue positions related to accountancy as Al Sharid was he feels that there is hope to close the gap
ldquoIt is difficult to find an Emirati expert I studied the audit market specifically and there were others like me then But now you break Emirati auditing involvement into three categories The first involves the big firms This is followed by individual smaller enterprises But thirdly a lot of locals opt to work with the government also Most are not managing their own firms they just have a partnership and they are building thatrdquo Al Sharid explains
ldquoAl Sharid Auditing however is a firm that includes my brother and our two sons which make up a body of qualified professional auditors We established this firm last year and work closely with the government We decided to make one firm together instead of having many smaller entitiesrdquo
Moving forward Al Sharid plans to grow his familyrsquos firm by applying the very belief system which has catapulted him to his position of power Marketing concerns which are designed to furthermore announce how tailored Al Sharidrsquos offerings are at present a key variable to forging ahead
Said Al Sharid ldquoMoving forward wersquore focusing more on the marketing of our firm Itrsquos a matter of not exactly expanding but going over the right deals The market is tough and the small jobs are easy but we donrsquot need them We donrsquot want to be in many rooms we want to be in the important onesrdquo
29wwwthecfomecom
InterviewPERSONALITIES
1UAErsquos rank among GCC nations for chosen hub of all major accountancy bodies
STAT FACTS
Latest insights from PwCrsquos 15th Annual Global CEO Survey revealed that 59 per cent of CEOs see emerging markets as more important than developed markets to their future What is making emerging markets such a pressing priority for C-suite executives Why are emerging markets increasingly grabbing headlines
Emerging markets are large fast-growing and ambitious markets best known for being the growth engines of todayrsquos global economy Research (1) suggests that emerging market countries are expected to amount for more than 60 per cent of global GDP growth ndash a clear indication of the wealth of opportunity they present
Understanding emerging marketsBased on estimates by the International Monetary Fund emerging economies are expected to grow two to three times faster in comparison to developed nations Explaining this fast-growth and the rise of these emerging markets an article on Forbescom details that ldquoduring the US housing crash and resulting credit crisis of 2008 world markets were saved from a total disaster thanks to the big emerging markets ndash mainly Brazil India and China The global credit crisis was one of the longest deepest and most painful in history It toppled Wall Street icons like Lehman
The following report explores emerging markets from West to East which are at the helm of economic development trade and innovation and highlights what their rising popularity means for the growth of your business
Brothers required government bailouts of bulge bracket banks and shocked the global economy with a deep economic recession and even a deeper crisis of confidence Its most important legacy though may be one that has yet to fully unfold the crisis revealed a new world order in terms of economic and market dynamics Emerging market economies finally arrived as
30
Market IntelligenceANALyTICS
wwwthecfomecom
ENTERING EmERGING mARKETS STRATEgIES RISKS ANd OppORTuNITIES
Projected annual GDP growth 2014 amp 2015
PANAMA
67
PERU
RANK42
55
Projected annual GDP growth 2014 amp 2015
Ease of Doing Business
RANK55Ease of Doing
Business
TOP TEN MARKETS
(1) Source here Accenture Research ldquogearing up for growth ndash five imperatives for success in emerging markets 2011 Henry Egan and Armen Ovanessoff
31
Market IntelligenceANALyTICS
wwwthecfomecom
LATVIA
CZECH REP
MALAYSIA
THAILAND
SOUTH KOREA
CHINA
RANK75
41
21
50
45
35
74
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
CHILE
RANK 34
43
Projected annual GDP growth 2014 amp 2015
Ease of Doing Business
RANK 24Ease of Doing
Business
Ease of Doing Business
RANK 6Ease of Doing
Business
RANK18Ease of Doing
Business
RANK 7Ease of Doing
Business
RANK 96Ease of Doing
Business
POLAND
32
RANK45Ease of Doing
Business
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
Source httpwwwbloombergcomnews2014-01-29qatar-china-top-ranking-of-frontier-and-emerging-marketshtml
powerful essential and permanent contributors to global economic growth and sustainabilityrdquo
Bloombergcom recently ranked the top emerging markets based on their performance on 19 economic financial political and social indicators In order of ranking the top ten markets were
CHINA
SOUTH KOREA
MALAYSIA
CHILE
THAILAND
PANAMA
PERU
LATVIA
POLAND
CZECH REP
1 6
2 7
3 84 9
5 10
Market IntelligenceANALyTICS
32 wwwthecfomecom
Making an entryIf your business is looking to enter any of these emerging markets itrsquos worth considering the following checklist
1 Assess your readiness The biggest mistake you can make is to enter a market without proper evaluation of your business Donrsquot do it just because everyone else is Like every other major business decision be sure to speak to your Board of Directors partners investors stakeholders and most importantly your CFO and certified accountants Make a business plan enlisting your objectives goals investment strategy potential risks etc
2 Research research research Do your homework Treat emerging markets as any other international expansion venture and do thorough research on the new market ndash Who are the competitorsWhat is the price point for your product What are the customer demographics What kind of infrastructure do you need for the manufacturing production or distribution of your product
3 Understand the legal framework Emerging markets might not have rules and regulations as clearly spelled out as your home country Invest some time and money in understanding how business procedures work A very obvious area of focus for UAE-based companies is tax Since the UAE is a tax-free economy companies arenrsquot exposed to tax accounting and other legislation surrounding
ndash failing to adapt to the needs and expectations of the local customers is surely a recipe for failure Time and again companies havenrsquot been able to create a customised offer and have had to exit these markets with huge losses A success story however is that of the Haier Group Haier famously introduced washing machines to specifically suit the water pressure levels in the households of India ndash an emerging market strategy that worked very well in their favour and helped them become leaders in that sector Another great example is that of Coca-Cola as explained in an online Reuters article by Matt Reilly ldquoIn Brazil Coca-Cola has used social media to better understand consumer preferences and has developed a successful local network to supply traditional Coca-Cola products as well as fruit juices tailored to local tastesrdquo
7 Local currency This is a complex yet critical area to consider when entering a new market Ask yourself questions such as ndash What is the local currency rate How does it compare to the currency in your home country Is the country import-led or export-led and what impact can this have on the global value of the currency Remember that fluctuations in currency rates can hugely effect your overall investment and thereby the return on investment
8 Build partnerships When entering an unknown territory it is quite useful to have the backing and support of peers who can help you in case of unforeseen challenges This is
this Another area to consider is corruption ndash emerging markets are notorious for high corruption red-tape and bureaucracy Speak to your company lawyer to assess these areas and take proper measures to avoid them before-hand
4 Invest in local talent Working with people already accustomed to the new market avoids the hassle of relocation and reduces costs But more significantly gives you skilled talent to work in these unique environments This also works in favour of your company as it gives you a clear understanding of the kind of compensation packages you will have to offer to your employees For instance employees based in China might want high remuneration and low healthcare benefits while in India it may be quite the reverse Recruiting local talent will also have a trickledown effect ndash your employees will easily be able to cater to the local customer needs without the need for intense training
5 Supply chain 44 per cent of business leaders surveyed consider accessing the right supply chain capabilities extremely or challenging in emerging markets according to Deloittersquos Globalisation Survey Make sure that you know who your suppliers will be what the production costs are whether their production procedures fit your time constraints and if the final product matches your level of quality
6 Cater to local market demands This is one of the most important aspects of all
Do your homework Treat emerg-ing markets as any other internation-al expansion venture
Market IntelligenceANALyTICS
33wwwthecfomecom
the very reason why Mergers and Acquisitions are a popular way to enter into emerging markets Many companies piggyback on their clients who are entering these markets For instance if you are an IT consultancy working on a major project for a manufacturing and trading company with operations across India and China you can use their resources and expertise to explore opportunities in these countries
Remember to consider these steps every time you enter a
new market as every locality has its own set of unique needs One strategy doesnrsquot fit all
Surviving fierce market conditionsWhile the massive opportunity that lies within emerging markets paints a pretty picture businesses need to be wary of bottlenecks such as corruption volatility gaps in laws and regulations and strong competition There have been several high-profile cases of multinational companies withdrawing from emerging
markets owing to immense corruption pressures
There is also a high percentage of inherent risks in these markets which amount to many companies not succeeding in their first attempts It is important to take your time when adapting to these markets and fully understand the business dynamics Following recent case studies and going over the lessons learnt by multinational companies who have made an entry into these markets consider the below
bull Is your companyrsquos head-office ndash and senior management ndash located in your home country without any C-level representation in the new emerging market
bull Are you focusing all of your resources on doing business in the emerging market at the cost of losing profits in your home market
bull Have you researched local competitors in these markets who may already have a strong standing and proven models of success
bull Are you using the same ldquoentry approachrdquo and business model across different emerging markets
If your answer to one or more of these questions is yes it may be time to re-evaluate your presence in these markets and map out a different strategy
Finally remember that no matter what the outcome of your admission to these markets might be your business is sure to emerge out of this stronger tougher and ndash of course ndash ready for a new challenge
of companies believed they had invested more resources in
emerging markets than was required
entered a market without fully assessing the ability of the supply chain to support the expansion
entered with the wrong pricing model and an inappropriate
operating model
CONSIDER THE RISKS
48
24
20
There is also a high percentage of inherent risks take your time when adapt-ing to these markets and fully understand the business dynamics
Source Emerging markets expansion and the supply chain Economist Intelligence unit survey conducted on behalf of EY September 2010
34
CIMA INTERVIEW
wwwthecfomecom
The Chartered Institute of Management Accountantsrsquo (CIMA) Managing Director Andrew Harding visited Dubai to host the Institutersquos seminar on global management accounting principles In the wake of CIMA revising their well heralded syllabus Harding discussed with CFO Magazine what the newest edition held how CIMA is applying a digital focus to its courses and just how CFOs can gain from it all
CURATING CURRICULUm
35
CIMAINTERVIEW
wwwthecfomecom
can give CFOs something they can take and something they can measure their own management accounting services against They can benchmark using this and they can utilise this to see their progress
Part of that is having professional management accountant in place I donrsquot think the landscape matters I believe that there is a common business need wherever you may be around the globe
All of the emerging markets need these skills The first aspect that accounting schools teach is about auditing skills because theyrsquore interested in protecting investments Then they teach you how to keep your business sustainable and to have a sustainable business you need to have a management accountant in place So itrsquos not just here in the UAE where we see these demands we see the same demands in China Indonesia and other powerhouse economies We see their skills shortages and we see the need for solutions in those areas
Talk to me about how this new syllabus works to promote the evolution of a CFOThis syllabus that wersquove
Can you expound on just what can be found within the new CIMA syllabusWe just revised the syllabus we do that every four to five years What we have done this year is a very significant revision It is based from a complex study that we have carried out to over 3000 people from 200 companies globally It is the very first revision since the joint venture with CIMA and AICPA So this has allowed us to attain a syllabus rich with all the data from all the continents in the world For the first time wersquove had real involvement from companies in the USA in this project
Why is the collaboration between AICPA and CIMA significantMost important is the Chartered Global Management Accountant (CGMA) designation that AICPA and CIMA both issue for qualified management accountants Wersquoll have a common curriculum and common examination which will begin on January 1 which gives us a global designation for management accountants wherever they are around the world There are plenty of accounting bodies who claim to be global but actually this is the only
genuinely global designation This is because it has the only one with a North American participation in it So we can say that the CGMA will be just as well-recognised in the USA as it is in Dubai
With the global landscape in mind how do you create an even objective that applies to localities which may prove widely differentialThe landscapes are different but businesses have common needs wherever they may be What wersquove particularly seen since the global financial crisis is that companies are actively looking to build management accountant capability to build that capacity within their organisations They donrsquot want to have a poor quality of information that lacks insight being used in their businesses So they see management accountants can bring solutions to that As a result of all the work wersquove done with companies who participated in the syllabus wersquove also put together a series of what we call Global Accounting Principles This is a series of principles which describes what good management accounting looks like and what top quality management accounting in a company should be producing This then
ldquoCompanies are actively looking to build man-agement accountant capability to build that capacity within their organisa-tionsrdquo
36 wwwthecfomecom
worked on acknowledges the skill set needed by professionals throughout their career Therersquos a base level of competence that is needed but beyond that there is more There is business acumen the ability to communicate and influence and finally the ability to lead So you start off enhancing your raw technical accounting skills Then you need to place that into the context of the business that you are in Then as you move forward and as you rise to become the CFO yoursquoll need the others You have to learn how to present your work in a way that can influence and make an impact in the business The final piece is the ability to lead projects and other functions and to a great extent lead the board of directors Thatrsquos how the context works itrsquos not just about technical knowledge
How do you find that CFOs in the GCC region are responding to this programmeThe CFO has a real challenge on his hands now In 1975 80 per cent of corporate value is showing on the balance sheet By 2010 that dropped to less than 20 per cent Your traditional PampL reports no longer reflect the value of the business or how the business drives value
All things that should be of interest to investors is missing With things like the integrated report initiative wersquore starting to see the other dimensions that add value to business For CFOs thatrsquos all about strategic thinking and considering the long-term objectives Being articulate in implementing those strategies keeping in mind the risks and opportunities that the business faces We are also nowadays witnessing a whole new world of transparency around that
Are there electronic aspects to CIMArsquos advancing approachThe interactive case study simulates a real working situation and it tests how they can apply their knowledge in real life situations Theyrsquoll be presented with a scenario a few weeks before they take the exam so they can prepare for it They then go to an exam centre where they are asked questions about how they will deal with a certain situation in the real world Theyrsquoll get an email from the CFO giving them a certain task for a particular period of time We want to make it as close to reality as possible so students taking the exam will be assessing situations based on real life scenarios
ldquoThe CFO has a real challenge on his hands now as traditional PampL reports no longer reflect the value of the businessand [the role] must focus on strategic thinking and considering long-term objectivesrdquo
218KCIMA members worldwide
STAT FACTS
CIMA INTERVIEW
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
38
ERPANALyTICS
wwwthecfomecom
Faster more nuanced IT solutions are available to the modern day CFO Whilst Chief Financial Officers are called upon to analyse data across a number of spectrums the digital tools on hand are likewise being expanded to aid in focusing more squarely on the bottom line
ExCELLING WITH ERP
The global landscape is today firmly entrenched within a digital model As a result CFOs whom are called upon to take a larger role in a number of variables must also increase their abilities with respect to utilising the many upsides which tech innovations offer a business When surveyed about their most pressing concerns CFOs generally return a varying collection of responses Revenue growth regulatory changes and meeting quarterly goals are among the chief concerns Virtually every obstacle can be hurdled by way of maintaining the order of financial reporting and data which has long been
synonymous with the Chief Financial Officerrsquos remit A widening berth of ERP solutions is making this data all the easier to come by
Despite how sophisticated the market is today it was not long ago that ERP departments once spent days processing business reports
Said Rohan Tejura Assistant Vice President Focus Softnet ldquoTraditional ERP systems were solely data repositories Moreover these repositories werenrsquot real time and were incredibly dependent upon locational connectivity With the emergence of smarter development platforms more versatile devices and
39
ERPANALyTICS
wwwthecfomecom
more intuitive designs of system development the overall experience of the ERP now extends from data warehousing to reporting analysis trend mapping business intelligence and governance oriented capabilities Yet these solutions amazingly execute all of these deliverables via portable handheld devices and through cloud environmentsrdquo
New generation ERP systems must now be on the go whilst including up to the minute analytics to provide deeper insight into the business ERP Analytics tools use historical data captured from various business functions to provide valuable information for efficiency and business performance each incredibly priceless to a leading CFO
Finesse is an ERP provider which is continually addressing the transformation of output which the ERP industry is offering the equally transitioning role of CFO
ldquoWe provide end-to-end business management solutions to SMEs and Enterprises Our approach to ERP is much more than providing simply an operational management systemrdquo said Finesse COO Sunil Paul
ldquoWe believe that todayrsquos businesses need much more than integrating sales with inventory accounting and manufacturing but also to have seamless integration with all their sales channels including the point of sales ecommerce and inbound sales solutionsrdquo
A major im-petus of the ERP-cen-tered growth is based on how effec-tive com-prehensive real-time data proves to be for the CFO
40 wwwthecfomecom
before thereby creating new global benchmarks for overall economic growth
Microsoft Arabia CFO Sadrul Khan offered insight into just how far the knowledge economy has influenced regional financial leadership by explaining how one of the most prioritised technologies by CFOs in the region is social platform monitoring
ldquoOne of the five technology choices that CFOs tend to prioritise in boosting productivity efficiencies and faster decision making in the fast paced business environment which include a social platform that monitors trends customer sentiments and helps process mashable data for customer centricity and business growthrdquo said Khan
A major impetus of the ERP-centered growth is based on how effective comprehensive real-time data proves to be for the CFO Whether employed as on-premise ERP software-as-a-service or cloud-based solutions a nearly identical ethos is being utilised Allowing the CFO to quickly access the performance of all facets of a business is paying dividends in the boardroom a reality which is showing itself increasingly in the Middle East
The technologically-charged relationship between ERP solutions and the regionrsquos CFOs is expanding and as a result has catalysed what many see as GCC economic performance outstripping that of many economies outside of the region as a result
In order to compete in todayrsquos fiercely competitive environment organisations need to think both innovatively and out of the box They require more insights about their business and their customers and need to ensure that they are able to meet the expectations of their internal as well as external stakeholders Enormous amounts of data both structured and unstructured is continuously being generated within the internal and external systems of the organisation which if analysed can be of immense value both to the business and subsequently the stakeholders associated with the organisation
With the the era of CFOs labouring over spreadsheets now in the past given how many business frontiers have become so dependent on mobile options such as the cloud more and more tech companies are providing the regionrsquos CFOs with information technology that converts traditional internal and external data into rich visual insights This information is then used for faster decision making and provides the ability for a CFO to assess manage and control risks Regional CFOs have grown enabled to drive corporate strategy accordingly demonstrating how the knowledge economy is now in full force amongst the Gulfrsquos corporates
Given that advanced IT has now become a regular CFO tool the regionrsquos CFOs are subsequently making faster decisions and driving internal growth models with greater speed and agility than ever
Tech companies are providing the regionrsquos CFOs with information technology that converts traditional internal and external data into rich visual insights
ERPANALyTICS
Donrsquot discoveritrsquos counterfeittoner afteritrsquos too lateOriginal HP Toner works first time every time1 unlike cheap toners which fail over half of the people who try it2 Non-HP toner can compromise your printerrsquos performance to give you streaked blotchy or faded prints Only original HP Toner cartridges deliver unmatched quality for the most professional-looking prints 100 of the time1
1 A QualityLogic 2010 study commissioned by HP comparing original HP LaserJet Monochrome print cartridges with nine brands of non-HP toner cartridges available in Europe Middle East and Africa for the HP LaserJet P1505 and P4015 printers HP 36A and 64A For details see wwwqualitylogiccomEMEAmonotonertestpdf 2 From a 2012 EMEA Lyra Research study commissioned by HP Results based on a total of 1050 HP Color LaserJet users who have used both original HP and non-HP toner cartridges of whom 552 experienced problems with non-HP cartridges
copy 2014 Hewlett-Packard Development Company LP
42
Private Equity ANALyTICS
wwwthecfomecom
The rise of PE-backed acquisitions is forcing CFOs to develop an entirely new set of skills
THE PRIvATE EQUITy CFO
The CFOrsquos utility in the world of private equity is without question on the rise The once-held belief of the CFO existing solely as the ldquoaccounting guyrdquo has been abandoned Over the last 20 years the role of CFO has become more demanding - requiring not just finance and accounting acumen but also a financial literacy in corporate planning risk management MampA assetliability management and regulation This evolution has been driven by a number of
key factors Yet the private equity industry which is now reshaping the corporate landscape through active ownership is by far the most significant factor driving change within the role of the CFO
PE-backed buyers today represent a larger percentage of overall buyers in the corporate acquisition marketplace than ever before Data provider Prequin estimates that as of June 2014 the capital raised by PE funds that
has not yet been deployed amounts to $114 trillion globally The result of this ldquodry powderrdquo is that a vast quantity of corporate acquisitions in the coming years will be undertaken by the private equity industry As such CFOs will be more accountable to demanding ldquosmart moneyrdquo shareholders than at any point in recent history Budgeting accounting and financial reporting will no longer exist as sole priorities but as a core competency among a
ldquoBy effec-tively using real-time data CFOs can create a dynamic process that proac-tively drives performance account-ability and value crea-tionrdquo
By Aaron Heidari
43
Private Equity ANALyTICS
wwwthecfomecom
robust set of complimentary and required skills Most of all the bar for CFOs is rising as PE investors will only accept above-average performance from their management teams
CFOs were once more reactive in function setting budgets based on other executivesrsquo plans and managing the flow of reporting to shareholders on a quarterly and yearly basis Today CFOs are required to become proactive managers of their respective businesses alongside their C-suite compatriots using a granular data-driven approach to aggregate analyse implement and report on every aspect of a companyrsquos operations
An important tool to drive this value creation process are KPIs Yet KPI structures including both aggregation and output are generally not up to the standards required of private equity investors prior to an investment being made
ldquoThe benefits of using KPIs and monthly reporting packages are significant By effectively using real-time data that is actionable and by partnering with functional area leaders within the organisation company CFOs can create a dynamic process that proactively drives performance accountability and value creationrdquo said Amanda Robinson Vice President of Accordion International in Dubai a consulting firm which is comprised of former private equity and investment banking professionals who
MENA region Cumulative Funds Under Management Since 2008
Source Zawya private Equity Monitor
19 636 20 36321 586
22 64323 506 24 250
-
5000
10000
15000
20000
25000
2008 2009 2010 2011 2012 2013
Cu
mu
lati
ve f
un
ds
($ m
)
$15mAverage MENA PE investment size in lsquo13
50Percentage of investment in IT and energy sectors
STAT FACTS
44 wwwthecfomecom
work with companies to deliver cost-effective project execution services
Active shareholders whose money it is being spent will typically require a data-driven justification before approving any budgets capital expenditures or new acquisitions Furthermore in many private equity backed companies the use of debt and the matching of shorter-term bank financing with longer-term investments will only be considered after a robust analysis is conducted to understand the companyrsquos ability to service that debt in the future This evaluation is not simply to identify revenues expenses and profits Itrsquos about drilling down into every transaction and rooting out data processing and reporting At least that is the expectation
The most valuable CFOs are those who have the ability not just to scrutinise and understand the financials but all also possess a wider grasp of the underlying data which truly comprise the business As an investor who has just acquired a stake in a new business I want a CFO who can manage the transition and stay ahead of my expectations Most of all a CFO should impress upon the companyrsquos shareholders a new way of doing business The first 100 days of an acquisition are said to be the most important During this period the CFOrsquos worth will be established when the new financial plan is due and the platform for the next five years of growth is presented
A CFO should man-age the tran-sition stay ahead of expectations and impress upon the companyrsquos shareholders a new way of doing business
Investment Volume By Sector Since 2006
Investment Volume By Sector in 2013
Source Zawya private Equity Monitor
1
3
30
17
3
28
3
4
6
4
6
5
17
9
9
6
9
5
8
6
6
2
3
10
Education
Education
Information Technology
Information Technology
Other
Other
Telecoms
Telecoms
Media
Media
Transport
Transport
Oil amp Gas
Oil amp Gas
Healthcare
Healthcare
Consumer goods
Consumer goods
Food amp Beverages
Food amp Beverages
Leisure
Leisure
Manufacturing
Manufacturing
ANALyTICS
Private Equity
2000857 NBAD ratibi mag ad 200x268 Finalindd 1 92514 1017 AM
46 wwwthecfomecom
THE FUTURE OFACCOUNTING EDUCATIONAddRESSINg THECOMpETENCY CRISIS
Have you ever stopped to think about how the accounting profession has changed since you graduated from college Recent graduates can answer this question by reflecting on the last two or three years whereas for other more seasoned professionals answering this question requires a bit more thought and memory searching Indeed we can all think of ways that the field of accounting is remarkably different today from the one we likely envisioned during our college daysmdashregardless of which decade we each donned our cap and gown This gradual transformation of the accounting profession leads to two important questions related to competencies bull Which competencies are important for success inaccounting todaybull Were these competencies consciously developed as partof your accounting degree programme
We suspect that more than a few of you would answer ldquonordquo to the second question Put another way our profession may be facingmdashmore so than at any time in the pastmdasha ldquocompetency crisisrdquo that is a gap between the competencies needed for professional success and those taught in our college classrooms today We propose a three-pronged strategy or ldquogame planrdquo for overcoming this competency crisis and in turn better preparing accounting graduates for the challenging world they will face First all of us accountants need to understand the changes that have already taken place in our profession and perhaps more importantly anticipate the changes that are on the horizon Second we need to educate ourselves and future generations of accountants so that as a collective group we can deliver the expanding set of competencies demanded in todayrsquos dynamic organisational
contexts Third as professional organisations and as individuals we need to think beyond ourselves by asking How can I (or we) help the accounting profession address the competency crisis
A Shift Toward Integrated ThinkingMany articles and white papers have been written that describe in detail the changes that have occurred in our profession over the last few decades but for our purposes wersquod like to distill these changes down to one crucial idea How does the accounting function add value to an organisation Accountants have evolved from support-oriented personnel who hand off information to others who actually make decisions into business partners who ldquohave a seat at the tablerdquo with managers
By peter C Brewer James E Sorensen CpA CgMA and david E Stout
47wwwthecfomecom
1048576bull What regulatory risks mayaccompany the proposal
1048576bull What social and environmentalfactors will we face if for example the proposal requires investing in overseas operations
1048576bull What types of employeeresistance may arise if we implement the proposal and how will we overcome the root causes of any such resistance
1048576bull Can and how should we valuefuture options associated with the proposal such as expanding or contracting the investment over time as new information becomes available
1048576bull Should we use debt or equity tofund the proposal
In short accountants have evolved to become integrated thinkers who enable EPM by partnering with managers across the organisation to add value Yet as EPM has gradually become the centrepiece of our professionrsquos value proposition accounting education hasnrsquot done enough to embrace it To overcome this gap wersquod like to further suggest that the concepts of competency integration and EPM need to come ldquofront and centrerdquo as we move forward in educating the next generation of successful accounting practitioners
Accounting Education No Longer on the SidelinesRecently a task force consisting of members of IMAreg (Institute of Management Accountants) and members of the Management Accounting Section (MAS) of the American Accounting Association (AAA) addressed the competency issue How should accounting education change fundamentally to help close the competencies gap The efforts of the task force led to
cash flows and how to apply discounted cash flow (DCF) decision models such as net present value (NPV) is of foundationalmdashsome might say critical mdash importance But integrated thinkers draw on an understanding of organisational strategy coupled with a broader set of competencies (beyond what might be considered technical or foundational knowledge) when making these types of decisions For example they consider how behavioural issues may influence the capital investment decision-making process Perhaps the financial estimates contained in the NPV analysis are too optimistic because the manager who prepared the numbers has a vested interest in seeing the project approved Decision makers also need to consider issues such as leasing vs buying a capital asset and the corresponding impacts on the financial statements and ratios that are tracked by investors and lenders What nonfinancial factors are associated with the proposed investment Add in the tax consequences of capital investment decisions coupled with the need to maintain internal control over any new business processes tied to these decisions and the need to think in an integrated fashion across a variety of accounting competencies becomes apparent
Furthermore becoming a true business partner with managers across the organisation requires more than simply integrating various accounting competencies It also means thinking like a business manager or a chief executive officer (CEO) Returning to the capital budgeting example an integrated thinker will ask questions such as
across the organisation Together they formulate and plan strategies then participate in collaborative decision-making processes that execute those strategies in a manner that adds stakeholder value Said another way accountants have evolved to become enterprise performance managers This shift in our orientation from a support function to an enterprise performance management (EPM) role has enormous implications for defining the determinants of success within our profession the most important of which involves becoming collaborators and ldquointegrated thinkersrdquo Take for example a common but important business decision process capital investment analysis Certainly technical knowledge regarding how to estimate relevant after-tax
48 wwwthecfomecom
expanding capital budgeting discussions to include financial statement impacts tax consequences and internal control issues integrates topical coverage across the External Reporting and Analysis Taxation Compliance and Planning and Assurance and Internal Control competencies shown in Figure 1
Third accounting curricula can incorporate a broader set of management competencies For example evaluating capital investment proposals from the perspectives of change management (Leadership) social and environmental issues (Ethics and Social Responsibility) regulatory concerns (Governance Risk and Compliance) and capital structure (Additional Core Business Competencies) brings a CEOrsquos perspective to the decision-making process
Fourth accounting curricula should include foundational competencies such as proficiency with spreadsheets and written and oral communication In the context of capital budgeting this may include asking students to use Microsoft Excel to perform a sensitivity analysis and then to present their findings to the entire class
Working to Fix the ProblemAt this point although you may agree with us that therersquos a competency crisis within the accounting profession you may be wondering What does this have to do with me What can my organisation do to help address this so-called competency crisis The answer a lot Practice partners and academic partners can help the accounting profession overcome the competency crisis That said letrsquos take a closer look at the role of practice partners first
improvement) and accounting competencies (external reporting and analysis planning analysis and control taxation compliance and planning information systems assurance and internal control and professional values ethics and attitudes) Of critical importance to the framework is the assumption that the set of competencies contained in Figure 1 would be developed and integrated over time through a blend of formal education (including continuing education) training and job experience
What levels of integrationmdashon the road to developing integrated thinkers in accountingmdashare possible First accounting educators can integrate within a single accounting competency So referring back to our capital budgeting discussion teaching computational models such as NPV analysis coupled with a review of various behavioural issues associated with capital investment decisions would be an example of integrating within the Planning Analysis and Control competency listed in Figure 1
Second professors can integrate across accounting competencies For example
a recently published article that contains a proposed framework for accounting education reproduced here as Figure 1 The framework is general in the sense that itrsquos meant to apply to all accounting students not subgroups based on career specialisation such as tax assurance services corporate finance and the like Itrsquos based on the idea that accounting educators can better prepare students to deliver our professionrsquos EPM value proposition through integrated competency-oriented curricula (For more see ldquoFocusing Accounting Curricula on Studentsrsquo Long-Run Careers Recommendations for an Integrated Competency-Based Framework for Accounting Educationrdquo in the May 2014 edition of Issues in Accounting Education)
A glance at Figure 1 reveals three levels of competencies foundational competencies (communication ability to leverage technology and analytical thinking and problem solving among others) broad management competencies (including leadership ethics and social responsibility and process management and
Proposed Competencies-based Framework for Accounting Education
FOUNDATIONALCOMPETENCIES
ACCOUNTING COMPETENCIES
BROAD MANAGEMENT COMPETENCIES
leadership
ExternalReportingamp Analysis
PlanningAnalysis
amp Control
TaxationComplianceamp Planning
InformationSystems
Assuranceamp InternalControl
ProfessionalValues Ethics
amp Attitudes
Communication
Quantitative
Interpersonal
Technological
Analytical Thinking ampProblem Solving
Ethics amp SocialResponsibility
ProcessManagement ampImprovement
GovernanceRisk amp
Compliance
AdditionalCore BusinessCompetencies
Although you may agree with us that therersquos a competency crisis within the account-ing profes-sion you may bewondering What does this haveto do with me
A practice partner should be or become a CMAreg (Certified Management Accountant) maintain professional certification by completing required Continuing Professional Education (CPE) hours and regularly read the IMA publications Strategic Finance and Management Accounting Quarterly
In addition there are a number of excellent resources that deal with topics covered in this article and that IMA makes available to its members
Strategic Finance PowerPacks(wwwimanetorg SFPowerPacks) These are resources focused on contemporary topics similar to those discussed earlier Current offerings include Risk Management Strategic Planning IT Skills amp Software and Internal Controls Each PowerPack includes a combination of resources such as research studies articles and links to webinars
Statements on Management Accounting (SMAs)(wwwimanetorgresources and_publicationsresearch_ studies_resourcesstatements on_management_accounting aspx) SMAs represent monographs classified into one of the following six categories Leadership Strategies and Ethics Technology Enablement Strategic Cost Management Business Performance Management Finance Governance Risk and Compliance and the Practice of Management Accounting Multiple items are available within each category For example the Practice of Management Accounting category includes (among other items)
49wwwthecfomecom
the Definition of Management Accounting and Implementing Shared Service Centres
Research Studies (wwwimanetorgresources_and_publicationsResearch_Studies_and_ResourcesAll_reportsaspx) The ldquoThoughtLeadershiprdquo section of IMArsquos website includes research covering a broad range of issues classified into seven categories For example under the ldquoGlobal Business Environmentrdquo category the following two research reports are available ldquoKey Differences Between IFRS and US GAAP Impact on Financial Reportingrdquo and ldquoCosting Methodologies and Cost Management Practices in the Peoplersquos Republic of Chinardquo
IMA Leadership Academy (www imanetorgprograms_events leadership_academyaspx) As described on the IMA website this programme is designed to assess a memberrsquos leadership status enhance that individualrsquos skills (principally through monthly webinars) and recognise leadership achievements These benefits are free to members
How You Can Make a Bigger Impact In addition to attending local regional and national IMA meetings consider inviting a small group of students to each chapter meeting This could be a wonderful (and relatively low-cost) option for mentoring aspiring accountants and finance professionals providing networking opportunities and introducing students to cutting-edge issues regarding the practice of management accounting Joining a university accounting
advisory group may be another way to influence the development of EPM in that institutionrsquos curriculum design
Other methods to enhance EPM in your organisation include (1) forming user groups within your company your local IMA chapter or your industry to review and share EPM experiences (2) encouraging advancement in the firm to be linked to EPM proficiency (3) focusing your companyrsquos recruiting efforts on candidates who display a background in andor understanding of EPM and (4) organising cross training within your company to enhance a mutual understanding of each otherrsquos respective roles
Finally visit the Competency CrisisTM website (http competencycrisisorg) set up by IMA to unite the accounting and finance constituencies professionals students employers academics and professorsmdashand explore competency issues through the lens of each stakeholder group The site is designed to ldquoencourage a discourse spur action and create a community dedicated to resolving the serious crisis of competency present in the professionrdquo Special sections of the website are devoted to educators students and employers professionals
Our Partners in Education Much like a practice partner an academic partner should be or become a CMA maintain professional accreditation by completing CPE hours and regularly read IMArsquos publications
Academic members of IMA can pursue and actively promote the CMA programme at their respective institutions
50 wwwthecfomecom
IMArsquos website contains helpful resources including an exam content overview content specification outlines for each of the two parts of the CMA exam and learning outcome statements The current exam covers some of the professional competencies represented in Figure 1 A summary of changes to exam content which will be effective in January 2015 is provided on the IMA website in News amp Media Relations which is located under ldquoAbout IMArdquo (See the press release dated March 24 2014) Other helpful resources include ldquoICMA Announces CMA Exam Content Changesrdquo in the April 2014 issue of Strategic Finance as well as ldquoManagement Accounting Career Readiness Shaping YOUR Curriculumrdquo
These forthcoming changes are based on the most recent IMA study of the knowledge and skills needed by management accountants from the view of CFOs controllers and other accountingfinance professionals from around the world
Also consider taking a group of your students to the IMA Student Leadership Conference held each November The Conference provides excellent networking opportunities for you your students and practicing professionals Students can learn firsthand from Conference presenters the challenges and opportunities facing finance and accounting professionals today
Moreover if your institution doesnrsquot currently have an IMA Student Chapter consider forming one One of the authors of this article David Stout reinstituted the student chapter at his school (Youngstown State University) after travelling with a group of his students to the IMA
Student Leadership Conference in Cleveland Ohio Through an IMA Student Chapter on campus students are able to work closely with a sponsoring local IMA chapter and bring to campus speakers who are experts in a wide range of topics including those discussed earlier in this article Each year student chapters compete for an Award of Excellence (AOE) and recognition as an Outstanding Student Chapter In addition IMA student members are able to engage in networking activities leadership training mentoring and community service programmesmdashall through their local chapter
You also might consider volunteering to serve as a Campus Advocate In this role yoursquoll represent IMA in all major matters of interest to your students (scholarship opportunities starting a student chapter mentoring and the like) and to your institution (for example leveraging IMA resources to advance the relevancy of the accounting curriculum use of educational case studies published in the IMA Educational Case Journal and access to IMArsquos ethics curriculum)
And if you havenrsquot yet done this ask IMA to endorse your accounting programme (information is available at www imanetorgeducator_resources indexaspx) This programme is designed to identify business curricula that meet the quality educational standards required to prepare students to earn the CMA designation Endorsement is based on an analysis of the curriculum and topics covered on the two-part CMA exam Currently 12 programmes have been endorsed
Finally if your school has an IMA Student Chapter consider participating in the annual IMA Student Case Competition where students are asked to propose a solution to a real world problem (Cases are solicited each year by Raef Lawson IMA VP of Research and Policy and IMA Professor in-Residence) Finalists make their presentations at IMArsquos Annual Conference amp Exposition before a set of judges consisting of accounting faculty members and practitioners Each year a new case is published in the August issue of Strategic Finance for students to use for that yearrsquos competition
Working TogetherIn this article we have summarised the changes that have affected the accounting profession and provided a competencies-based framework for guiding accounting educators in responding productively to those changes As a management accountant you know that implementing change in any organisation let alone within an entire profession never comes easily To be successful in overcoming our professionrsquos competency crisis IMArsquos practice and academic partners will need to assume leadership roles in defining enterprise performance management as the cornerstone of the accounting professionrsquos value proposition
This article was orginally published in the August 2014 issue of Strategic Finance It appears here with the permission of The Association of Accountants and financial professionals in Business
We need to educate ourselvesand future generations of account-ants so that as a collec-tive group we can deliver theexpanding set of com-petenciesdemanded in todayrsquos dynamicorgani-sational contexts
THE POWERFUL AND THRIFTY OFFICE ALL-ROUNDERS
The new ECOSYS M3560idn series will astound you With their print speeds of up to 60 pages per minute they are among the most productive A4 bw multifunctionals on the market We nevertheless managed to keep their ecological footprint and total cost of ownership impressively low by using our well-known ECOSYS technology and equipping the devices with our renowned long-life components The result Not only less waste and lower maintenance costs but also less hassle for you and all your colleagues You will also greatly appreciate the many customisation possibilities of the devices equipped with KYOCERArsquos open solution platform HyPAStrade as it allows you to tailor the device to your needs So yes we are proud of our new range of MFPs and can hardly wait to share their numerous benefits with you
For more information please contactKYOCERA Document Solutions Middle East | PB Box 500817 DubaiUAE | Tel +9714 4330 412 | Fax +9714 4231 944KYOCERA Document Solutions Europe BV - wwwkyoceradocumentsolutionseuKYOCERA Document Solutions Inc - wwwkyoceradocumentsolutionscom
52
ACCAINTERVIEW
wwwthecfomecom
GLOBAL By ASSOCIATION
across the region from our key employers and learning provider partners to our active and growing student and member base I want to understand their challenges and priorities and how ACCA can work with them to help support the economic success of the region
What can a CFO gain from working with ACCAThe ACCA qualification is about complete finance professionals For CFOs it brings the technical knowledge vital to business success complemented with the strategic management skills and ethical competence crucial to an organisationrsquos success As an organization ACCA in the UAE brings CFOs access to that local and global network of peers and expertise along with our leading research and insights that help them to keep up to date on the issues that matter most
Are there any initiatives in place to leverage the recently announced partnership with AAA
How are the ACCArsquos many years of activity being applied to the Middle EastACCA has now had a presence in the UAE for well over a decade During that time we have established strong relationships across the Middle East epitomised by the recent signing of our Strategic Partnership with AAA As a national body in choosing to partner with ACCA they recognised the local and global perspective we bring We are continuing to work with students members and employers across the Middle East to build their networks knowledge and business success through events research and insights and access to a growing number of online resources
Which initial priorities are among your key aims upon joining the organisationrsquos efforts in the UAEIn the first few months I hope to build on the success of the team in the UAE My priority will be to meet as many of our key stakeholders
The Association for Chartered Certified Accountants (ACCA) provides its services across a number of international borders The recent announcement of Lindsay Degouve de Nuncques as the new head of the Associationrsquos UAE chapter further exemplifies the ACCArsquos reach based on her previous work in the UK Nuncques shares here what she brings to the Middle East and just how globalisation has driven her ascent
53
ACCAINTERVIEW
wwwthecfomecom
The strategic partnership with AAA is the first of its kind in the region Students who complete the UAECA qualification will be entitled to both the AAA and ACCA designations and ACCA members in the UAE will also be eligible to apply for AAA membership This is a very exciting development in the market and together AAA and ACCA will be working to deliver maximum value to all our stakeholders from this partnership As we launch the UAECA qualification this activity will start in earnest
Which key industries will you be spotlighting in the Middle East in the months aheadOur experience of working across all sectors and levels of organisations globally gives ACCA a unique insight into all types of industries We will continue to be working with employers across the spectrum in the months ahead to help them gain the insight and make the connections that drive businesses to succeed at whatever they do
ldquoThe ACCA qualification is about complete finance professionals For CFOs it brings the technical knowledge vital to business success complemented with the strategic management skillsrdquo
54
Islamic FinanceMARKET OUTLOOK
wwwthecfomecom
In its 10th instalment the Forum is hosted in Dubai as a direct result of the UAErsquos increasing importance in the world of global Islamic finance
THE WORLD ISLAmIC ECONOmIC FORUm LANDS IN DUBAI
In Dubairsquos continued quest for leading the world across a range of spectrums the Emirate accelerated its desire to become the worldrsquos leading hub for Islamic finance by hosting the 10th installment of the World Islamic Economic Forum (WIEF) Delegates from dozens of countries attended to take part in a three-day event held at Madinat Jumeirah which rests alongside Dubairsquos gleaming coastline Held under the patronage of His Highness Sheikh Mohammed Bin Rashid Al Maktoum the
Vice President and Prime Minister of the UAE and Ruler of Dubai key speakers included The Honorary Dr Zeti Akhtar Aziz Governor of the Central Bank of Malaysia HE Kairat Kelimbetov Governor of the National Bank of Kazakhstan The Honorary Datorsquo Sri Mohd Najib Tun Abdul Razal Prime Minister of Malaysia and HE Xavier Bettel Prime Minister of the Grand Duchy of Luxembourg
Launched in 2006 in Malaysia WIEF has grown in tandem with the increased
Delegates from dozens of countries attended WIEF to take part in the three-day event
sophistication and reach of Islamic finance After a successful event in London in 2013 amidst increased interest in Islamic finance across Europe WIEF relocated to Dubai where the local business structure is keen to host halal finance
Said Hamad Buamim President and CEO Dubai Chamber of Commerce and Industry co-organisers of the event ldquo[The forum] is the start of a new chapter of cooperation between Dubai and the world as part of
55
Islamic FinanceMARKET OUTLOOK
wwwthecfomecom
Dubai Capital of Islamic Economy visionhellipestablishing a unified regulatory authority to provide the framework for standards across halal industries will significantly accelerate growth Likewise we need to see increased cooperation and partnership between the public and private sectors This is already happening with great success here in Dubairdquo
The order of global cooperation needed to facilitate growth across the Islamic finance world was more than apparent at WIEF based on how many differing nations were represented at the event The exhibitorrsquos hall was populated with a number of key Malaysian stands representative of the Southeast Asianrsquos ranking as the global leader in Islamic finance Also present were companies from Saudi Arabia also a key locality in the worldrsquos halal industries An interesting yet prescient presence was of attendees from South Korea a nation which is eager to participate in Islamic finance and will be hosting the WIEF Pyeongchang Roundtable in December 2014
ldquoGangwon is a province located in Korea which is very interested in new business opportunities Wersquove realised the strength of the Islamic economy and have come here with many different companies The first type is based in real estate investment We also have companies which want to export their products to the Islamic economy based on their halal qualities And Gangwon will also be hosting the Winter
ldquoKorea is very interested in the strength of the Islamic economy and wants to export its products based on their halal qualitiesrdquo
56 wwwthecfomecom
$247trillionProjected value of halal products industry in lsquo18
125Muslim percentage of global tourism expenditure
STAT FACTSOlympics in 2018 and are presently seeking investments for this as wellrdquo said Seong-hun Kim a member of Gangwon Province Governmentrsquos Export Support Team
Dubai proved to be an excellent place for the event considering how well the UAE is able to so regularly corral international cooperation A key sign of this was witnessed recently when Luxembourg now considered the third most important base for Islamic finance globally opened a finance office in Dubai International Finance Centre The European nation also opened a euro200 sukuk earlier this year which was quickly oversubscribed
The prime minister of Luxembourg offered the WIEF audience a riveting speech which detailed just how international the Forum has become whilst encouraging more of the world to support the growing influence of Islamic finance
Said Bettel ldquoWe need to innovate more economic partnerships for growth We sometimes need to reengineer relationships but also have to make sure these relationships remain sustainable Growth in one country also brings growth to others as long as this is guided by free market initiatives Free trade and free flow of capital combined with innovation leads to prosperity We have all gathered here in Dubai to explore the future of Islamic finance and Luxembourg is also a pioneer of Islamic finance in Europe The Islamic financial sector has a major role to play in continued global growthrdquo
The Islamic Corporation for the Development of the Private Sector (ICD) is based in the Kingdom of Saudi Arabia where it manages an international fund worth $2 billion half of which is available for subscription With shareholders in more than 50 countries and a sovereign sukuk fund recently launched in West Africa the ICDrsquos CEO Khaled M Al Aboodi attended WIEF this year excited to participate in the global event
How does the ICD approach its attendance at the World Islamic Economic ForumI think the Forum is one of the best places for discussing the financial issues of the OEC member countries It has been around for ten years and has grown to become a very important platform for discussion Wersquore here to attend and listen but also to network Itrsquos a great networking platform and a place to share views whilst letting everyone know what we have to offer
How has Islamic finance changed over the yearsOf course itrsquos growing in a large scale Some of it actually needs more support particularly with respect to regulatory frameworks Wersquore trying to partner with many international organisations like the IMF to try to provide support to countries to adapt regulation for Islamic finance Sukuk issuance is one of the biggest issues that needs to be addressed because there is a huge amount of liquidity in this arena Due to issues related to regulation sukuk issuance can be costly But with the regulation we are confident it will be on a level playing field with other forms of finance Compliance is a major area where more work can be done The Forum started with a roundtable on sukuk which shows how helpful WIEF has been over the years
What type of work does ICD do internationallyICD helped the government of Senegal to issue the first sovereign sukuk This was successfully issued last summer Progressing in this manner is something wersquod like to see continue across West Africa in order to utilise its resources with aiding development in the region in mind
QampA WITH KHALED M AL ABOODI CEO OF ICD
Islamic FinanceMARKET OUTLOOK
OFFICIAL SPONSORS
ENDORSED BY OFFICIAL HOST OFFICIAL
COMMUNICATIONS PARTNER
MEYDAN HOTEL DUBAI UAE19 - 20 NOVEMBER 2014
WOMENOMICSthe next emerging market
TAKE PART in making change happen UNITE with business and through leaders from across the globe
PARTICIPATE to the expansion of a modern and inclusive economy
58
Gautam PradhanINTERVIEW
wwwthecfomecom
SUCCESS BEyOND BOUNDARIES
in other management roles such as strategic decision making mentoring and leading efficiency and productivity across a range of other departments and functions as well as a being a catalyst in ensuring that the boardrsquos vision for the organisation is achieved
A significant percentage of NMDCrsquos shares are owned publicly Does the CFO play a role in balancing the interests of the shareholdersAs a CFO balancing the shareholdersrsquo interests is definitely part of my responsibility In order to achieve this goal there needs to be a careful evaluation of each decision while keeping the short-term and long-term goals of the company in mind At NMDC we actively implement a system where we utilise a balance scorecard as a method of ensuring that all our primary objectives are met yet at the same time continuously enhance our relationships with our shareholders
NMDC has completed various projects across the Emirates Are there plans to move abroadAs NMDC moves towards becoming an international player our strategic expansion plans are focused in areas within the GCC region and India In line with this strategy we opened
How has a company with such a unique set of deliverables grown so consistently over the yearsOur organisation strongly believes that the core to our strength is the people process and equipment A strategic decision led by our Board of Directors and the senior management has been implemented that required us to consistently invest in these three aspects to help expand our business beyond the territorial boundaries of the UAE and at the same time enhance what we can offer which is relevant to these segments We attribute our success to the efforts which every employee contributes We also strongly believe in the ldquoWe can make it happenrdquo principle The management raises the index of performance while setting SMART objectives within the organisation and encouraging the employees to achieve them
How has your position as the CFO changed over NMDCrsquos 35 years of operationAs the market evolves and business dynamics change my role as the CFO has become complex and more challenging A few years back I was mainly focused on bookkeeping accounting and other financial responsibilities such as arranging bank facilities But moving forward I became more involved
The UAE is progressively becoming a hub for world-class infrastructure The country has duly impressed the rest of the globe with noteworthy land developments showcased across the emirates Among the remarkable landscapes found in Abu Dhabi are the Corniche Beach Yas Island and Sir Baniyas Island Behind these successful projects is NMDC the dredging division of Abu Dhabi National Oil Company (ADNOC)
In an interview with CFO Magazine Gautam Pradhan Chief Financial Officer NMDC shares an exclusive look into the companyrsquos international blueprint for growth and his dynamic role as a strategic leader of one of the best in dredging and marine construction in the Middle East
59
Gautam PradhanINTERVIEW
wwwthecfomecom
branches in Qatar Bahrain Oman and India This has paid rich dividends recently as projects of strategic importance are bagged in Qatar and Bahrain Furthermore NMDC (UAE) has recently played a key role as a leader of an international consortium with Royal Boskalis Westminister (Netherlands) and Jan De Nul Group (Belgium) for the awarding of the Suez Canal Dredging project in Egypt Moving forward we have devised a strategic approach that will enable us to play a key role in the development of Indiarsquos marine infrastructure
What are the global strategies that are part of the CFOrsquos responsibilitiesAs CFO understanding the macro economic scenario risk analysis and mitigating those risks are all a part of my responsibilities I also have to have a proper comprehension
ldquoA few years back I was mainly focused on financial responsibilities moving forward I became more involved in strategic decision making mentoring and leading productivityrdquo
Gautam PradhanINTERVIEW
60 wwwthecfomecom
of the challenges faced by the company in terms of dealing with foreign contracts direct and indirect taxes and hedging and managing the integration process These are essential to enhance shareholders wealth and mitigate undue risk
How significant is accountancy for NMDC in its operations Why exactlyAccountancy is the lifeline of any company it does not only record the finances it also reflects the health of the organisation The MIS reports analysis trends and statistical information go a long way toward effectively providing
the diagnostic approach essential for the company
How have NMDCrsquos environmental activities helped the companyrsquos bottom lineNMDCrsquos work is well-synchronised with our environmental activities and specifically with nature Our activities are closely linked to sand and water and we view such activities with strategic importance Projects such as increasing water supply to mangroves and beach nourishment help us support the environmental activities while adding to our bottom line
ldquoAccountancy is the lifeline of any company it does not only record the finances it also reflects the health of the organisationrdquo
A burgeoning slice of Abu Dhabi coastline
The largest business awards
in the GCC30th November Dubai
nominate now at wwwstarsofbusinessawardscom
Stars of Business has become an iconic awards brand like no other in the region It recognizes the very best SMEs across 26 business categories Itrsquos universally respected as scientifically assessed and unimpeachably judged
327000 SMEs across the UAE$234 billion estimated total revenue of the SME sector4974 Awards entries in 20131856 Individual company applicants
Presenting Partner Strategic SME Partner Gold Sponsor Gold Sponsor VIP Hospitality Partner Supporting Partner
Trade Facilitator PartnerTrade Credit PartnerLogistics Partner
Institutional Partner Institutional Partner Event Partner
OrganiserPublisherMedia Partner Media PartnerPort Authority Partner
62
David Allen INTERVIEW
wwwthecfomecom
What went into completing your bestseller ndash Getting Things Done (GTD)After twenty years of researching developing and implementing a methodology for achieving stress-free productivity based upon
thousands of hours spent desk-side with
some of the best brightest and busiest people in the world I decided to write the manual for it Thatrsquos what Getting Things Done is
What are the five phases of mastering workflowIn order to get
any situation under control so
you can focus you will utilise these five
steps Whether yoursquore managing your kitchen
or your company you will need to collect and capture what has your attention clarify what if anything to do about it organise it according to what it means to you review and reflect upon it in relation to
Todayrsquos evolving CFO is often caught between the world of business set-up generating revenue managing employees and building strong company infrastructure When can things actually get done What can one do to boost productivity and master workflow World-renowned business coach David Allen has the answers
PRODUCTIvITy PRINCIPLES WITH
DAvID ALLEN
63
David Allen INTERVIEW
wwwthecfomecom
those are greatly subvertedHow does one maintain a fair balance between the time spent planning and actually getting things doneYou simply need to spend just the amount of time you need to to trust that what you are getting done is the right thing to be getting done in the moment It takes as long as it takes to get to that point Why would you do anything less
How can one apply your core productivity and workflow principles to todayrsquos technologically driven environmentThe principles and their techniques are system-independent Whether you have meaningful input from the Internet your smartphone or a conversation in the hall you must engage with it equally Technology has simply increased the flow of input and ease of distraction in your world
There is a lot of talk about how connected wersquove become and how connectivity is driving tremendous business growth Does connectivity actually come with its fair share of downsides
Connectivity is obviously a two-edged sword We can have intimate productive and creative interaction instantly with someone on the other side of the world and we can just as easily be distracted and seduced into those engagements when they may not be the best use of our attention and resources Donrsquot shoot the medium Itrsquos all simply bringing attention to your clarity of direction and priorities or lack thereof
Could you share a few quick tips with our readers to instantly boost productivityWrite everything down that has your attention Decide the very next actions required to get closure on all of them Any next actions that require less than two minutes do instantly Park reminders of everything else somewhere that yoursquoll see when you can do something about them
We are currently facing a massive information overload What are some basic principles you could suggest to mentally organise such large amounts of dataConstantly ask yourself Where am I going Whatrsquos important and rewarding to me Is this information
the whole and then engage your resources with intuitive trust
As a CFO how can you transfer efficient workflow management skills to your employees Itrsquos very difficult to legislate processes for individuals ndash you can really only hold them accountable for their results But if you are managing your own commitments and intersections with them with integrity and rigour it will automatically force your team to ldquostep up to the platerdquo in their own behaviours in order to meet your standards If you request their complete list of their company projects and they canrsquot produce it thatrsquos a sign theyrsquore not in control If they make a commitment to you that they havenrsquot kept thatrsquos data about their performance GTD is simply about good operational business practices
With so many planning and organising activities in your methodology is there a risk of losing spontaneity as a strategistThe reason for these best practices is to optimise freedom creativity and spontaneity Without them
ldquoBut if you are manag-ing your own com-mitments and intersec-tions with them with integrity and rigour it will automatical-ly force them to ldquostep up to the platerdquo in their own behaviours in order to meet your standardsrdquo
64 wwwthecfomecom
supporting that Park whatever you find potentially meaningful somewhere that is easy to access when needed
Being an entrepreneur is a non-stop job How do you ensure that you have an adequate work-life balance Pay attention to what has your attentionmdashwith regard to anything Your health relationships career finances etc Notice when something might be ldquooffrdquo and make good decisions about what you need to do to get it back ldquoonrdquo again
Does your work teach people to be efficient or effective In essence they are the same thing Effective choices are generated by efficiency on a higher level If you want to implement strategy most effectively it demands utilising your resources optimally which is efficiency
Does motivation actually improve quality of work or purely quantityDepends on the focus of the motivation You can be motivated to work harder and you can be motivated to work smarter
What is your favourite productivity mantra that
you implement in your day-to-day lifeUsing my own in-basket and note-taking devices to capture potentially meaningful and valuable ideas and soon afterwards clearing all of them out by deciding what to do about them if anything
Your books seminars and other work inspires many individuals and businesses Who is your personal inspiration or role model I have many about many different aspects of my life The only person though that I ultimately trust as my best guide is my higher self which I try to access as frequently and clearly as I can
Finally what advice would you give to current business owners and aspiring entrepreneurs looking to gain complete control of their life and businessCapture what has your attention clarify what you need to do about it to get it off your mind organise the inventory of all your commitments at all levels review and reflect on all of that regularly relax and trust your inner wisdom to engage with the most appropriate thing in the moment
ldquoIf you want to implement strategy most effectively it demands utilising your resources optimallyrdquo
David Allen INTERVIEW
APPSTECH TALK
wwwthecfomecom 65
mAxImISE BUSINESS lsquoON-THE-GOrsquo WITH THESE HANDy APPS
ipAd SpECIAL
SAMSUNG UNvEILS GALAxY NOTE EDGE
Network
AP
Display
OS
Camera
Video
Audio
Additional Features
GoogleMobile Services
Connectivity
Sensor
Memory
Dimension
Battery
The availability of service may differ by country All functionality features specifications and other product information provided in this document including but not limited to the benefits design pricing components performance availability and capabilities of the product are subject to change without notice or obligation
Samsung Galaxy Note Edge Product Specifications
25G (GSM GPRS EDGE) 850 900 1800 1900 MHz3G (HSPA + 42Mbps) 850 900 1900 2100 MHz4G (LTE Cat 4 15050Mbps) or 4G(LTE Cat 6 30050Mbps)May differ by country and carrier
27 GHz Quad-Core Processor
56 inch (1419mm) Quad HD+ Super AMOLED (2560 x 1440 + 160)
Android 44 (KitKat)
Rear Facing 16 Mega pixel Auto Focus camera with Smart OISFront Facing 37 Mega pixel camera with f19Rear Facing Camera HDR (Rich tone) Selective Focus Rear-cam Selfie Beauty face Virtual Tour Shot ShotampMore Dual CameraFront Facing Camera Selfie Wide Selfie
Codec H264 MPEG-4 H263 VC-1 WMV7 WMV8 Sorenson Spark MP43 VP8 Recording amp Playback up to UHD
Codec MP3 AACAAC+eAAC+ WMA AMR-NBWB Vorbis FLAC()() Ultra High Quality Audio (~192KHz 24 bit) support
Multi WindowUltra Power Saving ModeVoice Recorder (Normal Mode Interview Mode Meeting Mode Voice Memo)Download BoosterS Health 35Dynamic Lock ScreenBriefingEdge screen UX Revolving Interaction Immersive apps(Camera Video S Note)Ticker board Express me Quick Tools Night Clock etc
Chrome Drive Photos Gmail Google Google+ Google Settings Hangouts Maps Play Books Play Games Play Newsstand Play Movie amp TV Play Music Play Store Voice Search YouTube
WiFi 80211 abgnac (HT80) MIMO PCIeGPS GLONASS BeidouNFC Bluetoothreg v 41 (BLE ANT+)IR LED (Remote Control) USB20 MHL 30
Gesture Accelerometer Geo-magnetic Gyroscope RGB IR-LEDProximity Barometer Hall Sensor Finger Scanner UV Heart Rate Monitoring SpO2 (Dependent on market)
32 64 GB Internal memory + microSD slot (up to 128GB)3GB RAM
1513 x 824 x 83mm 174g
Standard battery Li-ion 3000 mAh Fast Charging (Adaptive Fast Charging amp QC20)
wwwthecfomecom66
APPSTECH TALK
AIR DISPLAY
SQUARE REGISTER
Using this app you can connect your iPad to your computer and use it as an additional screen While working on an important presentation or sales proposal you can extend or mirror your computer screen on your iPad This app is compatible with both Mac and Windows computers Note that to use this feature you have to install Air Display on your iPad and a separate free app on your computer The computer and iPad also need to be on the same Wi-Fi network in order to work in-sync
For Mac users the app allows you to connect to up to four screens ndash all at the same time
Apart from the ability to convert your iPad into a wireless display whatrsquos also attractive about this app is that it allows you to control your computer wirelessly using your iPad
This fantastic application can serve as a mobile point of sale for your business It allows you to accept credit card payments ndash including Visa MasterCard Discover and American Express A transaction fee of 275 is charged for every time you swipe a card The sale amount is transferred to your account within two working days
Once you download the app you can sign up and register for a unique card reader solution called the lsquoSquare Readerrsquo (this is free) Square Reader encrypts all card details and ensures that the transaction is secure Once you receive your Square Reader you can connect it to your device and are all set
The application also offers added features such as transaction history connecting to a receipt printer creating employee logins and more
AED 3699
PRICE
Free
PRICE
wwwthecfomecom 67
APPSTECH TALK
DOCUSIGNHave you ever been in a situation where your employees need you to urgently sign a contract but arenrsquot able to physically reach you in time DocuSign solves this problem with its easy-to-use eSignature feature In three easy steps you can sign important documents and securely send them to your intended recipient
First you have to import the document to your device ndash this could be from Dropbox Google Drive or another select applications You then place your signature or any other important legal information you need to include such as initials Once you have finished working on the document send it back via e-mail
Whatrsquos particularly great about DocuSign is the great emphasis it puts on security ndash so that users donrsquot have to worry about getting into any legal trouble
Use DocuSign and never miss a deadline again
Free for basic version
PRICE
MPAYAn initiative by the Dubai eGovernment Department mPay is a simple application that allows you to make important payments Once yoursquove signed up and entered your payment details you are good to go You can pay your Dubai Electricity and Water Authority (DEWA) bills Etisalat utility bills Dubai Police fines Recharge SALIK and much more
A handy feature is its lsquoauto-rechargersquo option which you can use to set automatic payments
Free
PRICE
Opinion CIMAPERSONALITIES
wwwthecfomecom68
NEW HORIZONSBy geetu Ahuja Head of gCC at CIMA
The days of the traditional accountant working within a small community in a small town in a small market have long gone CFOs are now being referred to as Chief Frontier Officers as they travel from market to market overseeing their offices overseas This new expanded role has distinct advantages for both the company and the CFO who gain new skills and new insights from foreign branches a single hand at the helm of many markets provides business perspectives on a global scale and benchmarks across the board
On a personal level working abroad also has huge importance Robert Walters the specialist professional recruitment consultancy recently conducted a survey
of almost 2200 employees across a variety of professions exploring a number of topics which ranged from working practices and attitudes to careers The results highlighted some notable trends particularly for finance professionals
In career progression for example the survey showed that 50 of all accountants see working abroad as either lsquoessentialrsquo or lsquoextremely usefulrsquo to furthering their prospects more than banking professionals lawyers and IT workers ndash a strong indication of how accounting professionals are thinking about their future either within their existing company or with opportunities elsewhere
Accountants with globally recognised qualifications obviously have a greater chance of gaining some experience abroad and the lsquoGen Yrsquo professionals in particular seem ready to pack their bags In a CIMA study conducted in the UK last year over a third of those seeking employment in the
next two years will prioritise opportunities abroad over those in their home countries many of them enticed by the career incentives offered by the Middle East
How quickly can they land what seems to be their dream job What are the realities It may be that the move is simply from one branch to another and the only significant difference is a view from the window but for those expanding rather than changing their roles we have seen a very real need for a depth and breadth of knowledge never needed before
As geographical boundaries are pushed ever-wider a CFOrsquos responsibilities are pushed with them For many finance executives the understanding of their own patch of land is no longer enough they now have to be aware of foreign markets up to speed with foreign trends and au fait with foreign laws There is a need for a new commercial awareness in geography as well as philosophy
As geographical boundaries are pushed ever-wider a CFOrsquos responsibilities are pushed with them
John vargheseQampA
wwwthecfomecom 69
BUSINESSSET UP YOUR
IN THE UNITED ARAB EMIRATES
TO
WAREHOUSESOFFICES INDUSTRIAL LANDFLEXI
Quick and easy company set-up
Less than an hour drive from Dubai
Complete cost-effective packages including licences and facilities
100 foreign ownership
Zero income and corporate taxes
Eligibility for UAE Residence Visa
BUSINESS SET-UP SOLUTIONS STARTING FROM AED 15000 (USD 4000)
RAK FREE TRADE ZONE PROVIDES
RAK Free Trade Zone Authority - Government of Ras Al KhaimahUAE (Ras Al Khaimah) Tel +971 7 2041111 (Dubai) Tel +971 4 7041875 (Abu Dhabi) Tel +971 2 6994888
Germany (Cologne) - Turkey (Istanbul) - India (Mumbai)
Call +971 7 204 1111 Visit wwwrakftzcom Join rakftz
IndiaCOUNTRy FOCUS
wwwthecfomecom16 wwwthecfomecom16
in the year ending March 2014 It was due to fall to 25 from 48 of GDP in 2013 The fall in gold imports alongside currency depreciation was a major contributing factor to this reduction Indiarsquos exports became more competitively priced over Q1 2014 which has led to higher exports in textiles chemicals and leather goods while the drop in the value of the rupee has also led to a fall in non-oilgold imports We expect the CAD to increase to around 3 of GDP for this financial year as gold import restrictions are removed a shift that should still be easily fundable Additionally the RBIrsquos FX reserves have increased by $34bn through the bank and non-resident Indian deposit swaps which was a much higher figure than anticipated This gives the RBI the additional firepower to intervene in the markets if it is necessary to counteract currency volatility In fact the
rupee has been remarkably stable since October and has steadily outperformed its other lsquofragilersquo emerging-market peers
There has also been an improvement in how other countries perceive India Net foreign direct investment is stable despite some negative sentiment driven by the outflows from the bond markets and banks Vodafone described by Rajan as lsquothe poster child for companies with difficulties in Indiarsquo is investing more in spectrum and also buying out minority operators In addition significant Japanese investment into Indiarsquos infrastructure is a further boost to the country and this relationship will be one to watch over the coming years
Overall the world has a much better impression of India than it did a few years ago when the country was facing significant obstacles In 2010 increasing inflation expanding fiscal deficits and an escalating CAD ndash all coupled with slowing growth rates ndash put India in a very difficult position But in 2012 the government realised that the current situation could not continue and since then there has been a much greater focus on reform
A mixture of poor growth and bad policies dramatically hampered Indiarsquos progress earlier this century frustrating many investors But the country is now beginning to drive a wedge between itself and the other more troubled emerging-market economies We feel
162KIndian tourists in Abu Dhabi yTD
Significant Japanese investment into Indiarsquos infrastructure is a further boost to the country and this relationship will be one to watch over the coming years
STAT FACTS
IndiaCOUNTRy FOCUS
wwwthecfomecomwwwthecfomecom 17
Population size 12 billion
Area 3287263km2
Type of government Federal republic
Official language Hindi
Capital city New Delhi
Largest city New Delhi
GDP (2012) $1825 trillion
Central government debt as a proportion of GDP 67
Currency Indian rupee
Conversion rate against the euro 0013
COUNTRy FILE
Hire a local manager or partner who has a very good
understanding of local rules and regulations
Have a longer-term investment horizon because the Indian rupee will remain
volatile for a while
donrsquot view volatility as a risk view the
integrity of the government and
management as a risk
Travel to India and feel the lsquomicrorsquo India
story rather than just read about the lsquomacrorsquo India story
Be patient and have realistic
expectations ndash things take time to work out in India
TOP TIPS FOR DOING BUSINESS IN INDIA
that these differences will mean that India significantly outperforms those economies over the coming years And while we might still be facing some turbulent times for India at least the dark clouds are beginning to break
As with any emerging-market economy the next few years will present challenges alongside opportunities and investors will have to
be comfortable with this state of affairs But India is committed to making the reforms it needs to improve its future The country has much better potential for growth than any developed country and it is also in a far better position than many of its emerging-market peers Now is the time to take advantage of all that India has to offer to investors
INNOvATIONrsquoS BOTTOm LINE Bill Chappell occupies a rare space as the CFO of Dubai Silicon Oasis a free zone dedicated to the development of technology across the emirate In the following interview he shares with CFO Magazine how far along technology has come in the UAE and why the figures are the most important aspect of his role as Chief Financial Officer
18
Cover StoryTECHNOLOGy
wwwthecfomecom
Dubai Silicon Oasis (DSO) occupies a vast 72 million square metre stretch of land in the northern reaches of the UAErsquos most globally recognised emirate Established in 2005 as a government-owned free zone devoted to the development of technology DSO has in the time since welcomed over 1087 companies into a space of which more than 59 of has been developed
Responsible for liaising with DSOrsquos companies both large and small whilst overseeing the free zonersquos balance sheet CFO Bill Chappell mans a unique station as a finance
executive with a keen eye for technological growth
ldquoIrsquove been with Dubai Silicon Oasis for nine years and my role is rather split I am the finance director but Irsquom also responsible
for our initiatives on technology incubation
and investment which is all very interestingrdquo
Chappell said Despite Chappellrsquos
years of experience in the technology industry granting him an imperatively strategic purview as CFO he makes clear what is most important as Chief Financial Officer
ldquoGetting the numbers right must always be the number one thing People talk about strategy and a number of other things but you must focus on the numbersrdquo
Chappell offered ldquoMy background is in technology companies for over ten years previous to coming here so I have a knowledge of technology which I brought to Dubai above all My overlap personally involves understanding technology whilst being a CFOrdquo
When Dubai Silicon Oasis first came into existence the area was undeveloped with no roads customers or residents Today the oasis acts as both a home for industry and residence whilst the Dubai Silicon Oasis Authority operates a number of services unique to companies which operate within the free zone A business incubation centre venture capital funding structure and various forms of entrepreneurial support are among DSOrsquos many aspects available to tenants
Said Chappell ldquoThere are three categories of companies at DSO There are smaller companies which deal more largely with our entrepreneur and incubator ecosystem The other extreme involves global firms such as Fujitsu or SAP and we look at their needs and make sure theyrsquore satisfied as customers They want our help to get setup And then there is the middle group and I meet them if they need my help as CFOrdquo
DSO counts SAP Porsche Fujitsu and Qordoba among its vast bank of companies
19
Cover StoryTECHNOLOGy
wwwthecfomecom
each of which are granted access to the Chappellrsquos well-honed expertise
ldquoBill has been involved in several meetings to gain updates about the company and offer input on what he thinks we should be focusing on whilst asking questions about our financial processes He also sits with the board on occasionrdquo said Loulou Khazen Baz founder of Nabbesh an online marketplace which connects professionals with work opportunities
ldquoDubai Silicon Oasis has been an important Investor at various stages of Nabbeshrsquos journey and a vital stamp of approval Our company has found priceless value in DSOrsquos support and the approachable nature of an involved CFO like Billrdquo
Chappell faces a number of challenges related to investment due to the region not ranking tech developments as high as traditional platforms such as real estate Additional concerns related to innovation have found themselves increasingly entering the CFOrsquos remit as related to encouraging ideas specific to the region Chappell is confident however that certain companies based in DSO are addressing these issues
ldquoIn this region one of my biggest challenges is getting people to understand
ldquoPeople talk about strategybut getting the numbers right must always be the number one thingrdquo
20 wwwthecfomecom
the complexities of tech Technology is a good investment class but the region is focused very much on real estate whilst the investment class of technology doesnrsquot rank as highrdquo said Chappell ldquoIn order to widen the general understanding we want to be developing solutions which address problems specific to the region We have one or two gems for example Qordoba a translation company which translates content in multiple languages The programme utilises artificial intelligence and as a result is getting smarter and smarter each time it is asked to translate so that it understands the meaning of what itrsquos translatingrdquo
Another key variable for DSO is centred on supporting
Dubairsquos goals based around becoming the worldrsquos capital for Islamic finance Chappell describes his role as CFO as one with ldquotwo thousand handsrdquo a multi-layered position which he seems to relish being held responsible for While DSO has grown tremendously in its near decade of existence the free zonersquos exuberant CFO sees lots more to come
Said Chappell ldquoI see us going from strength to strength Wersquove been in existence for nearly ten years When I joined it was empty desert Now we have over 1000 companies and an estimated 43000 living on site Within five years wersquoll also be further down the path and wersquoll be recognised for our contributions to the smart city and the Islamic economyrdquo
ldquoWithin five years wersquoll be further down the path and recognised for our contributions to the smart city and the Islamic economyrdquo
Dubai Silicon Oasis
headquarters
1080Companies in DSO
72millionDSOrsquos land mass in square metres
STAT FACTS
Cover StoryTECHNOLOGy
THE MIDDLE EAST ACCOUNTANCYAND FINANCE EXCELLENCE AWARDSWEDNESDAY 10 DECEMBER 2014AT THE JUMEIRAH BEACH HOTEL DUBAI
ACCOUNTING FOR EXCELLENCE
Once again the very best talent in the world of accountancy and fi nance will be celebrated by ICAEW at a stellar awards ceremony
ICAEW is a professional membership organisation supporting over 142000 chartered accountants around the world And on Wednesday 10 December 2014 at the Jumeirah Beach Hotel in Dubai wersquoll be recognising excellence in ten categories featuring Business Leader of the Year CFO of the Year Corporate Finance Deal of the Year and the Internal Audit Excellence Award
With an impressive line-up of speakers special guests and entertainment it all adds up to a trulymemorable evening
To submit a nomination or for more information visit icaewcommiddleeastawards
Nominations close on 1 October 2014
A WORLD LEADER OF THE ACCOUNTANCY AND FINANCE PROFESSION
400595_ICAEW_MiddleEast2014_Ad_NBAD_DEVERE_207x270_AW_3indd 1 27082014 1541
PROCUREMENTANALyTICS
wwwthecfomecom22
Return on Supply Management Assets (ROSMA) is a pioneering framework launched by AT Kearney after four years of testing one aimed at addressing the aforementioned procurement gaps The performance measurement standard was initiated with an eye on creating a benchmark for the procurement industry and providing a compass to direct investments
ldquoROSMA started in 2010 And it started out with conversations with the CFO There are a group of folks in the company talking about how great their achievements are however
the capital that procurement claims isnrsquot often obvious and can create a disconnect within the companyrdquo said AT Kearney Vice President Federico Mariscotti
This yearrsquos annual report surveyed a number of businesses and arrived at a series of significant findings which outline procurement patternsbull Top-tier companies generate
approximately $16 million in financial return per procurement employee yearly A reported 35 per cent of return derives from applying advanced methods
bull Mid-level performers typically
The first step for compa-nies in the Middle East is to take a good look at what they expect procurement to bring
Leading global management firm AT Kearney recently released a report on the evolving conversation which surrounds procurement A key aspect of the report spells out how much CFOs stand to gain by making more pronounced investments based on utilising procurement in terms of value The relative distance between CFOs and their respective companyrsquos procurement methods is cited as cause for concern
THE NEW LANGUAGE OF PROCUREmENT
generate four to five times of their investment in procurement valuation yet have not exemplified growth since 2011
bull Performers at the lowest level surveyed do not achieve monetary benefits which cover costs
bull The majority of organisations surveyed do not possess the tracking structures needed to analyse procurement performance
bull Regardless of company size or industry procurement
PROCUREMENTANALyTICS
wwwthecfomecom 23
The CFO community has not yet awakened to the value of procurement
performance varies though companies with sophisticated reporting techniques experience less variable performance
The reportrsquos express aim to create a benchmark for procurement follows a wave of process monitoring which found notice in the manufacturing industry in the 1980s supply chain research and engineering in the 1990s and sales and marketing performance being closely tracked in the 2000s
ldquoProcurement costs can represent anything from 20 to 90 of a companyrsquos total cost going from the public sector to consumer goods Yet the productivity of the team that presides over the supply market interactions has a way of explaining their value add using savings that do not add up to the PampL impact measured by finance Savings definitions different baselines and cost avoidance all contribute to a murky aggregate view of the impact on the businessrdquo added Mariscotti
In the Middle East the challenge is fundamental ndash getting the spend data in the first place Companies admit they often do not have a clear categorisation of intelligence lack an agreed definition of savings measurement and generally position procurement as a pre-eminently transactional activity lacking the mandate to contribute value Procurement processes as a result remain centred around purchasing are paper based and lack transparency The first step for companies in the Middle East is to take a good look at what they expect procurement to bring
wwwthecfomecom24
Influencedspend
The inconsequential The brand leaders
Leaning up
Note All three segments start with a common hypothetical spend of 1000 to normalize the case example
Source AT Kearney analysis
Source AT Kearney analysis
TOP QUARTILE
mIDDLE-TIER 50
BOTTOm QUARTILE
704
764
644
522
527
396
42
30
(138) (25)
(63)
19
39
28
15
21
4
3
60
32
18
Sourcedspend
Units of yield
Post-compliance
benefits
Additionalbenefits
Financial results
delivered
19x
17x
middle tier
bottom quartile
TOP-QUARTILE PERFORMERS DELIVER NEARLy TWICE AS MUCH VALUE AS MIDDLE-TIER PLAyERS
THE CFO COMMUNITy HAS NOT yET BEEN ldquoAWAKENEDrdquo TO THE VALUE OF PROCUREMENT
Procurement is not on the radar for those who gave the wrong answers to three essential questions
leadership with accountability for performance is clear but either the measures are not clear or performance is believed to be weak variable or unknown ndash or a mix
leaners and leaders answered all three essential questions correctly and also answered most or all other questions correctly
to the table and how it should support the business To make a steep change companies need to understand the multiple benefits which will occur for investments made once theyrsquove allowed for stronger procurement practices
The benchmarking aspects of ROSMArsquos report speak directly to CFOs based on an existing widespread inability to track and improve this often unquantifiable nature of procurement practices According to the report the CFO community has not yet awakened to the value of procurement and Chief Financial Officers are thus divided into three segments The brand leaders (25) those leaning up (63) the pack (774) and the inconsequential (138)
Said Mariscotti ldquoThis is a way to give procurement a measurable quality that CFOs can quantify You have to know what yoursquore doing with relation to procurement in order to do it well ROSMA gives you a number which helps you understand how good your procurement is working as compared to peers It lets you know whether or not you could be doing something differentrdquo offers Mariscotti
CFOs have exemplified an increasing ability to share in a companyrsquos strategic efforts whilst expand their respective remits Procurement is emerging as the latest segment of this conversation Understanding its value beyond the transactional is the first step for CFOs to fully engage with harnessing the potential of procurement and grow to become a part of the elusively paltry portion of brand leaders indicated in ROSMArsquos report
PROCUREMENTANALyTICS
The pack(774)
Al Sharid is the Vice Chairman of Emirates Transport and has enjoyed a successful career in which the lionrsquos share of his tenure has afforded him a seat at the helm of the business
ldquoI remember when I first received the GM of Tata in the late 80s he said to me lsquoYou are the youngest GM I have ever metrsquo I was 29 years old at the timerdquo Looking at Al Sharidrsquos rapid ascent to the top of his organisation can be mind boggling to the average observer however to those few who strive to push themselves to their limits it is perhaps more common a reality As with any top performer we can often see their desire for results and impact
early on in life and with Saeed the first stride of his race to the top began with an accounting degree in university
It was 1976 and the excitement of the UAErsquos biggest milestone moment its inception just five years earlier still clung to the air from Fujairah to Abu Dhabi and every emirate in between A nation was being built Saeed had just finished high school and went to the United States where he was to study engineering
ldquoI was not yet 18 years old it was 1976 and I was sent to America to study it was the beginning of a dream and a young liferdquo says Al Sharid Unfortunately Al Sharidrsquos academic tour of duty came to
THE EmIRATI DREAm Saeed Al Sharid is today an elder statesman in the world of UAE accountancy With decades of know-how based on chairing a number of key Emirati organisations Al Sharid is today atop his own family firm In the following exclusive interview he shares the importance of education the evolution of a nation and just how being an accountant has driven his many triumphs
an abrupt halt when his father suddenly passed and he was forced to return home ldquoWe are seven brothers and I am the middle one so during tough times we always come together and during this period the strength of my family pulled me through I have three younger brothers and I felt I had to be there for them I felt responsible for them My mother played an omnipotent role in pulling us through this dark moment in our history The death of my father forced us to become more independentrdquo says Al Sharid
Now back in the UAE with his plans of studying abroad dashed Saeed looked at the local schooling system within which Al
26
InterviewPERSONALITIES
wwwthecfomecom
Saeedrsquos desire for results took its first stride with an accounting degree in university
By Shane phillips
27
InterviewPERSONALITIES
wwwthecfomecom
Ain University had just opened ldquoAl Ain University was the pride of the Emirate at the time the students were like celebrities The first batch of graduates were all promised 50000 AED from HRH Sheikh Zayed I was one year late so technically I should not have graduated with the first batch but I was determined I worked an extra course load did summer school and soon caught up to the first class 50000 AED in 1981 was like 5000000 AED today so I was very motivatedrdquo says Al Sharid
Saeed not only caught up with the other students but he wound up graduating atop Al Ain Universityrsquos first class of graduates with a 38 GPA ldquoWe Saeed Al Sharid
28 wwwthecfomecom
to the organisationrdquo he says Saeed first joined Emirates Transport after seeing a small newspaper advertisement for an accountantrsquos position He applied but initially they did not want to hire a local because locals were too expensive After a few months however they called him back for an interview and offered him a job
Initially Saeed struggled to get a promotion or even a raise He worked tirelessly to develop himself and kept detailed notes of his work After nearly two years went by with no promotion he requested to meet with the Chairman of the corporation to discuss his career The Chairman was a Minister making him even more senior than his title implied Al Sharid was courageous and determined ldquoYou should not stay silent you have to take initiative your future is in your handsrdquo says Al Sharid
ldquoI met with the Chairman and told him about my work and what I wanted to do He did not talk he just listened and that was it It was a 15-minute meetingrdquo says Al Sharid Three days after Al Sharidrsquos pivotal appointment he was promoted to Deputy General Manager Directly from a Trainee to DGM skipping all the roles in between at the age of 27 years old They doubled his salary and catapulted him into a senior leadership role
ldquoI felt it was quite strange to move up that fast and personally was not sure I could handle the job I had a lot of resistance from the board I had people in their 50s reporting to me and they were not happy about it So I just took a step back and did not try to get involved in their work too fast I went slow and watched my step This was a very important
ldquoThe UAE was a brand new country and a lot of work was being done to develop the nationrdquo
never had any idea of a career path and there was no such thing as career counsellors or lsquocareer servicesrsquo at the school So when you graduated most people just joined the Ministries The UAE was a brand new country and a lot of work was being done to develop the nation The Federal Government paid the highest and so one just joined them There was no grand vision or dream that I was off and chasing In those times you simply tried to do the next best thing So I ended up working in the Ministry of Health as an accountant Back then a university degree was a veritable qualification and it had a lot of market equity today it wonrsquot even get you in the doorrdquo
As the Middle East market evolves not only are university degrees becoming more common but so are post graduate degrees such as MBAs and even PhDs As such the competitive positioning of professional qualifications are gradually eroding over time
ldquoTo stay competitive executives today will require deep and specialised knowledge of their respective industries an intellectual arbitrage that provides superior results To beat the market to manage the risks to develop a sustained competitive edge For this executives need to stay in a role for the full strategic cycle which is at least four years in durationrdquo says Sharid In the case of Al Sharid he was there for 33 years
ldquoDo you just want a job or are you looking to make a contribution to your company Too many young people today are just looking for a title or a position The difference between those who make it into senior roles and stay there is the desire to create impact to add value
InterviewPERSONALITIES
2012year Moodyrsquos upgraded the UAE economy from developing to emerging
37The UAErsquos global rank for GDP
STAT FACTS
moment for me to gain valuable leadership experience early on To make my learning curve even steeper the General Manager quit after two years and I became the GM at the age of 29 years oldrdquo explains Al Sharid
He ascended to the top job in less than five years and stayed in the position for almost twenty years He was totally committed and could even be found in the bus yard at four in the morning to greet the drivers as they started their shifts ldquoThe key to being successful in business is to keep your finger on the details Some people let the details slip and if this happens you will suffer I get into the yard I meet the drivers I meet all the staff If you saw us you will not know who was the GM or who was the driver You have to realise people will never work for you they will only work with you To me Emirates Transport is like my familyrdquo says Al Sharid
When asked what his keys to success are he says ldquoI think if I was not an accountant I would not be a good leader I would not be a good manager In my opinion trying to do business while not understanding accounting is like getting into the ocean and not knowing how to swim you will drown The Chief Executive Officer who does not know how to create the financial statements is always at the mercy of his Chief Financial Officer He cannot take any big decision on his own and he will not even be able to challenge the CFO Accounting is the bedrock of any business and a critical skill set for any leader No one can argue with this factrdquo says Al Sharid
With over 20 years of experience in tow and the related chairmanships to boot Al Sharid
ldquoTrying to do business while not understanding accounting is like getting into the ocean and not knowing how to swim you will drownrdquo
has since early last year partnered with his family to form Al Sharid Auditing Though the Emirati youth is not as keen to pursue positions related to accountancy as Al Sharid was he feels that there is hope to close the gap
ldquoIt is difficult to find an Emirati expert I studied the audit market specifically and there were others like me then But now you break Emirati auditing involvement into three categories The first involves the big firms This is followed by individual smaller enterprises But thirdly a lot of locals opt to work with the government also Most are not managing their own firms they just have a partnership and they are building thatrdquo Al Sharid explains
ldquoAl Sharid Auditing however is a firm that includes my brother and our two sons which make up a body of qualified professional auditors We established this firm last year and work closely with the government We decided to make one firm together instead of having many smaller entitiesrdquo
Moving forward Al Sharid plans to grow his familyrsquos firm by applying the very belief system which has catapulted him to his position of power Marketing concerns which are designed to furthermore announce how tailored Al Sharidrsquos offerings are at present a key variable to forging ahead
Said Al Sharid ldquoMoving forward wersquore focusing more on the marketing of our firm Itrsquos a matter of not exactly expanding but going over the right deals The market is tough and the small jobs are easy but we donrsquot need them We donrsquot want to be in many rooms we want to be in the important onesrdquo
29wwwthecfomecom
InterviewPERSONALITIES
1UAErsquos rank among GCC nations for chosen hub of all major accountancy bodies
STAT FACTS
Latest insights from PwCrsquos 15th Annual Global CEO Survey revealed that 59 per cent of CEOs see emerging markets as more important than developed markets to their future What is making emerging markets such a pressing priority for C-suite executives Why are emerging markets increasingly grabbing headlines
Emerging markets are large fast-growing and ambitious markets best known for being the growth engines of todayrsquos global economy Research (1) suggests that emerging market countries are expected to amount for more than 60 per cent of global GDP growth ndash a clear indication of the wealth of opportunity they present
Understanding emerging marketsBased on estimates by the International Monetary Fund emerging economies are expected to grow two to three times faster in comparison to developed nations Explaining this fast-growth and the rise of these emerging markets an article on Forbescom details that ldquoduring the US housing crash and resulting credit crisis of 2008 world markets were saved from a total disaster thanks to the big emerging markets ndash mainly Brazil India and China The global credit crisis was one of the longest deepest and most painful in history It toppled Wall Street icons like Lehman
The following report explores emerging markets from West to East which are at the helm of economic development trade and innovation and highlights what their rising popularity means for the growth of your business
Brothers required government bailouts of bulge bracket banks and shocked the global economy with a deep economic recession and even a deeper crisis of confidence Its most important legacy though may be one that has yet to fully unfold the crisis revealed a new world order in terms of economic and market dynamics Emerging market economies finally arrived as
30
Market IntelligenceANALyTICS
wwwthecfomecom
ENTERING EmERGING mARKETS STRATEgIES RISKS ANd OppORTuNITIES
Projected annual GDP growth 2014 amp 2015
PANAMA
67
PERU
RANK42
55
Projected annual GDP growth 2014 amp 2015
Ease of Doing Business
RANK55Ease of Doing
Business
TOP TEN MARKETS
(1) Source here Accenture Research ldquogearing up for growth ndash five imperatives for success in emerging markets 2011 Henry Egan and Armen Ovanessoff
31
Market IntelligenceANALyTICS
wwwthecfomecom
LATVIA
CZECH REP
MALAYSIA
THAILAND
SOUTH KOREA
CHINA
RANK75
41
21
50
45
35
74
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
CHILE
RANK 34
43
Projected annual GDP growth 2014 amp 2015
Ease of Doing Business
RANK 24Ease of Doing
Business
Ease of Doing Business
RANK 6Ease of Doing
Business
RANK18Ease of Doing
Business
RANK 7Ease of Doing
Business
RANK 96Ease of Doing
Business
POLAND
32
RANK45Ease of Doing
Business
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
Source httpwwwbloombergcomnews2014-01-29qatar-china-top-ranking-of-frontier-and-emerging-marketshtml
powerful essential and permanent contributors to global economic growth and sustainabilityrdquo
Bloombergcom recently ranked the top emerging markets based on their performance on 19 economic financial political and social indicators In order of ranking the top ten markets were
CHINA
SOUTH KOREA
MALAYSIA
CHILE
THAILAND
PANAMA
PERU
LATVIA
POLAND
CZECH REP
1 6
2 7
3 84 9
5 10
Market IntelligenceANALyTICS
32 wwwthecfomecom
Making an entryIf your business is looking to enter any of these emerging markets itrsquos worth considering the following checklist
1 Assess your readiness The biggest mistake you can make is to enter a market without proper evaluation of your business Donrsquot do it just because everyone else is Like every other major business decision be sure to speak to your Board of Directors partners investors stakeholders and most importantly your CFO and certified accountants Make a business plan enlisting your objectives goals investment strategy potential risks etc
2 Research research research Do your homework Treat emerging markets as any other international expansion venture and do thorough research on the new market ndash Who are the competitorsWhat is the price point for your product What are the customer demographics What kind of infrastructure do you need for the manufacturing production or distribution of your product
3 Understand the legal framework Emerging markets might not have rules and regulations as clearly spelled out as your home country Invest some time and money in understanding how business procedures work A very obvious area of focus for UAE-based companies is tax Since the UAE is a tax-free economy companies arenrsquot exposed to tax accounting and other legislation surrounding
ndash failing to adapt to the needs and expectations of the local customers is surely a recipe for failure Time and again companies havenrsquot been able to create a customised offer and have had to exit these markets with huge losses A success story however is that of the Haier Group Haier famously introduced washing machines to specifically suit the water pressure levels in the households of India ndash an emerging market strategy that worked very well in their favour and helped them become leaders in that sector Another great example is that of Coca-Cola as explained in an online Reuters article by Matt Reilly ldquoIn Brazil Coca-Cola has used social media to better understand consumer preferences and has developed a successful local network to supply traditional Coca-Cola products as well as fruit juices tailored to local tastesrdquo
7 Local currency This is a complex yet critical area to consider when entering a new market Ask yourself questions such as ndash What is the local currency rate How does it compare to the currency in your home country Is the country import-led or export-led and what impact can this have on the global value of the currency Remember that fluctuations in currency rates can hugely effect your overall investment and thereby the return on investment
8 Build partnerships When entering an unknown territory it is quite useful to have the backing and support of peers who can help you in case of unforeseen challenges This is
this Another area to consider is corruption ndash emerging markets are notorious for high corruption red-tape and bureaucracy Speak to your company lawyer to assess these areas and take proper measures to avoid them before-hand
4 Invest in local talent Working with people already accustomed to the new market avoids the hassle of relocation and reduces costs But more significantly gives you skilled talent to work in these unique environments This also works in favour of your company as it gives you a clear understanding of the kind of compensation packages you will have to offer to your employees For instance employees based in China might want high remuneration and low healthcare benefits while in India it may be quite the reverse Recruiting local talent will also have a trickledown effect ndash your employees will easily be able to cater to the local customer needs without the need for intense training
5 Supply chain 44 per cent of business leaders surveyed consider accessing the right supply chain capabilities extremely or challenging in emerging markets according to Deloittersquos Globalisation Survey Make sure that you know who your suppliers will be what the production costs are whether their production procedures fit your time constraints and if the final product matches your level of quality
6 Cater to local market demands This is one of the most important aspects of all
Do your homework Treat emerg-ing markets as any other internation-al expansion venture
Market IntelligenceANALyTICS
33wwwthecfomecom
the very reason why Mergers and Acquisitions are a popular way to enter into emerging markets Many companies piggyback on their clients who are entering these markets For instance if you are an IT consultancy working on a major project for a manufacturing and trading company with operations across India and China you can use their resources and expertise to explore opportunities in these countries
Remember to consider these steps every time you enter a
new market as every locality has its own set of unique needs One strategy doesnrsquot fit all
Surviving fierce market conditionsWhile the massive opportunity that lies within emerging markets paints a pretty picture businesses need to be wary of bottlenecks such as corruption volatility gaps in laws and regulations and strong competition There have been several high-profile cases of multinational companies withdrawing from emerging
markets owing to immense corruption pressures
There is also a high percentage of inherent risks in these markets which amount to many companies not succeeding in their first attempts It is important to take your time when adapting to these markets and fully understand the business dynamics Following recent case studies and going over the lessons learnt by multinational companies who have made an entry into these markets consider the below
bull Is your companyrsquos head-office ndash and senior management ndash located in your home country without any C-level representation in the new emerging market
bull Are you focusing all of your resources on doing business in the emerging market at the cost of losing profits in your home market
bull Have you researched local competitors in these markets who may already have a strong standing and proven models of success
bull Are you using the same ldquoentry approachrdquo and business model across different emerging markets
If your answer to one or more of these questions is yes it may be time to re-evaluate your presence in these markets and map out a different strategy
Finally remember that no matter what the outcome of your admission to these markets might be your business is sure to emerge out of this stronger tougher and ndash of course ndash ready for a new challenge
of companies believed they had invested more resources in
emerging markets than was required
entered a market without fully assessing the ability of the supply chain to support the expansion
entered with the wrong pricing model and an inappropriate
operating model
CONSIDER THE RISKS
48
24
20
There is also a high percentage of inherent risks take your time when adapt-ing to these markets and fully understand the business dynamics
Source Emerging markets expansion and the supply chain Economist Intelligence unit survey conducted on behalf of EY September 2010
34
CIMA INTERVIEW
wwwthecfomecom
The Chartered Institute of Management Accountantsrsquo (CIMA) Managing Director Andrew Harding visited Dubai to host the Institutersquos seminar on global management accounting principles In the wake of CIMA revising their well heralded syllabus Harding discussed with CFO Magazine what the newest edition held how CIMA is applying a digital focus to its courses and just how CFOs can gain from it all
CURATING CURRICULUm
35
CIMAINTERVIEW
wwwthecfomecom
can give CFOs something they can take and something they can measure their own management accounting services against They can benchmark using this and they can utilise this to see their progress
Part of that is having professional management accountant in place I donrsquot think the landscape matters I believe that there is a common business need wherever you may be around the globe
All of the emerging markets need these skills The first aspect that accounting schools teach is about auditing skills because theyrsquore interested in protecting investments Then they teach you how to keep your business sustainable and to have a sustainable business you need to have a management accountant in place So itrsquos not just here in the UAE where we see these demands we see the same demands in China Indonesia and other powerhouse economies We see their skills shortages and we see the need for solutions in those areas
Talk to me about how this new syllabus works to promote the evolution of a CFOThis syllabus that wersquove
Can you expound on just what can be found within the new CIMA syllabusWe just revised the syllabus we do that every four to five years What we have done this year is a very significant revision It is based from a complex study that we have carried out to over 3000 people from 200 companies globally It is the very first revision since the joint venture with CIMA and AICPA So this has allowed us to attain a syllabus rich with all the data from all the continents in the world For the first time wersquove had real involvement from companies in the USA in this project
Why is the collaboration between AICPA and CIMA significantMost important is the Chartered Global Management Accountant (CGMA) designation that AICPA and CIMA both issue for qualified management accountants Wersquoll have a common curriculum and common examination which will begin on January 1 which gives us a global designation for management accountants wherever they are around the world There are plenty of accounting bodies who claim to be global but actually this is the only
genuinely global designation This is because it has the only one with a North American participation in it So we can say that the CGMA will be just as well-recognised in the USA as it is in Dubai
With the global landscape in mind how do you create an even objective that applies to localities which may prove widely differentialThe landscapes are different but businesses have common needs wherever they may be What wersquove particularly seen since the global financial crisis is that companies are actively looking to build management accountant capability to build that capacity within their organisations They donrsquot want to have a poor quality of information that lacks insight being used in their businesses So they see management accountants can bring solutions to that As a result of all the work wersquove done with companies who participated in the syllabus wersquove also put together a series of what we call Global Accounting Principles This is a series of principles which describes what good management accounting looks like and what top quality management accounting in a company should be producing This then
ldquoCompanies are actively looking to build man-agement accountant capability to build that capacity within their organisa-tionsrdquo
36 wwwthecfomecom
worked on acknowledges the skill set needed by professionals throughout their career Therersquos a base level of competence that is needed but beyond that there is more There is business acumen the ability to communicate and influence and finally the ability to lead So you start off enhancing your raw technical accounting skills Then you need to place that into the context of the business that you are in Then as you move forward and as you rise to become the CFO yoursquoll need the others You have to learn how to present your work in a way that can influence and make an impact in the business The final piece is the ability to lead projects and other functions and to a great extent lead the board of directors Thatrsquos how the context works itrsquos not just about technical knowledge
How do you find that CFOs in the GCC region are responding to this programmeThe CFO has a real challenge on his hands now In 1975 80 per cent of corporate value is showing on the balance sheet By 2010 that dropped to less than 20 per cent Your traditional PampL reports no longer reflect the value of the business or how the business drives value
All things that should be of interest to investors is missing With things like the integrated report initiative wersquore starting to see the other dimensions that add value to business For CFOs thatrsquos all about strategic thinking and considering the long-term objectives Being articulate in implementing those strategies keeping in mind the risks and opportunities that the business faces We are also nowadays witnessing a whole new world of transparency around that
Are there electronic aspects to CIMArsquos advancing approachThe interactive case study simulates a real working situation and it tests how they can apply their knowledge in real life situations Theyrsquoll be presented with a scenario a few weeks before they take the exam so they can prepare for it They then go to an exam centre where they are asked questions about how they will deal with a certain situation in the real world Theyrsquoll get an email from the CFO giving them a certain task for a particular period of time We want to make it as close to reality as possible so students taking the exam will be assessing situations based on real life scenarios
ldquoThe CFO has a real challenge on his hands now as traditional PampL reports no longer reflect the value of the businessand [the role] must focus on strategic thinking and considering long-term objectivesrdquo
218KCIMA members worldwide
STAT FACTS
CIMA INTERVIEW
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
38
ERPANALyTICS
wwwthecfomecom
Faster more nuanced IT solutions are available to the modern day CFO Whilst Chief Financial Officers are called upon to analyse data across a number of spectrums the digital tools on hand are likewise being expanded to aid in focusing more squarely on the bottom line
ExCELLING WITH ERP
The global landscape is today firmly entrenched within a digital model As a result CFOs whom are called upon to take a larger role in a number of variables must also increase their abilities with respect to utilising the many upsides which tech innovations offer a business When surveyed about their most pressing concerns CFOs generally return a varying collection of responses Revenue growth regulatory changes and meeting quarterly goals are among the chief concerns Virtually every obstacle can be hurdled by way of maintaining the order of financial reporting and data which has long been
synonymous with the Chief Financial Officerrsquos remit A widening berth of ERP solutions is making this data all the easier to come by
Despite how sophisticated the market is today it was not long ago that ERP departments once spent days processing business reports
Said Rohan Tejura Assistant Vice President Focus Softnet ldquoTraditional ERP systems were solely data repositories Moreover these repositories werenrsquot real time and were incredibly dependent upon locational connectivity With the emergence of smarter development platforms more versatile devices and
39
ERPANALyTICS
wwwthecfomecom
more intuitive designs of system development the overall experience of the ERP now extends from data warehousing to reporting analysis trend mapping business intelligence and governance oriented capabilities Yet these solutions amazingly execute all of these deliverables via portable handheld devices and through cloud environmentsrdquo
New generation ERP systems must now be on the go whilst including up to the minute analytics to provide deeper insight into the business ERP Analytics tools use historical data captured from various business functions to provide valuable information for efficiency and business performance each incredibly priceless to a leading CFO
Finesse is an ERP provider which is continually addressing the transformation of output which the ERP industry is offering the equally transitioning role of CFO
ldquoWe provide end-to-end business management solutions to SMEs and Enterprises Our approach to ERP is much more than providing simply an operational management systemrdquo said Finesse COO Sunil Paul
ldquoWe believe that todayrsquos businesses need much more than integrating sales with inventory accounting and manufacturing but also to have seamless integration with all their sales channels including the point of sales ecommerce and inbound sales solutionsrdquo
A major im-petus of the ERP-cen-tered growth is based on how effec-tive com-prehensive real-time data proves to be for the CFO
40 wwwthecfomecom
before thereby creating new global benchmarks for overall economic growth
Microsoft Arabia CFO Sadrul Khan offered insight into just how far the knowledge economy has influenced regional financial leadership by explaining how one of the most prioritised technologies by CFOs in the region is social platform monitoring
ldquoOne of the five technology choices that CFOs tend to prioritise in boosting productivity efficiencies and faster decision making in the fast paced business environment which include a social platform that monitors trends customer sentiments and helps process mashable data for customer centricity and business growthrdquo said Khan
A major impetus of the ERP-centered growth is based on how effective comprehensive real-time data proves to be for the CFO Whether employed as on-premise ERP software-as-a-service or cloud-based solutions a nearly identical ethos is being utilised Allowing the CFO to quickly access the performance of all facets of a business is paying dividends in the boardroom a reality which is showing itself increasingly in the Middle East
The technologically-charged relationship between ERP solutions and the regionrsquos CFOs is expanding and as a result has catalysed what many see as GCC economic performance outstripping that of many economies outside of the region as a result
In order to compete in todayrsquos fiercely competitive environment organisations need to think both innovatively and out of the box They require more insights about their business and their customers and need to ensure that they are able to meet the expectations of their internal as well as external stakeholders Enormous amounts of data both structured and unstructured is continuously being generated within the internal and external systems of the organisation which if analysed can be of immense value both to the business and subsequently the stakeholders associated with the organisation
With the the era of CFOs labouring over spreadsheets now in the past given how many business frontiers have become so dependent on mobile options such as the cloud more and more tech companies are providing the regionrsquos CFOs with information technology that converts traditional internal and external data into rich visual insights This information is then used for faster decision making and provides the ability for a CFO to assess manage and control risks Regional CFOs have grown enabled to drive corporate strategy accordingly demonstrating how the knowledge economy is now in full force amongst the Gulfrsquos corporates
Given that advanced IT has now become a regular CFO tool the regionrsquos CFOs are subsequently making faster decisions and driving internal growth models with greater speed and agility than ever
Tech companies are providing the regionrsquos CFOs with information technology that converts traditional internal and external data into rich visual insights
ERPANALyTICS
Donrsquot discoveritrsquos counterfeittoner afteritrsquos too lateOriginal HP Toner works first time every time1 unlike cheap toners which fail over half of the people who try it2 Non-HP toner can compromise your printerrsquos performance to give you streaked blotchy or faded prints Only original HP Toner cartridges deliver unmatched quality for the most professional-looking prints 100 of the time1
1 A QualityLogic 2010 study commissioned by HP comparing original HP LaserJet Monochrome print cartridges with nine brands of non-HP toner cartridges available in Europe Middle East and Africa for the HP LaserJet P1505 and P4015 printers HP 36A and 64A For details see wwwqualitylogiccomEMEAmonotonertestpdf 2 From a 2012 EMEA Lyra Research study commissioned by HP Results based on a total of 1050 HP Color LaserJet users who have used both original HP and non-HP toner cartridges of whom 552 experienced problems with non-HP cartridges
copy 2014 Hewlett-Packard Development Company LP
42
Private Equity ANALyTICS
wwwthecfomecom
The rise of PE-backed acquisitions is forcing CFOs to develop an entirely new set of skills
THE PRIvATE EQUITy CFO
The CFOrsquos utility in the world of private equity is without question on the rise The once-held belief of the CFO existing solely as the ldquoaccounting guyrdquo has been abandoned Over the last 20 years the role of CFO has become more demanding - requiring not just finance and accounting acumen but also a financial literacy in corporate planning risk management MampA assetliability management and regulation This evolution has been driven by a number of
key factors Yet the private equity industry which is now reshaping the corporate landscape through active ownership is by far the most significant factor driving change within the role of the CFO
PE-backed buyers today represent a larger percentage of overall buyers in the corporate acquisition marketplace than ever before Data provider Prequin estimates that as of June 2014 the capital raised by PE funds that
has not yet been deployed amounts to $114 trillion globally The result of this ldquodry powderrdquo is that a vast quantity of corporate acquisitions in the coming years will be undertaken by the private equity industry As such CFOs will be more accountable to demanding ldquosmart moneyrdquo shareholders than at any point in recent history Budgeting accounting and financial reporting will no longer exist as sole priorities but as a core competency among a
ldquoBy effec-tively using real-time data CFOs can create a dynamic process that proac-tively drives performance account-ability and value crea-tionrdquo
By Aaron Heidari
43
Private Equity ANALyTICS
wwwthecfomecom
robust set of complimentary and required skills Most of all the bar for CFOs is rising as PE investors will only accept above-average performance from their management teams
CFOs were once more reactive in function setting budgets based on other executivesrsquo plans and managing the flow of reporting to shareholders on a quarterly and yearly basis Today CFOs are required to become proactive managers of their respective businesses alongside their C-suite compatriots using a granular data-driven approach to aggregate analyse implement and report on every aspect of a companyrsquos operations
An important tool to drive this value creation process are KPIs Yet KPI structures including both aggregation and output are generally not up to the standards required of private equity investors prior to an investment being made
ldquoThe benefits of using KPIs and monthly reporting packages are significant By effectively using real-time data that is actionable and by partnering with functional area leaders within the organisation company CFOs can create a dynamic process that proactively drives performance accountability and value creationrdquo said Amanda Robinson Vice President of Accordion International in Dubai a consulting firm which is comprised of former private equity and investment banking professionals who
MENA region Cumulative Funds Under Management Since 2008
Source Zawya private Equity Monitor
19 636 20 36321 586
22 64323 506 24 250
-
5000
10000
15000
20000
25000
2008 2009 2010 2011 2012 2013
Cu
mu
lati
ve f
un
ds
($ m
)
$15mAverage MENA PE investment size in lsquo13
50Percentage of investment in IT and energy sectors
STAT FACTS
44 wwwthecfomecom
work with companies to deliver cost-effective project execution services
Active shareholders whose money it is being spent will typically require a data-driven justification before approving any budgets capital expenditures or new acquisitions Furthermore in many private equity backed companies the use of debt and the matching of shorter-term bank financing with longer-term investments will only be considered after a robust analysis is conducted to understand the companyrsquos ability to service that debt in the future This evaluation is not simply to identify revenues expenses and profits Itrsquos about drilling down into every transaction and rooting out data processing and reporting At least that is the expectation
The most valuable CFOs are those who have the ability not just to scrutinise and understand the financials but all also possess a wider grasp of the underlying data which truly comprise the business As an investor who has just acquired a stake in a new business I want a CFO who can manage the transition and stay ahead of my expectations Most of all a CFO should impress upon the companyrsquos shareholders a new way of doing business The first 100 days of an acquisition are said to be the most important During this period the CFOrsquos worth will be established when the new financial plan is due and the platform for the next five years of growth is presented
A CFO should man-age the tran-sition stay ahead of expectations and impress upon the companyrsquos shareholders a new way of doing business
Investment Volume By Sector Since 2006
Investment Volume By Sector in 2013
Source Zawya private Equity Monitor
1
3
30
17
3
28
3
4
6
4
6
5
17
9
9
6
9
5
8
6
6
2
3
10
Education
Education
Information Technology
Information Technology
Other
Other
Telecoms
Telecoms
Media
Media
Transport
Transport
Oil amp Gas
Oil amp Gas
Healthcare
Healthcare
Consumer goods
Consumer goods
Food amp Beverages
Food amp Beverages
Leisure
Leisure
Manufacturing
Manufacturing
ANALyTICS
Private Equity
2000857 NBAD ratibi mag ad 200x268 Finalindd 1 92514 1017 AM
46 wwwthecfomecom
THE FUTURE OFACCOUNTING EDUCATIONAddRESSINg THECOMpETENCY CRISIS
Have you ever stopped to think about how the accounting profession has changed since you graduated from college Recent graduates can answer this question by reflecting on the last two or three years whereas for other more seasoned professionals answering this question requires a bit more thought and memory searching Indeed we can all think of ways that the field of accounting is remarkably different today from the one we likely envisioned during our college daysmdashregardless of which decade we each donned our cap and gown This gradual transformation of the accounting profession leads to two important questions related to competencies bull Which competencies are important for success inaccounting todaybull Were these competencies consciously developed as partof your accounting degree programme
We suspect that more than a few of you would answer ldquonordquo to the second question Put another way our profession may be facingmdashmore so than at any time in the pastmdasha ldquocompetency crisisrdquo that is a gap between the competencies needed for professional success and those taught in our college classrooms today We propose a three-pronged strategy or ldquogame planrdquo for overcoming this competency crisis and in turn better preparing accounting graduates for the challenging world they will face First all of us accountants need to understand the changes that have already taken place in our profession and perhaps more importantly anticipate the changes that are on the horizon Second we need to educate ourselves and future generations of accountants so that as a collective group we can deliver the expanding set of competencies demanded in todayrsquos dynamic organisational
contexts Third as professional organisations and as individuals we need to think beyond ourselves by asking How can I (or we) help the accounting profession address the competency crisis
A Shift Toward Integrated ThinkingMany articles and white papers have been written that describe in detail the changes that have occurred in our profession over the last few decades but for our purposes wersquod like to distill these changes down to one crucial idea How does the accounting function add value to an organisation Accountants have evolved from support-oriented personnel who hand off information to others who actually make decisions into business partners who ldquohave a seat at the tablerdquo with managers
By peter C Brewer James E Sorensen CpA CgMA and david E Stout
47wwwthecfomecom
1048576bull What regulatory risks mayaccompany the proposal
1048576bull What social and environmentalfactors will we face if for example the proposal requires investing in overseas operations
1048576bull What types of employeeresistance may arise if we implement the proposal and how will we overcome the root causes of any such resistance
1048576bull Can and how should we valuefuture options associated with the proposal such as expanding or contracting the investment over time as new information becomes available
1048576bull Should we use debt or equity tofund the proposal
In short accountants have evolved to become integrated thinkers who enable EPM by partnering with managers across the organisation to add value Yet as EPM has gradually become the centrepiece of our professionrsquos value proposition accounting education hasnrsquot done enough to embrace it To overcome this gap wersquod like to further suggest that the concepts of competency integration and EPM need to come ldquofront and centrerdquo as we move forward in educating the next generation of successful accounting practitioners
Accounting Education No Longer on the SidelinesRecently a task force consisting of members of IMAreg (Institute of Management Accountants) and members of the Management Accounting Section (MAS) of the American Accounting Association (AAA) addressed the competency issue How should accounting education change fundamentally to help close the competencies gap The efforts of the task force led to
cash flows and how to apply discounted cash flow (DCF) decision models such as net present value (NPV) is of foundationalmdashsome might say critical mdash importance But integrated thinkers draw on an understanding of organisational strategy coupled with a broader set of competencies (beyond what might be considered technical or foundational knowledge) when making these types of decisions For example they consider how behavioural issues may influence the capital investment decision-making process Perhaps the financial estimates contained in the NPV analysis are too optimistic because the manager who prepared the numbers has a vested interest in seeing the project approved Decision makers also need to consider issues such as leasing vs buying a capital asset and the corresponding impacts on the financial statements and ratios that are tracked by investors and lenders What nonfinancial factors are associated with the proposed investment Add in the tax consequences of capital investment decisions coupled with the need to maintain internal control over any new business processes tied to these decisions and the need to think in an integrated fashion across a variety of accounting competencies becomes apparent
Furthermore becoming a true business partner with managers across the organisation requires more than simply integrating various accounting competencies It also means thinking like a business manager or a chief executive officer (CEO) Returning to the capital budgeting example an integrated thinker will ask questions such as
across the organisation Together they formulate and plan strategies then participate in collaborative decision-making processes that execute those strategies in a manner that adds stakeholder value Said another way accountants have evolved to become enterprise performance managers This shift in our orientation from a support function to an enterprise performance management (EPM) role has enormous implications for defining the determinants of success within our profession the most important of which involves becoming collaborators and ldquointegrated thinkersrdquo Take for example a common but important business decision process capital investment analysis Certainly technical knowledge regarding how to estimate relevant after-tax
48 wwwthecfomecom
expanding capital budgeting discussions to include financial statement impacts tax consequences and internal control issues integrates topical coverage across the External Reporting and Analysis Taxation Compliance and Planning and Assurance and Internal Control competencies shown in Figure 1
Third accounting curricula can incorporate a broader set of management competencies For example evaluating capital investment proposals from the perspectives of change management (Leadership) social and environmental issues (Ethics and Social Responsibility) regulatory concerns (Governance Risk and Compliance) and capital structure (Additional Core Business Competencies) brings a CEOrsquos perspective to the decision-making process
Fourth accounting curricula should include foundational competencies such as proficiency with spreadsheets and written and oral communication In the context of capital budgeting this may include asking students to use Microsoft Excel to perform a sensitivity analysis and then to present their findings to the entire class
Working to Fix the ProblemAt this point although you may agree with us that therersquos a competency crisis within the accounting profession you may be wondering What does this have to do with me What can my organisation do to help address this so-called competency crisis The answer a lot Practice partners and academic partners can help the accounting profession overcome the competency crisis That said letrsquos take a closer look at the role of practice partners first
improvement) and accounting competencies (external reporting and analysis planning analysis and control taxation compliance and planning information systems assurance and internal control and professional values ethics and attitudes) Of critical importance to the framework is the assumption that the set of competencies contained in Figure 1 would be developed and integrated over time through a blend of formal education (including continuing education) training and job experience
What levels of integrationmdashon the road to developing integrated thinkers in accountingmdashare possible First accounting educators can integrate within a single accounting competency So referring back to our capital budgeting discussion teaching computational models such as NPV analysis coupled with a review of various behavioural issues associated with capital investment decisions would be an example of integrating within the Planning Analysis and Control competency listed in Figure 1
Second professors can integrate across accounting competencies For example
a recently published article that contains a proposed framework for accounting education reproduced here as Figure 1 The framework is general in the sense that itrsquos meant to apply to all accounting students not subgroups based on career specialisation such as tax assurance services corporate finance and the like Itrsquos based on the idea that accounting educators can better prepare students to deliver our professionrsquos EPM value proposition through integrated competency-oriented curricula (For more see ldquoFocusing Accounting Curricula on Studentsrsquo Long-Run Careers Recommendations for an Integrated Competency-Based Framework for Accounting Educationrdquo in the May 2014 edition of Issues in Accounting Education)
A glance at Figure 1 reveals three levels of competencies foundational competencies (communication ability to leverage technology and analytical thinking and problem solving among others) broad management competencies (including leadership ethics and social responsibility and process management and
Proposed Competencies-based Framework for Accounting Education
FOUNDATIONALCOMPETENCIES
ACCOUNTING COMPETENCIES
BROAD MANAGEMENT COMPETENCIES
leadership
ExternalReportingamp Analysis
PlanningAnalysis
amp Control
TaxationComplianceamp Planning
InformationSystems
Assuranceamp InternalControl
ProfessionalValues Ethics
amp Attitudes
Communication
Quantitative
Interpersonal
Technological
Analytical Thinking ampProblem Solving
Ethics amp SocialResponsibility
ProcessManagement ampImprovement
GovernanceRisk amp
Compliance
AdditionalCore BusinessCompetencies
Although you may agree with us that therersquos a competency crisis within the account-ing profes-sion you may bewondering What does this haveto do with me
A practice partner should be or become a CMAreg (Certified Management Accountant) maintain professional certification by completing required Continuing Professional Education (CPE) hours and regularly read the IMA publications Strategic Finance and Management Accounting Quarterly
In addition there are a number of excellent resources that deal with topics covered in this article and that IMA makes available to its members
Strategic Finance PowerPacks(wwwimanetorg SFPowerPacks) These are resources focused on contemporary topics similar to those discussed earlier Current offerings include Risk Management Strategic Planning IT Skills amp Software and Internal Controls Each PowerPack includes a combination of resources such as research studies articles and links to webinars
Statements on Management Accounting (SMAs)(wwwimanetorgresources and_publicationsresearch_ studies_resourcesstatements on_management_accounting aspx) SMAs represent monographs classified into one of the following six categories Leadership Strategies and Ethics Technology Enablement Strategic Cost Management Business Performance Management Finance Governance Risk and Compliance and the Practice of Management Accounting Multiple items are available within each category For example the Practice of Management Accounting category includes (among other items)
49wwwthecfomecom
the Definition of Management Accounting and Implementing Shared Service Centres
Research Studies (wwwimanetorgresources_and_publicationsResearch_Studies_and_ResourcesAll_reportsaspx) The ldquoThoughtLeadershiprdquo section of IMArsquos website includes research covering a broad range of issues classified into seven categories For example under the ldquoGlobal Business Environmentrdquo category the following two research reports are available ldquoKey Differences Between IFRS and US GAAP Impact on Financial Reportingrdquo and ldquoCosting Methodologies and Cost Management Practices in the Peoplersquos Republic of Chinardquo
IMA Leadership Academy (www imanetorgprograms_events leadership_academyaspx) As described on the IMA website this programme is designed to assess a memberrsquos leadership status enhance that individualrsquos skills (principally through monthly webinars) and recognise leadership achievements These benefits are free to members
How You Can Make a Bigger Impact In addition to attending local regional and national IMA meetings consider inviting a small group of students to each chapter meeting This could be a wonderful (and relatively low-cost) option for mentoring aspiring accountants and finance professionals providing networking opportunities and introducing students to cutting-edge issues regarding the practice of management accounting Joining a university accounting
advisory group may be another way to influence the development of EPM in that institutionrsquos curriculum design
Other methods to enhance EPM in your organisation include (1) forming user groups within your company your local IMA chapter or your industry to review and share EPM experiences (2) encouraging advancement in the firm to be linked to EPM proficiency (3) focusing your companyrsquos recruiting efforts on candidates who display a background in andor understanding of EPM and (4) organising cross training within your company to enhance a mutual understanding of each otherrsquos respective roles
Finally visit the Competency CrisisTM website (http competencycrisisorg) set up by IMA to unite the accounting and finance constituencies professionals students employers academics and professorsmdashand explore competency issues through the lens of each stakeholder group The site is designed to ldquoencourage a discourse spur action and create a community dedicated to resolving the serious crisis of competency present in the professionrdquo Special sections of the website are devoted to educators students and employers professionals
Our Partners in Education Much like a practice partner an academic partner should be or become a CMA maintain professional accreditation by completing CPE hours and regularly read IMArsquos publications
Academic members of IMA can pursue and actively promote the CMA programme at their respective institutions
50 wwwthecfomecom
IMArsquos website contains helpful resources including an exam content overview content specification outlines for each of the two parts of the CMA exam and learning outcome statements The current exam covers some of the professional competencies represented in Figure 1 A summary of changes to exam content which will be effective in January 2015 is provided on the IMA website in News amp Media Relations which is located under ldquoAbout IMArdquo (See the press release dated March 24 2014) Other helpful resources include ldquoICMA Announces CMA Exam Content Changesrdquo in the April 2014 issue of Strategic Finance as well as ldquoManagement Accounting Career Readiness Shaping YOUR Curriculumrdquo
These forthcoming changes are based on the most recent IMA study of the knowledge and skills needed by management accountants from the view of CFOs controllers and other accountingfinance professionals from around the world
Also consider taking a group of your students to the IMA Student Leadership Conference held each November The Conference provides excellent networking opportunities for you your students and practicing professionals Students can learn firsthand from Conference presenters the challenges and opportunities facing finance and accounting professionals today
Moreover if your institution doesnrsquot currently have an IMA Student Chapter consider forming one One of the authors of this article David Stout reinstituted the student chapter at his school (Youngstown State University) after travelling with a group of his students to the IMA
Student Leadership Conference in Cleveland Ohio Through an IMA Student Chapter on campus students are able to work closely with a sponsoring local IMA chapter and bring to campus speakers who are experts in a wide range of topics including those discussed earlier in this article Each year student chapters compete for an Award of Excellence (AOE) and recognition as an Outstanding Student Chapter In addition IMA student members are able to engage in networking activities leadership training mentoring and community service programmesmdashall through their local chapter
You also might consider volunteering to serve as a Campus Advocate In this role yoursquoll represent IMA in all major matters of interest to your students (scholarship opportunities starting a student chapter mentoring and the like) and to your institution (for example leveraging IMA resources to advance the relevancy of the accounting curriculum use of educational case studies published in the IMA Educational Case Journal and access to IMArsquos ethics curriculum)
And if you havenrsquot yet done this ask IMA to endorse your accounting programme (information is available at www imanetorgeducator_resources indexaspx) This programme is designed to identify business curricula that meet the quality educational standards required to prepare students to earn the CMA designation Endorsement is based on an analysis of the curriculum and topics covered on the two-part CMA exam Currently 12 programmes have been endorsed
Finally if your school has an IMA Student Chapter consider participating in the annual IMA Student Case Competition where students are asked to propose a solution to a real world problem (Cases are solicited each year by Raef Lawson IMA VP of Research and Policy and IMA Professor in-Residence) Finalists make their presentations at IMArsquos Annual Conference amp Exposition before a set of judges consisting of accounting faculty members and practitioners Each year a new case is published in the August issue of Strategic Finance for students to use for that yearrsquos competition
Working TogetherIn this article we have summarised the changes that have affected the accounting profession and provided a competencies-based framework for guiding accounting educators in responding productively to those changes As a management accountant you know that implementing change in any organisation let alone within an entire profession never comes easily To be successful in overcoming our professionrsquos competency crisis IMArsquos practice and academic partners will need to assume leadership roles in defining enterprise performance management as the cornerstone of the accounting professionrsquos value proposition
This article was orginally published in the August 2014 issue of Strategic Finance It appears here with the permission of The Association of Accountants and financial professionals in Business
We need to educate ourselvesand future generations of account-ants so that as a collec-tive group we can deliver theexpanding set of com-petenciesdemanded in todayrsquos dynamicorgani-sational contexts
THE POWERFUL AND THRIFTY OFFICE ALL-ROUNDERS
The new ECOSYS M3560idn series will astound you With their print speeds of up to 60 pages per minute they are among the most productive A4 bw multifunctionals on the market We nevertheless managed to keep their ecological footprint and total cost of ownership impressively low by using our well-known ECOSYS technology and equipping the devices with our renowned long-life components The result Not only less waste and lower maintenance costs but also less hassle for you and all your colleagues You will also greatly appreciate the many customisation possibilities of the devices equipped with KYOCERArsquos open solution platform HyPAStrade as it allows you to tailor the device to your needs So yes we are proud of our new range of MFPs and can hardly wait to share their numerous benefits with you
For more information please contactKYOCERA Document Solutions Middle East | PB Box 500817 DubaiUAE | Tel +9714 4330 412 | Fax +9714 4231 944KYOCERA Document Solutions Europe BV - wwwkyoceradocumentsolutionseuKYOCERA Document Solutions Inc - wwwkyoceradocumentsolutionscom
52
ACCAINTERVIEW
wwwthecfomecom
GLOBAL By ASSOCIATION
across the region from our key employers and learning provider partners to our active and growing student and member base I want to understand their challenges and priorities and how ACCA can work with them to help support the economic success of the region
What can a CFO gain from working with ACCAThe ACCA qualification is about complete finance professionals For CFOs it brings the technical knowledge vital to business success complemented with the strategic management skills and ethical competence crucial to an organisationrsquos success As an organization ACCA in the UAE brings CFOs access to that local and global network of peers and expertise along with our leading research and insights that help them to keep up to date on the issues that matter most
Are there any initiatives in place to leverage the recently announced partnership with AAA
How are the ACCArsquos many years of activity being applied to the Middle EastACCA has now had a presence in the UAE for well over a decade During that time we have established strong relationships across the Middle East epitomised by the recent signing of our Strategic Partnership with AAA As a national body in choosing to partner with ACCA they recognised the local and global perspective we bring We are continuing to work with students members and employers across the Middle East to build their networks knowledge and business success through events research and insights and access to a growing number of online resources
Which initial priorities are among your key aims upon joining the organisationrsquos efforts in the UAEIn the first few months I hope to build on the success of the team in the UAE My priority will be to meet as many of our key stakeholders
The Association for Chartered Certified Accountants (ACCA) provides its services across a number of international borders The recent announcement of Lindsay Degouve de Nuncques as the new head of the Associationrsquos UAE chapter further exemplifies the ACCArsquos reach based on her previous work in the UK Nuncques shares here what she brings to the Middle East and just how globalisation has driven her ascent
53
ACCAINTERVIEW
wwwthecfomecom
The strategic partnership with AAA is the first of its kind in the region Students who complete the UAECA qualification will be entitled to both the AAA and ACCA designations and ACCA members in the UAE will also be eligible to apply for AAA membership This is a very exciting development in the market and together AAA and ACCA will be working to deliver maximum value to all our stakeholders from this partnership As we launch the UAECA qualification this activity will start in earnest
Which key industries will you be spotlighting in the Middle East in the months aheadOur experience of working across all sectors and levels of organisations globally gives ACCA a unique insight into all types of industries We will continue to be working with employers across the spectrum in the months ahead to help them gain the insight and make the connections that drive businesses to succeed at whatever they do
ldquoThe ACCA qualification is about complete finance professionals For CFOs it brings the technical knowledge vital to business success complemented with the strategic management skillsrdquo
54
Islamic FinanceMARKET OUTLOOK
wwwthecfomecom
In its 10th instalment the Forum is hosted in Dubai as a direct result of the UAErsquos increasing importance in the world of global Islamic finance
THE WORLD ISLAmIC ECONOmIC FORUm LANDS IN DUBAI
In Dubairsquos continued quest for leading the world across a range of spectrums the Emirate accelerated its desire to become the worldrsquos leading hub for Islamic finance by hosting the 10th installment of the World Islamic Economic Forum (WIEF) Delegates from dozens of countries attended to take part in a three-day event held at Madinat Jumeirah which rests alongside Dubairsquos gleaming coastline Held under the patronage of His Highness Sheikh Mohammed Bin Rashid Al Maktoum the
Vice President and Prime Minister of the UAE and Ruler of Dubai key speakers included The Honorary Dr Zeti Akhtar Aziz Governor of the Central Bank of Malaysia HE Kairat Kelimbetov Governor of the National Bank of Kazakhstan The Honorary Datorsquo Sri Mohd Najib Tun Abdul Razal Prime Minister of Malaysia and HE Xavier Bettel Prime Minister of the Grand Duchy of Luxembourg
Launched in 2006 in Malaysia WIEF has grown in tandem with the increased
Delegates from dozens of countries attended WIEF to take part in the three-day event
sophistication and reach of Islamic finance After a successful event in London in 2013 amidst increased interest in Islamic finance across Europe WIEF relocated to Dubai where the local business structure is keen to host halal finance
Said Hamad Buamim President and CEO Dubai Chamber of Commerce and Industry co-organisers of the event ldquo[The forum] is the start of a new chapter of cooperation between Dubai and the world as part of
55
Islamic FinanceMARKET OUTLOOK
wwwthecfomecom
Dubai Capital of Islamic Economy visionhellipestablishing a unified regulatory authority to provide the framework for standards across halal industries will significantly accelerate growth Likewise we need to see increased cooperation and partnership between the public and private sectors This is already happening with great success here in Dubairdquo
The order of global cooperation needed to facilitate growth across the Islamic finance world was more than apparent at WIEF based on how many differing nations were represented at the event The exhibitorrsquos hall was populated with a number of key Malaysian stands representative of the Southeast Asianrsquos ranking as the global leader in Islamic finance Also present were companies from Saudi Arabia also a key locality in the worldrsquos halal industries An interesting yet prescient presence was of attendees from South Korea a nation which is eager to participate in Islamic finance and will be hosting the WIEF Pyeongchang Roundtable in December 2014
ldquoGangwon is a province located in Korea which is very interested in new business opportunities Wersquove realised the strength of the Islamic economy and have come here with many different companies The first type is based in real estate investment We also have companies which want to export their products to the Islamic economy based on their halal qualities And Gangwon will also be hosting the Winter
ldquoKorea is very interested in the strength of the Islamic economy and wants to export its products based on their halal qualitiesrdquo
56 wwwthecfomecom
$247trillionProjected value of halal products industry in lsquo18
125Muslim percentage of global tourism expenditure
STAT FACTSOlympics in 2018 and are presently seeking investments for this as wellrdquo said Seong-hun Kim a member of Gangwon Province Governmentrsquos Export Support Team
Dubai proved to be an excellent place for the event considering how well the UAE is able to so regularly corral international cooperation A key sign of this was witnessed recently when Luxembourg now considered the third most important base for Islamic finance globally opened a finance office in Dubai International Finance Centre The European nation also opened a euro200 sukuk earlier this year which was quickly oversubscribed
The prime minister of Luxembourg offered the WIEF audience a riveting speech which detailed just how international the Forum has become whilst encouraging more of the world to support the growing influence of Islamic finance
Said Bettel ldquoWe need to innovate more economic partnerships for growth We sometimes need to reengineer relationships but also have to make sure these relationships remain sustainable Growth in one country also brings growth to others as long as this is guided by free market initiatives Free trade and free flow of capital combined with innovation leads to prosperity We have all gathered here in Dubai to explore the future of Islamic finance and Luxembourg is also a pioneer of Islamic finance in Europe The Islamic financial sector has a major role to play in continued global growthrdquo
The Islamic Corporation for the Development of the Private Sector (ICD) is based in the Kingdom of Saudi Arabia where it manages an international fund worth $2 billion half of which is available for subscription With shareholders in more than 50 countries and a sovereign sukuk fund recently launched in West Africa the ICDrsquos CEO Khaled M Al Aboodi attended WIEF this year excited to participate in the global event
How does the ICD approach its attendance at the World Islamic Economic ForumI think the Forum is one of the best places for discussing the financial issues of the OEC member countries It has been around for ten years and has grown to become a very important platform for discussion Wersquore here to attend and listen but also to network Itrsquos a great networking platform and a place to share views whilst letting everyone know what we have to offer
How has Islamic finance changed over the yearsOf course itrsquos growing in a large scale Some of it actually needs more support particularly with respect to regulatory frameworks Wersquore trying to partner with many international organisations like the IMF to try to provide support to countries to adapt regulation for Islamic finance Sukuk issuance is one of the biggest issues that needs to be addressed because there is a huge amount of liquidity in this arena Due to issues related to regulation sukuk issuance can be costly But with the regulation we are confident it will be on a level playing field with other forms of finance Compliance is a major area where more work can be done The Forum started with a roundtable on sukuk which shows how helpful WIEF has been over the years
What type of work does ICD do internationallyICD helped the government of Senegal to issue the first sovereign sukuk This was successfully issued last summer Progressing in this manner is something wersquod like to see continue across West Africa in order to utilise its resources with aiding development in the region in mind
QampA WITH KHALED M AL ABOODI CEO OF ICD
Islamic FinanceMARKET OUTLOOK
OFFICIAL SPONSORS
ENDORSED BY OFFICIAL HOST OFFICIAL
COMMUNICATIONS PARTNER
MEYDAN HOTEL DUBAI UAE19 - 20 NOVEMBER 2014
WOMENOMICSthe next emerging market
TAKE PART in making change happen UNITE with business and through leaders from across the globe
PARTICIPATE to the expansion of a modern and inclusive economy
58
Gautam PradhanINTERVIEW
wwwthecfomecom
SUCCESS BEyOND BOUNDARIES
in other management roles such as strategic decision making mentoring and leading efficiency and productivity across a range of other departments and functions as well as a being a catalyst in ensuring that the boardrsquos vision for the organisation is achieved
A significant percentage of NMDCrsquos shares are owned publicly Does the CFO play a role in balancing the interests of the shareholdersAs a CFO balancing the shareholdersrsquo interests is definitely part of my responsibility In order to achieve this goal there needs to be a careful evaluation of each decision while keeping the short-term and long-term goals of the company in mind At NMDC we actively implement a system where we utilise a balance scorecard as a method of ensuring that all our primary objectives are met yet at the same time continuously enhance our relationships with our shareholders
NMDC has completed various projects across the Emirates Are there plans to move abroadAs NMDC moves towards becoming an international player our strategic expansion plans are focused in areas within the GCC region and India In line with this strategy we opened
How has a company with such a unique set of deliverables grown so consistently over the yearsOur organisation strongly believes that the core to our strength is the people process and equipment A strategic decision led by our Board of Directors and the senior management has been implemented that required us to consistently invest in these three aspects to help expand our business beyond the territorial boundaries of the UAE and at the same time enhance what we can offer which is relevant to these segments We attribute our success to the efforts which every employee contributes We also strongly believe in the ldquoWe can make it happenrdquo principle The management raises the index of performance while setting SMART objectives within the organisation and encouraging the employees to achieve them
How has your position as the CFO changed over NMDCrsquos 35 years of operationAs the market evolves and business dynamics change my role as the CFO has become complex and more challenging A few years back I was mainly focused on bookkeeping accounting and other financial responsibilities such as arranging bank facilities But moving forward I became more involved
The UAE is progressively becoming a hub for world-class infrastructure The country has duly impressed the rest of the globe with noteworthy land developments showcased across the emirates Among the remarkable landscapes found in Abu Dhabi are the Corniche Beach Yas Island and Sir Baniyas Island Behind these successful projects is NMDC the dredging division of Abu Dhabi National Oil Company (ADNOC)
In an interview with CFO Magazine Gautam Pradhan Chief Financial Officer NMDC shares an exclusive look into the companyrsquos international blueprint for growth and his dynamic role as a strategic leader of one of the best in dredging and marine construction in the Middle East
59
Gautam PradhanINTERVIEW
wwwthecfomecom
branches in Qatar Bahrain Oman and India This has paid rich dividends recently as projects of strategic importance are bagged in Qatar and Bahrain Furthermore NMDC (UAE) has recently played a key role as a leader of an international consortium with Royal Boskalis Westminister (Netherlands) and Jan De Nul Group (Belgium) for the awarding of the Suez Canal Dredging project in Egypt Moving forward we have devised a strategic approach that will enable us to play a key role in the development of Indiarsquos marine infrastructure
What are the global strategies that are part of the CFOrsquos responsibilitiesAs CFO understanding the macro economic scenario risk analysis and mitigating those risks are all a part of my responsibilities I also have to have a proper comprehension
ldquoA few years back I was mainly focused on financial responsibilities moving forward I became more involved in strategic decision making mentoring and leading productivityrdquo
Gautam PradhanINTERVIEW
60 wwwthecfomecom
of the challenges faced by the company in terms of dealing with foreign contracts direct and indirect taxes and hedging and managing the integration process These are essential to enhance shareholders wealth and mitigate undue risk
How significant is accountancy for NMDC in its operations Why exactlyAccountancy is the lifeline of any company it does not only record the finances it also reflects the health of the organisation The MIS reports analysis trends and statistical information go a long way toward effectively providing
the diagnostic approach essential for the company
How have NMDCrsquos environmental activities helped the companyrsquos bottom lineNMDCrsquos work is well-synchronised with our environmental activities and specifically with nature Our activities are closely linked to sand and water and we view such activities with strategic importance Projects such as increasing water supply to mangroves and beach nourishment help us support the environmental activities while adding to our bottom line
ldquoAccountancy is the lifeline of any company it does not only record the finances it also reflects the health of the organisationrdquo
A burgeoning slice of Abu Dhabi coastline
The largest business awards
in the GCC30th November Dubai
nominate now at wwwstarsofbusinessawardscom
Stars of Business has become an iconic awards brand like no other in the region It recognizes the very best SMEs across 26 business categories Itrsquos universally respected as scientifically assessed and unimpeachably judged
327000 SMEs across the UAE$234 billion estimated total revenue of the SME sector4974 Awards entries in 20131856 Individual company applicants
Presenting Partner Strategic SME Partner Gold Sponsor Gold Sponsor VIP Hospitality Partner Supporting Partner
Trade Facilitator PartnerTrade Credit PartnerLogistics Partner
Institutional Partner Institutional Partner Event Partner
OrganiserPublisherMedia Partner Media PartnerPort Authority Partner
62
David Allen INTERVIEW
wwwthecfomecom
What went into completing your bestseller ndash Getting Things Done (GTD)After twenty years of researching developing and implementing a methodology for achieving stress-free productivity based upon
thousands of hours spent desk-side with
some of the best brightest and busiest people in the world I decided to write the manual for it Thatrsquos what Getting Things Done is
What are the five phases of mastering workflowIn order to get
any situation under control so
you can focus you will utilise these five
steps Whether yoursquore managing your kitchen
or your company you will need to collect and capture what has your attention clarify what if anything to do about it organise it according to what it means to you review and reflect upon it in relation to
Todayrsquos evolving CFO is often caught between the world of business set-up generating revenue managing employees and building strong company infrastructure When can things actually get done What can one do to boost productivity and master workflow World-renowned business coach David Allen has the answers
PRODUCTIvITy PRINCIPLES WITH
DAvID ALLEN
63
David Allen INTERVIEW
wwwthecfomecom
those are greatly subvertedHow does one maintain a fair balance between the time spent planning and actually getting things doneYou simply need to spend just the amount of time you need to to trust that what you are getting done is the right thing to be getting done in the moment It takes as long as it takes to get to that point Why would you do anything less
How can one apply your core productivity and workflow principles to todayrsquos technologically driven environmentThe principles and their techniques are system-independent Whether you have meaningful input from the Internet your smartphone or a conversation in the hall you must engage with it equally Technology has simply increased the flow of input and ease of distraction in your world
There is a lot of talk about how connected wersquove become and how connectivity is driving tremendous business growth Does connectivity actually come with its fair share of downsides
Connectivity is obviously a two-edged sword We can have intimate productive and creative interaction instantly with someone on the other side of the world and we can just as easily be distracted and seduced into those engagements when they may not be the best use of our attention and resources Donrsquot shoot the medium Itrsquos all simply bringing attention to your clarity of direction and priorities or lack thereof
Could you share a few quick tips with our readers to instantly boost productivityWrite everything down that has your attention Decide the very next actions required to get closure on all of them Any next actions that require less than two minutes do instantly Park reminders of everything else somewhere that yoursquoll see when you can do something about them
We are currently facing a massive information overload What are some basic principles you could suggest to mentally organise such large amounts of dataConstantly ask yourself Where am I going Whatrsquos important and rewarding to me Is this information
the whole and then engage your resources with intuitive trust
As a CFO how can you transfer efficient workflow management skills to your employees Itrsquos very difficult to legislate processes for individuals ndash you can really only hold them accountable for their results But if you are managing your own commitments and intersections with them with integrity and rigour it will automatically force your team to ldquostep up to the platerdquo in their own behaviours in order to meet your standards If you request their complete list of their company projects and they canrsquot produce it thatrsquos a sign theyrsquore not in control If they make a commitment to you that they havenrsquot kept thatrsquos data about their performance GTD is simply about good operational business practices
With so many planning and organising activities in your methodology is there a risk of losing spontaneity as a strategistThe reason for these best practices is to optimise freedom creativity and spontaneity Without them
ldquoBut if you are manag-ing your own com-mitments and intersec-tions with them with integrity and rigour it will automatical-ly force them to ldquostep up to the platerdquo in their own behaviours in order to meet your standardsrdquo
64 wwwthecfomecom
supporting that Park whatever you find potentially meaningful somewhere that is easy to access when needed
Being an entrepreneur is a non-stop job How do you ensure that you have an adequate work-life balance Pay attention to what has your attentionmdashwith regard to anything Your health relationships career finances etc Notice when something might be ldquooffrdquo and make good decisions about what you need to do to get it back ldquoonrdquo again
Does your work teach people to be efficient or effective In essence they are the same thing Effective choices are generated by efficiency on a higher level If you want to implement strategy most effectively it demands utilising your resources optimally which is efficiency
Does motivation actually improve quality of work or purely quantityDepends on the focus of the motivation You can be motivated to work harder and you can be motivated to work smarter
What is your favourite productivity mantra that
you implement in your day-to-day lifeUsing my own in-basket and note-taking devices to capture potentially meaningful and valuable ideas and soon afterwards clearing all of them out by deciding what to do about them if anything
Your books seminars and other work inspires many individuals and businesses Who is your personal inspiration or role model I have many about many different aspects of my life The only person though that I ultimately trust as my best guide is my higher self which I try to access as frequently and clearly as I can
Finally what advice would you give to current business owners and aspiring entrepreneurs looking to gain complete control of their life and businessCapture what has your attention clarify what you need to do about it to get it off your mind organise the inventory of all your commitments at all levels review and reflect on all of that regularly relax and trust your inner wisdom to engage with the most appropriate thing in the moment
ldquoIf you want to implement strategy most effectively it demands utilising your resources optimallyrdquo
David Allen INTERVIEW
APPSTECH TALK
wwwthecfomecom 65
mAxImISE BUSINESS lsquoON-THE-GOrsquo WITH THESE HANDy APPS
ipAd SpECIAL
SAMSUNG UNvEILS GALAxY NOTE EDGE
Network
AP
Display
OS
Camera
Video
Audio
Additional Features
GoogleMobile Services
Connectivity
Sensor
Memory
Dimension
Battery
The availability of service may differ by country All functionality features specifications and other product information provided in this document including but not limited to the benefits design pricing components performance availability and capabilities of the product are subject to change without notice or obligation
Samsung Galaxy Note Edge Product Specifications
25G (GSM GPRS EDGE) 850 900 1800 1900 MHz3G (HSPA + 42Mbps) 850 900 1900 2100 MHz4G (LTE Cat 4 15050Mbps) or 4G(LTE Cat 6 30050Mbps)May differ by country and carrier
27 GHz Quad-Core Processor
56 inch (1419mm) Quad HD+ Super AMOLED (2560 x 1440 + 160)
Android 44 (KitKat)
Rear Facing 16 Mega pixel Auto Focus camera with Smart OISFront Facing 37 Mega pixel camera with f19Rear Facing Camera HDR (Rich tone) Selective Focus Rear-cam Selfie Beauty face Virtual Tour Shot ShotampMore Dual CameraFront Facing Camera Selfie Wide Selfie
Codec H264 MPEG-4 H263 VC-1 WMV7 WMV8 Sorenson Spark MP43 VP8 Recording amp Playback up to UHD
Codec MP3 AACAAC+eAAC+ WMA AMR-NBWB Vorbis FLAC()() Ultra High Quality Audio (~192KHz 24 bit) support
Multi WindowUltra Power Saving ModeVoice Recorder (Normal Mode Interview Mode Meeting Mode Voice Memo)Download BoosterS Health 35Dynamic Lock ScreenBriefingEdge screen UX Revolving Interaction Immersive apps(Camera Video S Note)Ticker board Express me Quick Tools Night Clock etc
Chrome Drive Photos Gmail Google Google+ Google Settings Hangouts Maps Play Books Play Games Play Newsstand Play Movie amp TV Play Music Play Store Voice Search YouTube
WiFi 80211 abgnac (HT80) MIMO PCIeGPS GLONASS BeidouNFC Bluetoothreg v 41 (BLE ANT+)IR LED (Remote Control) USB20 MHL 30
Gesture Accelerometer Geo-magnetic Gyroscope RGB IR-LEDProximity Barometer Hall Sensor Finger Scanner UV Heart Rate Monitoring SpO2 (Dependent on market)
32 64 GB Internal memory + microSD slot (up to 128GB)3GB RAM
1513 x 824 x 83mm 174g
Standard battery Li-ion 3000 mAh Fast Charging (Adaptive Fast Charging amp QC20)
wwwthecfomecom66
APPSTECH TALK
AIR DISPLAY
SQUARE REGISTER
Using this app you can connect your iPad to your computer and use it as an additional screen While working on an important presentation or sales proposal you can extend or mirror your computer screen on your iPad This app is compatible with both Mac and Windows computers Note that to use this feature you have to install Air Display on your iPad and a separate free app on your computer The computer and iPad also need to be on the same Wi-Fi network in order to work in-sync
For Mac users the app allows you to connect to up to four screens ndash all at the same time
Apart from the ability to convert your iPad into a wireless display whatrsquos also attractive about this app is that it allows you to control your computer wirelessly using your iPad
This fantastic application can serve as a mobile point of sale for your business It allows you to accept credit card payments ndash including Visa MasterCard Discover and American Express A transaction fee of 275 is charged for every time you swipe a card The sale amount is transferred to your account within two working days
Once you download the app you can sign up and register for a unique card reader solution called the lsquoSquare Readerrsquo (this is free) Square Reader encrypts all card details and ensures that the transaction is secure Once you receive your Square Reader you can connect it to your device and are all set
The application also offers added features such as transaction history connecting to a receipt printer creating employee logins and more
AED 3699
PRICE
Free
PRICE
wwwthecfomecom 67
APPSTECH TALK
DOCUSIGNHave you ever been in a situation where your employees need you to urgently sign a contract but arenrsquot able to physically reach you in time DocuSign solves this problem with its easy-to-use eSignature feature In three easy steps you can sign important documents and securely send them to your intended recipient
First you have to import the document to your device ndash this could be from Dropbox Google Drive or another select applications You then place your signature or any other important legal information you need to include such as initials Once you have finished working on the document send it back via e-mail
Whatrsquos particularly great about DocuSign is the great emphasis it puts on security ndash so that users donrsquot have to worry about getting into any legal trouble
Use DocuSign and never miss a deadline again
Free for basic version
PRICE
MPAYAn initiative by the Dubai eGovernment Department mPay is a simple application that allows you to make important payments Once yoursquove signed up and entered your payment details you are good to go You can pay your Dubai Electricity and Water Authority (DEWA) bills Etisalat utility bills Dubai Police fines Recharge SALIK and much more
A handy feature is its lsquoauto-rechargersquo option which you can use to set automatic payments
Free
PRICE
Opinion CIMAPERSONALITIES
wwwthecfomecom68
NEW HORIZONSBy geetu Ahuja Head of gCC at CIMA
The days of the traditional accountant working within a small community in a small town in a small market have long gone CFOs are now being referred to as Chief Frontier Officers as they travel from market to market overseeing their offices overseas This new expanded role has distinct advantages for both the company and the CFO who gain new skills and new insights from foreign branches a single hand at the helm of many markets provides business perspectives on a global scale and benchmarks across the board
On a personal level working abroad also has huge importance Robert Walters the specialist professional recruitment consultancy recently conducted a survey
of almost 2200 employees across a variety of professions exploring a number of topics which ranged from working practices and attitudes to careers The results highlighted some notable trends particularly for finance professionals
In career progression for example the survey showed that 50 of all accountants see working abroad as either lsquoessentialrsquo or lsquoextremely usefulrsquo to furthering their prospects more than banking professionals lawyers and IT workers ndash a strong indication of how accounting professionals are thinking about their future either within their existing company or with opportunities elsewhere
Accountants with globally recognised qualifications obviously have a greater chance of gaining some experience abroad and the lsquoGen Yrsquo professionals in particular seem ready to pack their bags In a CIMA study conducted in the UK last year over a third of those seeking employment in the
next two years will prioritise opportunities abroad over those in their home countries many of them enticed by the career incentives offered by the Middle East
How quickly can they land what seems to be their dream job What are the realities It may be that the move is simply from one branch to another and the only significant difference is a view from the window but for those expanding rather than changing their roles we have seen a very real need for a depth and breadth of knowledge never needed before
As geographical boundaries are pushed ever-wider a CFOrsquos responsibilities are pushed with them For many finance executives the understanding of their own patch of land is no longer enough they now have to be aware of foreign markets up to speed with foreign trends and au fait with foreign laws There is a need for a new commercial awareness in geography as well as philosophy
As geographical boundaries are pushed ever-wider a CFOrsquos responsibilities are pushed with them
John vargheseQampA
wwwthecfomecom 69
BUSINESSSET UP YOUR
IN THE UNITED ARAB EMIRATES
TO
WAREHOUSESOFFICES INDUSTRIAL LANDFLEXI
Quick and easy company set-up
Less than an hour drive from Dubai
Complete cost-effective packages including licences and facilities
100 foreign ownership
Zero income and corporate taxes
Eligibility for UAE Residence Visa
BUSINESS SET-UP SOLUTIONS STARTING FROM AED 15000 (USD 4000)
RAK FREE TRADE ZONE PROVIDES
RAK Free Trade Zone Authority - Government of Ras Al KhaimahUAE (Ras Al Khaimah) Tel +971 7 2041111 (Dubai) Tel +971 4 7041875 (Abu Dhabi) Tel +971 2 6994888
Germany (Cologne) - Turkey (Istanbul) - India (Mumbai)
Call +971 7 204 1111 Visit wwwrakftzcom Join rakftz
IndiaCOUNTRy FOCUS
wwwthecfomecomwwwthecfomecom 17
Population size 12 billion
Area 3287263km2
Type of government Federal republic
Official language Hindi
Capital city New Delhi
Largest city New Delhi
GDP (2012) $1825 trillion
Central government debt as a proportion of GDP 67
Currency Indian rupee
Conversion rate against the euro 0013
COUNTRy FILE
Hire a local manager or partner who has a very good
understanding of local rules and regulations
Have a longer-term investment horizon because the Indian rupee will remain
volatile for a while
donrsquot view volatility as a risk view the
integrity of the government and
management as a risk
Travel to India and feel the lsquomicrorsquo India
story rather than just read about the lsquomacrorsquo India story
Be patient and have realistic
expectations ndash things take time to work out in India
TOP TIPS FOR DOING BUSINESS IN INDIA
that these differences will mean that India significantly outperforms those economies over the coming years And while we might still be facing some turbulent times for India at least the dark clouds are beginning to break
As with any emerging-market economy the next few years will present challenges alongside opportunities and investors will have to
be comfortable with this state of affairs But India is committed to making the reforms it needs to improve its future The country has much better potential for growth than any developed country and it is also in a far better position than many of its emerging-market peers Now is the time to take advantage of all that India has to offer to investors
INNOvATIONrsquoS BOTTOm LINE Bill Chappell occupies a rare space as the CFO of Dubai Silicon Oasis a free zone dedicated to the development of technology across the emirate In the following interview he shares with CFO Magazine how far along technology has come in the UAE and why the figures are the most important aspect of his role as Chief Financial Officer
18
Cover StoryTECHNOLOGy
wwwthecfomecom
Dubai Silicon Oasis (DSO) occupies a vast 72 million square metre stretch of land in the northern reaches of the UAErsquos most globally recognised emirate Established in 2005 as a government-owned free zone devoted to the development of technology DSO has in the time since welcomed over 1087 companies into a space of which more than 59 of has been developed
Responsible for liaising with DSOrsquos companies both large and small whilst overseeing the free zonersquos balance sheet CFO Bill Chappell mans a unique station as a finance
executive with a keen eye for technological growth
ldquoIrsquove been with Dubai Silicon Oasis for nine years and my role is rather split I am the finance director but Irsquom also responsible
for our initiatives on technology incubation
and investment which is all very interestingrdquo
Chappell said Despite Chappellrsquos
years of experience in the technology industry granting him an imperatively strategic purview as CFO he makes clear what is most important as Chief Financial Officer
ldquoGetting the numbers right must always be the number one thing People talk about strategy and a number of other things but you must focus on the numbersrdquo
Chappell offered ldquoMy background is in technology companies for over ten years previous to coming here so I have a knowledge of technology which I brought to Dubai above all My overlap personally involves understanding technology whilst being a CFOrdquo
When Dubai Silicon Oasis first came into existence the area was undeveloped with no roads customers or residents Today the oasis acts as both a home for industry and residence whilst the Dubai Silicon Oasis Authority operates a number of services unique to companies which operate within the free zone A business incubation centre venture capital funding structure and various forms of entrepreneurial support are among DSOrsquos many aspects available to tenants
Said Chappell ldquoThere are three categories of companies at DSO There are smaller companies which deal more largely with our entrepreneur and incubator ecosystem The other extreme involves global firms such as Fujitsu or SAP and we look at their needs and make sure theyrsquore satisfied as customers They want our help to get setup And then there is the middle group and I meet them if they need my help as CFOrdquo
DSO counts SAP Porsche Fujitsu and Qordoba among its vast bank of companies
19
Cover StoryTECHNOLOGy
wwwthecfomecom
each of which are granted access to the Chappellrsquos well-honed expertise
ldquoBill has been involved in several meetings to gain updates about the company and offer input on what he thinks we should be focusing on whilst asking questions about our financial processes He also sits with the board on occasionrdquo said Loulou Khazen Baz founder of Nabbesh an online marketplace which connects professionals with work opportunities
ldquoDubai Silicon Oasis has been an important Investor at various stages of Nabbeshrsquos journey and a vital stamp of approval Our company has found priceless value in DSOrsquos support and the approachable nature of an involved CFO like Billrdquo
Chappell faces a number of challenges related to investment due to the region not ranking tech developments as high as traditional platforms such as real estate Additional concerns related to innovation have found themselves increasingly entering the CFOrsquos remit as related to encouraging ideas specific to the region Chappell is confident however that certain companies based in DSO are addressing these issues
ldquoIn this region one of my biggest challenges is getting people to understand
ldquoPeople talk about strategybut getting the numbers right must always be the number one thingrdquo
20 wwwthecfomecom
the complexities of tech Technology is a good investment class but the region is focused very much on real estate whilst the investment class of technology doesnrsquot rank as highrdquo said Chappell ldquoIn order to widen the general understanding we want to be developing solutions which address problems specific to the region We have one or two gems for example Qordoba a translation company which translates content in multiple languages The programme utilises artificial intelligence and as a result is getting smarter and smarter each time it is asked to translate so that it understands the meaning of what itrsquos translatingrdquo
Another key variable for DSO is centred on supporting
Dubairsquos goals based around becoming the worldrsquos capital for Islamic finance Chappell describes his role as CFO as one with ldquotwo thousand handsrdquo a multi-layered position which he seems to relish being held responsible for While DSO has grown tremendously in its near decade of existence the free zonersquos exuberant CFO sees lots more to come
Said Chappell ldquoI see us going from strength to strength Wersquove been in existence for nearly ten years When I joined it was empty desert Now we have over 1000 companies and an estimated 43000 living on site Within five years wersquoll also be further down the path and wersquoll be recognised for our contributions to the smart city and the Islamic economyrdquo
ldquoWithin five years wersquoll be further down the path and recognised for our contributions to the smart city and the Islamic economyrdquo
Dubai Silicon Oasis
headquarters
1080Companies in DSO
72millionDSOrsquos land mass in square metres
STAT FACTS
Cover StoryTECHNOLOGy
THE MIDDLE EAST ACCOUNTANCYAND FINANCE EXCELLENCE AWARDSWEDNESDAY 10 DECEMBER 2014AT THE JUMEIRAH BEACH HOTEL DUBAI
ACCOUNTING FOR EXCELLENCE
Once again the very best talent in the world of accountancy and fi nance will be celebrated by ICAEW at a stellar awards ceremony
ICAEW is a professional membership organisation supporting over 142000 chartered accountants around the world And on Wednesday 10 December 2014 at the Jumeirah Beach Hotel in Dubai wersquoll be recognising excellence in ten categories featuring Business Leader of the Year CFO of the Year Corporate Finance Deal of the Year and the Internal Audit Excellence Award
With an impressive line-up of speakers special guests and entertainment it all adds up to a trulymemorable evening
To submit a nomination or for more information visit icaewcommiddleeastawards
Nominations close on 1 October 2014
A WORLD LEADER OF THE ACCOUNTANCY AND FINANCE PROFESSION
400595_ICAEW_MiddleEast2014_Ad_NBAD_DEVERE_207x270_AW_3indd 1 27082014 1541
PROCUREMENTANALyTICS
wwwthecfomecom22
Return on Supply Management Assets (ROSMA) is a pioneering framework launched by AT Kearney after four years of testing one aimed at addressing the aforementioned procurement gaps The performance measurement standard was initiated with an eye on creating a benchmark for the procurement industry and providing a compass to direct investments
ldquoROSMA started in 2010 And it started out with conversations with the CFO There are a group of folks in the company talking about how great their achievements are however
the capital that procurement claims isnrsquot often obvious and can create a disconnect within the companyrdquo said AT Kearney Vice President Federico Mariscotti
This yearrsquos annual report surveyed a number of businesses and arrived at a series of significant findings which outline procurement patternsbull Top-tier companies generate
approximately $16 million in financial return per procurement employee yearly A reported 35 per cent of return derives from applying advanced methods
bull Mid-level performers typically
The first step for compa-nies in the Middle East is to take a good look at what they expect procurement to bring
Leading global management firm AT Kearney recently released a report on the evolving conversation which surrounds procurement A key aspect of the report spells out how much CFOs stand to gain by making more pronounced investments based on utilising procurement in terms of value The relative distance between CFOs and their respective companyrsquos procurement methods is cited as cause for concern
THE NEW LANGUAGE OF PROCUREmENT
generate four to five times of their investment in procurement valuation yet have not exemplified growth since 2011
bull Performers at the lowest level surveyed do not achieve monetary benefits which cover costs
bull The majority of organisations surveyed do not possess the tracking structures needed to analyse procurement performance
bull Regardless of company size or industry procurement
PROCUREMENTANALyTICS
wwwthecfomecom 23
The CFO community has not yet awakened to the value of procurement
performance varies though companies with sophisticated reporting techniques experience less variable performance
The reportrsquos express aim to create a benchmark for procurement follows a wave of process monitoring which found notice in the manufacturing industry in the 1980s supply chain research and engineering in the 1990s and sales and marketing performance being closely tracked in the 2000s
ldquoProcurement costs can represent anything from 20 to 90 of a companyrsquos total cost going from the public sector to consumer goods Yet the productivity of the team that presides over the supply market interactions has a way of explaining their value add using savings that do not add up to the PampL impact measured by finance Savings definitions different baselines and cost avoidance all contribute to a murky aggregate view of the impact on the businessrdquo added Mariscotti
In the Middle East the challenge is fundamental ndash getting the spend data in the first place Companies admit they often do not have a clear categorisation of intelligence lack an agreed definition of savings measurement and generally position procurement as a pre-eminently transactional activity lacking the mandate to contribute value Procurement processes as a result remain centred around purchasing are paper based and lack transparency The first step for companies in the Middle East is to take a good look at what they expect procurement to bring
wwwthecfomecom24
Influencedspend
The inconsequential The brand leaders
Leaning up
Note All three segments start with a common hypothetical spend of 1000 to normalize the case example
Source AT Kearney analysis
Source AT Kearney analysis
TOP QUARTILE
mIDDLE-TIER 50
BOTTOm QUARTILE
704
764
644
522
527
396
42
30
(138) (25)
(63)
19
39
28
15
21
4
3
60
32
18
Sourcedspend
Units of yield
Post-compliance
benefits
Additionalbenefits
Financial results
delivered
19x
17x
middle tier
bottom quartile
TOP-QUARTILE PERFORMERS DELIVER NEARLy TWICE AS MUCH VALUE AS MIDDLE-TIER PLAyERS
THE CFO COMMUNITy HAS NOT yET BEEN ldquoAWAKENEDrdquo TO THE VALUE OF PROCUREMENT
Procurement is not on the radar for those who gave the wrong answers to three essential questions
leadership with accountability for performance is clear but either the measures are not clear or performance is believed to be weak variable or unknown ndash or a mix
leaners and leaders answered all three essential questions correctly and also answered most or all other questions correctly
to the table and how it should support the business To make a steep change companies need to understand the multiple benefits which will occur for investments made once theyrsquove allowed for stronger procurement practices
The benchmarking aspects of ROSMArsquos report speak directly to CFOs based on an existing widespread inability to track and improve this often unquantifiable nature of procurement practices According to the report the CFO community has not yet awakened to the value of procurement and Chief Financial Officers are thus divided into three segments The brand leaders (25) those leaning up (63) the pack (774) and the inconsequential (138)
Said Mariscotti ldquoThis is a way to give procurement a measurable quality that CFOs can quantify You have to know what yoursquore doing with relation to procurement in order to do it well ROSMA gives you a number which helps you understand how good your procurement is working as compared to peers It lets you know whether or not you could be doing something differentrdquo offers Mariscotti
CFOs have exemplified an increasing ability to share in a companyrsquos strategic efforts whilst expand their respective remits Procurement is emerging as the latest segment of this conversation Understanding its value beyond the transactional is the first step for CFOs to fully engage with harnessing the potential of procurement and grow to become a part of the elusively paltry portion of brand leaders indicated in ROSMArsquos report
PROCUREMENTANALyTICS
The pack(774)
Al Sharid is the Vice Chairman of Emirates Transport and has enjoyed a successful career in which the lionrsquos share of his tenure has afforded him a seat at the helm of the business
ldquoI remember when I first received the GM of Tata in the late 80s he said to me lsquoYou are the youngest GM I have ever metrsquo I was 29 years old at the timerdquo Looking at Al Sharidrsquos rapid ascent to the top of his organisation can be mind boggling to the average observer however to those few who strive to push themselves to their limits it is perhaps more common a reality As with any top performer we can often see their desire for results and impact
early on in life and with Saeed the first stride of his race to the top began with an accounting degree in university
It was 1976 and the excitement of the UAErsquos biggest milestone moment its inception just five years earlier still clung to the air from Fujairah to Abu Dhabi and every emirate in between A nation was being built Saeed had just finished high school and went to the United States where he was to study engineering
ldquoI was not yet 18 years old it was 1976 and I was sent to America to study it was the beginning of a dream and a young liferdquo says Al Sharid Unfortunately Al Sharidrsquos academic tour of duty came to
THE EmIRATI DREAm Saeed Al Sharid is today an elder statesman in the world of UAE accountancy With decades of know-how based on chairing a number of key Emirati organisations Al Sharid is today atop his own family firm In the following exclusive interview he shares the importance of education the evolution of a nation and just how being an accountant has driven his many triumphs
an abrupt halt when his father suddenly passed and he was forced to return home ldquoWe are seven brothers and I am the middle one so during tough times we always come together and during this period the strength of my family pulled me through I have three younger brothers and I felt I had to be there for them I felt responsible for them My mother played an omnipotent role in pulling us through this dark moment in our history The death of my father forced us to become more independentrdquo says Al Sharid
Now back in the UAE with his plans of studying abroad dashed Saeed looked at the local schooling system within which Al
26
InterviewPERSONALITIES
wwwthecfomecom
Saeedrsquos desire for results took its first stride with an accounting degree in university
By Shane phillips
27
InterviewPERSONALITIES
wwwthecfomecom
Ain University had just opened ldquoAl Ain University was the pride of the Emirate at the time the students were like celebrities The first batch of graduates were all promised 50000 AED from HRH Sheikh Zayed I was one year late so technically I should not have graduated with the first batch but I was determined I worked an extra course load did summer school and soon caught up to the first class 50000 AED in 1981 was like 5000000 AED today so I was very motivatedrdquo says Al Sharid
Saeed not only caught up with the other students but he wound up graduating atop Al Ain Universityrsquos first class of graduates with a 38 GPA ldquoWe Saeed Al Sharid
28 wwwthecfomecom
to the organisationrdquo he says Saeed first joined Emirates Transport after seeing a small newspaper advertisement for an accountantrsquos position He applied but initially they did not want to hire a local because locals were too expensive After a few months however they called him back for an interview and offered him a job
Initially Saeed struggled to get a promotion or even a raise He worked tirelessly to develop himself and kept detailed notes of his work After nearly two years went by with no promotion he requested to meet with the Chairman of the corporation to discuss his career The Chairman was a Minister making him even more senior than his title implied Al Sharid was courageous and determined ldquoYou should not stay silent you have to take initiative your future is in your handsrdquo says Al Sharid
ldquoI met with the Chairman and told him about my work and what I wanted to do He did not talk he just listened and that was it It was a 15-minute meetingrdquo says Al Sharid Three days after Al Sharidrsquos pivotal appointment he was promoted to Deputy General Manager Directly from a Trainee to DGM skipping all the roles in between at the age of 27 years old They doubled his salary and catapulted him into a senior leadership role
ldquoI felt it was quite strange to move up that fast and personally was not sure I could handle the job I had a lot of resistance from the board I had people in their 50s reporting to me and they were not happy about it So I just took a step back and did not try to get involved in their work too fast I went slow and watched my step This was a very important
ldquoThe UAE was a brand new country and a lot of work was being done to develop the nationrdquo
never had any idea of a career path and there was no such thing as career counsellors or lsquocareer servicesrsquo at the school So when you graduated most people just joined the Ministries The UAE was a brand new country and a lot of work was being done to develop the nation The Federal Government paid the highest and so one just joined them There was no grand vision or dream that I was off and chasing In those times you simply tried to do the next best thing So I ended up working in the Ministry of Health as an accountant Back then a university degree was a veritable qualification and it had a lot of market equity today it wonrsquot even get you in the doorrdquo
As the Middle East market evolves not only are university degrees becoming more common but so are post graduate degrees such as MBAs and even PhDs As such the competitive positioning of professional qualifications are gradually eroding over time
ldquoTo stay competitive executives today will require deep and specialised knowledge of their respective industries an intellectual arbitrage that provides superior results To beat the market to manage the risks to develop a sustained competitive edge For this executives need to stay in a role for the full strategic cycle which is at least four years in durationrdquo says Sharid In the case of Al Sharid he was there for 33 years
ldquoDo you just want a job or are you looking to make a contribution to your company Too many young people today are just looking for a title or a position The difference between those who make it into senior roles and stay there is the desire to create impact to add value
InterviewPERSONALITIES
2012year Moodyrsquos upgraded the UAE economy from developing to emerging
37The UAErsquos global rank for GDP
STAT FACTS
moment for me to gain valuable leadership experience early on To make my learning curve even steeper the General Manager quit after two years and I became the GM at the age of 29 years oldrdquo explains Al Sharid
He ascended to the top job in less than five years and stayed in the position for almost twenty years He was totally committed and could even be found in the bus yard at four in the morning to greet the drivers as they started their shifts ldquoThe key to being successful in business is to keep your finger on the details Some people let the details slip and if this happens you will suffer I get into the yard I meet the drivers I meet all the staff If you saw us you will not know who was the GM or who was the driver You have to realise people will never work for you they will only work with you To me Emirates Transport is like my familyrdquo says Al Sharid
When asked what his keys to success are he says ldquoI think if I was not an accountant I would not be a good leader I would not be a good manager In my opinion trying to do business while not understanding accounting is like getting into the ocean and not knowing how to swim you will drown The Chief Executive Officer who does not know how to create the financial statements is always at the mercy of his Chief Financial Officer He cannot take any big decision on his own and he will not even be able to challenge the CFO Accounting is the bedrock of any business and a critical skill set for any leader No one can argue with this factrdquo says Al Sharid
With over 20 years of experience in tow and the related chairmanships to boot Al Sharid
ldquoTrying to do business while not understanding accounting is like getting into the ocean and not knowing how to swim you will drownrdquo
has since early last year partnered with his family to form Al Sharid Auditing Though the Emirati youth is not as keen to pursue positions related to accountancy as Al Sharid was he feels that there is hope to close the gap
ldquoIt is difficult to find an Emirati expert I studied the audit market specifically and there were others like me then But now you break Emirati auditing involvement into three categories The first involves the big firms This is followed by individual smaller enterprises But thirdly a lot of locals opt to work with the government also Most are not managing their own firms they just have a partnership and they are building thatrdquo Al Sharid explains
ldquoAl Sharid Auditing however is a firm that includes my brother and our two sons which make up a body of qualified professional auditors We established this firm last year and work closely with the government We decided to make one firm together instead of having many smaller entitiesrdquo
Moving forward Al Sharid plans to grow his familyrsquos firm by applying the very belief system which has catapulted him to his position of power Marketing concerns which are designed to furthermore announce how tailored Al Sharidrsquos offerings are at present a key variable to forging ahead
Said Al Sharid ldquoMoving forward wersquore focusing more on the marketing of our firm Itrsquos a matter of not exactly expanding but going over the right deals The market is tough and the small jobs are easy but we donrsquot need them We donrsquot want to be in many rooms we want to be in the important onesrdquo
29wwwthecfomecom
InterviewPERSONALITIES
1UAErsquos rank among GCC nations for chosen hub of all major accountancy bodies
STAT FACTS
Latest insights from PwCrsquos 15th Annual Global CEO Survey revealed that 59 per cent of CEOs see emerging markets as more important than developed markets to their future What is making emerging markets such a pressing priority for C-suite executives Why are emerging markets increasingly grabbing headlines
Emerging markets are large fast-growing and ambitious markets best known for being the growth engines of todayrsquos global economy Research (1) suggests that emerging market countries are expected to amount for more than 60 per cent of global GDP growth ndash a clear indication of the wealth of opportunity they present
Understanding emerging marketsBased on estimates by the International Monetary Fund emerging economies are expected to grow two to three times faster in comparison to developed nations Explaining this fast-growth and the rise of these emerging markets an article on Forbescom details that ldquoduring the US housing crash and resulting credit crisis of 2008 world markets were saved from a total disaster thanks to the big emerging markets ndash mainly Brazil India and China The global credit crisis was one of the longest deepest and most painful in history It toppled Wall Street icons like Lehman
The following report explores emerging markets from West to East which are at the helm of economic development trade and innovation and highlights what their rising popularity means for the growth of your business
Brothers required government bailouts of bulge bracket banks and shocked the global economy with a deep economic recession and even a deeper crisis of confidence Its most important legacy though may be one that has yet to fully unfold the crisis revealed a new world order in terms of economic and market dynamics Emerging market economies finally arrived as
30
Market IntelligenceANALyTICS
wwwthecfomecom
ENTERING EmERGING mARKETS STRATEgIES RISKS ANd OppORTuNITIES
Projected annual GDP growth 2014 amp 2015
PANAMA
67
PERU
RANK42
55
Projected annual GDP growth 2014 amp 2015
Ease of Doing Business
RANK55Ease of Doing
Business
TOP TEN MARKETS
(1) Source here Accenture Research ldquogearing up for growth ndash five imperatives for success in emerging markets 2011 Henry Egan and Armen Ovanessoff
31
Market IntelligenceANALyTICS
wwwthecfomecom
LATVIA
CZECH REP
MALAYSIA
THAILAND
SOUTH KOREA
CHINA
RANK75
41
21
50
45
35
74
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
CHILE
RANK 34
43
Projected annual GDP growth 2014 amp 2015
Ease of Doing Business
RANK 24Ease of Doing
Business
Ease of Doing Business
RANK 6Ease of Doing
Business
RANK18Ease of Doing
Business
RANK 7Ease of Doing
Business
RANK 96Ease of Doing
Business
POLAND
32
RANK45Ease of Doing
Business
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
Source httpwwwbloombergcomnews2014-01-29qatar-china-top-ranking-of-frontier-and-emerging-marketshtml
powerful essential and permanent contributors to global economic growth and sustainabilityrdquo
Bloombergcom recently ranked the top emerging markets based on their performance on 19 economic financial political and social indicators In order of ranking the top ten markets were
CHINA
SOUTH KOREA
MALAYSIA
CHILE
THAILAND
PANAMA
PERU
LATVIA
POLAND
CZECH REP
1 6
2 7
3 84 9
5 10
Market IntelligenceANALyTICS
32 wwwthecfomecom
Making an entryIf your business is looking to enter any of these emerging markets itrsquos worth considering the following checklist
1 Assess your readiness The biggest mistake you can make is to enter a market without proper evaluation of your business Donrsquot do it just because everyone else is Like every other major business decision be sure to speak to your Board of Directors partners investors stakeholders and most importantly your CFO and certified accountants Make a business plan enlisting your objectives goals investment strategy potential risks etc
2 Research research research Do your homework Treat emerging markets as any other international expansion venture and do thorough research on the new market ndash Who are the competitorsWhat is the price point for your product What are the customer demographics What kind of infrastructure do you need for the manufacturing production or distribution of your product
3 Understand the legal framework Emerging markets might not have rules and regulations as clearly spelled out as your home country Invest some time and money in understanding how business procedures work A very obvious area of focus for UAE-based companies is tax Since the UAE is a tax-free economy companies arenrsquot exposed to tax accounting and other legislation surrounding
ndash failing to adapt to the needs and expectations of the local customers is surely a recipe for failure Time and again companies havenrsquot been able to create a customised offer and have had to exit these markets with huge losses A success story however is that of the Haier Group Haier famously introduced washing machines to specifically suit the water pressure levels in the households of India ndash an emerging market strategy that worked very well in their favour and helped them become leaders in that sector Another great example is that of Coca-Cola as explained in an online Reuters article by Matt Reilly ldquoIn Brazil Coca-Cola has used social media to better understand consumer preferences and has developed a successful local network to supply traditional Coca-Cola products as well as fruit juices tailored to local tastesrdquo
7 Local currency This is a complex yet critical area to consider when entering a new market Ask yourself questions such as ndash What is the local currency rate How does it compare to the currency in your home country Is the country import-led or export-led and what impact can this have on the global value of the currency Remember that fluctuations in currency rates can hugely effect your overall investment and thereby the return on investment
8 Build partnerships When entering an unknown territory it is quite useful to have the backing and support of peers who can help you in case of unforeseen challenges This is
this Another area to consider is corruption ndash emerging markets are notorious for high corruption red-tape and bureaucracy Speak to your company lawyer to assess these areas and take proper measures to avoid them before-hand
4 Invest in local talent Working with people already accustomed to the new market avoids the hassle of relocation and reduces costs But more significantly gives you skilled talent to work in these unique environments This also works in favour of your company as it gives you a clear understanding of the kind of compensation packages you will have to offer to your employees For instance employees based in China might want high remuneration and low healthcare benefits while in India it may be quite the reverse Recruiting local talent will also have a trickledown effect ndash your employees will easily be able to cater to the local customer needs without the need for intense training
5 Supply chain 44 per cent of business leaders surveyed consider accessing the right supply chain capabilities extremely or challenging in emerging markets according to Deloittersquos Globalisation Survey Make sure that you know who your suppliers will be what the production costs are whether their production procedures fit your time constraints and if the final product matches your level of quality
6 Cater to local market demands This is one of the most important aspects of all
Do your homework Treat emerg-ing markets as any other internation-al expansion venture
Market IntelligenceANALyTICS
33wwwthecfomecom
the very reason why Mergers and Acquisitions are a popular way to enter into emerging markets Many companies piggyback on their clients who are entering these markets For instance if you are an IT consultancy working on a major project for a manufacturing and trading company with operations across India and China you can use their resources and expertise to explore opportunities in these countries
Remember to consider these steps every time you enter a
new market as every locality has its own set of unique needs One strategy doesnrsquot fit all
Surviving fierce market conditionsWhile the massive opportunity that lies within emerging markets paints a pretty picture businesses need to be wary of bottlenecks such as corruption volatility gaps in laws and regulations and strong competition There have been several high-profile cases of multinational companies withdrawing from emerging
markets owing to immense corruption pressures
There is also a high percentage of inherent risks in these markets which amount to many companies not succeeding in their first attempts It is important to take your time when adapting to these markets and fully understand the business dynamics Following recent case studies and going over the lessons learnt by multinational companies who have made an entry into these markets consider the below
bull Is your companyrsquos head-office ndash and senior management ndash located in your home country without any C-level representation in the new emerging market
bull Are you focusing all of your resources on doing business in the emerging market at the cost of losing profits in your home market
bull Have you researched local competitors in these markets who may already have a strong standing and proven models of success
bull Are you using the same ldquoentry approachrdquo and business model across different emerging markets
If your answer to one or more of these questions is yes it may be time to re-evaluate your presence in these markets and map out a different strategy
Finally remember that no matter what the outcome of your admission to these markets might be your business is sure to emerge out of this stronger tougher and ndash of course ndash ready for a new challenge
of companies believed they had invested more resources in
emerging markets than was required
entered a market without fully assessing the ability of the supply chain to support the expansion
entered with the wrong pricing model and an inappropriate
operating model
CONSIDER THE RISKS
48
24
20
There is also a high percentage of inherent risks take your time when adapt-ing to these markets and fully understand the business dynamics
Source Emerging markets expansion and the supply chain Economist Intelligence unit survey conducted on behalf of EY September 2010
34
CIMA INTERVIEW
wwwthecfomecom
The Chartered Institute of Management Accountantsrsquo (CIMA) Managing Director Andrew Harding visited Dubai to host the Institutersquos seminar on global management accounting principles In the wake of CIMA revising their well heralded syllabus Harding discussed with CFO Magazine what the newest edition held how CIMA is applying a digital focus to its courses and just how CFOs can gain from it all
CURATING CURRICULUm
35
CIMAINTERVIEW
wwwthecfomecom
can give CFOs something they can take and something they can measure their own management accounting services against They can benchmark using this and they can utilise this to see their progress
Part of that is having professional management accountant in place I donrsquot think the landscape matters I believe that there is a common business need wherever you may be around the globe
All of the emerging markets need these skills The first aspect that accounting schools teach is about auditing skills because theyrsquore interested in protecting investments Then they teach you how to keep your business sustainable and to have a sustainable business you need to have a management accountant in place So itrsquos not just here in the UAE where we see these demands we see the same demands in China Indonesia and other powerhouse economies We see their skills shortages and we see the need for solutions in those areas
Talk to me about how this new syllabus works to promote the evolution of a CFOThis syllabus that wersquove
Can you expound on just what can be found within the new CIMA syllabusWe just revised the syllabus we do that every four to five years What we have done this year is a very significant revision It is based from a complex study that we have carried out to over 3000 people from 200 companies globally It is the very first revision since the joint venture with CIMA and AICPA So this has allowed us to attain a syllabus rich with all the data from all the continents in the world For the first time wersquove had real involvement from companies in the USA in this project
Why is the collaboration between AICPA and CIMA significantMost important is the Chartered Global Management Accountant (CGMA) designation that AICPA and CIMA both issue for qualified management accountants Wersquoll have a common curriculum and common examination which will begin on January 1 which gives us a global designation for management accountants wherever they are around the world There are plenty of accounting bodies who claim to be global but actually this is the only
genuinely global designation This is because it has the only one with a North American participation in it So we can say that the CGMA will be just as well-recognised in the USA as it is in Dubai
With the global landscape in mind how do you create an even objective that applies to localities which may prove widely differentialThe landscapes are different but businesses have common needs wherever they may be What wersquove particularly seen since the global financial crisis is that companies are actively looking to build management accountant capability to build that capacity within their organisations They donrsquot want to have a poor quality of information that lacks insight being used in their businesses So they see management accountants can bring solutions to that As a result of all the work wersquove done with companies who participated in the syllabus wersquove also put together a series of what we call Global Accounting Principles This is a series of principles which describes what good management accounting looks like and what top quality management accounting in a company should be producing This then
ldquoCompanies are actively looking to build man-agement accountant capability to build that capacity within their organisa-tionsrdquo
36 wwwthecfomecom
worked on acknowledges the skill set needed by professionals throughout their career Therersquos a base level of competence that is needed but beyond that there is more There is business acumen the ability to communicate and influence and finally the ability to lead So you start off enhancing your raw technical accounting skills Then you need to place that into the context of the business that you are in Then as you move forward and as you rise to become the CFO yoursquoll need the others You have to learn how to present your work in a way that can influence and make an impact in the business The final piece is the ability to lead projects and other functions and to a great extent lead the board of directors Thatrsquos how the context works itrsquos not just about technical knowledge
How do you find that CFOs in the GCC region are responding to this programmeThe CFO has a real challenge on his hands now In 1975 80 per cent of corporate value is showing on the balance sheet By 2010 that dropped to less than 20 per cent Your traditional PampL reports no longer reflect the value of the business or how the business drives value
All things that should be of interest to investors is missing With things like the integrated report initiative wersquore starting to see the other dimensions that add value to business For CFOs thatrsquos all about strategic thinking and considering the long-term objectives Being articulate in implementing those strategies keeping in mind the risks and opportunities that the business faces We are also nowadays witnessing a whole new world of transparency around that
Are there electronic aspects to CIMArsquos advancing approachThe interactive case study simulates a real working situation and it tests how they can apply their knowledge in real life situations Theyrsquoll be presented with a scenario a few weeks before they take the exam so they can prepare for it They then go to an exam centre where they are asked questions about how they will deal with a certain situation in the real world Theyrsquoll get an email from the CFO giving them a certain task for a particular period of time We want to make it as close to reality as possible so students taking the exam will be assessing situations based on real life scenarios
ldquoThe CFO has a real challenge on his hands now as traditional PampL reports no longer reflect the value of the businessand [the role] must focus on strategic thinking and considering long-term objectivesrdquo
218KCIMA members worldwide
STAT FACTS
CIMA INTERVIEW
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
38
ERPANALyTICS
wwwthecfomecom
Faster more nuanced IT solutions are available to the modern day CFO Whilst Chief Financial Officers are called upon to analyse data across a number of spectrums the digital tools on hand are likewise being expanded to aid in focusing more squarely on the bottom line
ExCELLING WITH ERP
The global landscape is today firmly entrenched within a digital model As a result CFOs whom are called upon to take a larger role in a number of variables must also increase their abilities with respect to utilising the many upsides which tech innovations offer a business When surveyed about their most pressing concerns CFOs generally return a varying collection of responses Revenue growth regulatory changes and meeting quarterly goals are among the chief concerns Virtually every obstacle can be hurdled by way of maintaining the order of financial reporting and data which has long been
synonymous with the Chief Financial Officerrsquos remit A widening berth of ERP solutions is making this data all the easier to come by
Despite how sophisticated the market is today it was not long ago that ERP departments once spent days processing business reports
Said Rohan Tejura Assistant Vice President Focus Softnet ldquoTraditional ERP systems were solely data repositories Moreover these repositories werenrsquot real time and were incredibly dependent upon locational connectivity With the emergence of smarter development platforms more versatile devices and
39
ERPANALyTICS
wwwthecfomecom
more intuitive designs of system development the overall experience of the ERP now extends from data warehousing to reporting analysis trend mapping business intelligence and governance oriented capabilities Yet these solutions amazingly execute all of these deliverables via portable handheld devices and through cloud environmentsrdquo
New generation ERP systems must now be on the go whilst including up to the minute analytics to provide deeper insight into the business ERP Analytics tools use historical data captured from various business functions to provide valuable information for efficiency and business performance each incredibly priceless to a leading CFO
Finesse is an ERP provider which is continually addressing the transformation of output which the ERP industry is offering the equally transitioning role of CFO
ldquoWe provide end-to-end business management solutions to SMEs and Enterprises Our approach to ERP is much more than providing simply an operational management systemrdquo said Finesse COO Sunil Paul
ldquoWe believe that todayrsquos businesses need much more than integrating sales with inventory accounting and manufacturing but also to have seamless integration with all their sales channels including the point of sales ecommerce and inbound sales solutionsrdquo
A major im-petus of the ERP-cen-tered growth is based on how effec-tive com-prehensive real-time data proves to be for the CFO
40 wwwthecfomecom
before thereby creating new global benchmarks for overall economic growth
Microsoft Arabia CFO Sadrul Khan offered insight into just how far the knowledge economy has influenced regional financial leadership by explaining how one of the most prioritised technologies by CFOs in the region is social platform monitoring
ldquoOne of the five technology choices that CFOs tend to prioritise in boosting productivity efficiencies and faster decision making in the fast paced business environment which include a social platform that monitors trends customer sentiments and helps process mashable data for customer centricity and business growthrdquo said Khan
A major impetus of the ERP-centered growth is based on how effective comprehensive real-time data proves to be for the CFO Whether employed as on-premise ERP software-as-a-service or cloud-based solutions a nearly identical ethos is being utilised Allowing the CFO to quickly access the performance of all facets of a business is paying dividends in the boardroom a reality which is showing itself increasingly in the Middle East
The technologically-charged relationship between ERP solutions and the regionrsquos CFOs is expanding and as a result has catalysed what many see as GCC economic performance outstripping that of many economies outside of the region as a result
In order to compete in todayrsquos fiercely competitive environment organisations need to think both innovatively and out of the box They require more insights about their business and their customers and need to ensure that they are able to meet the expectations of their internal as well as external stakeholders Enormous amounts of data both structured and unstructured is continuously being generated within the internal and external systems of the organisation which if analysed can be of immense value both to the business and subsequently the stakeholders associated with the organisation
With the the era of CFOs labouring over spreadsheets now in the past given how many business frontiers have become so dependent on mobile options such as the cloud more and more tech companies are providing the regionrsquos CFOs with information technology that converts traditional internal and external data into rich visual insights This information is then used for faster decision making and provides the ability for a CFO to assess manage and control risks Regional CFOs have grown enabled to drive corporate strategy accordingly demonstrating how the knowledge economy is now in full force amongst the Gulfrsquos corporates
Given that advanced IT has now become a regular CFO tool the regionrsquos CFOs are subsequently making faster decisions and driving internal growth models with greater speed and agility than ever
Tech companies are providing the regionrsquos CFOs with information technology that converts traditional internal and external data into rich visual insights
ERPANALyTICS
Donrsquot discoveritrsquos counterfeittoner afteritrsquos too lateOriginal HP Toner works first time every time1 unlike cheap toners which fail over half of the people who try it2 Non-HP toner can compromise your printerrsquos performance to give you streaked blotchy or faded prints Only original HP Toner cartridges deliver unmatched quality for the most professional-looking prints 100 of the time1
1 A QualityLogic 2010 study commissioned by HP comparing original HP LaserJet Monochrome print cartridges with nine brands of non-HP toner cartridges available in Europe Middle East and Africa for the HP LaserJet P1505 and P4015 printers HP 36A and 64A For details see wwwqualitylogiccomEMEAmonotonertestpdf 2 From a 2012 EMEA Lyra Research study commissioned by HP Results based on a total of 1050 HP Color LaserJet users who have used both original HP and non-HP toner cartridges of whom 552 experienced problems with non-HP cartridges
copy 2014 Hewlett-Packard Development Company LP
42
Private Equity ANALyTICS
wwwthecfomecom
The rise of PE-backed acquisitions is forcing CFOs to develop an entirely new set of skills
THE PRIvATE EQUITy CFO
The CFOrsquos utility in the world of private equity is without question on the rise The once-held belief of the CFO existing solely as the ldquoaccounting guyrdquo has been abandoned Over the last 20 years the role of CFO has become more demanding - requiring not just finance and accounting acumen but also a financial literacy in corporate planning risk management MampA assetliability management and regulation This evolution has been driven by a number of
key factors Yet the private equity industry which is now reshaping the corporate landscape through active ownership is by far the most significant factor driving change within the role of the CFO
PE-backed buyers today represent a larger percentage of overall buyers in the corporate acquisition marketplace than ever before Data provider Prequin estimates that as of June 2014 the capital raised by PE funds that
has not yet been deployed amounts to $114 trillion globally The result of this ldquodry powderrdquo is that a vast quantity of corporate acquisitions in the coming years will be undertaken by the private equity industry As such CFOs will be more accountable to demanding ldquosmart moneyrdquo shareholders than at any point in recent history Budgeting accounting and financial reporting will no longer exist as sole priorities but as a core competency among a
ldquoBy effec-tively using real-time data CFOs can create a dynamic process that proac-tively drives performance account-ability and value crea-tionrdquo
By Aaron Heidari
43
Private Equity ANALyTICS
wwwthecfomecom
robust set of complimentary and required skills Most of all the bar for CFOs is rising as PE investors will only accept above-average performance from their management teams
CFOs were once more reactive in function setting budgets based on other executivesrsquo plans and managing the flow of reporting to shareholders on a quarterly and yearly basis Today CFOs are required to become proactive managers of their respective businesses alongside their C-suite compatriots using a granular data-driven approach to aggregate analyse implement and report on every aspect of a companyrsquos operations
An important tool to drive this value creation process are KPIs Yet KPI structures including both aggregation and output are generally not up to the standards required of private equity investors prior to an investment being made
ldquoThe benefits of using KPIs and monthly reporting packages are significant By effectively using real-time data that is actionable and by partnering with functional area leaders within the organisation company CFOs can create a dynamic process that proactively drives performance accountability and value creationrdquo said Amanda Robinson Vice President of Accordion International in Dubai a consulting firm which is comprised of former private equity and investment banking professionals who
MENA region Cumulative Funds Under Management Since 2008
Source Zawya private Equity Monitor
19 636 20 36321 586
22 64323 506 24 250
-
5000
10000
15000
20000
25000
2008 2009 2010 2011 2012 2013
Cu
mu
lati
ve f
un
ds
($ m
)
$15mAverage MENA PE investment size in lsquo13
50Percentage of investment in IT and energy sectors
STAT FACTS
44 wwwthecfomecom
work with companies to deliver cost-effective project execution services
Active shareholders whose money it is being spent will typically require a data-driven justification before approving any budgets capital expenditures or new acquisitions Furthermore in many private equity backed companies the use of debt and the matching of shorter-term bank financing with longer-term investments will only be considered after a robust analysis is conducted to understand the companyrsquos ability to service that debt in the future This evaluation is not simply to identify revenues expenses and profits Itrsquos about drilling down into every transaction and rooting out data processing and reporting At least that is the expectation
The most valuable CFOs are those who have the ability not just to scrutinise and understand the financials but all also possess a wider grasp of the underlying data which truly comprise the business As an investor who has just acquired a stake in a new business I want a CFO who can manage the transition and stay ahead of my expectations Most of all a CFO should impress upon the companyrsquos shareholders a new way of doing business The first 100 days of an acquisition are said to be the most important During this period the CFOrsquos worth will be established when the new financial plan is due and the platform for the next five years of growth is presented
A CFO should man-age the tran-sition stay ahead of expectations and impress upon the companyrsquos shareholders a new way of doing business
Investment Volume By Sector Since 2006
Investment Volume By Sector in 2013
Source Zawya private Equity Monitor
1
3
30
17
3
28
3
4
6
4
6
5
17
9
9
6
9
5
8
6
6
2
3
10
Education
Education
Information Technology
Information Technology
Other
Other
Telecoms
Telecoms
Media
Media
Transport
Transport
Oil amp Gas
Oil amp Gas
Healthcare
Healthcare
Consumer goods
Consumer goods
Food amp Beverages
Food amp Beverages
Leisure
Leisure
Manufacturing
Manufacturing
ANALyTICS
Private Equity
2000857 NBAD ratibi mag ad 200x268 Finalindd 1 92514 1017 AM
46 wwwthecfomecom
THE FUTURE OFACCOUNTING EDUCATIONAddRESSINg THECOMpETENCY CRISIS
Have you ever stopped to think about how the accounting profession has changed since you graduated from college Recent graduates can answer this question by reflecting on the last two or three years whereas for other more seasoned professionals answering this question requires a bit more thought and memory searching Indeed we can all think of ways that the field of accounting is remarkably different today from the one we likely envisioned during our college daysmdashregardless of which decade we each donned our cap and gown This gradual transformation of the accounting profession leads to two important questions related to competencies bull Which competencies are important for success inaccounting todaybull Were these competencies consciously developed as partof your accounting degree programme
We suspect that more than a few of you would answer ldquonordquo to the second question Put another way our profession may be facingmdashmore so than at any time in the pastmdasha ldquocompetency crisisrdquo that is a gap between the competencies needed for professional success and those taught in our college classrooms today We propose a three-pronged strategy or ldquogame planrdquo for overcoming this competency crisis and in turn better preparing accounting graduates for the challenging world they will face First all of us accountants need to understand the changes that have already taken place in our profession and perhaps more importantly anticipate the changes that are on the horizon Second we need to educate ourselves and future generations of accountants so that as a collective group we can deliver the expanding set of competencies demanded in todayrsquos dynamic organisational
contexts Third as professional organisations and as individuals we need to think beyond ourselves by asking How can I (or we) help the accounting profession address the competency crisis
A Shift Toward Integrated ThinkingMany articles and white papers have been written that describe in detail the changes that have occurred in our profession over the last few decades but for our purposes wersquod like to distill these changes down to one crucial idea How does the accounting function add value to an organisation Accountants have evolved from support-oriented personnel who hand off information to others who actually make decisions into business partners who ldquohave a seat at the tablerdquo with managers
By peter C Brewer James E Sorensen CpA CgMA and david E Stout
47wwwthecfomecom
1048576bull What regulatory risks mayaccompany the proposal
1048576bull What social and environmentalfactors will we face if for example the proposal requires investing in overseas operations
1048576bull What types of employeeresistance may arise if we implement the proposal and how will we overcome the root causes of any such resistance
1048576bull Can and how should we valuefuture options associated with the proposal such as expanding or contracting the investment over time as new information becomes available
1048576bull Should we use debt or equity tofund the proposal
In short accountants have evolved to become integrated thinkers who enable EPM by partnering with managers across the organisation to add value Yet as EPM has gradually become the centrepiece of our professionrsquos value proposition accounting education hasnrsquot done enough to embrace it To overcome this gap wersquod like to further suggest that the concepts of competency integration and EPM need to come ldquofront and centrerdquo as we move forward in educating the next generation of successful accounting practitioners
Accounting Education No Longer on the SidelinesRecently a task force consisting of members of IMAreg (Institute of Management Accountants) and members of the Management Accounting Section (MAS) of the American Accounting Association (AAA) addressed the competency issue How should accounting education change fundamentally to help close the competencies gap The efforts of the task force led to
cash flows and how to apply discounted cash flow (DCF) decision models such as net present value (NPV) is of foundationalmdashsome might say critical mdash importance But integrated thinkers draw on an understanding of organisational strategy coupled with a broader set of competencies (beyond what might be considered technical or foundational knowledge) when making these types of decisions For example they consider how behavioural issues may influence the capital investment decision-making process Perhaps the financial estimates contained in the NPV analysis are too optimistic because the manager who prepared the numbers has a vested interest in seeing the project approved Decision makers also need to consider issues such as leasing vs buying a capital asset and the corresponding impacts on the financial statements and ratios that are tracked by investors and lenders What nonfinancial factors are associated with the proposed investment Add in the tax consequences of capital investment decisions coupled with the need to maintain internal control over any new business processes tied to these decisions and the need to think in an integrated fashion across a variety of accounting competencies becomes apparent
Furthermore becoming a true business partner with managers across the organisation requires more than simply integrating various accounting competencies It also means thinking like a business manager or a chief executive officer (CEO) Returning to the capital budgeting example an integrated thinker will ask questions such as
across the organisation Together they formulate and plan strategies then participate in collaborative decision-making processes that execute those strategies in a manner that adds stakeholder value Said another way accountants have evolved to become enterprise performance managers This shift in our orientation from a support function to an enterprise performance management (EPM) role has enormous implications for defining the determinants of success within our profession the most important of which involves becoming collaborators and ldquointegrated thinkersrdquo Take for example a common but important business decision process capital investment analysis Certainly technical knowledge regarding how to estimate relevant after-tax
48 wwwthecfomecom
expanding capital budgeting discussions to include financial statement impacts tax consequences and internal control issues integrates topical coverage across the External Reporting and Analysis Taxation Compliance and Planning and Assurance and Internal Control competencies shown in Figure 1
Third accounting curricula can incorporate a broader set of management competencies For example evaluating capital investment proposals from the perspectives of change management (Leadership) social and environmental issues (Ethics and Social Responsibility) regulatory concerns (Governance Risk and Compliance) and capital structure (Additional Core Business Competencies) brings a CEOrsquos perspective to the decision-making process
Fourth accounting curricula should include foundational competencies such as proficiency with spreadsheets and written and oral communication In the context of capital budgeting this may include asking students to use Microsoft Excel to perform a sensitivity analysis and then to present their findings to the entire class
Working to Fix the ProblemAt this point although you may agree with us that therersquos a competency crisis within the accounting profession you may be wondering What does this have to do with me What can my organisation do to help address this so-called competency crisis The answer a lot Practice partners and academic partners can help the accounting profession overcome the competency crisis That said letrsquos take a closer look at the role of practice partners first
improvement) and accounting competencies (external reporting and analysis planning analysis and control taxation compliance and planning information systems assurance and internal control and professional values ethics and attitudes) Of critical importance to the framework is the assumption that the set of competencies contained in Figure 1 would be developed and integrated over time through a blend of formal education (including continuing education) training and job experience
What levels of integrationmdashon the road to developing integrated thinkers in accountingmdashare possible First accounting educators can integrate within a single accounting competency So referring back to our capital budgeting discussion teaching computational models such as NPV analysis coupled with a review of various behavioural issues associated with capital investment decisions would be an example of integrating within the Planning Analysis and Control competency listed in Figure 1
Second professors can integrate across accounting competencies For example
a recently published article that contains a proposed framework for accounting education reproduced here as Figure 1 The framework is general in the sense that itrsquos meant to apply to all accounting students not subgroups based on career specialisation such as tax assurance services corporate finance and the like Itrsquos based on the idea that accounting educators can better prepare students to deliver our professionrsquos EPM value proposition through integrated competency-oriented curricula (For more see ldquoFocusing Accounting Curricula on Studentsrsquo Long-Run Careers Recommendations for an Integrated Competency-Based Framework for Accounting Educationrdquo in the May 2014 edition of Issues in Accounting Education)
A glance at Figure 1 reveals three levels of competencies foundational competencies (communication ability to leverage technology and analytical thinking and problem solving among others) broad management competencies (including leadership ethics and social responsibility and process management and
Proposed Competencies-based Framework for Accounting Education
FOUNDATIONALCOMPETENCIES
ACCOUNTING COMPETENCIES
BROAD MANAGEMENT COMPETENCIES
leadership
ExternalReportingamp Analysis
PlanningAnalysis
amp Control
TaxationComplianceamp Planning
InformationSystems
Assuranceamp InternalControl
ProfessionalValues Ethics
amp Attitudes
Communication
Quantitative
Interpersonal
Technological
Analytical Thinking ampProblem Solving
Ethics amp SocialResponsibility
ProcessManagement ampImprovement
GovernanceRisk amp
Compliance
AdditionalCore BusinessCompetencies
Although you may agree with us that therersquos a competency crisis within the account-ing profes-sion you may bewondering What does this haveto do with me
A practice partner should be or become a CMAreg (Certified Management Accountant) maintain professional certification by completing required Continuing Professional Education (CPE) hours and regularly read the IMA publications Strategic Finance and Management Accounting Quarterly
In addition there are a number of excellent resources that deal with topics covered in this article and that IMA makes available to its members
Strategic Finance PowerPacks(wwwimanetorg SFPowerPacks) These are resources focused on contemporary topics similar to those discussed earlier Current offerings include Risk Management Strategic Planning IT Skills amp Software and Internal Controls Each PowerPack includes a combination of resources such as research studies articles and links to webinars
Statements on Management Accounting (SMAs)(wwwimanetorgresources and_publicationsresearch_ studies_resourcesstatements on_management_accounting aspx) SMAs represent monographs classified into one of the following six categories Leadership Strategies and Ethics Technology Enablement Strategic Cost Management Business Performance Management Finance Governance Risk and Compliance and the Practice of Management Accounting Multiple items are available within each category For example the Practice of Management Accounting category includes (among other items)
49wwwthecfomecom
the Definition of Management Accounting and Implementing Shared Service Centres
Research Studies (wwwimanetorgresources_and_publicationsResearch_Studies_and_ResourcesAll_reportsaspx) The ldquoThoughtLeadershiprdquo section of IMArsquos website includes research covering a broad range of issues classified into seven categories For example under the ldquoGlobal Business Environmentrdquo category the following two research reports are available ldquoKey Differences Between IFRS and US GAAP Impact on Financial Reportingrdquo and ldquoCosting Methodologies and Cost Management Practices in the Peoplersquos Republic of Chinardquo
IMA Leadership Academy (www imanetorgprograms_events leadership_academyaspx) As described on the IMA website this programme is designed to assess a memberrsquos leadership status enhance that individualrsquos skills (principally through monthly webinars) and recognise leadership achievements These benefits are free to members
How You Can Make a Bigger Impact In addition to attending local regional and national IMA meetings consider inviting a small group of students to each chapter meeting This could be a wonderful (and relatively low-cost) option for mentoring aspiring accountants and finance professionals providing networking opportunities and introducing students to cutting-edge issues regarding the practice of management accounting Joining a university accounting
advisory group may be another way to influence the development of EPM in that institutionrsquos curriculum design
Other methods to enhance EPM in your organisation include (1) forming user groups within your company your local IMA chapter or your industry to review and share EPM experiences (2) encouraging advancement in the firm to be linked to EPM proficiency (3) focusing your companyrsquos recruiting efforts on candidates who display a background in andor understanding of EPM and (4) organising cross training within your company to enhance a mutual understanding of each otherrsquos respective roles
Finally visit the Competency CrisisTM website (http competencycrisisorg) set up by IMA to unite the accounting and finance constituencies professionals students employers academics and professorsmdashand explore competency issues through the lens of each stakeholder group The site is designed to ldquoencourage a discourse spur action and create a community dedicated to resolving the serious crisis of competency present in the professionrdquo Special sections of the website are devoted to educators students and employers professionals
Our Partners in Education Much like a practice partner an academic partner should be or become a CMA maintain professional accreditation by completing CPE hours and regularly read IMArsquos publications
Academic members of IMA can pursue and actively promote the CMA programme at their respective institutions
50 wwwthecfomecom
IMArsquos website contains helpful resources including an exam content overview content specification outlines for each of the two parts of the CMA exam and learning outcome statements The current exam covers some of the professional competencies represented in Figure 1 A summary of changes to exam content which will be effective in January 2015 is provided on the IMA website in News amp Media Relations which is located under ldquoAbout IMArdquo (See the press release dated March 24 2014) Other helpful resources include ldquoICMA Announces CMA Exam Content Changesrdquo in the April 2014 issue of Strategic Finance as well as ldquoManagement Accounting Career Readiness Shaping YOUR Curriculumrdquo
These forthcoming changes are based on the most recent IMA study of the knowledge and skills needed by management accountants from the view of CFOs controllers and other accountingfinance professionals from around the world
Also consider taking a group of your students to the IMA Student Leadership Conference held each November The Conference provides excellent networking opportunities for you your students and practicing professionals Students can learn firsthand from Conference presenters the challenges and opportunities facing finance and accounting professionals today
Moreover if your institution doesnrsquot currently have an IMA Student Chapter consider forming one One of the authors of this article David Stout reinstituted the student chapter at his school (Youngstown State University) after travelling with a group of his students to the IMA
Student Leadership Conference in Cleveland Ohio Through an IMA Student Chapter on campus students are able to work closely with a sponsoring local IMA chapter and bring to campus speakers who are experts in a wide range of topics including those discussed earlier in this article Each year student chapters compete for an Award of Excellence (AOE) and recognition as an Outstanding Student Chapter In addition IMA student members are able to engage in networking activities leadership training mentoring and community service programmesmdashall through their local chapter
You also might consider volunteering to serve as a Campus Advocate In this role yoursquoll represent IMA in all major matters of interest to your students (scholarship opportunities starting a student chapter mentoring and the like) and to your institution (for example leveraging IMA resources to advance the relevancy of the accounting curriculum use of educational case studies published in the IMA Educational Case Journal and access to IMArsquos ethics curriculum)
And if you havenrsquot yet done this ask IMA to endorse your accounting programme (information is available at www imanetorgeducator_resources indexaspx) This programme is designed to identify business curricula that meet the quality educational standards required to prepare students to earn the CMA designation Endorsement is based on an analysis of the curriculum and topics covered on the two-part CMA exam Currently 12 programmes have been endorsed
Finally if your school has an IMA Student Chapter consider participating in the annual IMA Student Case Competition where students are asked to propose a solution to a real world problem (Cases are solicited each year by Raef Lawson IMA VP of Research and Policy and IMA Professor in-Residence) Finalists make their presentations at IMArsquos Annual Conference amp Exposition before a set of judges consisting of accounting faculty members and practitioners Each year a new case is published in the August issue of Strategic Finance for students to use for that yearrsquos competition
Working TogetherIn this article we have summarised the changes that have affected the accounting profession and provided a competencies-based framework for guiding accounting educators in responding productively to those changes As a management accountant you know that implementing change in any organisation let alone within an entire profession never comes easily To be successful in overcoming our professionrsquos competency crisis IMArsquos practice and academic partners will need to assume leadership roles in defining enterprise performance management as the cornerstone of the accounting professionrsquos value proposition
This article was orginally published in the August 2014 issue of Strategic Finance It appears here with the permission of The Association of Accountants and financial professionals in Business
We need to educate ourselvesand future generations of account-ants so that as a collec-tive group we can deliver theexpanding set of com-petenciesdemanded in todayrsquos dynamicorgani-sational contexts
THE POWERFUL AND THRIFTY OFFICE ALL-ROUNDERS
The new ECOSYS M3560idn series will astound you With their print speeds of up to 60 pages per minute they are among the most productive A4 bw multifunctionals on the market We nevertheless managed to keep their ecological footprint and total cost of ownership impressively low by using our well-known ECOSYS technology and equipping the devices with our renowned long-life components The result Not only less waste and lower maintenance costs but also less hassle for you and all your colleagues You will also greatly appreciate the many customisation possibilities of the devices equipped with KYOCERArsquos open solution platform HyPAStrade as it allows you to tailor the device to your needs So yes we are proud of our new range of MFPs and can hardly wait to share their numerous benefits with you
For more information please contactKYOCERA Document Solutions Middle East | PB Box 500817 DubaiUAE | Tel +9714 4330 412 | Fax +9714 4231 944KYOCERA Document Solutions Europe BV - wwwkyoceradocumentsolutionseuKYOCERA Document Solutions Inc - wwwkyoceradocumentsolutionscom
52
ACCAINTERVIEW
wwwthecfomecom
GLOBAL By ASSOCIATION
across the region from our key employers and learning provider partners to our active and growing student and member base I want to understand their challenges and priorities and how ACCA can work with them to help support the economic success of the region
What can a CFO gain from working with ACCAThe ACCA qualification is about complete finance professionals For CFOs it brings the technical knowledge vital to business success complemented with the strategic management skills and ethical competence crucial to an organisationrsquos success As an organization ACCA in the UAE brings CFOs access to that local and global network of peers and expertise along with our leading research and insights that help them to keep up to date on the issues that matter most
Are there any initiatives in place to leverage the recently announced partnership with AAA
How are the ACCArsquos many years of activity being applied to the Middle EastACCA has now had a presence in the UAE for well over a decade During that time we have established strong relationships across the Middle East epitomised by the recent signing of our Strategic Partnership with AAA As a national body in choosing to partner with ACCA they recognised the local and global perspective we bring We are continuing to work with students members and employers across the Middle East to build their networks knowledge and business success through events research and insights and access to a growing number of online resources
Which initial priorities are among your key aims upon joining the organisationrsquos efforts in the UAEIn the first few months I hope to build on the success of the team in the UAE My priority will be to meet as many of our key stakeholders
The Association for Chartered Certified Accountants (ACCA) provides its services across a number of international borders The recent announcement of Lindsay Degouve de Nuncques as the new head of the Associationrsquos UAE chapter further exemplifies the ACCArsquos reach based on her previous work in the UK Nuncques shares here what she brings to the Middle East and just how globalisation has driven her ascent
53
ACCAINTERVIEW
wwwthecfomecom
The strategic partnership with AAA is the first of its kind in the region Students who complete the UAECA qualification will be entitled to both the AAA and ACCA designations and ACCA members in the UAE will also be eligible to apply for AAA membership This is a very exciting development in the market and together AAA and ACCA will be working to deliver maximum value to all our stakeholders from this partnership As we launch the UAECA qualification this activity will start in earnest
Which key industries will you be spotlighting in the Middle East in the months aheadOur experience of working across all sectors and levels of organisations globally gives ACCA a unique insight into all types of industries We will continue to be working with employers across the spectrum in the months ahead to help them gain the insight and make the connections that drive businesses to succeed at whatever they do
ldquoThe ACCA qualification is about complete finance professionals For CFOs it brings the technical knowledge vital to business success complemented with the strategic management skillsrdquo
54
Islamic FinanceMARKET OUTLOOK
wwwthecfomecom
In its 10th instalment the Forum is hosted in Dubai as a direct result of the UAErsquos increasing importance in the world of global Islamic finance
THE WORLD ISLAmIC ECONOmIC FORUm LANDS IN DUBAI
In Dubairsquos continued quest for leading the world across a range of spectrums the Emirate accelerated its desire to become the worldrsquos leading hub for Islamic finance by hosting the 10th installment of the World Islamic Economic Forum (WIEF) Delegates from dozens of countries attended to take part in a three-day event held at Madinat Jumeirah which rests alongside Dubairsquos gleaming coastline Held under the patronage of His Highness Sheikh Mohammed Bin Rashid Al Maktoum the
Vice President and Prime Minister of the UAE and Ruler of Dubai key speakers included The Honorary Dr Zeti Akhtar Aziz Governor of the Central Bank of Malaysia HE Kairat Kelimbetov Governor of the National Bank of Kazakhstan The Honorary Datorsquo Sri Mohd Najib Tun Abdul Razal Prime Minister of Malaysia and HE Xavier Bettel Prime Minister of the Grand Duchy of Luxembourg
Launched in 2006 in Malaysia WIEF has grown in tandem with the increased
Delegates from dozens of countries attended WIEF to take part in the three-day event
sophistication and reach of Islamic finance After a successful event in London in 2013 amidst increased interest in Islamic finance across Europe WIEF relocated to Dubai where the local business structure is keen to host halal finance
Said Hamad Buamim President and CEO Dubai Chamber of Commerce and Industry co-organisers of the event ldquo[The forum] is the start of a new chapter of cooperation between Dubai and the world as part of
55
Islamic FinanceMARKET OUTLOOK
wwwthecfomecom
Dubai Capital of Islamic Economy visionhellipestablishing a unified regulatory authority to provide the framework for standards across halal industries will significantly accelerate growth Likewise we need to see increased cooperation and partnership between the public and private sectors This is already happening with great success here in Dubairdquo
The order of global cooperation needed to facilitate growth across the Islamic finance world was more than apparent at WIEF based on how many differing nations were represented at the event The exhibitorrsquos hall was populated with a number of key Malaysian stands representative of the Southeast Asianrsquos ranking as the global leader in Islamic finance Also present were companies from Saudi Arabia also a key locality in the worldrsquos halal industries An interesting yet prescient presence was of attendees from South Korea a nation which is eager to participate in Islamic finance and will be hosting the WIEF Pyeongchang Roundtable in December 2014
ldquoGangwon is a province located in Korea which is very interested in new business opportunities Wersquove realised the strength of the Islamic economy and have come here with many different companies The first type is based in real estate investment We also have companies which want to export their products to the Islamic economy based on their halal qualities And Gangwon will also be hosting the Winter
ldquoKorea is very interested in the strength of the Islamic economy and wants to export its products based on their halal qualitiesrdquo
56 wwwthecfomecom
$247trillionProjected value of halal products industry in lsquo18
125Muslim percentage of global tourism expenditure
STAT FACTSOlympics in 2018 and are presently seeking investments for this as wellrdquo said Seong-hun Kim a member of Gangwon Province Governmentrsquos Export Support Team
Dubai proved to be an excellent place for the event considering how well the UAE is able to so regularly corral international cooperation A key sign of this was witnessed recently when Luxembourg now considered the third most important base for Islamic finance globally opened a finance office in Dubai International Finance Centre The European nation also opened a euro200 sukuk earlier this year which was quickly oversubscribed
The prime minister of Luxembourg offered the WIEF audience a riveting speech which detailed just how international the Forum has become whilst encouraging more of the world to support the growing influence of Islamic finance
Said Bettel ldquoWe need to innovate more economic partnerships for growth We sometimes need to reengineer relationships but also have to make sure these relationships remain sustainable Growth in one country also brings growth to others as long as this is guided by free market initiatives Free trade and free flow of capital combined with innovation leads to prosperity We have all gathered here in Dubai to explore the future of Islamic finance and Luxembourg is also a pioneer of Islamic finance in Europe The Islamic financial sector has a major role to play in continued global growthrdquo
The Islamic Corporation for the Development of the Private Sector (ICD) is based in the Kingdom of Saudi Arabia where it manages an international fund worth $2 billion half of which is available for subscription With shareholders in more than 50 countries and a sovereign sukuk fund recently launched in West Africa the ICDrsquos CEO Khaled M Al Aboodi attended WIEF this year excited to participate in the global event
How does the ICD approach its attendance at the World Islamic Economic ForumI think the Forum is one of the best places for discussing the financial issues of the OEC member countries It has been around for ten years and has grown to become a very important platform for discussion Wersquore here to attend and listen but also to network Itrsquos a great networking platform and a place to share views whilst letting everyone know what we have to offer
How has Islamic finance changed over the yearsOf course itrsquos growing in a large scale Some of it actually needs more support particularly with respect to regulatory frameworks Wersquore trying to partner with many international organisations like the IMF to try to provide support to countries to adapt regulation for Islamic finance Sukuk issuance is one of the biggest issues that needs to be addressed because there is a huge amount of liquidity in this arena Due to issues related to regulation sukuk issuance can be costly But with the regulation we are confident it will be on a level playing field with other forms of finance Compliance is a major area where more work can be done The Forum started with a roundtable on sukuk which shows how helpful WIEF has been over the years
What type of work does ICD do internationallyICD helped the government of Senegal to issue the first sovereign sukuk This was successfully issued last summer Progressing in this manner is something wersquod like to see continue across West Africa in order to utilise its resources with aiding development in the region in mind
QampA WITH KHALED M AL ABOODI CEO OF ICD
Islamic FinanceMARKET OUTLOOK
OFFICIAL SPONSORS
ENDORSED BY OFFICIAL HOST OFFICIAL
COMMUNICATIONS PARTNER
MEYDAN HOTEL DUBAI UAE19 - 20 NOVEMBER 2014
WOMENOMICSthe next emerging market
TAKE PART in making change happen UNITE with business and through leaders from across the globe
PARTICIPATE to the expansion of a modern and inclusive economy
58
Gautam PradhanINTERVIEW
wwwthecfomecom
SUCCESS BEyOND BOUNDARIES
in other management roles such as strategic decision making mentoring and leading efficiency and productivity across a range of other departments and functions as well as a being a catalyst in ensuring that the boardrsquos vision for the organisation is achieved
A significant percentage of NMDCrsquos shares are owned publicly Does the CFO play a role in balancing the interests of the shareholdersAs a CFO balancing the shareholdersrsquo interests is definitely part of my responsibility In order to achieve this goal there needs to be a careful evaluation of each decision while keeping the short-term and long-term goals of the company in mind At NMDC we actively implement a system where we utilise a balance scorecard as a method of ensuring that all our primary objectives are met yet at the same time continuously enhance our relationships with our shareholders
NMDC has completed various projects across the Emirates Are there plans to move abroadAs NMDC moves towards becoming an international player our strategic expansion plans are focused in areas within the GCC region and India In line with this strategy we opened
How has a company with such a unique set of deliverables grown so consistently over the yearsOur organisation strongly believes that the core to our strength is the people process and equipment A strategic decision led by our Board of Directors and the senior management has been implemented that required us to consistently invest in these three aspects to help expand our business beyond the territorial boundaries of the UAE and at the same time enhance what we can offer which is relevant to these segments We attribute our success to the efforts which every employee contributes We also strongly believe in the ldquoWe can make it happenrdquo principle The management raises the index of performance while setting SMART objectives within the organisation and encouraging the employees to achieve them
How has your position as the CFO changed over NMDCrsquos 35 years of operationAs the market evolves and business dynamics change my role as the CFO has become complex and more challenging A few years back I was mainly focused on bookkeeping accounting and other financial responsibilities such as arranging bank facilities But moving forward I became more involved
The UAE is progressively becoming a hub for world-class infrastructure The country has duly impressed the rest of the globe with noteworthy land developments showcased across the emirates Among the remarkable landscapes found in Abu Dhabi are the Corniche Beach Yas Island and Sir Baniyas Island Behind these successful projects is NMDC the dredging division of Abu Dhabi National Oil Company (ADNOC)
In an interview with CFO Magazine Gautam Pradhan Chief Financial Officer NMDC shares an exclusive look into the companyrsquos international blueprint for growth and his dynamic role as a strategic leader of one of the best in dredging and marine construction in the Middle East
59
Gautam PradhanINTERVIEW
wwwthecfomecom
branches in Qatar Bahrain Oman and India This has paid rich dividends recently as projects of strategic importance are bagged in Qatar and Bahrain Furthermore NMDC (UAE) has recently played a key role as a leader of an international consortium with Royal Boskalis Westminister (Netherlands) and Jan De Nul Group (Belgium) for the awarding of the Suez Canal Dredging project in Egypt Moving forward we have devised a strategic approach that will enable us to play a key role in the development of Indiarsquos marine infrastructure
What are the global strategies that are part of the CFOrsquos responsibilitiesAs CFO understanding the macro economic scenario risk analysis and mitigating those risks are all a part of my responsibilities I also have to have a proper comprehension
ldquoA few years back I was mainly focused on financial responsibilities moving forward I became more involved in strategic decision making mentoring and leading productivityrdquo
Gautam PradhanINTERVIEW
60 wwwthecfomecom
of the challenges faced by the company in terms of dealing with foreign contracts direct and indirect taxes and hedging and managing the integration process These are essential to enhance shareholders wealth and mitigate undue risk
How significant is accountancy for NMDC in its operations Why exactlyAccountancy is the lifeline of any company it does not only record the finances it also reflects the health of the organisation The MIS reports analysis trends and statistical information go a long way toward effectively providing
the diagnostic approach essential for the company
How have NMDCrsquos environmental activities helped the companyrsquos bottom lineNMDCrsquos work is well-synchronised with our environmental activities and specifically with nature Our activities are closely linked to sand and water and we view such activities with strategic importance Projects such as increasing water supply to mangroves and beach nourishment help us support the environmental activities while adding to our bottom line
ldquoAccountancy is the lifeline of any company it does not only record the finances it also reflects the health of the organisationrdquo
A burgeoning slice of Abu Dhabi coastline
The largest business awards
in the GCC30th November Dubai
nominate now at wwwstarsofbusinessawardscom
Stars of Business has become an iconic awards brand like no other in the region It recognizes the very best SMEs across 26 business categories Itrsquos universally respected as scientifically assessed and unimpeachably judged
327000 SMEs across the UAE$234 billion estimated total revenue of the SME sector4974 Awards entries in 20131856 Individual company applicants
Presenting Partner Strategic SME Partner Gold Sponsor Gold Sponsor VIP Hospitality Partner Supporting Partner
Trade Facilitator PartnerTrade Credit PartnerLogistics Partner
Institutional Partner Institutional Partner Event Partner
OrganiserPublisherMedia Partner Media PartnerPort Authority Partner
62
David Allen INTERVIEW
wwwthecfomecom
What went into completing your bestseller ndash Getting Things Done (GTD)After twenty years of researching developing and implementing a methodology for achieving stress-free productivity based upon
thousands of hours spent desk-side with
some of the best brightest and busiest people in the world I decided to write the manual for it Thatrsquos what Getting Things Done is
What are the five phases of mastering workflowIn order to get
any situation under control so
you can focus you will utilise these five
steps Whether yoursquore managing your kitchen
or your company you will need to collect and capture what has your attention clarify what if anything to do about it organise it according to what it means to you review and reflect upon it in relation to
Todayrsquos evolving CFO is often caught between the world of business set-up generating revenue managing employees and building strong company infrastructure When can things actually get done What can one do to boost productivity and master workflow World-renowned business coach David Allen has the answers
PRODUCTIvITy PRINCIPLES WITH
DAvID ALLEN
63
David Allen INTERVIEW
wwwthecfomecom
those are greatly subvertedHow does one maintain a fair balance between the time spent planning and actually getting things doneYou simply need to spend just the amount of time you need to to trust that what you are getting done is the right thing to be getting done in the moment It takes as long as it takes to get to that point Why would you do anything less
How can one apply your core productivity and workflow principles to todayrsquos technologically driven environmentThe principles and their techniques are system-independent Whether you have meaningful input from the Internet your smartphone or a conversation in the hall you must engage with it equally Technology has simply increased the flow of input and ease of distraction in your world
There is a lot of talk about how connected wersquove become and how connectivity is driving tremendous business growth Does connectivity actually come with its fair share of downsides
Connectivity is obviously a two-edged sword We can have intimate productive and creative interaction instantly with someone on the other side of the world and we can just as easily be distracted and seduced into those engagements when they may not be the best use of our attention and resources Donrsquot shoot the medium Itrsquos all simply bringing attention to your clarity of direction and priorities or lack thereof
Could you share a few quick tips with our readers to instantly boost productivityWrite everything down that has your attention Decide the very next actions required to get closure on all of them Any next actions that require less than two minutes do instantly Park reminders of everything else somewhere that yoursquoll see when you can do something about them
We are currently facing a massive information overload What are some basic principles you could suggest to mentally organise such large amounts of dataConstantly ask yourself Where am I going Whatrsquos important and rewarding to me Is this information
the whole and then engage your resources with intuitive trust
As a CFO how can you transfer efficient workflow management skills to your employees Itrsquos very difficult to legislate processes for individuals ndash you can really only hold them accountable for their results But if you are managing your own commitments and intersections with them with integrity and rigour it will automatically force your team to ldquostep up to the platerdquo in their own behaviours in order to meet your standards If you request their complete list of their company projects and they canrsquot produce it thatrsquos a sign theyrsquore not in control If they make a commitment to you that they havenrsquot kept thatrsquos data about their performance GTD is simply about good operational business practices
With so many planning and organising activities in your methodology is there a risk of losing spontaneity as a strategistThe reason for these best practices is to optimise freedom creativity and spontaneity Without them
ldquoBut if you are manag-ing your own com-mitments and intersec-tions with them with integrity and rigour it will automatical-ly force them to ldquostep up to the platerdquo in their own behaviours in order to meet your standardsrdquo
64 wwwthecfomecom
supporting that Park whatever you find potentially meaningful somewhere that is easy to access when needed
Being an entrepreneur is a non-stop job How do you ensure that you have an adequate work-life balance Pay attention to what has your attentionmdashwith regard to anything Your health relationships career finances etc Notice when something might be ldquooffrdquo and make good decisions about what you need to do to get it back ldquoonrdquo again
Does your work teach people to be efficient or effective In essence they are the same thing Effective choices are generated by efficiency on a higher level If you want to implement strategy most effectively it demands utilising your resources optimally which is efficiency
Does motivation actually improve quality of work or purely quantityDepends on the focus of the motivation You can be motivated to work harder and you can be motivated to work smarter
What is your favourite productivity mantra that
you implement in your day-to-day lifeUsing my own in-basket and note-taking devices to capture potentially meaningful and valuable ideas and soon afterwards clearing all of them out by deciding what to do about them if anything
Your books seminars and other work inspires many individuals and businesses Who is your personal inspiration or role model I have many about many different aspects of my life The only person though that I ultimately trust as my best guide is my higher self which I try to access as frequently and clearly as I can
Finally what advice would you give to current business owners and aspiring entrepreneurs looking to gain complete control of their life and businessCapture what has your attention clarify what you need to do about it to get it off your mind organise the inventory of all your commitments at all levels review and reflect on all of that regularly relax and trust your inner wisdom to engage with the most appropriate thing in the moment
ldquoIf you want to implement strategy most effectively it demands utilising your resources optimallyrdquo
David Allen INTERVIEW
APPSTECH TALK
wwwthecfomecom 65
mAxImISE BUSINESS lsquoON-THE-GOrsquo WITH THESE HANDy APPS
ipAd SpECIAL
SAMSUNG UNvEILS GALAxY NOTE EDGE
Network
AP
Display
OS
Camera
Video
Audio
Additional Features
GoogleMobile Services
Connectivity
Sensor
Memory
Dimension
Battery
The availability of service may differ by country All functionality features specifications and other product information provided in this document including but not limited to the benefits design pricing components performance availability and capabilities of the product are subject to change without notice or obligation
Samsung Galaxy Note Edge Product Specifications
25G (GSM GPRS EDGE) 850 900 1800 1900 MHz3G (HSPA + 42Mbps) 850 900 1900 2100 MHz4G (LTE Cat 4 15050Mbps) or 4G(LTE Cat 6 30050Mbps)May differ by country and carrier
27 GHz Quad-Core Processor
56 inch (1419mm) Quad HD+ Super AMOLED (2560 x 1440 + 160)
Android 44 (KitKat)
Rear Facing 16 Mega pixel Auto Focus camera with Smart OISFront Facing 37 Mega pixel camera with f19Rear Facing Camera HDR (Rich tone) Selective Focus Rear-cam Selfie Beauty face Virtual Tour Shot ShotampMore Dual CameraFront Facing Camera Selfie Wide Selfie
Codec H264 MPEG-4 H263 VC-1 WMV7 WMV8 Sorenson Spark MP43 VP8 Recording amp Playback up to UHD
Codec MP3 AACAAC+eAAC+ WMA AMR-NBWB Vorbis FLAC()() Ultra High Quality Audio (~192KHz 24 bit) support
Multi WindowUltra Power Saving ModeVoice Recorder (Normal Mode Interview Mode Meeting Mode Voice Memo)Download BoosterS Health 35Dynamic Lock ScreenBriefingEdge screen UX Revolving Interaction Immersive apps(Camera Video S Note)Ticker board Express me Quick Tools Night Clock etc
Chrome Drive Photos Gmail Google Google+ Google Settings Hangouts Maps Play Books Play Games Play Newsstand Play Movie amp TV Play Music Play Store Voice Search YouTube
WiFi 80211 abgnac (HT80) MIMO PCIeGPS GLONASS BeidouNFC Bluetoothreg v 41 (BLE ANT+)IR LED (Remote Control) USB20 MHL 30
Gesture Accelerometer Geo-magnetic Gyroscope RGB IR-LEDProximity Barometer Hall Sensor Finger Scanner UV Heart Rate Monitoring SpO2 (Dependent on market)
32 64 GB Internal memory + microSD slot (up to 128GB)3GB RAM
1513 x 824 x 83mm 174g
Standard battery Li-ion 3000 mAh Fast Charging (Adaptive Fast Charging amp QC20)
wwwthecfomecom66
APPSTECH TALK
AIR DISPLAY
SQUARE REGISTER
Using this app you can connect your iPad to your computer and use it as an additional screen While working on an important presentation or sales proposal you can extend or mirror your computer screen on your iPad This app is compatible with both Mac and Windows computers Note that to use this feature you have to install Air Display on your iPad and a separate free app on your computer The computer and iPad also need to be on the same Wi-Fi network in order to work in-sync
For Mac users the app allows you to connect to up to four screens ndash all at the same time
Apart from the ability to convert your iPad into a wireless display whatrsquos also attractive about this app is that it allows you to control your computer wirelessly using your iPad
This fantastic application can serve as a mobile point of sale for your business It allows you to accept credit card payments ndash including Visa MasterCard Discover and American Express A transaction fee of 275 is charged for every time you swipe a card The sale amount is transferred to your account within two working days
Once you download the app you can sign up and register for a unique card reader solution called the lsquoSquare Readerrsquo (this is free) Square Reader encrypts all card details and ensures that the transaction is secure Once you receive your Square Reader you can connect it to your device and are all set
The application also offers added features such as transaction history connecting to a receipt printer creating employee logins and more
AED 3699
PRICE
Free
PRICE
wwwthecfomecom 67
APPSTECH TALK
DOCUSIGNHave you ever been in a situation where your employees need you to urgently sign a contract but arenrsquot able to physically reach you in time DocuSign solves this problem with its easy-to-use eSignature feature In three easy steps you can sign important documents and securely send them to your intended recipient
First you have to import the document to your device ndash this could be from Dropbox Google Drive or another select applications You then place your signature or any other important legal information you need to include such as initials Once you have finished working on the document send it back via e-mail
Whatrsquos particularly great about DocuSign is the great emphasis it puts on security ndash so that users donrsquot have to worry about getting into any legal trouble
Use DocuSign and never miss a deadline again
Free for basic version
PRICE
MPAYAn initiative by the Dubai eGovernment Department mPay is a simple application that allows you to make important payments Once yoursquove signed up and entered your payment details you are good to go You can pay your Dubai Electricity and Water Authority (DEWA) bills Etisalat utility bills Dubai Police fines Recharge SALIK and much more
A handy feature is its lsquoauto-rechargersquo option which you can use to set automatic payments
Free
PRICE
Opinion CIMAPERSONALITIES
wwwthecfomecom68
NEW HORIZONSBy geetu Ahuja Head of gCC at CIMA
The days of the traditional accountant working within a small community in a small town in a small market have long gone CFOs are now being referred to as Chief Frontier Officers as they travel from market to market overseeing their offices overseas This new expanded role has distinct advantages for both the company and the CFO who gain new skills and new insights from foreign branches a single hand at the helm of many markets provides business perspectives on a global scale and benchmarks across the board
On a personal level working abroad also has huge importance Robert Walters the specialist professional recruitment consultancy recently conducted a survey
of almost 2200 employees across a variety of professions exploring a number of topics which ranged from working practices and attitudes to careers The results highlighted some notable trends particularly for finance professionals
In career progression for example the survey showed that 50 of all accountants see working abroad as either lsquoessentialrsquo or lsquoextremely usefulrsquo to furthering their prospects more than banking professionals lawyers and IT workers ndash a strong indication of how accounting professionals are thinking about their future either within their existing company or with opportunities elsewhere
Accountants with globally recognised qualifications obviously have a greater chance of gaining some experience abroad and the lsquoGen Yrsquo professionals in particular seem ready to pack their bags In a CIMA study conducted in the UK last year over a third of those seeking employment in the
next two years will prioritise opportunities abroad over those in their home countries many of them enticed by the career incentives offered by the Middle East
How quickly can they land what seems to be their dream job What are the realities It may be that the move is simply from one branch to another and the only significant difference is a view from the window but for those expanding rather than changing their roles we have seen a very real need for a depth and breadth of knowledge never needed before
As geographical boundaries are pushed ever-wider a CFOrsquos responsibilities are pushed with them For many finance executives the understanding of their own patch of land is no longer enough they now have to be aware of foreign markets up to speed with foreign trends and au fait with foreign laws There is a need for a new commercial awareness in geography as well as philosophy
As geographical boundaries are pushed ever-wider a CFOrsquos responsibilities are pushed with them
John vargheseQampA
wwwthecfomecom 69
BUSINESSSET UP YOUR
IN THE UNITED ARAB EMIRATES
TO
WAREHOUSESOFFICES INDUSTRIAL LANDFLEXI
Quick and easy company set-up
Less than an hour drive from Dubai
Complete cost-effective packages including licences and facilities
100 foreign ownership
Zero income and corporate taxes
Eligibility for UAE Residence Visa
BUSINESS SET-UP SOLUTIONS STARTING FROM AED 15000 (USD 4000)
RAK FREE TRADE ZONE PROVIDES
RAK Free Trade Zone Authority - Government of Ras Al KhaimahUAE (Ras Al Khaimah) Tel +971 7 2041111 (Dubai) Tel +971 4 7041875 (Abu Dhabi) Tel +971 2 6994888
Germany (Cologne) - Turkey (Istanbul) - India (Mumbai)
Call +971 7 204 1111 Visit wwwrakftzcom Join rakftz
INNOvATIONrsquoS BOTTOm LINE Bill Chappell occupies a rare space as the CFO of Dubai Silicon Oasis a free zone dedicated to the development of technology across the emirate In the following interview he shares with CFO Magazine how far along technology has come in the UAE and why the figures are the most important aspect of his role as Chief Financial Officer
18
Cover StoryTECHNOLOGy
wwwthecfomecom
Dubai Silicon Oasis (DSO) occupies a vast 72 million square metre stretch of land in the northern reaches of the UAErsquos most globally recognised emirate Established in 2005 as a government-owned free zone devoted to the development of technology DSO has in the time since welcomed over 1087 companies into a space of which more than 59 of has been developed
Responsible for liaising with DSOrsquos companies both large and small whilst overseeing the free zonersquos balance sheet CFO Bill Chappell mans a unique station as a finance
executive with a keen eye for technological growth
ldquoIrsquove been with Dubai Silicon Oasis for nine years and my role is rather split I am the finance director but Irsquom also responsible
for our initiatives on technology incubation
and investment which is all very interestingrdquo
Chappell said Despite Chappellrsquos
years of experience in the technology industry granting him an imperatively strategic purview as CFO he makes clear what is most important as Chief Financial Officer
ldquoGetting the numbers right must always be the number one thing People talk about strategy and a number of other things but you must focus on the numbersrdquo
Chappell offered ldquoMy background is in technology companies for over ten years previous to coming here so I have a knowledge of technology which I brought to Dubai above all My overlap personally involves understanding technology whilst being a CFOrdquo
When Dubai Silicon Oasis first came into existence the area was undeveloped with no roads customers or residents Today the oasis acts as both a home for industry and residence whilst the Dubai Silicon Oasis Authority operates a number of services unique to companies which operate within the free zone A business incubation centre venture capital funding structure and various forms of entrepreneurial support are among DSOrsquos many aspects available to tenants
Said Chappell ldquoThere are three categories of companies at DSO There are smaller companies which deal more largely with our entrepreneur and incubator ecosystem The other extreme involves global firms such as Fujitsu or SAP and we look at their needs and make sure theyrsquore satisfied as customers They want our help to get setup And then there is the middle group and I meet them if they need my help as CFOrdquo
DSO counts SAP Porsche Fujitsu and Qordoba among its vast bank of companies
19
Cover StoryTECHNOLOGy
wwwthecfomecom
each of which are granted access to the Chappellrsquos well-honed expertise
ldquoBill has been involved in several meetings to gain updates about the company and offer input on what he thinks we should be focusing on whilst asking questions about our financial processes He also sits with the board on occasionrdquo said Loulou Khazen Baz founder of Nabbesh an online marketplace which connects professionals with work opportunities
ldquoDubai Silicon Oasis has been an important Investor at various stages of Nabbeshrsquos journey and a vital stamp of approval Our company has found priceless value in DSOrsquos support and the approachable nature of an involved CFO like Billrdquo
Chappell faces a number of challenges related to investment due to the region not ranking tech developments as high as traditional platforms such as real estate Additional concerns related to innovation have found themselves increasingly entering the CFOrsquos remit as related to encouraging ideas specific to the region Chappell is confident however that certain companies based in DSO are addressing these issues
ldquoIn this region one of my biggest challenges is getting people to understand
ldquoPeople talk about strategybut getting the numbers right must always be the number one thingrdquo
20 wwwthecfomecom
the complexities of tech Technology is a good investment class but the region is focused very much on real estate whilst the investment class of technology doesnrsquot rank as highrdquo said Chappell ldquoIn order to widen the general understanding we want to be developing solutions which address problems specific to the region We have one or two gems for example Qordoba a translation company which translates content in multiple languages The programme utilises artificial intelligence and as a result is getting smarter and smarter each time it is asked to translate so that it understands the meaning of what itrsquos translatingrdquo
Another key variable for DSO is centred on supporting
Dubairsquos goals based around becoming the worldrsquos capital for Islamic finance Chappell describes his role as CFO as one with ldquotwo thousand handsrdquo a multi-layered position which he seems to relish being held responsible for While DSO has grown tremendously in its near decade of existence the free zonersquos exuberant CFO sees lots more to come
Said Chappell ldquoI see us going from strength to strength Wersquove been in existence for nearly ten years When I joined it was empty desert Now we have over 1000 companies and an estimated 43000 living on site Within five years wersquoll also be further down the path and wersquoll be recognised for our contributions to the smart city and the Islamic economyrdquo
ldquoWithin five years wersquoll be further down the path and recognised for our contributions to the smart city and the Islamic economyrdquo
Dubai Silicon Oasis
headquarters
1080Companies in DSO
72millionDSOrsquos land mass in square metres
STAT FACTS
Cover StoryTECHNOLOGy
THE MIDDLE EAST ACCOUNTANCYAND FINANCE EXCELLENCE AWARDSWEDNESDAY 10 DECEMBER 2014AT THE JUMEIRAH BEACH HOTEL DUBAI
ACCOUNTING FOR EXCELLENCE
Once again the very best talent in the world of accountancy and fi nance will be celebrated by ICAEW at a stellar awards ceremony
ICAEW is a professional membership organisation supporting over 142000 chartered accountants around the world And on Wednesday 10 December 2014 at the Jumeirah Beach Hotel in Dubai wersquoll be recognising excellence in ten categories featuring Business Leader of the Year CFO of the Year Corporate Finance Deal of the Year and the Internal Audit Excellence Award
With an impressive line-up of speakers special guests and entertainment it all adds up to a trulymemorable evening
To submit a nomination or for more information visit icaewcommiddleeastawards
Nominations close on 1 October 2014
A WORLD LEADER OF THE ACCOUNTANCY AND FINANCE PROFESSION
400595_ICAEW_MiddleEast2014_Ad_NBAD_DEVERE_207x270_AW_3indd 1 27082014 1541
PROCUREMENTANALyTICS
wwwthecfomecom22
Return on Supply Management Assets (ROSMA) is a pioneering framework launched by AT Kearney after four years of testing one aimed at addressing the aforementioned procurement gaps The performance measurement standard was initiated with an eye on creating a benchmark for the procurement industry and providing a compass to direct investments
ldquoROSMA started in 2010 And it started out with conversations with the CFO There are a group of folks in the company talking about how great their achievements are however
the capital that procurement claims isnrsquot often obvious and can create a disconnect within the companyrdquo said AT Kearney Vice President Federico Mariscotti
This yearrsquos annual report surveyed a number of businesses and arrived at a series of significant findings which outline procurement patternsbull Top-tier companies generate
approximately $16 million in financial return per procurement employee yearly A reported 35 per cent of return derives from applying advanced methods
bull Mid-level performers typically
The first step for compa-nies in the Middle East is to take a good look at what they expect procurement to bring
Leading global management firm AT Kearney recently released a report on the evolving conversation which surrounds procurement A key aspect of the report spells out how much CFOs stand to gain by making more pronounced investments based on utilising procurement in terms of value The relative distance between CFOs and their respective companyrsquos procurement methods is cited as cause for concern
THE NEW LANGUAGE OF PROCUREmENT
generate four to five times of their investment in procurement valuation yet have not exemplified growth since 2011
bull Performers at the lowest level surveyed do not achieve monetary benefits which cover costs
bull The majority of organisations surveyed do not possess the tracking structures needed to analyse procurement performance
bull Regardless of company size or industry procurement
PROCUREMENTANALyTICS
wwwthecfomecom 23
The CFO community has not yet awakened to the value of procurement
performance varies though companies with sophisticated reporting techniques experience less variable performance
The reportrsquos express aim to create a benchmark for procurement follows a wave of process monitoring which found notice in the manufacturing industry in the 1980s supply chain research and engineering in the 1990s and sales and marketing performance being closely tracked in the 2000s
ldquoProcurement costs can represent anything from 20 to 90 of a companyrsquos total cost going from the public sector to consumer goods Yet the productivity of the team that presides over the supply market interactions has a way of explaining their value add using savings that do not add up to the PampL impact measured by finance Savings definitions different baselines and cost avoidance all contribute to a murky aggregate view of the impact on the businessrdquo added Mariscotti
In the Middle East the challenge is fundamental ndash getting the spend data in the first place Companies admit they often do not have a clear categorisation of intelligence lack an agreed definition of savings measurement and generally position procurement as a pre-eminently transactional activity lacking the mandate to contribute value Procurement processes as a result remain centred around purchasing are paper based and lack transparency The first step for companies in the Middle East is to take a good look at what they expect procurement to bring
wwwthecfomecom24
Influencedspend
The inconsequential The brand leaders
Leaning up
Note All three segments start with a common hypothetical spend of 1000 to normalize the case example
Source AT Kearney analysis
Source AT Kearney analysis
TOP QUARTILE
mIDDLE-TIER 50
BOTTOm QUARTILE
704
764
644
522
527
396
42
30
(138) (25)
(63)
19
39
28
15
21
4
3
60
32
18
Sourcedspend
Units of yield
Post-compliance
benefits
Additionalbenefits
Financial results
delivered
19x
17x
middle tier
bottom quartile
TOP-QUARTILE PERFORMERS DELIVER NEARLy TWICE AS MUCH VALUE AS MIDDLE-TIER PLAyERS
THE CFO COMMUNITy HAS NOT yET BEEN ldquoAWAKENEDrdquo TO THE VALUE OF PROCUREMENT
Procurement is not on the radar for those who gave the wrong answers to three essential questions
leadership with accountability for performance is clear but either the measures are not clear or performance is believed to be weak variable or unknown ndash or a mix
leaners and leaders answered all three essential questions correctly and also answered most or all other questions correctly
to the table and how it should support the business To make a steep change companies need to understand the multiple benefits which will occur for investments made once theyrsquove allowed for stronger procurement practices
The benchmarking aspects of ROSMArsquos report speak directly to CFOs based on an existing widespread inability to track and improve this often unquantifiable nature of procurement practices According to the report the CFO community has not yet awakened to the value of procurement and Chief Financial Officers are thus divided into three segments The brand leaders (25) those leaning up (63) the pack (774) and the inconsequential (138)
Said Mariscotti ldquoThis is a way to give procurement a measurable quality that CFOs can quantify You have to know what yoursquore doing with relation to procurement in order to do it well ROSMA gives you a number which helps you understand how good your procurement is working as compared to peers It lets you know whether or not you could be doing something differentrdquo offers Mariscotti
CFOs have exemplified an increasing ability to share in a companyrsquos strategic efforts whilst expand their respective remits Procurement is emerging as the latest segment of this conversation Understanding its value beyond the transactional is the first step for CFOs to fully engage with harnessing the potential of procurement and grow to become a part of the elusively paltry portion of brand leaders indicated in ROSMArsquos report
PROCUREMENTANALyTICS
The pack(774)
Al Sharid is the Vice Chairman of Emirates Transport and has enjoyed a successful career in which the lionrsquos share of his tenure has afforded him a seat at the helm of the business
ldquoI remember when I first received the GM of Tata in the late 80s he said to me lsquoYou are the youngest GM I have ever metrsquo I was 29 years old at the timerdquo Looking at Al Sharidrsquos rapid ascent to the top of his organisation can be mind boggling to the average observer however to those few who strive to push themselves to their limits it is perhaps more common a reality As with any top performer we can often see their desire for results and impact
early on in life and with Saeed the first stride of his race to the top began with an accounting degree in university
It was 1976 and the excitement of the UAErsquos biggest milestone moment its inception just five years earlier still clung to the air from Fujairah to Abu Dhabi and every emirate in between A nation was being built Saeed had just finished high school and went to the United States where he was to study engineering
ldquoI was not yet 18 years old it was 1976 and I was sent to America to study it was the beginning of a dream and a young liferdquo says Al Sharid Unfortunately Al Sharidrsquos academic tour of duty came to
THE EmIRATI DREAm Saeed Al Sharid is today an elder statesman in the world of UAE accountancy With decades of know-how based on chairing a number of key Emirati organisations Al Sharid is today atop his own family firm In the following exclusive interview he shares the importance of education the evolution of a nation and just how being an accountant has driven his many triumphs
an abrupt halt when his father suddenly passed and he was forced to return home ldquoWe are seven brothers and I am the middle one so during tough times we always come together and during this period the strength of my family pulled me through I have three younger brothers and I felt I had to be there for them I felt responsible for them My mother played an omnipotent role in pulling us through this dark moment in our history The death of my father forced us to become more independentrdquo says Al Sharid
Now back in the UAE with his plans of studying abroad dashed Saeed looked at the local schooling system within which Al
26
InterviewPERSONALITIES
wwwthecfomecom
Saeedrsquos desire for results took its first stride with an accounting degree in university
By Shane phillips
27
InterviewPERSONALITIES
wwwthecfomecom
Ain University had just opened ldquoAl Ain University was the pride of the Emirate at the time the students were like celebrities The first batch of graduates were all promised 50000 AED from HRH Sheikh Zayed I was one year late so technically I should not have graduated with the first batch but I was determined I worked an extra course load did summer school and soon caught up to the first class 50000 AED in 1981 was like 5000000 AED today so I was very motivatedrdquo says Al Sharid
Saeed not only caught up with the other students but he wound up graduating atop Al Ain Universityrsquos first class of graduates with a 38 GPA ldquoWe Saeed Al Sharid
28 wwwthecfomecom
to the organisationrdquo he says Saeed first joined Emirates Transport after seeing a small newspaper advertisement for an accountantrsquos position He applied but initially they did not want to hire a local because locals were too expensive After a few months however they called him back for an interview and offered him a job
Initially Saeed struggled to get a promotion or even a raise He worked tirelessly to develop himself and kept detailed notes of his work After nearly two years went by with no promotion he requested to meet with the Chairman of the corporation to discuss his career The Chairman was a Minister making him even more senior than his title implied Al Sharid was courageous and determined ldquoYou should not stay silent you have to take initiative your future is in your handsrdquo says Al Sharid
ldquoI met with the Chairman and told him about my work and what I wanted to do He did not talk he just listened and that was it It was a 15-minute meetingrdquo says Al Sharid Three days after Al Sharidrsquos pivotal appointment he was promoted to Deputy General Manager Directly from a Trainee to DGM skipping all the roles in between at the age of 27 years old They doubled his salary and catapulted him into a senior leadership role
ldquoI felt it was quite strange to move up that fast and personally was not sure I could handle the job I had a lot of resistance from the board I had people in their 50s reporting to me and they were not happy about it So I just took a step back and did not try to get involved in their work too fast I went slow and watched my step This was a very important
ldquoThe UAE was a brand new country and a lot of work was being done to develop the nationrdquo
never had any idea of a career path and there was no such thing as career counsellors or lsquocareer servicesrsquo at the school So when you graduated most people just joined the Ministries The UAE was a brand new country and a lot of work was being done to develop the nation The Federal Government paid the highest and so one just joined them There was no grand vision or dream that I was off and chasing In those times you simply tried to do the next best thing So I ended up working in the Ministry of Health as an accountant Back then a university degree was a veritable qualification and it had a lot of market equity today it wonrsquot even get you in the doorrdquo
As the Middle East market evolves not only are university degrees becoming more common but so are post graduate degrees such as MBAs and even PhDs As such the competitive positioning of professional qualifications are gradually eroding over time
ldquoTo stay competitive executives today will require deep and specialised knowledge of their respective industries an intellectual arbitrage that provides superior results To beat the market to manage the risks to develop a sustained competitive edge For this executives need to stay in a role for the full strategic cycle which is at least four years in durationrdquo says Sharid In the case of Al Sharid he was there for 33 years
ldquoDo you just want a job or are you looking to make a contribution to your company Too many young people today are just looking for a title or a position The difference between those who make it into senior roles and stay there is the desire to create impact to add value
InterviewPERSONALITIES
2012year Moodyrsquos upgraded the UAE economy from developing to emerging
37The UAErsquos global rank for GDP
STAT FACTS
moment for me to gain valuable leadership experience early on To make my learning curve even steeper the General Manager quit after two years and I became the GM at the age of 29 years oldrdquo explains Al Sharid
He ascended to the top job in less than five years and stayed in the position for almost twenty years He was totally committed and could even be found in the bus yard at four in the morning to greet the drivers as they started their shifts ldquoThe key to being successful in business is to keep your finger on the details Some people let the details slip and if this happens you will suffer I get into the yard I meet the drivers I meet all the staff If you saw us you will not know who was the GM or who was the driver You have to realise people will never work for you they will only work with you To me Emirates Transport is like my familyrdquo says Al Sharid
When asked what his keys to success are he says ldquoI think if I was not an accountant I would not be a good leader I would not be a good manager In my opinion trying to do business while not understanding accounting is like getting into the ocean and not knowing how to swim you will drown The Chief Executive Officer who does not know how to create the financial statements is always at the mercy of his Chief Financial Officer He cannot take any big decision on his own and he will not even be able to challenge the CFO Accounting is the bedrock of any business and a critical skill set for any leader No one can argue with this factrdquo says Al Sharid
With over 20 years of experience in tow and the related chairmanships to boot Al Sharid
ldquoTrying to do business while not understanding accounting is like getting into the ocean and not knowing how to swim you will drownrdquo
has since early last year partnered with his family to form Al Sharid Auditing Though the Emirati youth is not as keen to pursue positions related to accountancy as Al Sharid was he feels that there is hope to close the gap
ldquoIt is difficult to find an Emirati expert I studied the audit market specifically and there were others like me then But now you break Emirati auditing involvement into three categories The first involves the big firms This is followed by individual smaller enterprises But thirdly a lot of locals opt to work with the government also Most are not managing their own firms they just have a partnership and they are building thatrdquo Al Sharid explains
ldquoAl Sharid Auditing however is a firm that includes my brother and our two sons which make up a body of qualified professional auditors We established this firm last year and work closely with the government We decided to make one firm together instead of having many smaller entitiesrdquo
Moving forward Al Sharid plans to grow his familyrsquos firm by applying the very belief system which has catapulted him to his position of power Marketing concerns which are designed to furthermore announce how tailored Al Sharidrsquos offerings are at present a key variable to forging ahead
Said Al Sharid ldquoMoving forward wersquore focusing more on the marketing of our firm Itrsquos a matter of not exactly expanding but going over the right deals The market is tough and the small jobs are easy but we donrsquot need them We donrsquot want to be in many rooms we want to be in the important onesrdquo
29wwwthecfomecom
InterviewPERSONALITIES
1UAErsquos rank among GCC nations for chosen hub of all major accountancy bodies
STAT FACTS
Latest insights from PwCrsquos 15th Annual Global CEO Survey revealed that 59 per cent of CEOs see emerging markets as more important than developed markets to their future What is making emerging markets such a pressing priority for C-suite executives Why are emerging markets increasingly grabbing headlines
Emerging markets are large fast-growing and ambitious markets best known for being the growth engines of todayrsquos global economy Research (1) suggests that emerging market countries are expected to amount for more than 60 per cent of global GDP growth ndash a clear indication of the wealth of opportunity they present
Understanding emerging marketsBased on estimates by the International Monetary Fund emerging economies are expected to grow two to three times faster in comparison to developed nations Explaining this fast-growth and the rise of these emerging markets an article on Forbescom details that ldquoduring the US housing crash and resulting credit crisis of 2008 world markets were saved from a total disaster thanks to the big emerging markets ndash mainly Brazil India and China The global credit crisis was one of the longest deepest and most painful in history It toppled Wall Street icons like Lehman
The following report explores emerging markets from West to East which are at the helm of economic development trade and innovation and highlights what their rising popularity means for the growth of your business
Brothers required government bailouts of bulge bracket banks and shocked the global economy with a deep economic recession and even a deeper crisis of confidence Its most important legacy though may be one that has yet to fully unfold the crisis revealed a new world order in terms of economic and market dynamics Emerging market economies finally arrived as
30
Market IntelligenceANALyTICS
wwwthecfomecom
ENTERING EmERGING mARKETS STRATEgIES RISKS ANd OppORTuNITIES
Projected annual GDP growth 2014 amp 2015
PANAMA
67
PERU
RANK42
55
Projected annual GDP growth 2014 amp 2015
Ease of Doing Business
RANK55Ease of Doing
Business
TOP TEN MARKETS
(1) Source here Accenture Research ldquogearing up for growth ndash five imperatives for success in emerging markets 2011 Henry Egan and Armen Ovanessoff
31
Market IntelligenceANALyTICS
wwwthecfomecom
LATVIA
CZECH REP
MALAYSIA
THAILAND
SOUTH KOREA
CHINA
RANK75
41
21
50
45
35
74
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
CHILE
RANK 34
43
Projected annual GDP growth 2014 amp 2015
Ease of Doing Business
RANK 24Ease of Doing
Business
Ease of Doing Business
RANK 6Ease of Doing
Business
RANK18Ease of Doing
Business
RANK 7Ease of Doing
Business
RANK 96Ease of Doing
Business
POLAND
32
RANK45Ease of Doing
Business
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
Source httpwwwbloombergcomnews2014-01-29qatar-china-top-ranking-of-frontier-and-emerging-marketshtml
powerful essential and permanent contributors to global economic growth and sustainabilityrdquo
Bloombergcom recently ranked the top emerging markets based on their performance on 19 economic financial political and social indicators In order of ranking the top ten markets were
CHINA
SOUTH KOREA
MALAYSIA
CHILE
THAILAND
PANAMA
PERU
LATVIA
POLAND
CZECH REP
1 6
2 7
3 84 9
5 10
Market IntelligenceANALyTICS
32 wwwthecfomecom
Making an entryIf your business is looking to enter any of these emerging markets itrsquos worth considering the following checklist
1 Assess your readiness The biggest mistake you can make is to enter a market without proper evaluation of your business Donrsquot do it just because everyone else is Like every other major business decision be sure to speak to your Board of Directors partners investors stakeholders and most importantly your CFO and certified accountants Make a business plan enlisting your objectives goals investment strategy potential risks etc
2 Research research research Do your homework Treat emerging markets as any other international expansion venture and do thorough research on the new market ndash Who are the competitorsWhat is the price point for your product What are the customer demographics What kind of infrastructure do you need for the manufacturing production or distribution of your product
3 Understand the legal framework Emerging markets might not have rules and regulations as clearly spelled out as your home country Invest some time and money in understanding how business procedures work A very obvious area of focus for UAE-based companies is tax Since the UAE is a tax-free economy companies arenrsquot exposed to tax accounting and other legislation surrounding
ndash failing to adapt to the needs and expectations of the local customers is surely a recipe for failure Time and again companies havenrsquot been able to create a customised offer and have had to exit these markets with huge losses A success story however is that of the Haier Group Haier famously introduced washing machines to specifically suit the water pressure levels in the households of India ndash an emerging market strategy that worked very well in their favour and helped them become leaders in that sector Another great example is that of Coca-Cola as explained in an online Reuters article by Matt Reilly ldquoIn Brazil Coca-Cola has used social media to better understand consumer preferences and has developed a successful local network to supply traditional Coca-Cola products as well as fruit juices tailored to local tastesrdquo
7 Local currency This is a complex yet critical area to consider when entering a new market Ask yourself questions such as ndash What is the local currency rate How does it compare to the currency in your home country Is the country import-led or export-led and what impact can this have on the global value of the currency Remember that fluctuations in currency rates can hugely effect your overall investment and thereby the return on investment
8 Build partnerships When entering an unknown territory it is quite useful to have the backing and support of peers who can help you in case of unforeseen challenges This is
this Another area to consider is corruption ndash emerging markets are notorious for high corruption red-tape and bureaucracy Speak to your company lawyer to assess these areas and take proper measures to avoid them before-hand
4 Invest in local talent Working with people already accustomed to the new market avoids the hassle of relocation and reduces costs But more significantly gives you skilled talent to work in these unique environments This also works in favour of your company as it gives you a clear understanding of the kind of compensation packages you will have to offer to your employees For instance employees based in China might want high remuneration and low healthcare benefits while in India it may be quite the reverse Recruiting local talent will also have a trickledown effect ndash your employees will easily be able to cater to the local customer needs without the need for intense training
5 Supply chain 44 per cent of business leaders surveyed consider accessing the right supply chain capabilities extremely or challenging in emerging markets according to Deloittersquos Globalisation Survey Make sure that you know who your suppliers will be what the production costs are whether their production procedures fit your time constraints and if the final product matches your level of quality
6 Cater to local market demands This is one of the most important aspects of all
Do your homework Treat emerg-ing markets as any other internation-al expansion venture
Market IntelligenceANALyTICS
33wwwthecfomecom
the very reason why Mergers and Acquisitions are a popular way to enter into emerging markets Many companies piggyback on their clients who are entering these markets For instance if you are an IT consultancy working on a major project for a manufacturing and trading company with operations across India and China you can use their resources and expertise to explore opportunities in these countries
Remember to consider these steps every time you enter a
new market as every locality has its own set of unique needs One strategy doesnrsquot fit all
Surviving fierce market conditionsWhile the massive opportunity that lies within emerging markets paints a pretty picture businesses need to be wary of bottlenecks such as corruption volatility gaps in laws and regulations and strong competition There have been several high-profile cases of multinational companies withdrawing from emerging
markets owing to immense corruption pressures
There is also a high percentage of inherent risks in these markets which amount to many companies not succeeding in their first attempts It is important to take your time when adapting to these markets and fully understand the business dynamics Following recent case studies and going over the lessons learnt by multinational companies who have made an entry into these markets consider the below
bull Is your companyrsquos head-office ndash and senior management ndash located in your home country without any C-level representation in the new emerging market
bull Are you focusing all of your resources on doing business in the emerging market at the cost of losing profits in your home market
bull Have you researched local competitors in these markets who may already have a strong standing and proven models of success
bull Are you using the same ldquoentry approachrdquo and business model across different emerging markets
If your answer to one or more of these questions is yes it may be time to re-evaluate your presence in these markets and map out a different strategy
Finally remember that no matter what the outcome of your admission to these markets might be your business is sure to emerge out of this stronger tougher and ndash of course ndash ready for a new challenge
of companies believed they had invested more resources in
emerging markets than was required
entered a market without fully assessing the ability of the supply chain to support the expansion
entered with the wrong pricing model and an inappropriate
operating model
CONSIDER THE RISKS
48
24
20
There is also a high percentage of inherent risks take your time when adapt-ing to these markets and fully understand the business dynamics
Source Emerging markets expansion and the supply chain Economist Intelligence unit survey conducted on behalf of EY September 2010
34
CIMA INTERVIEW
wwwthecfomecom
The Chartered Institute of Management Accountantsrsquo (CIMA) Managing Director Andrew Harding visited Dubai to host the Institutersquos seminar on global management accounting principles In the wake of CIMA revising their well heralded syllabus Harding discussed with CFO Magazine what the newest edition held how CIMA is applying a digital focus to its courses and just how CFOs can gain from it all
CURATING CURRICULUm
35
CIMAINTERVIEW
wwwthecfomecom
can give CFOs something they can take and something they can measure their own management accounting services against They can benchmark using this and they can utilise this to see their progress
Part of that is having professional management accountant in place I donrsquot think the landscape matters I believe that there is a common business need wherever you may be around the globe
All of the emerging markets need these skills The first aspect that accounting schools teach is about auditing skills because theyrsquore interested in protecting investments Then they teach you how to keep your business sustainable and to have a sustainable business you need to have a management accountant in place So itrsquos not just here in the UAE where we see these demands we see the same demands in China Indonesia and other powerhouse economies We see their skills shortages and we see the need for solutions in those areas
Talk to me about how this new syllabus works to promote the evolution of a CFOThis syllabus that wersquove
Can you expound on just what can be found within the new CIMA syllabusWe just revised the syllabus we do that every four to five years What we have done this year is a very significant revision It is based from a complex study that we have carried out to over 3000 people from 200 companies globally It is the very first revision since the joint venture with CIMA and AICPA So this has allowed us to attain a syllabus rich with all the data from all the continents in the world For the first time wersquove had real involvement from companies in the USA in this project
Why is the collaboration between AICPA and CIMA significantMost important is the Chartered Global Management Accountant (CGMA) designation that AICPA and CIMA both issue for qualified management accountants Wersquoll have a common curriculum and common examination which will begin on January 1 which gives us a global designation for management accountants wherever they are around the world There are plenty of accounting bodies who claim to be global but actually this is the only
genuinely global designation This is because it has the only one with a North American participation in it So we can say that the CGMA will be just as well-recognised in the USA as it is in Dubai
With the global landscape in mind how do you create an even objective that applies to localities which may prove widely differentialThe landscapes are different but businesses have common needs wherever they may be What wersquove particularly seen since the global financial crisis is that companies are actively looking to build management accountant capability to build that capacity within their organisations They donrsquot want to have a poor quality of information that lacks insight being used in their businesses So they see management accountants can bring solutions to that As a result of all the work wersquove done with companies who participated in the syllabus wersquove also put together a series of what we call Global Accounting Principles This is a series of principles which describes what good management accounting looks like and what top quality management accounting in a company should be producing This then
ldquoCompanies are actively looking to build man-agement accountant capability to build that capacity within their organisa-tionsrdquo
36 wwwthecfomecom
worked on acknowledges the skill set needed by professionals throughout their career Therersquos a base level of competence that is needed but beyond that there is more There is business acumen the ability to communicate and influence and finally the ability to lead So you start off enhancing your raw technical accounting skills Then you need to place that into the context of the business that you are in Then as you move forward and as you rise to become the CFO yoursquoll need the others You have to learn how to present your work in a way that can influence and make an impact in the business The final piece is the ability to lead projects and other functions and to a great extent lead the board of directors Thatrsquos how the context works itrsquos not just about technical knowledge
How do you find that CFOs in the GCC region are responding to this programmeThe CFO has a real challenge on his hands now In 1975 80 per cent of corporate value is showing on the balance sheet By 2010 that dropped to less than 20 per cent Your traditional PampL reports no longer reflect the value of the business or how the business drives value
All things that should be of interest to investors is missing With things like the integrated report initiative wersquore starting to see the other dimensions that add value to business For CFOs thatrsquos all about strategic thinking and considering the long-term objectives Being articulate in implementing those strategies keeping in mind the risks and opportunities that the business faces We are also nowadays witnessing a whole new world of transparency around that
Are there electronic aspects to CIMArsquos advancing approachThe interactive case study simulates a real working situation and it tests how they can apply their knowledge in real life situations Theyrsquoll be presented with a scenario a few weeks before they take the exam so they can prepare for it They then go to an exam centre where they are asked questions about how they will deal with a certain situation in the real world Theyrsquoll get an email from the CFO giving them a certain task for a particular period of time We want to make it as close to reality as possible so students taking the exam will be assessing situations based on real life scenarios
ldquoThe CFO has a real challenge on his hands now as traditional PampL reports no longer reflect the value of the businessand [the role] must focus on strategic thinking and considering long-term objectivesrdquo
218KCIMA members worldwide
STAT FACTS
CIMA INTERVIEW
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
38
ERPANALyTICS
wwwthecfomecom
Faster more nuanced IT solutions are available to the modern day CFO Whilst Chief Financial Officers are called upon to analyse data across a number of spectrums the digital tools on hand are likewise being expanded to aid in focusing more squarely on the bottom line
ExCELLING WITH ERP
The global landscape is today firmly entrenched within a digital model As a result CFOs whom are called upon to take a larger role in a number of variables must also increase their abilities with respect to utilising the many upsides which tech innovations offer a business When surveyed about their most pressing concerns CFOs generally return a varying collection of responses Revenue growth regulatory changes and meeting quarterly goals are among the chief concerns Virtually every obstacle can be hurdled by way of maintaining the order of financial reporting and data which has long been
synonymous with the Chief Financial Officerrsquos remit A widening berth of ERP solutions is making this data all the easier to come by
Despite how sophisticated the market is today it was not long ago that ERP departments once spent days processing business reports
Said Rohan Tejura Assistant Vice President Focus Softnet ldquoTraditional ERP systems were solely data repositories Moreover these repositories werenrsquot real time and were incredibly dependent upon locational connectivity With the emergence of smarter development platforms more versatile devices and
39
ERPANALyTICS
wwwthecfomecom
more intuitive designs of system development the overall experience of the ERP now extends from data warehousing to reporting analysis trend mapping business intelligence and governance oriented capabilities Yet these solutions amazingly execute all of these deliverables via portable handheld devices and through cloud environmentsrdquo
New generation ERP systems must now be on the go whilst including up to the minute analytics to provide deeper insight into the business ERP Analytics tools use historical data captured from various business functions to provide valuable information for efficiency and business performance each incredibly priceless to a leading CFO
Finesse is an ERP provider which is continually addressing the transformation of output which the ERP industry is offering the equally transitioning role of CFO
ldquoWe provide end-to-end business management solutions to SMEs and Enterprises Our approach to ERP is much more than providing simply an operational management systemrdquo said Finesse COO Sunil Paul
ldquoWe believe that todayrsquos businesses need much more than integrating sales with inventory accounting and manufacturing but also to have seamless integration with all their sales channels including the point of sales ecommerce and inbound sales solutionsrdquo
A major im-petus of the ERP-cen-tered growth is based on how effec-tive com-prehensive real-time data proves to be for the CFO
40 wwwthecfomecom
before thereby creating new global benchmarks for overall economic growth
Microsoft Arabia CFO Sadrul Khan offered insight into just how far the knowledge economy has influenced regional financial leadership by explaining how one of the most prioritised technologies by CFOs in the region is social platform monitoring
ldquoOne of the five technology choices that CFOs tend to prioritise in boosting productivity efficiencies and faster decision making in the fast paced business environment which include a social platform that monitors trends customer sentiments and helps process mashable data for customer centricity and business growthrdquo said Khan
A major impetus of the ERP-centered growth is based on how effective comprehensive real-time data proves to be for the CFO Whether employed as on-premise ERP software-as-a-service or cloud-based solutions a nearly identical ethos is being utilised Allowing the CFO to quickly access the performance of all facets of a business is paying dividends in the boardroom a reality which is showing itself increasingly in the Middle East
The technologically-charged relationship between ERP solutions and the regionrsquos CFOs is expanding and as a result has catalysed what many see as GCC economic performance outstripping that of many economies outside of the region as a result
In order to compete in todayrsquos fiercely competitive environment organisations need to think both innovatively and out of the box They require more insights about their business and their customers and need to ensure that they are able to meet the expectations of their internal as well as external stakeholders Enormous amounts of data both structured and unstructured is continuously being generated within the internal and external systems of the organisation which if analysed can be of immense value both to the business and subsequently the stakeholders associated with the organisation
With the the era of CFOs labouring over spreadsheets now in the past given how many business frontiers have become so dependent on mobile options such as the cloud more and more tech companies are providing the regionrsquos CFOs with information technology that converts traditional internal and external data into rich visual insights This information is then used for faster decision making and provides the ability for a CFO to assess manage and control risks Regional CFOs have grown enabled to drive corporate strategy accordingly demonstrating how the knowledge economy is now in full force amongst the Gulfrsquos corporates
Given that advanced IT has now become a regular CFO tool the regionrsquos CFOs are subsequently making faster decisions and driving internal growth models with greater speed and agility than ever
Tech companies are providing the regionrsquos CFOs with information technology that converts traditional internal and external data into rich visual insights
ERPANALyTICS
Donrsquot discoveritrsquos counterfeittoner afteritrsquos too lateOriginal HP Toner works first time every time1 unlike cheap toners which fail over half of the people who try it2 Non-HP toner can compromise your printerrsquos performance to give you streaked blotchy or faded prints Only original HP Toner cartridges deliver unmatched quality for the most professional-looking prints 100 of the time1
1 A QualityLogic 2010 study commissioned by HP comparing original HP LaserJet Monochrome print cartridges with nine brands of non-HP toner cartridges available in Europe Middle East and Africa for the HP LaserJet P1505 and P4015 printers HP 36A and 64A For details see wwwqualitylogiccomEMEAmonotonertestpdf 2 From a 2012 EMEA Lyra Research study commissioned by HP Results based on a total of 1050 HP Color LaserJet users who have used both original HP and non-HP toner cartridges of whom 552 experienced problems with non-HP cartridges
copy 2014 Hewlett-Packard Development Company LP
42
Private Equity ANALyTICS
wwwthecfomecom
The rise of PE-backed acquisitions is forcing CFOs to develop an entirely new set of skills
THE PRIvATE EQUITy CFO
The CFOrsquos utility in the world of private equity is without question on the rise The once-held belief of the CFO existing solely as the ldquoaccounting guyrdquo has been abandoned Over the last 20 years the role of CFO has become more demanding - requiring not just finance and accounting acumen but also a financial literacy in corporate planning risk management MampA assetliability management and regulation This evolution has been driven by a number of
key factors Yet the private equity industry which is now reshaping the corporate landscape through active ownership is by far the most significant factor driving change within the role of the CFO
PE-backed buyers today represent a larger percentage of overall buyers in the corporate acquisition marketplace than ever before Data provider Prequin estimates that as of June 2014 the capital raised by PE funds that
has not yet been deployed amounts to $114 trillion globally The result of this ldquodry powderrdquo is that a vast quantity of corporate acquisitions in the coming years will be undertaken by the private equity industry As such CFOs will be more accountable to demanding ldquosmart moneyrdquo shareholders than at any point in recent history Budgeting accounting and financial reporting will no longer exist as sole priorities but as a core competency among a
ldquoBy effec-tively using real-time data CFOs can create a dynamic process that proac-tively drives performance account-ability and value crea-tionrdquo
By Aaron Heidari
43
Private Equity ANALyTICS
wwwthecfomecom
robust set of complimentary and required skills Most of all the bar for CFOs is rising as PE investors will only accept above-average performance from their management teams
CFOs were once more reactive in function setting budgets based on other executivesrsquo plans and managing the flow of reporting to shareholders on a quarterly and yearly basis Today CFOs are required to become proactive managers of their respective businesses alongside their C-suite compatriots using a granular data-driven approach to aggregate analyse implement and report on every aspect of a companyrsquos operations
An important tool to drive this value creation process are KPIs Yet KPI structures including both aggregation and output are generally not up to the standards required of private equity investors prior to an investment being made
ldquoThe benefits of using KPIs and monthly reporting packages are significant By effectively using real-time data that is actionable and by partnering with functional area leaders within the organisation company CFOs can create a dynamic process that proactively drives performance accountability and value creationrdquo said Amanda Robinson Vice President of Accordion International in Dubai a consulting firm which is comprised of former private equity and investment banking professionals who
MENA region Cumulative Funds Under Management Since 2008
Source Zawya private Equity Monitor
19 636 20 36321 586
22 64323 506 24 250
-
5000
10000
15000
20000
25000
2008 2009 2010 2011 2012 2013
Cu
mu
lati
ve f
un
ds
($ m
)
$15mAverage MENA PE investment size in lsquo13
50Percentage of investment in IT and energy sectors
STAT FACTS
44 wwwthecfomecom
work with companies to deliver cost-effective project execution services
Active shareholders whose money it is being spent will typically require a data-driven justification before approving any budgets capital expenditures or new acquisitions Furthermore in many private equity backed companies the use of debt and the matching of shorter-term bank financing with longer-term investments will only be considered after a robust analysis is conducted to understand the companyrsquos ability to service that debt in the future This evaluation is not simply to identify revenues expenses and profits Itrsquos about drilling down into every transaction and rooting out data processing and reporting At least that is the expectation
The most valuable CFOs are those who have the ability not just to scrutinise and understand the financials but all also possess a wider grasp of the underlying data which truly comprise the business As an investor who has just acquired a stake in a new business I want a CFO who can manage the transition and stay ahead of my expectations Most of all a CFO should impress upon the companyrsquos shareholders a new way of doing business The first 100 days of an acquisition are said to be the most important During this period the CFOrsquos worth will be established when the new financial plan is due and the platform for the next five years of growth is presented
A CFO should man-age the tran-sition stay ahead of expectations and impress upon the companyrsquos shareholders a new way of doing business
Investment Volume By Sector Since 2006
Investment Volume By Sector in 2013
Source Zawya private Equity Monitor
1
3
30
17
3
28
3
4
6
4
6
5
17
9
9
6
9
5
8
6
6
2
3
10
Education
Education
Information Technology
Information Technology
Other
Other
Telecoms
Telecoms
Media
Media
Transport
Transport
Oil amp Gas
Oil amp Gas
Healthcare
Healthcare
Consumer goods
Consumer goods
Food amp Beverages
Food amp Beverages
Leisure
Leisure
Manufacturing
Manufacturing
ANALyTICS
Private Equity
2000857 NBAD ratibi mag ad 200x268 Finalindd 1 92514 1017 AM
46 wwwthecfomecom
THE FUTURE OFACCOUNTING EDUCATIONAddRESSINg THECOMpETENCY CRISIS
Have you ever stopped to think about how the accounting profession has changed since you graduated from college Recent graduates can answer this question by reflecting on the last two or three years whereas for other more seasoned professionals answering this question requires a bit more thought and memory searching Indeed we can all think of ways that the field of accounting is remarkably different today from the one we likely envisioned during our college daysmdashregardless of which decade we each donned our cap and gown This gradual transformation of the accounting profession leads to two important questions related to competencies bull Which competencies are important for success inaccounting todaybull Were these competencies consciously developed as partof your accounting degree programme
We suspect that more than a few of you would answer ldquonordquo to the second question Put another way our profession may be facingmdashmore so than at any time in the pastmdasha ldquocompetency crisisrdquo that is a gap between the competencies needed for professional success and those taught in our college classrooms today We propose a three-pronged strategy or ldquogame planrdquo for overcoming this competency crisis and in turn better preparing accounting graduates for the challenging world they will face First all of us accountants need to understand the changes that have already taken place in our profession and perhaps more importantly anticipate the changes that are on the horizon Second we need to educate ourselves and future generations of accountants so that as a collective group we can deliver the expanding set of competencies demanded in todayrsquos dynamic organisational
contexts Third as professional organisations and as individuals we need to think beyond ourselves by asking How can I (or we) help the accounting profession address the competency crisis
A Shift Toward Integrated ThinkingMany articles and white papers have been written that describe in detail the changes that have occurred in our profession over the last few decades but for our purposes wersquod like to distill these changes down to one crucial idea How does the accounting function add value to an organisation Accountants have evolved from support-oriented personnel who hand off information to others who actually make decisions into business partners who ldquohave a seat at the tablerdquo with managers
By peter C Brewer James E Sorensen CpA CgMA and david E Stout
47wwwthecfomecom
1048576bull What regulatory risks mayaccompany the proposal
1048576bull What social and environmentalfactors will we face if for example the proposal requires investing in overseas operations
1048576bull What types of employeeresistance may arise if we implement the proposal and how will we overcome the root causes of any such resistance
1048576bull Can and how should we valuefuture options associated with the proposal such as expanding or contracting the investment over time as new information becomes available
1048576bull Should we use debt or equity tofund the proposal
In short accountants have evolved to become integrated thinkers who enable EPM by partnering with managers across the organisation to add value Yet as EPM has gradually become the centrepiece of our professionrsquos value proposition accounting education hasnrsquot done enough to embrace it To overcome this gap wersquod like to further suggest that the concepts of competency integration and EPM need to come ldquofront and centrerdquo as we move forward in educating the next generation of successful accounting practitioners
Accounting Education No Longer on the SidelinesRecently a task force consisting of members of IMAreg (Institute of Management Accountants) and members of the Management Accounting Section (MAS) of the American Accounting Association (AAA) addressed the competency issue How should accounting education change fundamentally to help close the competencies gap The efforts of the task force led to
cash flows and how to apply discounted cash flow (DCF) decision models such as net present value (NPV) is of foundationalmdashsome might say critical mdash importance But integrated thinkers draw on an understanding of organisational strategy coupled with a broader set of competencies (beyond what might be considered technical or foundational knowledge) when making these types of decisions For example they consider how behavioural issues may influence the capital investment decision-making process Perhaps the financial estimates contained in the NPV analysis are too optimistic because the manager who prepared the numbers has a vested interest in seeing the project approved Decision makers also need to consider issues such as leasing vs buying a capital asset and the corresponding impacts on the financial statements and ratios that are tracked by investors and lenders What nonfinancial factors are associated with the proposed investment Add in the tax consequences of capital investment decisions coupled with the need to maintain internal control over any new business processes tied to these decisions and the need to think in an integrated fashion across a variety of accounting competencies becomes apparent
Furthermore becoming a true business partner with managers across the organisation requires more than simply integrating various accounting competencies It also means thinking like a business manager or a chief executive officer (CEO) Returning to the capital budgeting example an integrated thinker will ask questions such as
across the organisation Together they formulate and plan strategies then participate in collaborative decision-making processes that execute those strategies in a manner that adds stakeholder value Said another way accountants have evolved to become enterprise performance managers This shift in our orientation from a support function to an enterprise performance management (EPM) role has enormous implications for defining the determinants of success within our profession the most important of which involves becoming collaborators and ldquointegrated thinkersrdquo Take for example a common but important business decision process capital investment analysis Certainly technical knowledge regarding how to estimate relevant after-tax
48 wwwthecfomecom
expanding capital budgeting discussions to include financial statement impacts tax consequences and internal control issues integrates topical coverage across the External Reporting and Analysis Taxation Compliance and Planning and Assurance and Internal Control competencies shown in Figure 1
Third accounting curricula can incorporate a broader set of management competencies For example evaluating capital investment proposals from the perspectives of change management (Leadership) social and environmental issues (Ethics and Social Responsibility) regulatory concerns (Governance Risk and Compliance) and capital structure (Additional Core Business Competencies) brings a CEOrsquos perspective to the decision-making process
Fourth accounting curricula should include foundational competencies such as proficiency with spreadsheets and written and oral communication In the context of capital budgeting this may include asking students to use Microsoft Excel to perform a sensitivity analysis and then to present their findings to the entire class
Working to Fix the ProblemAt this point although you may agree with us that therersquos a competency crisis within the accounting profession you may be wondering What does this have to do with me What can my organisation do to help address this so-called competency crisis The answer a lot Practice partners and academic partners can help the accounting profession overcome the competency crisis That said letrsquos take a closer look at the role of practice partners first
improvement) and accounting competencies (external reporting and analysis planning analysis and control taxation compliance and planning information systems assurance and internal control and professional values ethics and attitudes) Of critical importance to the framework is the assumption that the set of competencies contained in Figure 1 would be developed and integrated over time through a blend of formal education (including continuing education) training and job experience
What levels of integrationmdashon the road to developing integrated thinkers in accountingmdashare possible First accounting educators can integrate within a single accounting competency So referring back to our capital budgeting discussion teaching computational models such as NPV analysis coupled with a review of various behavioural issues associated with capital investment decisions would be an example of integrating within the Planning Analysis and Control competency listed in Figure 1
Second professors can integrate across accounting competencies For example
a recently published article that contains a proposed framework for accounting education reproduced here as Figure 1 The framework is general in the sense that itrsquos meant to apply to all accounting students not subgroups based on career specialisation such as tax assurance services corporate finance and the like Itrsquos based on the idea that accounting educators can better prepare students to deliver our professionrsquos EPM value proposition through integrated competency-oriented curricula (For more see ldquoFocusing Accounting Curricula on Studentsrsquo Long-Run Careers Recommendations for an Integrated Competency-Based Framework for Accounting Educationrdquo in the May 2014 edition of Issues in Accounting Education)
A glance at Figure 1 reveals three levels of competencies foundational competencies (communication ability to leverage technology and analytical thinking and problem solving among others) broad management competencies (including leadership ethics and social responsibility and process management and
Proposed Competencies-based Framework for Accounting Education
FOUNDATIONALCOMPETENCIES
ACCOUNTING COMPETENCIES
BROAD MANAGEMENT COMPETENCIES
leadership
ExternalReportingamp Analysis
PlanningAnalysis
amp Control
TaxationComplianceamp Planning
InformationSystems
Assuranceamp InternalControl
ProfessionalValues Ethics
amp Attitudes
Communication
Quantitative
Interpersonal
Technological
Analytical Thinking ampProblem Solving
Ethics amp SocialResponsibility
ProcessManagement ampImprovement
GovernanceRisk amp
Compliance
AdditionalCore BusinessCompetencies
Although you may agree with us that therersquos a competency crisis within the account-ing profes-sion you may bewondering What does this haveto do with me
A practice partner should be or become a CMAreg (Certified Management Accountant) maintain professional certification by completing required Continuing Professional Education (CPE) hours and regularly read the IMA publications Strategic Finance and Management Accounting Quarterly
In addition there are a number of excellent resources that deal with topics covered in this article and that IMA makes available to its members
Strategic Finance PowerPacks(wwwimanetorg SFPowerPacks) These are resources focused on contemporary topics similar to those discussed earlier Current offerings include Risk Management Strategic Planning IT Skills amp Software and Internal Controls Each PowerPack includes a combination of resources such as research studies articles and links to webinars
Statements on Management Accounting (SMAs)(wwwimanetorgresources and_publicationsresearch_ studies_resourcesstatements on_management_accounting aspx) SMAs represent monographs classified into one of the following six categories Leadership Strategies and Ethics Technology Enablement Strategic Cost Management Business Performance Management Finance Governance Risk and Compliance and the Practice of Management Accounting Multiple items are available within each category For example the Practice of Management Accounting category includes (among other items)
49wwwthecfomecom
the Definition of Management Accounting and Implementing Shared Service Centres
Research Studies (wwwimanetorgresources_and_publicationsResearch_Studies_and_ResourcesAll_reportsaspx) The ldquoThoughtLeadershiprdquo section of IMArsquos website includes research covering a broad range of issues classified into seven categories For example under the ldquoGlobal Business Environmentrdquo category the following two research reports are available ldquoKey Differences Between IFRS and US GAAP Impact on Financial Reportingrdquo and ldquoCosting Methodologies and Cost Management Practices in the Peoplersquos Republic of Chinardquo
IMA Leadership Academy (www imanetorgprograms_events leadership_academyaspx) As described on the IMA website this programme is designed to assess a memberrsquos leadership status enhance that individualrsquos skills (principally through monthly webinars) and recognise leadership achievements These benefits are free to members
How You Can Make a Bigger Impact In addition to attending local regional and national IMA meetings consider inviting a small group of students to each chapter meeting This could be a wonderful (and relatively low-cost) option for mentoring aspiring accountants and finance professionals providing networking opportunities and introducing students to cutting-edge issues regarding the practice of management accounting Joining a university accounting
advisory group may be another way to influence the development of EPM in that institutionrsquos curriculum design
Other methods to enhance EPM in your organisation include (1) forming user groups within your company your local IMA chapter or your industry to review and share EPM experiences (2) encouraging advancement in the firm to be linked to EPM proficiency (3) focusing your companyrsquos recruiting efforts on candidates who display a background in andor understanding of EPM and (4) organising cross training within your company to enhance a mutual understanding of each otherrsquos respective roles
Finally visit the Competency CrisisTM website (http competencycrisisorg) set up by IMA to unite the accounting and finance constituencies professionals students employers academics and professorsmdashand explore competency issues through the lens of each stakeholder group The site is designed to ldquoencourage a discourse spur action and create a community dedicated to resolving the serious crisis of competency present in the professionrdquo Special sections of the website are devoted to educators students and employers professionals
Our Partners in Education Much like a practice partner an academic partner should be or become a CMA maintain professional accreditation by completing CPE hours and regularly read IMArsquos publications
Academic members of IMA can pursue and actively promote the CMA programme at their respective institutions
50 wwwthecfomecom
IMArsquos website contains helpful resources including an exam content overview content specification outlines for each of the two parts of the CMA exam and learning outcome statements The current exam covers some of the professional competencies represented in Figure 1 A summary of changes to exam content which will be effective in January 2015 is provided on the IMA website in News amp Media Relations which is located under ldquoAbout IMArdquo (See the press release dated March 24 2014) Other helpful resources include ldquoICMA Announces CMA Exam Content Changesrdquo in the April 2014 issue of Strategic Finance as well as ldquoManagement Accounting Career Readiness Shaping YOUR Curriculumrdquo
These forthcoming changes are based on the most recent IMA study of the knowledge and skills needed by management accountants from the view of CFOs controllers and other accountingfinance professionals from around the world
Also consider taking a group of your students to the IMA Student Leadership Conference held each November The Conference provides excellent networking opportunities for you your students and practicing professionals Students can learn firsthand from Conference presenters the challenges and opportunities facing finance and accounting professionals today
Moreover if your institution doesnrsquot currently have an IMA Student Chapter consider forming one One of the authors of this article David Stout reinstituted the student chapter at his school (Youngstown State University) after travelling with a group of his students to the IMA
Student Leadership Conference in Cleveland Ohio Through an IMA Student Chapter on campus students are able to work closely with a sponsoring local IMA chapter and bring to campus speakers who are experts in a wide range of topics including those discussed earlier in this article Each year student chapters compete for an Award of Excellence (AOE) and recognition as an Outstanding Student Chapter In addition IMA student members are able to engage in networking activities leadership training mentoring and community service programmesmdashall through their local chapter
You also might consider volunteering to serve as a Campus Advocate In this role yoursquoll represent IMA in all major matters of interest to your students (scholarship opportunities starting a student chapter mentoring and the like) and to your institution (for example leveraging IMA resources to advance the relevancy of the accounting curriculum use of educational case studies published in the IMA Educational Case Journal and access to IMArsquos ethics curriculum)
And if you havenrsquot yet done this ask IMA to endorse your accounting programme (information is available at www imanetorgeducator_resources indexaspx) This programme is designed to identify business curricula that meet the quality educational standards required to prepare students to earn the CMA designation Endorsement is based on an analysis of the curriculum and topics covered on the two-part CMA exam Currently 12 programmes have been endorsed
Finally if your school has an IMA Student Chapter consider participating in the annual IMA Student Case Competition where students are asked to propose a solution to a real world problem (Cases are solicited each year by Raef Lawson IMA VP of Research and Policy and IMA Professor in-Residence) Finalists make their presentations at IMArsquos Annual Conference amp Exposition before a set of judges consisting of accounting faculty members and practitioners Each year a new case is published in the August issue of Strategic Finance for students to use for that yearrsquos competition
Working TogetherIn this article we have summarised the changes that have affected the accounting profession and provided a competencies-based framework for guiding accounting educators in responding productively to those changes As a management accountant you know that implementing change in any organisation let alone within an entire profession never comes easily To be successful in overcoming our professionrsquos competency crisis IMArsquos practice and academic partners will need to assume leadership roles in defining enterprise performance management as the cornerstone of the accounting professionrsquos value proposition
This article was orginally published in the August 2014 issue of Strategic Finance It appears here with the permission of The Association of Accountants and financial professionals in Business
We need to educate ourselvesand future generations of account-ants so that as a collec-tive group we can deliver theexpanding set of com-petenciesdemanded in todayrsquos dynamicorgani-sational contexts
THE POWERFUL AND THRIFTY OFFICE ALL-ROUNDERS
The new ECOSYS M3560idn series will astound you With their print speeds of up to 60 pages per minute they are among the most productive A4 bw multifunctionals on the market We nevertheless managed to keep their ecological footprint and total cost of ownership impressively low by using our well-known ECOSYS technology and equipping the devices with our renowned long-life components The result Not only less waste and lower maintenance costs but also less hassle for you and all your colleagues You will also greatly appreciate the many customisation possibilities of the devices equipped with KYOCERArsquos open solution platform HyPAStrade as it allows you to tailor the device to your needs So yes we are proud of our new range of MFPs and can hardly wait to share their numerous benefits with you
For more information please contactKYOCERA Document Solutions Middle East | PB Box 500817 DubaiUAE | Tel +9714 4330 412 | Fax +9714 4231 944KYOCERA Document Solutions Europe BV - wwwkyoceradocumentsolutionseuKYOCERA Document Solutions Inc - wwwkyoceradocumentsolutionscom
52
ACCAINTERVIEW
wwwthecfomecom
GLOBAL By ASSOCIATION
across the region from our key employers and learning provider partners to our active and growing student and member base I want to understand their challenges and priorities and how ACCA can work with them to help support the economic success of the region
What can a CFO gain from working with ACCAThe ACCA qualification is about complete finance professionals For CFOs it brings the technical knowledge vital to business success complemented with the strategic management skills and ethical competence crucial to an organisationrsquos success As an organization ACCA in the UAE brings CFOs access to that local and global network of peers and expertise along with our leading research and insights that help them to keep up to date on the issues that matter most
Are there any initiatives in place to leverage the recently announced partnership with AAA
How are the ACCArsquos many years of activity being applied to the Middle EastACCA has now had a presence in the UAE for well over a decade During that time we have established strong relationships across the Middle East epitomised by the recent signing of our Strategic Partnership with AAA As a national body in choosing to partner with ACCA they recognised the local and global perspective we bring We are continuing to work with students members and employers across the Middle East to build their networks knowledge and business success through events research and insights and access to a growing number of online resources
Which initial priorities are among your key aims upon joining the organisationrsquos efforts in the UAEIn the first few months I hope to build on the success of the team in the UAE My priority will be to meet as many of our key stakeholders
The Association for Chartered Certified Accountants (ACCA) provides its services across a number of international borders The recent announcement of Lindsay Degouve de Nuncques as the new head of the Associationrsquos UAE chapter further exemplifies the ACCArsquos reach based on her previous work in the UK Nuncques shares here what she brings to the Middle East and just how globalisation has driven her ascent
53
ACCAINTERVIEW
wwwthecfomecom
The strategic partnership with AAA is the first of its kind in the region Students who complete the UAECA qualification will be entitled to both the AAA and ACCA designations and ACCA members in the UAE will also be eligible to apply for AAA membership This is a very exciting development in the market and together AAA and ACCA will be working to deliver maximum value to all our stakeholders from this partnership As we launch the UAECA qualification this activity will start in earnest
Which key industries will you be spotlighting in the Middle East in the months aheadOur experience of working across all sectors and levels of organisations globally gives ACCA a unique insight into all types of industries We will continue to be working with employers across the spectrum in the months ahead to help them gain the insight and make the connections that drive businesses to succeed at whatever they do
ldquoThe ACCA qualification is about complete finance professionals For CFOs it brings the technical knowledge vital to business success complemented with the strategic management skillsrdquo
54
Islamic FinanceMARKET OUTLOOK
wwwthecfomecom
In its 10th instalment the Forum is hosted in Dubai as a direct result of the UAErsquos increasing importance in the world of global Islamic finance
THE WORLD ISLAmIC ECONOmIC FORUm LANDS IN DUBAI
In Dubairsquos continued quest for leading the world across a range of spectrums the Emirate accelerated its desire to become the worldrsquos leading hub for Islamic finance by hosting the 10th installment of the World Islamic Economic Forum (WIEF) Delegates from dozens of countries attended to take part in a three-day event held at Madinat Jumeirah which rests alongside Dubairsquos gleaming coastline Held under the patronage of His Highness Sheikh Mohammed Bin Rashid Al Maktoum the
Vice President and Prime Minister of the UAE and Ruler of Dubai key speakers included The Honorary Dr Zeti Akhtar Aziz Governor of the Central Bank of Malaysia HE Kairat Kelimbetov Governor of the National Bank of Kazakhstan The Honorary Datorsquo Sri Mohd Najib Tun Abdul Razal Prime Minister of Malaysia and HE Xavier Bettel Prime Minister of the Grand Duchy of Luxembourg
Launched in 2006 in Malaysia WIEF has grown in tandem with the increased
Delegates from dozens of countries attended WIEF to take part in the three-day event
sophistication and reach of Islamic finance After a successful event in London in 2013 amidst increased interest in Islamic finance across Europe WIEF relocated to Dubai where the local business structure is keen to host halal finance
Said Hamad Buamim President and CEO Dubai Chamber of Commerce and Industry co-organisers of the event ldquo[The forum] is the start of a new chapter of cooperation between Dubai and the world as part of
55
Islamic FinanceMARKET OUTLOOK
wwwthecfomecom
Dubai Capital of Islamic Economy visionhellipestablishing a unified regulatory authority to provide the framework for standards across halal industries will significantly accelerate growth Likewise we need to see increased cooperation and partnership between the public and private sectors This is already happening with great success here in Dubairdquo
The order of global cooperation needed to facilitate growth across the Islamic finance world was more than apparent at WIEF based on how many differing nations were represented at the event The exhibitorrsquos hall was populated with a number of key Malaysian stands representative of the Southeast Asianrsquos ranking as the global leader in Islamic finance Also present were companies from Saudi Arabia also a key locality in the worldrsquos halal industries An interesting yet prescient presence was of attendees from South Korea a nation which is eager to participate in Islamic finance and will be hosting the WIEF Pyeongchang Roundtable in December 2014
ldquoGangwon is a province located in Korea which is very interested in new business opportunities Wersquove realised the strength of the Islamic economy and have come here with many different companies The first type is based in real estate investment We also have companies which want to export their products to the Islamic economy based on their halal qualities And Gangwon will also be hosting the Winter
ldquoKorea is very interested in the strength of the Islamic economy and wants to export its products based on their halal qualitiesrdquo
56 wwwthecfomecom
$247trillionProjected value of halal products industry in lsquo18
125Muslim percentage of global tourism expenditure
STAT FACTSOlympics in 2018 and are presently seeking investments for this as wellrdquo said Seong-hun Kim a member of Gangwon Province Governmentrsquos Export Support Team
Dubai proved to be an excellent place for the event considering how well the UAE is able to so regularly corral international cooperation A key sign of this was witnessed recently when Luxembourg now considered the third most important base for Islamic finance globally opened a finance office in Dubai International Finance Centre The European nation also opened a euro200 sukuk earlier this year which was quickly oversubscribed
The prime minister of Luxembourg offered the WIEF audience a riveting speech which detailed just how international the Forum has become whilst encouraging more of the world to support the growing influence of Islamic finance
Said Bettel ldquoWe need to innovate more economic partnerships for growth We sometimes need to reengineer relationships but also have to make sure these relationships remain sustainable Growth in one country also brings growth to others as long as this is guided by free market initiatives Free trade and free flow of capital combined with innovation leads to prosperity We have all gathered here in Dubai to explore the future of Islamic finance and Luxembourg is also a pioneer of Islamic finance in Europe The Islamic financial sector has a major role to play in continued global growthrdquo
The Islamic Corporation for the Development of the Private Sector (ICD) is based in the Kingdom of Saudi Arabia where it manages an international fund worth $2 billion half of which is available for subscription With shareholders in more than 50 countries and a sovereign sukuk fund recently launched in West Africa the ICDrsquos CEO Khaled M Al Aboodi attended WIEF this year excited to participate in the global event
How does the ICD approach its attendance at the World Islamic Economic ForumI think the Forum is one of the best places for discussing the financial issues of the OEC member countries It has been around for ten years and has grown to become a very important platform for discussion Wersquore here to attend and listen but also to network Itrsquos a great networking platform and a place to share views whilst letting everyone know what we have to offer
How has Islamic finance changed over the yearsOf course itrsquos growing in a large scale Some of it actually needs more support particularly with respect to regulatory frameworks Wersquore trying to partner with many international organisations like the IMF to try to provide support to countries to adapt regulation for Islamic finance Sukuk issuance is one of the biggest issues that needs to be addressed because there is a huge amount of liquidity in this arena Due to issues related to regulation sukuk issuance can be costly But with the regulation we are confident it will be on a level playing field with other forms of finance Compliance is a major area where more work can be done The Forum started with a roundtable on sukuk which shows how helpful WIEF has been over the years
What type of work does ICD do internationallyICD helped the government of Senegal to issue the first sovereign sukuk This was successfully issued last summer Progressing in this manner is something wersquod like to see continue across West Africa in order to utilise its resources with aiding development in the region in mind
QampA WITH KHALED M AL ABOODI CEO OF ICD
Islamic FinanceMARKET OUTLOOK
OFFICIAL SPONSORS
ENDORSED BY OFFICIAL HOST OFFICIAL
COMMUNICATIONS PARTNER
MEYDAN HOTEL DUBAI UAE19 - 20 NOVEMBER 2014
WOMENOMICSthe next emerging market
TAKE PART in making change happen UNITE with business and through leaders from across the globe
PARTICIPATE to the expansion of a modern and inclusive economy
58
Gautam PradhanINTERVIEW
wwwthecfomecom
SUCCESS BEyOND BOUNDARIES
in other management roles such as strategic decision making mentoring and leading efficiency and productivity across a range of other departments and functions as well as a being a catalyst in ensuring that the boardrsquos vision for the organisation is achieved
A significant percentage of NMDCrsquos shares are owned publicly Does the CFO play a role in balancing the interests of the shareholdersAs a CFO balancing the shareholdersrsquo interests is definitely part of my responsibility In order to achieve this goal there needs to be a careful evaluation of each decision while keeping the short-term and long-term goals of the company in mind At NMDC we actively implement a system where we utilise a balance scorecard as a method of ensuring that all our primary objectives are met yet at the same time continuously enhance our relationships with our shareholders
NMDC has completed various projects across the Emirates Are there plans to move abroadAs NMDC moves towards becoming an international player our strategic expansion plans are focused in areas within the GCC region and India In line with this strategy we opened
How has a company with such a unique set of deliverables grown so consistently over the yearsOur organisation strongly believes that the core to our strength is the people process and equipment A strategic decision led by our Board of Directors and the senior management has been implemented that required us to consistently invest in these three aspects to help expand our business beyond the territorial boundaries of the UAE and at the same time enhance what we can offer which is relevant to these segments We attribute our success to the efforts which every employee contributes We also strongly believe in the ldquoWe can make it happenrdquo principle The management raises the index of performance while setting SMART objectives within the organisation and encouraging the employees to achieve them
How has your position as the CFO changed over NMDCrsquos 35 years of operationAs the market evolves and business dynamics change my role as the CFO has become complex and more challenging A few years back I was mainly focused on bookkeeping accounting and other financial responsibilities such as arranging bank facilities But moving forward I became more involved
The UAE is progressively becoming a hub for world-class infrastructure The country has duly impressed the rest of the globe with noteworthy land developments showcased across the emirates Among the remarkable landscapes found in Abu Dhabi are the Corniche Beach Yas Island and Sir Baniyas Island Behind these successful projects is NMDC the dredging division of Abu Dhabi National Oil Company (ADNOC)
In an interview with CFO Magazine Gautam Pradhan Chief Financial Officer NMDC shares an exclusive look into the companyrsquos international blueprint for growth and his dynamic role as a strategic leader of one of the best in dredging and marine construction in the Middle East
59
Gautam PradhanINTERVIEW
wwwthecfomecom
branches in Qatar Bahrain Oman and India This has paid rich dividends recently as projects of strategic importance are bagged in Qatar and Bahrain Furthermore NMDC (UAE) has recently played a key role as a leader of an international consortium with Royal Boskalis Westminister (Netherlands) and Jan De Nul Group (Belgium) for the awarding of the Suez Canal Dredging project in Egypt Moving forward we have devised a strategic approach that will enable us to play a key role in the development of Indiarsquos marine infrastructure
What are the global strategies that are part of the CFOrsquos responsibilitiesAs CFO understanding the macro economic scenario risk analysis and mitigating those risks are all a part of my responsibilities I also have to have a proper comprehension
ldquoA few years back I was mainly focused on financial responsibilities moving forward I became more involved in strategic decision making mentoring and leading productivityrdquo
Gautam PradhanINTERVIEW
60 wwwthecfomecom
of the challenges faced by the company in terms of dealing with foreign contracts direct and indirect taxes and hedging and managing the integration process These are essential to enhance shareholders wealth and mitigate undue risk
How significant is accountancy for NMDC in its operations Why exactlyAccountancy is the lifeline of any company it does not only record the finances it also reflects the health of the organisation The MIS reports analysis trends and statistical information go a long way toward effectively providing
the diagnostic approach essential for the company
How have NMDCrsquos environmental activities helped the companyrsquos bottom lineNMDCrsquos work is well-synchronised with our environmental activities and specifically with nature Our activities are closely linked to sand and water and we view such activities with strategic importance Projects such as increasing water supply to mangroves and beach nourishment help us support the environmental activities while adding to our bottom line
ldquoAccountancy is the lifeline of any company it does not only record the finances it also reflects the health of the organisationrdquo
A burgeoning slice of Abu Dhabi coastline
The largest business awards
in the GCC30th November Dubai
nominate now at wwwstarsofbusinessawardscom
Stars of Business has become an iconic awards brand like no other in the region It recognizes the very best SMEs across 26 business categories Itrsquos universally respected as scientifically assessed and unimpeachably judged
327000 SMEs across the UAE$234 billion estimated total revenue of the SME sector4974 Awards entries in 20131856 Individual company applicants
Presenting Partner Strategic SME Partner Gold Sponsor Gold Sponsor VIP Hospitality Partner Supporting Partner
Trade Facilitator PartnerTrade Credit PartnerLogistics Partner
Institutional Partner Institutional Partner Event Partner
OrganiserPublisherMedia Partner Media PartnerPort Authority Partner
62
David Allen INTERVIEW
wwwthecfomecom
What went into completing your bestseller ndash Getting Things Done (GTD)After twenty years of researching developing and implementing a methodology for achieving stress-free productivity based upon
thousands of hours spent desk-side with
some of the best brightest and busiest people in the world I decided to write the manual for it Thatrsquos what Getting Things Done is
What are the five phases of mastering workflowIn order to get
any situation under control so
you can focus you will utilise these five
steps Whether yoursquore managing your kitchen
or your company you will need to collect and capture what has your attention clarify what if anything to do about it organise it according to what it means to you review and reflect upon it in relation to
Todayrsquos evolving CFO is often caught between the world of business set-up generating revenue managing employees and building strong company infrastructure When can things actually get done What can one do to boost productivity and master workflow World-renowned business coach David Allen has the answers
PRODUCTIvITy PRINCIPLES WITH
DAvID ALLEN
63
David Allen INTERVIEW
wwwthecfomecom
those are greatly subvertedHow does one maintain a fair balance between the time spent planning and actually getting things doneYou simply need to spend just the amount of time you need to to trust that what you are getting done is the right thing to be getting done in the moment It takes as long as it takes to get to that point Why would you do anything less
How can one apply your core productivity and workflow principles to todayrsquos technologically driven environmentThe principles and their techniques are system-independent Whether you have meaningful input from the Internet your smartphone or a conversation in the hall you must engage with it equally Technology has simply increased the flow of input and ease of distraction in your world
There is a lot of talk about how connected wersquove become and how connectivity is driving tremendous business growth Does connectivity actually come with its fair share of downsides
Connectivity is obviously a two-edged sword We can have intimate productive and creative interaction instantly with someone on the other side of the world and we can just as easily be distracted and seduced into those engagements when they may not be the best use of our attention and resources Donrsquot shoot the medium Itrsquos all simply bringing attention to your clarity of direction and priorities or lack thereof
Could you share a few quick tips with our readers to instantly boost productivityWrite everything down that has your attention Decide the very next actions required to get closure on all of them Any next actions that require less than two minutes do instantly Park reminders of everything else somewhere that yoursquoll see when you can do something about them
We are currently facing a massive information overload What are some basic principles you could suggest to mentally organise such large amounts of dataConstantly ask yourself Where am I going Whatrsquos important and rewarding to me Is this information
the whole and then engage your resources with intuitive trust
As a CFO how can you transfer efficient workflow management skills to your employees Itrsquos very difficult to legislate processes for individuals ndash you can really only hold them accountable for their results But if you are managing your own commitments and intersections with them with integrity and rigour it will automatically force your team to ldquostep up to the platerdquo in their own behaviours in order to meet your standards If you request their complete list of their company projects and they canrsquot produce it thatrsquos a sign theyrsquore not in control If they make a commitment to you that they havenrsquot kept thatrsquos data about their performance GTD is simply about good operational business practices
With so many planning and organising activities in your methodology is there a risk of losing spontaneity as a strategistThe reason for these best practices is to optimise freedom creativity and spontaneity Without them
ldquoBut if you are manag-ing your own com-mitments and intersec-tions with them with integrity and rigour it will automatical-ly force them to ldquostep up to the platerdquo in their own behaviours in order to meet your standardsrdquo
64 wwwthecfomecom
supporting that Park whatever you find potentially meaningful somewhere that is easy to access when needed
Being an entrepreneur is a non-stop job How do you ensure that you have an adequate work-life balance Pay attention to what has your attentionmdashwith regard to anything Your health relationships career finances etc Notice when something might be ldquooffrdquo and make good decisions about what you need to do to get it back ldquoonrdquo again
Does your work teach people to be efficient or effective In essence they are the same thing Effective choices are generated by efficiency on a higher level If you want to implement strategy most effectively it demands utilising your resources optimally which is efficiency
Does motivation actually improve quality of work or purely quantityDepends on the focus of the motivation You can be motivated to work harder and you can be motivated to work smarter
What is your favourite productivity mantra that
you implement in your day-to-day lifeUsing my own in-basket and note-taking devices to capture potentially meaningful and valuable ideas and soon afterwards clearing all of them out by deciding what to do about them if anything
Your books seminars and other work inspires many individuals and businesses Who is your personal inspiration or role model I have many about many different aspects of my life The only person though that I ultimately trust as my best guide is my higher self which I try to access as frequently and clearly as I can
Finally what advice would you give to current business owners and aspiring entrepreneurs looking to gain complete control of their life and businessCapture what has your attention clarify what you need to do about it to get it off your mind organise the inventory of all your commitments at all levels review and reflect on all of that regularly relax and trust your inner wisdom to engage with the most appropriate thing in the moment
ldquoIf you want to implement strategy most effectively it demands utilising your resources optimallyrdquo
David Allen INTERVIEW
APPSTECH TALK
wwwthecfomecom 65
mAxImISE BUSINESS lsquoON-THE-GOrsquo WITH THESE HANDy APPS
ipAd SpECIAL
SAMSUNG UNvEILS GALAxY NOTE EDGE
Network
AP
Display
OS
Camera
Video
Audio
Additional Features
GoogleMobile Services
Connectivity
Sensor
Memory
Dimension
Battery
The availability of service may differ by country All functionality features specifications and other product information provided in this document including but not limited to the benefits design pricing components performance availability and capabilities of the product are subject to change without notice or obligation
Samsung Galaxy Note Edge Product Specifications
25G (GSM GPRS EDGE) 850 900 1800 1900 MHz3G (HSPA + 42Mbps) 850 900 1900 2100 MHz4G (LTE Cat 4 15050Mbps) or 4G(LTE Cat 6 30050Mbps)May differ by country and carrier
27 GHz Quad-Core Processor
56 inch (1419mm) Quad HD+ Super AMOLED (2560 x 1440 + 160)
Android 44 (KitKat)
Rear Facing 16 Mega pixel Auto Focus camera with Smart OISFront Facing 37 Mega pixel camera with f19Rear Facing Camera HDR (Rich tone) Selective Focus Rear-cam Selfie Beauty face Virtual Tour Shot ShotampMore Dual CameraFront Facing Camera Selfie Wide Selfie
Codec H264 MPEG-4 H263 VC-1 WMV7 WMV8 Sorenson Spark MP43 VP8 Recording amp Playback up to UHD
Codec MP3 AACAAC+eAAC+ WMA AMR-NBWB Vorbis FLAC()() Ultra High Quality Audio (~192KHz 24 bit) support
Multi WindowUltra Power Saving ModeVoice Recorder (Normal Mode Interview Mode Meeting Mode Voice Memo)Download BoosterS Health 35Dynamic Lock ScreenBriefingEdge screen UX Revolving Interaction Immersive apps(Camera Video S Note)Ticker board Express me Quick Tools Night Clock etc
Chrome Drive Photos Gmail Google Google+ Google Settings Hangouts Maps Play Books Play Games Play Newsstand Play Movie amp TV Play Music Play Store Voice Search YouTube
WiFi 80211 abgnac (HT80) MIMO PCIeGPS GLONASS BeidouNFC Bluetoothreg v 41 (BLE ANT+)IR LED (Remote Control) USB20 MHL 30
Gesture Accelerometer Geo-magnetic Gyroscope RGB IR-LEDProximity Barometer Hall Sensor Finger Scanner UV Heart Rate Monitoring SpO2 (Dependent on market)
32 64 GB Internal memory + microSD slot (up to 128GB)3GB RAM
1513 x 824 x 83mm 174g
Standard battery Li-ion 3000 mAh Fast Charging (Adaptive Fast Charging amp QC20)
wwwthecfomecom66
APPSTECH TALK
AIR DISPLAY
SQUARE REGISTER
Using this app you can connect your iPad to your computer and use it as an additional screen While working on an important presentation or sales proposal you can extend or mirror your computer screen on your iPad This app is compatible with both Mac and Windows computers Note that to use this feature you have to install Air Display on your iPad and a separate free app on your computer The computer and iPad also need to be on the same Wi-Fi network in order to work in-sync
For Mac users the app allows you to connect to up to four screens ndash all at the same time
Apart from the ability to convert your iPad into a wireless display whatrsquos also attractive about this app is that it allows you to control your computer wirelessly using your iPad
This fantastic application can serve as a mobile point of sale for your business It allows you to accept credit card payments ndash including Visa MasterCard Discover and American Express A transaction fee of 275 is charged for every time you swipe a card The sale amount is transferred to your account within two working days
Once you download the app you can sign up and register for a unique card reader solution called the lsquoSquare Readerrsquo (this is free) Square Reader encrypts all card details and ensures that the transaction is secure Once you receive your Square Reader you can connect it to your device and are all set
The application also offers added features such as transaction history connecting to a receipt printer creating employee logins and more
AED 3699
PRICE
Free
PRICE
wwwthecfomecom 67
APPSTECH TALK
DOCUSIGNHave you ever been in a situation where your employees need you to urgently sign a contract but arenrsquot able to physically reach you in time DocuSign solves this problem with its easy-to-use eSignature feature In three easy steps you can sign important documents and securely send them to your intended recipient
First you have to import the document to your device ndash this could be from Dropbox Google Drive or another select applications You then place your signature or any other important legal information you need to include such as initials Once you have finished working on the document send it back via e-mail
Whatrsquos particularly great about DocuSign is the great emphasis it puts on security ndash so that users donrsquot have to worry about getting into any legal trouble
Use DocuSign and never miss a deadline again
Free for basic version
PRICE
MPAYAn initiative by the Dubai eGovernment Department mPay is a simple application that allows you to make important payments Once yoursquove signed up and entered your payment details you are good to go You can pay your Dubai Electricity and Water Authority (DEWA) bills Etisalat utility bills Dubai Police fines Recharge SALIK and much more
A handy feature is its lsquoauto-rechargersquo option which you can use to set automatic payments
Free
PRICE
Opinion CIMAPERSONALITIES
wwwthecfomecom68
NEW HORIZONSBy geetu Ahuja Head of gCC at CIMA
The days of the traditional accountant working within a small community in a small town in a small market have long gone CFOs are now being referred to as Chief Frontier Officers as they travel from market to market overseeing their offices overseas This new expanded role has distinct advantages for both the company and the CFO who gain new skills and new insights from foreign branches a single hand at the helm of many markets provides business perspectives on a global scale and benchmarks across the board
On a personal level working abroad also has huge importance Robert Walters the specialist professional recruitment consultancy recently conducted a survey
of almost 2200 employees across a variety of professions exploring a number of topics which ranged from working practices and attitudes to careers The results highlighted some notable trends particularly for finance professionals
In career progression for example the survey showed that 50 of all accountants see working abroad as either lsquoessentialrsquo or lsquoextremely usefulrsquo to furthering their prospects more than banking professionals lawyers and IT workers ndash a strong indication of how accounting professionals are thinking about their future either within their existing company or with opportunities elsewhere
Accountants with globally recognised qualifications obviously have a greater chance of gaining some experience abroad and the lsquoGen Yrsquo professionals in particular seem ready to pack their bags In a CIMA study conducted in the UK last year over a third of those seeking employment in the
next two years will prioritise opportunities abroad over those in their home countries many of them enticed by the career incentives offered by the Middle East
How quickly can they land what seems to be their dream job What are the realities It may be that the move is simply from one branch to another and the only significant difference is a view from the window but for those expanding rather than changing their roles we have seen a very real need for a depth and breadth of knowledge never needed before
As geographical boundaries are pushed ever-wider a CFOrsquos responsibilities are pushed with them For many finance executives the understanding of their own patch of land is no longer enough they now have to be aware of foreign markets up to speed with foreign trends and au fait with foreign laws There is a need for a new commercial awareness in geography as well as philosophy
As geographical boundaries are pushed ever-wider a CFOrsquos responsibilities are pushed with them
John vargheseQampA
wwwthecfomecom 69
BUSINESSSET UP YOUR
IN THE UNITED ARAB EMIRATES
TO
WAREHOUSESOFFICES INDUSTRIAL LANDFLEXI
Quick and easy company set-up
Less than an hour drive from Dubai
Complete cost-effective packages including licences and facilities
100 foreign ownership
Zero income and corporate taxes
Eligibility for UAE Residence Visa
BUSINESS SET-UP SOLUTIONS STARTING FROM AED 15000 (USD 4000)
RAK FREE TRADE ZONE PROVIDES
RAK Free Trade Zone Authority - Government of Ras Al KhaimahUAE (Ras Al Khaimah) Tel +971 7 2041111 (Dubai) Tel +971 4 7041875 (Abu Dhabi) Tel +971 2 6994888
Germany (Cologne) - Turkey (Istanbul) - India (Mumbai)
Call +971 7 204 1111 Visit wwwrakftzcom Join rakftz
Dubai Silicon Oasis (DSO) occupies a vast 72 million square metre stretch of land in the northern reaches of the UAErsquos most globally recognised emirate Established in 2005 as a government-owned free zone devoted to the development of technology DSO has in the time since welcomed over 1087 companies into a space of which more than 59 of has been developed
Responsible for liaising with DSOrsquos companies both large and small whilst overseeing the free zonersquos balance sheet CFO Bill Chappell mans a unique station as a finance
executive with a keen eye for technological growth
ldquoIrsquove been with Dubai Silicon Oasis for nine years and my role is rather split I am the finance director but Irsquom also responsible
for our initiatives on technology incubation
and investment which is all very interestingrdquo
Chappell said Despite Chappellrsquos
years of experience in the technology industry granting him an imperatively strategic purview as CFO he makes clear what is most important as Chief Financial Officer
ldquoGetting the numbers right must always be the number one thing People talk about strategy and a number of other things but you must focus on the numbersrdquo
Chappell offered ldquoMy background is in technology companies for over ten years previous to coming here so I have a knowledge of technology which I brought to Dubai above all My overlap personally involves understanding technology whilst being a CFOrdquo
When Dubai Silicon Oasis first came into existence the area was undeveloped with no roads customers or residents Today the oasis acts as both a home for industry and residence whilst the Dubai Silicon Oasis Authority operates a number of services unique to companies which operate within the free zone A business incubation centre venture capital funding structure and various forms of entrepreneurial support are among DSOrsquos many aspects available to tenants
Said Chappell ldquoThere are three categories of companies at DSO There are smaller companies which deal more largely with our entrepreneur and incubator ecosystem The other extreme involves global firms such as Fujitsu or SAP and we look at their needs and make sure theyrsquore satisfied as customers They want our help to get setup And then there is the middle group and I meet them if they need my help as CFOrdquo
DSO counts SAP Porsche Fujitsu and Qordoba among its vast bank of companies
19
Cover StoryTECHNOLOGy
wwwthecfomecom
each of which are granted access to the Chappellrsquos well-honed expertise
ldquoBill has been involved in several meetings to gain updates about the company and offer input on what he thinks we should be focusing on whilst asking questions about our financial processes He also sits with the board on occasionrdquo said Loulou Khazen Baz founder of Nabbesh an online marketplace which connects professionals with work opportunities
ldquoDubai Silicon Oasis has been an important Investor at various stages of Nabbeshrsquos journey and a vital stamp of approval Our company has found priceless value in DSOrsquos support and the approachable nature of an involved CFO like Billrdquo
Chappell faces a number of challenges related to investment due to the region not ranking tech developments as high as traditional platforms such as real estate Additional concerns related to innovation have found themselves increasingly entering the CFOrsquos remit as related to encouraging ideas specific to the region Chappell is confident however that certain companies based in DSO are addressing these issues
ldquoIn this region one of my biggest challenges is getting people to understand
ldquoPeople talk about strategybut getting the numbers right must always be the number one thingrdquo
20 wwwthecfomecom
the complexities of tech Technology is a good investment class but the region is focused very much on real estate whilst the investment class of technology doesnrsquot rank as highrdquo said Chappell ldquoIn order to widen the general understanding we want to be developing solutions which address problems specific to the region We have one or two gems for example Qordoba a translation company which translates content in multiple languages The programme utilises artificial intelligence and as a result is getting smarter and smarter each time it is asked to translate so that it understands the meaning of what itrsquos translatingrdquo
Another key variable for DSO is centred on supporting
Dubairsquos goals based around becoming the worldrsquos capital for Islamic finance Chappell describes his role as CFO as one with ldquotwo thousand handsrdquo a multi-layered position which he seems to relish being held responsible for While DSO has grown tremendously in its near decade of existence the free zonersquos exuberant CFO sees lots more to come
Said Chappell ldquoI see us going from strength to strength Wersquove been in existence for nearly ten years When I joined it was empty desert Now we have over 1000 companies and an estimated 43000 living on site Within five years wersquoll also be further down the path and wersquoll be recognised for our contributions to the smart city and the Islamic economyrdquo
ldquoWithin five years wersquoll be further down the path and recognised for our contributions to the smart city and the Islamic economyrdquo
Dubai Silicon Oasis
headquarters
1080Companies in DSO
72millionDSOrsquos land mass in square metres
STAT FACTS
Cover StoryTECHNOLOGy
THE MIDDLE EAST ACCOUNTANCYAND FINANCE EXCELLENCE AWARDSWEDNESDAY 10 DECEMBER 2014AT THE JUMEIRAH BEACH HOTEL DUBAI
ACCOUNTING FOR EXCELLENCE
Once again the very best talent in the world of accountancy and fi nance will be celebrated by ICAEW at a stellar awards ceremony
ICAEW is a professional membership organisation supporting over 142000 chartered accountants around the world And on Wednesday 10 December 2014 at the Jumeirah Beach Hotel in Dubai wersquoll be recognising excellence in ten categories featuring Business Leader of the Year CFO of the Year Corporate Finance Deal of the Year and the Internal Audit Excellence Award
With an impressive line-up of speakers special guests and entertainment it all adds up to a trulymemorable evening
To submit a nomination or for more information visit icaewcommiddleeastawards
Nominations close on 1 October 2014
A WORLD LEADER OF THE ACCOUNTANCY AND FINANCE PROFESSION
400595_ICAEW_MiddleEast2014_Ad_NBAD_DEVERE_207x270_AW_3indd 1 27082014 1541
PROCUREMENTANALyTICS
wwwthecfomecom22
Return on Supply Management Assets (ROSMA) is a pioneering framework launched by AT Kearney after four years of testing one aimed at addressing the aforementioned procurement gaps The performance measurement standard was initiated with an eye on creating a benchmark for the procurement industry and providing a compass to direct investments
ldquoROSMA started in 2010 And it started out with conversations with the CFO There are a group of folks in the company talking about how great their achievements are however
the capital that procurement claims isnrsquot often obvious and can create a disconnect within the companyrdquo said AT Kearney Vice President Federico Mariscotti
This yearrsquos annual report surveyed a number of businesses and arrived at a series of significant findings which outline procurement patternsbull Top-tier companies generate
approximately $16 million in financial return per procurement employee yearly A reported 35 per cent of return derives from applying advanced methods
bull Mid-level performers typically
The first step for compa-nies in the Middle East is to take a good look at what they expect procurement to bring
Leading global management firm AT Kearney recently released a report on the evolving conversation which surrounds procurement A key aspect of the report spells out how much CFOs stand to gain by making more pronounced investments based on utilising procurement in terms of value The relative distance between CFOs and their respective companyrsquos procurement methods is cited as cause for concern
THE NEW LANGUAGE OF PROCUREmENT
generate four to five times of their investment in procurement valuation yet have not exemplified growth since 2011
bull Performers at the lowest level surveyed do not achieve monetary benefits which cover costs
bull The majority of organisations surveyed do not possess the tracking structures needed to analyse procurement performance
bull Regardless of company size or industry procurement
PROCUREMENTANALyTICS
wwwthecfomecom 23
The CFO community has not yet awakened to the value of procurement
performance varies though companies with sophisticated reporting techniques experience less variable performance
The reportrsquos express aim to create a benchmark for procurement follows a wave of process monitoring which found notice in the manufacturing industry in the 1980s supply chain research and engineering in the 1990s and sales and marketing performance being closely tracked in the 2000s
ldquoProcurement costs can represent anything from 20 to 90 of a companyrsquos total cost going from the public sector to consumer goods Yet the productivity of the team that presides over the supply market interactions has a way of explaining their value add using savings that do not add up to the PampL impact measured by finance Savings definitions different baselines and cost avoidance all contribute to a murky aggregate view of the impact on the businessrdquo added Mariscotti
In the Middle East the challenge is fundamental ndash getting the spend data in the first place Companies admit they often do not have a clear categorisation of intelligence lack an agreed definition of savings measurement and generally position procurement as a pre-eminently transactional activity lacking the mandate to contribute value Procurement processes as a result remain centred around purchasing are paper based and lack transparency The first step for companies in the Middle East is to take a good look at what they expect procurement to bring
wwwthecfomecom24
Influencedspend
The inconsequential The brand leaders
Leaning up
Note All three segments start with a common hypothetical spend of 1000 to normalize the case example
Source AT Kearney analysis
Source AT Kearney analysis
TOP QUARTILE
mIDDLE-TIER 50
BOTTOm QUARTILE
704
764
644
522
527
396
42
30
(138) (25)
(63)
19
39
28
15
21
4
3
60
32
18
Sourcedspend
Units of yield
Post-compliance
benefits
Additionalbenefits
Financial results
delivered
19x
17x
middle tier
bottom quartile
TOP-QUARTILE PERFORMERS DELIVER NEARLy TWICE AS MUCH VALUE AS MIDDLE-TIER PLAyERS
THE CFO COMMUNITy HAS NOT yET BEEN ldquoAWAKENEDrdquo TO THE VALUE OF PROCUREMENT
Procurement is not on the radar for those who gave the wrong answers to three essential questions
leadership with accountability for performance is clear but either the measures are not clear or performance is believed to be weak variable or unknown ndash or a mix
leaners and leaders answered all three essential questions correctly and also answered most or all other questions correctly
to the table and how it should support the business To make a steep change companies need to understand the multiple benefits which will occur for investments made once theyrsquove allowed for stronger procurement practices
The benchmarking aspects of ROSMArsquos report speak directly to CFOs based on an existing widespread inability to track and improve this often unquantifiable nature of procurement practices According to the report the CFO community has not yet awakened to the value of procurement and Chief Financial Officers are thus divided into three segments The brand leaders (25) those leaning up (63) the pack (774) and the inconsequential (138)
Said Mariscotti ldquoThis is a way to give procurement a measurable quality that CFOs can quantify You have to know what yoursquore doing with relation to procurement in order to do it well ROSMA gives you a number which helps you understand how good your procurement is working as compared to peers It lets you know whether or not you could be doing something differentrdquo offers Mariscotti
CFOs have exemplified an increasing ability to share in a companyrsquos strategic efforts whilst expand their respective remits Procurement is emerging as the latest segment of this conversation Understanding its value beyond the transactional is the first step for CFOs to fully engage with harnessing the potential of procurement and grow to become a part of the elusively paltry portion of brand leaders indicated in ROSMArsquos report
PROCUREMENTANALyTICS
The pack(774)
Al Sharid is the Vice Chairman of Emirates Transport and has enjoyed a successful career in which the lionrsquos share of his tenure has afforded him a seat at the helm of the business
ldquoI remember when I first received the GM of Tata in the late 80s he said to me lsquoYou are the youngest GM I have ever metrsquo I was 29 years old at the timerdquo Looking at Al Sharidrsquos rapid ascent to the top of his organisation can be mind boggling to the average observer however to those few who strive to push themselves to their limits it is perhaps more common a reality As with any top performer we can often see their desire for results and impact
early on in life and with Saeed the first stride of his race to the top began with an accounting degree in university
It was 1976 and the excitement of the UAErsquos biggest milestone moment its inception just five years earlier still clung to the air from Fujairah to Abu Dhabi and every emirate in between A nation was being built Saeed had just finished high school and went to the United States where he was to study engineering
ldquoI was not yet 18 years old it was 1976 and I was sent to America to study it was the beginning of a dream and a young liferdquo says Al Sharid Unfortunately Al Sharidrsquos academic tour of duty came to
THE EmIRATI DREAm Saeed Al Sharid is today an elder statesman in the world of UAE accountancy With decades of know-how based on chairing a number of key Emirati organisations Al Sharid is today atop his own family firm In the following exclusive interview he shares the importance of education the evolution of a nation and just how being an accountant has driven his many triumphs
an abrupt halt when his father suddenly passed and he was forced to return home ldquoWe are seven brothers and I am the middle one so during tough times we always come together and during this period the strength of my family pulled me through I have three younger brothers and I felt I had to be there for them I felt responsible for them My mother played an omnipotent role in pulling us through this dark moment in our history The death of my father forced us to become more independentrdquo says Al Sharid
Now back in the UAE with his plans of studying abroad dashed Saeed looked at the local schooling system within which Al
26
InterviewPERSONALITIES
wwwthecfomecom
Saeedrsquos desire for results took its first stride with an accounting degree in university
By Shane phillips
27
InterviewPERSONALITIES
wwwthecfomecom
Ain University had just opened ldquoAl Ain University was the pride of the Emirate at the time the students were like celebrities The first batch of graduates were all promised 50000 AED from HRH Sheikh Zayed I was one year late so technically I should not have graduated with the first batch but I was determined I worked an extra course load did summer school and soon caught up to the first class 50000 AED in 1981 was like 5000000 AED today so I was very motivatedrdquo says Al Sharid
Saeed not only caught up with the other students but he wound up graduating atop Al Ain Universityrsquos first class of graduates with a 38 GPA ldquoWe Saeed Al Sharid
28 wwwthecfomecom
to the organisationrdquo he says Saeed first joined Emirates Transport after seeing a small newspaper advertisement for an accountantrsquos position He applied but initially they did not want to hire a local because locals were too expensive After a few months however they called him back for an interview and offered him a job
Initially Saeed struggled to get a promotion or even a raise He worked tirelessly to develop himself and kept detailed notes of his work After nearly two years went by with no promotion he requested to meet with the Chairman of the corporation to discuss his career The Chairman was a Minister making him even more senior than his title implied Al Sharid was courageous and determined ldquoYou should not stay silent you have to take initiative your future is in your handsrdquo says Al Sharid
ldquoI met with the Chairman and told him about my work and what I wanted to do He did not talk he just listened and that was it It was a 15-minute meetingrdquo says Al Sharid Three days after Al Sharidrsquos pivotal appointment he was promoted to Deputy General Manager Directly from a Trainee to DGM skipping all the roles in between at the age of 27 years old They doubled his salary and catapulted him into a senior leadership role
ldquoI felt it was quite strange to move up that fast and personally was not sure I could handle the job I had a lot of resistance from the board I had people in their 50s reporting to me and they were not happy about it So I just took a step back and did not try to get involved in their work too fast I went slow and watched my step This was a very important
ldquoThe UAE was a brand new country and a lot of work was being done to develop the nationrdquo
never had any idea of a career path and there was no such thing as career counsellors or lsquocareer servicesrsquo at the school So when you graduated most people just joined the Ministries The UAE was a brand new country and a lot of work was being done to develop the nation The Federal Government paid the highest and so one just joined them There was no grand vision or dream that I was off and chasing In those times you simply tried to do the next best thing So I ended up working in the Ministry of Health as an accountant Back then a university degree was a veritable qualification and it had a lot of market equity today it wonrsquot even get you in the doorrdquo
As the Middle East market evolves not only are university degrees becoming more common but so are post graduate degrees such as MBAs and even PhDs As such the competitive positioning of professional qualifications are gradually eroding over time
ldquoTo stay competitive executives today will require deep and specialised knowledge of their respective industries an intellectual arbitrage that provides superior results To beat the market to manage the risks to develop a sustained competitive edge For this executives need to stay in a role for the full strategic cycle which is at least four years in durationrdquo says Sharid In the case of Al Sharid he was there for 33 years
ldquoDo you just want a job or are you looking to make a contribution to your company Too many young people today are just looking for a title or a position The difference between those who make it into senior roles and stay there is the desire to create impact to add value
InterviewPERSONALITIES
2012year Moodyrsquos upgraded the UAE economy from developing to emerging
37The UAErsquos global rank for GDP
STAT FACTS
moment for me to gain valuable leadership experience early on To make my learning curve even steeper the General Manager quit after two years and I became the GM at the age of 29 years oldrdquo explains Al Sharid
He ascended to the top job in less than five years and stayed in the position for almost twenty years He was totally committed and could even be found in the bus yard at four in the morning to greet the drivers as they started their shifts ldquoThe key to being successful in business is to keep your finger on the details Some people let the details slip and if this happens you will suffer I get into the yard I meet the drivers I meet all the staff If you saw us you will not know who was the GM or who was the driver You have to realise people will never work for you they will only work with you To me Emirates Transport is like my familyrdquo says Al Sharid
When asked what his keys to success are he says ldquoI think if I was not an accountant I would not be a good leader I would not be a good manager In my opinion trying to do business while not understanding accounting is like getting into the ocean and not knowing how to swim you will drown The Chief Executive Officer who does not know how to create the financial statements is always at the mercy of his Chief Financial Officer He cannot take any big decision on his own and he will not even be able to challenge the CFO Accounting is the bedrock of any business and a critical skill set for any leader No one can argue with this factrdquo says Al Sharid
With over 20 years of experience in tow and the related chairmanships to boot Al Sharid
ldquoTrying to do business while not understanding accounting is like getting into the ocean and not knowing how to swim you will drownrdquo
has since early last year partnered with his family to form Al Sharid Auditing Though the Emirati youth is not as keen to pursue positions related to accountancy as Al Sharid was he feels that there is hope to close the gap
ldquoIt is difficult to find an Emirati expert I studied the audit market specifically and there were others like me then But now you break Emirati auditing involvement into three categories The first involves the big firms This is followed by individual smaller enterprises But thirdly a lot of locals opt to work with the government also Most are not managing their own firms they just have a partnership and they are building thatrdquo Al Sharid explains
ldquoAl Sharid Auditing however is a firm that includes my brother and our two sons which make up a body of qualified professional auditors We established this firm last year and work closely with the government We decided to make one firm together instead of having many smaller entitiesrdquo
Moving forward Al Sharid plans to grow his familyrsquos firm by applying the very belief system which has catapulted him to his position of power Marketing concerns which are designed to furthermore announce how tailored Al Sharidrsquos offerings are at present a key variable to forging ahead
Said Al Sharid ldquoMoving forward wersquore focusing more on the marketing of our firm Itrsquos a matter of not exactly expanding but going over the right deals The market is tough and the small jobs are easy but we donrsquot need them We donrsquot want to be in many rooms we want to be in the important onesrdquo
29wwwthecfomecom
InterviewPERSONALITIES
1UAErsquos rank among GCC nations for chosen hub of all major accountancy bodies
STAT FACTS
Latest insights from PwCrsquos 15th Annual Global CEO Survey revealed that 59 per cent of CEOs see emerging markets as more important than developed markets to their future What is making emerging markets such a pressing priority for C-suite executives Why are emerging markets increasingly grabbing headlines
Emerging markets are large fast-growing and ambitious markets best known for being the growth engines of todayrsquos global economy Research (1) suggests that emerging market countries are expected to amount for more than 60 per cent of global GDP growth ndash a clear indication of the wealth of opportunity they present
Understanding emerging marketsBased on estimates by the International Monetary Fund emerging economies are expected to grow two to three times faster in comparison to developed nations Explaining this fast-growth and the rise of these emerging markets an article on Forbescom details that ldquoduring the US housing crash and resulting credit crisis of 2008 world markets were saved from a total disaster thanks to the big emerging markets ndash mainly Brazil India and China The global credit crisis was one of the longest deepest and most painful in history It toppled Wall Street icons like Lehman
The following report explores emerging markets from West to East which are at the helm of economic development trade and innovation and highlights what their rising popularity means for the growth of your business
Brothers required government bailouts of bulge bracket banks and shocked the global economy with a deep economic recession and even a deeper crisis of confidence Its most important legacy though may be one that has yet to fully unfold the crisis revealed a new world order in terms of economic and market dynamics Emerging market economies finally arrived as
30
Market IntelligenceANALyTICS
wwwthecfomecom
ENTERING EmERGING mARKETS STRATEgIES RISKS ANd OppORTuNITIES
Projected annual GDP growth 2014 amp 2015
PANAMA
67
PERU
RANK42
55
Projected annual GDP growth 2014 amp 2015
Ease of Doing Business
RANK55Ease of Doing
Business
TOP TEN MARKETS
(1) Source here Accenture Research ldquogearing up for growth ndash five imperatives for success in emerging markets 2011 Henry Egan and Armen Ovanessoff
31
Market IntelligenceANALyTICS
wwwthecfomecom
LATVIA
CZECH REP
MALAYSIA
THAILAND
SOUTH KOREA
CHINA
RANK75
41
21
50
45
35
74
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
CHILE
RANK 34
43
Projected annual GDP growth 2014 amp 2015
Ease of Doing Business
RANK 24Ease of Doing
Business
Ease of Doing Business
RANK 6Ease of Doing
Business
RANK18Ease of Doing
Business
RANK 7Ease of Doing
Business
RANK 96Ease of Doing
Business
POLAND
32
RANK45Ease of Doing
Business
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
Source httpwwwbloombergcomnews2014-01-29qatar-china-top-ranking-of-frontier-and-emerging-marketshtml
powerful essential and permanent contributors to global economic growth and sustainabilityrdquo
Bloombergcom recently ranked the top emerging markets based on their performance on 19 economic financial political and social indicators In order of ranking the top ten markets were
CHINA
SOUTH KOREA
MALAYSIA
CHILE
THAILAND
PANAMA
PERU
LATVIA
POLAND
CZECH REP
1 6
2 7
3 84 9
5 10
Market IntelligenceANALyTICS
32 wwwthecfomecom
Making an entryIf your business is looking to enter any of these emerging markets itrsquos worth considering the following checklist
1 Assess your readiness The biggest mistake you can make is to enter a market without proper evaluation of your business Donrsquot do it just because everyone else is Like every other major business decision be sure to speak to your Board of Directors partners investors stakeholders and most importantly your CFO and certified accountants Make a business plan enlisting your objectives goals investment strategy potential risks etc
2 Research research research Do your homework Treat emerging markets as any other international expansion venture and do thorough research on the new market ndash Who are the competitorsWhat is the price point for your product What are the customer demographics What kind of infrastructure do you need for the manufacturing production or distribution of your product
3 Understand the legal framework Emerging markets might not have rules and regulations as clearly spelled out as your home country Invest some time and money in understanding how business procedures work A very obvious area of focus for UAE-based companies is tax Since the UAE is a tax-free economy companies arenrsquot exposed to tax accounting and other legislation surrounding
ndash failing to adapt to the needs and expectations of the local customers is surely a recipe for failure Time and again companies havenrsquot been able to create a customised offer and have had to exit these markets with huge losses A success story however is that of the Haier Group Haier famously introduced washing machines to specifically suit the water pressure levels in the households of India ndash an emerging market strategy that worked very well in their favour and helped them become leaders in that sector Another great example is that of Coca-Cola as explained in an online Reuters article by Matt Reilly ldquoIn Brazil Coca-Cola has used social media to better understand consumer preferences and has developed a successful local network to supply traditional Coca-Cola products as well as fruit juices tailored to local tastesrdquo
7 Local currency This is a complex yet critical area to consider when entering a new market Ask yourself questions such as ndash What is the local currency rate How does it compare to the currency in your home country Is the country import-led or export-led and what impact can this have on the global value of the currency Remember that fluctuations in currency rates can hugely effect your overall investment and thereby the return on investment
8 Build partnerships When entering an unknown territory it is quite useful to have the backing and support of peers who can help you in case of unforeseen challenges This is
this Another area to consider is corruption ndash emerging markets are notorious for high corruption red-tape and bureaucracy Speak to your company lawyer to assess these areas and take proper measures to avoid them before-hand
4 Invest in local talent Working with people already accustomed to the new market avoids the hassle of relocation and reduces costs But more significantly gives you skilled talent to work in these unique environments This also works in favour of your company as it gives you a clear understanding of the kind of compensation packages you will have to offer to your employees For instance employees based in China might want high remuneration and low healthcare benefits while in India it may be quite the reverse Recruiting local talent will also have a trickledown effect ndash your employees will easily be able to cater to the local customer needs without the need for intense training
5 Supply chain 44 per cent of business leaders surveyed consider accessing the right supply chain capabilities extremely or challenging in emerging markets according to Deloittersquos Globalisation Survey Make sure that you know who your suppliers will be what the production costs are whether their production procedures fit your time constraints and if the final product matches your level of quality
6 Cater to local market demands This is one of the most important aspects of all
Do your homework Treat emerg-ing markets as any other internation-al expansion venture
Market IntelligenceANALyTICS
33wwwthecfomecom
the very reason why Mergers and Acquisitions are a popular way to enter into emerging markets Many companies piggyback on their clients who are entering these markets For instance if you are an IT consultancy working on a major project for a manufacturing and trading company with operations across India and China you can use their resources and expertise to explore opportunities in these countries
Remember to consider these steps every time you enter a
new market as every locality has its own set of unique needs One strategy doesnrsquot fit all
Surviving fierce market conditionsWhile the massive opportunity that lies within emerging markets paints a pretty picture businesses need to be wary of bottlenecks such as corruption volatility gaps in laws and regulations and strong competition There have been several high-profile cases of multinational companies withdrawing from emerging
markets owing to immense corruption pressures
There is also a high percentage of inherent risks in these markets which amount to many companies not succeeding in their first attempts It is important to take your time when adapting to these markets and fully understand the business dynamics Following recent case studies and going over the lessons learnt by multinational companies who have made an entry into these markets consider the below
bull Is your companyrsquos head-office ndash and senior management ndash located in your home country without any C-level representation in the new emerging market
bull Are you focusing all of your resources on doing business in the emerging market at the cost of losing profits in your home market
bull Have you researched local competitors in these markets who may already have a strong standing and proven models of success
bull Are you using the same ldquoentry approachrdquo and business model across different emerging markets
If your answer to one or more of these questions is yes it may be time to re-evaluate your presence in these markets and map out a different strategy
Finally remember that no matter what the outcome of your admission to these markets might be your business is sure to emerge out of this stronger tougher and ndash of course ndash ready for a new challenge
of companies believed they had invested more resources in
emerging markets than was required
entered a market without fully assessing the ability of the supply chain to support the expansion
entered with the wrong pricing model and an inappropriate
operating model
CONSIDER THE RISKS
48
24
20
There is also a high percentage of inherent risks take your time when adapt-ing to these markets and fully understand the business dynamics
Source Emerging markets expansion and the supply chain Economist Intelligence unit survey conducted on behalf of EY September 2010
34
CIMA INTERVIEW
wwwthecfomecom
The Chartered Institute of Management Accountantsrsquo (CIMA) Managing Director Andrew Harding visited Dubai to host the Institutersquos seminar on global management accounting principles In the wake of CIMA revising their well heralded syllabus Harding discussed with CFO Magazine what the newest edition held how CIMA is applying a digital focus to its courses and just how CFOs can gain from it all
CURATING CURRICULUm
35
CIMAINTERVIEW
wwwthecfomecom
can give CFOs something they can take and something they can measure their own management accounting services against They can benchmark using this and they can utilise this to see their progress
Part of that is having professional management accountant in place I donrsquot think the landscape matters I believe that there is a common business need wherever you may be around the globe
All of the emerging markets need these skills The first aspect that accounting schools teach is about auditing skills because theyrsquore interested in protecting investments Then they teach you how to keep your business sustainable and to have a sustainable business you need to have a management accountant in place So itrsquos not just here in the UAE where we see these demands we see the same demands in China Indonesia and other powerhouse economies We see their skills shortages and we see the need for solutions in those areas
Talk to me about how this new syllabus works to promote the evolution of a CFOThis syllabus that wersquove
Can you expound on just what can be found within the new CIMA syllabusWe just revised the syllabus we do that every four to five years What we have done this year is a very significant revision It is based from a complex study that we have carried out to over 3000 people from 200 companies globally It is the very first revision since the joint venture with CIMA and AICPA So this has allowed us to attain a syllabus rich with all the data from all the continents in the world For the first time wersquove had real involvement from companies in the USA in this project
Why is the collaboration between AICPA and CIMA significantMost important is the Chartered Global Management Accountant (CGMA) designation that AICPA and CIMA both issue for qualified management accountants Wersquoll have a common curriculum and common examination which will begin on January 1 which gives us a global designation for management accountants wherever they are around the world There are plenty of accounting bodies who claim to be global but actually this is the only
genuinely global designation This is because it has the only one with a North American participation in it So we can say that the CGMA will be just as well-recognised in the USA as it is in Dubai
With the global landscape in mind how do you create an even objective that applies to localities which may prove widely differentialThe landscapes are different but businesses have common needs wherever they may be What wersquove particularly seen since the global financial crisis is that companies are actively looking to build management accountant capability to build that capacity within their organisations They donrsquot want to have a poor quality of information that lacks insight being used in their businesses So they see management accountants can bring solutions to that As a result of all the work wersquove done with companies who participated in the syllabus wersquove also put together a series of what we call Global Accounting Principles This is a series of principles which describes what good management accounting looks like and what top quality management accounting in a company should be producing This then
ldquoCompanies are actively looking to build man-agement accountant capability to build that capacity within their organisa-tionsrdquo
36 wwwthecfomecom
worked on acknowledges the skill set needed by professionals throughout their career Therersquos a base level of competence that is needed but beyond that there is more There is business acumen the ability to communicate and influence and finally the ability to lead So you start off enhancing your raw technical accounting skills Then you need to place that into the context of the business that you are in Then as you move forward and as you rise to become the CFO yoursquoll need the others You have to learn how to present your work in a way that can influence and make an impact in the business The final piece is the ability to lead projects and other functions and to a great extent lead the board of directors Thatrsquos how the context works itrsquos not just about technical knowledge
How do you find that CFOs in the GCC region are responding to this programmeThe CFO has a real challenge on his hands now In 1975 80 per cent of corporate value is showing on the balance sheet By 2010 that dropped to less than 20 per cent Your traditional PampL reports no longer reflect the value of the business or how the business drives value
All things that should be of interest to investors is missing With things like the integrated report initiative wersquore starting to see the other dimensions that add value to business For CFOs thatrsquos all about strategic thinking and considering the long-term objectives Being articulate in implementing those strategies keeping in mind the risks and opportunities that the business faces We are also nowadays witnessing a whole new world of transparency around that
Are there electronic aspects to CIMArsquos advancing approachThe interactive case study simulates a real working situation and it tests how they can apply their knowledge in real life situations Theyrsquoll be presented with a scenario a few weeks before they take the exam so they can prepare for it They then go to an exam centre where they are asked questions about how they will deal with a certain situation in the real world Theyrsquoll get an email from the CFO giving them a certain task for a particular period of time We want to make it as close to reality as possible so students taking the exam will be assessing situations based on real life scenarios
ldquoThe CFO has a real challenge on his hands now as traditional PampL reports no longer reflect the value of the businessand [the role] must focus on strategic thinking and considering long-term objectivesrdquo
218KCIMA members worldwide
STAT FACTS
CIMA INTERVIEW
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
38
ERPANALyTICS
wwwthecfomecom
Faster more nuanced IT solutions are available to the modern day CFO Whilst Chief Financial Officers are called upon to analyse data across a number of spectrums the digital tools on hand are likewise being expanded to aid in focusing more squarely on the bottom line
ExCELLING WITH ERP
The global landscape is today firmly entrenched within a digital model As a result CFOs whom are called upon to take a larger role in a number of variables must also increase their abilities with respect to utilising the many upsides which tech innovations offer a business When surveyed about their most pressing concerns CFOs generally return a varying collection of responses Revenue growth regulatory changes and meeting quarterly goals are among the chief concerns Virtually every obstacle can be hurdled by way of maintaining the order of financial reporting and data which has long been
synonymous with the Chief Financial Officerrsquos remit A widening berth of ERP solutions is making this data all the easier to come by
Despite how sophisticated the market is today it was not long ago that ERP departments once spent days processing business reports
Said Rohan Tejura Assistant Vice President Focus Softnet ldquoTraditional ERP systems were solely data repositories Moreover these repositories werenrsquot real time and were incredibly dependent upon locational connectivity With the emergence of smarter development platforms more versatile devices and
39
ERPANALyTICS
wwwthecfomecom
more intuitive designs of system development the overall experience of the ERP now extends from data warehousing to reporting analysis trend mapping business intelligence and governance oriented capabilities Yet these solutions amazingly execute all of these deliverables via portable handheld devices and through cloud environmentsrdquo
New generation ERP systems must now be on the go whilst including up to the minute analytics to provide deeper insight into the business ERP Analytics tools use historical data captured from various business functions to provide valuable information for efficiency and business performance each incredibly priceless to a leading CFO
Finesse is an ERP provider which is continually addressing the transformation of output which the ERP industry is offering the equally transitioning role of CFO
ldquoWe provide end-to-end business management solutions to SMEs and Enterprises Our approach to ERP is much more than providing simply an operational management systemrdquo said Finesse COO Sunil Paul
ldquoWe believe that todayrsquos businesses need much more than integrating sales with inventory accounting and manufacturing but also to have seamless integration with all their sales channels including the point of sales ecommerce and inbound sales solutionsrdquo
A major im-petus of the ERP-cen-tered growth is based on how effec-tive com-prehensive real-time data proves to be for the CFO
40 wwwthecfomecom
before thereby creating new global benchmarks for overall economic growth
Microsoft Arabia CFO Sadrul Khan offered insight into just how far the knowledge economy has influenced regional financial leadership by explaining how one of the most prioritised technologies by CFOs in the region is social platform monitoring
ldquoOne of the five technology choices that CFOs tend to prioritise in boosting productivity efficiencies and faster decision making in the fast paced business environment which include a social platform that monitors trends customer sentiments and helps process mashable data for customer centricity and business growthrdquo said Khan
A major impetus of the ERP-centered growth is based on how effective comprehensive real-time data proves to be for the CFO Whether employed as on-premise ERP software-as-a-service or cloud-based solutions a nearly identical ethos is being utilised Allowing the CFO to quickly access the performance of all facets of a business is paying dividends in the boardroom a reality which is showing itself increasingly in the Middle East
The technologically-charged relationship between ERP solutions and the regionrsquos CFOs is expanding and as a result has catalysed what many see as GCC economic performance outstripping that of many economies outside of the region as a result
In order to compete in todayrsquos fiercely competitive environment organisations need to think both innovatively and out of the box They require more insights about their business and their customers and need to ensure that they are able to meet the expectations of their internal as well as external stakeholders Enormous amounts of data both structured and unstructured is continuously being generated within the internal and external systems of the organisation which if analysed can be of immense value both to the business and subsequently the stakeholders associated with the organisation
With the the era of CFOs labouring over spreadsheets now in the past given how many business frontiers have become so dependent on mobile options such as the cloud more and more tech companies are providing the regionrsquos CFOs with information technology that converts traditional internal and external data into rich visual insights This information is then used for faster decision making and provides the ability for a CFO to assess manage and control risks Regional CFOs have grown enabled to drive corporate strategy accordingly demonstrating how the knowledge economy is now in full force amongst the Gulfrsquos corporates
Given that advanced IT has now become a regular CFO tool the regionrsquos CFOs are subsequently making faster decisions and driving internal growth models with greater speed and agility than ever
Tech companies are providing the regionrsquos CFOs with information technology that converts traditional internal and external data into rich visual insights
ERPANALyTICS
Donrsquot discoveritrsquos counterfeittoner afteritrsquos too lateOriginal HP Toner works first time every time1 unlike cheap toners which fail over half of the people who try it2 Non-HP toner can compromise your printerrsquos performance to give you streaked blotchy or faded prints Only original HP Toner cartridges deliver unmatched quality for the most professional-looking prints 100 of the time1
1 A QualityLogic 2010 study commissioned by HP comparing original HP LaserJet Monochrome print cartridges with nine brands of non-HP toner cartridges available in Europe Middle East and Africa for the HP LaserJet P1505 and P4015 printers HP 36A and 64A For details see wwwqualitylogiccomEMEAmonotonertestpdf 2 From a 2012 EMEA Lyra Research study commissioned by HP Results based on a total of 1050 HP Color LaserJet users who have used both original HP and non-HP toner cartridges of whom 552 experienced problems with non-HP cartridges
copy 2014 Hewlett-Packard Development Company LP
42
Private Equity ANALyTICS
wwwthecfomecom
The rise of PE-backed acquisitions is forcing CFOs to develop an entirely new set of skills
THE PRIvATE EQUITy CFO
The CFOrsquos utility in the world of private equity is without question on the rise The once-held belief of the CFO existing solely as the ldquoaccounting guyrdquo has been abandoned Over the last 20 years the role of CFO has become more demanding - requiring not just finance and accounting acumen but also a financial literacy in corporate planning risk management MampA assetliability management and regulation This evolution has been driven by a number of
key factors Yet the private equity industry which is now reshaping the corporate landscape through active ownership is by far the most significant factor driving change within the role of the CFO
PE-backed buyers today represent a larger percentage of overall buyers in the corporate acquisition marketplace than ever before Data provider Prequin estimates that as of June 2014 the capital raised by PE funds that
has not yet been deployed amounts to $114 trillion globally The result of this ldquodry powderrdquo is that a vast quantity of corporate acquisitions in the coming years will be undertaken by the private equity industry As such CFOs will be more accountable to demanding ldquosmart moneyrdquo shareholders than at any point in recent history Budgeting accounting and financial reporting will no longer exist as sole priorities but as a core competency among a
ldquoBy effec-tively using real-time data CFOs can create a dynamic process that proac-tively drives performance account-ability and value crea-tionrdquo
By Aaron Heidari
43
Private Equity ANALyTICS
wwwthecfomecom
robust set of complimentary and required skills Most of all the bar for CFOs is rising as PE investors will only accept above-average performance from their management teams
CFOs were once more reactive in function setting budgets based on other executivesrsquo plans and managing the flow of reporting to shareholders on a quarterly and yearly basis Today CFOs are required to become proactive managers of their respective businesses alongside their C-suite compatriots using a granular data-driven approach to aggregate analyse implement and report on every aspect of a companyrsquos operations
An important tool to drive this value creation process are KPIs Yet KPI structures including both aggregation and output are generally not up to the standards required of private equity investors prior to an investment being made
ldquoThe benefits of using KPIs and monthly reporting packages are significant By effectively using real-time data that is actionable and by partnering with functional area leaders within the organisation company CFOs can create a dynamic process that proactively drives performance accountability and value creationrdquo said Amanda Robinson Vice President of Accordion International in Dubai a consulting firm which is comprised of former private equity and investment banking professionals who
MENA region Cumulative Funds Under Management Since 2008
Source Zawya private Equity Monitor
19 636 20 36321 586
22 64323 506 24 250
-
5000
10000
15000
20000
25000
2008 2009 2010 2011 2012 2013
Cu
mu
lati
ve f
un
ds
($ m
)
$15mAverage MENA PE investment size in lsquo13
50Percentage of investment in IT and energy sectors
STAT FACTS
44 wwwthecfomecom
work with companies to deliver cost-effective project execution services
Active shareholders whose money it is being spent will typically require a data-driven justification before approving any budgets capital expenditures or new acquisitions Furthermore in many private equity backed companies the use of debt and the matching of shorter-term bank financing with longer-term investments will only be considered after a robust analysis is conducted to understand the companyrsquos ability to service that debt in the future This evaluation is not simply to identify revenues expenses and profits Itrsquos about drilling down into every transaction and rooting out data processing and reporting At least that is the expectation
The most valuable CFOs are those who have the ability not just to scrutinise and understand the financials but all also possess a wider grasp of the underlying data which truly comprise the business As an investor who has just acquired a stake in a new business I want a CFO who can manage the transition and stay ahead of my expectations Most of all a CFO should impress upon the companyrsquos shareholders a new way of doing business The first 100 days of an acquisition are said to be the most important During this period the CFOrsquos worth will be established when the new financial plan is due and the platform for the next five years of growth is presented
A CFO should man-age the tran-sition stay ahead of expectations and impress upon the companyrsquos shareholders a new way of doing business
Investment Volume By Sector Since 2006
Investment Volume By Sector in 2013
Source Zawya private Equity Monitor
1
3
30
17
3
28
3
4
6
4
6
5
17
9
9
6
9
5
8
6
6
2
3
10
Education
Education
Information Technology
Information Technology
Other
Other
Telecoms
Telecoms
Media
Media
Transport
Transport
Oil amp Gas
Oil amp Gas
Healthcare
Healthcare
Consumer goods
Consumer goods
Food amp Beverages
Food amp Beverages
Leisure
Leisure
Manufacturing
Manufacturing
ANALyTICS
Private Equity
2000857 NBAD ratibi mag ad 200x268 Finalindd 1 92514 1017 AM
46 wwwthecfomecom
THE FUTURE OFACCOUNTING EDUCATIONAddRESSINg THECOMpETENCY CRISIS
Have you ever stopped to think about how the accounting profession has changed since you graduated from college Recent graduates can answer this question by reflecting on the last two or three years whereas for other more seasoned professionals answering this question requires a bit more thought and memory searching Indeed we can all think of ways that the field of accounting is remarkably different today from the one we likely envisioned during our college daysmdashregardless of which decade we each donned our cap and gown This gradual transformation of the accounting profession leads to two important questions related to competencies bull Which competencies are important for success inaccounting todaybull Were these competencies consciously developed as partof your accounting degree programme
We suspect that more than a few of you would answer ldquonordquo to the second question Put another way our profession may be facingmdashmore so than at any time in the pastmdasha ldquocompetency crisisrdquo that is a gap between the competencies needed for professional success and those taught in our college classrooms today We propose a three-pronged strategy or ldquogame planrdquo for overcoming this competency crisis and in turn better preparing accounting graduates for the challenging world they will face First all of us accountants need to understand the changes that have already taken place in our profession and perhaps more importantly anticipate the changes that are on the horizon Second we need to educate ourselves and future generations of accountants so that as a collective group we can deliver the expanding set of competencies demanded in todayrsquos dynamic organisational
contexts Third as professional organisations and as individuals we need to think beyond ourselves by asking How can I (or we) help the accounting profession address the competency crisis
A Shift Toward Integrated ThinkingMany articles and white papers have been written that describe in detail the changes that have occurred in our profession over the last few decades but for our purposes wersquod like to distill these changes down to one crucial idea How does the accounting function add value to an organisation Accountants have evolved from support-oriented personnel who hand off information to others who actually make decisions into business partners who ldquohave a seat at the tablerdquo with managers
By peter C Brewer James E Sorensen CpA CgMA and david E Stout
47wwwthecfomecom
1048576bull What regulatory risks mayaccompany the proposal
1048576bull What social and environmentalfactors will we face if for example the proposal requires investing in overseas operations
1048576bull What types of employeeresistance may arise if we implement the proposal and how will we overcome the root causes of any such resistance
1048576bull Can and how should we valuefuture options associated with the proposal such as expanding or contracting the investment over time as new information becomes available
1048576bull Should we use debt or equity tofund the proposal
In short accountants have evolved to become integrated thinkers who enable EPM by partnering with managers across the organisation to add value Yet as EPM has gradually become the centrepiece of our professionrsquos value proposition accounting education hasnrsquot done enough to embrace it To overcome this gap wersquod like to further suggest that the concepts of competency integration and EPM need to come ldquofront and centrerdquo as we move forward in educating the next generation of successful accounting practitioners
Accounting Education No Longer on the SidelinesRecently a task force consisting of members of IMAreg (Institute of Management Accountants) and members of the Management Accounting Section (MAS) of the American Accounting Association (AAA) addressed the competency issue How should accounting education change fundamentally to help close the competencies gap The efforts of the task force led to
cash flows and how to apply discounted cash flow (DCF) decision models such as net present value (NPV) is of foundationalmdashsome might say critical mdash importance But integrated thinkers draw on an understanding of organisational strategy coupled with a broader set of competencies (beyond what might be considered technical or foundational knowledge) when making these types of decisions For example they consider how behavioural issues may influence the capital investment decision-making process Perhaps the financial estimates contained in the NPV analysis are too optimistic because the manager who prepared the numbers has a vested interest in seeing the project approved Decision makers also need to consider issues such as leasing vs buying a capital asset and the corresponding impacts on the financial statements and ratios that are tracked by investors and lenders What nonfinancial factors are associated with the proposed investment Add in the tax consequences of capital investment decisions coupled with the need to maintain internal control over any new business processes tied to these decisions and the need to think in an integrated fashion across a variety of accounting competencies becomes apparent
Furthermore becoming a true business partner with managers across the organisation requires more than simply integrating various accounting competencies It also means thinking like a business manager or a chief executive officer (CEO) Returning to the capital budgeting example an integrated thinker will ask questions such as
across the organisation Together they formulate and plan strategies then participate in collaborative decision-making processes that execute those strategies in a manner that adds stakeholder value Said another way accountants have evolved to become enterprise performance managers This shift in our orientation from a support function to an enterprise performance management (EPM) role has enormous implications for defining the determinants of success within our profession the most important of which involves becoming collaborators and ldquointegrated thinkersrdquo Take for example a common but important business decision process capital investment analysis Certainly technical knowledge regarding how to estimate relevant after-tax
48 wwwthecfomecom
expanding capital budgeting discussions to include financial statement impacts tax consequences and internal control issues integrates topical coverage across the External Reporting and Analysis Taxation Compliance and Planning and Assurance and Internal Control competencies shown in Figure 1
Third accounting curricula can incorporate a broader set of management competencies For example evaluating capital investment proposals from the perspectives of change management (Leadership) social and environmental issues (Ethics and Social Responsibility) regulatory concerns (Governance Risk and Compliance) and capital structure (Additional Core Business Competencies) brings a CEOrsquos perspective to the decision-making process
Fourth accounting curricula should include foundational competencies such as proficiency with spreadsheets and written and oral communication In the context of capital budgeting this may include asking students to use Microsoft Excel to perform a sensitivity analysis and then to present their findings to the entire class
Working to Fix the ProblemAt this point although you may agree with us that therersquos a competency crisis within the accounting profession you may be wondering What does this have to do with me What can my organisation do to help address this so-called competency crisis The answer a lot Practice partners and academic partners can help the accounting profession overcome the competency crisis That said letrsquos take a closer look at the role of practice partners first
improvement) and accounting competencies (external reporting and analysis planning analysis and control taxation compliance and planning information systems assurance and internal control and professional values ethics and attitudes) Of critical importance to the framework is the assumption that the set of competencies contained in Figure 1 would be developed and integrated over time through a blend of formal education (including continuing education) training and job experience
What levels of integrationmdashon the road to developing integrated thinkers in accountingmdashare possible First accounting educators can integrate within a single accounting competency So referring back to our capital budgeting discussion teaching computational models such as NPV analysis coupled with a review of various behavioural issues associated with capital investment decisions would be an example of integrating within the Planning Analysis and Control competency listed in Figure 1
Second professors can integrate across accounting competencies For example
a recently published article that contains a proposed framework for accounting education reproduced here as Figure 1 The framework is general in the sense that itrsquos meant to apply to all accounting students not subgroups based on career specialisation such as tax assurance services corporate finance and the like Itrsquos based on the idea that accounting educators can better prepare students to deliver our professionrsquos EPM value proposition through integrated competency-oriented curricula (For more see ldquoFocusing Accounting Curricula on Studentsrsquo Long-Run Careers Recommendations for an Integrated Competency-Based Framework for Accounting Educationrdquo in the May 2014 edition of Issues in Accounting Education)
A glance at Figure 1 reveals three levels of competencies foundational competencies (communication ability to leverage technology and analytical thinking and problem solving among others) broad management competencies (including leadership ethics and social responsibility and process management and
Proposed Competencies-based Framework for Accounting Education
FOUNDATIONALCOMPETENCIES
ACCOUNTING COMPETENCIES
BROAD MANAGEMENT COMPETENCIES
leadership
ExternalReportingamp Analysis
PlanningAnalysis
amp Control
TaxationComplianceamp Planning
InformationSystems
Assuranceamp InternalControl
ProfessionalValues Ethics
amp Attitudes
Communication
Quantitative
Interpersonal
Technological
Analytical Thinking ampProblem Solving
Ethics amp SocialResponsibility
ProcessManagement ampImprovement
GovernanceRisk amp
Compliance
AdditionalCore BusinessCompetencies
Although you may agree with us that therersquos a competency crisis within the account-ing profes-sion you may bewondering What does this haveto do with me
A practice partner should be or become a CMAreg (Certified Management Accountant) maintain professional certification by completing required Continuing Professional Education (CPE) hours and regularly read the IMA publications Strategic Finance and Management Accounting Quarterly
In addition there are a number of excellent resources that deal with topics covered in this article and that IMA makes available to its members
Strategic Finance PowerPacks(wwwimanetorg SFPowerPacks) These are resources focused on contemporary topics similar to those discussed earlier Current offerings include Risk Management Strategic Planning IT Skills amp Software and Internal Controls Each PowerPack includes a combination of resources such as research studies articles and links to webinars
Statements on Management Accounting (SMAs)(wwwimanetorgresources and_publicationsresearch_ studies_resourcesstatements on_management_accounting aspx) SMAs represent monographs classified into one of the following six categories Leadership Strategies and Ethics Technology Enablement Strategic Cost Management Business Performance Management Finance Governance Risk and Compliance and the Practice of Management Accounting Multiple items are available within each category For example the Practice of Management Accounting category includes (among other items)
49wwwthecfomecom
the Definition of Management Accounting and Implementing Shared Service Centres
Research Studies (wwwimanetorgresources_and_publicationsResearch_Studies_and_ResourcesAll_reportsaspx) The ldquoThoughtLeadershiprdquo section of IMArsquos website includes research covering a broad range of issues classified into seven categories For example under the ldquoGlobal Business Environmentrdquo category the following two research reports are available ldquoKey Differences Between IFRS and US GAAP Impact on Financial Reportingrdquo and ldquoCosting Methodologies and Cost Management Practices in the Peoplersquos Republic of Chinardquo
IMA Leadership Academy (www imanetorgprograms_events leadership_academyaspx) As described on the IMA website this programme is designed to assess a memberrsquos leadership status enhance that individualrsquos skills (principally through monthly webinars) and recognise leadership achievements These benefits are free to members
How You Can Make a Bigger Impact In addition to attending local regional and national IMA meetings consider inviting a small group of students to each chapter meeting This could be a wonderful (and relatively low-cost) option for mentoring aspiring accountants and finance professionals providing networking opportunities and introducing students to cutting-edge issues regarding the practice of management accounting Joining a university accounting
advisory group may be another way to influence the development of EPM in that institutionrsquos curriculum design
Other methods to enhance EPM in your organisation include (1) forming user groups within your company your local IMA chapter or your industry to review and share EPM experiences (2) encouraging advancement in the firm to be linked to EPM proficiency (3) focusing your companyrsquos recruiting efforts on candidates who display a background in andor understanding of EPM and (4) organising cross training within your company to enhance a mutual understanding of each otherrsquos respective roles
Finally visit the Competency CrisisTM website (http competencycrisisorg) set up by IMA to unite the accounting and finance constituencies professionals students employers academics and professorsmdashand explore competency issues through the lens of each stakeholder group The site is designed to ldquoencourage a discourse spur action and create a community dedicated to resolving the serious crisis of competency present in the professionrdquo Special sections of the website are devoted to educators students and employers professionals
Our Partners in Education Much like a practice partner an academic partner should be or become a CMA maintain professional accreditation by completing CPE hours and regularly read IMArsquos publications
Academic members of IMA can pursue and actively promote the CMA programme at their respective institutions
50 wwwthecfomecom
IMArsquos website contains helpful resources including an exam content overview content specification outlines for each of the two parts of the CMA exam and learning outcome statements The current exam covers some of the professional competencies represented in Figure 1 A summary of changes to exam content which will be effective in January 2015 is provided on the IMA website in News amp Media Relations which is located under ldquoAbout IMArdquo (See the press release dated March 24 2014) Other helpful resources include ldquoICMA Announces CMA Exam Content Changesrdquo in the April 2014 issue of Strategic Finance as well as ldquoManagement Accounting Career Readiness Shaping YOUR Curriculumrdquo
These forthcoming changes are based on the most recent IMA study of the knowledge and skills needed by management accountants from the view of CFOs controllers and other accountingfinance professionals from around the world
Also consider taking a group of your students to the IMA Student Leadership Conference held each November The Conference provides excellent networking opportunities for you your students and practicing professionals Students can learn firsthand from Conference presenters the challenges and opportunities facing finance and accounting professionals today
Moreover if your institution doesnrsquot currently have an IMA Student Chapter consider forming one One of the authors of this article David Stout reinstituted the student chapter at his school (Youngstown State University) after travelling with a group of his students to the IMA
Student Leadership Conference in Cleveland Ohio Through an IMA Student Chapter on campus students are able to work closely with a sponsoring local IMA chapter and bring to campus speakers who are experts in a wide range of topics including those discussed earlier in this article Each year student chapters compete for an Award of Excellence (AOE) and recognition as an Outstanding Student Chapter In addition IMA student members are able to engage in networking activities leadership training mentoring and community service programmesmdashall through their local chapter
You also might consider volunteering to serve as a Campus Advocate In this role yoursquoll represent IMA in all major matters of interest to your students (scholarship opportunities starting a student chapter mentoring and the like) and to your institution (for example leveraging IMA resources to advance the relevancy of the accounting curriculum use of educational case studies published in the IMA Educational Case Journal and access to IMArsquos ethics curriculum)
And if you havenrsquot yet done this ask IMA to endorse your accounting programme (information is available at www imanetorgeducator_resources indexaspx) This programme is designed to identify business curricula that meet the quality educational standards required to prepare students to earn the CMA designation Endorsement is based on an analysis of the curriculum and topics covered on the two-part CMA exam Currently 12 programmes have been endorsed
Finally if your school has an IMA Student Chapter consider participating in the annual IMA Student Case Competition where students are asked to propose a solution to a real world problem (Cases are solicited each year by Raef Lawson IMA VP of Research and Policy and IMA Professor in-Residence) Finalists make their presentations at IMArsquos Annual Conference amp Exposition before a set of judges consisting of accounting faculty members and practitioners Each year a new case is published in the August issue of Strategic Finance for students to use for that yearrsquos competition
Working TogetherIn this article we have summarised the changes that have affected the accounting profession and provided a competencies-based framework for guiding accounting educators in responding productively to those changes As a management accountant you know that implementing change in any organisation let alone within an entire profession never comes easily To be successful in overcoming our professionrsquos competency crisis IMArsquos practice and academic partners will need to assume leadership roles in defining enterprise performance management as the cornerstone of the accounting professionrsquos value proposition
This article was orginally published in the August 2014 issue of Strategic Finance It appears here with the permission of The Association of Accountants and financial professionals in Business
We need to educate ourselvesand future generations of account-ants so that as a collec-tive group we can deliver theexpanding set of com-petenciesdemanded in todayrsquos dynamicorgani-sational contexts
THE POWERFUL AND THRIFTY OFFICE ALL-ROUNDERS
The new ECOSYS M3560idn series will astound you With their print speeds of up to 60 pages per minute they are among the most productive A4 bw multifunctionals on the market We nevertheless managed to keep their ecological footprint and total cost of ownership impressively low by using our well-known ECOSYS technology and equipping the devices with our renowned long-life components The result Not only less waste and lower maintenance costs but also less hassle for you and all your colleagues You will also greatly appreciate the many customisation possibilities of the devices equipped with KYOCERArsquos open solution platform HyPAStrade as it allows you to tailor the device to your needs So yes we are proud of our new range of MFPs and can hardly wait to share their numerous benefits with you
For more information please contactKYOCERA Document Solutions Middle East | PB Box 500817 DubaiUAE | Tel +9714 4330 412 | Fax +9714 4231 944KYOCERA Document Solutions Europe BV - wwwkyoceradocumentsolutionseuKYOCERA Document Solutions Inc - wwwkyoceradocumentsolutionscom
52
ACCAINTERVIEW
wwwthecfomecom
GLOBAL By ASSOCIATION
across the region from our key employers and learning provider partners to our active and growing student and member base I want to understand their challenges and priorities and how ACCA can work with them to help support the economic success of the region
What can a CFO gain from working with ACCAThe ACCA qualification is about complete finance professionals For CFOs it brings the technical knowledge vital to business success complemented with the strategic management skills and ethical competence crucial to an organisationrsquos success As an organization ACCA in the UAE brings CFOs access to that local and global network of peers and expertise along with our leading research and insights that help them to keep up to date on the issues that matter most
Are there any initiatives in place to leverage the recently announced partnership with AAA
How are the ACCArsquos many years of activity being applied to the Middle EastACCA has now had a presence in the UAE for well over a decade During that time we have established strong relationships across the Middle East epitomised by the recent signing of our Strategic Partnership with AAA As a national body in choosing to partner with ACCA they recognised the local and global perspective we bring We are continuing to work with students members and employers across the Middle East to build their networks knowledge and business success through events research and insights and access to a growing number of online resources
Which initial priorities are among your key aims upon joining the organisationrsquos efforts in the UAEIn the first few months I hope to build on the success of the team in the UAE My priority will be to meet as many of our key stakeholders
The Association for Chartered Certified Accountants (ACCA) provides its services across a number of international borders The recent announcement of Lindsay Degouve de Nuncques as the new head of the Associationrsquos UAE chapter further exemplifies the ACCArsquos reach based on her previous work in the UK Nuncques shares here what she brings to the Middle East and just how globalisation has driven her ascent
53
ACCAINTERVIEW
wwwthecfomecom
The strategic partnership with AAA is the first of its kind in the region Students who complete the UAECA qualification will be entitled to both the AAA and ACCA designations and ACCA members in the UAE will also be eligible to apply for AAA membership This is a very exciting development in the market and together AAA and ACCA will be working to deliver maximum value to all our stakeholders from this partnership As we launch the UAECA qualification this activity will start in earnest
Which key industries will you be spotlighting in the Middle East in the months aheadOur experience of working across all sectors and levels of organisations globally gives ACCA a unique insight into all types of industries We will continue to be working with employers across the spectrum in the months ahead to help them gain the insight and make the connections that drive businesses to succeed at whatever they do
ldquoThe ACCA qualification is about complete finance professionals For CFOs it brings the technical knowledge vital to business success complemented with the strategic management skillsrdquo
54
Islamic FinanceMARKET OUTLOOK
wwwthecfomecom
In its 10th instalment the Forum is hosted in Dubai as a direct result of the UAErsquos increasing importance in the world of global Islamic finance
THE WORLD ISLAmIC ECONOmIC FORUm LANDS IN DUBAI
In Dubairsquos continued quest for leading the world across a range of spectrums the Emirate accelerated its desire to become the worldrsquos leading hub for Islamic finance by hosting the 10th installment of the World Islamic Economic Forum (WIEF) Delegates from dozens of countries attended to take part in a three-day event held at Madinat Jumeirah which rests alongside Dubairsquos gleaming coastline Held under the patronage of His Highness Sheikh Mohammed Bin Rashid Al Maktoum the
Vice President and Prime Minister of the UAE and Ruler of Dubai key speakers included The Honorary Dr Zeti Akhtar Aziz Governor of the Central Bank of Malaysia HE Kairat Kelimbetov Governor of the National Bank of Kazakhstan The Honorary Datorsquo Sri Mohd Najib Tun Abdul Razal Prime Minister of Malaysia and HE Xavier Bettel Prime Minister of the Grand Duchy of Luxembourg
Launched in 2006 in Malaysia WIEF has grown in tandem with the increased
Delegates from dozens of countries attended WIEF to take part in the three-day event
sophistication and reach of Islamic finance After a successful event in London in 2013 amidst increased interest in Islamic finance across Europe WIEF relocated to Dubai where the local business structure is keen to host halal finance
Said Hamad Buamim President and CEO Dubai Chamber of Commerce and Industry co-organisers of the event ldquo[The forum] is the start of a new chapter of cooperation between Dubai and the world as part of
55
Islamic FinanceMARKET OUTLOOK
wwwthecfomecom
Dubai Capital of Islamic Economy visionhellipestablishing a unified regulatory authority to provide the framework for standards across halal industries will significantly accelerate growth Likewise we need to see increased cooperation and partnership between the public and private sectors This is already happening with great success here in Dubairdquo
The order of global cooperation needed to facilitate growth across the Islamic finance world was more than apparent at WIEF based on how many differing nations were represented at the event The exhibitorrsquos hall was populated with a number of key Malaysian stands representative of the Southeast Asianrsquos ranking as the global leader in Islamic finance Also present were companies from Saudi Arabia also a key locality in the worldrsquos halal industries An interesting yet prescient presence was of attendees from South Korea a nation which is eager to participate in Islamic finance and will be hosting the WIEF Pyeongchang Roundtable in December 2014
ldquoGangwon is a province located in Korea which is very interested in new business opportunities Wersquove realised the strength of the Islamic economy and have come here with many different companies The first type is based in real estate investment We also have companies which want to export their products to the Islamic economy based on their halal qualities And Gangwon will also be hosting the Winter
ldquoKorea is very interested in the strength of the Islamic economy and wants to export its products based on their halal qualitiesrdquo
56 wwwthecfomecom
$247trillionProjected value of halal products industry in lsquo18
125Muslim percentage of global tourism expenditure
STAT FACTSOlympics in 2018 and are presently seeking investments for this as wellrdquo said Seong-hun Kim a member of Gangwon Province Governmentrsquos Export Support Team
Dubai proved to be an excellent place for the event considering how well the UAE is able to so regularly corral international cooperation A key sign of this was witnessed recently when Luxembourg now considered the third most important base for Islamic finance globally opened a finance office in Dubai International Finance Centre The European nation also opened a euro200 sukuk earlier this year which was quickly oversubscribed
The prime minister of Luxembourg offered the WIEF audience a riveting speech which detailed just how international the Forum has become whilst encouraging more of the world to support the growing influence of Islamic finance
Said Bettel ldquoWe need to innovate more economic partnerships for growth We sometimes need to reengineer relationships but also have to make sure these relationships remain sustainable Growth in one country also brings growth to others as long as this is guided by free market initiatives Free trade and free flow of capital combined with innovation leads to prosperity We have all gathered here in Dubai to explore the future of Islamic finance and Luxembourg is also a pioneer of Islamic finance in Europe The Islamic financial sector has a major role to play in continued global growthrdquo
The Islamic Corporation for the Development of the Private Sector (ICD) is based in the Kingdom of Saudi Arabia where it manages an international fund worth $2 billion half of which is available for subscription With shareholders in more than 50 countries and a sovereign sukuk fund recently launched in West Africa the ICDrsquos CEO Khaled M Al Aboodi attended WIEF this year excited to participate in the global event
How does the ICD approach its attendance at the World Islamic Economic ForumI think the Forum is one of the best places for discussing the financial issues of the OEC member countries It has been around for ten years and has grown to become a very important platform for discussion Wersquore here to attend and listen but also to network Itrsquos a great networking platform and a place to share views whilst letting everyone know what we have to offer
How has Islamic finance changed over the yearsOf course itrsquos growing in a large scale Some of it actually needs more support particularly with respect to regulatory frameworks Wersquore trying to partner with many international organisations like the IMF to try to provide support to countries to adapt regulation for Islamic finance Sukuk issuance is one of the biggest issues that needs to be addressed because there is a huge amount of liquidity in this arena Due to issues related to regulation sukuk issuance can be costly But with the regulation we are confident it will be on a level playing field with other forms of finance Compliance is a major area where more work can be done The Forum started with a roundtable on sukuk which shows how helpful WIEF has been over the years
What type of work does ICD do internationallyICD helped the government of Senegal to issue the first sovereign sukuk This was successfully issued last summer Progressing in this manner is something wersquod like to see continue across West Africa in order to utilise its resources with aiding development in the region in mind
QampA WITH KHALED M AL ABOODI CEO OF ICD
Islamic FinanceMARKET OUTLOOK
OFFICIAL SPONSORS
ENDORSED BY OFFICIAL HOST OFFICIAL
COMMUNICATIONS PARTNER
MEYDAN HOTEL DUBAI UAE19 - 20 NOVEMBER 2014
WOMENOMICSthe next emerging market
TAKE PART in making change happen UNITE with business and through leaders from across the globe
PARTICIPATE to the expansion of a modern and inclusive economy
58
Gautam PradhanINTERVIEW
wwwthecfomecom
SUCCESS BEyOND BOUNDARIES
in other management roles such as strategic decision making mentoring and leading efficiency and productivity across a range of other departments and functions as well as a being a catalyst in ensuring that the boardrsquos vision for the organisation is achieved
A significant percentage of NMDCrsquos shares are owned publicly Does the CFO play a role in balancing the interests of the shareholdersAs a CFO balancing the shareholdersrsquo interests is definitely part of my responsibility In order to achieve this goal there needs to be a careful evaluation of each decision while keeping the short-term and long-term goals of the company in mind At NMDC we actively implement a system where we utilise a balance scorecard as a method of ensuring that all our primary objectives are met yet at the same time continuously enhance our relationships with our shareholders
NMDC has completed various projects across the Emirates Are there plans to move abroadAs NMDC moves towards becoming an international player our strategic expansion plans are focused in areas within the GCC region and India In line with this strategy we opened
How has a company with such a unique set of deliverables grown so consistently over the yearsOur organisation strongly believes that the core to our strength is the people process and equipment A strategic decision led by our Board of Directors and the senior management has been implemented that required us to consistently invest in these three aspects to help expand our business beyond the territorial boundaries of the UAE and at the same time enhance what we can offer which is relevant to these segments We attribute our success to the efforts which every employee contributes We also strongly believe in the ldquoWe can make it happenrdquo principle The management raises the index of performance while setting SMART objectives within the organisation and encouraging the employees to achieve them
How has your position as the CFO changed over NMDCrsquos 35 years of operationAs the market evolves and business dynamics change my role as the CFO has become complex and more challenging A few years back I was mainly focused on bookkeeping accounting and other financial responsibilities such as arranging bank facilities But moving forward I became more involved
The UAE is progressively becoming a hub for world-class infrastructure The country has duly impressed the rest of the globe with noteworthy land developments showcased across the emirates Among the remarkable landscapes found in Abu Dhabi are the Corniche Beach Yas Island and Sir Baniyas Island Behind these successful projects is NMDC the dredging division of Abu Dhabi National Oil Company (ADNOC)
In an interview with CFO Magazine Gautam Pradhan Chief Financial Officer NMDC shares an exclusive look into the companyrsquos international blueprint for growth and his dynamic role as a strategic leader of one of the best in dredging and marine construction in the Middle East
59
Gautam PradhanINTERVIEW
wwwthecfomecom
branches in Qatar Bahrain Oman and India This has paid rich dividends recently as projects of strategic importance are bagged in Qatar and Bahrain Furthermore NMDC (UAE) has recently played a key role as a leader of an international consortium with Royal Boskalis Westminister (Netherlands) and Jan De Nul Group (Belgium) for the awarding of the Suez Canal Dredging project in Egypt Moving forward we have devised a strategic approach that will enable us to play a key role in the development of Indiarsquos marine infrastructure
What are the global strategies that are part of the CFOrsquos responsibilitiesAs CFO understanding the macro economic scenario risk analysis and mitigating those risks are all a part of my responsibilities I also have to have a proper comprehension
ldquoA few years back I was mainly focused on financial responsibilities moving forward I became more involved in strategic decision making mentoring and leading productivityrdquo
Gautam PradhanINTERVIEW
60 wwwthecfomecom
of the challenges faced by the company in terms of dealing with foreign contracts direct and indirect taxes and hedging and managing the integration process These are essential to enhance shareholders wealth and mitigate undue risk
How significant is accountancy for NMDC in its operations Why exactlyAccountancy is the lifeline of any company it does not only record the finances it also reflects the health of the organisation The MIS reports analysis trends and statistical information go a long way toward effectively providing
the diagnostic approach essential for the company
How have NMDCrsquos environmental activities helped the companyrsquos bottom lineNMDCrsquos work is well-synchronised with our environmental activities and specifically with nature Our activities are closely linked to sand and water and we view such activities with strategic importance Projects such as increasing water supply to mangroves and beach nourishment help us support the environmental activities while adding to our bottom line
ldquoAccountancy is the lifeline of any company it does not only record the finances it also reflects the health of the organisationrdquo
A burgeoning slice of Abu Dhabi coastline
The largest business awards
in the GCC30th November Dubai
nominate now at wwwstarsofbusinessawardscom
Stars of Business has become an iconic awards brand like no other in the region It recognizes the very best SMEs across 26 business categories Itrsquos universally respected as scientifically assessed and unimpeachably judged
327000 SMEs across the UAE$234 billion estimated total revenue of the SME sector4974 Awards entries in 20131856 Individual company applicants
Presenting Partner Strategic SME Partner Gold Sponsor Gold Sponsor VIP Hospitality Partner Supporting Partner
Trade Facilitator PartnerTrade Credit PartnerLogistics Partner
Institutional Partner Institutional Partner Event Partner
OrganiserPublisherMedia Partner Media PartnerPort Authority Partner
62
David Allen INTERVIEW
wwwthecfomecom
What went into completing your bestseller ndash Getting Things Done (GTD)After twenty years of researching developing and implementing a methodology for achieving stress-free productivity based upon
thousands of hours spent desk-side with
some of the best brightest and busiest people in the world I decided to write the manual for it Thatrsquos what Getting Things Done is
What are the five phases of mastering workflowIn order to get
any situation under control so
you can focus you will utilise these five
steps Whether yoursquore managing your kitchen
or your company you will need to collect and capture what has your attention clarify what if anything to do about it organise it according to what it means to you review and reflect upon it in relation to
Todayrsquos evolving CFO is often caught between the world of business set-up generating revenue managing employees and building strong company infrastructure When can things actually get done What can one do to boost productivity and master workflow World-renowned business coach David Allen has the answers
PRODUCTIvITy PRINCIPLES WITH
DAvID ALLEN
63
David Allen INTERVIEW
wwwthecfomecom
those are greatly subvertedHow does one maintain a fair balance between the time spent planning and actually getting things doneYou simply need to spend just the amount of time you need to to trust that what you are getting done is the right thing to be getting done in the moment It takes as long as it takes to get to that point Why would you do anything less
How can one apply your core productivity and workflow principles to todayrsquos technologically driven environmentThe principles and their techniques are system-independent Whether you have meaningful input from the Internet your smartphone or a conversation in the hall you must engage with it equally Technology has simply increased the flow of input and ease of distraction in your world
There is a lot of talk about how connected wersquove become and how connectivity is driving tremendous business growth Does connectivity actually come with its fair share of downsides
Connectivity is obviously a two-edged sword We can have intimate productive and creative interaction instantly with someone on the other side of the world and we can just as easily be distracted and seduced into those engagements when they may not be the best use of our attention and resources Donrsquot shoot the medium Itrsquos all simply bringing attention to your clarity of direction and priorities or lack thereof
Could you share a few quick tips with our readers to instantly boost productivityWrite everything down that has your attention Decide the very next actions required to get closure on all of them Any next actions that require less than two minutes do instantly Park reminders of everything else somewhere that yoursquoll see when you can do something about them
We are currently facing a massive information overload What are some basic principles you could suggest to mentally organise such large amounts of dataConstantly ask yourself Where am I going Whatrsquos important and rewarding to me Is this information
the whole and then engage your resources with intuitive trust
As a CFO how can you transfer efficient workflow management skills to your employees Itrsquos very difficult to legislate processes for individuals ndash you can really only hold them accountable for their results But if you are managing your own commitments and intersections with them with integrity and rigour it will automatically force your team to ldquostep up to the platerdquo in their own behaviours in order to meet your standards If you request their complete list of their company projects and they canrsquot produce it thatrsquos a sign theyrsquore not in control If they make a commitment to you that they havenrsquot kept thatrsquos data about their performance GTD is simply about good operational business practices
With so many planning and organising activities in your methodology is there a risk of losing spontaneity as a strategistThe reason for these best practices is to optimise freedom creativity and spontaneity Without them
ldquoBut if you are manag-ing your own com-mitments and intersec-tions with them with integrity and rigour it will automatical-ly force them to ldquostep up to the platerdquo in their own behaviours in order to meet your standardsrdquo
64 wwwthecfomecom
supporting that Park whatever you find potentially meaningful somewhere that is easy to access when needed
Being an entrepreneur is a non-stop job How do you ensure that you have an adequate work-life balance Pay attention to what has your attentionmdashwith regard to anything Your health relationships career finances etc Notice when something might be ldquooffrdquo and make good decisions about what you need to do to get it back ldquoonrdquo again
Does your work teach people to be efficient or effective In essence they are the same thing Effective choices are generated by efficiency on a higher level If you want to implement strategy most effectively it demands utilising your resources optimally which is efficiency
Does motivation actually improve quality of work or purely quantityDepends on the focus of the motivation You can be motivated to work harder and you can be motivated to work smarter
What is your favourite productivity mantra that
you implement in your day-to-day lifeUsing my own in-basket and note-taking devices to capture potentially meaningful and valuable ideas and soon afterwards clearing all of them out by deciding what to do about them if anything
Your books seminars and other work inspires many individuals and businesses Who is your personal inspiration or role model I have many about many different aspects of my life The only person though that I ultimately trust as my best guide is my higher self which I try to access as frequently and clearly as I can
Finally what advice would you give to current business owners and aspiring entrepreneurs looking to gain complete control of their life and businessCapture what has your attention clarify what you need to do about it to get it off your mind organise the inventory of all your commitments at all levels review and reflect on all of that regularly relax and trust your inner wisdom to engage with the most appropriate thing in the moment
ldquoIf you want to implement strategy most effectively it demands utilising your resources optimallyrdquo
David Allen INTERVIEW
APPSTECH TALK
wwwthecfomecom 65
mAxImISE BUSINESS lsquoON-THE-GOrsquo WITH THESE HANDy APPS
ipAd SpECIAL
SAMSUNG UNvEILS GALAxY NOTE EDGE
Network
AP
Display
OS
Camera
Video
Audio
Additional Features
GoogleMobile Services
Connectivity
Sensor
Memory
Dimension
Battery
The availability of service may differ by country All functionality features specifications and other product information provided in this document including but not limited to the benefits design pricing components performance availability and capabilities of the product are subject to change without notice or obligation
Samsung Galaxy Note Edge Product Specifications
25G (GSM GPRS EDGE) 850 900 1800 1900 MHz3G (HSPA + 42Mbps) 850 900 1900 2100 MHz4G (LTE Cat 4 15050Mbps) or 4G(LTE Cat 6 30050Mbps)May differ by country and carrier
27 GHz Quad-Core Processor
56 inch (1419mm) Quad HD+ Super AMOLED (2560 x 1440 + 160)
Android 44 (KitKat)
Rear Facing 16 Mega pixel Auto Focus camera with Smart OISFront Facing 37 Mega pixel camera with f19Rear Facing Camera HDR (Rich tone) Selective Focus Rear-cam Selfie Beauty face Virtual Tour Shot ShotampMore Dual CameraFront Facing Camera Selfie Wide Selfie
Codec H264 MPEG-4 H263 VC-1 WMV7 WMV8 Sorenson Spark MP43 VP8 Recording amp Playback up to UHD
Codec MP3 AACAAC+eAAC+ WMA AMR-NBWB Vorbis FLAC()() Ultra High Quality Audio (~192KHz 24 bit) support
Multi WindowUltra Power Saving ModeVoice Recorder (Normal Mode Interview Mode Meeting Mode Voice Memo)Download BoosterS Health 35Dynamic Lock ScreenBriefingEdge screen UX Revolving Interaction Immersive apps(Camera Video S Note)Ticker board Express me Quick Tools Night Clock etc
Chrome Drive Photos Gmail Google Google+ Google Settings Hangouts Maps Play Books Play Games Play Newsstand Play Movie amp TV Play Music Play Store Voice Search YouTube
WiFi 80211 abgnac (HT80) MIMO PCIeGPS GLONASS BeidouNFC Bluetoothreg v 41 (BLE ANT+)IR LED (Remote Control) USB20 MHL 30
Gesture Accelerometer Geo-magnetic Gyroscope RGB IR-LEDProximity Barometer Hall Sensor Finger Scanner UV Heart Rate Monitoring SpO2 (Dependent on market)
32 64 GB Internal memory + microSD slot (up to 128GB)3GB RAM
1513 x 824 x 83mm 174g
Standard battery Li-ion 3000 mAh Fast Charging (Adaptive Fast Charging amp QC20)
wwwthecfomecom66
APPSTECH TALK
AIR DISPLAY
SQUARE REGISTER
Using this app you can connect your iPad to your computer and use it as an additional screen While working on an important presentation or sales proposal you can extend or mirror your computer screen on your iPad This app is compatible with both Mac and Windows computers Note that to use this feature you have to install Air Display on your iPad and a separate free app on your computer The computer and iPad also need to be on the same Wi-Fi network in order to work in-sync
For Mac users the app allows you to connect to up to four screens ndash all at the same time
Apart from the ability to convert your iPad into a wireless display whatrsquos also attractive about this app is that it allows you to control your computer wirelessly using your iPad
This fantastic application can serve as a mobile point of sale for your business It allows you to accept credit card payments ndash including Visa MasterCard Discover and American Express A transaction fee of 275 is charged for every time you swipe a card The sale amount is transferred to your account within two working days
Once you download the app you can sign up and register for a unique card reader solution called the lsquoSquare Readerrsquo (this is free) Square Reader encrypts all card details and ensures that the transaction is secure Once you receive your Square Reader you can connect it to your device and are all set
The application also offers added features such as transaction history connecting to a receipt printer creating employee logins and more
AED 3699
PRICE
Free
PRICE
wwwthecfomecom 67
APPSTECH TALK
DOCUSIGNHave you ever been in a situation where your employees need you to urgently sign a contract but arenrsquot able to physically reach you in time DocuSign solves this problem with its easy-to-use eSignature feature In three easy steps you can sign important documents and securely send them to your intended recipient
First you have to import the document to your device ndash this could be from Dropbox Google Drive or another select applications You then place your signature or any other important legal information you need to include such as initials Once you have finished working on the document send it back via e-mail
Whatrsquos particularly great about DocuSign is the great emphasis it puts on security ndash so that users donrsquot have to worry about getting into any legal trouble
Use DocuSign and never miss a deadline again
Free for basic version
PRICE
MPAYAn initiative by the Dubai eGovernment Department mPay is a simple application that allows you to make important payments Once yoursquove signed up and entered your payment details you are good to go You can pay your Dubai Electricity and Water Authority (DEWA) bills Etisalat utility bills Dubai Police fines Recharge SALIK and much more
A handy feature is its lsquoauto-rechargersquo option which you can use to set automatic payments
Free
PRICE
Opinion CIMAPERSONALITIES
wwwthecfomecom68
NEW HORIZONSBy geetu Ahuja Head of gCC at CIMA
The days of the traditional accountant working within a small community in a small town in a small market have long gone CFOs are now being referred to as Chief Frontier Officers as they travel from market to market overseeing their offices overseas This new expanded role has distinct advantages for both the company and the CFO who gain new skills and new insights from foreign branches a single hand at the helm of many markets provides business perspectives on a global scale and benchmarks across the board
On a personal level working abroad also has huge importance Robert Walters the specialist professional recruitment consultancy recently conducted a survey
of almost 2200 employees across a variety of professions exploring a number of topics which ranged from working practices and attitudes to careers The results highlighted some notable trends particularly for finance professionals
In career progression for example the survey showed that 50 of all accountants see working abroad as either lsquoessentialrsquo or lsquoextremely usefulrsquo to furthering their prospects more than banking professionals lawyers and IT workers ndash a strong indication of how accounting professionals are thinking about their future either within their existing company or with opportunities elsewhere
Accountants with globally recognised qualifications obviously have a greater chance of gaining some experience abroad and the lsquoGen Yrsquo professionals in particular seem ready to pack their bags In a CIMA study conducted in the UK last year over a third of those seeking employment in the
next two years will prioritise opportunities abroad over those in their home countries many of them enticed by the career incentives offered by the Middle East
How quickly can they land what seems to be their dream job What are the realities It may be that the move is simply from one branch to another and the only significant difference is a view from the window but for those expanding rather than changing their roles we have seen a very real need for a depth and breadth of knowledge never needed before
As geographical boundaries are pushed ever-wider a CFOrsquos responsibilities are pushed with them For many finance executives the understanding of their own patch of land is no longer enough they now have to be aware of foreign markets up to speed with foreign trends and au fait with foreign laws There is a need for a new commercial awareness in geography as well as philosophy
As geographical boundaries are pushed ever-wider a CFOrsquos responsibilities are pushed with them
John vargheseQampA
wwwthecfomecom 69
BUSINESSSET UP YOUR
IN THE UNITED ARAB EMIRATES
TO
WAREHOUSESOFFICES INDUSTRIAL LANDFLEXI
Quick and easy company set-up
Less than an hour drive from Dubai
Complete cost-effective packages including licences and facilities
100 foreign ownership
Zero income and corporate taxes
Eligibility for UAE Residence Visa
BUSINESS SET-UP SOLUTIONS STARTING FROM AED 15000 (USD 4000)
RAK FREE TRADE ZONE PROVIDES
RAK Free Trade Zone Authority - Government of Ras Al KhaimahUAE (Ras Al Khaimah) Tel +971 7 2041111 (Dubai) Tel +971 4 7041875 (Abu Dhabi) Tel +971 2 6994888
Germany (Cologne) - Turkey (Istanbul) - India (Mumbai)
Call +971 7 204 1111 Visit wwwrakftzcom Join rakftz
20 wwwthecfomecom
the complexities of tech Technology is a good investment class but the region is focused very much on real estate whilst the investment class of technology doesnrsquot rank as highrdquo said Chappell ldquoIn order to widen the general understanding we want to be developing solutions which address problems specific to the region We have one or two gems for example Qordoba a translation company which translates content in multiple languages The programme utilises artificial intelligence and as a result is getting smarter and smarter each time it is asked to translate so that it understands the meaning of what itrsquos translatingrdquo
Another key variable for DSO is centred on supporting
Dubairsquos goals based around becoming the worldrsquos capital for Islamic finance Chappell describes his role as CFO as one with ldquotwo thousand handsrdquo a multi-layered position which he seems to relish being held responsible for While DSO has grown tremendously in its near decade of existence the free zonersquos exuberant CFO sees lots more to come
Said Chappell ldquoI see us going from strength to strength Wersquove been in existence for nearly ten years When I joined it was empty desert Now we have over 1000 companies and an estimated 43000 living on site Within five years wersquoll also be further down the path and wersquoll be recognised for our contributions to the smart city and the Islamic economyrdquo
ldquoWithin five years wersquoll be further down the path and recognised for our contributions to the smart city and the Islamic economyrdquo
Dubai Silicon Oasis
headquarters
1080Companies in DSO
72millionDSOrsquos land mass in square metres
STAT FACTS
Cover StoryTECHNOLOGy
THE MIDDLE EAST ACCOUNTANCYAND FINANCE EXCELLENCE AWARDSWEDNESDAY 10 DECEMBER 2014AT THE JUMEIRAH BEACH HOTEL DUBAI
ACCOUNTING FOR EXCELLENCE
Once again the very best talent in the world of accountancy and fi nance will be celebrated by ICAEW at a stellar awards ceremony
ICAEW is a professional membership organisation supporting over 142000 chartered accountants around the world And on Wednesday 10 December 2014 at the Jumeirah Beach Hotel in Dubai wersquoll be recognising excellence in ten categories featuring Business Leader of the Year CFO of the Year Corporate Finance Deal of the Year and the Internal Audit Excellence Award
With an impressive line-up of speakers special guests and entertainment it all adds up to a trulymemorable evening
To submit a nomination or for more information visit icaewcommiddleeastawards
Nominations close on 1 October 2014
A WORLD LEADER OF THE ACCOUNTANCY AND FINANCE PROFESSION
400595_ICAEW_MiddleEast2014_Ad_NBAD_DEVERE_207x270_AW_3indd 1 27082014 1541
PROCUREMENTANALyTICS
wwwthecfomecom22
Return on Supply Management Assets (ROSMA) is a pioneering framework launched by AT Kearney after four years of testing one aimed at addressing the aforementioned procurement gaps The performance measurement standard was initiated with an eye on creating a benchmark for the procurement industry and providing a compass to direct investments
ldquoROSMA started in 2010 And it started out with conversations with the CFO There are a group of folks in the company talking about how great their achievements are however
the capital that procurement claims isnrsquot often obvious and can create a disconnect within the companyrdquo said AT Kearney Vice President Federico Mariscotti
This yearrsquos annual report surveyed a number of businesses and arrived at a series of significant findings which outline procurement patternsbull Top-tier companies generate
approximately $16 million in financial return per procurement employee yearly A reported 35 per cent of return derives from applying advanced methods
bull Mid-level performers typically
The first step for compa-nies in the Middle East is to take a good look at what they expect procurement to bring
Leading global management firm AT Kearney recently released a report on the evolving conversation which surrounds procurement A key aspect of the report spells out how much CFOs stand to gain by making more pronounced investments based on utilising procurement in terms of value The relative distance between CFOs and their respective companyrsquos procurement methods is cited as cause for concern
THE NEW LANGUAGE OF PROCUREmENT
generate four to five times of their investment in procurement valuation yet have not exemplified growth since 2011
bull Performers at the lowest level surveyed do not achieve monetary benefits which cover costs
bull The majority of organisations surveyed do not possess the tracking structures needed to analyse procurement performance
bull Regardless of company size or industry procurement
PROCUREMENTANALyTICS
wwwthecfomecom 23
The CFO community has not yet awakened to the value of procurement
performance varies though companies with sophisticated reporting techniques experience less variable performance
The reportrsquos express aim to create a benchmark for procurement follows a wave of process monitoring which found notice in the manufacturing industry in the 1980s supply chain research and engineering in the 1990s and sales and marketing performance being closely tracked in the 2000s
ldquoProcurement costs can represent anything from 20 to 90 of a companyrsquos total cost going from the public sector to consumer goods Yet the productivity of the team that presides over the supply market interactions has a way of explaining their value add using savings that do not add up to the PampL impact measured by finance Savings definitions different baselines and cost avoidance all contribute to a murky aggregate view of the impact on the businessrdquo added Mariscotti
In the Middle East the challenge is fundamental ndash getting the spend data in the first place Companies admit they often do not have a clear categorisation of intelligence lack an agreed definition of savings measurement and generally position procurement as a pre-eminently transactional activity lacking the mandate to contribute value Procurement processes as a result remain centred around purchasing are paper based and lack transparency The first step for companies in the Middle East is to take a good look at what they expect procurement to bring
wwwthecfomecom24
Influencedspend
The inconsequential The brand leaders
Leaning up
Note All three segments start with a common hypothetical spend of 1000 to normalize the case example
Source AT Kearney analysis
Source AT Kearney analysis
TOP QUARTILE
mIDDLE-TIER 50
BOTTOm QUARTILE
704
764
644
522
527
396
42
30
(138) (25)
(63)
19
39
28
15
21
4
3
60
32
18
Sourcedspend
Units of yield
Post-compliance
benefits
Additionalbenefits
Financial results
delivered
19x
17x
middle tier
bottom quartile
TOP-QUARTILE PERFORMERS DELIVER NEARLy TWICE AS MUCH VALUE AS MIDDLE-TIER PLAyERS
THE CFO COMMUNITy HAS NOT yET BEEN ldquoAWAKENEDrdquo TO THE VALUE OF PROCUREMENT
Procurement is not on the radar for those who gave the wrong answers to three essential questions
leadership with accountability for performance is clear but either the measures are not clear or performance is believed to be weak variable or unknown ndash or a mix
leaners and leaders answered all three essential questions correctly and also answered most or all other questions correctly
to the table and how it should support the business To make a steep change companies need to understand the multiple benefits which will occur for investments made once theyrsquove allowed for stronger procurement practices
The benchmarking aspects of ROSMArsquos report speak directly to CFOs based on an existing widespread inability to track and improve this often unquantifiable nature of procurement practices According to the report the CFO community has not yet awakened to the value of procurement and Chief Financial Officers are thus divided into three segments The brand leaders (25) those leaning up (63) the pack (774) and the inconsequential (138)
Said Mariscotti ldquoThis is a way to give procurement a measurable quality that CFOs can quantify You have to know what yoursquore doing with relation to procurement in order to do it well ROSMA gives you a number which helps you understand how good your procurement is working as compared to peers It lets you know whether or not you could be doing something differentrdquo offers Mariscotti
CFOs have exemplified an increasing ability to share in a companyrsquos strategic efforts whilst expand their respective remits Procurement is emerging as the latest segment of this conversation Understanding its value beyond the transactional is the first step for CFOs to fully engage with harnessing the potential of procurement and grow to become a part of the elusively paltry portion of brand leaders indicated in ROSMArsquos report
PROCUREMENTANALyTICS
The pack(774)
Al Sharid is the Vice Chairman of Emirates Transport and has enjoyed a successful career in which the lionrsquos share of his tenure has afforded him a seat at the helm of the business
ldquoI remember when I first received the GM of Tata in the late 80s he said to me lsquoYou are the youngest GM I have ever metrsquo I was 29 years old at the timerdquo Looking at Al Sharidrsquos rapid ascent to the top of his organisation can be mind boggling to the average observer however to those few who strive to push themselves to their limits it is perhaps more common a reality As with any top performer we can often see their desire for results and impact
early on in life and with Saeed the first stride of his race to the top began with an accounting degree in university
It was 1976 and the excitement of the UAErsquos biggest milestone moment its inception just five years earlier still clung to the air from Fujairah to Abu Dhabi and every emirate in between A nation was being built Saeed had just finished high school and went to the United States where he was to study engineering
ldquoI was not yet 18 years old it was 1976 and I was sent to America to study it was the beginning of a dream and a young liferdquo says Al Sharid Unfortunately Al Sharidrsquos academic tour of duty came to
THE EmIRATI DREAm Saeed Al Sharid is today an elder statesman in the world of UAE accountancy With decades of know-how based on chairing a number of key Emirati organisations Al Sharid is today atop his own family firm In the following exclusive interview he shares the importance of education the evolution of a nation and just how being an accountant has driven his many triumphs
an abrupt halt when his father suddenly passed and he was forced to return home ldquoWe are seven brothers and I am the middle one so during tough times we always come together and during this period the strength of my family pulled me through I have three younger brothers and I felt I had to be there for them I felt responsible for them My mother played an omnipotent role in pulling us through this dark moment in our history The death of my father forced us to become more independentrdquo says Al Sharid
Now back in the UAE with his plans of studying abroad dashed Saeed looked at the local schooling system within which Al
26
InterviewPERSONALITIES
wwwthecfomecom
Saeedrsquos desire for results took its first stride with an accounting degree in university
By Shane phillips
27
InterviewPERSONALITIES
wwwthecfomecom
Ain University had just opened ldquoAl Ain University was the pride of the Emirate at the time the students were like celebrities The first batch of graduates were all promised 50000 AED from HRH Sheikh Zayed I was one year late so technically I should not have graduated with the first batch but I was determined I worked an extra course load did summer school and soon caught up to the first class 50000 AED in 1981 was like 5000000 AED today so I was very motivatedrdquo says Al Sharid
Saeed not only caught up with the other students but he wound up graduating atop Al Ain Universityrsquos first class of graduates with a 38 GPA ldquoWe Saeed Al Sharid
28 wwwthecfomecom
to the organisationrdquo he says Saeed first joined Emirates Transport after seeing a small newspaper advertisement for an accountantrsquos position He applied but initially they did not want to hire a local because locals were too expensive After a few months however they called him back for an interview and offered him a job
Initially Saeed struggled to get a promotion or even a raise He worked tirelessly to develop himself and kept detailed notes of his work After nearly two years went by with no promotion he requested to meet with the Chairman of the corporation to discuss his career The Chairman was a Minister making him even more senior than his title implied Al Sharid was courageous and determined ldquoYou should not stay silent you have to take initiative your future is in your handsrdquo says Al Sharid
ldquoI met with the Chairman and told him about my work and what I wanted to do He did not talk he just listened and that was it It was a 15-minute meetingrdquo says Al Sharid Three days after Al Sharidrsquos pivotal appointment he was promoted to Deputy General Manager Directly from a Trainee to DGM skipping all the roles in between at the age of 27 years old They doubled his salary and catapulted him into a senior leadership role
ldquoI felt it was quite strange to move up that fast and personally was not sure I could handle the job I had a lot of resistance from the board I had people in their 50s reporting to me and they were not happy about it So I just took a step back and did not try to get involved in their work too fast I went slow and watched my step This was a very important
ldquoThe UAE was a brand new country and a lot of work was being done to develop the nationrdquo
never had any idea of a career path and there was no such thing as career counsellors or lsquocareer servicesrsquo at the school So when you graduated most people just joined the Ministries The UAE was a brand new country and a lot of work was being done to develop the nation The Federal Government paid the highest and so one just joined them There was no grand vision or dream that I was off and chasing In those times you simply tried to do the next best thing So I ended up working in the Ministry of Health as an accountant Back then a university degree was a veritable qualification and it had a lot of market equity today it wonrsquot even get you in the doorrdquo
As the Middle East market evolves not only are university degrees becoming more common but so are post graduate degrees such as MBAs and even PhDs As such the competitive positioning of professional qualifications are gradually eroding over time
ldquoTo stay competitive executives today will require deep and specialised knowledge of their respective industries an intellectual arbitrage that provides superior results To beat the market to manage the risks to develop a sustained competitive edge For this executives need to stay in a role for the full strategic cycle which is at least four years in durationrdquo says Sharid In the case of Al Sharid he was there for 33 years
ldquoDo you just want a job or are you looking to make a contribution to your company Too many young people today are just looking for a title or a position The difference between those who make it into senior roles and stay there is the desire to create impact to add value
InterviewPERSONALITIES
2012year Moodyrsquos upgraded the UAE economy from developing to emerging
37The UAErsquos global rank for GDP
STAT FACTS
moment for me to gain valuable leadership experience early on To make my learning curve even steeper the General Manager quit after two years and I became the GM at the age of 29 years oldrdquo explains Al Sharid
He ascended to the top job in less than five years and stayed in the position for almost twenty years He was totally committed and could even be found in the bus yard at four in the morning to greet the drivers as they started their shifts ldquoThe key to being successful in business is to keep your finger on the details Some people let the details slip and if this happens you will suffer I get into the yard I meet the drivers I meet all the staff If you saw us you will not know who was the GM or who was the driver You have to realise people will never work for you they will only work with you To me Emirates Transport is like my familyrdquo says Al Sharid
When asked what his keys to success are he says ldquoI think if I was not an accountant I would not be a good leader I would not be a good manager In my opinion trying to do business while not understanding accounting is like getting into the ocean and not knowing how to swim you will drown The Chief Executive Officer who does not know how to create the financial statements is always at the mercy of his Chief Financial Officer He cannot take any big decision on his own and he will not even be able to challenge the CFO Accounting is the bedrock of any business and a critical skill set for any leader No one can argue with this factrdquo says Al Sharid
With over 20 years of experience in tow and the related chairmanships to boot Al Sharid
ldquoTrying to do business while not understanding accounting is like getting into the ocean and not knowing how to swim you will drownrdquo
has since early last year partnered with his family to form Al Sharid Auditing Though the Emirati youth is not as keen to pursue positions related to accountancy as Al Sharid was he feels that there is hope to close the gap
ldquoIt is difficult to find an Emirati expert I studied the audit market specifically and there were others like me then But now you break Emirati auditing involvement into three categories The first involves the big firms This is followed by individual smaller enterprises But thirdly a lot of locals opt to work with the government also Most are not managing their own firms they just have a partnership and they are building thatrdquo Al Sharid explains
ldquoAl Sharid Auditing however is a firm that includes my brother and our two sons which make up a body of qualified professional auditors We established this firm last year and work closely with the government We decided to make one firm together instead of having many smaller entitiesrdquo
Moving forward Al Sharid plans to grow his familyrsquos firm by applying the very belief system which has catapulted him to his position of power Marketing concerns which are designed to furthermore announce how tailored Al Sharidrsquos offerings are at present a key variable to forging ahead
Said Al Sharid ldquoMoving forward wersquore focusing more on the marketing of our firm Itrsquos a matter of not exactly expanding but going over the right deals The market is tough and the small jobs are easy but we donrsquot need them We donrsquot want to be in many rooms we want to be in the important onesrdquo
29wwwthecfomecom
InterviewPERSONALITIES
1UAErsquos rank among GCC nations for chosen hub of all major accountancy bodies
STAT FACTS
Latest insights from PwCrsquos 15th Annual Global CEO Survey revealed that 59 per cent of CEOs see emerging markets as more important than developed markets to their future What is making emerging markets such a pressing priority for C-suite executives Why are emerging markets increasingly grabbing headlines
Emerging markets are large fast-growing and ambitious markets best known for being the growth engines of todayrsquos global economy Research (1) suggests that emerging market countries are expected to amount for more than 60 per cent of global GDP growth ndash a clear indication of the wealth of opportunity they present
Understanding emerging marketsBased on estimates by the International Monetary Fund emerging economies are expected to grow two to three times faster in comparison to developed nations Explaining this fast-growth and the rise of these emerging markets an article on Forbescom details that ldquoduring the US housing crash and resulting credit crisis of 2008 world markets were saved from a total disaster thanks to the big emerging markets ndash mainly Brazil India and China The global credit crisis was one of the longest deepest and most painful in history It toppled Wall Street icons like Lehman
The following report explores emerging markets from West to East which are at the helm of economic development trade and innovation and highlights what their rising popularity means for the growth of your business
Brothers required government bailouts of bulge bracket banks and shocked the global economy with a deep economic recession and even a deeper crisis of confidence Its most important legacy though may be one that has yet to fully unfold the crisis revealed a new world order in terms of economic and market dynamics Emerging market economies finally arrived as
30
Market IntelligenceANALyTICS
wwwthecfomecom
ENTERING EmERGING mARKETS STRATEgIES RISKS ANd OppORTuNITIES
Projected annual GDP growth 2014 amp 2015
PANAMA
67
PERU
RANK42
55
Projected annual GDP growth 2014 amp 2015
Ease of Doing Business
RANK55Ease of Doing
Business
TOP TEN MARKETS
(1) Source here Accenture Research ldquogearing up for growth ndash five imperatives for success in emerging markets 2011 Henry Egan and Armen Ovanessoff
31
Market IntelligenceANALyTICS
wwwthecfomecom
LATVIA
CZECH REP
MALAYSIA
THAILAND
SOUTH KOREA
CHINA
RANK75
41
21
50
45
35
74
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
CHILE
RANK 34
43
Projected annual GDP growth 2014 amp 2015
Ease of Doing Business
RANK 24Ease of Doing
Business
Ease of Doing Business
RANK 6Ease of Doing
Business
RANK18Ease of Doing
Business
RANK 7Ease of Doing
Business
RANK 96Ease of Doing
Business
POLAND
32
RANK45Ease of Doing
Business
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
Source httpwwwbloombergcomnews2014-01-29qatar-china-top-ranking-of-frontier-and-emerging-marketshtml
powerful essential and permanent contributors to global economic growth and sustainabilityrdquo
Bloombergcom recently ranked the top emerging markets based on their performance on 19 economic financial political and social indicators In order of ranking the top ten markets were
CHINA
SOUTH KOREA
MALAYSIA
CHILE
THAILAND
PANAMA
PERU
LATVIA
POLAND
CZECH REP
1 6
2 7
3 84 9
5 10
Market IntelligenceANALyTICS
32 wwwthecfomecom
Making an entryIf your business is looking to enter any of these emerging markets itrsquos worth considering the following checklist
1 Assess your readiness The biggest mistake you can make is to enter a market without proper evaluation of your business Donrsquot do it just because everyone else is Like every other major business decision be sure to speak to your Board of Directors partners investors stakeholders and most importantly your CFO and certified accountants Make a business plan enlisting your objectives goals investment strategy potential risks etc
2 Research research research Do your homework Treat emerging markets as any other international expansion venture and do thorough research on the new market ndash Who are the competitorsWhat is the price point for your product What are the customer demographics What kind of infrastructure do you need for the manufacturing production or distribution of your product
3 Understand the legal framework Emerging markets might not have rules and regulations as clearly spelled out as your home country Invest some time and money in understanding how business procedures work A very obvious area of focus for UAE-based companies is tax Since the UAE is a tax-free economy companies arenrsquot exposed to tax accounting and other legislation surrounding
ndash failing to adapt to the needs and expectations of the local customers is surely a recipe for failure Time and again companies havenrsquot been able to create a customised offer and have had to exit these markets with huge losses A success story however is that of the Haier Group Haier famously introduced washing machines to specifically suit the water pressure levels in the households of India ndash an emerging market strategy that worked very well in their favour and helped them become leaders in that sector Another great example is that of Coca-Cola as explained in an online Reuters article by Matt Reilly ldquoIn Brazil Coca-Cola has used social media to better understand consumer preferences and has developed a successful local network to supply traditional Coca-Cola products as well as fruit juices tailored to local tastesrdquo
7 Local currency This is a complex yet critical area to consider when entering a new market Ask yourself questions such as ndash What is the local currency rate How does it compare to the currency in your home country Is the country import-led or export-led and what impact can this have on the global value of the currency Remember that fluctuations in currency rates can hugely effect your overall investment and thereby the return on investment
8 Build partnerships When entering an unknown territory it is quite useful to have the backing and support of peers who can help you in case of unforeseen challenges This is
this Another area to consider is corruption ndash emerging markets are notorious for high corruption red-tape and bureaucracy Speak to your company lawyer to assess these areas and take proper measures to avoid them before-hand
4 Invest in local talent Working with people already accustomed to the new market avoids the hassle of relocation and reduces costs But more significantly gives you skilled talent to work in these unique environments This also works in favour of your company as it gives you a clear understanding of the kind of compensation packages you will have to offer to your employees For instance employees based in China might want high remuneration and low healthcare benefits while in India it may be quite the reverse Recruiting local talent will also have a trickledown effect ndash your employees will easily be able to cater to the local customer needs without the need for intense training
5 Supply chain 44 per cent of business leaders surveyed consider accessing the right supply chain capabilities extremely or challenging in emerging markets according to Deloittersquos Globalisation Survey Make sure that you know who your suppliers will be what the production costs are whether their production procedures fit your time constraints and if the final product matches your level of quality
6 Cater to local market demands This is one of the most important aspects of all
Do your homework Treat emerg-ing markets as any other internation-al expansion venture
Market IntelligenceANALyTICS
33wwwthecfomecom
the very reason why Mergers and Acquisitions are a popular way to enter into emerging markets Many companies piggyback on their clients who are entering these markets For instance if you are an IT consultancy working on a major project for a manufacturing and trading company with operations across India and China you can use their resources and expertise to explore opportunities in these countries
Remember to consider these steps every time you enter a
new market as every locality has its own set of unique needs One strategy doesnrsquot fit all
Surviving fierce market conditionsWhile the massive opportunity that lies within emerging markets paints a pretty picture businesses need to be wary of bottlenecks such as corruption volatility gaps in laws and regulations and strong competition There have been several high-profile cases of multinational companies withdrawing from emerging
markets owing to immense corruption pressures
There is also a high percentage of inherent risks in these markets which amount to many companies not succeeding in their first attempts It is important to take your time when adapting to these markets and fully understand the business dynamics Following recent case studies and going over the lessons learnt by multinational companies who have made an entry into these markets consider the below
bull Is your companyrsquos head-office ndash and senior management ndash located in your home country without any C-level representation in the new emerging market
bull Are you focusing all of your resources on doing business in the emerging market at the cost of losing profits in your home market
bull Have you researched local competitors in these markets who may already have a strong standing and proven models of success
bull Are you using the same ldquoentry approachrdquo and business model across different emerging markets
If your answer to one or more of these questions is yes it may be time to re-evaluate your presence in these markets and map out a different strategy
Finally remember that no matter what the outcome of your admission to these markets might be your business is sure to emerge out of this stronger tougher and ndash of course ndash ready for a new challenge
of companies believed they had invested more resources in
emerging markets than was required
entered a market without fully assessing the ability of the supply chain to support the expansion
entered with the wrong pricing model and an inappropriate
operating model
CONSIDER THE RISKS
48
24
20
There is also a high percentage of inherent risks take your time when adapt-ing to these markets and fully understand the business dynamics
Source Emerging markets expansion and the supply chain Economist Intelligence unit survey conducted on behalf of EY September 2010
34
CIMA INTERVIEW
wwwthecfomecom
The Chartered Institute of Management Accountantsrsquo (CIMA) Managing Director Andrew Harding visited Dubai to host the Institutersquos seminar on global management accounting principles In the wake of CIMA revising their well heralded syllabus Harding discussed with CFO Magazine what the newest edition held how CIMA is applying a digital focus to its courses and just how CFOs can gain from it all
CURATING CURRICULUm
35
CIMAINTERVIEW
wwwthecfomecom
can give CFOs something they can take and something they can measure their own management accounting services against They can benchmark using this and they can utilise this to see their progress
Part of that is having professional management accountant in place I donrsquot think the landscape matters I believe that there is a common business need wherever you may be around the globe
All of the emerging markets need these skills The first aspect that accounting schools teach is about auditing skills because theyrsquore interested in protecting investments Then they teach you how to keep your business sustainable and to have a sustainable business you need to have a management accountant in place So itrsquos not just here in the UAE where we see these demands we see the same demands in China Indonesia and other powerhouse economies We see their skills shortages and we see the need for solutions in those areas
Talk to me about how this new syllabus works to promote the evolution of a CFOThis syllabus that wersquove
Can you expound on just what can be found within the new CIMA syllabusWe just revised the syllabus we do that every four to five years What we have done this year is a very significant revision It is based from a complex study that we have carried out to over 3000 people from 200 companies globally It is the very first revision since the joint venture with CIMA and AICPA So this has allowed us to attain a syllabus rich with all the data from all the continents in the world For the first time wersquove had real involvement from companies in the USA in this project
Why is the collaboration between AICPA and CIMA significantMost important is the Chartered Global Management Accountant (CGMA) designation that AICPA and CIMA both issue for qualified management accountants Wersquoll have a common curriculum and common examination which will begin on January 1 which gives us a global designation for management accountants wherever they are around the world There are plenty of accounting bodies who claim to be global but actually this is the only
genuinely global designation This is because it has the only one with a North American participation in it So we can say that the CGMA will be just as well-recognised in the USA as it is in Dubai
With the global landscape in mind how do you create an even objective that applies to localities which may prove widely differentialThe landscapes are different but businesses have common needs wherever they may be What wersquove particularly seen since the global financial crisis is that companies are actively looking to build management accountant capability to build that capacity within their organisations They donrsquot want to have a poor quality of information that lacks insight being used in their businesses So they see management accountants can bring solutions to that As a result of all the work wersquove done with companies who participated in the syllabus wersquove also put together a series of what we call Global Accounting Principles This is a series of principles which describes what good management accounting looks like and what top quality management accounting in a company should be producing This then
ldquoCompanies are actively looking to build man-agement accountant capability to build that capacity within their organisa-tionsrdquo
36 wwwthecfomecom
worked on acknowledges the skill set needed by professionals throughout their career Therersquos a base level of competence that is needed but beyond that there is more There is business acumen the ability to communicate and influence and finally the ability to lead So you start off enhancing your raw technical accounting skills Then you need to place that into the context of the business that you are in Then as you move forward and as you rise to become the CFO yoursquoll need the others You have to learn how to present your work in a way that can influence and make an impact in the business The final piece is the ability to lead projects and other functions and to a great extent lead the board of directors Thatrsquos how the context works itrsquos not just about technical knowledge
How do you find that CFOs in the GCC region are responding to this programmeThe CFO has a real challenge on his hands now In 1975 80 per cent of corporate value is showing on the balance sheet By 2010 that dropped to less than 20 per cent Your traditional PampL reports no longer reflect the value of the business or how the business drives value
All things that should be of interest to investors is missing With things like the integrated report initiative wersquore starting to see the other dimensions that add value to business For CFOs thatrsquos all about strategic thinking and considering the long-term objectives Being articulate in implementing those strategies keeping in mind the risks and opportunities that the business faces We are also nowadays witnessing a whole new world of transparency around that
Are there electronic aspects to CIMArsquos advancing approachThe interactive case study simulates a real working situation and it tests how they can apply their knowledge in real life situations Theyrsquoll be presented with a scenario a few weeks before they take the exam so they can prepare for it They then go to an exam centre where they are asked questions about how they will deal with a certain situation in the real world Theyrsquoll get an email from the CFO giving them a certain task for a particular period of time We want to make it as close to reality as possible so students taking the exam will be assessing situations based on real life scenarios
ldquoThe CFO has a real challenge on his hands now as traditional PampL reports no longer reflect the value of the businessand [the role] must focus on strategic thinking and considering long-term objectivesrdquo
218KCIMA members worldwide
STAT FACTS
CIMA INTERVIEW
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
38
ERPANALyTICS
wwwthecfomecom
Faster more nuanced IT solutions are available to the modern day CFO Whilst Chief Financial Officers are called upon to analyse data across a number of spectrums the digital tools on hand are likewise being expanded to aid in focusing more squarely on the bottom line
ExCELLING WITH ERP
The global landscape is today firmly entrenched within a digital model As a result CFOs whom are called upon to take a larger role in a number of variables must also increase their abilities with respect to utilising the many upsides which tech innovations offer a business When surveyed about their most pressing concerns CFOs generally return a varying collection of responses Revenue growth regulatory changes and meeting quarterly goals are among the chief concerns Virtually every obstacle can be hurdled by way of maintaining the order of financial reporting and data which has long been
synonymous with the Chief Financial Officerrsquos remit A widening berth of ERP solutions is making this data all the easier to come by
Despite how sophisticated the market is today it was not long ago that ERP departments once spent days processing business reports
Said Rohan Tejura Assistant Vice President Focus Softnet ldquoTraditional ERP systems were solely data repositories Moreover these repositories werenrsquot real time and were incredibly dependent upon locational connectivity With the emergence of smarter development platforms more versatile devices and
39
ERPANALyTICS
wwwthecfomecom
more intuitive designs of system development the overall experience of the ERP now extends from data warehousing to reporting analysis trend mapping business intelligence and governance oriented capabilities Yet these solutions amazingly execute all of these deliverables via portable handheld devices and through cloud environmentsrdquo
New generation ERP systems must now be on the go whilst including up to the minute analytics to provide deeper insight into the business ERP Analytics tools use historical data captured from various business functions to provide valuable information for efficiency and business performance each incredibly priceless to a leading CFO
Finesse is an ERP provider which is continually addressing the transformation of output which the ERP industry is offering the equally transitioning role of CFO
ldquoWe provide end-to-end business management solutions to SMEs and Enterprises Our approach to ERP is much more than providing simply an operational management systemrdquo said Finesse COO Sunil Paul
ldquoWe believe that todayrsquos businesses need much more than integrating sales with inventory accounting and manufacturing but also to have seamless integration with all their sales channels including the point of sales ecommerce and inbound sales solutionsrdquo
A major im-petus of the ERP-cen-tered growth is based on how effec-tive com-prehensive real-time data proves to be for the CFO
40 wwwthecfomecom
before thereby creating new global benchmarks for overall economic growth
Microsoft Arabia CFO Sadrul Khan offered insight into just how far the knowledge economy has influenced regional financial leadership by explaining how one of the most prioritised technologies by CFOs in the region is social platform monitoring
ldquoOne of the five technology choices that CFOs tend to prioritise in boosting productivity efficiencies and faster decision making in the fast paced business environment which include a social platform that monitors trends customer sentiments and helps process mashable data for customer centricity and business growthrdquo said Khan
A major impetus of the ERP-centered growth is based on how effective comprehensive real-time data proves to be for the CFO Whether employed as on-premise ERP software-as-a-service or cloud-based solutions a nearly identical ethos is being utilised Allowing the CFO to quickly access the performance of all facets of a business is paying dividends in the boardroom a reality which is showing itself increasingly in the Middle East
The technologically-charged relationship between ERP solutions and the regionrsquos CFOs is expanding and as a result has catalysed what many see as GCC economic performance outstripping that of many economies outside of the region as a result
In order to compete in todayrsquos fiercely competitive environment organisations need to think both innovatively and out of the box They require more insights about their business and their customers and need to ensure that they are able to meet the expectations of their internal as well as external stakeholders Enormous amounts of data both structured and unstructured is continuously being generated within the internal and external systems of the organisation which if analysed can be of immense value both to the business and subsequently the stakeholders associated with the organisation
With the the era of CFOs labouring over spreadsheets now in the past given how many business frontiers have become so dependent on mobile options such as the cloud more and more tech companies are providing the regionrsquos CFOs with information technology that converts traditional internal and external data into rich visual insights This information is then used for faster decision making and provides the ability for a CFO to assess manage and control risks Regional CFOs have grown enabled to drive corporate strategy accordingly demonstrating how the knowledge economy is now in full force amongst the Gulfrsquos corporates
Given that advanced IT has now become a regular CFO tool the regionrsquos CFOs are subsequently making faster decisions and driving internal growth models with greater speed and agility than ever
Tech companies are providing the regionrsquos CFOs with information technology that converts traditional internal and external data into rich visual insights
ERPANALyTICS
Donrsquot discoveritrsquos counterfeittoner afteritrsquos too lateOriginal HP Toner works first time every time1 unlike cheap toners which fail over half of the people who try it2 Non-HP toner can compromise your printerrsquos performance to give you streaked blotchy or faded prints Only original HP Toner cartridges deliver unmatched quality for the most professional-looking prints 100 of the time1
1 A QualityLogic 2010 study commissioned by HP comparing original HP LaserJet Monochrome print cartridges with nine brands of non-HP toner cartridges available in Europe Middle East and Africa for the HP LaserJet P1505 and P4015 printers HP 36A and 64A For details see wwwqualitylogiccomEMEAmonotonertestpdf 2 From a 2012 EMEA Lyra Research study commissioned by HP Results based on a total of 1050 HP Color LaserJet users who have used both original HP and non-HP toner cartridges of whom 552 experienced problems with non-HP cartridges
copy 2014 Hewlett-Packard Development Company LP
42
Private Equity ANALyTICS
wwwthecfomecom
The rise of PE-backed acquisitions is forcing CFOs to develop an entirely new set of skills
THE PRIvATE EQUITy CFO
The CFOrsquos utility in the world of private equity is without question on the rise The once-held belief of the CFO existing solely as the ldquoaccounting guyrdquo has been abandoned Over the last 20 years the role of CFO has become more demanding - requiring not just finance and accounting acumen but also a financial literacy in corporate planning risk management MampA assetliability management and regulation This evolution has been driven by a number of
key factors Yet the private equity industry which is now reshaping the corporate landscape through active ownership is by far the most significant factor driving change within the role of the CFO
PE-backed buyers today represent a larger percentage of overall buyers in the corporate acquisition marketplace than ever before Data provider Prequin estimates that as of June 2014 the capital raised by PE funds that
has not yet been deployed amounts to $114 trillion globally The result of this ldquodry powderrdquo is that a vast quantity of corporate acquisitions in the coming years will be undertaken by the private equity industry As such CFOs will be more accountable to demanding ldquosmart moneyrdquo shareholders than at any point in recent history Budgeting accounting and financial reporting will no longer exist as sole priorities but as a core competency among a
ldquoBy effec-tively using real-time data CFOs can create a dynamic process that proac-tively drives performance account-ability and value crea-tionrdquo
By Aaron Heidari
43
Private Equity ANALyTICS
wwwthecfomecom
robust set of complimentary and required skills Most of all the bar for CFOs is rising as PE investors will only accept above-average performance from their management teams
CFOs were once more reactive in function setting budgets based on other executivesrsquo plans and managing the flow of reporting to shareholders on a quarterly and yearly basis Today CFOs are required to become proactive managers of their respective businesses alongside their C-suite compatriots using a granular data-driven approach to aggregate analyse implement and report on every aspect of a companyrsquos operations
An important tool to drive this value creation process are KPIs Yet KPI structures including both aggregation and output are generally not up to the standards required of private equity investors prior to an investment being made
ldquoThe benefits of using KPIs and monthly reporting packages are significant By effectively using real-time data that is actionable and by partnering with functional area leaders within the organisation company CFOs can create a dynamic process that proactively drives performance accountability and value creationrdquo said Amanda Robinson Vice President of Accordion International in Dubai a consulting firm which is comprised of former private equity and investment banking professionals who
MENA region Cumulative Funds Under Management Since 2008
Source Zawya private Equity Monitor
19 636 20 36321 586
22 64323 506 24 250
-
5000
10000
15000
20000
25000
2008 2009 2010 2011 2012 2013
Cu
mu
lati
ve f
un
ds
($ m
)
$15mAverage MENA PE investment size in lsquo13
50Percentage of investment in IT and energy sectors
STAT FACTS
44 wwwthecfomecom
work with companies to deliver cost-effective project execution services
Active shareholders whose money it is being spent will typically require a data-driven justification before approving any budgets capital expenditures or new acquisitions Furthermore in many private equity backed companies the use of debt and the matching of shorter-term bank financing with longer-term investments will only be considered after a robust analysis is conducted to understand the companyrsquos ability to service that debt in the future This evaluation is not simply to identify revenues expenses and profits Itrsquos about drilling down into every transaction and rooting out data processing and reporting At least that is the expectation
The most valuable CFOs are those who have the ability not just to scrutinise and understand the financials but all also possess a wider grasp of the underlying data which truly comprise the business As an investor who has just acquired a stake in a new business I want a CFO who can manage the transition and stay ahead of my expectations Most of all a CFO should impress upon the companyrsquos shareholders a new way of doing business The first 100 days of an acquisition are said to be the most important During this period the CFOrsquos worth will be established when the new financial plan is due and the platform for the next five years of growth is presented
A CFO should man-age the tran-sition stay ahead of expectations and impress upon the companyrsquos shareholders a new way of doing business
Investment Volume By Sector Since 2006
Investment Volume By Sector in 2013
Source Zawya private Equity Monitor
1
3
30
17
3
28
3
4
6
4
6
5
17
9
9
6
9
5
8
6
6
2
3
10
Education
Education
Information Technology
Information Technology
Other
Other
Telecoms
Telecoms
Media
Media
Transport
Transport
Oil amp Gas
Oil amp Gas
Healthcare
Healthcare
Consumer goods
Consumer goods
Food amp Beverages
Food amp Beverages
Leisure
Leisure
Manufacturing
Manufacturing
ANALyTICS
Private Equity
2000857 NBAD ratibi mag ad 200x268 Finalindd 1 92514 1017 AM
46 wwwthecfomecom
THE FUTURE OFACCOUNTING EDUCATIONAddRESSINg THECOMpETENCY CRISIS
Have you ever stopped to think about how the accounting profession has changed since you graduated from college Recent graduates can answer this question by reflecting on the last two or three years whereas for other more seasoned professionals answering this question requires a bit more thought and memory searching Indeed we can all think of ways that the field of accounting is remarkably different today from the one we likely envisioned during our college daysmdashregardless of which decade we each donned our cap and gown This gradual transformation of the accounting profession leads to two important questions related to competencies bull Which competencies are important for success inaccounting todaybull Were these competencies consciously developed as partof your accounting degree programme
We suspect that more than a few of you would answer ldquonordquo to the second question Put another way our profession may be facingmdashmore so than at any time in the pastmdasha ldquocompetency crisisrdquo that is a gap between the competencies needed for professional success and those taught in our college classrooms today We propose a three-pronged strategy or ldquogame planrdquo for overcoming this competency crisis and in turn better preparing accounting graduates for the challenging world they will face First all of us accountants need to understand the changes that have already taken place in our profession and perhaps more importantly anticipate the changes that are on the horizon Second we need to educate ourselves and future generations of accountants so that as a collective group we can deliver the expanding set of competencies demanded in todayrsquos dynamic organisational
contexts Third as professional organisations and as individuals we need to think beyond ourselves by asking How can I (or we) help the accounting profession address the competency crisis
A Shift Toward Integrated ThinkingMany articles and white papers have been written that describe in detail the changes that have occurred in our profession over the last few decades but for our purposes wersquod like to distill these changes down to one crucial idea How does the accounting function add value to an organisation Accountants have evolved from support-oriented personnel who hand off information to others who actually make decisions into business partners who ldquohave a seat at the tablerdquo with managers
By peter C Brewer James E Sorensen CpA CgMA and david E Stout
47wwwthecfomecom
1048576bull What regulatory risks mayaccompany the proposal
1048576bull What social and environmentalfactors will we face if for example the proposal requires investing in overseas operations
1048576bull What types of employeeresistance may arise if we implement the proposal and how will we overcome the root causes of any such resistance
1048576bull Can and how should we valuefuture options associated with the proposal such as expanding or contracting the investment over time as new information becomes available
1048576bull Should we use debt or equity tofund the proposal
In short accountants have evolved to become integrated thinkers who enable EPM by partnering with managers across the organisation to add value Yet as EPM has gradually become the centrepiece of our professionrsquos value proposition accounting education hasnrsquot done enough to embrace it To overcome this gap wersquod like to further suggest that the concepts of competency integration and EPM need to come ldquofront and centrerdquo as we move forward in educating the next generation of successful accounting practitioners
Accounting Education No Longer on the SidelinesRecently a task force consisting of members of IMAreg (Institute of Management Accountants) and members of the Management Accounting Section (MAS) of the American Accounting Association (AAA) addressed the competency issue How should accounting education change fundamentally to help close the competencies gap The efforts of the task force led to
cash flows and how to apply discounted cash flow (DCF) decision models such as net present value (NPV) is of foundationalmdashsome might say critical mdash importance But integrated thinkers draw on an understanding of organisational strategy coupled with a broader set of competencies (beyond what might be considered technical or foundational knowledge) when making these types of decisions For example they consider how behavioural issues may influence the capital investment decision-making process Perhaps the financial estimates contained in the NPV analysis are too optimistic because the manager who prepared the numbers has a vested interest in seeing the project approved Decision makers also need to consider issues such as leasing vs buying a capital asset and the corresponding impacts on the financial statements and ratios that are tracked by investors and lenders What nonfinancial factors are associated with the proposed investment Add in the tax consequences of capital investment decisions coupled with the need to maintain internal control over any new business processes tied to these decisions and the need to think in an integrated fashion across a variety of accounting competencies becomes apparent
Furthermore becoming a true business partner with managers across the organisation requires more than simply integrating various accounting competencies It also means thinking like a business manager or a chief executive officer (CEO) Returning to the capital budgeting example an integrated thinker will ask questions such as
across the organisation Together they formulate and plan strategies then participate in collaborative decision-making processes that execute those strategies in a manner that adds stakeholder value Said another way accountants have evolved to become enterprise performance managers This shift in our orientation from a support function to an enterprise performance management (EPM) role has enormous implications for defining the determinants of success within our profession the most important of which involves becoming collaborators and ldquointegrated thinkersrdquo Take for example a common but important business decision process capital investment analysis Certainly technical knowledge regarding how to estimate relevant after-tax
48 wwwthecfomecom
expanding capital budgeting discussions to include financial statement impacts tax consequences and internal control issues integrates topical coverage across the External Reporting and Analysis Taxation Compliance and Planning and Assurance and Internal Control competencies shown in Figure 1
Third accounting curricula can incorporate a broader set of management competencies For example evaluating capital investment proposals from the perspectives of change management (Leadership) social and environmental issues (Ethics and Social Responsibility) regulatory concerns (Governance Risk and Compliance) and capital structure (Additional Core Business Competencies) brings a CEOrsquos perspective to the decision-making process
Fourth accounting curricula should include foundational competencies such as proficiency with spreadsheets and written and oral communication In the context of capital budgeting this may include asking students to use Microsoft Excel to perform a sensitivity analysis and then to present their findings to the entire class
Working to Fix the ProblemAt this point although you may agree with us that therersquos a competency crisis within the accounting profession you may be wondering What does this have to do with me What can my organisation do to help address this so-called competency crisis The answer a lot Practice partners and academic partners can help the accounting profession overcome the competency crisis That said letrsquos take a closer look at the role of practice partners first
improvement) and accounting competencies (external reporting and analysis planning analysis and control taxation compliance and planning information systems assurance and internal control and professional values ethics and attitudes) Of critical importance to the framework is the assumption that the set of competencies contained in Figure 1 would be developed and integrated over time through a blend of formal education (including continuing education) training and job experience
What levels of integrationmdashon the road to developing integrated thinkers in accountingmdashare possible First accounting educators can integrate within a single accounting competency So referring back to our capital budgeting discussion teaching computational models such as NPV analysis coupled with a review of various behavioural issues associated with capital investment decisions would be an example of integrating within the Planning Analysis and Control competency listed in Figure 1
Second professors can integrate across accounting competencies For example
a recently published article that contains a proposed framework for accounting education reproduced here as Figure 1 The framework is general in the sense that itrsquos meant to apply to all accounting students not subgroups based on career specialisation such as tax assurance services corporate finance and the like Itrsquos based on the idea that accounting educators can better prepare students to deliver our professionrsquos EPM value proposition through integrated competency-oriented curricula (For more see ldquoFocusing Accounting Curricula on Studentsrsquo Long-Run Careers Recommendations for an Integrated Competency-Based Framework for Accounting Educationrdquo in the May 2014 edition of Issues in Accounting Education)
A glance at Figure 1 reveals three levels of competencies foundational competencies (communication ability to leverage technology and analytical thinking and problem solving among others) broad management competencies (including leadership ethics and social responsibility and process management and
Proposed Competencies-based Framework for Accounting Education
FOUNDATIONALCOMPETENCIES
ACCOUNTING COMPETENCIES
BROAD MANAGEMENT COMPETENCIES
leadership
ExternalReportingamp Analysis
PlanningAnalysis
amp Control
TaxationComplianceamp Planning
InformationSystems
Assuranceamp InternalControl
ProfessionalValues Ethics
amp Attitudes
Communication
Quantitative
Interpersonal
Technological
Analytical Thinking ampProblem Solving
Ethics amp SocialResponsibility
ProcessManagement ampImprovement
GovernanceRisk amp
Compliance
AdditionalCore BusinessCompetencies
Although you may agree with us that therersquos a competency crisis within the account-ing profes-sion you may bewondering What does this haveto do with me
A practice partner should be or become a CMAreg (Certified Management Accountant) maintain professional certification by completing required Continuing Professional Education (CPE) hours and regularly read the IMA publications Strategic Finance and Management Accounting Quarterly
In addition there are a number of excellent resources that deal with topics covered in this article and that IMA makes available to its members
Strategic Finance PowerPacks(wwwimanetorg SFPowerPacks) These are resources focused on contemporary topics similar to those discussed earlier Current offerings include Risk Management Strategic Planning IT Skills amp Software and Internal Controls Each PowerPack includes a combination of resources such as research studies articles and links to webinars
Statements on Management Accounting (SMAs)(wwwimanetorgresources and_publicationsresearch_ studies_resourcesstatements on_management_accounting aspx) SMAs represent monographs classified into one of the following six categories Leadership Strategies and Ethics Technology Enablement Strategic Cost Management Business Performance Management Finance Governance Risk and Compliance and the Practice of Management Accounting Multiple items are available within each category For example the Practice of Management Accounting category includes (among other items)
49wwwthecfomecom
the Definition of Management Accounting and Implementing Shared Service Centres
Research Studies (wwwimanetorgresources_and_publicationsResearch_Studies_and_ResourcesAll_reportsaspx) The ldquoThoughtLeadershiprdquo section of IMArsquos website includes research covering a broad range of issues classified into seven categories For example under the ldquoGlobal Business Environmentrdquo category the following two research reports are available ldquoKey Differences Between IFRS and US GAAP Impact on Financial Reportingrdquo and ldquoCosting Methodologies and Cost Management Practices in the Peoplersquos Republic of Chinardquo
IMA Leadership Academy (www imanetorgprograms_events leadership_academyaspx) As described on the IMA website this programme is designed to assess a memberrsquos leadership status enhance that individualrsquos skills (principally through monthly webinars) and recognise leadership achievements These benefits are free to members
How You Can Make a Bigger Impact In addition to attending local regional and national IMA meetings consider inviting a small group of students to each chapter meeting This could be a wonderful (and relatively low-cost) option for mentoring aspiring accountants and finance professionals providing networking opportunities and introducing students to cutting-edge issues regarding the practice of management accounting Joining a university accounting
advisory group may be another way to influence the development of EPM in that institutionrsquos curriculum design
Other methods to enhance EPM in your organisation include (1) forming user groups within your company your local IMA chapter or your industry to review and share EPM experiences (2) encouraging advancement in the firm to be linked to EPM proficiency (3) focusing your companyrsquos recruiting efforts on candidates who display a background in andor understanding of EPM and (4) organising cross training within your company to enhance a mutual understanding of each otherrsquos respective roles
Finally visit the Competency CrisisTM website (http competencycrisisorg) set up by IMA to unite the accounting and finance constituencies professionals students employers academics and professorsmdashand explore competency issues through the lens of each stakeholder group The site is designed to ldquoencourage a discourse spur action and create a community dedicated to resolving the serious crisis of competency present in the professionrdquo Special sections of the website are devoted to educators students and employers professionals
Our Partners in Education Much like a practice partner an academic partner should be or become a CMA maintain professional accreditation by completing CPE hours and regularly read IMArsquos publications
Academic members of IMA can pursue and actively promote the CMA programme at their respective institutions
50 wwwthecfomecom
IMArsquos website contains helpful resources including an exam content overview content specification outlines for each of the two parts of the CMA exam and learning outcome statements The current exam covers some of the professional competencies represented in Figure 1 A summary of changes to exam content which will be effective in January 2015 is provided on the IMA website in News amp Media Relations which is located under ldquoAbout IMArdquo (See the press release dated March 24 2014) Other helpful resources include ldquoICMA Announces CMA Exam Content Changesrdquo in the April 2014 issue of Strategic Finance as well as ldquoManagement Accounting Career Readiness Shaping YOUR Curriculumrdquo
These forthcoming changes are based on the most recent IMA study of the knowledge and skills needed by management accountants from the view of CFOs controllers and other accountingfinance professionals from around the world
Also consider taking a group of your students to the IMA Student Leadership Conference held each November The Conference provides excellent networking opportunities for you your students and practicing professionals Students can learn firsthand from Conference presenters the challenges and opportunities facing finance and accounting professionals today
Moreover if your institution doesnrsquot currently have an IMA Student Chapter consider forming one One of the authors of this article David Stout reinstituted the student chapter at his school (Youngstown State University) after travelling with a group of his students to the IMA
Student Leadership Conference in Cleveland Ohio Through an IMA Student Chapter on campus students are able to work closely with a sponsoring local IMA chapter and bring to campus speakers who are experts in a wide range of topics including those discussed earlier in this article Each year student chapters compete for an Award of Excellence (AOE) and recognition as an Outstanding Student Chapter In addition IMA student members are able to engage in networking activities leadership training mentoring and community service programmesmdashall through their local chapter
You also might consider volunteering to serve as a Campus Advocate In this role yoursquoll represent IMA in all major matters of interest to your students (scholarship opportunities starting a student chapter mentoring and the like) and to your institution (for example leveraging IMA resources to advance the relevancy of the accounting curriculum use of educational case studies published in the IMA Educational Case Journal and access to IMArsquos ethics curriculum)
And if you havenrsquot yet done this ask IMA to endorse your accounting programme (information is available at www imanetorgeducator_resources indexaspx) This programme is designed to identify business curricula that meet the quality educational standards required to prepare students to earn the CMA designation Endorsement is based on an analysis of the curriculum and topics covered on the two-part CMA exam Currently 12 programmes have been endorsed
Finally if your school has an IMA Student Chapter consider participating in the annual IMA Student Case Competition where students are asked to propose a solution to a real world problem (Cases are solicited each year by Raef Lawson IMA VP of Research and Policy and IMA Professor in-Residence) Finalists make their presentations at IMArsquos Annual Conference amp Exposition before a set of judges consisting of accounting faculty members and practitioners Each year a new case is published in the August issue of Strategic Finance for students to use for that yearrsquos competition
Working TogetherIn this article we have summarised the changes that have affected the accounting profession and provided a competencies-based framework for guiding accounting educators in responding productively to those changes As a management accountant you know that implementing change in any organisation let alone within an entire profession never comes easily To be successful in overcoming our professionrsquos competency crisis IMArsquos practice and academic partners will need to assume leadership roles in defining enterprise performance management as the cornerstone of the accounting professionrsquos value proposition
This article was orginally published in the August 2014 issue of Strategic Finance It appears here with the permission of The Association of Accountants and financial professionals in Business
We need to educate ourselvesand future generations of account-ants so that as a collec-tive group we can deliver theexpanding set of com-petenciesdemanded in todayrsquos dynamicorgani-sational contexts
THE POWERFUL AND THRIFTY OFFICE ALL-ROUNDERS
The new ECOSYS M3560idn series will astound you With their print speeds of up to 60 pages per minute they are among the most productive A4 bw multifunctionals on the market We nevertheless managed to keep their ecological footprint and total cost of ownership impressively low by using our well-known ECOSYS technology and equipping the devices with our renowned long-life components The result Not only less waste and lower maintenance costs but also less hassle for you and all your colleagues You will also greatly appreciate the many customisation possibilities of the devices equipped with KYOCERArsquos open solution platform HyPAStrade as it allows you to tailor the device to your needs So yes we are proud of our new range of MFPs and can hardly wait to share their numerous benefits with you
For more information please contactKYOCERA Document Solutions Middle East | PB Box 500817 DubaiUAE | Tel +9714 4330 412 | Fax +9714 4231 944KYOCERA Document Solutions Europe BV - wwwkyoceradocumentsolutionseuKYOCERA Document Solutions Inc - wwwkyoceradocumentsolutionscom
52
ACCAINTERVIEW
wwwthecfomecom
GLOBAL By ASSOCIATION
across the region from our key employers and learning provider partners to our active and growing student and member base I want to understand their challenges and priorities and how ACCA can work with them to help support the economic success of the region
What can a CFO gain from working with ACCAThe ACCA qualification is about complete finance professionals For CFOs it brings the technical knowledge vital to business success complemented with the strategic management skills and ethical competence crucial to an organisationrsquos success As an organization ACCA in the UAE brings CFOs access to that local and global network of peers and expertise along with our leading research and insights that help them to keep up to date on the issues that matter most
Are there any initiatives in place to leverage the recently announced partnership with AAA
How are the ACCArsquos many years of activity being applied to the Middle EastACCA has now had a presence in the UAE for well over a decade During that time we have established strong relationships across the Middle East epitomised by the recent signing of our Strategic Partnership with AAA As a national body in choosing to partner with ACCA they recognised the local and global perspective we bring We are continuing to work with students members and employers across the Middle East to build their networks knowledge and business success through events research and insights and access to a growing number of online resources
Which initial priorities are among your key aims upon joining the organisationrsquos efforts in the UAEIn the first few months I hope to build on the success of the team in the UAE My priority will be to meet as many of our key stakeholders
The Association for Chartered Certified Accountants (ACCA) provides its services across a number of international borders The recent announcement of Lindsay Degouve de Nuncques as the new head of the Associationrsquos UAE chapter further exemplifies the ACCArsquos reach based on her previous work in the UK Nuncques shares here what she brings to the Middle East and just how globalisation has driven her ascent
53
ACCAINTERVIEW
wwwthecfomecom
The strategic partnership with AAA is the first of its kind in the region Students who complete the UAECA qualification will be entitled to both the AAA and ACCA designations and ACCA members in the UAE will also be eligible to apply for AAA membership This is a very exciting development in the market and together AAA and ACCA will be working to deliver maximum value to all our stakeholders from this partnership As we launch the UAECA qualification this activity will start in earnest
Which key industries will you be spotlighting in the Middle East in the months aheadOur experience of working across all sectors and levels of organisations globally gives ACCA a unique insight into all types of industries We will continue to be working with employers across the spectrum in the months ahead to help them gain the insight and make the connections that drive businesses to succeed at whatever they do
ldquoThe ACCA qualification is about complete finance professionals For CFOs it brings the technical knowledge vital to business success complemented with the strategic management skillsrdquo
54
Islamic FinanceMARKET OUTLOOK
wwwthecfomecom
In its 10th instalment the Forum is hosted in Dubai as a direct result of the UAErsquos increasing importance in the world of global Islamic finance
THE WORLD ISLAmIC ECONOmIC FORUm LANDS IN DUBAI
In Dubairsquos continued quest for leading the world across a range of spectrums the Emirate accelerated its desire to become the worldrsquos leading hub for Islamic finance by hosting the 10th installment of the World Islamic Economic Forum (WIEF) Delegates from dozens of countries attended to take part in a three-day event held at Madinat Jumeirah which rests alongside Dubairsquos gleaming coastline Held under the patronage of His Highness Sheikh Mohammed Bin Rashid Al Maktoum the
Vice President and Prime Minister of the UAE and Ruler of Dubai key speakers included The Honorary Dr Zeti Akhtar Aziz Governor of the Central Bank of Malaysia HE Kairat Kelimbetov Governor of the National Bank of Kazakhstan The Honorary Datorsquo Sri Mohd Najib Tun Abdul Razal Prime Minister of Malaysia and HE Xavier Bettel Prime Minister of the Grand Duchy of Luxembourg
Launched in 2006 in Malaysia WIEF has grown in tandem with the increased
Delegates from dozens of countries attended WIEF to take part in the three-day event
sophistication and reach of Islamic finance After a successful event in London in 2013 amidst increased interest in Islamic finance across Europe WIEF relocated to Dubai where the local business structure is keen to host halal finance
Said Hamad Buamim President and CEO Dubai Chamber of Commerce and Industry co-organisers of the event ldquo[The forum] is the start of a new chapter of cooperation between Dubai and the world as part of
55
Islamic FinanceMARKET OUTLOOK
wwwthecfomecom
Dubai Capital of Islamic Economy visionhellipestablishing a unified regulatory authority to provide the framework for standards across halal industries will significantly accelerate growth Likewise we need to see increased cooperation and partnership between the public and private sectors This is already happening with great success here in Dubairdquo
The order of global cooperation needed to facilitate growth across the Islamic finance world was more than apparent at WIEF based on how many differing nations were represented at the event The exhibitorrsquos hall was populated with a number of key Malaysian stands representative of the Southeast Asianrsquos ranking as the global leader in Islamic finance Also present were companies from Saudi Arabia also a key locality in the worldrsquos halal industries An interesting yet prescient presence was of attendees from South Korea a nation which is eager to participate in Islamic finance and will be hosting the WIEF Pyeongchang Roundtable in December 2014
ldquoGangwon is a province located in Korea which is very interested in new business opportunities Wersquove realised the strength of the Islamic economy and have come here with many different companies The first type is based in real estate investment We also have companies which want to export their products to the Islamic economy based on their halal qualities And Gangwon will also be hosting the Winter
ldquoKorea is very interested in the strength of the Islamic economy and wants to export its products based on their halal qualitiesrdquo
56 wwwthecfomecom
$247trillionProjected value of halal products industry in lsquo18
125Muslim percentage of global tourism expenditure
STAT FACTSOlympics in 2018 and are presently seeking investments for this as wellrdquo said Seong-hun Kim a member of Gangwon Province Governmentrsquos Export Support Team
Dubai proved to be an excellent place for the event considering how well the UAE is able to so regularly corral international cooperation A key sign of this was witnessed recently when Luxembourg now considered the third most important base for Islamic finance globally opened a finance office in Dubai International Finance Centre The European nation also opened a euro200 sukuk earlier this year which was quickly oversubscribed
The prime minister of Luxembourg offered the WIEF audience a riveting speech which detailed just how international the Forum has become whilst encouraging more of the world to support the growing influence of Islamic finance
Said Bettel ldquoWe need to innovate more economic partnerships for growth We sometimes need to reengineer relationships but also have to make sure these relationships remain sustainable Growth in one country also brings growth to others as long as this is guided by free market initiatives Free trade and free flow of capital combined with innovation leads to prosperity We have all gathered here in Dubai to explore the future of Islamic finance and Luxembourg is also a pioneer of Islamic finance in Europe The Islamic financial sector has a major role to play in continued global growthrdquo
The Islamic Corporation for the Development of the Private Sector (ICD) is based in the Kingdom of Saudi Arabia where it manages an international fund worth $2 billion half of which is available for subscription With shareholders in more than 50 countries and a sovereign sukuk fund recently launched in West Africa the ICDrsquos CEO Khaled M Al Aboodi attended WIEF this year excited to participate in the global event
How does the ICD approach its attendance at the World Islamic Economic ForumI think the Forum is one of the best places for discussing the financial issues of the OEC member countries It has been around for ten years and has grown to become a very important platform for discussion Wersquore here to attend and listen but also to network Itrsquos a great networking platform and a place to share views whilst letting everyone know what we have to offer
How has Islamic finance changed over the yearsOf course itrsquos growing in a large scale Some of it actually needs more support particularly with respect to regulatory frameworks Wersquore trying to partner with many international organisations like the IMF to try to provide support to countries to adapt regulation for Islamic finance Sukuk issuance is one of the biggest issues that needs to be addressed because there is a huge amount of liquidity in this arena Due to issues related to regulation sukuk issuance can be costly But with the regulation we are confident it will be on a level playing field with other forms of finance Compliance is a major area where more work can be done The Forum started with a roundtable on sukuk which shows how helpful WIEF has been over the years
What type of work does ICD do internationallyICD helped the government of Senegal to issue the first sovereign sukuk This was successfully issued last summer Progressing in this manner is something wersquod like to see continue across West Africa in order to utilise its resources with aiding development in the region in mind
QampA WITH KHALED M AL ABOODI CEO OF ICD
Islamic FinanceMARKET OUTLOOK
OFFICIAL SPONSORS
ENDORSED BY OFFICIAL HOST OFFICIAL
COMMUNICATIONS PARTNER
MEYDAN HOTEL DUBAI UAE19 - 20 NOVEMBER 2014
WOMENOMICSthe next emerging market
TAKE PART in making change happen UNITE with business and through leaders from across the globe
PARTICIPATE to the expansion of a modern and inclusive economy
58
Gautam PradhanINTERVIEW
wwwthecfomecom
SUCCESS BEyOND BOUNDARIES
in other management roles such as strategic decision making mentoring and leading efficiency and productivity across a range of other departments and functions as well as a being a catalyst in ensuring that the boardrsquos vision for the organisation is achieved
A significant percentage of NMDCrsquos shares are owned publicly Does the CFO play a role in balancing the interests of the shareholdersAs a CFO balancing the shareholdersrsquo interests is definitely part of my responsibility In order to achieve this goal there needs to be a careful evaluation of each decision while keeping the short-term and long-term goals of the company in mind At NMDC we actively implement a system where we utilise a balance scorecard as a method of ensuring that all our primary objectives are met yet at the same time continuously enhance our relationships with our shareholders
NMDC has completed various projects across the Emirates Are there plans to move abroadAs NMDC moves towards becoming an international player our strategic expansion plans are focused in areas within the GCC region and India In line with this strategy we opened
How has a company with such a unique set of deliverables grown so consistently over the yearsOur organisation strongly believes that the core to our strength is the people process and equipment A strategic decision led by our Board of Directors and the senior management has been implemented that required us to consistently invest in these three aspects to help expand our business beyond the territorial boundaries of the UAE and at the same time enhance what we can offer which is relevant to these segments We attribute our success to the efforts which every employee contributes We also strongly believe in the ldquoWe can make it happenrdquo principle The management raises the index of performance while setting SMART objectives within the organisation and encouraging the employees to achieve them
How has your position as the CFO changed over NMDCrsquos 35 years of operationAs the market evolves and business dynamics change my role as the CFO has become complex and more challenging A few years back I was mainly focused on bookkeeping accounting and other financial responsibilities such as arranging bank facilities But moving forward I became more involved
The UAE is progressively becoming a hub for world-class infrastructure The country has duly impressed the rest of the globe with noteworthy land developments showcased across the emirates Among the remarkable landscapes found in Abu Dhabi are the Corniche Beach Yas Island and Sir Baniyas Island Behind these successful projects is NMDC the dredging division of Abu Dhabi National Oil Company (ADNOC)
In an interview with CFO Magazine Gautam Pradhan Chief Financial Officer NMDC shares an exclusive look into the companyrsquos international blueprint for growth and his dynamic role as a strategic leader of one of the best in dredging and marine construction in the Middle East
59
Gautam PradhanINTERVIEW
wwwthecfomecom
branches in Qatar Bahrain Oman and India This has paid rich dividends recently as projects of strategic importance are bagged in Qatar and Bahrain Furthermore NMDC (UAE) has recently played a key role as a leader of an international consortium with Royal Boskalis Westminister (Netherlands) and Jan De Nul Group (Belgium) for the awarding of the Suez Canal Dredging project in Egypt Moving forward we have devised a strategic approach that will enable us to play a key role in the development of Indiarsquos marine infrastructure
What are the global strategies that are part of the CFOrsquos responsibilitiesAs CFO understanding the macro economic scenario risk analysis and mitigating those risks are all a part of my responsibilities I also have to have a proper comprehension
ldquoA few years back I was mainly focused on financial responsibilities moving forward I became more involved in strategic decision making mentoring and leading productivityrdquo
Gautam PradhanINTERVIEW
60 wwwthecfomecom
of the challenges faced by the company in terms of dealing with foreign contracts direct and indirect taxes and hedging and managing the integration process These are essential to enhance shareholders wealth and mitigate undue risk
How significant is accountancy for NMDC in its operations Why exactlyAccountancy is the lifeline of any company it does not only record the finances it also reflects the health of the organisation The MIS reports analysis trends and statistical information go a long way toward effectively providing
the diagnostic approach essential for the company
How have NMDCrsquos environmental activities helped the companyrsquos bottom lineNMDCrsquos work is well-synchronised with our environmental activities and specifically with nature Our activities are closely linked to sand and water and we view such activities with strategic importance Projects such as increasing water supply to mangroves and beach nourishment help us support the environmental activities while adding to our bottom line
ldquoAccountancy is the lifeline of any company it does not only record the finances it also reflects the health of the organisationrdquo
A burgeoning slice of Abu Dhabi coastline
The largest business awards
in the GCC30th November Dubai
nominate now at wwwstarsofbusinessawardscom
Stars of Business has become an iconic awards brand like no other in the region It recognizes the very best SMEs across 26 business categories Itrsquos universally respected as scientifically assessed and unimpeachably judged
327000 SMEs across the UAE$234 billion estimated total revenue of the SME sector4974 Awards entries in 20131856 Individual company applicants
Presenting Partner Strategic SME Partner Gold Sponsor Gold Sponsor VIP Hospitality Partner Supporting Partner
Trade Facilitator PartnerTrade Credit PartnerLogistics Partner
Institutional Partner Institutional Partner Event Partner
OrganiserPublisherMedia Partner Media PartnerPort Authority Partner
62
David Allen INTERVIEW
wwwthecfomecom
What went into completing your bestseller ndash Getting Things Done (GTD)After twenty years of researching developing and implementing a methodology for achieving stress-free productivity based upon
thousands of hours spent desk-side with
some of the best brightest and busiest people in the world I decided to write the manual for it Thatrsquos what Getting Things Done is
What are the five phases of mastering workflowIn order to get
any situation under control so
you can focus you will utilise these five
steps Whether yoursquore managing your kitchen
or your company you will need to collect and capture what has your attention clarify what if anything to do about it organise it according to what it means to you review and reflect upon it in relation to
Todayrsquos evolving CFO is often caught between the world of business set-up generating revenue managing employees and building strong company infrastructure When can things actually get done What can one do to boost productivity and master workflow World-renowned business coach David Allen has the answers
PRODUCTIvITy PRINCIPLES WITH
DAvID ALLEN
63
David Allen INTERVIEW
wwwthecfomecom
those are greatly subvertedHow does one maintain a fair balance between the time spent planning and actually getting things doneYou simply need to spend just the amount of time you need to to trust that what you are getting done is the right thing to be getting done in the moment It takes as long as it takes to get to that point Why would you do anything less
How can one apply your core productivity and workflow principles to todayrsquos technologically driven environmentThe principles and their techniques are system-independent Whether you have meaningful input from the Internet your smartphone or a conversation in the hall you must engage with it equally Technology has simply increased the flow of input and ease of distraction in your world
There is a lot of talk about how connected wersquove become and how connectivity is driving tremendous business growth Does connectivity actually come with its fair share of downsides
Connectivity is obviously a two-edged sword We can have intimate productive and creative interaction instantly with someone on the other side of the world and we can just as easily be distracted and seduced into those engagements when they may not be the best use of our attention and resources Donrsquot shoot the medium Itrsquos all simply bringing attention to your clarity of direction and priorities or lack thereof
Could you share a few quick tips with our readers to instantly boost productivityWrite everything down that has your attention Decide the very next actions required to get closure on all of them Any next actions that require less than two minutes do instantly Park reminders of everything else somewhere that yoursquoll see when you can do something about them
We are currently facing a massive information overload What are some basic principles you could suggest to mentally organise such large amounts of dataConstantly ask yourself Where am I going Whatrsquos important and rewarding to me Is this information
the whole and then engage your resources with intuitive trust
As a CFO how can you transfer efficient workflow management skills to your employees Itrsquos very difficult to legislate processes for individuals ndash you can really only hold them accountable for their results But if you are managing your own commitments and intersections with them with integrity and rigour it will automatically force your team to ldquostep up to the platerdquo in their own behaviours in order to meet your standards If you request their complete list of their company projects and they canrsquot produce it thatrsquos a sign theyrsquore not in control If they make a commitment to you that they havenrsquot kept thatrsquos data about their performance GTD is simply about good operational business practices
With so many planning and organising activities in your methodology is there a risk of losing spontaneity as a strategistThe reason for these best practices is to optimise freedom creativity and spontaneity Without them
ldquoBut if you are manag-ing your own com-mitments and intersec-tions with them with integrity and rigour it will automatical-ly force them to ldquostep up to the platerdquo in their own behaviours in order to meet your standardsrdquo
64 wwwthecfomecom
supporting that Park whatever you find potentially meaningful somewhere that is easy to access when needed
Being an entrepreneur is a non-stop job How do you ensure that you have an adequate work-life balance Pay attention to what has your attentionmdashwith regard to anything Your health relationships career finances etc Notice when something might be ldquooffrdquo and make good decisions about what you need to do to get it back ldquoonrdquo again
Does your work teach people to be efficient or effective In essence they are the same thing Effective choices are generated by efficiency on a higher level If you want to implement strategy most effectively it demands utilising your resources optimally which is efficiency
Does motivation actually improve quality of work or purely quantityDepends on the focus of the motivation You can be motivated to work harder and you can be motivated to work smarter
What is your favourite productivity mantra that
you implement in your day-to-day lifeUsing my own in-basket and note-taking devices to capture potentially meaningful and valuable ideas and soon afterwards clearing all of them out by deciding what to do about them if anything
Your books seminars and other work inspires many individuals and businesses Who is your personal inspiration or role model I have many about many different aspects of my life The only person though that I ultimately trust as my best guide is my higher self which I try to access as frequently and clearly as I can
Finally what advice would you give to current business owners and aspiring entrepreneurs looking to gain complete control of their life and businessCapture what has your attention clarify what you need to do about it to get it off your mind organise the inventory of all your commitments at all levels review and reflect on all of that regularly relax and trust your inner wisdom to engage with the most appropriate thing in the moment
ldquoIf you want to implement strategy most effectively it demands utilising your resources optimallyrdquo
David Allen INTERVIEW
APPSTECH TALK
wwwthecfomecom 65
mAxImISE BUSINESS lsquoON-THE-GOrsquo WITH THESE HANDy APPS
ipAd SpECIAL
SAMSUNG UNvEILS GALAxY NOTE EDGE
Network
AP
Display
OS
Camera
Video
Audio
Additional Features
GoogleMobile Services
Connectivity
Sensor
Memory
Dimension
Battery
The availability of service may differ by country All functionality features specifications and other product information provided in this document including but not limited to the benefits design pricing components performance availability and capabilities of the product are subject to change without notice or obligation
Samsung Galaxy Note Edge Product Specifications
25G (GSM GPRS EDGE) 850 900 1800 1900 MHz3G (HSPA + 42Mbps) 850 900 1900 2100 MHz4G (LTE Cat 4 15050Mbps) or 4G(LTE Cat 6 30050Mbps)May differ by country and carrier
27 GHz Quad-Core Processor
56 inch (1419mm) Quad HD+ Super AMOLED (2560 x 1440 + 160)
Android 44 (KitKat)
Rear Facing 16 Mega pixel Auto Focus camera with Smart OISFront Facing 37 Mega pixel camera with f19Rear Facing Camera HDR (Rich tone) Selective Focus Rear-cam Selfie Beauty face Virtual Tour Shot ShotampMore Dual CameraFront Facing Camera Selfie Wide Selfie
Codec H264 MPEG-4 H263 VC-1 WMV7 WMV8 Sorenson Spark MP43 VP8 Recording amp Playback up to UHD
Codec MP3 AACAAC+eAAC+ WMA AMR-NBWB Vorbis FLAC()() Ultra High Quality Audio (~192KHz 24 bit) support
Multi WindowUltra Power Saving ModeVoice Recorder (Normal Mode Interview Mode Meeting Mode Voice Memo)Download BoosterS Health 35Dynamic Lock ScreenBriefingEdge screen UX Revolving Interaction Immersive apps(Camera Video S Note)Ticker board Express me Quick Tools Night Clock etc
Chrome Drive Photos Gmail Google Google+ Google Settings Hangouts Maps Play Books Play Games Play Newsstand Play Movie amp TV Play Music Play Store Voice Search YouTube
WiFi 80211 abgnac (HT80) MIMO PCIeGPS GLONASS BeidouNFC Bluetoothreg v 41 (BLE ANT+)IR LED (Remote Control) USB20 MHL 30
Gesture Accelerometer Geo-magnetic Gyroscope RGB IR-LEDProximity Barometer Hall Sensor Finger Scanner UV Heart Rate Monitoring SpO2 (Dependent on market)
32 64 GB Internal memory + microSD slot (up to 128GB)3GB RAM
1513 x 824 x 83mm 174g
Standard battery Li-ion 3000 mAh Fast Charging (Adaptive Fast Charging amp QC20)
wwwthecfomecom66
APPSTECH TALK
AIR DISPLAY
SQUARE REGISTER
Using this app you can connect your iPad to your computer and use it as an additional screen While working on an important presentation or sales proposal you can extend or mirror your computer screen on your iPad This app is compatible with both Mac and Windows computers Note that to use this feature you have to install Air Display on your iPad and a separate free app on your computer The computer and iPad also need to be on the same Wi-Fi network in order to work in-sync
For Mac users the app allows you to connect to up to four screens ndash all at the same time
Apart from the ability to convert your iPad into a wireless display whatrsquos also attractive about this app is that it allows you to control your computer wirelessly using your iPad
This fantastic application can serve as a mobile point of sale for your business It allows you to accept credit card payments ndash including Visa MasterCard Discover and American Express A transaction fee of 275 is charged for every time you swipe a card The sale amount is transferred to your account within two working days
Once you download the app you can sign up and register for a unique card reader solution called the lsquoSquare Readerrsquo (this is free) Square Reader encrypts all card details and ensures that the transaction is secure Once you receive your Square Reader you can connect it to your device and are all set
The application also offers added features such as transaction history connecting to a receipt printer creating employee logins and more
AED 3699
PRICE
Free
PRICE
wwwthecfomecom 67
APPSTECH TALK
DOCUSIGNHave you ever been in a situation where your employees need you to urgently sign a contract but arenrsquot able to physically reach you in time DocuSign solves this problem with its easy-to-use eSignature feature In three easy steps you can sign important documents and securely send them to your intended recipient
First you have to import the document to your device ndash this could be from Dropbox Google Drive or another select applications You then place your signature or any other important legal information you need to include such as initials Once you have finished working on the document send it back via e-mail
Whatrsquos particularly great about DocuSign is the great emphasis it puts on security ndash so that users donrsquot have to worry about getting into any legal trouble
Use DocuSign and never miss a deadline again
Free for basic version
PRICE
MPAYAn initiative by the Dubai eGovernment Department mPay is a simple application that allows you to make important payments Once yoursquove signed up and entered your payment details you are good to go You can pay your Dubai Electricity and Water Authority (DEWA) bills Etisalat utility bills Dubai Police fines Recharge SALIK and much more
A handy feature is its lsquoauto-rechargersquo option which you can use to set automatic payments
Free
PRICE
Opinion CIMAPERSONALITIES
wwwthecfomecom68
NEW HORIZONSBy geetu Ahuja Head of gCC at CIMA
The days of the traditional accountant working within a small community in a small town in a small market have long gone CFOs are now being referred to as Chief Frontier Officers as they travel from market to market overseeing their offices overseas This new expanded role has distinct advantages for both the company and the CFO who gain new skills and new insights from foreign branches a single hand at the helm of many markets provides business perspectives on a global scale and benchmarks across the board
On a personal level working abroad also has huge importance Robert Walters the specialist professional recruitment consultancy recently conducted a survey
of almost 2200 employees across a variety of professions exploring a number of topics which ranged from working practices and attitudes to careers The results highlighted some notable trends particularly for finance professionals
In career progression for example the survey showed that 50 of all accountants see working abroad as either lsquoessentialrsquo or lsquoextremely usefulrsquo to furthering their prospects more than banking professionals lawyers and IT workers ndash a strong indication of how accounting professionals are thinking about their future either within their existing company or with opportunities elsewhere
Accountants with globally recognised qualifications obviously have a greater chance of gaining some experience abroad and the lsquoGen Yrsquo professionals in particular seem ready to pack their bags In a CIMA study conducted in the UK last year over a third of those seeking employment in the
next two years will prioritise opportunities abroad over those in their home countries many of them enticed by the career incentives offered by the Middle East
How quickly can they land what seems to be their dream job What are the realities It may be that the move is simply from one branch to another and the only significant difference is a view from the window but for those expanding rather than changing their roles we have seen a very real need for a depth and breadth of knowledge never needed before
As geographical boundaries are pushed ever-wider a CFOrsquos responsibilities are pushed with them For many finance executives the understanding of their own patch of land is no longer enough they now have to be aware of foreign markets up to speed with foreign trends and au fait with foreign laws There is a need for a new commercial awareness in geography as well as philosophy
As geographical boundaries are pushed ever-wider a CFOrsquos responsibilities are pushed with them
John vargheseQampA
wwwthecfomecom 69
BUSINESSSET UP YOUR
IN THE UNITED ARAB EMIRATES
TO
WAREHOUSESOFFICES INDUSTRIAL LANDFLEXI
Quick and easy company set-up
Less than an hour drive from Dubai
Complete cost-effective packages including licences and facilities
100 foreign ownership
Zero income and corporate taxes
Eligibility for UAE Residence Visa
BUSINESS SET-UP SOLUTIONS STARTING FROM AED 15000 (USD 4000)
RAK FREE TRADE ZONE PROVIDES
RAK Free Trade Zone Authority - Government of Ras Al KhaimahUAE (Ras Al Khaimah) Tel +971 7 2041111 (Dubai) Tel +971 4 7041875 (Abu Dhabi) Tel +971 2 6994888
Germany (Cologne) - Turkey (Istanbul) - India (Mumbai)
Call +971 7 204 1111 Visit wwwrakftzcom Join rakftz
THE MIDDLE EAST ACCOUNTANCYAND FINANCE EXCELLENCE AWARDSWEDNESDAY 10 DECEMBER 2014AT THE JUMEIRAH BEACH HOTEL DUBAI
ACCOUNTING FOR EXCELLENCE
Once again the very best talent in the world of accountancy and fi nance will be celebrated by ICAEW at a stellar awards ceremony
ICAEW is a professional membership organisation supporting over 142000 chartered accountants around the world And on Wednesday 10 December 2014 at the Jumeirah Beach Hotel in Dubai wersquoll be recognising excellence in ten categories featuring Business Leader of the Year CFO of the Year Corporate Finance Deal of the Year and the Internal Audit Excellence Award
With an impressive line-up of speakers special guests and entertainment it all adds up to a trulymemorable evening
To submit a nomination or for more information visit icaewcommiddleeastawards
Nominations close on 1 October 2014
A WORLD LEADER OF THE ACCOUNTANCY AND FINANCE PROFESSION
400595_ICAEW_MiddleEast2014_Ad_NBAD_DEVERE_207x270_AW_3indd 1 27082014 1541
PROCUREMENTANALyTICS
wwwthecfomecom22
Return on Supply Management Assets (ROSMA) is a pioneering framework launched by AT Kearney after four years of testing one aimed at addressing the aforementioned procurement gaps The performance measurement standard was initiated with an eye on creating a benchmark for the procurement industry and providing a compass to direct investments
ldquoROSMA started in 2010 And it started out with conversations with the CFO There are a group of folks in the company talking about how great their achievements are however
the capital that procurement claims isnrsquot often obvious and can create a disconnect within the companyrdquo said AT Kearney Vice President Federico Mariscotti
This yearrsquos annual report surveyed a number of businesses and arrived at a series of significant findings which outline procurement patternsbull Top-tier companies generate
approximately $16 million in financial return per procurement employee yearly A reported 35 per cent of return derives from applying advanced methods
bull Mid-level performers typically
The first step for compa-nies in the Middle East is to take a good look at what they expect procurement to bring
Leading global management firm AT Kearney recently released a report on the evolving conversation which surrounds procurement A key aspect of the report spells out how much CFOs stand to gain by making more pronounced investments based on utilising procurement in terms of value The relative distance between CFOs and their respective companyrsquos procurement methods is cited as cause for concern
THE NEW LANGUAGE OF PROCUREmENT
generate four to five times of their investment in procurement valuation yet have not exemplified growth since 2011
bull Performers at the lowest level surveyed do not achieve monetary benefits which cover costs
bull The majority of organisations surveyed do not possess the tracking structures needed to analyse procurement performance
bull Regardless of company size or industry procurement
PROCUREMENTANALyTICS
wwwthecfomecom 23
The CFO community has not yet awakened to the value of procurement
performance varies though companies with sophisticated reporting techniques experience less variable performance
The reportrsquos express aim to create a benchmark for procurement follows a wave of process monitoring which found notice in the manufacturing industry in the 1980s supply chain research and engineering in the 1990s and sales and marketing performance being closely tracked in the 2000s
ldquoProcurement costs can represent anything from 20 to 90 of a companyrsquos total cost going from the public sector to consumer goods Yet the productivity of the team that presides over the supply market interactions has a way of explaining their value add using savings that do not add up to the PampL impact measured by finance Savings definitions different baselines and cost avoidance all contribute to a murky aggregate view of the impact on the businessrdquo added Mariscotti
In the Middle East the challenge is fundamental ndash getting the spend data in the first place Companies admit they often do not have a clear categorisation of intelligence lack an agreed definition of savings measurement and generally position procurement as a pre-eminently transactional activity lacking the mandate to contribute value Procurement processes as a result remain centred around purchasing are paper based and lack transparency The first step for companies in the Middle East is to take a good look at what they expect procurement to bring
wwwthecfomecom24
Influencedspend
The inconsequential The brand leaders
Leaning up
Note All three segments start with a common hypothetical spend of 1000 to normalize the case example
Source AT Kearney analysis
Source AT Kearney analysis
TOP QUARTILE
mIDDLE-TIER 50
BOTTOm QUARTILE
704
764
644
522
527
396
42
30
(138) (25)
(63)
19
39
28
15
21
4
3
60
32
18
Sourcedspend
Units of yield
Post-compliance
benefits
Additionalbenefits
Financial results
delivered
19x
17x
middle tier
bottom quartile
TOP-QUARTILE PERFORMERS DELIVER NEARLy TWICE AS MUCH VALUE AS MIDDLE-TIER PLAyERS
THE CFO COMMUNITy HAS NOT yET BEEN ldquoAWAKENEDrdquo TO THE VALUE OF PROCUREMENT
Procurement is not on the radar for those who gave the wrong answers to three essential questions
leadership with accountability for performance is clear but either the measures are not clear or performance is believed to be weak variable or unknown ndash or a mix
leaners and leaders answered all three essential questions correctly and also answered most or all other questions correctly
to the table and how it should support the business To make a steep change companies need to understand the multiple benefits which will occur for investments made once theyrsquove allowed for stronger procurement practices
The benchmarking aspects of ROSMArsquos report speak directly to CFOs based on an existing widespread inability to track and improve this often unquantifiable nature of procurement practices According to the report the CFO community has not yet awakened to the value of procurement and Chief Financial Officers are thus divided into three segments The brand leaders (25) those leaning up (63) the pack (774) and the inconsequential (138)
Said Mariscotti ldquoThis is a way to give procurement a measurable quality that CFOs can quantify You have to know what yoursquore doing with relation to procurement in order to do it well ROSMA gives you a number which helps you understand how good your procurement is working as compared to peers It lets you know whether or not you could be doing something differentrdquo offers Mariscotti
CFOs have exemplified an increasing ability to share in a companyrsquos strategic efforts whilst expand their respective remits Procurement is emerging as the latest segment of this conversation Understanding its value beyond the transactional is the first step for CFOs to fully engage with harnessing the potential of procurement and grow to become a part of the elusively paltry portion of brand leaders indicated in ROSMArsquos report
PROCUREMENTANALyTICS
The pack(774)
Al Sharid is the Vice Chairman of Emirates Transport and has enjoyed a successful career in which the lionrsquos share of his tenure has afforded him a seat at the helm of the business
ldquoI remember when I first received the GM of Tata in the late 80s he said to me lsquoYou are the youngest GM I have ever metrsquo I was 29 years old at the timerdquo Looking at Al Sharidrsquos rapid ascent to the top of his organisation can be mind boggling to the average observer however to those few who strive to push themselves to their limits it is perhaps more common a reality As with any top performer we can often see their desire for results and impact
early on in life and with Saeed the first stride of his race to the top began with an accounting degree in university
It was 1976 and the excitement of the UAErsquos biggest milestone moment its inception just five years earlier still clung to the air from Fujairah to Abu Dhabi and every emirate in between A nation was being built Saeed had just finished high school and went to the United States where he was to study engineering
ldquoI was not yet 18 years old it was 1976 and I was sent to America to study it was the beginning of a dream and a young liferdquo says Al Sharid Unfortunately Al Sharidrsquos academic tour of duty came to
THE EmIRATI DREAm Saeed Al Sharid is today an elder statesman in the world of UAE accountancy With decades of know-how based on chairing a number of key Emirati organisations Al Sharid is today atop his own family firm In the following exclusive interview he shares the importance of education the evolution of a nation and just how being an accountant has driven his many triumphs
an abrupt halt when his father suddenly passed and he was forced to return home ldquoWe are seven brothers and I am the middle one so during tough times we always come together and during this period the strength of my family pulled me through I have three younger brothers and I felt I had to be there for them I felt responsible for them My mother played an omnipotent role in pulling us through this dark moment in our history The death of my father forced us to become more independentrdquo says Al Sharid
Now back in the UAE with his plans of studying abroad dashed Saeed looked at the local schooling system within which Al
26
InterviewPERSONALITIES
wwwthecfomecom
Saeedrsquos desire for results took its first stride with an accounting degree in university
By Shane phillips
27
InterviewPERSONALITIES
wwwthecfomecom
Ain University had just opened ldquoAl Ain University was the pride of the Emirate at the time the students were like celebrities The first batch of graduates were all promised 50000 AED from HRH Sheikh Zayed I was one year late so technically I should not have graduated with the first batch but I was determined I worked an extra course load did summer school and soon caught up to the first class 50000 AED in 1981 was like 5000000 AED today so I was very motivatedrdquo says Al Sharid
Saeed not only caught up with the other students but he wound up graduating atop Al Ain Universityrsquos first class of graduates with a 38 GPA ldquoWe Saeed Al Sharid
28 wwwthecfomecom
to the organisationrdquo he says Saeed first joined Emirates Transport after seeing a small newspaper advertisement for an accountantrsquos position He applied but initially they did not want to hire a local because locals were too expensive After a few months however they called him back for an interview and offered him a job
Initially Saeed struggled to get a promotion or even a raise He worked tirelessly to develop himself and kept detailed notes of his work After nearly two years went by with no promotion he requested to meet with the Chairman of the corporation to discuss his career The Chairman was a Minister making him even more senior than his title implied Al Sharid was courageous and determined ldquoYou should not stay silent you have to take initiative your future is in your handsrdquo says Al Sharid
ldquoI met with the Chairman and told him about my work and what I wanted to do He did not talk he just listened and that was it It was a 15-minute meetingrdquo says Al Sharid Three days after Al Sharidrsquos pivotal appointment he was promoted to Deputy General Manager Directly from a Trainee to DGM skipping all the roles in between at the age of 27 years old They doubled his salary and catapulted him into a senior leadership role
ldquoI felt it was quite strange to move up that fast and personally was not sure I could handle the job I had a lot of resistance from the board I had people in their 50s reporting to me and they were not happy about it So I just took a step back and did not try to get involved in their work too fast I went slow and watched my step This was a very important
ldquoThe UAE was a brand new country and a lot of work was being done to develop the nationrdquo
never had any idea of a career path and there was no such thing as career counsellors or lsquocareer servicesrsquo at the school So when you graduated most people just joined the Ministries The UAE was a brand new country and a lot of work was being done to develop the nation The Federal Government paid the highest and so one just joined them There was no grand vision or dream that I was off and chasing In those times you simply tried to do the next best thing So I ended up working in the Ministry of Health as an accountant Back then a university degree was a veritable qualification and it had a lot of market equity today it wonrsquot even get you in the doorrdquo
As the Middle East market evolves not only are university degrees becoming more common but so are post graduate degrees such as MBAs and even PhDs As such the competitive positioning of professional qualifications are gradually eroding over time
ldquoTo stay competitive executives today will require deep and specialised knowledge of their respective industries an intellectual arbitrage that provides superior results To beat the market to manage the risks to develop a sustained competitive edge For this executives need to stay in a role for the full strategic cycle which is at least four years in durationrdquo says Sharid In the case of Al Sharid he was there for 33 years
ldquoDo you just want a job or are you looking to make a contribution to your company Too many young people today are just looking for a title or a position The difference between those who make it into senior roles and stay there is the desire to create impact to add value
InterviewPERSONALITIES
2012year Moodyrsquos upgraded the UAE economy from developing to emerging
37The UAErsquos global rank for GDP
STAT FACTS
moment for me to gain valuable leadership experience early on To make my learning curve even steeper the General Manager quit after two years and I became the GM at the age of 29 years oldrdquo explains Al Sharid
He ascended to the top job in less than five years and stayed in the position for almost twenty years He was totally committed and could even be found in the bus yard at four in the morning to greet the drivers as they started their shifts ldquoThe key to being successful in business is to keep your finger on the details Some people let the details slip and if this happens you will suffer I get into the yard I meet the drivers I meet all the staff If you saw us you will not know who was the GM or who was the driver You have to realise people will never work for you they will only work with you To me Emirates Transport is like my familyrdquo says Al Sharid
When asked what his keys to success are he says ldquoI think if I was not an accountant I would not be a good leader I would not be a good manager In my opinion trying to do business while not understanding accounting is like getting into the ocean and not knowing how to swim you will drown The Chief Executive Officer who does not know how to create the financial statements is always at the mercy of his Chief Financial Officer He cannot take any big decision on his own and he will not even be able to challenge the CFO Accounting is the bedrock of any business and a critical skill set for any leader No one can argue with this factrdquo says Al Sharid
With over 20 years of experience in tow and the related chairmanships to boot Al Sharid
ldquoTrying to do business while not understanding accounting is like getting into the ocean and not knowing how to swim you will drownrdquo
has since early last year partnered with his family to form Al Sharid Auditing Though the Emirati youth is not as keen to pursue positions related to accountancy as Al Sharid was he feels that there is hope to close the gap
ldquoIt is difficult to find an Emirati expert I studied the audit market specifically and there were others like me then But now you break Emirati auditing involvement into three categories The first involves the big firms This is followed by individual smaller enterprises But thirdly a lot of locals opt to work with the government also Most are not managing their own firms they just have a partnership and they are building thatrdquo Al Sharid explains
ldquoAl Sharid Auditing however is a firm that includes my brother and our two sons which make up a body of qualified professional auditors We established this firm last year and work closely with the government We decided to make one firm together instead of having many smaller entitiesrdquo
Moving forward Al Sharid plans to grow his familyrsquos firm by applying the very belief system which has catapulted him to his position of power Marketing concerns which are designed to furthermore announce how tailored Al Sharidrsquos offerings are at present a key variable to forging ahead
Said Al Sharid ldquoMoving forward wersquore focusing more on the marketing of our firm Itrsquos a matter of not exactly expanding but going over the right deals The market is tough and the small jobs are easy but we donrsquot need them We donrsquot want to be in many rooms we want to be in the important onesrdquo
29wwwthecfomecom
InterviewPERSONALITIES
1UAErsquos rank among GCC nations for chosen hub of all major accountancy bodies
STAT FACTS
Latest insights from PwCrsquos 15th Annual Global CEO Survey revealed that 59 per cent of CEOs see emerging markets as more important than developed markets to their future What is making emerging markets such a pressing priority for C-suite executives Why are emerging markets increasingly grabbing headlines
Emerging markets are large fast-growing and ambitious markets best known for being the growth engines of todayrsquos global economy Research (1) suggests that emerging market countries are expected to amount for more than 60 per cent of global GDP growth ndash a clear indication of the wealth of opportunity they present
Understanding emerging marketsBased on estimates by the International Monetary Fund emerging economies are expected to grow two to three times faster in comparison to developed nations Explaining this fast-growth and the rise of these emerging markets an article on Forbescom details that ldquoduring the US housing crash and resulting credit crisis of 2008 world markets were saved from a total disaster thanks to the big emerging markets ndash mainly Brazil India and China The global credit crisis was one of the longest deepest and most painful in history It toppled Wall Street icons like Lehman
The following report explores emerging markets from West to East which are at the helm of economic development trade and innovation and highlights what their rising popularity means for the growth of your business
Brothers required government bailouts of bulge bracket banks and shocked the global economy with a deep economic recession and even a deeper crisis of confidence Its most important legacy though may be one that has yet to fully unfold the crisis revealed a new world order in terms of economic and market dynamics Emerging market economies finally arrived as
30
Market IntelligenceANALyTICS
wwwthecfomecom
ENTERING EmERGING mARKETS STRATEgIES RISKS ANd OppORTuNITIES
Projected annual GDP growth 2014 amp 2015
PANAMA
67
PERU
RANK42
55
Projected annual GDP growth 2014 amp 2015
Ease of Doing Business
RANK55Ease of Doing
Business
TOP TEN MARKETS
(1) Source here Accenture Research ldquogearing up for growth ndash five imperatives for success in emerging markets 2011 Henry Egan and Armen Ovanessoff
31
Market IntelligenceANALyTICS
wwwthecfomecom
LATVIA
CZECH REP
MALAYSIA
THAILAND
SOUTH KOREA
CHINA
RANK75
41
21
50
45
35
74
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
CHILE
RANK 34
43
Projected annual GDP growth 2014 amp 2015
Ease of Doing Business
RANK 24Ease of Doing
Business
Ease of Doing Business
RANK 6Ease of Doing
Business
RANK18Ease of Doing
Business
RANK 7Ease of Doing
Business
RANK 96Ease of Doing
Business
POLAND
32
RANK45Ease of Doing
Business
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
Source httpwwwbloombergcomnews2014-01-29qatar-china-top-ranking-of-frontier-and-emerging-marketshtml
powerful essential and permanent contributors to global economic growth and sustainabilityrdquo
Bloombergcom recently ranked the top emerging markets based on their performance on 19 economic financial political and social indicators In order of ranking the top ten markets were
CHINA
SOUTH KOREA
MALAYSIA
CHILE
THAILAND
PANAMA
PERU
LATVIA
POLAND
CZECH REP
1 6
2 7
3 84 9
5 10
Market IntelligenceANALyTICS
32 wwwthecfomecom
Making an entryIf your business is looking to enter any of these emerging markets itrsquos worth considering the following checklist
1 Assess your readiness The biggest mistake you can make is to enter a market without proper evaluation of your business Donrsquot do it just because everyone else is Like every other major business decision be sure to speak to your Board of Directors partners investors stakeholders and most importantly your CFO and certified accountants Make a business plan enlisting your objectives goals investment strategy potential risks etc
2 Research research research Do your homework Treat emerging markets as any other international expansion venture and do thorough research on the new market ndash Who are the competitorsWhat is the price point for your product What are the customer demographics What kind of infrastructure do you need for the manufacturing production or distribution of your product
3 Understand the legal framework Emerging markets might not have rules and regulations as clearly spelled out as your home country Invest some time and money in understanding how business procedures work A very obvious area of focus for UAE-based companies is tax Since the UAE is a tax-free economy companies arenrsquot exposed to tax accounting and other legislation surrounding
ndash failing to adapt to the needs and expectations of the local customers is surely a recipe for failure Time and again companies havenrsquot been able to create a customised offer and have had to exit these markets with huge losses A success story however is that of the Haier Group Haier famously introduced washing machines to specifically suit the water pressure levels in the households of India ndash an emerging market strategy that worked very well in their favour and helped them become leaders in that sector Another great example is that of Coca-Cola as explained in an online Reuters article by Matt Reilly ldquoIn Brazil Coca-Cola has used social media to better understand consumer preferences and has developed a successful local network to supply traditional Coca-Cola products as well as fruit juices tailored to local tastesrdquo
7 Local currency This is a complex yet critical area to consider when entering a new market Ask yourself questions such as ndash What is the local currency rate How does it compare to the currency in your home country Is the country import-led or export-led and what impact can this have on the global value of the currency Remember that fluctuations in currency rates can hugely effect your overall investment and thereby the return on investment
8 Build partnerships When entering an unknown territory it is quite useful to have the backing and support of peers who can help you in case of unforeseen challenges This is
this Another area to consider is corruption ndash emerging markets are notorious for high corruption red-tape and bureaucracy Speak to your company lawyer to assess these areas and take proper measures to avoid them before-hand
4 Invest in local talent Working with people already accustomed to the new market avoids the hassle of relocation and reduces costs But more significantly gives you skilled talent to work in these unique environments This also works in favour of your company as it gives you a clear understanding of the kind of compensation packages you will have to offer to your employees For instance employees based in China might want high remuneration and low healthcare benefits while in India it may be quite the reverse Recruiting local talent will also have a trickledown effect ndash your employees will easily be able to cater to the local customer needs without the need for intense training
5 Supply chain 44 per cent of business leaders surveyed consider accessing the right supply chain capabilities extremely or challenging in emerging markets according to Deloittersquos Globalisation Survey Make sure that you know who your suppliers will be what the production costs are whether their production procedures fit your time constraints and if the final product matches your level of quality
6 Cater to local market demands This is one of the most important aspects of all
Do your homework Treat emerg-ing markets as any other internation-al expansion venture
Market IntelligenceANALyTICS
33wwwthecfomecom
the very reason why Mergers and Acquisitions are a popular way to enter into emerging markets Many companies piggyback on their clients who are entering these markets For instance if you are an IT consultancy working on a major project for a manufacturing and trading company with operations across India and China you can use their resources and expertise to explore opportunities in these countries
Remember to consider these steps every time you enter a
new market as every locality has its own set of unique needs One strategy doesnrsquot fit all
Surviving fierce market conditionsWhile the massive opportunity that lies within emerging markets paints a pretty picture businesses need to be wary of bottlenecks such as corruption volatility gaps in laws and regulations and strong competition There have been several high-profile cases of multinational companies withdrawing from emerging
markets owing to immense corruption pressures
There is also a high percentage of inherent risks in these markets which amount to many companies not succeeding in their first attempts It is important to take your time when adapting to these markets and fully understand the business dynamics Following recent case studies and going over the lessons learnt by multinational companies who have made an entry into these markets consider the below
bull Is your companyrsquos head-office ndash and senior management ndash located in your home country without any C-level representation in the new emerging market
bull Are you focusing all of your resources on doing business in the emerging market at the cost of losing profits in your home market
bull Have you researched local competitors in these markets who may already have a strong standing and proven models of success
bull Are you using the same ldquoentry approachrdquo and business model across different emerging markets
If your answer to one or more of these questions is yes it may be time to re-evaluate your presence in these markets and map out a different strategy
Finally remember that no matter what the outcome of your admission to these markets might be your business is sure to emerge out of this stronger tougher and ndash of course ndash ready for a new challenge
of companies believed they had invested more resources in
emerging markets than was required
entered a market without fully assessing the ability of the supply chain to support the expansion
entered with the wrong pricing model and an inappropriate
operating model
CONSIDER THE RISKS
48
24
20
There is also a high percentage of inherent risks take your time when adapt-ing to these markets and fully understand the business dynamics
Source Emerging markets expansion and the supply chain Economist Intelligence unit survey conducted on behalf of EY September 2010
34
CIMA INTERVIEW
wwwthecfomecom
The Chartered Institute of Management Accountantsrsquo (CIMA) Managing Director Andrew Harding visited Dubai to host the Institutersquos seminar on global management accounting principles In the wake of CIMA revising their well heralded syllabus Harding discussed with CFO Magazine what the newest edition held how CIMA is applying a digital focus to its courses and just how CFOs can gain from it all
CURATING CURRICULUm
35
CIMAINTERVIEW
wwwthecfomecom
can give CFOs something they can take and something they can measure their own management accounting services against They can benchmark using this and they can utilise this to see their progress
Part of that is having professional management accountant in place I donrsquot think the landscape matters I believe that there is a common business need wherever you may be around the globe
All of the emerging markets need these skills The first aspect that accounting schools teach is about auditing skills because theyrsquore interested in protecting investments Then they teach you how to keep your business sustainable and to have a sustainable business you need to have a management accountant in place So itrsquos not just here in the UAE where we see these demands we see the same demands in China Indonesia and other powerhouse economies We see their skills shortages and we see the need for solutions in those areas
Talk to me about how this new syllabus works to promote the evolution of a CFOThis syllabus that wersquove
Can you expound on just what can be found within the new CIMA syllabusWe just revised the syllabus we do that every four to five years What we have done this year is a very significant revision It is based from a complex study that we have carried out to over 3000 people from 200 companies globally It is the very first revision since the joint venture with CIMA and AICPA So this has allowed us to attain a syllabus rich with all the data from all the continents in the world For the first time wersquove had real involvement from companies in the USA in this project
Why is the collaboration between AICPA and CIMA significantMost important is the Chartered Global Management Accountant (CGMA) designation that AICPA and CIMA both issue for qualified management accountants Wersquoll have a common curriculum and common examination which will begin on January 1 which gives us a global designation for management accountants wherever they are around the world There are plenty of accounting bodies who claim to be global but actually this is the only
genuinely global designation This is because it has the only one with a North American participation in it So we can say that the CGMA will be just as well-recognised in the USA as it is in Dubai
With the global landscape in mind how do you create an even objective that applies to localities which may prove widely differentialThe landscapes are different but businesses have common needs wherever they may be What wersquove particularly seen since the global financial crisis is that companies are actively looking to build management accountant capability to build that capacity within their organisations They donrsquot want to have a poor quality of information that lacks insight being used in their businesses So they see management accountants can bring solutions to that As a result of all the work wersquove done with companies who participated in the syllabus wersquove also put together a series of what we call Global Accounting Principles This is a series of principles which describes what good management accounting looks like and what top quality management accounting in a company should be producing This then
ldquoCompanies are actively looking to build man-agement accountant capability to build that capacity within their organisa-tionsrdquo
36 wwwthecfomecom
worked on acknowledges the skill set needed by professionals throughout their career Therersquos a base level of competence that is needed but beyond that there is more There is business acumen the ability to communicate and influence and finally the ability to lead So you start off enhancing your raw technical accounting skills Then you need to place that into the context of the business that you are in Then as you move forward and as you rise to become the CFO yoursquoll need the others You have to learn how to present your work in a way that can influence and make an impact in the business The final piece is the ability to lead projects and other functions and to a great extent lead the board of directors Thatrsquos how the context works itrsquos not just about technical knowledge
How do you find that CFOs in the GCC region are responding to this programmeThe CFO has a real challenge on his hands now In 1975 80 per cent of corporate value is showing on the balance sheet By 2010 that dropped to less than 20 per cent Your traditional PampL reports no longer reflect the value of the business or how the business drives value
All things that should be of interest to investors is missing With things like the integrated report initiative wersquore starting to see the other dimensions that add value to business For CFOs thatrsquos all about strategic thinking and considering the long-term objectives Being articulate in implementing those strategies keeping in mind the risks and opportunities that the business faces We are also nowadays witnessing a whole new world of transparency around that
Are there electronic aspects to CIMArsquos advancing approachThe interactive case study simulates a real working situation and it tests how they can apply their knowledge in real life situations Theyrsquoll be presented with a scenario a few weeks before they take the exam so they can prepare for it They then go to an exam centre where they are asked questions about how they will deal with a certain situation in the real world Theyrsquoll get an email from the CFO giving them a certain task for a particular period of time We want to make it as close to reality as possible so students taking the exam will be assessing situations based on real life scenarios
ldquoThe CFO has a real challenge on his hands now as traditional PampL reports no longer reflect the value of the businessand [the role] must focus on strategic thinking and considering long-term objectivesrdquo
218KCIMA members worldwide
STAT FACTS
CIMA INTERVIEW
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
38
ERPANALyTICS
wwwthecfomecom
Faster more nuanced IT solutions are available to the modern day CFO Whilst Chief Financial Officers are called upon to analyse data across a number of spectrums the digital tools on hand are likewise being expanded to aid in focusing more squarely on the bottom line
ExCELLING WITH ERP
The global landscape is today firmly entrenched within a digital model As a result CFOs whom are called upon to take a larger role in a number of variables must also increase their abilities with respect to utilising the many upsides which tech innovations offer a business When surveyed about their most pressing concerns CFOs generally return a varying collection of responses Revenue growth regulatory changes and meeting quarterly goals are among the chief concerns Virtually every obstacle can be hurdled by way of maintaining the order of financial reporting and data which has long been
synonymous with the Chief Financial Officerrsquos remit A widening berth of ERP solutions is making this data all the easier to come by
Despite how sophisticated the market is today it was not long ago that ERP departments once spent days processing business reports
Said Rohan Tejura Assistant Vice President Focus Softnet ldquoTraditional ERP systems were solely data repositories Moreover these repositories werenrsquot real time and were incredibly dependent upon locational connectivity With the emergence of smarter development platforms more versatile devices and
39
ERPANALyTICS
wwwthecfomecom
more intuitive designs of system development the overall experience of the ERP now extends from data warehousing to reporting analysis trend mapping business intelligence and governance oriented capabilities Yet these solutions amazingly execute all of these deliverables via portable handheld devices and through cloud environmentsrdquo
New generation ERP systems must now be on the go whilst including up to the minute analytics to provide deeper insight into the business ERP Analytics tools use historical data captured from various business functions to provide valuable information for efficiency and business performance each incredibly priceless to a leading CFO
Finesse is an ERP provider which is continually addressing the transformation of output which the ERP industry is offering the equally transitioning role of CFO
ldquoWe provide end-to-end business management solutions to SMEs and Enterprises Our approach to ERP is much more than providing simply an operational management systemrdquo said Finesse COO Sunil Paul
ldquoWe believe that todayrsquos businesses need much more than integrating sales with inventory accounting and manufacturing but also to have seamless integration with all their sales channels including the point of sales ecommerce and inbound sales solutionsrdquo
A major im-petus of the ERP-cen-tered growth is based on how effec-tive com-prehensive real-time data proves to be for the CFO
40 wwwthecfomecom
before thereby creating new global benchmarks for overall economic growth
Microsoft Arabia CFO Sadrul Khan offered insight into just how far the knowledge economy has influenced regional financial leadership by explaining how one of the most prioritised technologies by CFOs in the region is social platform monitoring
ldquoOne of the five technology choices that CFOs tend to prioritise in boosting productivity efficiencies and faster decision making in the fast paced business environment which include a social platform that monitors trends customer sentiments and helps process mashable data for customer centricity and business growthrdquo said Khan
A major impetus of the ERP-centered growth is based on how effective comprehensive real-time data proves to be for the CFO Whether employed as on-premise ERP software-as-a-service or cloud-based solutions a nearly identical ethos is being utilised Allowing the CFO to quickly access the performance of all facets of a business is paying dividends in the boardroom a reality which is showing itself increasingly in the Middle East
The technologically-charged relationship between ERP solutions and the regionrsquos CFOs is expanding and as a result has catalysed what many see as GCC economic performance outstripping that of many economies outside of the region as a result
In order to compete in todayrsquos fiercely competitive environment organisations need to think both innovatively and out of the box They require more insights about their business and their customers and need to ensure that they are able to meet the expectations of their internal as well as external stakeholders Enormous amounts of data both structured and unstructured is continuously being generated within the internal and external systems of the organisation which if analysed can be of immense value both to the business and subsequently the stakeholders associated with the organisation
With the the era of CFOs labouring over spreadsheets now in the past given how many business frontiers have become so dependent on mobile options such as the cloud more and more tech companies are providing the regionrsquos CFOs with information technology that converts traditional internal and external data into rich visual insights This information is then used for faster decision making and provides the ability for a CFO to assess manage and control risks Regional CFOs have grown enabled to drive corporate strategy accordingly demonstrating how the knowledge economy is now in full force amongst the Gulfrsquos corporates
Given that advanced IT has now become a regular CFO tool the regionrsquos CFOs are subsequently making faster decisions and driving internal growth models with greater speed and agility than ever
Tech companies are providing the regionrsquos CFOs with information technology that converts traditional internal and external data into rich visual insights
ERPANALyTICS
Donrsquot discoveritrsquos counterfeittoner afteritrsquos too lateOriginal HP Toner works first time every time1 unlike cheap toners which fail over half of the people who try it2 Non-HP toner can compromise your printerrsquos performance to give you streaked blotchy or faded prints Only original HP Toner cartridges deliver unmatched quality for the most professional-looking prints 100 of the time1
1 A QualityLogic 2010 study commissioned by HP comparing original HP LaserJet Monochrome print cartridges with nine brands of non-HP toner cartridges available in Europe Middle East and Africa for the HP LaserJet P1505 and P4015 printers HP 36A and 64A For details see wwwqualitylogiccomEMEAmonotonertestpdf 2 From a 2012 EMEA Lyra Research study commissioned by HP Results based on a total of 1050 HP Color LaserJet users who have used both original HP and non-HP toner cartridges of whom 552 experienced problems with non-HP cartridges
copy 2014 Hewlett-Packard Development Company LP
42
Private Equity ANALyTICS
wwwthecfomecom
The rise of PE-backed acquisitions is forcing CFOs to develop an entirely new set of skills
THE PRIvATE EQUITy CFO
The CFOrsquos utility in the world of private equity is without question on the rise The once-held belief of the CFO existing solely as the ldquoaccounting guyrdquo has been abandoned Over the last 20 years the role of CFO has become more demanding - requiring not just finance and accounting acumen but also a financial literacy in corporate planning risk management MampA assetliability management and regulation This evolution has been driven by a number of
key factors Yet the private equity industry which is now reshaping the corporate landscape through active ownership is by far the most significant factor driving change within the role of the CFO
PE-backed buyers today represent a larger percentage of overall buyers in the corporate acquisition marketplace than ever before Data provider Prequin estimates that as of June 2014 the capital raised by PE funds that
has not yet been deployed amounts to $114 trillion globally The result of this ldquodry powderrdquo is that a vast quantity of corporate acquisitions in the coming years will be undertaken by the private equity industry As such CFOs will be more accountable to demanding ldquosmart moneyrdquo shareholders than at any point in recent history Budgeting accounting and financial reporting will no longer exist as sole priorities but as a core competency among a
ldquoBy effec-tively using real-time data CFOs can create a dynamic process that proac-tively drives performance account-ability and value crea-tionrdquo
By Aaron Heidari
43
Private Equity ANALyTICS
wwwthecfomecom
robust set of complimentary and required skills Most of all the bar for CFOs is rising as PE investors will only accept above-average performance from their management teams
CFOs were once more reactive in function setting budgets based on other executivesrsquo plans and managing the flow of reporting to shareholders on a quarterly and yearly basis Today CFOs are required to become proactive managers of their respective businesses alongside their C-suite compatriots using a granular data-driven approach to aggregate analyse implement and report on every aspect of a companyrsquos operations
An important tool to drive this value creation process are KPIs Yet KPI structures including both aggregation and output are generally not up to the standards required of private equity investors prior to an investment being made
ldquoThe benefits of using KPIs and monthly reporting packages are significant By effectively using real-time data that is actionable and by partnering with functional area leaders within the organisation company CFOs can create a dynamic process that proactively drives performance accountability and value creationrdquo said Amanda Robinson Vice President of Accordion International in Dubai a consulting firm which is comprised of former private equity and investment banking professionals who
MENA region Cumulative Funds Under Management Since 2008
Source Zawya private Equity Monitor
19 636 20 36321 586
22 64323 506 24 250
-
5000
10000
15000
20000
25000
2008 2009 2010 2011 2012 2013
Cu
mu
lati
ve f
un
ds
($ m
)
$15mAverage MENA PE investment size in lsquo13
50Percentage of investment in IT and energy sectors
STAT FACTS
44 wwwthecfomecom
work with companies to deliver cost-effective project execution services
Active shareholders whose money it is being spent will typically require a data-driven justification before approving any budgets capital expenditures or new acquisitions Furthermore in many private equity backed companies the use of debt and the matching of shorter-term bank financing with longer-term investments will only be considered after a robust analysis is conducted to understand the companyrsquos ability to service that debt in the future This evaluation is not simply to identify revenues expenses and profits Itrsquos about drilling down into every transaction and rooting out data processing and reporting At least that is the expectation
The most valuable CFOs are those who have the ability not just to scrutinise and understand the financials but all also possess a wider grasp of the underlying data which truly comprise the business As an investor who has just acquired a stake in a new business I want a CFO who can manage the transition and stay ahead of my expectations Most of all a CFO should impress upon the companyrsquos shareholders a new way of doing business The first 100 days of an acquisition are said to be the most important During this period the CFOrsquos worth will be established when the new financial plan is due and the platform for the next five years of growth is presented
A CFO should man-age the tran-sition stay ahead of expectations and impress upon the companyrsquos shareholders a new way of doing business
Investment Volume By Sector Since 2006
Investment Volume By Sector in 2013
Source Zawya private Equity Monitor
1
3
30
17
3
28
3
4
6
4
6
5
17
9
9
6
9
5
8
6
6
2
3
10
Education
Education
Information Technology
Information Technology
Other
Other
Telecoms
Telecoms
Media
Media
Transport
Transport
Oil amp Gas
Oil amp Gas
Healthcare
Healthcare
Consumer goods
Consumer goods
Food amp Beverages
Food amp Beverages
Leisure
Leisure
Manufacturing
Manufacturing
ANALyTICS
Private Equity
2000857 NBAD ratibi mag ad 200x268 Finalindd 1 92514 1017 AM
46 wwwthecfomecom
THE FUTURE OFACCOUNTING EDUCATIONAddRESSINg THECOMpETENCY CRISIS
Have you ever stopped to think about how the accounting profession has changed since you graduated from college Recent graduates can answer this question by reflecting on the last two or three years whereas for other more seasoned professionals answering this question requires a bit more thought and memory searching Indeed we can all think of ways that the field of accounting is remarkably different today from the one we likely envisioned during our college daysmdashregardless of which decade we each donned our cap and gown This gradual transformation of the accounting profession leads to two important questions related to competencies bull Which competencies are important for success inaccounting todaybull Were these competencies consciously developed as partof your accounting degree programme
We suspect that more than a few of you would answer ldquonordquo to the second question Put another way our profession may be facingmdashmore so than at any time in the pastmdasha ldquocompetency crisisrdquo that is a gap between the competencies needed for professional success and those taught in our college classrooms today We propose a three-pronged strategy or ldquogame planrdquo for overcoming this competency crisis and in turn better preparing accounting graduates for the challenging world they will face First all of us accountants need to understand the changes that have already taken place in our profession and perhaps more importantly anticipate the changes that are on the horizon Second we need to educate ourselves and future generations of accountants so that as a collective group we can deliver the expanding set of competencies demanded in todayrsquos dynamic organisational
contexts Third as professional organisations and as individuals we need to think beyond ourselves by asking How can I (or we) help the accounting profession address the competency crisis
A Shift Toward Integrated ThinkingMany articles and white papers have been written that describe in detail the changes that have occurred in our profession over the last few decades but for our purposes wersquod like to distill these changes down to one crucial idea How does the accounting function add value to an organisation Accountants have evolved from support-oriented personnel who hand off information to others who actually make decisions into business partners who ldquohave a seat at the tablerdquo with managers
By peter C Brewer James E Sorensen CpA CgMA and david E Stout
47wwwthecfomecom
1048576bull What regulatory risks mayaccompany the proposal
1048576bull What social and environmentalfactors will we face if for example the proposal requires investing in overseas operations
1048576bull What types of employeeresistance may arise if we implement the proposal and how will we overcome the root causes of any such resistance
1048576bull Can and how should we valuefuture options associated with the proposal such as expanding or contracting the investment over time as new information becomes available
1048576bull Should we use debt or equity tofund the proposal
In short accountants have evolved to become integrated thinkers who enable EPM by partnering with managers across the organisation to add value Yet as EPM has gradually become the centrepiece of our professionrsquos value proposition accounting education hasnrsquot done enough to embrace it To overcome this gap wersquod like to further suggest that the concepts of competency integration and EPM need to come ldquofront and centrerdquo as we move forward in educating the next generation of successful accounting practitioners
Accounting Education No Longer on the SidelinesRecently a task force consisting of members of IMAreg (Institute of Management Accountants) and members of the Management Accounting Section (MAS) of the American Accounting Association (AAA) addressed the competency issue How should accounting education change fundamentally to help close the competencies gap The efforts of the task force led to
cash flows and how to apply discounted cash flow (DCF) decision models such as net present value (NPV) is of foundationalmdashsome might say critical mdash importance But integrated thinkers draw on an understanding of organisational strategy coupled with a broader set of competencies (beyond what might be considered technical or foundational knowledge) when making these types of decisions For example they consider how behavioural issues may influence the capital investment decision-making process Perhaps the financial estimates contained in the NPV analysis are too optimistic because the manager who prepared the numbers has a vested interest in seeing the project approved Decision makers also need to consider issues such as leasing vs buying a capital asset and the corresponding impacts on the financial statements and ratios that are tracked by investors and lenders What nonfinancial factors are associated with the proposed investment Add in the tax consequences of capital investment decisions coupled with the need to maintain internal control over any new business processes tied to these decisions and the need to think in an integrated fashion across a variety of accounting competencies becomes apparent
Furthermore becoming a true business partner with managers across the organisation requires more than simply integrating various accounting competencies It also means thinking like a business manager or a chief executive officer (CEO) Returning to the capital budgeting example an integrated thinker will ask questions such as
across the organisation Together they formulate and plan strategies then participate in collaborative decision-making processes that execute those strategies in a manner that adds stakeholder value Said another way accountants have evolved to become enterprise performance managers This shift in our orientation from a support function to an enterprise performance management (EPM) role has enormous implications for defining the determinants of success within our profession the most important of which involves becoming collaborators and ldquointegrated thinkersrdquo Take for example a common but important business decision process capital investment analysis Certainly technical knowledge regarding how to estimate relevant after-tax
48 wwwthecfomecom
expanding capital budgeting discussions to include financial statement impacts tax consequences and internal control issues integrates topical coverage across the External Reporting and Analysis Taxation Compliance and Planning and Assurance and Internal Control competencies shown in Figure 1
Third accounting curricula can incorporate a broader set of management competencies For example evaluating capital investment proposals from the perspectives of change management (Leadership) social and environmental issues (Ethics and Social Responsibility) regulatory concerns (Governance Risk and Compliance) and capital structure (Additional Core Business Competencies) brings a CEOrsquos perspective to the decision-making process
Fourth accounting curricula should include foundational competencies such as proficiency with spreadsheets and written and oral communication In the context of capital budgeting this may include asking students to use Microsoft Excel to perform a sensitivity analysis and then to present their findings to the entire class
Working to Fix the ProblemAt this point although you may agree with us that therersquos a competency crisis within the accounting profession you may be wondering What does this have to do with me What can my organisation do to help address this so-called competency crisis The answer a lot Practice partners and academic partners can help the accounting profession overcome the competency crisis That said letrsquos take a closer look at the role of practice partners first
improvement) and accounting competencies (external reporting and analysis planning analysis and control taxation compliance and planning information systems assurance and internal control and professional values ethics and attitudes) Of critical importance to the framework is the assumption that the set of competencies contained in Figure 1 would be developed and integrated over time through a blend of formal education (including continuing education) training and job experience
What levels of integrationmdashon the road to developing integrated thinkers in accountingmdashare possible First accounting educators can integrate within a single accounting competency So referring back to our capital budgeting discussion teaching computational models such as NPV analysis coupled with a review of various behavioural issues associated with capital investment decisions would be an example of integrating within the Planning Analysis and Control competency listed in Figure 1
Second professors can integrate across accounting competencies For example
a recently published article that contains a proposed framework for accounting education reproduced here as Figure 1 The framework is general in the sense that itrsquos meant to apply to all accounting students not subgroups based on career specialisation such as tax assurance services corporate finance and the like Itrsquos based on the idea that accounting educators can better prepare students to deliver our professionrsquos EPM value proposition through integrated competency-oriented curricula (For more see ldquoFocusing Accounting Curricula on Studentsrsquo Long-Run Careers Recommendations for an Integrated Competency-Based Framework for Accounting Educationrdquo in the May 2014 edition of Issues in Accounting Education)
A glance at Figure 1 reveals three levels of competencies foundational competencies (communication ability to leverage technology and analytical thinking and problem solving among others) broad management competencies (including leadership ethics and social responsibility and process management and
Proposed Competencies-based Framework for Accounting Education
FOUNDATIONALCOMPETENCIES
ACCOUNTING COMPETENCIES
BROAD MANAGEMENT COMPETENCIES
leadership
ExternalReportingamp Analysis
PlanningAnalysis
amp Control
TaxationComplianceamp Planning
InformationSystems
Assuranceamp InternalControl
ProfessionalValues Ethics
amp Attitudes
Communication
Quantitative
Interpersonal
Technological
Analytical Thinking ampProblem Solving
Ethics amp SocialResponsibility
ProcessManagement ampImprovement
GovernanceRisk amp
Compliance
AdditionalCore BusinessCompetencies
Although you may agree with us that therersquos a competency crisis within the account-ing profes-sion you may bewondering What does this haveto do with me
A practice partner should be or become a CMAreg (Certified Management Accountant) maintain professional certification by completing required Continuing Professional Education (CPE) hours and regularly read the IMA publications Strategic Finance and Management Accounting Quarterly
In addition there are a number of excellent resources that deal with topics covered in this article and that IMA makes available to its members
Strategic Finance PowerPacks(wwwimanetorg SFPowerPacks) These are resources focused on contemporary topics similar to those discussed earlier Current offerings include Risk Management Strategic Planning IT Skills amp Software and Internal Controls Each PowerPack includes a combination of resources such as research studies articles and links to webinars
Statements on Management Accounting (SMAs)(wwwimanetorgresources and_publicationsresearch_ studies_resourcesstatements on_management_accounting aspx) SMAs represent monographs classified into one of the following six categories Leadership Strategies and Ethics Technology Enablement Strategic Cost Management Business Performance Management Finance Governance Risk and Compliance and the Practice of Management Accounting Multiple items are available within each category For example the Practice of Management Accounting category includes (among other items)
49wwwthecfomecom
the Definition of Management Accounting and Implementing Shared Service Centres
Research Studies (wwwimanetorgresources_and_publicationsResearch_Studies_and_ResourcesAll_reportsaspx) The ldquoThoughtLeadershiprdquo section of IMArsquos website includes research covering a broad range of issues classified into seven categories For example under the ldquoGlobal Business Environmentrdquo category the following two research reports are available ldquoKey Differences Between IFRS and US GAAP Impact on Financial Reportingrdquo and ldquoCosting Methodologies and Cost Management Practices in the Peoplersquos Republic of Chinardquo
IMA Leadership Academy (www imanetorgprograms_events leadership_academyaspx) As described on the IMA website this programme is designed to assess a memberrsquos leadership status enhance that individualrsquos skills (principally through monthly webinars) and recognise leadership achievements These benefits are free to members
How You Can Make a Bigger Impact In addition to attending local regional and national IMA meetings consider inviting a small group of students to each chapter meeting This could be a wonderful (and relatively low-cost) option for mentoring aspiring accountants and finance professionals providing networking opportunities and introducing students to cutting-edge issues regarding the practice of management accounting Joining a university accounting
advisory group may be another way to influence the development of EPM in that institutionrsquos curriculum design
Other methods to enhance EPM in your organisation include (1) forming user groups within your company your local IMA chapter or your industry to review and share EPM experiences (2) encouraging advancement in the firm to be linked to EPM proficiency (3) focusing your companyrsquos recruiting efforts on candidates who display a background in andor understanding of EPM and (4) organising cross training within your company to enhance a mutual understanding of each otherrsquos respective roles
Finally visit the Competency CrisisTM website (http competencycrisisorg) set up by IMA to unite the accounting and finance constituencies professionals students employers academics and professorsmdashand explore competency issues through the lens of each stakeholder group The site is designed to ldquoencourage a discourse spur action and create a community dedicated to resolving the serious crisis of competency present in the professionrdquo Special sections of the website are devoted to educators students and employers professionals
Our Partners in Education Much like a practice partner an academic partner should be or become a CMA maintain professional accreditation by completing CPE hours and regularly read IMArsquos publications
Academic members of IMA can pursue and actively promote the CMA programme at their respective institutions
50 wwwthecfomecom
IMArsquos website contains helpful resources including an exam content overview content specification outlines for each of the two parts of the CMA exam and learning outcome statements The current exam covers some of the professional competencies represented in Figure 1 A summary of changes to exam content which will be effective in January 2015 is provided on the IMA website in News amp Media Relations which is located under ldquoAbout IMArdquo (See the press release dated March 24 2014) Other helpful resources include ldquoICMA Announces CMA Exam Content Changesrdquo in the April 2014 issue of Strategic Finance as well as ldquoManagement Accounting Career Readiness Shaping YOUR Curriculumrdquo
These forthcoming changes are based on the most recent IMA study of the knowledge and skills needed by management accountants from the view of CFOs controllers and other accountingfinance professionals from around the world
Also consider taking a group of your students to the IMA Student Leadership Conference held each November The Conference provides excellent networking opportunities for you your students and practicing professionals Students can learn firsthand from Conference presenters the challenges and opportunities facing finance and accounting professionals today
Moreover if your institution doesnrsquot currently have an IMA Student Chapter consider forming one One of the authors of this article David Stout reinstituted the student chapter at his school (Youngstown State University) after travelling with a group of his students to the IMA
Student Leadership Conference in Cleveland Ohio Through an IMA Student Chapter on campus students are able to work closely with a sponsoring local IMA chapter and bring to campus speakers who are experts in a wide range of topics including those discussed earlier in this article Each year student chapters compete for an Award of Excellence (AOE) and recognition as an Outstanding Student Chapter In addition IMA student members are able to engage in networking activities leadership training mentoring and community service programmesmdashall through their local chapter
You also might consider volunteering to serve as a Campus Advocate In this role yoursquoll represent IMA in all major matters of interest to your students (scholarship opportunities starting a student chapter mentoring and the like) and to your institution (for example leveraging IMA resources to advance the relevancy of the accounting curriculum use of educational case studies published in the IMA Educational Case Journal and access to IMArsquos ethics curriculum)
And if you havenrsquot yet done this ask IMA to endorse your accounting programme (information is available at www imanetorgeducator_resources indexaspx) This programme is designed to identify business curricula that meet the quality educational standards required to prepare students to earn the CMA designation Endorsement is based on an analysis of the curriculum and topics covered on the two-part CMA exam Currently 12 programmes have been endorsed
Finally if your school has an IMA Student Chapter consider participating in the annual IMA Student Case Competition where students are asked to propose a solution to a real world problem (Cases are solicited each year by Raef Lawson IMA VP of Research and Policy and IMA Professor in-Residence) Finalists make their presentations at IMArsquos Annual Conference amp Exposition before a set of judges consisting of accounting faculty members and practitioners Each year a new case is published in the August issue of Strategic Finance for students to use for that yearrsquos competition
Working TogetherIn this article we have summarised the changes that have affected the accounting profession and provided a competencies-based framework for guiding accounting educators in responding productively to those changes As a management accountant you know that implementing change in any organisation let alone within an entire profession never comes easily To be successful in overcoming our professionrsquos competency crisis IMArsquos practice and academic partners will need to assume leadership roles in defining enterprise performance management as the cornerstone of the accounting professionrsquos value proposition
This article was orginally published in the August 2014 issue of Strategic Finance It appears here with the permission of The Association of Accountants and financial professionals in Business
We need to educate ourselvesand future generations of account-ants so that as a collec-tive group we can deliver theexpanding set of com-petenciesdemanded in todayrsquos dynamicorgani-sational contexts
THE POWERFUL AND THRIFTY OFFICE ALL-ROUNDERS
The new ECOSYS M3560idn series will astound you With their print speeds of up to 60 pages per minute they are among the most productive A4 bw multifunctionals on the market We nevertheless managed to keep their ecological footprint and total cost of ownership impressively low by using our well-known ECOSYS technology and equipping the devices with our renowned long-life components The result Not only less waste and lower maintenance costs but also less hassle for you and all your colleagues You will also greatly appreciate the many customisation possibilities of the devices equipped with KYOCERArsquos open solution platform HyPAStrade as it allows you to tailor the device to your needs So yes we are proud of our new range of MFPs and can hardly wait to share their numerous benefits with you
For more information please contactKYOCERA Document Solutions Middle East | PB Box 500817 DubaiUAE | Tel +9714 4330 412 | Fax +9714 4231 944KYOCERA Document Solutions Europe BV - wwwkyoceradocumentsolutionseuKYOCERA Document Solutions Inc - wwwkyoceradocumentsolutionscom
52
ACCAINTERVIEW
wwwthecfomecom
GLOBAL By ASSOCIATION
across the region from our key employers and learning provider partners to our active and growing student and member base I want to understand their challenges and priorities and how ACCA can work with them to help support the economic success of the region
What can a CFO gain from working with ACCAThe ACCA qualification is about complete finance professionals For CFOs it brings the technical knowledge vital to business success complemented with the strategic management skills and ethical competence crucial to an organisationrsquos success As an organization ACCA in the UAE brings CFOs access to that local and global network of peers and expertise along with our leading research and insights that help them to keep up to date on the issues that matter most
Are there any initiatives in place to leverage the recently announced partnership with AAA
How are the ACCArsquos many years of activity being applied to the Middle EastACCA has now had a presence in the UAE for well over a decade During that time we have established strong relationships across the Middle East epitomised by the recent signing of our Strategic Partnership with AAA As a national body in choosing to partner with ACCA they recognised the local and global perspective we bring We are continuing to work with students members and employers across the Middle East to build their networks knowledge and business success through events research and insights and access to a growing number of online resources
Which initial priorities are among your key aims upon joining the organisationrsquos efforts in the UAEIn the first few months I hope to build on the success of the team in the UAE My priority will be to meet as many of our key stakeholders
The Association for Chartered Certified Accountants (ACCA) provides its services across a number of international borders The recent announcement of Lindsay Degouve de Nuncques as the new head of the Associationrsquos UAE chapter further exemplifies the ACCArsquos reach based on her previous work in the UK Nuncques shares here what she brings to the Middle East and just how globalisation has driven her ascent
53
ACCAINTERVIEW
wwwthecfomecom
The strategic partnership with AAA is the first of its kind in the region Students who complete the UAECA qualification will be entitled to both the AAA and ACCA designations and ACCA members in the UAE will also be eligible to apply for AAA membership This is a very exciting development in the market and together AAA and ACCA will be working to deliver maximum value to all our stakeholders from this partnership As we launch the UAECA qualification this activity will start in earnest
Which key industries will you be spotlighting in the Middle East in the months aheadOur experience of working across all sectors and levels of organisations globally gives ACCA a unique insight into all types of industries We will continue to be working with employers across the spectrum in the months ahead to help them gain the insight and make the connections that drive businesses to succeed at whatever they do
ldquoThe ACCA qualification is about complete finance professionals For CFOs it brings the technical knowledge vital to business success complemented with the strategic management skillsrdquo
54
Islamic FinanceMARKET OUTLOOK
wwwthecfomecom
In its 10th instalment the Forum is hosted in Dubai as a direct result of the UAErsquos increasing importance in the world of global Islamic finance
THE WORLD ISLAmIC ECONOmIC FORUm LANDS IN DUBAI
In Dubairsquos continued quest for leading the world across a range of spectrums the Emirate accelerated its desire to become the worldrsquos leading hub for Islamic finance by hosting the 10th installment of the World Islamic Economic Forum (WIEF) Delegates from dozens of countries attended to take part in a three-day event held at Madinat Jumeirah which rests alongside Dubairsquos gleaming coastline Held under the patronage of His Highness Sheikh Mohammed Bin Rashid Al Maktoum the
Vice President and Prime Minister of the UAE and Ruler of Dubai key speakers included The Honorary Dr Zeti Akhtar Aziz Governor of the Central Bank of Malaysia HE Kairat Kelimbetov Governor of the National Bank of Kazakhstan The Honorary Datorsquo Sri Mohd Najib Tun Abdul Razal Prime Minister of Malaysia and HE Xavier Bettel Prime Minister of the Grand Duchy of Luxembourg
Launched in 2006 in Malaysia WIEF has grown in tandem with the increased
Delegates from dozens of countries attended WIEF to take part in the three-day event
sophistication and reach of Islamic finance After a successful event in London in 2013 amidst increased interest in Islamic finance across Europe WIEF relocated to Dubai where the local business structure is keen to host halal finance
Said Hamad Buamim President and CEO Dubai Chamber of Commerce and Industry co-organisers of the event ldquo[The forum] is the start of a new chapter of cooperation between Dubai and the world as part of
55
Islamic FinanceMARKET OUTLOOK
wwwthecfomecom
Dubai Capital of Islamic Economy visionhellipestablishing a unified regulatory authority to provide the framework for standards across halal industries will significantly accelerate growth Likewise we need to see increased cooperation and partnership between the public and private sectors This is already happening with great success here in Dubairdquo
The order of global cooperation needed to facilitate growth across the Islamic finance world was more than apparent at WIEF based on how many differing nations were represented at the event The exhibitorrsquos hall was populated with a number of key Malaysian stands representative of the Southeast Asianrsquos ranking as the global leader in Islamic finance Also present were companies from Saudi Arabia also a key locality in the worldrsquos halal industries An interesting yet prescient presence was of attendees from South Korea a nation which is eager to participate in Islamic finance and will be hosting the WIEF Pyeongchang Roundtable in December 2014
ldquoGangwon is a province located in Korea which is very interested in new business opportunities Wersquove realised the strength of the Islamic economy and have come here with many different companies The first type is based in real estate investment We also have companies which want to export their products to the Islamic economy based on their halal qualities And Gangwon will also be hosting the Winter
ldquoKorea is very interested in the strength of the Islamic economy and wants to export its products based on their halal qualitiesrdquo
56 wwwthecfomecom
$247trillionProjected value of halal products industry in lsquo18
125Muslim percentage of global tourism expenditure
STAT FACTSOlympics in 2018 and are presently seeking investments for this as wellrdquo said Seong-hun Kim a member of Gangwon Province Governmentrsquos Export Support Team
Dubai proved to be an excellent place for the event considering how well the UAE is able to so regularly corral international cooperation A key sign of this was witnessed recently when Luxembourg now considered the third most important base for Islamic finance globally opened a finance office in Dubai International Finance Centre The European nation also opened a euro200 sukuk earlier this year which was quickly oversubscribed
The prime minister of Luxembourg offered the WIEF audience a riveting speech which detailed just how international the Forum has become whilst encouraging more of the world to support the growing influence of Islamic finance
Said Bettel ldquoWe need to innovate more economic partnerships for growth We sometimes need to reengineer relationships but also have to make sure these relationships remain sustainable Growth in one country also brings growth to others as long as this is guided by free market initiatives Free trade and free flow of capital combined with innovation leads to prosperity We have all gathered here in Dubai to explore the future of Islamic finance and Luxembourg is also a pioneer of Islamic finance in Europe The Islamic financial sector has a major role to play in continued global growthrdquo
The Islamic Corporation for the Development of the Private Sector (ICD) is based in the Kingdom of Saudi Arabia where it manages an international fund worth $2 billion half of which is available for subscription With shareholders in more than 50 countries and a sovereign sukuk fund recently launched in West Africa the ICDrsquos CEO Khaled M Al Aboodi attended WIEF this year excited to participate in the global event
How does the ICD approach its attendance at the World Islamic Economic ForumI think the Forum is one of the best places for discussing the financial issues of the OEC member countries It has been around for ten years and has grown to become a very important platform for discussion Wersquore here to attend and listen but also to network Itrsquos a great networking platform and a place to share views whilst letting everyone know what we have to offer
How has Islamic finance changed over the yearsOf course itrsquos growing in a large scale Some of it actually needs more support particularly with respect to regulatory frameworks Wersquore trying to partner with many international organisations like the IMF to try to provide support to countries to adapt regulation for Islamic finance Sukuk issuance is one of the biggest issues that needs to be addressed because there is a huge amount of liquidity in this arena Due to issues related to regulation sukuk issuance can be costly But with the regulation we are confident it will be on a level playing field with other forms of finance Compliance is a major area where more work can be done The Forum started with a roundtable on sukuk which shows how helpful WIEF has been over the years
What type of work does ICD do internationallyICD helped the government of Senegal to issue the first sovereign sukuk This was successfully issued last summer Progressing in this manner is something wersquod like to see continue across West Africa in order to utilise its resources with aiding development in the region in mind
QampA WITH KHALED M AL ABOODI CEO OF ICD
Islamic FinanceMARKET OUTLOOK
OFFICIAL SPONSORS
ENDORSED BY OFFICIAL HOST OFFICIAL
COMMUNICATIONS PARTNER
MEYDAN HOTEL DUBAI UAE19 - 20 NOVEMBER 2014
WOMENOMICSthe next emerging market
TAKE PART in making change happen UNITE with business and through leaders from across the globe
PARTICIPATE to the expansion of a modern and inclusive economy
58
Gautam PradhanINTERVIEW
wwwthecfomecom
SUCCESS BEyOND BOUNDARIES
in other management roles such as strategic decision making mentoring and leading efficiency and productivity across a range of other departments and functions as well as a being a catalyst in ensuring that the boardrsquos vision for the organisation is achieved
A significant percentage of NMDCrsquos shares are owned publicly Does the CFO play a role in balancing the interests of the shareholdersAs a CFO balancing the shareholdersrsquo interests is definitely part of my responsibility In order to achieve this goal there needs to be a careful evaluation of each decision while keeping the short-term and long-term goals of the company in mind At NMDC we actively implement a system where we utilise a balance scorecard as a method of ensuring that all our primary objectives are met yet at the same time continuously enhance our relationships with our shareholders
NMDC has completed various projects across the Emirates Are there plans to move abroadAs NMDC moves towards becoming an international player our strategic expansion plans are focused in areas within the GCC region and India In line with this strategy we opened
How has a company with such a unique set of deliverables grown so consistently over the yearsOur organisation strongly believes that the core to our strength is the people process and equipment A strategic decision led by our Board of Directors and the senior management has been implemented that required us to consistently invest in these three aspects to help expand our business beyond the territorial boundaries of the UAE and at the same time enhance what we can offer which is relevant to these segments We attribute our success to the efforts which every employee contributes We also strongly believe in the ldquoWe can make it happenrdquo principle The management raises the index of performance while setting SMART objectives within the organisation and encouraging the employees to achieve them
How has your position as the CFO changed over NMDCrsquos 35 years of operationAs the market evolves and business dynamics change my role as the CFO has become complex and more challenging A few years back I was mainly focused on bookkeeping accounting and other financial responsibilities such as arranging bank facilities But moving forward I became more involved
The UAE is progressively becoming a hub for world-class infrastructure The country has duly impressed the rest of the globe with noteworthy land developments showcased across the emirates Among the remarkable landscapes found in Abu Dhabi are the Corniche Beach Yas Island and Sir Baniyas Island Behind these successful projects is NMDC the dredging division of Abu Dhabi National Oil Company (ADNOC)
In an interview with CFO Magazine Gautam Pradhan Chief Financial Officer NMDC shares an exclusive look into the companyrsquos international blueprint for growth and his dynamic role as a strategic leader of one of the best in dredging and marine construction in the Middle East
59
Gautam PradhanINTERVIEW
wwwthecfomecom
branches in Qatar Bahrain Oman and India This has paid rich dividends recently as projects of strategic importance are bagged in Qatar and Bahrain Furthermore NMDC (UAE) has recently played a key role as a leader of an international consortium with Royal Boskalis Westminister (Netherlands) and Jan De Nul Group (Belgium) for the awarding of the Suez Canal Dredging project in Egypt Moving forward we have devised a strategic approach that will enable us to play a key role in the development of Indiarsquos marine infrastructure
What are the global strategies that are part of the CFOrsquos responsibilitiesAs CFO understanding the macro economic scenario risk analysis and mitigating those risks are all a part of my responsibilities I also have to have a proper comprehension
ldquoA few years back I was mainly focused on financial responsibilities moving forward I became more involved in strategic decision making mentoring and leading productivityrdquo
Gautam PradhanINTERVIEW
60 wwwthecfomecom
of the challenges faced by the company in terms of dealing with foreign contracts direct and indirect taxes and hedging and managing the integration process These are essential to enhance shareholders wealth and mitigate undue risk
How significant is accountancy for NMDC in its operations Why exactlyAccountancy is the lifeline of any company it does not only record the finances it also reflects the health of the organisation The MIS reports analysis trends and statistical information go a long way toward effectively providing
the diagnostic approach essential for the company
How have NMDCrsquos environmental activities helped the companyrsquos bottom lineNMDCrsquos work is well-synchronised with our environmental activities and specifically with nature Our activities are closely linked to sand and water and we view such activities with strategic importance Projects such as increasing water supply to mangroves and beach nourishment help us support the environmental activities while adding to our bottom line
ldquoAccountancy is the lifeline of any company it does not only record the finances it also reflects the health of the organisationrdquo
A burgeoning slice of Abu Dhabi coastline
The largest business awards
in the GCC30th November Dubai
nominate now at wwwstarsofbusinessawardscom
Stars of Business has become an iconic awards brand like no other in the region It recognizes the very best SMEs across 26 business categories Itrsquos universally respected as scientifically assessed and unimpeachably judged
327000 SMEs across the UAE$234 billion estimated total revenue of the SME sector4974 Awards entries in 20131856 Individual company applicants
Presenting Partner Strategic SME Partner Gold Sponsor Gold Sponsor VIP Hospitality Partner Supporting Partner
Trade Facilitator PartnerTrade Credit PartnerLogistics Partner
Institutional Partner Institutional Partner Event Partner
OrganiserPublisherMedia Partner Media PartnerPort Authority Partner
62
David Allen INTERVIEW
wwwthecfomecom
What went into completing your bestseller ndash Getting Things Done (GTD)After twenty years of researching developing and implementing a methodology for achieving stress-free productivity based upon
thousands of hours spent desk-side with
some of the best brightest and busiest people in the world I decided to write the manual for it Thatrsquos what Getting Things Done is
What are the five phases of mastering workflowIn order to get
any situation under control so
you can focus you will utilise these five
steps Whether yoursquore managing your kitchen
or your company you will need to collect and capture what has your attention clarify what if anything to do about it organise it according to what it means to you review and reflect upon it in relation to
Todayrsquos evolving CFO is often caught between the world of business set-up generating revenue managing employees and building strong company infrastructure When can things actually get done What can one do to boost productivity and master workflow World-renowned business coach David Allen has the answers
PRODUCTIvITy PRINCIPLES WITH
DAvID ALLEN
63
David Allen INTERVIEW
wwwthecfomecom
those are greatly subvertedHow does one maintain a fair balance between the time spent planning and actually getting things doneYou simply need to spend just the amount of time you need to to trust that what you are getting done is the right thing to be getting done in the moment It takes as long as it takes to get to that point Why would you do anything less
How can one apply your core productivity and workflow principles to todayrsquos technologically driven environmentThe principles and their techniques are system-independent Whether you have meaningful input from the Internet your smartphone or a conversation in the hall you must engage with it equally Technology has simply increased the flow of input and ease of distraction in your world
There is a lot of talk about how connected wersquove become and how connectivity is driving tremendous business growth Does connectivity actually come with its fair share of downsides
Connectivity is obviously a two-edged sword We can have intimate productive and creative interaction instantly with someone on the other side of the world and we can just as easily be distracted and seduced into those engagements when they may not be the best use of our attention and resources Donrsquot shoot the medium Itrsquos all simply bringing attention to your clarity of direction and priorities or lack thereof
Could you share a few quick tips with our readers to instantly boost productivityWrite everything down that has your attention Decide the very next actions required to get closure on all of them Any next actions that require less than two minutes do instantly Park reminders of everything else somewhere that yoursquoll see when you can do something about them
We are currently facing a massive information overload What are some basic principles you could suggest to mentally organise such large amounts of dataConstantly ask yourself Where am I going Whatrsquos important and rewarding to me Is this information
the whole and then engage your resources with intuitive trust
As a CFO how can you transfer efficient workflow management skills to your employees Itrsquos very difficult to legislate processes for individuals ndash you can really only hold them accountable for their results But if you are managing your own commitments and intersections with them with integrity and rigour it will automatically force your team to ldquostep up to the platerdquo in their own behaviours in order to meet your standards If you request their complete list of their company projects and they canrsquot produce it thatrsquos a sign theyrsquore not in control If they make a commitment to you that they havenrsquot kept thatrsquos data about their performance GTD is simply about good operational business practices
With so many planning and organising activities in your methodology is there a risk of losing spontaneity as a strategistThe reason for these best practices is to optimise freedom creativity and spontaneity Without them
ldquoBut if you are manag-ing your own com-mitments and intersec-tions with them with integrity and rigour it will automatical-ly force them to ldquostep up to the platerdquo in their own behaviours in order to meet your standardsrdquo
64 wwwthecfomecom
supporting that Park whatever you find potentially meaningful somewhere that is easy to access when needed
Being an entrepreneur is a non-stop job How do you ensure that you have an adequate work-life balance Pay attention to what has your attentionmdashwith regard to anything Your health relationships career finances etc Notice when something might be ldquooffrdquo and make good decisions about what you need to do to get it back ldquoonrdquo again
Does your work teach people to be efficient or effective In essence they are the same thing Effective choices are generated by efficiency on a higher level If you want to implement strategy most effectively it demands utilising your resources optimally which is efficiency
Does motivation actually improve quality of work or purely quantityDepends on the focus of the motivation You can be motivated to work harder and you can be motivated to work smarter
What is your favourite productivity mantra that
you implement in your day-to-day lifeUsing my own in-basket and note-taking devices to capture potentially meaningful and valuable ideas and soon afterwards clearing all of them out by deciding what to do about them if anything
Your books seminars and other work inspires many individuals and businesses Who is your personal inspiration or role model I have many about many different aspects of my life The only person though that I ultimately trust as my best guide is my higher self which I try to access as frequently and clearly as I can
Finally what advice would you give to current business owners and aspiring entrepreneurs looking to gain complete control of their life and businessCapture what has your attention clarify what you need to do about it to get it off your mind organise the inventory of all your commitments at all levels review and reflect on all of that regularly relax and trust your inner wisdom to engage with the most appropriate thing in the moment
ldquoIf you want to implement strategy most effectively it demands utilising your resources optimallyrdquo
David Allen INTERVIEW
APPSTECH TALK
wwwthecfomecom 65
mAxImISE BUSINESS lsquoON-THE-GOrsquo WITH THESE HANDy APPS
ipAd SpECIAL
SAMSUNG UNvEILS GALAxY NOTE EDGE
Network
AP
Display
OS
Camera
Video
Audio
Additional Features
GoogleMobile Services
Connectivity
Sensor
Memory
Dimension
Battery
The availability of service may differ by country All functionality features specifications and other product information provided in this document including but not limited to the benefits design pricing components performance availability and capabilities of the product are subject to change without notice or obligation
Samsung Galaxy Note Edge Product Specifications
25G (GSM GPRS EDGE) 850 900 1800 1900 MHz3G (HSPA + 42Mbps) 850 900 1900 2100 MHz4G (LTE Cat 4 15050Mbps) or 4G(LTE Cat 6 30050Mbps)May differ by country and carrier
27 GHz Quad-Core Processor
56 inch (1419mm) Quad HD+ Super AMOLED (2560 x 1440 + 160)
Android 44 (KitKat)
Rear Facing 16 Mega pixel Auto Focus camera with Smart OISFront Facing 37 Mega pixel camera with f19Rear Facing Camera HDR (Rich tone) Selective Focus Rear-cam Selfie Beauty face Virtual Tour Shot ShotampMore Dual CameraFront Facing Camera Selfie Wide Selfie
Codec H264 MPEG-4 H263 VC-1 WMV7 WMV8 Sorenson Spark MP43 VP8 Recording amp Playback up to UHD
Codec MP3 AACAAC+eAAC+ WMA AMR-NBWB Vorbis FLAC()() Ultra High Quality Audio (~192KHz 24 bit) support
Multi WindowUltra Power Saving ModeVoice Recorder (Normal Mode Interview Mode Meeting Mode Voice Memo)Download BoosterS Health 35Dynamic Lock ScreenBriefingEdge screen UX Revolving Interaction Immersive apps(Camera Video S Note)Ticker board Express me Quick Tools Night Clock etc
Chrome Drive Photos Gmail Google Google+ Google Settings Hangouts Maps Play Books Play Games Play Newsstand Play Movie amp TV Play Music Play Store Voice Search YouTube
WiFi 80211 abgnac (HT80) MIMO PCIeGPS GLONASS BeidouNFC Bluetoothreg v 41 (BLE ANT+)IR LED (Remote Control) USB20 MHL 30
Gesture Accelerometer Geo-magnetic Gyroscope RGB IR-LEDProximity Barometer Hall Sensor Finger Scanner UV Heart Rate Monitoring SpO2 (Dependent on market)
32 64 GB Internal memory + microSD slot (up to 128GB)3GB RAM
1513 x 824 x 83mm 174g
Standard battery Li-ion 3000 mAh Fast Charging (Adaptive Fast Charging amp QC20)
wwwthecfomecom66
APPSTECH TALK
AIR DISPLAY
SQUARE REGISTER
Using this app you can connect your iPad to your computer and use it as an additional screen While working on an important presentation or sales proposal you can extend or mirror your computer screen on your iPad This app is compatible with both Mac and Windows computers Note that to use this feature you have to install Air Display on your iPad and a separate free app on your computer The computer and iPad also need to be on the same Wi-Fi network in order to work in-sync
For Mac users the app allows you to connect to up to four screens ndash all at the same time
Apart from the ability to convert your iPad into a wireless display whatrsquos also attractive about this app is that it allows you to control your computer wirelessly using your iPad
This fantastic application can serve as a mobile point of sale for your business It allows you to accept credit card payments ndash including Visa MasterCard Discover and American Express A transaction fee of 275 is charged for every time you swipe a card The sale amount is transferred to your account within two working days
Once you download the app you can sign up and register for a unique card reader solution called the lsquoSquare Readerrsquo (this is free) Square Reader encrypts all card details and ensures that the transaction is secure Once you receive your Square Reader you can connect it to your device and are all set
The application also offers added features such as transaction history connecting to a receipt printer creating employee logins and more
AED 3699
PRICE
Free
PRICE
wwwthecfomecom 67
APPSTECH TALK
DOCUSIGNHave you ever been in a situation where your employees need you to urgently sign a contract but arenrsquot able to physically reach you in time DocuSign solves this problem with its easy-to-use eSignature feature In three easy steps you can sign important documents and securely send them to your intended recipient
First you have to import the document to your device ndash this could be from Dropbox Google Drive or another select applications You then place your signature or any other important legal information you need to include such as initials Once you have finished working on the document send it back via e-mail
Whatrsquos particularly great about DocuSign is the great emphasis it puts on security ndash so that users donrsquot have to worry about getting into any legal trouble
Use DocuSign and never miss a deadline again
Free for basic version
PRICE
MPAYAn initiative by the Dubai eGovernment Department mPay is a simple application that allows you to make important payments Once yoursquove signed up and entered your payment details you are good to go You can pay your Dubai Electricity and Water Authority (DEWA) bills Etisalat utility bills Dubai Police fines Recharge SALIK and much more
A handy feature is its lsquoauto-rechargersquo option which you can use to set automatic payments
Free
PRICE
Opinion CIMAPERSONALITIES
wwwthecfomecom68
NEW HORIZONSBy geetu Ahuja Head of gCC at CIMA
The days of the traditional accountant working within a small community in a small town in a small market have long gone CFOs are now being referred to as Chief Frontier Officers as they travel from market to market overseeing their offices overseas This new expanded role has distinct advantages for both the company and the CFO who gain new skills and new insights from foreign branches a single hand at the helm of many markets provides business perspectives on a global scale and benchmarks across the board
On a personal level working abroad also has huge importance Robert Walters the specialist professional recruitment consultancy recently conducted a survey
of almost 2200 employees across a variety of professions exploring a number of topics which ranged from working practices and attitudes to careers The results highlighted some notable trends particularly for finance professionals
In career progression for example the survey showed that 50 of all accountants see working abroad as either lsquoessentialrsquo or lsquoextremely usefulrsquo to furthering their prospects more than banking professionals lawyers and IT workers ndash a strong indication of how accounting professionals are thinking about their future either within their existing company or with opportunities elsewhere
Accountants with globally recognised qualifications obviously have a greater chance of gaining some experience abroad and the lsquoGen Yrsquo professionals in particular seem ready to pack their bags In a CIMA study conducted in the UK last year over a third of those seeking employment in the
next two years will prioritise opportunities abroad over those in their home countries many of them enticed by the career incentives offered by the Middle East
How quickly can they land what seems to be their dream job What are the realities It may be that the move is simply from one branch to another and the only significant difference is a view from the window but for those expanding rather than changing their roles we have seen a very real need for a depth and breadth of knowledge never needed before
As geographical boundaries are pushed ever-wider a CFOrsquos responsibilities are pushed with them For many finance executives the understanding of their own patch of land is no longer enough they now have to be aware of foreign markets up to speed with foreign trends and au fait with foreign laws There is a need for a new commercial awareness in geography as well as philosophy
As geographical boundaries are pushed ever-wider a CFOrsquos responsibilities are pushed with them
John vargheseQampA
wwwthecfomecom 69
BUSINESSSET UP YOUR
IN THE UNITED ARAB EMIRATES
TO
WAREHOUSESOFFICES INDUSTRIAL LANDFLEXI
Quick and easy company set-up
Less than an hour drive from Dubai
Complete cost-effective packages including licences and facilities
100 foreign ownership
Zero income and corporate taxes
Eligibility for UAE Residence Visa
BUSINESS SET-UP SOLUTIONS STARTING FROM AED 15000 (USD 4000)
RAK FREE TRADE ZONE PROVIDES
RAK Free Trade Zone Authority - Government of Ras Al KhaimahUAE (Ras Al Khaimah) Tel +971 7 2041111 (Dubai) Tel +971 4 7041875 (Abu Dhabi) Tel +971 2 6994888
Germany (Cologne) - Turkey (Istanbul) - India (Mumbai)
Call +971 7 204 1111 Visit wwwrakftzcom Join rakftz
PROCUREMENTANALyTICS
wwwthecfomecom22
Return on Supply Management Assets (ROSMA) is a pioneering framework launched by AT Kearney after four years of testing one aimed at addressing the aforementioned procurement gaps The performance measurement standard was initiated with an eye on creating a benchmark for the procurement industry and providing a compass to direct investments
ldquoROSMA started in 2010 And it started out with conversations with the CFO There are a group of folks in the company talking about how great their achievements are however
the capital that procurement claims isnrsquot often obvious and can create a disconnect within the companyrdquo said AT Kearney Vice President Federico Mariscotti
This yearrsquos annual report surveyed a number of businesses and arrived at a series of significant findings which outline procurement patternsbull Top-tier companies generate
approximately $16 million in financial return per procurement employee yearly A reported 35 per cent of return derives from applying advanced methods
bull Mid-level performers typically
The first step for compa-nies in the Middle East is to take a good look at what they expect procurement to bring
Leading global management firm AT Kearney recently released a report on the evolving conversation which surrounds procurement A key aspect of the report spells out how much CFOs stand to gain by making more pronounced investments based on utilising procurement in terms of value The relative distance between CFOs and their respective companyrsquos procurement methods is cited as cause for concern
THE NEW LANGUAGE OF PROCUREmENT
generate four to five times of their investment in procurement valuation yet have not exemplified growth since 2011
bull Performers at the lowest level surveyed do not achieve monetary benefits which cover costs
bull The majority of organisations surveyed do not possess the tracking structures needed to analyse procurement performance
bull Regardless of company size or industry procurement
PROCUREMENTANALyTICS
wwwthecfomecom 23
The CFO community has not yet awakened to the value of procurement
performance varies though companies with sophisticated reporting techniques experience less variable performance
The reportrsquos express aim to create a benchmark for procurement follows a wave of process monitoring which found notice in the manufacturing industry in the 1980s supply chain research and engineering in the 1990s and sales and marketing performance being closely tracked in the 2000s
ldquoProcurement costs can represent anything from 20 to 90 of a companyrsquos total cost going from the public sector to consumer goods Yet the productivity of the team that presides over the supply market interactions has a way of explaining their value add using savings that do not add up to the PampL impact measured by finance Savings definitions different baselines and cost avoidance all contribute to a murky aggregate view of the impact on the businessrdquo added Mariscotti
In the Middle East the challenge is fundamental ndash getting the spend data in the first place Companies admit they often do not have a clear categorisation of intelligence lack an agreed definition of savings measurement and generally position procurement as a pre-eminently transactional activity lacking the mandate to contribute value Procurement processes as a result remain centred around purchasing are paper based and lack transparency The first step for companies in the Middle East is to take a good look at what they expect procurement to bring
wwwthecfomecom24
Influencedspend
The inconsequential The brand leaders
Leaning up
Note All three segments start with a common hypothetical spend of 1000 to normalize the case example
Source AT Kearney analysis
Source AT Kearney analysis
TOP QUARTILE
mIDDLE-TIER 50
BOTTOm QUARTILE
704
764
644
522
527
396
42
30
(138) (25)
(63)
19
39
28
15
21
4
3
60
32
18
Sourcedspend
Units of yield
Post-compliance
benefits
Additionalbenefits
Financial results
delivered
19x
17x
middle tier
bottom quartile
TOP-QUARTILE PERFORMERS DELIVER NEARLy TWICE AS MUCH VALUE AS MIDDLE-TIER PLAyERS
THE CFO COMMUNITy HAS NOT yET BEEN ldquoAWAKENEDrdquo TO THE VALUE OF PROCUREMENT
Procurement is not on the radar for those who gave the wrong answers to three essential questions
leadership with accountability for performance is clear but either the measures are not clear or performance is believed to be weak variable or unknown ndash or a mix
leaners and leaders answered all three essential questions correctly and also answered most or all other questions correctly
to the table and how it should support the business To make a steep change companies need to understand the multiple benefits which will occur for investments made once theyrsquove allowed for stronger procurement practices
The benchmarking aspects of ROSMArsquos report speak directly to CFOs based on an existing widespread inability to track and improve this often unquantifiable nature of procurement practices According to the report the CFO community has not yet awakened to the value of procurement and Chief Financial Officers are thus divided into three segments The brand leaders (25) those leaning up (63) the pack (774) and the inconsequential (138)
Said Mariscotti ldquoThis is a way to give procurement a measurable quality that CFOs can quantify You have to know what yoursquore doing with relation to procurement in order to do it well ROSMA gives you a number which helps you understand how good your procurement is working as compared to peers It lets you know whether or not you could be doing something differentrdquo offers Mariscotti
CFOs have exemplified an increasing ability to share in a companyrsquos strategic efforts whilst expand their respective remits Procurement is emerging as the latest segment of this conversation Understanding its value beyond the transactional is the first step for CFOs to fully engage with harnessing the potential of procurement and grow to become a part of the elusively paltry portion of brand leaders indicated in ROSMArsquos report
PROCUREMENTANALyTICS
The pack(774)
Al Sharid is the Vice Chairman of Emirates Transport and has enjoyed a successful career in which the lionrsquos share of his tenure has afforded him a seat at the helm of the business
ldquoI remember when I first received the GM of Tata in the late 80s he said to me lsquoYou are the youngest GM I have ever metrsquo I was 29 years old at the timerdquo Looking at Al Sharidrsquos rapid ascent to the top of his organisation can be mind boggling to the average observer however to those few who strive to push themselves to their limits it is perhaps more common a reality As with any top performer we can often see their desire for results and impact
early on in life and with Saeed the first stride of his race to the top began with an accounting degree in university
It was 1976 and the excitement of the UAErsquos biggest milestone moment its inception just five years earlier still clung to the air from Fujairah to Abu Dhabi and every emirate in between A nation was being built Saeed had just finished high school and went to the United States where he was to study engineering
ldquoI was not yet 18 years old it was 1976 and I was sent to America to study it was the beginning of a dream and a young liferdquo says Al Sharid Unfortunately Al Sharidrsquos academic tour of duty came to
THE EmIRATI DREAm Saeed Al Sharid is today an elder statesman in the world of UAE accountancy With decades of know-how based on chairing a number of key Emirati organisations Al Sharid is today atop his own family firm In the following exclusive interview he shares the importance of education the evolution of a nation and just how being an accountant has driven his many triumphs
an abrupt halt when his father suddenly passed and he was forced to return home ldquoWe are seven brothers and I am the middle one so during tough times we always come together and during this period the strength of my family pulled me through I have three younger brothers and I felt I had to be there for them I felt responsible for them My mother played an omnipotent role in pulling us through this dark moment in our history The death of my father forced us to become more independentrdquo says Al Sharid
Now back in the UAE with his plans of studying abroad dashed Saeed looked at the local schooling system within which Al
26
InterviewPERSONALITIES
wwwthecfomecom
Saeedrsquos desire for results took its first stride with an accounting degree in university
By Shane phillips
27
InterviewPERSONALITIES
wwwthecfomecom
Ain University had just opened ldquoAl Ain University was the pride of the Emirate at the time the students were like celebrities The first batch of graduates were all promised 50000 AED from HRH Sheikh Zayed I was one year late so technically I should not have graduated with the first batch but I was determined I worked an extra course load did summer school and soon caught up to the first class 50000 AED in 1981 was like 5000000 AED today so I was very motivatedrdquo says Al Sharid
Saeed not only caught up with the other students but he wound up graduating atop Al Ain Universityrsquos first class of graduates with a 38 GPA ldquoWe Saeed Al Sharid
28 wwwthecfomecom
to the organisationrdquo he says Saeed first joined Emirates Transport after seeing a small newspaper advertisement for an accountantrsquos position He applied but initially they did not want to hire a local because locals were too expensive After a few months however they called him back for an interview and offered him a job
Initially Saeed struggled to get a promotion or even a raise He worked tirelessly to develop himself and kept detailed notes of his work After nearly two years went by with no promotion he requested to meet with the Chairman of the corporation to discuss his career The Chairman was a Minister making him even more senior than his title implied Al Sharid was courageous and determined ldquoYou should not stay silent you have to take initiative your future is in your handsrdquo says Al Sharid
ldquoI met with the Chairman and told him about my work and what I wanted to do He did not talk he just listened and that was it It was a 15-minute meetingrdquo says Al Sharid Three days after Al Sharidrsquos pivotal appointment he was promoted to Deputy General Manager Directly from a Trainee to DGM skipping all the roles in between at the age of 27 years old They doubled his salary and catapulted him into a senior leadership role
ldquoI felt it was quite strange to move up that fast and personally was not sure I could handle the job I had a lot of resistance from the board I had people in their 50s reporting to me and they were not happy about it So I just took a step back and did not try to get involved in their work too fast I went slow and watched my step This was a very important
ldquoThe UAE was a brand new country and a lot of work was being done to develop the nationrdquo
never had any idea of a career path and there was no such thing as career counsellors or lsquocareer servicesrsquo at the school So when you graduated most people just joined the Ministries The UAE was a brand new country and a lot of work was being done to develop the nation The Federal Government paid the highest and so one just joined them There was no grand vision or dream that I was off and chasing In those times you simply tried to do the next best thing So I ended up working in the Ministry of Health as an accountant Back then a university degree was a veritable qualification and it had a lot of market equity today it wonrsquot even get you in the doorrdquo
As the Middle East market evolves not only are university degrees becoming more common but so are post graduate degrees such as MBAs and even PhDs As such the competitive positioning of professional qualifications are gradually eroding over time
ldquoTo stay competitive executives today will require deep and specialised knowledge of their respective industries an intellectual arbitrage that provides superior results To beat the market to manage the risks to develop a sustained competitive edge For this executives need to stay in a role for the full strategic cycle which is at least four years in durationrdquo says Sharid In the case of Al Sharid he was there for 33 years
ldquoDo you just want a job or are you looking to make a contribution to your company Too many young people today are just looking for a title or a position The difference between those who make it into senior roles and stay there is the desire to create impact to add value
InterviewPERSONALITIES
2012year Moodyrsquos upgraded the UAE economy from developing to emerging
37The UAErsquos global rank for GDP
STAT FACTS
moment for me to gain valuable leadership experience early on To make my learning curve even steeper the General Manager quit after two years and I became the GM at the age of 29 years oldrdquo explains Al Sharid
He ascended to the top job in less than five years and stayed in the position for almost twenty years He was totally committed and could even be found in the bus yard at four in the morning to greet the drivers as they started their shifts ldquoThe key to being successful in business is to keep your finger on the details Some people let the details slip and if this happens you will suffer I get into the yard I meet the drivers I meet all the staff If you saw us you will not know who was the GM or who was the driver You have to realise people will never work for you they will only work with you To me Emirates Transport is like my familyrdquo says Al Sharid
When asked what his keys to success are he says ldquoI think if I was not an accountant I would not be a good leader I would not be a good manager In my opinion trying to do business while not understanding accounting is like getting into the ocean and not knowing how to swim you will drown The Chief Executive Officer who does not know how to create the financial statements is always at the mercy of his Chief Financial Officer He cannot take any big decision on his own and he will not even be able to challenge the CFO Accounting is the bedrock of any business and a critical skill set for any leader No one can argue with this factrdquo says Al Sharid
With over 20 years of experience in tow and the related chairmanships to boot Al Sharid
ldquoTrying to do business while not understanding accounting is like getting into the ocean and not knowing how to swim you will drownrdquo
has since early last year partnered with his family to form Al Sharid Auditing Though the Emirati youth is not as keen to pursue positions related to accountancy as Al Sharid was he feels that there is hope to close the gap
ldquoIt is difficult to find an Emirati expert I studied the audit market specifically and there were others like me then But now you break Emirati auditing involvement into three categories The first involves the big firms This is followed by individual smaller enterprises But thirdly a lot of locals opt to work with the government also Most are not managing their own firms they just have a partnership and they are building thatrdquo Al Sharid explains
ldquoAl Sharid Auditing however is a firm that includes my brother and our two sons which make up a body of qualified professional auditors We established this firm last year and work closely with the government We decided to make one firm together instead of having many smaller entitiesrdquo
Moving forward Al Sharid plans to grow his familyrsquos firm by applying the very belief system which has catapulted him to his position of power Marketing concerns which are designed to furthermore announce how tailored Al Sharidrsquos offerings are at present a key variable to forging ahead
Said Al Sharid ldquoMoving forward wersquore focusing more on the marketing of our firm Itrsquos a matter of not exactly expanding but going over the right deals The market is tough and the small jobs are easy but we donrsquot need them We donrsquot want to be in many rooms we want to be in the important onesrdquo
29wwwthecfomecom
InterviewPERSONALITIES
1UAErsquos rank among GCC nations for chosen hub of all major accountancy bodies
STAT FACTS
Latest insights from PwCrsquos 15th Annual Global CEO Survey revealed that 59 per cent of CEOs see emerging markets as more important than developed markets to their future What is making emerging markets such a pressing priority for C-suite executives Why are emerging markets increasingly grabbing headlines
Emerging markets are large fast-growing and ambitious markets best known for being the growth engines of todayrsquos global economy Research (1) suggests that emerging market countries are expected to amount for more than 60 per cent of global GDP growth ndash a clear indication of the wealth of opportunity they present
Understanding emerging marketsBased on estimates by the International Monetary Fund emerging economies are expected to grow two to three times faster in comparison to developed nations Explaining this fast-growth and the rise of these emerging markets an article on Forbescom details that ldquoduring the US housing crash and resulting credit crisis of 2008 world markets were saved from a total disaster thanks to the big emerging markets ndash mainly Brazil India and China The global credit crisis was one of the longest deepest and most painful in history It toppled Wall Street icons like Lehman
The following report explores emerging markets from West to East which are at the helm of economic development trade and innovation and highlights what their rising popularity means for the growth of your business
Brothers required government bailouts of bulge bracket banks and shocked the global economy with a deep economic recession and even a deeper crisis of confidence Its most important legacy though may be one that has yet to fully unfold the crisis revealed a new world order in terms of economic and market dynamics Emerging market economies finally arrived as
30
Market IntelligenceANALyTICS
wwwthecfomecom
ENTERING EmERGING mARKETS STRATEgIES RISKS ANd OppORTuNITIES
Projected annual GDP growth 2014 amp 2015
PANAMA
67
PERU
RANK42
55
Projected annual GDP growth 2014 amp 2015
Ease of Doing Business
RANK55Ease of Doing
Business
TOP TEN MARKETS
(1) Source here Accenture Research ldquogearing up for growth ndash five imperatives for success in emerging markets 2011 Henry Egan and Armen Ovanessoff
31
Market IntelligenceANALyTICS
wwwthecfomecom
LATVIA
CZECH REP
MALAYSIA
THAILAND
SOUTH KOREA
CHINA
RANK75
41
21
50
45
35
74
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
CHILE
RANK 34
43
Projected annual GDP growth 2014 amp 2015
Ease of Doing Business
RANK 24Ease of Doing
Business
Ease of Doing Business
RANK 6Ease of Doing
Business
RANK18Ease of Doing
Business
RANK 7Ease of Doing
Business
RANK 96Ease of Doing
Business
POLAND
32
RANK45Ease of Doing
Business
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
Source httpwwwbloombergcomnews2014-01-29qatar-china-top-ranking-of-frontier-and-emerging-marketshtml
powerful essential and permanent contributors to global economic growth and sustainabilityrdquo
Bloombergcom recently ranked the top emerging markets based on their performance on 19 economic financial political and social indicators In order of ranking the top ten markets were
CHINA
SOUTH KOREA
MALAYSIA
CHILE
THAILAND
PANAMA
PERU
LATVIA
POLAND
CZECH REP
1 6
2 7
3 84 9
5 10
Market IntelligenceANALyTICS
32 wwwthecfomecom
Making an entryIf your business is looking to enter any of these emerging markets itrsquos worth considering the following checklist
1 Assess your readiness The biggest mistake you can make is to enter a market without proper evaluation of your business Donrsquot do it just because everyone else is Like every other major business decision be sure to speak to your Board of Directors partners investors stakeholders and most importantly your CFO and certified accountants Make a business plan enlisting your objectives goals investment strategy potential risks etc
2 Research research research Do your homework Treat emerging markets as any other international expansion venture and do thorough research on the new market ndash Who are the competitorsWhat is the price point for your product What are the customer demographics What kind of infrastructure do you need for the manufacturing production or distribution of your product
3 Understand the legal framework Emerging markets might not have rules and regulations as clearly spelled out as your home country Invest some time and money in understanding how business procedures work A very obvious area of focus for UAE-based companies is tax Since the UAE is a tax-free economy companies arenrsquot exposed to tax accounting and other legislation surrounding
ndash failing to adapt to the needs and expectations of the local customers is surely a recipe for failure Time and again companies havenrsquot been able to create a customised offer and have had to exit these markets with huge losses A success story however is that of the Haier Group Haier famously introduced washing machines to specifically suit the water pressure levels in the households of India ndash an emerging market strategy that worked very well in their favour and helped them become leaders in that sector Another great example is that of Coca-Cola as explained in an online Reuters article by Matt Reilly ldquoIn Brazil Coca-Cola has used social media to better understand consumer preferences and has developed a successful local network to supply traditional Coca-Cola products as well as fruit juices tailored to local tastesrdquo
7 Local currency This is a complex yet critical area to consider when entering a new market Ask yourself questions such as ndash What is the local currency rate How does it compare to the currency in your home country Is the country import-led or export-led and what impact can this have on the global value of the currency Remember that fluctuations in currency rates can hugely effect your overall investment and thereby the return on investment
8 Build partnerships When entering an unknown territory it is quite useful to have the backing and support of peers who can help you in case of unforeseen challenges This is
this Another area to consider is corruption ndash emerging markets are notorious for high corruption red-tape and bureaucracy Speak to your company lawyer to assess these areas and take proper measures to avoid them before-hand
4 Invest in local talent Working with people already accustomed to the new market avoids the hassle of relocation and reduces costs But more significantly gives you skilled talent to work in these unique environments This also works in favour of your company as it gives you a clear understanding of the kind of compensation packages you will have to offer to your employees For instance employees based in China might want high remuneration and low healthcare benefits while in India it may be quite the reverse Recruiting local talent will also have a trickledown effect ndash your employees will easily be able to cater to the local customer needs without the need for intense training
5 Supply chain 44 per cent of business leaders surveyed consider accessing the right supply chain capabilities extremely or challenging in emerging markets according to Deloittersquos Globalisation Survey Make sure that you know who your suppliers will be what the production costs are whether their production procedures fit your time constraints and if the final product matches your level of quality
6 Cater to local market demands This is one of the most important aspects of all
Do your homework Treat emerg-ing markets as any other internation-al expansion venture
Market IntelligenceANALyTICS
33wwwthecfomecom
the very reason why Mergers and Acquisitions are a popular way to enter into emerging markets Many companies piggyback on their clients who are entering these markets For instance if you are an IT consultancy working on a major project for a manufacturing and trading company with operations across India and China you can use their resources and expertise to explore opportunities in these countries
Remember to consider these steps every time you enter a
new market as every locality has its own set of unique needs One strategy doesnrsquot fit all
Surviving fierce market conditionsWhile the massive opportunity that lies within emerging markets paints a pretty picture businesses need to be wary of bottlenecks such as corruption volatility gaps in laws and regulations and strong competition There have been several high-profile cases of multinational companies withdrawing from emerging
markets owing to immense corruption pressures
There is also a high percentage of inherent risks in these markets which amount to many companies not succeeding in their first attempts It is important to take your time when adapting to these markets and fully understand the business dynamics Following recent case studies and going over the lessons learnt by multinational companies who have made an entry into these markets consider the below
bull Is your companyrsquos head-office ndash and senior management ndash located in your home country without any C-level representation in the new emerging market
bull Are you focusing all of your resources on doing business in the emerging market at the cost of losing profits in your home market
bull Have you researched local competitors in these markets who may already have a strong standing and proven models of success
bull Are you using the same ldquoentry approachrdquo and business model across different emerging markets
If your answer to one or more of these questions is yes it may be time to re-evaluate your presence in these markets and map out a different strategy
Finally remember that no matter what the outcome of your admission to these markets might be your business is sure to emerge out of this stronger tougher and ndash of course ndash ready for a new challenge
of companies believed they had invested more resources in
emerging markets than was required
entered a market without fully assessing the ability of the supply chain to support the expansion
entered with the wrong pricing model and an inappropriate
operating model
CONSIDER THE RISKS
48
24
20
There is also a high percentage of inherent risks take your time when adapt-ing to these markets and fully understand the business dynamics
Source Emerging markets expansion and the supply chain Economist Intelligence unit survey conducted on behalf of EY September 2010
34
CIMA INTERVIEW
wwwthecfomecom
The Chartered Institute of Management Accountantsrsquo (CIMA) Managing Director Andrew Harding visited Dubai to host the Institutersquos seminar on global management accounting principles In the wake of CIMA revising their well heralded syllabus Harding discussed with CFO Magazine what the newest edition held how CIMA is applying a digital focus to its courses and just how CFOs can gain from it all
CURATING CURRICULUm
35
CIMAINTERVIEW
wwwthecfomecom
can give CFOs something they can take and something they can measure their own management accounting services against They can benchmark using this and they can utilise this to see their progress
Part of that is having professional management accountant in place I donrsquot think the landscape matters I believe that there is a common business need wherever you may be around the globe
All of the emerging markets need these skills The first aspect that accounting schools teach is about auditing skills because theyrsquore interested in protecting investments Then they teach you how to keep your business sustainable and to have a sustainable business you need to have a management accountant in place So itrsquos not just here in the UAE where we see these demands we see the same demands in China Indonesia and other powerhouse economies We see their skills shortages and we see the need for solutions in those areas
Talk to me about how this new syllabus works to promote the evolution of a CFOThis syllabus that wersquove
Can you expound on just what can be found within the new CIMA syllabusWe just revised the syllabus we do that every four to five years What we have done this year is a very significant revision It is based from a complex study that we have carried out to over 3000 people from 200 companies globally It is the very first revision since the joint venture with CIMA and AICPA So this has allowed us to attain a syllabus rich with all the data from all the continents in the world For the first time wersquove had real involvement from companies in the USA in this project
Why is the collaboration between AICPA and CIMA significantMost important is the Chartered Global Management Accountant (CGMA) designation that AICPA and CIMA both issue for qualified management accountants Wersquoll have a common curriculum and common examination which will begin on January 1 which gives us a global designation for management accountants wherever they are around the world There are plenty of accounting bodies who claim to be global but actually this is the only
genuinely global designation This is because it has the only one with a North American participation in it So we can say that the CGMA will be just as well-recognised in the USA as it is in Dubai
With the global landscape in mind how do you create an even objective that applies to localities which may prove widely differentialThe landscapes are different but businesses have common needs wherever they may be What wersquove particularly seen since the global financial crisis is that companies are actively looking to build management accountant capability to build that capacity within their organisations They donrsquot want to have a poor quality of information that lacks insight being used in their businesses So they see management accountants can bring solutions to that As a result of all the work wersquove done with companies who participated in the syllabus wersquove also put together a series of what we call Global Accounting Principles This is a series of principles which describes what good management accounting looks like and what top quality management accounting in a company should be producing This then
ldquoCompanies are actively looking to build man-agement accountant capability to build that capacity within their organisa-tionsrdquo
36 wwwthecfomecom
worked on acknowledges the skill set needed by professionals throughout their career Therersquos a base level of competence that is needed but beyond that there is more There is business acumen the ability to communicate and influence and finally the ability to lead So you start off enhancing your raw technical accounting skills Then you need to place that into the context of the business that you are in Then as you move forward and as you rise to become the CFO yoursquoll need the others You have to learn how to present your work in a way that can influence and make an impact in the business The final piece is the ability to lead projects and other functions and to a great extent lead the board of directors Thatrsquos how the context works itrsquos not just about technical knowledge
How do you find that CFOs in the GCC region are responding to this programmeThe CFO has a real challenge on his hands now In 1975 80 per cent of corporate value is showing on the balance sheet By 2010 that dropped to less than 20 per cent Your traditional PampL reports no longer reflect the value of the business or how the business drives value
All things that should be of interest to investors is missing With things like the integrated report initiative wersquore starting to see the other dimensions that add value to business For CFOs thatrsquos all about strategic thinking and considering the long-term objectives Being articulate in implementing those strategies keeping in mind the risks and opportunities that the business faces We are also nowadays witnessing a whole new world of transparency around that
Are there electronic aspects to CIMArsquos advancing approachThe interactive case study simulates a real working situation and it tests how they can apply their knowledge in real life situations Theyrsquoll be presented with a scenario a few weeks before they take the exam so they can prepare for it They then go to an exam centre where they are asked questions about how they will deal with a certain situation in the real world Theyrsquoll get an email from the CFO giving them a certain task for a particular period of time We want to make it as close to reality as possible so students taking the exam will be assessing situations based on real life scenarios
ldquoThe CFO has a real challenge on his hands now as traditional PampL reports no longer reflect the value of the businessand [the role] must focus on strategic thinking and considering long-term objectivesrdquo
218KCIMA members worldwide
STAT FACTS
CIMA INTERVIEW
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
38
ERPANALyTICS
wwwthecfomecom
Faster more nuanced IT solutions are available to the modern day CFO Whilst Chief Financial Officers are called upon to analyse data across a number of spectrums the digital tools on hand are likewise being expanded to aid in focusing more squarely on the bottom line
ExCELLING WITH ERP
The global landscape is today firmly entrenched within a digital model As a result CFOs whom are called upon to take a larger role in a number of variables must also increase their abilities with respect to utilising the many upsides which tech innovations offer a business When surveyed about their most pressing concerns CFOs generally return a varying collection of responses Revenue growth regulatory changes and meeting quarterly goals are among the chief concerns Virtually every obstacle can be hurdled by way of maintaining the order of financial reporting and data which has long been
synonymous with the Chief Financial Officerrsquos remit A widening berth of ERP solutions is making this data all the easier to come by
Despite how sophisticated the market is today it was not long ago that ERP departments once spent days processing business reports
Said Rohan Tejura Assistant Vice President Focus Softnet ldquoTraditional ERP systems were solely data repositories Moreover these repositories werenrsquot real time and were incredibly dependent upon locational connectivity With the emergence of smarter development platforms more versatile devices and
39
ERPANALyTICS
wwwthecfomecom
more intuitive designs of system development the overall experience of the ERP now extends from data warehousing to reporting analysis trend mapping business intelligence and governance oriented capabilities Yet these solutions amazingly execute all of these deliverables via portable handheld devices and through cloud environmentsrdquo
New generation ERP systems must now be on the go whilst including up to the minute analytics to provide deeper insight into the business ERP Analytics tools use historical data captured from various business functions to provide valuable information for efficiency and business performance each incredibly priceless to a leading CFO
Finesse is an ERP provider which is continually addressing the transformation of output which the ERP industry is offering the equally transitioning role of CFO
ldquoWe provide end-to-end business management solutions to SMEs and Enterprises Our approach to ERP is much more than providing simply an operational management systemrdquo said Finesse COO Sunil Paul
ldquoWe believe that todayrsquos businesses need much more than integrating sales with inventory accounting and manufacturing but also to have seamless integration with all their sales channels including the point of sales ecommerce and inbound sales solutionsrdquo
A major im-petus of the ERP-cen-tered growth is based on how effec-tive com-prehensive real-time data proves to be for the CFO
40 wwwthecfomecom
before thereby creating new global benchmarks for overall economic growth
Microsoft Arabia CFO Sadrul Khan offered insight into just how far the knowledge economy has influenced regional financial leadership by explaining how one of the most prioritised technologies by CFOs in the region is social platform monitoring
ldquoOne of the five technology choices that CFOs tend to prioritise in boosting productivity efficiencies and faster decision making in the fast paced business environment which include a social platform that monitors trends customer sentiments and helps process mashable data for customer centricity and business growthrdquo said Khan
A major impetus of the ERP-centered growth is based on how effective comprehensive real-time data proves to be for the CFO Whether employed as on-premise ERP software-as-a-service or cloud-based solutions a nearly identical ethos is being utilised Allowing the CFO to quickly access the performance of all facets of a business is paying dividends in the boardroom a reality which is showing itself increasingly in the Middle East
The technologically-charged relationship between ERP solutions and the regionrsquos CFOs is expanding and as a result has catalysed what many see as GCC economic performance outstripping that of many economies outside of the region as a result
In order to compete in todayrsquos fiercely competitive environment organisations need to think both innovatively and out of the box They require more insights about their business and their customers and need to ensure that they are able to meet the expectations of their internal as well as external stakeholders Enormous amounts of data both structured and unstructured is continuously being generated within the internal and external systems of the organisation which if analysed can be of immense value both to the business and subsequently the stakeholders associated with the organisation
With the the era of CFOs labouring over spreadsheets now in the past given how many business frontiers have become so dependent on mobile options such as the cloud more and more tech companies are providing the regionrsquos CFOs with information technology that converts traditional internal and external data into rich visual insights This information is then used for faster decision making and provides the ability for a CFO to assess manage and control risks Regional CFOs have grown enabled to drive corporate strategy accordingly demonstrating how the knowledge economy is now in full force amongst the Gulfrsquos corporates
Given that advanced IT has now become a regular CFO tool the regionrsquos CFOs are subsequently making faster decisions and driving internal growth models with greater speed and agility than ever
Tech companies are providing the regionrsquos CFOs with information technology that converts traditional internal and external data into rich visual insights
ERPANALyTICS
Donrsquot discoveritrsquos counterfeittoner afteritrsquos too lateOriginal HP Toner works first time every time1 unlike cheap toners which fail over half of the people who try it2 Non-HP toner can compromise your printerrsquos performance to give you streaked blotchy or faded prints Only original HP Toner cartridges deliver unmatched quality for the most professional-looking prints 100 of the time1
1 A QualityLogic 2010 study commissioned by HP comparing original HP LaserJet Monochrome print cartridges with nine brands of non-HP toner cartridges available in Europe Middle East and Africa for the HP LaserJet P1505 and P4015 printers HP 36A and 64A For details see wwwqualitylogiccomEMEAmonotonertestpdf 2 From a 2012 EMEA Lyra Research study commissioned by HP Results based on a total of 1050 HP Color LaserJet users who have used both original HP and non-HP toner cartridges of whom 552 experienced problems with non-HP cartridges
copy 2014 Hewlett-Packard Development Company LP
42
Private Equity ANALyTICS
wwwthecfomecom
The rise of PE-backed acquisitions is forcing CFOs to develop an entirely new set of skills
THE PRIvATE EQUITy CFO
The CFOrsquos utility in the world of private equity is without question on the rise The once-held belief of the CFO existing solely as the ldquoaccounting guyrdquo has been abandoned Over the last 20 years the role of CFO has become more demanding - requiring not just finance and accounting acumen but also a financial literacy in corporate planning risk management MampA assetliability management and regulation This evolution has been driven by a number of
key factors Yet the private equity industry which is now reshaping the corporate landscape through active ownership is by far the most significant factor driving change within the role of the CFO
PE-backed buyers today represent a larger percentage of overall buyers in the corporate acquisition marketplace than ever before Data provider Prequin estimates that as of June 2014 the capital raised by PE funds that
has not yet been deployed amounts to $114 trillion globally The result of this ldquodry powderrdquo is that a vast quantity of corporate acquisitions in the coming years will be undertaken by the private equity industry As such CFOs will be more accountable to demanding ldquosmart moneyrdquo shareholders than at any point in recent history Budgeting accounting and financial reporting will no longer exist as sole priorities but as a core competency among a
ldquoBy effec-tively using real-time data CFOs can create a dynamic process that proac-tively drives performance account-ability and value crea-tionrdquo
By Aaron Heidari
43
Private Equity ANALyTICS
wwwthecfomecom
robust set of complimentary and required skills Most of all the bar for CFOs is rising as PE investors will only accept above-average performance from their management teams
CFOs were once more reactive in function setting budgets based on other executivesrsquo plans and managing the flow of reporting to shareholders on a quarterly and yearly basis Today CFOs are required to become proactive managers of their respective businesses alongside their C-suite compatriots using a granular data-driven approach to aggregate analyse implement and report on every aspect of a companyrsquos operations
An important tool to drive this value creation process are KPIs Yet KPI structures including both aggregation and output are generally not up to the standards required of private equity investors prior to an investment being made
ldquoThe benefits of using KPIs and monthly reporting packages are significant By effectively using real-time data that is actionable and by partnering with functional area leaders within the organisation company CFOs can create a dynamic process that proactively drives performance accountability and value creationrdquo said Amanda Robinson Vice President of Accordion International in Dubai a consulting firm which is comprised of former private equity and investment banking professionals who
MENA region Cumulative Funds Under Management Since 2008
Source Zawya private Equity Monitor
19 636 20 36321 586
22 64323 506 24 250
-
5000
10000
15000
20000
25000
2008 2009 2010 2011 2012 2013
Cu
mu
lati
ve f
un
ds
($ m
)
$15mAverage MENA PE investment size in lsquo13
50Percentage of investment in IT and energy sectors
STAT FACTS
44 wwwthecfomecom
work with companies to deliver cost-effective project execution services
Active shareholders whose money it is being spent will typically require a data-driven justification before approving any budgets capital expenditures or new acquisitions Furthermore in many private equity backed companies the use of debt and the matching of shorter-term bank financing with longer-term investments will only be considered after a robust analysis is conducted to understand the companyrsquos ability to service that debt in the future This evaluation is not simply to identify revenues expenses and profits Itrsquos about drilling down into every transaction and rooting out data processing and reporting At least that is the expectation
The most valuable CFOs are those who have the ability not just to scrutinise and understand the financials but all also possess a wider grasp of the underlying data which truly comprise the business As an investor who has just acquired a stake in a new business I want a CFO who can manage the transition and stay ahead of my expectations Most of all a CFO should impress upon the companyrsquos shareholders a new way of doing business The first 100 days of an acquisition are said to be the most important During this period the CFOrsquos worth will be established when the new financial plan is due and the platform for the next five years of growth is presented
A CFO should man-age the tran-sition stay ahead of expectations and impress upon the companyrsquos shareholders a new way of doing business
Investment Volume By Sector Since 2006
Investment Volume By Sector in 2013
Source Zawya private Equity Monitor
1
3
30
17
3
28
3
4
6
4
6
5
17
9
9
6
9
5
8
6
6
2
3
10
Education
Education
Information Technology
Information Technology
Other
Other
Telecoms
Telecoms
Media
Media
Transport
Transport
Oil amp Gas
Oil amp Gas
Healthcare
Healthcare
Consumer goods
Consumer goods
Food amp Beverages
Food amp Beverages
Leisure
Leisure
Manufacturing
Manufacturing
ANALyTICS
Private Equity
2000857 NBAD ratibi mag ad 200x268 Finalindd 1 92514 1017 AM
46 wwwthecfomecom
THE FUTURE OFACCOUNTING EDUCATIONAddRESSINg THECOMpETENCY CRISIS
Have you ever stopped to think about how the accounting profession has changed since you graduated from college Recent graduates can answer this question by reflecting on the last two or three years whereas for other more seasoned professionals answering this question requires a bit more thought and memory searching Indeed we can all think of ways that the field of accounting is remarkably different today from the one we likely envisioned during our college daysmdashregardless of which decade we each donned our cap and gown This gradual transformation of the accounting profession leads to two important questions related to competencies bull Which competencies are important for success inaccounting todaybull Were these competencies consciously developed as partof your accounting degree programme
We suspect that more than a few of you would answer ldquonordquo to the second question Put another way our profession may be facingmdashmore so than at any time in the pastmdasha ldquocompetency crisisrdquo that is a gap between the competencies needed for professional success and those taught in our college classrooms today We propose a three-pronged strategy or ldquogame planrdquo for overcoming this competency crisis and in turn better preparing accounting graduates for the challenging world they will face First all of us accountants need to understand the changes that have already taken place in our profession and perhaps more importantly anticipate the changes that are on the horizon Second we need to educate ourselves and future generations of accountants so that as a collective group we can deliver the expanding set of competencies demanded in todayrsquos dynamic organisational
contexts Third as professional organisations and as individuals we need to think beyond ourselves by asking How can I (or we) help the accounting profession address the competency crisis
A Shift Toward Integrated ThinkingMany articles and white papers have been written that describe in detail the changes that have occurred in our profession over the last few decades but for our purposes wersquod like to distill these changes down to one crucial idea How does the accounting function add value to an organisation Accountants have evolved from support-oriented personnel who hand off information to others who actually make decisions into business partners who ldquohave a seat at the tablerdquo with managers
By peter C Brewer James E Sorensen CpA CgMA and david E Stout
47wwwthecfomecom
1048576bull What regulatory risks mayaccompany the proposal
1048576bull What social and environmentalfactors will we face if for example the proposal requires investing in overseas operations
1048576bull What types of employeeresistance may arise if we implement the proposal and how will we overcome the root causes of any such resistance
1048576bull Can and how should we valuefuture options associated with the proposal such as expanding or contracting the investment over time as new information becomes available
1048576bull Should we use debt or equity tofund the proposal
In short accountants have evolved to become integrated thinkers who enable EPM by partnering with managers across the organisation to add value Yet as EPM has gradually become the centrepiece of our professionrsquos value proposition accounting education hasnrsquot done enough to embrace it To overcome this gap wersquod like to further suggest that the concepts of competency integration and EPM need to come ldquofront and centrerdquo as we move forward in educating the next generation of successful accounting practitioners
Accounting Education No Longer on the SidelinesRecently a task force consisting of members of IMAreg (Institute of Management Accountants) and members of the Management Accounting Section (MAS) of the American Accounting Association (AAA) addressed the competency issue How should accounting education change fundamentally to help close the competencies gap The efforts of the task force led to
cash flows and how to apply discounted cash flow (DCF) decision models such as net present value (NPV) is of foundationalmdashsome might say critical mdash importance But integrated thinkers draw on an understanding of organisational strategy coupled with a broader set of competencies (beyond what might be considered technical or foundational knowledge) when making these types of decisions For example they consider how behavioural issues may influence the capital investment decision-making process Perhaps the financial estimates contained in the NPV analysis are too optimistic because the manager who prepared the numbers has a vested interest in seeing the project approved Decision makers also need to consider issues such as leasing vs buying a capital asset and the corresponding impacts on the financial statements and ratios that are tracked by investors and lenders What nonfinancial factors are associated with the proposed investment Add in the tax consequences of capital investment decisions coupled with the need to maintain internal control over any new business processes tied to these decisions and the need to think in an integrated fashion across a variety of accounting competencies becomes apparent
Furthermore becoming a true business partner with managers across the organisation requires more than simply integrating various accounting competencies It also means thinking like a business manager or a chief executive officer (CEO) Returning to the capital budgeting example an integrated thinker will ask questions such as
across the organisation Together they formulate and plan strategies then participate in collaborative decision-making processes that execute those strategies in a manner that adds stakeholder value Said another way accountants have evolved to become enterprise performance managers This shift in our orientation from a support function to an enterprise performance management (EPM) role has enormous implications for defining the determinants of success within our profession the most important of which involves becoming collaborators and ldquointegrated thinkersrdquo Take for example a common but important business decision process capital investment analysis Certainly technical knowledge regarding how to estimate relevant after-tax
48 wwwthecfomecom
expanding capital budgeting discussions to include financial statement impacts tax consequences and internal control issues integrates topical coverage across the External Reporting and Analysis Taxation Compliance and Planning and Assurance and Internal Control competencies shown in Figure 1
Third accounting curricula can incorporate a broader set of management competencies For example evaluating capital investment proposals from the perspectives of change management (Leadership) social and environmental issues (Ethics and Social Responsibility) regulatory concerns (Governance Risk and Compliance) and capital structure (Additional Core Business Competencies) brings a CEOrsquos perspective to the decision-making process
Fourth accounting curricula should include foundational competencies such as proficiency with spreadsheets and written and oral communication In the context of capital budgeting this may include asking students to use Microsoft Excel to perform a sensitivity analysis and then to present their findings to the entire class
Working to Fix the ProblemAt this point although you may agree with us that therersquos a competency crisis within the accounting profession you may be wondering What does this have to do with me What can my organisation do to help address this so-called competency crisis The answer a lot Practice partners and academic partners can help the accounting profession overcome the competency crisis That said letrsquos take a closer look at the role of practice partners first
improvement) and accounting competencies (external reporting and analysis planning analysis and control taxation compliance and planning information systems assurance and internal control and professional values ethics and attitudes) Of critical importance to the framework is the assumption that the set of competencies contained in Figure 1 would be developed and integrated over time through a blend of formal education (including continuing education) training and job experience
What levels of integrationmdashon the road to developing integrated thinkers in accountingmdashare possible First accounting educators can integrate within a single accounting competency So referring back to our capital budgeting discussion teaching computational models such as NPV analysis coupled with a review of various behavioural issues associated with capital investment decisions would be an example of integrating within the Planning Analysis and Control competency listed in Figure 1
Second professors can integrate across accounting competencies For example
a recently published article that contains a proposed framework for accounting education reproduced here as Figure 1 The framework is general in the sense that itrsquos meant to apply to all accounting students not subgroups based on career specialisation such as tax assurance services corporate finance and the like Itrsquos based on the idea that accounting educators can better prepare students to deliver our professionrsquos EPM value proposition through integrated competency-oriented curricula (For more see ldquoFocusing Accounting Curricula on Studentsrsquo Long-Run Careers Recommendations for an Integrated Competency-Based Framework for Accounting Educationrdquo in the May 2014 edition of Issues in Accounting Education)
A glance at Figure 1 reveals three levels of competencies foundational competencies (communication ability to leverage technology and analytical thinking and problem solving among others) broad management competencies (including leadership ethics and social responsibility and process management and
Proposed Competencies-based Framework for Accounting Education
FOUNDATIONALCOMPETENCIES
ACCOUNTING COMPETENCIES
BROAD MANAGEMENT COMPETENCIES
leadership
ExternalReportingamp Analysis
PlanningAnalysis
amp Control
TaxationComplianceamp Planning
InformationSystems
Assuranceamp InternalControl
ProfessionalValues Ethics
amp Attitudes
Communication
Quantitative
Interpersonal
Technological
Analytical Thinking ampProblem Solving
Ethics amp SocialResponsibility
ProcessManagement ampImprovement
GovernanceRisk amp
Compliance
AdditionalCore BusinessCompetencies
Although you may agree with us that therersquos a competency crisis within the account-ing profes-sion you may bewondering What does this haveto do with me
A practice partner should be or become a CMAreg (Certified Management Accountant) maintain professional certification by completing required Continuing Professional Education (CPE) hours and regularly read the IMA publications Strategic Finance and Management Accounting Quarterly
In addition there are a number of excellent resources that deal with topics covered in this article and that IMA makes available to its members
Strategic Finance PowerPacks(wwwimanetorg SFPowerPacks) These are resources focused on contemporary topics similar to those discussed earlier Current offerings include Risk Management Strategic Planning IT Skills amp Software and Internal Controls Each PowerPack includes a combination of resources such as research studies articles and links to webinars
Statements on Management Accounting (SMAs)(wwwimanetorgresources and_publicationsresearch_ studies_resourcesstatements on_management_accounting aspx) SMAs represent monographs classified into one of the following six categories Leadership Strategies and Ethics Technology Enablement Strategic Cost Management Business Performance Management Finance Governance Risk and Compliance and the Practice of Management Accounting Multiple items are available within each category For example the Practice of Management Accounting category includes (among other items)
49wwwthecfomecom
the Definition of Management Accounting and Implementing Shared Service Centres
Research Studies (wwwimanetorgresources_and_publicationsResearch_Studies_and_ResourcesAll_reportsaspx) The ldquoThoughtLeadershiprdquo section of IMArsquos website includes research covering a broad range of issues classified into seven categories For example under the ldquoGlobal Business Environmentrdquo category the following two research reports are available ldquoKey Differences Between IFRS and US GAAP Impact on Financial Reportingrdquo and ldquoCosting Methodologies and Cost Management Practices in the Peoplersquos Republic of Chinardquo
IMA Leadership Academy (www imanetorgprograms_events leadership_academyaspx) As described on the IMA website this programme is designed to assess a memberrsquos leadership status enhance that individualrsquos skills (principally through monthly webinars) and recognise leadership achievements These benefits are free to members
How You Can Make a Bigger Impact In addition to attending local regional and national IMA meetings consider inviting a small group of students to each chapter meeting This could be a wonderful (and relatively low-cost) option for mentoring aspiring accountants and finance professionals providing networking opportunities and introducing students to cutting-edge issues regarding the practice of management accounting Joining a university accounting
advisory group may be another way to influence the development of EPM in that institutionrsquos curriculum design
Other methods to enhance EPM in your organisation include (1) forming user groups within your company your local IMA chapter or your industry to review and share EPM experiences (2) encouraging advancement in the firm to be linked to EPM proficiency (3) focusing your companyrsquos recruiting efforts on candidates who display a background in andor understanding of EPM and (4) organising cross training within your company to enhance a mutual understanding of each otherrsquos respective roles
Finally visit the Competency CrisisTM website (http competencycrisisorg) set up by IMA to unite the accounting and finance constituencies professionals students employers academics and professorsmdashand explore competency issues through the lens of each stakeholder group The site is designed to ldquoencourage a discourse spur action and create a community dedicated to resolving the serious crisis of competency present in the professionrdquo Special sections of the website are devoted to educators students and employers professionals
Our Partners in Education Much like a practice partner an academic partner should be or become a CMA maintain professional accreditation by completing CPE hours and regularly read IMArsquos publications
Academic members of IMA can pursue and actively promote the CMA programme at their respective institutions
50 wwwthecfomecom
IMArsquos website contains helpful resources including an exam content overview content specification outlines for each of the two parts of the CMA exam and learning outcome statements The current exam covers some of the professional competencies represented in Figure 1 A summary of changes to exam content which will be effective in January 2015 is provided on the IMA website in News amp Media Relations which is located under ldquoAbout IMArdquo (See the press release dated March 24 2014) Other helpful resources include ldquoICMA Announces CMA Exam Content Changesrdquo in the April 2014 issue of Strategic Finance as well as ldquoManagement Accounting Career Readiness Shaping YOUR Curriculumrdquo
These forthcoming changes are based on the most recent IMA study of the knowledge and skills needed by management accountants from the view of CFOs controllers and other accountingfinance professionals from around the world
Also consider taking a group of your students to the IMA Student Leadership Conference held each November The Conference provides excellent networking opportunities for you your students and practicing professionals Students can learn firsthand from Conference presenters the challenges and opportunities facing finance and accounting professionals today
Moreover if your institution doesnrsquot currently have an IMA Student Chapter consider forming one One of the authors of this article David Stout reinstituted the student chapter at his school (Youngstown State University) after travelling with a group of his students to the IMA
Student Leadership Conference in Cleveland Ohio Through an IMA Student Chapter on campus students are able to work closely with a sponsoring local IMA chapter and bring to campus speakers who are experts in a wide range of topics including those discussed earlier in this article Each year student chapters compete for an Award of Excellence (AOE) and recognition as an Outstanding Student Chapter In addition IMA student members are able to engage in networking activities leadership training mentoring and community service programmesmdashall through their local chapter
You also might consider volunteering to serve as a Campus Advocate In this role yoursquoll represent IMA in all major matters of interest to your students (scholarship opportunities starting a student chapter mentoring and the like) and to your institution (for example leveraging IMA resources to advance the relevancy of the accounting curriculum use of educational case studies published in the IMA Educational Case Journal and access to IMArsquos ethics curriculum)
And if you havenrsquot yet done this ask IMA to endorse your accounting programme (information is available at www imanetorgeducator_resources indexaspx) This programme is designed to identify business curricula that meet the quality educational standards required to prepare students to earn the CMA designation Endorsement is based on an analysis of the curriculum and topics covered on the two-part CMA exam Currently 12 programmes have been endorsed
Finally if your school has an IMA Student Chapter consider participating in the annual IMA Student Case Competition where students are asked to propose a solution to a real world problem (Cases are solicited each year by Raef Lawson IMA VP of Research and Policy and IMA Professor in-Residence) Finalists make their presentations at IMArsquos Annual Conference amp Exposition before a set of judges consisting of accounting faculty members and practitioners Each year a new case is published in the August issue of Strategic Finance for students to use for that yearrsquos competition
Working TogetherIn this article we have summarised the changes that have affected the accounting profession and provided a competencies-based framework for guiding accounting educators in responding productively to those changes As a management accountant you know that implementing change in any organisation let alone within an entire profession never comes easily To be successful in overcoming our professionrsquos competency crisis IMArsquos practice and academic partners will need to assume leadership roles in defining enterprise performance management as the cornerstone of the accounting professionrsquos value proposition
This article was orginally published in the August 2014 issue of Strategic Finance It appears here with the permission of The Association of Accountants and financial professionals in Business
We need to educate ourselvesand future generations of account-ants so that as a collec-tive group we can deliver theexpanding set of com-petenciesdemanded in todayrsquos dynamicorgani-sational contexts
THE POWERFUL AND THRIFTY OFFICE ALL-ROUNDERS
The new ECOSYS M3560idn series will astound you With their print speeds of up to 60 pages per minute they are among the most productive A4 bw multifunctionals on the market We nevertheless managed to keep their ecological footprint and total cost of ownership impressively low by using our well-known ECOSYS technology and equipping the devices with our renowned long-life components The result Not only less waste and lower maintenance costs but also less hassle for you and all your colleagues You will also greatly appreciate the many customisation possibilities of the devices equipped with KYOCERArsquos open solution platform HyPAStrade as it allows you to tailor the device to your needs So yes we are proud of our new range of MFPs and can hardly wait to share their numerous benefits with you
For more information please contactKYOCERA Document Solutions Middle East | PB Box 500817 DubaiUAE | Tel +9714 4330 412 | Fax +9714 4231 944KYOCERA Document Solutions Europe BV - wwwkyoceradocumentsolutionseuKYOCERA Document Solutions Inc - wwwkyoceradocumentsolutionscom
52
ACCAINTERVIEW
wwwthecfomecom
GLOBAL By ASSOCIATION
across the region from our key employers and learning provider partners to our active and growing student and member base I want to understand their challenges and priorities and how ACCA can work with them to help support the economic success of the region
What can a CFO gain from working with ACCAThe ACCA qualification is about complete finance professionals For CFOs it brings the technical knowledge vital to business success complemented with the strategic management skills and ethical competence crucial to an organisationrsquos success As an organization ACCA in the UAE brings CFOs access to that local and global network of peers and expertise along with our leading research and insights that help them to keep up to date on the issues that matter most
Are there any initiatives in place to leverage the recently announced partnership with AAA
How are the ACCArsquos many years of activity being applied to the Middle EastACCA has now had a presence in the UAE for well over a decade During that time we have established strong relationships across the Middle East epitomised by the recent signing of our Strategic Partnership with AAA As a national body in choosing to partner with ACCA they recognised the local and global perspective we bring We are continuing to work with students members and employers across the Middle East to build their networks knowledge and business success through events research and insights and access to a growing number of online resources
Which initial priorities are among your key aims upon joining the organisationrsquos efforts in the UAEIn the first few months I hope to build on the success of the team in the UAE My priority will be to meet as many of our key stakeholders
The Association for Chartered Certified Accountants (ACCA) provides its services across a number of international borders The recent announcement of Lindsay Degouve de Nuncques as the new head of the Associationrsquos UAE chapter further exemplifies the ACCArsquos reach based on her previous work in the UK Nuncques shares here what she brings to the Middle East and just how globalisation has driven her ascent
53
ACCAINTERVIEW
wwwthecfomecom
The strategic partnership with AAA is the first of its kind in the region Students who complete the UAECA qualification will be entitled to both the AAA and ACCA designations and ACCA members in the UAE will also be eligible to apply for AAA membership This is a very exciting development in the market and together AAA and ACCA will be working to deliver maximum value to all our stakeholders from this partnership As we launch the UAECA qualification this activity will start in earnest
Which key industries will you be spotlighting in the Middle East in the months aheadOur experience of working across all sectors and levels of organisations globally gives ACCA a unique insight into all types of industries We will continue to be working with employers across the spectrum in the months ahead to help them gain the insight and make the connections that drive businesses to succeed at whatever they do
ldquoThe ACCA qualification is about complete finance professionals For CFOs it brings the technical knowledge vital to business success complemented with the strategic management skillsrdquo
54
Islamic FinanceMARKET OUTLOOK
wwwthecfomecom
In its 10th instalment the Forum is hosted in Dubai as a direct result of the UAErsquos increasing importance in the world of global Islamic finance
THE WORLD ISLAmIC ECONOmIC FORUm LANDS IN DUBAI
In Dubairsquos continued quest for leading the world across a range of spectrums the Emirate accelerated its desire to become the worldrsquos leading hub for Islamic finance by hosting the 10th installment of the World Islamic Economic Forum (WIEF) Delegates from dozens of countries attended to take part in a three-day event held at Madinat Jumeirah which rests alongside Dubairsquos gleaming coastline Held under the patronage of His Highness Sheikh Mohammed Bin Rashid Al Maktoum the
Vice President and Prime Minister of the UAE and Ruler of Dubai key speakers included The Honorary Dr Zeti Akhtar Aziz Governor of the Central Bank of Malaysia HE Kairat Kelimbetov Governor of the National Bank of Kazakhstan The Honorary Datorsquo Sri Mohd Najib Tun Abdul Razal Prime Minister of Malaysia and HE Xavier Bettel Prime Minister of the Grand Duchy of Luxembourg
Launched in 2006 in Malaysia WIEF has grown in tandem with the increased
Delegates from dozens of countries attended WIEF to take part in the three-day event
sophistication and reach of Islamic finance After a successful event in London in 2013 amidst increased interest in Islamic finance across Europe WIEF relocated to Dubai where the local business structure is keen to host halal finance
Said Hamad Buamim President and CEO Dubai Chamber of Commerce and Industry co-organisers of the event ldquo[The forum] is the start of a new chapter of cooperation between Dubai and the world as part of
55
Islamic FinanceMARKET OUTLOOK
wwwthecfomecom
Dubai Capital of Islamic Economy visionhellipestablishing a unified regulatory authority to provide the framework for standards across halal industries will significantly accelerate growth Likewise we need to see increased cooperation and partnership between the public and private sectors This is already happening with great success here in Dubairdquo
The order of global cooperation needed to facilitate growth across the Islamic finance world was more than apparent at WIEF based on how many differing nations were represented at the event The exhibitorrsquos hall was populated with a number of key Malaysian stands representative of the Southeast Asianrsquos ranking as the global leader in Islamic finance Also present were companies from Saudi Arabia also a key locality in the worldrsquos halal industries An interesting yet prescient presence was of attendees from South Korea a nation which is eager to participate in Islamic finance and will be hosting the WIEF Pyeongchang Roundtable in December 2014
ldquoGangwon is a province located in Korea which is very interested in new business opportunities Wersquove realised the strength of the Islamic economy and have come here with many different companies The first type is based in real estate investment We also have companies which want to export their products to the Islamic economy based on their halal qualities And Gangwon will also be hosting the Winter
ldquoKorea is very interested in the strength of the Islamic economy and wants to export its products based on their halal qualitiesrdquo
56 wwwthecfomecom
$247trillionProjected value of halal products industry in lsquo18
125Muslim percentage of global tourism expenditure
STAT FACTSOlympics in 2018 and are presently seeking investments for this as wellrdquo said Seong-hun Kim a member of Gangwon Province Governmentrsquos Export Support Team
Dubai proved to be an excellent place for the event considering how well the UAE is able to so regularly corral international cooperation A key sign of this was witnessed recently when Luxembourg now considered the third most important base for Islamic finance globally opened a finance office in Dubai International Finance Centre The European nation also opened a euro200 sukuk earlier this year which was quickly oversubscribed
The prime minister of Luxembourg offered the WIEF audience a riveting speech which detailed just how international the Forum has become whilst encouraging more of the world to support the growing influence of Islamic finance
Said Bettel ldquoWe need to innovate more economic partnerships for growth We sometimes need to reengineer relationships but also have to make sure these relationships remain sustainable Growth in one country also brings growth to others as long as this is guided by free market initiatives Free trade and free flow of capital combined with innovation leads to prosperity We have all gathered here in Dubai to explore the future of Islamic finance and Luxembourg is also a pioneer of Islamic finance in Europe The Islamic financial sector has a major role to play in continued global growthrdquo
The Islamic Corporation for the Development of the Private Sector (ICD) is based in the Kingdom of Saudi Arabia where it manages an international fund worth $2 billion half of which is available for subscription With shareholders in more than 50 countries and a sovereign sukuk fund recently launched in West Africa the ICDrsquos CEO Khaled M Al Aboodi attended WIEF this year excited to participate in the global event
How does the ICD approach its attendance at the World Islamic Economic ForumI think the Forum is one of the best places for discussing the financial issues of the OEC member countries It has been around for ten years and has grown to become a very important platform for discussion Wersquore here to attend and listen but also to network Itrsquos a great networking platform and a place to share views whilst letting everyone know what we have to offer
How has Islamic finance changed over the yearsOf course itrsquos growing in a large scale Some of it actually needs more support particularly with respect to regulatory frameworks Wersquore trying to partner with many international organisations like the IMF to try to provide support to countries to adapt regulation for Islamic finance Sukuk issuance is one of the biggest issues that needs to be addressed because there is a huge amount of liquidity in this arena Due to issues related to regulation sukuk issuance can be costly But with the regulation we are confident it will be on a level playing field with other forms of finance Compliance is a major area where more work can be done The Forum started with a roundtable on sukuk which shows how helpful WIEF has been over the years
What type of work does ICD do internationallyICD helped the government of Senegal to issue the first sovereign sukuk This was successfully issued last summer Progressing in this manner is something wersquod like to see continue across West Africa in order to utilise its resources with aiding development in the region in mind
QampA WITH KHALED M AL ABOODI CEO OF ICD
Islamic FinanceMARKET OUTLOOK
OFFICIAL SPONSORS
ENDORSED BY OFFICIAL HOST OFFICIAL
COMMUNICATIONS PARTNER
MEYDAN HOTEL DUBAI UAE19 - 20 NOVEMBER 2014
WOMENOMICSthe next emerging market
TAKE PART in making change happen UNITE with business and through leaders from across the globe
PARTICIPATE to the expansion of a modern and inclusive economy
58
Gautam PradhanINTERVIEW
wwwthecfomecom
SUCCESS BEyOND BOUNDARIES
in other management roles such as strategic decision making mentoring and leading efficiency and productivity across a range of other departments and functions as well as a being a catalyst in ensuring that the boardrsquos vision for the organisation is achieved
A significant percentage of NMDCrsquos shares are owned publicly Does the CFO play a role in balancing the interests of the shareholdersAs a CFO balancing the shareholdersrsquo interests is definitely part of my responsibility In order to achieve this goal there needs to be a careful evaluation of each decision while keeping the short-term and long-term goals of the company in mind At NMDC we actively implement a system where we utilise a balance scorecard as a method of ensuring that all our primary objectives are met yet at the same time continuously enhance our relationships with our shareholders
NMDC has completed various projects across the Emirates Are there plans to move abroadAs NMDC moves towards becoming an international player our strategic expansion plans are focused in areas within the GCC region and India In line with this strategy we opened
How has a company with such a unique set of deliverables grown so consistently over the yearsOur organisation strongly believes that the core to our strength is the people process and equipment A strategic decision led by our Board of Directors and the senior management has been implemented that required us to consistently invest in these three aspects to help expand our business beyond the territorial boundaries of the UAE and at the same time enhance what we can offer which is relevant to these segments We attribute our success to the efforts which every employee contributes We also strongly believe in the ldquoWe can make it happenrdquo principle The management raises the index of performance while setting SMART objectives within the organisation and encouraging the employees to achieve them
How has your position as the CFO changed over NMDCrsquos 35 years of operationAs the market evolves and business dynamics change my role as the CFO has become complex and more challenging A few years back I was mainly focused on bookkeeping accounting and other financial responsibilities such as arranging bank facilities But moving forward I became more involved
The UAE is progressively becoming a hub for world-class infrastructure The country has duly impressed the rest of the globe with noteworthy land developments showcased across the emirates Among the remarkable landscapes found in Abu Dhabi are the Corniche Beach Yas Island and Sir Baniyas Island Behind these successful projects is NMDC the dredging division of Abu Dhabi National Oil Company (ADNOC)
In an interview with CFO Magazine Gautam Pradhan Chief Financial Officer NMDC shares an exclusive look into the companyrsquos international blueprint for growth and his dynamic role as a strategic leader of one of the best in dredging and marine construction in the Middle East
59
Gautam PradhanINTERVIEW
wwwthecfomecom
branches in Qatar Bahrain Oman and India This has paid rich dividends recently as projects of strategic importance are bagged in Qatar and Bahrain Furthermore NMDC (UAE) has recently played a key role as a leader of an international consortium with Royal Boskalis Westminister (Netherlands) and Jan De Nul Group (Belgium) for the awarding of the Suez Canal Dredging project in Egypt Moving forward we have devised a strategic approach that will enable us to play a key role in the development of Indiarsquos marine infrastructure
What are the global strategies that are part of the CFOrsquos responsibilitiesAs CFO understanding the macro economic scenario risk analysis and mitigating those risks are all a part of my responsibilities I also have to have a proper comprehension
ldquoA few years back I was mainly focused on financial responsibilities moving forward I became more involved in strategic decision making mentoring and leading productivityrdquo
Gautam PradhanINTERVIEW
60 wwwthecfomecom
of the challenges faced by the company in terms of dealing with foreign contracts direct and indirect taxes and hedging and managing the integration process These are essential to enhance shareholders wealth and mitigate undue risk
How significant is accountancy for NMDC in its operations Why exactlyAccountancy is the lifeline of any company it does not only record the finances it also reflects the health of the organisation The MIS reports analysis trends and statistical information go a long way toward effectively providing
the diagnostic approach essential for the company
How have NMDCrsquos environmental activities helped the companyrsquos bottom lineNMDCrsquos work is well-synchronised with our environmental activities and specifically with nature Our activities are closely linked to sand and water and we view such activities with strategic importance Projects such as increasing water supply to mangroves and beach nourishment help us support the environmental activities while adding to our bottom line
ldquoAccountancy is the lifeline of any company it does not only record the finances it also reflects the health of the organisationrdquo
A burgeoning slice of Abu Dhabi coastline
The largest business awards
in the GCC30th November Dubai
nominate now at wwwstarsofbusinessawardscom
Stars of Business has become an iconic awards brand like no other in the region It recognizes the very best SMEs across 26 business categories Itrsquos universally respected as scientifically assessed and unimpeachably judged
327000 SMEs across the UAE$234 billion estimated total revenue of the SME sector4974 Awards entries in 20131856 Individual company applicants
Presenting Partner Strategic SME Partner Gold Sponsor Gold Sponsor VIP Hospitality Partner Supporting Partner
Trade Facilitator PartnerTrade Credit PartnerLogistics Partner
Institutional Partner Institutional Partner Event Partner
OrganiserPublisherMedia Partner Media PartnerPort Authority Partner
62
David Allen INTERVIEW
wwwthecfomecom
What went into completing your bestseller ndash Getting Things Done (GTD)After twenty years of researching developing and implementing a methodology for achieving stress-free productivity based upon
thousands of hours spent desk-side with
some of the best brightest and busiest people in the world I decided to write the manual for it Thatrsquos what Getting Things Done is
What are the five phases of mastering workflowIn order to get
any situation under control so
you can focus you will utilise these five
steps Whether yoursquore managing your kitchen
or your company you will need to collect and capture what has your attention clarify what if anything to do about it organise it according to what it means to you review and reflect upon it in relation to
Todayrsquos evolving CFO is often caught between the world of business set-up generating revenue managing employees and building strong company infrastructure When can things actually get done What can one do to boost productivity and master workflow World-renowned business coach David Allen has the answers
PRODUCTIvITy PRINCIPLES WITH
DAvID ALLEN
63
David Allen INTERVIEW
wwwthecfomecom
those are greatly subvertedHow does one maintain a fair balance between the time spent planning and actually getting things doneYou simply need to spend just the amount of time you need to to trust that what you are getting done is the right thing to be getting done in the moment It takes as long as it takes to get to that point Why would you do anything less
How can one apply your core productivity and workflow principles to todayrsquos technologically driven environmentThe principles and their techniques are system-independent Whether you have meaningful input from the Internet your smartphone or a conversation in the hall you must engage with it equally Technology has simply increased the flow of input and ease of distraction in your world
There is a lot of talk about how connected wersquove become and how connectivity is driving tremendous business growth Does connectivity actually come with its fair share of downsides
Connectivity is obviously a two-edged sword We can have intimate productive and creative interaction instantly with someone on the other side of the world and we can just as easily be distracted and seduced into those engagements when they may not be the best use of our attention and resources Donrsquot shoot the medium Itrsquos all simply bringing attention to your clarity of direction and priorities or lack thereof
Could you share a few quick tips with our readers to instantly boost productivityWrite everything down that has your attention Decide the very next actions required to get closure on all of them Any next actions that require less than two minutes do instantly Park reminders of everything else somewhere that yoursquoll see when you can do something about them
We are currently facing a massive information overload What are some basic principles you could suggest to mentally organise such large amounts of dataConstantly ask yourself Where am I going Whatrsquos important and rewarding to me Is this information
the whole and then engage your resources with intuitive trust
As a CFO how can you transfer efficient workflow management skills to your employees Itrsquos very difficult to legislate processes for individuals ndash you can really only hold them accountable for their results But if you are managing your own commitments and intersections with them with integrity and rigour it will automatically force your team to ldquostep up to the platerdquo in their own behaviours in order to meet your standards If you request their complete list of their company projects and they canrsquot produce it thatrsquos a sign theyrsquore not in control If they make a commitment to you that they havenrsquot kept thatrsquos data about their performance GTD is simply about good operational business practices
With so many planning and organising activities in your methodology is there a risk of losing spontaneity as a strategistThe reason for these best practices is to optimise freedom creativity and spontaneity Without them
ldquoBut if you are manag-ing your own com-mitments and intersec-tions with them with integrity and rigour it will automatical-ly force them to ldquostep up to the platerdquo in their own behaviours in order to meet your standardsrdquo
64 wwwthecfomecom
supporting that Park whatever you find potentially meaningful somewhere that is easy to access when needed
Being an entrepreneur is a non-stop job How do you ensure that you have an adequate work-life balance Pay attention to what has your attentionmdashwith regard to anything Your health relationships career finances etc Notice when something might be ldquooffrdquo and make good decisions about what you need to do to get it back ldquoonrdquo again
Does your work teach people to be efficient or effective In essence they are the same thing Effective choices are generated by efficiency on a higher level If you want to implement strategy most effectively it demands utilising your resources optimally which is efficiency
Does motivation actually improve quality of work or purely quantityDepends on the focus of the motivation You can be motivated to work harder and you can be motivated to work smarter
What is your favourite productivity mantra that
you implement in your day-to-day lifeUsing my own in-basket and note-taking devices to capture potentially meaningful and valuable ideas and soon afterwards clearing all of them out by deciding what to do about them if anything
Your books seminars and other work inspires many individuals and businesses Who is your personal inspiration or role model I have many about many different aspects of my life The only person though that I ultimately trust as my best guide is my higher self which I try to access as frequently and clearly as I can
Finally what advice would you give to current business owners and aspiring entrepreneurs looking to gain complete control of their life and businessCapture what has your attention clarify what you need to do about it to get it off your mind organise the inventory of all your commitments at all levels review and reflect on all of that regularly relax and trust your inner wisdom to engage with the most appropriate thing in the moment
ldquoIf you want to implement strategy most effectively it demands utilising your resources optimallyrdquo
David Allen INTERVIEW
APPSTECH TALK
wwwthecfomecom 65
mAxImISE BUSINESS lsquoON-THE-GOrsquo WITH THESE HANDy APPS
ipAd SpECIAL
SAMSUNG UNvEILS GALAxY NOTE EDGE
Network
AP
Display
OS
Camera
Video
Audio
Additional Features
GoogleMobile Services
Connectivity
Sensor
Memory
Dimension
Battery
The availability of service may differ by country All functionality features specifications and other product information provided in this document including but not limited to the benefits design pricing components performance availability and capabilities of the product are subject to change without notice or obligation
Samsung Galaxy Note Edge Product Specifications
25G (GSM GPRS EDGE) 850 900 1800 1900 MHz3G (HSPA + 42Mbps) 850 900 1900 2100 MHz4G (LTE Cat 4 15050Mbps) or 4G(LTE Cat 6 30050Mbps)May differ by country and carrier
27 GHz Quad-Core Processor
56 inch (1419mm) Quad HD+ Super AMOLED (2560 x 1440 + 160)
Android 44 (KitKat)
Rear Facing 16 Mega pixel Auto Focus camera with Smart OISFront Facing 37 Mega pixel camera with f19Rear Facing Camera HDR (Rich tone) Selective Focus Rear-cam Selfie Beauty face Virtual Tour Shot ShotampMore Dual CameraFront Facing Camera Selfie Wide Selfie
Codec H264 MPEG-4 H263 VC-1 WMV7 WMV8 Sorenson Spark MP43 VP8 Recording amp Playback up to UHD
Codec MP3 AACAAC+eAAC+ WMA AMR-NBWB Vorbis FLAC()() Ultra High Quality Audio (~192KHz 24 bit) support
Multi WindowUltra Power Saving ModeVoice Recorder (Normal Mode Interview Mode Meeting Mode Voice Memo)Download BoosterS Health 35Dynamic Lock ScreenBriefingEdge screen UX Revolving Interaction Immersive apps(Camera Video S Note)Ticker board Express me Quick Tools Night Clock etc
Chrome Drive Photos Gmail Google Google+ Google Settings Hangouts Maps Play Books Play Games Play Newsstand Play Movie amp TV Play Music Play Store Voice Search YouTube
WiFi 80211 abgnac (HT80) MIMO PCIeGPS GLONASS BeidouNFC Bluetoothreg v 41 (BLE ANT+)IR LED (Remote Control) USB20 MHL 30
Gesture Accelerometer Geo-magnetic Gyroscope RGB IR-LEDProximity Barometer Hall Sensor Finger Scanner UV Heart Rate Monitoring SpO2 (Dependent on market)
32 64 GB Internal memory + microSD slot (up to 128GB)3GB RAM
1513 x 824 x 83mm 174g
Standard battery Li-ion 3000 mAh Fast Charging (Adaptive Fast Charging amp QC20)
wwwthecfomecom66
APPSTECH TALK
AIR DISPLAY
SQUARE REGISTER
Using this app you can connect your iPad to your computer and use it as an additional screen While working on an important presentation or sales proposal you can extend or mirror your computer screen on your iPad This app is compatible with both Mac and Windows computers Note that to use this feature you have to install Air Display on your iPad and a separate free app on your computer The computer and iPad also need to be on the same Wi-Fi network in order to work in-sync
For Mac users the app allows you to connect to up to four screens ndash all at the same time
Apart from the ability to convert your iPad into a wireless display whatrsquos also attractive about this app is that it allows you to control your computer wirelessly using your iPad
This fantastic application can serve as a mobile point of sale for your business It allows you to accept credit card payments ndash including Visa MasterCard Discover and American Express A transaction fee of 275 is charged for every time you swipe a card The sale amount is transferred to your account within two working days
Once you download the app you can sign up and register for a unique card reader solution called the lsquoSquare Readerrsquo (this is free) Square Reader encrypts all card details and ensures that the transaction is secure Once you receive your Square Reader you can connect it to your device and are all set
The application also offers added features such as transaction history connecting to a receipt printer creating employee logins and more
AED 3699
PRICE
Free
PRICE
wwwthecfomecom 67
APPSTECH TALK
DOCUSIGNHave you ever been in a situation where your employees need you to urgently sign a contract but arenrsquot able to physically reach you in time DocuSign solves this problem with its easy-to-use eSignature feature In three easy steps you can sign important documents and securely send them to your intended recipient
First you have to import the document to your device ndash this could be from Dropbox Google Drive or another select applications You then place your signature or any other important legal information you need to include such as initials Once you have finished working on the document send it back via e-mail
Whatrsquos particularly great about DocuSign is the great emphasis it puts on security ndash so that users donrsquot have to worry about getting into any legal trouble
Use DocuSign and never miss a deadline again
Free for basic version
PRICE
MPAYAn initiative by the Dubai eGovernment Department mPay is a simple application that allows you to make important payments Once yoursquove signed up and entered your payment details you are good to go You can pay your Dubai Electricity and Water Authority (DEWA) bills Etisalat utility bills Dubai Police fines Recharge SALIK and much more
A handy feature is its lsquoauto-rechargersquo option which you can use to set automatic payments
Free
PRICE
Opinion CIMAPERSONALITIES
wwwthecfomecom68
NEW HORIZONSBy geetu Ahuja Head of gCC at CIMA
The days of the traditional accountant working within a small community in a small town in a small market have long gone CFOs are now being referred to as Chief Frontier Officers as they travel from market to market overseeing their offices overseas This new expanded role has distinct advantages for both the company and the CFO who gain new skills and new insights from foreign branches a single hand at the helm of many markets provides business perspectives on a global scale and benchmarks across the board
On a personal level working abroad also has huge importance Robert Walters the specialist professional recruitment consultancy recently conducted a survey
of almost 2200 employees across a variety of professions exploring a number of topics which ranged from working practices and attitudes to careers The results highlighted some notable trends particularly for finance professionals
In career progression for example the survey showed that 50 of all accountants see working abroad as either lsquoessentialrsquo or lsquoextremely usefulrsquo to furthering their prospects more than banking professionals lawyers and IT workers ndash a strong indication of how accounting professionals are thinking about their future either within their existing company or with opportunities elsewhere
Accountants with globally recognised qualifications obviously have a greater chance of gaining some experience abroad and the lsquoGen Yrsquo professionals in particular seem ready to pack their bags In a CIMA study conducted in the UK last year over a third of those seeking employment in the
next two years will prioritise opportunities abroad over those in their home countries many of them enticed by the career incentives offered by the Middle East
How quickly can they land what seems to be their dream job What are the realities It may be that the move is simply from one branch to another and the only significant difference is a view from the window but for those expanding rather than changing their roles we have seen a very real need for a depth and breadth of knowledge never needed before
As geographical boundaries are pushed ever-wider a CFOrsquos responsibilities are pushed with them For many finance executives the understanding of their own patch of land is no longer enough they now have to be aware of foreign markets up to speed with foreign trends and au fait with foreign laws There is a need for a new commercial awareness in geography as well as philosophy
As geographical boundaries are pushed ever-wider a CFOrsquos responsibilities are pushed with them
John vargheseQampA
wwwthecfomecom 69
BUSINESSSET UP YOUR
IN THE UNITED ARAB EMIRATES
TO
WAREHOUSESOFFICES INDUSTRIAL LANDFLEXI
Quick and easy company set-up
Less than an hour drive from Dubai
Complete cost-effective packages including licences and facilities
100 foreign ownership
Zero income and corporate taxes
Eligibility for UAE Residence Visa
BUSINESS SET-UP SOLUTIONS STARTING FROM AED 15000 (USD 4000)
RAK FREE TRADE ZONE PROVIDES
RAK Free Trade Zone Authority - Government of Ras Al KhaimahUAE (Ras Al Khaimah) Tel +971 7 2041111 (Dubai) Tel +971 4 7041875 (Abu Dhabi) Tel +971 2 6994888
Germany (Cologne) - Turkey (Istanbul) - India (Mumbai)
Call +971 7 204 1111 Visit wwwrakftzcom Join rakftz
PROCUREMENTANALyTICS
wwwthecfomecom 23
The CFO community has not yet awakened to the value of procurement
performance varies though companies with sophisticated reporting techniques experience less variable performance
The reportrsquos express aim to create a benchmark for procurement follows a wave of process monitoring which found notice in the manufacturing industry in the 1980s supply chain research and engineering in the 1990s and sales and marketing performance being closely tracked in the 2000s
ldquoProcurement costs can represent anything from 20 to 90 of a companyrsquos total cost going from the public sector to consumer goods Yet the productivity of the team that presides over the supply market interactions has a way of explaining their value add using savings that do not add up to the PampL impact measured by finance Savings definitions different baselines and cost avoidance all contribute to a murky aggregate view of the impact on the businessrdquo added Mariscotti
In the Middle East the challenge is fundamental ndash getting the spend data in the first place Companies admit they often do not have a clear categorisation of intelligence lack an agreed definition of savings measurement and generally position procurement as a pre-eminently transactional activity lacking the mandate to contribute value Procurement processes as a result remain centred around purchasing are paper based and lack transparency The first step for companies in the Middle East is to take a good look at what they expect procurement to bring
wwwthecfomecom24
Influencedspend
The inconsequential The brand leaders
Leaning up
Note All three segments start with a common hypothetical spend of 1000 to normalize the case example
Source AT Kearney analysis
Source AT Kearney analysis
TOP QUARTILE
mIDDLE-TIER 50
BOTTOm QUARTILE
704
764
644
522
527
396
42
30
(138) (25)
(63)
19
39
28
15
21
4
3
60
32
18
Sourcedspend
Units of yield
Post-compliance
benefits
Additionalbenefits
Financial results
delivered
19x
17x
middle tier
bottom quartile
TOP-QUARTILE PERFORMERS DELIVER NEARLy TWICE AS MUCH VALUE AS MIDDLE-TIER PLAyERS
THE CFO COMMUNITy HAS NOT yET BEEN ldquoAWAKENEDrdquo TO THE VALUE OF PROCUREMENT
Procurement is not on the radar for those who gave the wrong answers to three essential questions
leadership with accountability for performance is clear but either the measures are not clear or performance is believed to be weak variable or unknown ndash or a mix
leaners and leaders answered all three essential questions correctly and also answered most or all other questions correctly
to the table and how it should support the business To make a steep change companies need to understand the multiple benefits which will occur for investments made once theyrsquove allowed for stronger procurement practices
The benchmarking aspects of ROSMArsquos report speak directly to CFOs based on an existing widespread inability to track and improve this often unquantifiable nature of procurement practices According to the report the CFO community has not yet awakened to the value of procurement and Chief Financial Officers are thus divided into three segments The brand leaders (25) those leaning up (63) the pack (774) and the inconsequential (138)
Said Mariscotti ldquoThis is a way to give procurement a measurable quality that CFOs can quantify You have to know what yoursquore doing with relation to procurement in order to do it well ROSMA gives you a number which helps you understand how good your procurement is working as compared to peers It lets you know whether or not you could be doing something differentrdquo offers Mariscotti
CFOs have exemplified an increasing ability to share in a companyrsquos strategic efforts whilst expand their respective remits Procurement is emerging as the latest segment of this conversation Understanding its value beyond the transactional is the first step for CFOs to fully engage with harnessing the potential of procurement and grow to become a part of the elusively paltry portion of brand leaders indicated in ROSMArsquos report
PROCUREMENTANALyTICS
The pack(774)
Al Sharid is the Vice Chairman of Emirates Transport and has enjoyed a successful career in which the lionrsquos share of his tenure has afforded him a seat at the helm of the business
ldquoI remember when I first received the GM of Tata in the late 80s he said to me lsquoYou are the youngest GM I have ever metrsquo I was 29 years old at the timerdquo Looking at Al Sharidrsquos rapid ascent to the top of his organisation can be mind boggling to the average observer however to those few who strive to push themselves to their limits it is perhaps more common a reality As with any top performer we can often see their desire for results and impact
early on in life and with Saeed the first stride of his race to the top began with an accounting degree in university
It was 1976 and the excitement of the UAErsquos biggest milestone moment its inception just five years earlier still clung to the air from Fujairah to Abu Dhabi and every emirate in between A nation was being built Saeed had just finished high school and went to the United States where he was to study engineering
ldquoI was not yet 18 years old it was 1976 and I was sent to America to study it was the beginning of a dream and a young liferdquo says Al Sharid Unfortunately Al Sharidrsquos academic tour of duty came to
THE EmIRATI DREAm Saeed Al Sharid is today an elder statesman in the world of UAE accountancy With decades of know-how based on chairing a number of key Emirati organisations Al Sharid is today atop his own family firm In the following exclusive interview he shares the importance of education the evolution of a nation and just how being an accountant has driven his many triumphs
an abrupt halt when his father suddenly passed and he was forced to return home ldquoWe are seven brothers and I am the middle one so during tough times we always come together and during this period the strength of my family pulled me through I have three younger brothers and I felt I had to be there for them I felt responsible for them My mother played an omnipotent role in pulling us through this dark moment in our history The death of my father forced us to become more independentrdquo says Al Sharid
Now back in the UAE with his plans of studying abroad dashed Saeed looked at the local schooling system within which Al
26
InterviewPERSONALITIES
wwwthecfomecom
Saeedrsquos desire for results took its first stride with an accounting degree in university
By Shane phillips
27
InterviewPERSONALITIES
wwwthecfomecom
Ain University had just opened ldquoAl Ain University was the pride of the Emirate at the time the students were like celebrities The first batch of graduates were all promised 50000 AED from HRH Sheikh Zayed I was one year late so technically I should not have graduated with the first batch but I was determined I worked an extra course load did summer school and soon caught up to the first class 50000 AED in 1981 was like 5000000 AED today so I was very motivatedrdquo says Al Sharid
Saeed not only caught up with the other students but he wound up graduating atop Al Ain Universityrsquos first class of graduates with a 38 GPA ldquoWe Saeed Al Sharid
28 wwwthecfomecom
to the organisationrdquo he says Saeed first joined Emirates Transport after seeing a small newspaper advertisement for an accountantrsquos position He applied but initially they did not want to hire a local because locals were too expensive After a few months however they called him back for an interview and offered him a job
Initially Saeed struggled to get a promotion or even a raise He worked tirelessly to develop himself and kept detailed notes of his work After nearly two years went by with no promotion he requested to meet with the Chairman of the corporation to discuss his career The Chairman was a Minister making him even more senior than his title implied Al Sharid was courageous and determined ldquoYou should not stay silent you have to take initiative your future is in your handsrdquo says Al Sharid
ldquoI met with the Chairman and told him about my work and what I wanted to do He did not talk he just listened and that was it It was a 15-minute meetingrdquo says Al Sharid Three days after Al Sharidrsquos pivotal appointment he was promoted to Deputy General Manager Directly from a Trainee to DGM skipping all the roles in between at the age of 27 years old They doubled his salary and catapulted him into a senior leadership role
ldquoI felt it was quite strange to move up that fast and personally was not sure I could handle the job I had a lot of resistance from the board I had people in their 50s reporting to me and they were not happy about it So I just took a step back and did not try to get involved in their work too fast I went slow and watched my step This was a very important
ldquoThe UAE was a brand new country and a lot of work was being done to develop the nationrdquo
never had any idea of a career path and there was no such thing as career counsellors or lsquocareer servicesrsquo at the school So when you graduated most people just joined the Ministries The UAE was a brand new country and a lot of work was being done to develop the nation The Federal Government paid the highest and so one just joined them There was no grand vision or dream that I was off and chasing In those times you simply tried to do the next best thing So I ended up working in the Ministry of Health as an accountant Back then a university degree was a veritable qualification and it had a lot of market equity today it wonrsquot even get you in the doorrdquo
As the Middle East market evolves not only are university degrees becoming more common but so are post graduate degrees such as MBAs and even PhDs As such the competitive positioning of professional qualifications are gradually eroding over time
ldquoTo stay competitive executives today will require deep and specialised knowledge of their respective industries an intellectual arbitrage that provides superior results To beat the market to manage the risks to develop a sustained competitive edge For this executives need to stay in a role for the full strategic cycle which is at least four years in durationrdquo says Sharid In the case of Al Sharid he was there for 33 years
ldquoDo you just want a job or are you looking to make a contribution to your company Too many young people today are just looking for a title or a position The difference between those who make it into senior roles and stay there is the desire to create impact to add value
InterviewPERSONALITIES
2012year Moodyrsquos upgraded the UAE economy from developing to emerging
37The UAErsquos global rank for GDP
STAT FACTS
moment for me to gain valuable leadership experience early on To make my learning curve even steeper the General Manager quit after two years and I became the GM at the age of 29 years oldrdquo explains Al Sharid
He ascended to the top job in less than five years and stayed in the position for almost twenty years He was totally committed and could even be found in the bus yard at four in the morning to greet the drivers as they started their shifts ldquoThe key to being successful in business is to keep your finger on the details Some people let the details slip and if this happens you will suffer I get into the yard I meet the drivers I meet all the staff If you saw us you will not know who was the GM or who was the driver You have to realise people will never work for you they will only work with you To me Emirates Transport is like my familyrdquo says Al Sharid
When asked what his keys to success are he says ldquoI think if I was not an accountant I would not be a good leader I would not be a good manager In my opinion trying to do business while not understanding accounting is like getting into the ocean and not knowing how to swim you will drown The Chief Executive Officer who does not know how to create the financial statements is always at the mercy of his Chief Financial Officer He cannot take any big decision on his own and he will not even be able to challenge the CFO Accounting is the bedrock of any business and a critical skill set for any leader No one can argue with this factrdquo says Al Sharid
With over 20 years of experience in tow and the related chairmanships to boot Al Sharid
ldquoTrying to do business while not understanding accounting is like getting into the ocean and not knowing how to swim you will drownrdquo
has since early last year partnered with his family to form Al Sharid Auditing Though the Emirati youth is not as keen to pursue positions related to accountancy as Al Sharid was he feels that there is hope to close the gap
ldquoIt is difficult to find an Emirati expert I studied the audit market specifically and there were others like me then But now you break Emirati auditing involvement into three categories The first involves the big firms This is followed by individual smaller enterprises But thirdly a lot of locals opt to work with the government also Most are not managing their own firms they just have a partnership and they are building thatrdquo Al Sharid explains
ldquoAl Sharid Auditing however is a firm that includes my brother and our two sons which make up a body of qualified professional auditors We established this firm last year and work closely with the government We decided to make one firm together instead of having many smaller entitiesrdquo
Moving forward Al Sharid plans to grow his familyrsquos firm by applying the very belief system which has catapulted him to his position of power Marketing concerns which are designed to furthermore announce how tailored Al Sharidrsquos offerings are at present a key variable to forging ahead
Said Al Sharid ldquoMoving forward wersquore focusing more on the marketing of our firm Itrsquos a matter of not exactly expanding but going over the right deals The market is tough and the small jobs are easy but we donrsquot need them We donrsquot want to be in many rooms we want to be in the important onesrdquo
29wwwthecfomecom
InterviewPERSONALITIES
1UAErsquos rank among GCC nations for chosen hub of all major accountancy bodies
STAT FACTS
Latest insights from PwCrsquos 15th Annual Global CEO Survey revealed that 59 per cent of CEOs see emerging markets as more important than developed markets to their future What is making emerging markets such a pressing priority for C-suite executives Why are emerging markets increasingly grabbing headlines
Emerging markets are large fast-growing and ambitious markets best known for being the growth engines of todayrsquos global economy Research (1) suggests that emerging market countries are expected to amount for more than 60 per cent of global GDP growth ndash a clear indication of the wealth of opportunity they present
Understanding emerging marketsBased on estimates by the International Monetary Fund emerging economies are expected to grow two to three times faster in comparison to developed nations Explaining this fast-growth and the rise of these emerging markets an article on Forbescom details that ldquoduring the US housing crash and resulting credit crisis of 2008 world markets were saved from a total disaster thanks to the big emerging markets ndash mainly Brazil India and China The global credit crisis was one of the longest deepest and most painful in history It toppled Wall Street icons like Lehman
The following report explores emerging markets from West to East which are at the helm of economic development trade and innovation and highlights what their rising popularity means for the growth of your business
Brothers required government bailouts of bulge bracket banks and shocked the global economy with a deep economic recession and even a deeper crisis of confidence Its most important legacy though may be one that has yet to fully unfold the crisis revealed a new world order in terms of economic and market dynamics Emerging market economies finally arrived as
30
Market IntelligenceANALyTICS
wwwthecfomecom
ENTERING EmERGING mARKETS STRATEgIES RISKS ANd OppORTuNITIES
Projected annual GDP growth 2014 amp 2015
PANAMA
67
PERU
RANK42
55
Projected annual GDP growth 2014 amp 2015
Ease of Doing Business
RANK55Ease of Doing
Business
TOP TEN MARKETS
(1) Source here Accenture Research ldquogearing up for growth ndash five imperatives for success in emerging markets 2011 Henry Egan and Armen Ovanessoff
31
Market IntelligenceANALyTICS
wwwthecfomecom
LATVIA
CZECH REP
MALAYSIA
THAILAND
SOUTH KOREA
CHINA
RANK75
41
21
50
45
35
74
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
CHILE
RANK 34
43
Projected annual GDP growth 2014 amp 2015
Ease of Doing Business
RANK 24Ease of Doing
Business
Ease of Doing Business
RANK 6Ease of Doing
Business
RANK18Ease of Doing
Business
RANK 7Ease of Doing
Business
RANK 96Ease of Doing
Business
POLAND
32
RANK45Ease of Doing
Business
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
Source httpwwwbloombergcomnews2014-01-29qatar-china-top-ranking-of-frontier-and-emerging-marketshtml
powerful essential and permanent contributors to global economic growth and sustainabilityrdquo
Bloombergcom recently ranked the top emerging markets based on their performance on 19 economic financial political and social indicators In order of ranking the top ten markets were
CHINA
SOUTH KOREA
MALAYSIA
CHILE
THAILAND
PANAMA
PERU
LATVIA
POLAND
CZECH REP
1 6
2 7
3 84 9
5 10
Market IntelligenceANALyTICS
32 wwwthecfomecom
Making an entryIf your business is looking to enter any of these emerging markets itrsquos worth considering the following checklist
1 Assess your readiness The biggest mistake you can make is to enter a market without proper evaluation of your business Donrsquot do it just because everyone else is Like every other major business decision be sure to speak to your Board of Directors partners investors stakeholders and most importantly your CFO and certified accountants Make a business plan enlisting your objectives goals investment strategy potential risks etc
2 Research research research Do your homework Treat emerging markets as any other international expansion venture and do thorough research on the new market ndash Who are the competitorsWhat is the price point for your product What are the customer demographics What kind of infrastructure do you need for the manufacturing production or distribution of your product
3 Understand the legal framework Emerging markets might not have rules and regulations as clearly spelled out as your home country Invest some time and money in understanding how business procedures work A very obvious area of focus for UAE-based companies is tax Since the UAE is a tax-free economy companies arenrsquot exposed to tax accounting and other legislation surrounding
ndash failing to adapt to the needs and expectations of the local customers is surely a recipe for failure Time and again companies havenrsquot been able to create a customised offer and have had to exit these markets with huge losses A success story however is that of the Haier Group Haier famously introduced washing machines to specifically suit the water pressure levels in the households of India ndash an emerging market strategy that worked very well in their favour and helped them become leaders in that sector Another great example is that of Coca-Cola as explained in an online Reuters article by Matt Reilly ldquoIn Brazil Coca-Cola has used social media to better understand consumer preferences and has developed a successful local network to supply traditional Coca-Cola products as well as fruit juices tailored to local tastesrdquo
7 Local currency This is a complex yet critical area to consider when entering a new market Ask yourself questions such as ndash What is the local currency rate How does it compare to the currency in your home country Is the country import-led or export-led and what impact can this have on the global value of the currency Remember that fluctuations in currency rates can hugely effect your overall investment and thereby the return on investment
8 Build partnerships When entering an unknown territory it is quite useful to have the backing and support of peers who can help you in case of unforeseen challenges This is
this Another area to consider is corruption ndash emerging markets are notorious for high corruption red-tape and bureaucracy Speak to your company lawyer to assess these areas and take proper measures to avoid them before-hand
4 Invest in local talent Working with people already accustomed to the new market avoids the hassle of relocation and reduces costs But more significantly gives you skilled talent to work in these unique environments This also works in favour of your company as it gives you a clear understanding of the kind of compensation packages you will have to offer to your employees For instance employees based in China might want high remuneration and low healthcare benefits while in India it may be quite the reverse Recruiting local talent will also have a trickledown effect ndash your employees will easily be able to cater to the local customer needs without the need for intense training
5 Supply chain 44 per cent of business leaders surveyed consider accessing the right supply chain capabilities extremely or challenging in emerging markets according to Deloittersquos Globalisation Survey Make sure that you know who your suppliers will be what the production costs are whether their production procedures fit your time constraints and if the final product matches your level of quality
6 Cater to local market demands This is one of the most important aspects of all
Do your homework Treat emerg-ing markets as any other internation-al expansion venture
Market IntelligenceANALyTICS
33wwwthecfomecom
the very reason why Mergers and Acquisitions are a popular way to enter into emerging markets Many companies piggyback on their clients who are entering these markets For instance if you are an IT consultancy working on a major project for a manufacturing and trading company with operations across India and China you can use their resources and expertise to explore opportunities in these countries
Remember to consider these steps every time you enter a
new market as every locality has its own set of unique needs One strategy doesnrsquot fit all
Surviving fierce market conditionsWhile the massive opportunity that lies within emerging markets paints a pretty picture businesses need to be wary of bottlenecks such as corruption volatility gaps in laws and regulations and strong competition There have been several high-profile cases of multinational companies withdrawing from emerging
markets owing to immense corruption pressures
There is also a high percentage of inherent risks in these markets which amount to many companies not succeeding in their first attempts It is important to take your time when adapting to these markets and fully understand the business dynamics Following recent case studies and going over the lessons learnt by multinational companies who have made an entry into these markets consider the below
bull Is your companyrsquos head-office ndash and senior management ndash located in your home country without any C-level representation in the new emerging market
bull Are you focusing all of your resources on doing business in the emerging market at the cost of losing profits in your home market
bull Have you researched local competitors in these markets who may already have a strong standing and proven models of success
bull Are you using the same ldquoentry approachrdquo and business model across different emerging markets
If your answer to one or more of these questions is yes it may be time to re-evaluate your presence in these markets and map out a different strategy
Finally remember that no matter what the outcome of your admission to these markets might be your business is sure to emerge out of this stronger tougher and ndash of course ndash ready for a new challenge
of companies believed they had invested more resources in
emerging markets than was required
entered a market without fully assessing the ability of the supply chain to support the expansion
entered with the wrong pricing model and an inappropriate
operating model
CONSIDER THE RISKS
48
24
20
There is also a high percentage of inherent risks take your time when adapt-ing to these markets and fully understand the business dynamics
Source Emerging markets expansion and the supply chain Economist Intelligence unit survey conducted on behalf of EY September 2010
34
CIMA INTERVIEW
wwwthecfomecom
The Chartered Institute of Management Accountantsrsquo (CIMA) Managing Director Andrew Harding visited Dubai to host the Institutersquos seminar on global management accounting principles In the wake of CIMA revising their well heralded syllabus Harding discussed with CFO Magazine what the newest edition held how CIMA is applying a digital focus to its courses and just how CFOs can gain from it all
CURATING CURRICULUm
35
CIMAINTERVIEW
wwwthecfomecom
can give CFOs something they can take and something they can measure their own management accounting services against They can benchmark using this and they can utilise this to see their progress
Part of that is having professional management accountant in place I donrsquot think the landscape matters I believe that there is a common business need wherever you may be around the globe
All of the emerging markets need these skills The first aspect that accounting schools teach is about auditing skills because theyrsquore interested in protecting investments Then they teach you how to keep your business sustainable and to have a sustainable business you need to have a management accountant in place So itrsquos not just here in the UAE where we see these demands we see the same demands in China Indonesia and other powerhouse economies We see their skills shortages and we see the need for solutions in those areas
Talk to me about how this new syllabus works to promote the evolution of a CFOThis syllabus that wersquove
Can you expound on just what can be found within the new CIMA syllabusWe just revised the syllabus we do that every four to five years What we have done this year is a very significant revision It is based from a complex study that we have carried out to over 3000 people from 200 companies globally It is the very first revision since the joint venture with CIMA and AICPA So this has allowed us to attain a syllabus rich with all the data from all the continents in the world For the first time wersquove had real involvement from companies in the USA in this project
Why is the collaboration between AICPA and CIMA significantMost important is the Chartered Global Management Accountant (CGMA) designation that AICPA and CIMA both issue for qualified management accountants Wersquoll have a common curriculum and common examination which will begin on January 1 which gives us a global designation for management accountants wherever they are around the world There are plenty of accounting bodies who claim to be global but actually this is the only
genuinely global designation This is because it has the only one with a North American participation in it So we can say that the CGMA will be just as well-recognised in the USA as it is in Dubai
With the global landscape in mind how do you create an even objective that applies to localities which may prove widely differentialThe landscapes are different but businesses have common needs wherever they may be What wersquove particularly seen since the global financial crisis is that companies are actively looking to build management accountant capability to build that capacity within their organisations They donrsquot want to have a poor quality of information that lacks insight being used in their businesses So they see management accountants can bring solutions to that As a result of all the work wersquove done with companies who participated in the syllabus wersquove also put together a series of what we call Global Accounting Principles This is a series of principles which describes what good management accounting looks like and what top quality management accounting in a company should be producing This then
ldquoCompanies are actively looking to build man-agement accountant capability to build that capacity within their organisa-tionsrdquo
36 wwwthecfomecom
worked on acknowledges the skill set needed by professionals throughout their career Therersquos a base level of competence that is needed but beyond that there is more There is business acumen the ability to communicate and influence and finally the ability to lead So you start off enhancing your raw technical accounting skills Then you need to place that into the context of the business that you are in Then as you move forward and as you rise to become the CFO yoursquoll need the others You have to learn how to present your work in a way that can influence and make an impact in the business The final piece is the ability to lead projects and other functions and to a great extent lead the board of directors Thatrsquos how the context works itrsquos not just about technical knowledge
How do you find that CFOs in the GCC region are responding to this programmeThe CFO has a real challenge on his hands now In 1975 80 per cent of corporate value is showing on the balance sheet By 2010 that dropped to less than 20 per cent Your traditional PampL reports no longer reflect the value of the business or how the business drives value
All things that should be of interest to investors is missing With things like the integrated report initiative wersquore starting to see the other dimensions that add value to business For CFOs thatrsquos all about strategic thinking and considering the long-term objectives Being articulate in implementing those strategies keeping in mind the risks and opportunities that the business faces We are also nowadays witnessing a whole new world of transparency around that
Are there electronic aspects to CIMArsquos advancing approachThe interactive case study simulates a real working situation and it tests how they can apply their knowledge in real life situations Theyrsquoll be presented with a scenario a few weeks before they take the exam so they can prepare for it They then go to an exam centre where they are asked questions about how they will deal with a certain situation in the real world Theyrsquoll get an email from the CFO giving them a certain task for a particular period of time We want to make it as close to reality as possible so students taking the exam will be assessing situations based on real life scenarios
ldquoThe CFO has a real challenge on his hands now as traditional PampL reports no longer reflect the value of the businessand [the role] must focus on strategic thinking and considering long-term objectivesrdquo
218KCIMA members worldwide
STAT FACTS
CIMA INTERVIEW
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
38
ERPANALyTICS
wwwthecfomecom
Faster more nuanced IT solutions are available to the modern day CFO Whilst Chief Financial Officers are called upon to analyse data across a number of spectrums the digital tools on hand are likewise being expanded to aid in focusing more squarely on the bottom line
ExCELLING WITH ERP
The global landscape is today firmly entrenched within a digital model As a result CFOs whom are called upon to take a larger role in a number of variables must also increase their abilities with respect to utilising the many upsides which tech innovations offer a business When surveyed about their most pressing concerns CFOs generally return a varying collection of responses Revenue growth regulatory changes and meeting quarterly goals are among the chief concerns Virtually every obstacle can be hurdled by way of maintaining the order of financial reporting and data which has long been
synonymous with the Chief Financial Officerrsquos remit A widening berth of ERP solutions is making this data all the easier to come by
Despite how sophisticated the market is today it was not long ago that ERP departments once spent days processing business reports
Said Rohan Tejura Assistant Vice President Focus Softnet ldquoTraditional ERP systems were solely data repositories Moreover these repositories werenrsquot real time and were incredibly dependent upon locational connectivity With the emergence of smarter development platforms more versatile devices and
39
ERPANALyTICS
wwwthecfomecom
more intuitive designs of system development the overall experience of the ERP now extends from data warehousing to reporting analysis trend mapping business intelligence and governance oriented capabilities Yet these solutions amazingly execute all of these deliverables via portable handheld devices and through cloud environmentsrdquo
New generation ERP systems must now be on the go whilst including up to the minute analytics to provide deeper insight into the business ERP Analytics tools use historical data captured from various business functions to provide valuable information for efficiency and business performance each incredibly priceless to a leading CFO
Finesse is an ERP provider which is continually addressing the transformation of output which the ERP industry is offering the equally transitioning role of CFO
ldquoWe provide end-to-end business management solutions to SMEs and Enterprises Our approach to ERP is much more than providing simply an operational management systemrdquo said Finesse COO Sunil Paul
ldquoWe believe that todayrsquos businesses need much more than integrating sales with inventory accounting and manufacturing but also to have seamless integration with all their sales channels including the point of sales ecommerce and inbound sales solutionsrdquo
A major im-petus of the ERP-cen-tered growth is based on how effec-tive com-prehensive real-time data proves to be for the CFO
40 wwwthecfomecom
before thereby creating new global benchmarks for overall economic growth
Microsoft Arabia CFO Sadrul Khan offered insight into just how far the knowledge economy has influenced regional financial leadership by explaining how one of the most prioritised technologies by CFOs in the region is social platform monitoring
ldquoOne of the five technology choices that CFOs tend to prioritise in boosting productivity efficiencies and faster decision making in the fast paced business environment which include a social platform that monitors trends customer sentiments and helps process mashable data for customer centricity and business growthrdquo said Khan
A major impetus of the ERP-centered growth is based on how effective comprehensive real-time data proves to be for the CFO Whether employed as on-premise ERP software-as-a-service or cloud-based solutions a nearly identical ethos is being utilised Allowing the CFO to quickly access the performance of all facets of a business is paying dividends in the boardroom a reality which is showing itself increasingly in the Middle East
The technologically-charged relationship between ERP solutions and the regionrsquos CFOs is expanding and as a result has catalysed what many see as GCC economic performance outstripping that of many economies outside of the region as a result
In order to compete in todayrsquos fiercely competitive environment organisations need to think both innovatively and out of the box They require more insights about their business and their customers and need to ensure that they are able to meet the expectations of their internal as well as external stakeholders Enormous amounts of data both structured and unstructured is continuously being generated within the internal and external systems of the organisation which if analysed can be of immense value both to the business and subsequently the stakeholders associated with the organisation
With the the era of CFOs labouring over spreadsheets now in the past given how many business frontiers have become so dependent on mobile options such as the cloud more and more tech companies are providing the regionrsquos CFOs with information technology that converts traditional internal and external data into rich visual insights This information is then used for faster decision making and provides the ability for a CFO to assess manage and control risks Regional CFOs have grown enabled to drive corporate strategy accordingly demonstrating how the knowledge economy is now in full force amongst the Gulfrsquos corporates
Given that advanced IT has now become a regular CFO tool the regionrsquos CFOs are subsequently making faster decisions and driving internal growth models with greater speed and agility than ever
Tech companies are providing the regionrsquos CFOs with information technology that converts traditional internal and external data into rich visual insights
ERPANALyTICS
Donrsquot discoveritrsquos counterfeittoner afteritrsquos too lateOriginal HP Toner works first time every time1 unlike cheap toners which fail over half of the people who try it2 Non-HP toner can compromise your printerrsquos performance to give you streaked blotchy or faded prints Only original HP Toner cartridges deliver unmatched quality for the most professional-looking prints 100 of the time1
1 A QualityLogic 2010 study commissioned by HP comparing original HP LaserJet Monochrome print cartridges with nine brands of non-HP toner cartridges available in Europe Middle East and Africa for the HP LaserJet P1505 and P4015 printers HP 36A and 64A For details see wwwqualitylogiccomEMEAmonotonertestpdf 2 From a 2012 EMEA Lyra Research study commissioned by HP Results based on a total of 1050 HP Color LaserJet users who have used both original HP and non-HP toner cartridges of whom 552 experienced problems with non-HP cartridges
copy 2014 Hewlett-Packard Development Company LP
42
Private Equity ANALyTICS
wwwthecfomecom
The rise of PE-backed acquisitions is forcing CFOs to develop an entirely new set of skills
THE PRIvATE EQUITy CFO
The CFOrsquos utility in the world of private equity is without question on the rise The once-held belief of the CFO existing solely as the ldquoaccounting guyrdquo has been abandoned Over the last 20 years the role of CFO has become more demanding - requiring not just finance and accounting acumen but also a financial literacy in corporate planning risk management MampA assetliability management and regulation This evolution has been driven by a number of
key factors Yet the private equity industry which is now reshaping the corporate landscape through active ownership is by far the most significant factor driving change within the role of the CFO
PE-backed buyers today represent a larger percentage of overall buyers in the corporate acquisition marketplace than ever before Data provider Prequin estimates that as of June 2014 the capital raised by PE funds that
has not yet been deployed amounts to $114 trillion globally The result of this ldquodry powderrdquo is that a vast quantity of corporate acquisitions in the coming years will be undertaken by the private equity industry As such CFOs will be more accountable to demanding ldquosmart moneyrdquo shareholders than at any point in recent history Budgeting accounting and financial reporting will no longer exist as sole priorities but as a core competency among a
ldquoBy effec-tively using real-time data CFOs can create a dynamic process that proac-tively drives performance account-ability and value crea-tionrdquo
By Aaron Heidari
43
Private Equity ANALyTICS
wwwthecfomecom
robust set of complimentary and required skills Most of all the bar for CFOs is rising as PE investors will only accept above-average performance from their management teams
CFOs were once more reactive in function setting budgets based on other executivesrsquo plans and managing the flow of reporting to shareholders on a quarterly and yearly basis Today CFOs are required to become proactive managers of their respective businesses alongside their C-suite compatriots using a granular data-driven approach to aggregate analyse implement and report on every aspect of a companyrsquos operations
An important tool to drive this value creation process are KPIs Yet KPI structures including both aggregation and output are generally not up to the standards required of private equity investors prior to an investment being made
ldquoThe benefits of using KPIs and monthly reporting packages are significant By effectively using real-time data that is actionable and by partnering with functional area leaders within the organisation company CFOs can create a dynamic process that proactively drives performance accountability and value creationrdquo said Amanda Robinson Vice President of Accordion International in Dubai a consulting firm which is comprised of former private equity and investment banking professionals who
MENA region Cumulative Funds Under Management Since 2008
Source Zawya private Equity Monitor
19 636 20 36321 586
22 64323 506 24 250
-
5000
10000
15000
20000
25000
2008 2009 2010 2011 2012 2013
Cu
mu
lati
ve f
un
ds
($ m
)
$15mAverage MENA PE investment size in lsquo13
50Percentage of investment in IT and energy sectors
STAT FACTS
44 wwwthecfomecom
work with companies to deliver cost-effective project execution services
Active shareholders whose money it is being spent will typically require a data-driven justification before approving any budgets capital expenditures or new acquisitions Furthermore in many private equity backed companies the use of debt and the matching of shorter-term bank financing with longer-term investments will only be considered after a robust analysis is conducted to understand the companyrsquos ability to service that debt in the future This evaluation is not simply to identify revenues expenses and profits Itrsquos about drilling down into every transaction and rooting out data processing and reporting At least that is the expectation
The most valuable CFOs are those who have the ability not just to scrutinise and understand the financials but all also possess a wider grasp of the underlying data which truly comprise the business As an investor who has just acquired a stake in a new business I want a CFO who can manage the transition and stay ahead of my expectations Most of all a CFO should impress upon the companyrsquos shareholders a new way of doing business The first 100 days of an acquisition are said to be the most important During this period the CFOrsquos worth will be established when the new financial plan is due and the platform for the next five years of growth is presented
A CFO should man-age the tran-sition stay ahead of expectations and impress upon the companyrsquos shareholders a new way of doing business
Investment Volume By Sector Since 2006
Investment Volume By Sector in 2013
Source Zawya private Equity Monitor
1
3
30
17
3
28
3
4
6
4
6
5
17
9
9
6
9
5
8
6
6
2
3
10
Education
Education
Information Technology
Information Technology
Other
Other
Telecoms
Telecoms
Media
Media
Transport
Transport
Oil amp Gas
Oil amp Gas
Healthcare
Healthcare
Consumer goods
Consumer goods
Food amp Beverages
Food amp Beverages
Leisure
Leisure
Manufacturing
Manufacturing
ANALyTICS
Private Equity
2000857 NBAD ratibi mag ad 200x268 Finalindd 1 92514 1017 AM
46 wwwthecfomecom
THE FUTURE OFACCOUNTING EDUCATIONAddRESSINg THECOMpETENCY CRISIS
Have you ever stopped to think about how the accounting profession has changed since you graduated from college Recent graduates can answer this question by reflecting on the last two or three years whereas for other more seasoned professionals answering this question requires a bit more thought and memory searching Indeed we can all think of ways that the field of accounting is remarkably different today from the one we likely envisioned during our college daysmdashregardless of which decade we each donned our cap and gown This gradual transformation of the accounting profession leads to two important questions related to competencies bull Which competencies are important for success inaccounting todaybull Were these competencies consciously developed as partof your accounting degree programme
We suspect that more than a few of you would answer ldquonordquo to the second question Put another way our profession may be facingmdashmore so than at any time in the pastmdasha ldquocompetency crisisrdquo that is a gap between the competencies needed for professional success and those taught in our college classrooms today We propose a three-pronged strategy or ldquogame planrdquo for overcoming this competency crisis and in turn better preparing accounting graduates for the challenging world they will face First all of us accountants need to understand the changes that have already taken place in our profession and perhaps more importantly anticipate the changes that are on the horizon Second we need to educate ourselves and future generations of accountants so that as a collective group we can deliver the expanding set of competencies demanded in todayrsquos dynamic organisational
contexts Third as professional organisations and as individuals we need to think beyond ourselves by asking How can I (or we) help the accounting profession address the competency crisis
A Shift Toward Integrated ThinkingMany articles and white papers have been written that describe in detail the changes that have occurred in our profession over the last few decades but for our purposes wersquod like to distill these changes down to one crucial idea How does the accounting function add value to an organisation Accountants have evolved from support-oriented personnel who hand off information to others who actually make decisions into business partners who ldquohave a seat at the tablerdquo with managers
By peter C Brewer James E Sorensen CpA CgMA and david E Stout
47wwwthecfomecom
1048576bull What regulatory risks mayaccompany the proposal
1048576bull What social and environmentalfactors will we face if for example the proposal requires investing in overseas operations
1048576bull What types of employeeresistance may arise if we implement the proposal and how will we overcome the root causes of any such resistance
1048576bull Can and how should we valuefuture options associated with the proposal such as expanding or contracting the investment over time as new information becomes available
1048576bull Should we use debt or equity tofund the proposal
In short accountants have evolved to become integrated thinkers who enable EPM by partnering with managers across the organisation to add value Yet as EPM has gradually become the centrepiece of our professionrsquos value proposition accounting education hasnrsquot done enough to embrace it To overcome this gap wersquod like to further suggest that the concepts of competency integration and EPM need to come ldquofront and centrerdquo as we move forward in educating the next generation of successful accounting practitioners
Accounting Education No Longer on the SidelinesRecently a task force consisting of members of IMAreg (Institute of Management Accountants) and members of the Management Accounting Section (MAS) of the American Accounting Association (AAA) addressed the competency issue How should accounting education change fundamentally to help close the competencies gap The efforts of the task force led to
cash flows and how to apply discounted cash flow (DCF) decision models such as net present value (NPV) is of foundationalmdashsome might say critical mdash importance But integrated thinkers draw on an understanding of organisational strategy coupled with a broader set of competencies (beyond what might be considered technical or foundational knowledge) when making these types of decisions For example they consider how behavioural issues may influence the capital investment decision-making process Perhaps the financial estimates contained in the NPV analysis are too optimistic because the manager who prepared the numbers has a vested interest in seeing the project approved Decision makers also need to consider issues such as leasing vs buying a capital asset and the corresponding impacts on the financial statements and ratios that are tracked by investors and lenders What nonfinancial factors are associated with the proposed investment Add in the tax consequences of capital investment decisions coupled with the need to maintain internal control over any new business processes tied to these decisions and the need to think in an integrated fashion across a variety of accounting competencies becomes apparent
Furthermore becoming a true business partner with managers across the organisation requires more than simply integrating various accounting competencies It also means thinking like a business manager or a chief executive officer (CEO) Returning to the capital budgeting example an integrated thinker will ask questions such as
across the organisation Together they formulate and plan strategies then participate in collaborative decision-making processes that execute those strategies in a manner that adds stakeholder value Said another way accountants have evolved to become enterprise performance managers This shift in our orientation from a support function to an enterprise performance management (EPM) role has enormous implications for defining the determinants of success within our profession the most important of which involves becoming collaborators and ldquointegrated thinkersrdquo Take for example a common but important business decision process capital investment analysis Certainly technical knowledge regarding how to estimate relevant after-tax
48 wwwthecfomecom
expanding capital budgeting discussions to include financial statement impacts tax consequences and internal control issues integrates topical coverage across the External Reporting and Analysis Taxation Compliance and Planning and Assurance and Internal Control competencies shown in Figure 1
Third accounting curricula can incorporate a broader set of management competencies For example evaluating capital investment proposals from the perspectives of change management (Leadership) social and environmental issues (Ethics and Social Responsibility) regulatory concerns (Governance Risk and Compliance) and capital structure (Additional Core Business Competencies) brings a CEOrsquos perspective to the decision-making process
Fourth accounting curricula should include foundational competencies such as proficiency with spreadsheets and written and oral communication In the context of capital budgeting this may include asking students to use Microsoft Excel to perform a sensitivity analysis and then to present their findings to the entire class
Working to Fix the ProblemAt this point although you may agree with us that therersquos a competency crisis within the accounting profession you may be wondering What does this have to do with me What can my organisation do to help address this so-called competency crisis The answer a lot Practice partners and academic partners can help the accounting profession overcome the competency crisis That said letrsquos take a closer look at the role of practice partners first
improvement) and accounting competencies (external reporting and analysis planning analysis and control taxation compliance and planning information systems assurance and internal control and professional values ethics and attitudes) Of critical importance to the framework is the assumption that the set of competencies contained in Figure 1 would be developed and integrated over time through a blend of formal education (including continuing education) training and job experience
What levels of integrationmdashon the road to developing integrated thinkers in accountingmdashare possible First accounting educators can integrate within a single accounting competency So referring back to our capital budgeting discussion teaching computational models such as NPV analysis coupled with a review of various behavioural issues associated with capital investment decisions would be an example of integrating within the Planning Analysis and Control competency listed in Figure 1
Second professors can integrate across accounting competencies For example
a recently published article that contains a proposed framework for accounting education reproduced here as Figure 1 The framework is general in the sense that itrsquos meant to apply to all accounting students not subgroups based on career specialisation such as tax assurance services corporate finance and the like Itrsquos based on the idea that accounting educators can better prepare students to deliver our professionrsquos EPM value proposition through integrated competency-oriented curricula (For more see ldquoFocusing Accounting Curricula on Studentsrsquo Long-Run Careers Recommendations for an Integrated Competency-Based Framework for Accounting Educationrdquo in the May 2014 edition of Issues in Accounting Education)
A glance at Figure 1 reveals three levels of competencies foundational competencies (communication ability to leverage technology and analytical thinking and problem solving among others) broad management competencies (including leadership ethics and social responsibility and process management and
Proposed Competencies-based Framework for Accounting Education
FOUNDATIONALCOMPETENCIES
ACCOUNTING COMPETENCIES
BROAD MANAGEMENT COMPETENCIES
leadership
ExternalReportingamp Analysis
PlanningAnalysis
amp Control
TaxationComplianceamp Planning
InformationSystems
Assuranceamp InternalControl
ProfessionalValues Ethics
amp Attitudes
Communication
Quantitative
Interpersonal
Technological
Analytical Thinking ampProblem Solving
Ethics amp SocialResponsibility
ProcessManagement ampImprovement
GovernanceRisk amp
Compliance
AdditionalCore BusinessCompetencies
Although you may agree with us that therersquos a competency crisis within the account-ing profes-sion you may bewondering What does this haveto do with me
A practice partner should be or become a CMAreg (Certified Management Accountant) maintain professional certification by completing required Continuing Professional Education (CPE) hours and regularly read the IMA publications Strategic Finance and Management Accounting Quarterly
In addition there are a number of excellent resources that deal with topics covered in this article and that IMA makes available to its members
Strategic Finance PowerPacks(wwwimanetorg SFPowerPacks) These are resources focused on contemporary topics similar to those discussed earlier Current offerings include Risk Management Strategic Planning IT Skills amp Software and Internal Controls Each PowerPack includes a combination of resources such as research studies articles and links to webinars
Statements on Management Accounting (SMAs)(wwwimanetorgresources and_publicationsresearch_ studies_resourcesstatements on_management_accounting aspx) SMAs represent monographs classified into one of the following six categories Leadership Strategies and Ethics Technology Enablement Strategic Cost Management Business Performance Management Finance Governance Risk and Compliance and the Practice of Management Accounting Multiple items are available within each category For example the Practice of Management Accounting category includes (among other items)
49wwwthecfomecom
the Definition of Management Accounting and Implementing Shared Service Centres
Research Studies (wwwimanetorgresources_and_publicationsResearch_Studies_and_ResourcesAll_reportsaspx) The ldquoThoughtLeadershiprdquo section of IMArsquos website includes research covering a broad range of issues classified into seven categories For example under the ldquoGlobal Business Environmentrdquo category the following two research reports are available ldquoKey Differences Between IFRS and US GAAP Impact on Financial Reportingrdquo and ldquoCosting Methodologies and Cost Management Practices in the Peoplersquos Republic of Chinardquo
IMA Leadership Academy (www imanetorgprograms_events leadership_academyaspx) As described on the IMA website this programme is designed to assess a memberrsquos leadership status enhance that individualrsquos skills (principally through monthly webinars) and recognise leadership achievements These benefits are free to members
How You Can Make a Bigger Impact In addition to attending local regional and national IMA meetings consider inviting a small group of students to each chapter meeting This could be a wonderful (and relatively low-cost) option for mentoring aspiring accountants and finance professionals providing networking opportunities and introducing students to cutting-edge issues regarding the practice of management accounting Joining a university accounting
advisory group may be another way to influence the development of EPM in that institutionrsquos curriculum design
Other methods to enhance EPM in your organisation include (1) forming user groups within your company your local IMA chapter or your industry to review and share EPM experiences (2) encouraging advancement in the firm to be linked to EPM proficiency (3) focusing your companyrsquos recruiting efforts on candidates who display a background in andor understanding of EPM and (4) organising cross training within your company to enhance a mutual understanding of each otherrsquos respective roles
Finally visit the Competency CrisisTM website (http competencycrisisorg) set up by IMA to unite the accounting and finance constituencies professionals students employers academics and professorsmdashand explore competency issues through the lens of each stakeholder group The site is designed to ldquoencourage a discourse spur action and create a community dedicated to resolving the serious crisis of competency present in the professionrdquo Special sections of the website are devoted to educators students and employers professionals
Our Partners in Education Much like a practice partner an academic partner should be or become a CMA maintain professional accreditation by completing CPE hours and regularly read IMArsquos publications
Academic members of IMA can pursue and actively promote the CMA programme at their respective institutions
50 wwwthecfomecom
IMArsquos website contains helpful resources including an exam content overview content specification outlines for each of the two parts of the CMA exam and learning outcome statements The current exam covers some of the professional competencies represented in Figure 1 A summary of changes to exam content which will be effective in January 2015 is provided on the IMA website in News amp Media Relations which is located under ldquoAbout IMArdquo (See the press release dated March 24 2014) Other helpful resources include ldquoICMA Announces CMA Exam Content Changesrdquo in the April 2014 issue of Strategic Finance as well as ldquoManagement Accounting Career Readiness Shaping YOUR Curriculumrdquo
These forthcoming changes are based on the most recent IMA study of the knowledge and skills needed by management accountants from the view of CFOs controllers and other accountingfinance professionals from around the world
Also consider taking a group of your students to the IMA Student Leadership Conference held each November The Conference provides excellent networking opportunities for you your students and practicing professionals Students can learn firsthand from Conference presenters the challenges and opportunities facing finance and accounting professionals today
Moreover if your institution doesnrsquot currently have an IMA Student Chapter consider forming one One of the authors of this article David Stout reinstituted the student chapter at his school (Youngstown State University) after travelling with a group of his students to the IMA
Student Leadership Conference in Cleveland Ohio Through an IMA Student Chapter on campus students are able to work closely with a sponsoring local IMA chapter and bring to campus speakers who are experts in a wide range of topics including those discussed earlier in this article Each year student chapters compete for an Award of Excellence (AOE) and recognition as an Outstanding Student Chapter In addition IMA student members are able to engage in networking activities leadership training mentoring and community service programmesmdashall through their local chapter
You also might consider volunteering to serve as a Campus Advocate In this role yoursquoll represent IMA in all major matters of interest to your students (scholarship opportunities starting a student chapter mentoring and the like) and to your institution (for example leveraging IMA resources to advance the relevancy of the accounting curriculum use of educational case studies published in the IMA Educational Case Journal and access to IMArsquos ethics curriculum)
And if you havenrsquot yet done this ask IMA to endorse your accounting programme (information is available at www imanetorgeducator_resources indexaspx) This programme is designed to identify business curricula that meet the quality educational standards required to prepare students to earn the CMA designation Endorsement is based on an analysis of the curriculum and topics covered on the two-part CMA exam Currently 12 programmes have been endorsed
Finally if your school has an IMA Student Chapter consider participating in the annual IMA Student Case Competition where students are asked to propose a solution to a real world problem (Cases are solicited each year by Raef Lawson IMA VP of Research and Policy and IMA Professor in-Residence) Finalists make their presentations at IMArsquos Annual Conference amp Exposition before a set of judges consisting of accounting faculty members and practitioners Each year a new case is published in the August issue of Strategic Finance for students to use for that yearrsquos competition
Working TogetherIn this article we have summarised the changes that have affected the accounting profession and provided a competencies-based framework for guiding accounting educators in responding productively to those changes As a management accountant you know that implementing change in any organisation let alone within an entire profession never comes easily To be successful in overcoming our professionrsquos competency crisis IMArsquos practice and academic partners will need to assume leadership roles in defining enterprise performance management as the cornerstone of the accounting professionrsquos value proposition
This article was orginally published in the August 2014 issue of Strategic Finance It appears here with the permission of The Association of Accountants and financial professionals in Business
We need to educate ourselvesand future generations of account-ants so that as a collec-tive group we can deliver theexpanding set of com-petenciesdemanded in todayrsquos dynamicorgani-sational contexts
THE POWERFUL AND THRIFTY OFFICE ALL-ROUNDERS
The new ECOSYS M3560idn series will astound you With their print speeds of up to 60 pages per minute they are among the most productive A4 bw multifunctionals on the market We nevertheless managed to keep their ecological footprint and total cost of ownership impressively low by using our well-known ECOSYS technology and equipping the devices with our renowned long-life components The result Not only less waste and lower maintenance costs but also less hassle for you and all your colleagues You will also greatly appreciate the many customisation possibilities of the devices equipped with KYOCERArsquos open solution platform HyPAStrade as it allows you to tailor the device to your needs So yes we are proud of our new range of MFPs and can hardly wait to share their numerous benefits with you
For more information please contactKYOCERA Document Solutions Middle East | PB Box 500817 DubaiUAE | Tel +9714 4330 412 | Fax +9714 4231 944KYOCERA Document Solutions Europe BV - wwwkyoceradocumentsolutionseuKYOCERA Document Solutions Inc - wwwkyoceradocumentsolutionscom
52
ACCAINTERVIEW
wwwthecfomecom
GLOBAL By ASSOCIATION
across the region from our key employers and learning provider partners to our active and growing student and member base I want to understand their challenges and priorities and how ACCA can work with them to help support the economic success of the region
What can a CFO gain from working with ACCAThe ACCA qualification is about complete finance professionals For CFOs it brings the technical knowledge vital to business success complemented with the strategic management skills and ethical competence crucial to an organisationrsquos success As an organization ACCA in the UAE brings CFOs access to that local and global network of peers and expertise along with our leading research and insights that help them to keep up to date on the issues that matter most
Are there any initiatives in place to leverage the recently announced partnership with AAA
How are the ACCArsquos many years of activity being applied to the Middle EastACCA has now had a presence in the UAE for well over a decade During that time we have established strong relationships across the Middle East epitomised by the recent signing of our Strategic Partnership with AAA As a national body in choosing to partner with ACCA they recognised the local and global perspective we bring We are continuing to work with students members and employers across the Middle East to build their networks knowledge and business success through events research and insights and access to a growing number of online resources
Which initial priorities are among your key aims upon joining the organisationrsquos efforts in the UAEIn the first few months I hope to build on the success of the team in the UAE My priority will be to meet as many of our key stakeholders
The Association for Chartered Certified Accountants (ACCA) provides its services across a number of international borders The recent announcement of Lindsay Degouve de Nuncques as the new head of the Associationrsquos UAE chapter further exemplifies the ACCArsquos reach based on her previous work in the UK Nuncques shares here what she brings to the Middle East and just how globalisation has driven her ascent
53
ACCAINTERVIEW
wwwthecfomecom
The strategic partnership with AAA is the first of its kind in the region Students who complete the UAECA qualification will be entitled to both the AAA and ACCA designations and ACCA members in the UAE will also be eligible to apply for AAA membership This is a very exciting development in the market and together AAA and ACCA will be working to deliver maximum value to all our stakeholders from this partnership As we launch the UAECA qualification this activity will start in earnest
Which key industries will you be spotlighting in the Middle East in the months aheadOur experience of working across all sectors and levels of organisations globally gives ACCA a unique insight into all types of industries We will continue to be working with employers across the spectrum in the months ahead to help them gain the insight and make the connections that drive businesses to succeed at whatever they do
ldquoThe ACCA qualification is about complete finance professionals For CFOs it brings the technical knowledge vital to business success complemented with the strategic management skillsrdquo
54
Islamic FinanceMARKET OUTLOOK
wwwthecfomecom
In its 10th instalment the Forum is hosted in Dubai as a direct result of the UAErsquos increasing importance in the world of global Islamic finance
THE WORLD ISLAmIC ECONOmIC FORUm LANDS IN DUBAI
In Dubairsquos continued quest for leading the world across a range of spectrums the Emirate accelerated its desire to become the worldrsquos leading hub for Islamic finance by hosting the 10th installment of the World Islamic Economic Forum (WIEF) Delegates from dozens of countries attended to take part in a three-day event held at Madinat Jumeirah which rests alongside Dubairsquos gleaming coastline Held under the patronage of His Highness Sheikh Mohammed Bin Rashid Al Maktoum the
Vice President and Prime Minister of the UAE and Ruler of Dubai key speakers included The Honorary Dr Zeti Akhtar Aziz Governor of the Central Bank of Malaysia HE Kairat Kelimbetov Governor of the National Bank of Kazakhstan The Honorary Datorsquo Sri Mohd Najib Tun Abdul Razal Prime Minister of Malaysia and HE Xavier Bettel Prime Minister of the Grand Duchy of Luxembourg
Launched in 2006 in Malaysia WIEF has grown in tandem with the increased
Delegates from dozens of countries attended WIEF to take part in the three-day event
sophistication and reach of Islamic finance After a successful event in London in 2013 amidst increased interest in Islamic finance across Europe WIEF relocated to Dubai where the local business structure is keen to host halal finance
Said Hamad Buamim President and CEO Dubai Chamber of Commerce and Industry co-organisers of the event ldquo[The forum] is the start of a new chapter of cooperation between Dubai and the world as part of
55
Islamic FinanceMARKET OUTLOOK
wwwthecfomecom
Dubai Capital of Islamic Economy visionhellipestablishing a unified regulatory authority to provide the framework for standards across halal industries will significantly accelerate growth Likewise we need to see increased cooperation and partnership between the public and private sectors This is already happening with great success here in Dubairdquo
The order of global cooperation needed to facilitate growth across the Islamic finance world was more than apparent at WIEF based on how many differing nations were represented at the event The exhibitorrsquos hall was populated with a number of key Malaysian stands representative of the Southeast Asianrsquos ranking as the global leader in Islamic finance Also present were companies from Saudi Arabia also a key locality in the worldrsquos halal industries An interesting yet prescient presence was of attendees from South Korea a nation which is eager to participate in Islamic finance and will be hosting the WIEF Pyeongchang Roundtable in December 2014
ldquoGangwon is a province located in Korea which is very interested in new business opportunities Wersquove realised the strength of the Islamic economy and have come here with many different companies The first type is based in real estate investment We also have companies which want to export their products to the Islamic economy based on their halal qualities And Gangwon will also be hosting the Winter
ldquoKorea is very interested in the strength of the Islamic economy and wants to export its products based on their halal qualitiesrdquo
56 wwwthecfomecom
$247trillionProjected value of halal products industry in lsquo18
125Muslim percentage of global tourism expenditure
STAT FACTSOlympics in 2018 and are presently seeking investments for this as wellrdquo said Seong-hun Kim a member of Gangwon Province Governmentrsquos Export Support Team
Dubai proved to be an excellent place for the event considering how well the UAE is able to so regularly corral international cooperation A key sign of this was witnessed recently when Luxembourg now considered the third most important base for Islamic finance globally opened a finance office in Dubai International Finance Centre The European nation also opened a euro200 sukuk earlier this year which was quickly oversubscribed
The prime minister of Luxembourg offered the WIEF audience a riveting speech which detailed just how international the Forum has become whilst encouraging more of the world to support the growing influence of Islamic finance
Said Bettel ldquoWe need to innovate more economic partnerships for growth We sometimes need to reengineer relationships but also have to make sure these relationships remain sustainable Growth in one country also brings growth to others as long as this is guided by free market initiatives Free trade and free flow of capital combined with innovation leads to prosperity We have all gathered here in Dubai to explore the future of Islamic finance and Luxembourg is also a pioneer of Islamic finance in Europe The Islamic financial sector has a major role to play in continued global growthrdquo
The Islamic Corporation for the Development of the Private Sector (ICD) is based in the Kingdom of Saudi Arabia where it manages an international fund worth $2 billion half of which is available for subscription With shareholders in more than 50 countries and a sovereign sukuk fund recently launched in West Africa the ICDrsquos CEO Khaled M Al Aboodi attended WIEF this year excited to participate in the global event
How does the ICD approach its attendance at the World Islamic Economic ForumI think the Forum is one of the best places for discussing the financial issues of the OEC member countries It has been around for ten years and has grown to become a very important platform for discussion Wersquore here to attend and listen but also to network Itrsquos a great networking platform and a place to share views whilst letting everyone know what we have to offer
How has Islamic finance changed over the yearsOf course itrsquos growing in a large scale Some of it actually needs more support particularly with respect to regulatory frameworks Wersquore trying to partner with many international organisations like the IMF to try to provide support to countries to adapt regulation for Islamic finance Sukuk issuance is one of the biggest issues that needs to be addressed because there is a huge amount of liquidity in this arena Due to issues related to regulation sukuk issuance can be costly But with the regulation we are confident it will be on a level playing field with other forms of finance Compliance is a major area where more work can be done The Forum started with a roundtable on sukuk which shows how helpful WIEF has been over the years
What type of work does ICD do internationallyICD helped the government of Senegal to issue the first sovereign sukuk This was successfully issued last summer Progressing in this manner is something wersquod like to see continue across West Africa in order to utilise its resources with aiding development in the region in mind
QampA WITH KHALED M AL ABOODI CEO OF ICD
Islamic FinanceMARKET OUTLOOK
OFFICIAL SPONSORS
ENDORSED BY OFFICIAL HOST OFFICIAL
COMMUNICATIONS PARTNER
MEYDAN HOTEL DUBAI UAE19 - 20 NOVEMBER 2014
WOMENOMICSthe next emerging market
TAKE PART in making change happen UNITE with business and through leaders from across the globe
PARTICIPATE to the expansion of a modern and inclusive economy
58
Gautam PradhanINTERVIEW
wwwthecfomecom
SUCCESS BEyOND BOUNDARIES
in other management roles such as strategic decision making mentoring and leading efficiency and productivity across a range of other departments and functions as well as a being a catalyst in ensuring that the boardrsquos vision for the organisation is achieved
A significant percentage of NMDCrsquos shares are owned publicly Does the CFO play a role in balancing the interests of the shareholdersAs a CFO balancing the shareholdersrsquo interests is definitely part of my responsibility In order to achieve this goal there needs to be a careful evaluation of each decision while keeping the short-term and long-term goals of the company in mind At NMDC we actively implement a system where we utilise a balance scorecard as a method of ensuring that all our primary objectives are met yet at the same time continuously enhance our relationships with our shareholders
NMDC has completed various projects across the Emirates Are there plans to move abroadAs NMDC moves towards becoming an international player our strategic expansion plans are focused in areas within the GCC region and India In line with this strategy we opened
How has a company with such a unique set of deliverables grown so consistently over the yearsOur organisation strongly believes that the core to our strength is the people process and equipment A strategic decision led by our Board of Directors and the senior management has been implemented that required us to consistently invest in these three aspects to help expand our business beyond the territorial boundaries of the UAE and at the same time enhance what we can offer which is relevant to these segments We attribute our success to the efforts which every employee contributes We also strongly believe in the ldquoWe can make it happenrdquo principle The management raises the index of performance while setting SMART objectives within the organisation and encouraging the employees to achieve them
How has your position as the CFO changed over NMDCrsquos 35 years of operationAs the market evolves and business dynamics change my role as the CFO has become complex and more challenging A few years back I was mainly focused on bookkeeping accounting and other financial responsibilities such as arranging bank facilities But moving forward I became more involved
The UAE is progressively becoming a hub for world-class infrastructure The country has duly impressed the rest of the globe with noteworthy land developments showcased across the emirates Among the remarkable landscapes found in Abu Dhabi are the Corniche Beach Yas Island and Sir Baniyas Island Behind these successful projects is NMDC the dredging division of Abu Dhabi National Oil Company (ADNOC)
In an interview with CFO Magazine Gautam Pradhan Chief Financial Officer NMDC shares an exclusive look into the companyrsquos international blueprint for growth and his dynamic role as a strategic leader of one of the best in dredging and marine construction in the Middle East
59
Gautam PradhanINTERVIEW
wwwthecfomecom
branches in Qatar Bahrain Oman and India This has paid rich dividends recently as projects of strategic importance are bagged in Qatar and Bahrain Furthermore NMDC (UAE) has recently played a key role as a leader of an international consortium with Royal Boskalis Westminister (Netherlands) and Jan De Nul Group (Belgium) for the awarding of the Suez Canal Dredging project in Egypt Moving forward we have devised a strategic approach that will enable us to play a key role in the development of Indiarsquos marine infrastructure
What are the global strategies that are part of the CFOrsquos responsibilitiesAs CFO understanding the macro economic scenario risk analysis and mitigating those risks are all a part of my responsibilities I also have to have a proper comprehension
ldquoA few years back I was mainly focused on financial responsibilities moving forward I became more involved in strategic decision making mentoring and leading productivityrdquo
Gautam PradhanINTERVIEW
60 wwwthecfomecom
of the challenges faced by the company in terms of dealing with foreign contracts direct and indirect taxes and hedging and managing the integration process These are essential to enhance shareholders wealth and mitigate undue risk
How significant is accountancy for NMDC in its operations Why exactlyAccountancy is the lifeline of any company it does not only record the finances it also reflects the health of the organisation The MIS reports analysis trends and statistical information go a long way toward effectively providing
the diagnostic approach essential for the company
How have NMDCrsquos environmental activities helped the companyrsquos bottom lineNMDCrsquos work is well-synchronised with our environmental activities and specifically with nature Our activities are closely linked to sand and water and we view such activities with strategic importance Projects such as increasing water supply to mangroves and beach nourishment help us support the environmental activities while adding to our bottom line
ldquoAccountancy is the lifeline of any company it does not only record the finances it also reflects the health of the organisationrdquo
A burgeoning slice of Abu Dhabi coastline
The largest business awards
in the GCC30th November Dubai
nominate now at wwwstarsofbusinessawardscom
Stars of Business has become an iconic awards brand like no other in the region It recognizes the very best SMEs across 26 business categories Itrsquos universally respected as scientifically assessed and unimpeachably judged
327000 SMEs across the UAE$234 billion estimated total revenue of the SME sector4974 Awards entries in 20131856 Individual company applicants
Presenting Partner Strategic SME Partner Gold Sponsor Gold Sponsor VIP Hospitality Partner Supporting Partner
Trade Facilitator PartnerTrade Credit PartnerLogistics Partner
Institutional Partner Institutional Partner Event Partner
OrganiserPublisherMedia Partner Media PartnerPort Authority Partner
62
David Allen INTERVIEW
wwwthecfomecom
What went into completing your bestseller ndash Getting Things Done (GTD)After twenty years of researching developing and implementing a methodology for achieving stress-free productivity based upon
thousands of hours spent desk-side with
some of the best brightest and busiest people in the world I decided to write the manual for it Thatrsquos what Getting Things Done is
What are the five phases of mastering workflowIn order to get
any situation under control so
you can focus you will utilise these five
steps Whether yoursquore managing your kitchen
or your company you will need to collect and capture what has your attention clarify what if anything to do about it organise it according to what it means to you review and reflect upon it in relation to
Todayrsquos evolving CFO is often caught between the world of business set-up generating revenue managing employees and building strong company infrastructure When can things actually get done What can one do to boost productivity and master workflow World-renowned business coach David Allen has the answers
PRODUCTIvITy PRINCIPLES WITH
DAvID ALLEN
63
David Allen INTERVIEW
wwwthecfomecom
those are greatly subvertedHow does one maintain a fair balance between the time spent planning and actually getting things doneYou simply need to spend just the amount of time you need to to trust that what you are getting done is the right thing to be getting done in the moment It takes as long as it takes to get to that point Why would you do anything less
How can one apply your core productivity and workflow principles to todayrsquos technologically driven environmentThe principles and their techniques are system-independent Whether you have meaningful input from the Internet your smartphone or a conversation in the hall you must engage with it equally Technology has simply increased the flow of input and ease of distraction in your world
There is a lot of talk about how connected wersquove become and how connectivity is driving tremendous business growth Does connectivity actually come with its fair share of downsides
Connectivity is obviously a two-edged sword We can have intimate productive and creative interaction instantly with someone on the other side of the world and we can just as easily be distracted and seduced into those engagements when they may not be the best use of our attention and resources Donrsquot shoot the medium Itrsquos all simply bringing attention to your clarity of direction and priorities or lack thereof
Could you share a few quick tips with our readers to instantly boost productivityWrite everything down that has your attention Decide the very next actions required to get closure on all of them Any next actions that require less than two minutes do instantly Park reminders of everything else somewhere that yoursquoll see when you can do something about them
We are currently facing a massive information overload What are some basic principles you could suggest to mentally organise such large amounts of dataConstantly ask yourself Where am I going Whatrsquos important and rewarding to me Is this information
the whole and then engage your resources with intuitive trust
As a CFO how can you transfer efficient workflow management skills to your employees Itrsquos very difficult to legislate processes for individuals ndash you can really only hold them accountable for their results But if you are managing your own commitments and intersections with them with integrity and rigour it will automatically force your team to ldquostep up to the platerdquo in their own behaviours in order to meet your standards If you request their complete list of their company projects and they canrsquot produce it thatrsquos a sign theyrsquore not in control If they make a commitment to you that they havenrsquot kept thatrsquos data about their performance GTD is simply about good operational business practices
With so many planning and organising activities in your methodology is there a risk of losing spontaneity as a strategistThe reason for these best practices is to optimise freedom creativity and spontaneity Without them
ldquoBut if you are manag-ing your own com-mitments and intersec-tions with them with integrity and rigour it will automatical-ly force them to ldquostep up to the platerdquo in their own behaviours in order to meet your standardsrdquo
64 wwwthecfomecom
supporting that Park whatever you find potentially meaningful somewhere that is easy to access when needed
Being an entrepreneur is a non-stop job How do you ensure that you have an adequate work-life balance Pay attention to what has your attentionmdashwith regard to anything Your health relationships career finances etc Notice when something might be ldquooffrdquo and make good decisions about what you need to do to get it back ldquoonrdquo again
Does your work teach people to be efficient or effective In essence they are the same thing Effective choices are generated by efficiency on a higher level If you want to implement strategy most effectively it demands utilising your resources optimally which is efficiency
Does motivation actually improve quality of work or purely quantityDepends on the focus of the motivation You can be motivated to work harder and you can be motivated to work smarter
What is your favourite productivity mantra that
you implement in your day-to-day lifeUsing my own in-basket and note-taking devices to capture potentially meaningful and valuable ideas and soon afterwards clearing all of them out by deciding what to do about them if anything
Your books seminars and other work inspires many individuals and businesses Who is your personal inspiration or role model I have many about many different aspects of my life The only person though that I ultimately trust as my best guide is my higher self which I try to access as frequently and clearly as I can
Finally what advice would you give to current business owners and aspiring entrepreneurs looking to gain complete control of their life and businessCapture what has your attention clarify what you need to do about it to get it off your mind organise the inventory of all your commitments at all levels review and reflect on all of that regularly relax and trust your inner wisdom to engage with the most appropriate thing in the moment
ldquoIf you want to implement strategy most effectively it demands utilising your resources optimallyrdquo
David Allen INTERVIEW
APPSTECH TALK
wwwthecfomecom 65
mAxImISE BUSINESS lsquoON-THE-GOrsquo WITH THESE HANDy APPS
ipAd SpECIAL
SAMSUNG UNvEILS GALAxY NOTE EDGE
Network
AP
Display
OS
Camera
Video
Audio
Additional Features
GoogleMobile Services
Connectivity
Sensor
Memory
Dimension
Battery
The availability of service may differ by country All functionality features specifications and other product information provided in this document including but not limited to the benefits design pricing components performance availability and capabilities of the product are subject to change without notice or obligation
Samsung Galaxy Note Edge Product Specifications
25G (GSM GPRS EDGE) 850 900 1800 1900 MHz3G (HSPA + 42Mbps) 850 900 1900 2100 MHz4G (LTE Cat 4 15050Mbps) or 4G(LTE Cat 6 30050Mbps)May differ by country and carrier
27 GHz Quad-Core Processor
56 inch (1419mm) Quad HD+ Super AMOLED (2560 x 1440 + 160)
Android 44 (KitKat)
Rear Facing 16 Mega pixel Auto Focus camera with Smart OISFront Facing 37 Mega pixel camera with f19Rear Facing Camera HDR (Rich tone) Selective Focus Rear-cam Selfie Beauty face Virtual Tour Shot ShotampMore Dual CameraFront Facing Camera Selfie Wide Selfie
Codec H264 MPEG-4 H263 VC-1 WMV7 WMV8 Sorenson Spark MP43 VP8 Recording amp Playback up to UHD
Codec MP3 AACAAC+eAAC+ WMA AMR-NBWB Vorbis FLAC()() Ultra High Quality Audio (~192KHz 24 bit) support
Multi WindowUltra Power Saving ModeVoice Recorder (Normal Mode Interview Mode Meeting Mode Voice Memo)Download BoosterS Health 35Dynamic Lock ScreenBriefingEdge screen UX Revolving Interaction Immersive apps(Camera Video S Note)Ticker board Express me Quick Tools Night Clock etc
Chrome Drive Photos Gmail Google Google+ Google Settings Hangouts Maps Play Books Play Games Play Newsstand Play Movie amp TV Play Music Play Store Voice Search YouTube
WiFi 80211 abgnac (HT80) MIMO PCIeGPS GLONASS BeidouNFC Bluetoothreg v 41 (BLE ANT+)IR LED (Remote Control) USB20 MHL 30
Gesture Accelerometer Geo-magnetic Gyroscope RGB IR-LEDProximity Barometer Hall Sensor Finger Scanner UV Heart Rate Monitoring SpO2 (Dependent on market)
32 64 GB Internal memory + microSD slot (up to 128GB)3GB RAM
1513 x 824 x 83mm 174g
Standard battery Li-ion 3000 mAh Fast Charging (Adaptive Fast Charging amp QC20)
wwwthecfomecom66
APPSTECH TALK
AIR DISPLAY
SQUARE REGISTER
Using this app you can connect your iPad to your computer and use it as an additional screen While working on an important presentation or sales proposal you can extend or mirror your computer screen on your iPad This app is compatible with both Mac and Windows computers Note that to use this feature you have to install Air Display on your iPad and a separate free app on your computer The computer and iPad also need to be on the same Wi-Fi network in order to work in-sync
For Mac users the app allows you to connect to up to four screens ndash all at the same time
Apart from the ability to convert your iPad into a wireless display whatrsquos also attractive about this app is that it allows you to control your computer wirelessly using your iPad
This fantastic application can serve as a mobile point of sale for your business It allows you to accept credit card payments ndash including Visa MasterCard Discover and American Express A transaction fee of 275 is charged for every time you swipe a card The sale amount is transferred to your account within two working days
Once you download the app you can sign up and register for a unique card reader solution called the lsquoSquare Readerrsquo (this is free) Square Reader encrypts all card details and ensures that the transaction is secure Once you receive your Square Reader you can connect it to your device and are all set
The application also offers added features such as transaction history connecting to a receipt printer creating employee logins and more
AED 3699
PRICE
Free
PRICE
wwwthecfomecom 67
APPSTECH TALK
DOCUSIGNHave you ever been in a situation where your employees need you to urgently sign a contract but arenrsquot able to physically reach you in time DocuSign solves this problem with its easy-to-use eSignature feature In three easy steps you can sign important documents and securely send them to your intended recipient
First you have to import the document to your device ndash this could be from Dropbox Google Drive or another select applications You then place your signature or any other important legal information you need to include such as initials Once you have finished working on the document send it back via e-mail
Whatrsquos particularly great about DocuSign is the great emphasis it puts on security ndash so that users donrsquot have to worry about getting into any legal trouble
Use DocuSign and never miss a deadline again
Free for basic version
PRICE
MPAYAn initiative by the Dubai eGovernment Department mPay is a simple application that allows you to make important payments Once yoursquove signed up and entered your payment details you are good to go You can pay your Dubai Electricity and Water Authority (DEWA) bills Etisalat utility bills Dubai Police fines Recharge SALIK and much more
A handy feature is its lsquoauto-rechargersquo option which you can use to set automatic payments
Free
PRICE
Opinion CIMAPERSONALITIES
wwwthecfomecom68
NEW HORIZONSBy geetu Ahuja Head of gCC at CIMA
The days of the traditional accountant working within a small community in a small town in a small market have long gone CFOs are now being referred to as Chief Frontier Officers as they travel from market to market overseeing their offices overseas This new expanded role has distinct advantages for both the company and the CFO who gain new skills and new insights from foreign branches a single hand at the helm of many markets provides business perspectives on a global scale and benchmarks across the board
On a personal level working abroad also has huge importance Robert Walters the specialist professional recruitment consultancy recently conducted a survey
of almost 2200 employees across a variety of professions exploring a number of topics which ranged from working practices and attitudes to careers The results highlighted some notable trends particularly for finance professionals
In career progression for example the survey showed that 50 of all accountants see working abroad as either lsquoessentialrsquo or lsquoextremely usefulrsquo to furthering their prospects more than banking professionals lawyers and IT workers ndash a strong indication of how accounting professionals are thinking about their future either within their existing company or with opportunities elsewhere
Accountants with globally recognised qualifications obviously have a greater chance of gaining some experience abroad and the lsquoGen Yrsquo professionals in particular seem ready to pack their bags In a CIMA study conducted in the UK last year over a third of those seeking employment in the
next two years will prioritise opportunities abroad over those in their home countries many of them enticed by the career incentives offered by the Middle East
How quickly can they land what seems to be their dream job What are the realities It may be that the move is simply from one branch to another and the only significant difference is a view from the window but for those expanding rather than changing their roles we have seen a very real need for a depth and breadth of knowledge never needed before
As geographical boundaries are pushed ever-wider a CFOrsquos responsibilities are pushed with them For many finance executives the understanding of their own patch of land is no longer enough they now have to be aware of foreign markets up to speed with foreign trends and au fait with foreign laws There is a need for a new commercial awareness in geography as well as philosophy
As geographical boundaries are pushed ever-wider a CFOrsquos responsibilities are pushed with them
John vargheseQampA
wwwthecfomecom 69
BUSINESSSET UP YOUR
IN THE UNITED ARAB EMIRATES
TO
WAREHOUSESOFFICES INDUSTRIAL LANDFLEXI
Quick and easy company set-up
Less than an hour drive from Dubai
Complete cost-effective packages including licences and facilities
100 foreign ownership
Zero income and corporate taxes
Eligibility for UAE Residence Visa
BUSINESS SET-UP SOLUTIONS STARTING FROM AED 15000 (USD 4000)
RAK FREE TRADE ZONE PROVIDES
RAK Free Trade Zone Authority - Government of Ras Al KhaimahUAE (Ras Al Khaimah) Tel +971 7 2041111 (Dubai) Tel +971 4 7041875 (Abu Dhabi) Tel +971 2 6994888
Germany (Cologne) - Turkey (Istanbul) - India (Mumbai)
Call +971 7 204 1111 Visit wwwrakftzcom Join rakftz
wwwthecfomecom24
Influencedspend
The inconsequential The brand leaders
Leaning up
Note All three segments start with a common hypothetical spend of 1000 to normalize the case example
Source AT Kearney analysis
Source AT Kearney analysis
TOP QUARTILE
mIDDLE-TIER 50
BOTTOm QUARTILE
704
764
644
522
527
396
42
30
(138) (25)
(63)
19
39
28
15
21
4
3
60
32
18
Sourcedspend
Units of yield
Post-compliance
benefits
Additionalbenefits
Financial results
delivered
19x
17x
middle tier
bottom quartile
TOP-QUARTILE PERFORMERS DELIVER NEARLy TWICE AS MUCH VALUE AS MIDDLE-TIER PLAyERS
THE CFO COMMUNITy HAS NOT yET BEEN ldquoAWAKENEDrdquo TO THE VALUE OF PROCUREMENT
Procurement is not on the radar for those who gave the wrong answers to three essential questions
leadership with accountability for performance is clear but either the measures are not clear or performance is believed to be weak variable or unknown ndash or a mix
leaners and leaders answered all three essential questions correctly and also answered most or all other questions correctly
to the table and how it should support the business To make a steep change companies need to understand the multiple benefits which will occur for investments made once theyrsquove allowed for stronger procurement practices
The benchmarking aspects of ROSMArsquos report speak directly to CFOs based on an existing widespread inability to track and improve this often unquantifiable nature of procurement practices According to the report the CFO community has not yet awakened to the value of procurement and Chief Financial Officers are thus divided into three segments The brand leaders (25) those leaning up (63) the pack (774) and the inconsequential (138)
Said Mariscotti ldquoThis is a way to give procurement a measurable quality that CFOs can quantify You have to know what yoursquore doing with relation to procurement in order to do it well ROSMA gives you a number which helps you understand how good your procurement is working as compared to peers It lets you know whether or not you could be doing something differentrdquo offers Mariscotti
CFOs have exemplified an increasing ability to share in a companyrsquos strategic efforts whilst expand their respective remits Procurement is emerging as the latest segment of this conversation Understanding its value beyond the transactional is the first step for CFOs to fully engage with harnessing the potential of procurement and grow to become a part of the elusively paltry portion of brand leaders indicated in ROSMArsquos report
PROCUREMENTANALyTICS
The pack(774)
Al Sharid is the Vice Chairman of Emirates Transport and has enjoyed a successful career in which the lionrsquos share of his tenure has afforded him a seat at the helm of the business
ldquoI remember when I first received the GM of Tata in the late 80s he said to me lsquoYou are the youngest GM I have ever metrsquo I was 29 years old at the timerdquo Looking at Al Sharidrsquos rapid ascent to the top of his organisation can be mind boggling to the average observer however to those few who strive to push themselves to their limits it is perhaps more common a reality As with any top performer we can often see their desire for results and impact
early on in life and with Saeed the first stride of his race to the top began with an accounting degree in university
It was 1976 and the excitement of the UAErsquos biggest milestone moment its inception just five years earlier still clung to the air from Fujairah to Abu Dhabi and every emirate in between A nation was being built Saeed had just finished high school and went to the United States where he was to study engineering
ldquoI was not yet 18 years old it was 1976 and I was sent to America to study it was the beginning of a dream and a young liferdquo says Al Sharid Unfortunately Al Sharidrsquos academic tour of duty came to
THE EmIRATI DREAm Saeed Al Sharid is today an elder statesman in the world of UAE accountancy With decades of know-how based on chairing a number of key Emirati organisations Al Sharid is today atop his own family firm In the following exclusive interview he shares the importance of education the evolution of a nation and just how being an accountant has driven his many triumphs
an abrupt halt when his father suddenly passed and he was forced to return home ldquoWe are seven brothers and I am the middle one so during tough times we always come together and during this period the strength of my family pulled me through I have three younger brothers and I felt I had to be there for them I felt responsible for them My mother played an omnipotent role in pulling us through this dark moment in our history The death of my father forced us to become more independentrdquo says Al Sharid
Now back in the UAE with his plans of studying abroad dashed Saeed looked at the local schooling system within which Al
26
InterviewPERSONALITIES
wwwthecfomecom
Saeedrsquos desire for results took its first stride with an accounting degree in university
By Shane phillips
27
InterviewPERSONALITIES
wwwthecfomecom
Ain University had just opened ldquoAl Ain University was the pride of the Emirate at the time the students were like celebrities The first batch of graduates were all promised 50000 AED from HRH Sheikh Zayed I was one year late so technically I should not have graduated with the first batch but I was determined I worked an extra course load did summer school and soon caught up to the first class 50000 AED in 1981 was like 5000000 AED today so I was very motivatedrdquo says Al Sharid
Saeed not only caught up with the other students but he wound up graduating atop Al Ain Universityrsquos first class of graduates with a 38 GPA ldquoWe Saeed Al Sharid
28 wwwthecfomecom
to the organisationrdquo he says Saeed first joined Emirates Transport after seeing a small newspaper advertisement for an accountantrsquos position He applied but initially they did not want to hire a local because locals were too expensive After a few months however they called him back for an interview and offered him a job
Initially Saeed struggled to get a promotion or even a raise He worked tirelessly to develop himself and kept detailed notes of his work After nearly two years went by with no promotion he requested to meet with the Chairman of the corporation to discuss his career The Chairman was a Minister making him even more senior than his title implied Al Sharid was courageous and determined ldquoYou should not stay silent you have to take initiative your future is in your handsrdquo says Al Sharid
ldquoI met with the Chairman and told him about my work and what I wanted to do He did not talk he just listened and that was it It was a 15-minute meetingrdquo says Al Sharid Three days after Al Sharidrsquos pivotal appointment he was promoted to Deputy General Manager Directly from a Trainee to DGM skipping all the roles in between at the age of 27 years old They doubled his salary and catapulted him into a senior leadership role
ldquoI felt it was quite strange to move up that fast and personally was not sure I could handle the job I had a lot of resistance from the board I had people in their 50s reporting to me and they were not happy about it So I just took a step back and did not try to get involved in their work too fast I went slow and watched my step This was a very important
ldquoThe UAE was a brand new country and a lot of work was being done to develop the nationrdquo
never had any idea of a career path and there was no such thing as career counsellors or lsquocareer servicesrsquo at the school So when you graduated most people just joined the Ministries The UAE was a brand new country and a lot of work was being done to develop the nation The Federal Government paid the highest and so one just joined them There was no grand vision or dream that I was off and chasing In those times you simply tried to do the next best thing So I ended up working in the Ministry of Health as an accountant Back then a university degree was a veritable qualification and it had a lot of market equity today it wonrsquot even get you in the doorrdquo
As the Middle East market evolves not only are university degrees becoming more common but so are post graduate degrees such as MBAs and even PhDs As such the competitive positioning of professional qualifications are gradually eroding over time
ldquoTo stay competitive executives today will require deep and specialised knowledge of their respective industries an intellectual arbitrage that provides superior results To beat the market to manage the risks to develop a sustained competitive edge For this executives need to stay in a role for the full strategic cycle which is at least four years in durationrdquo says Sharid In the case of Al Sharid he was there for 33 years
ldquoDo you just want a job or are you looking to make a contribution to your company Too many young people today are just looking for a title or a position The difference between those who make it into senior roles and stay there is the desire to create impact to add value
InterviewPERSONALITIES
2012year Moodyrsquos upgraded the UAE economy from developing to emerging
37The UAErsquos global rank for GDP
STAT FACTS
moment for me to gain valuable leadership experience early on To make my learning curve even steeper the General Manager quit after two years and I became the GM at the age of 29 years oldrdquo explains Al Sharid
He ascended to the top job in less than five years and stayed in the position for almost twenty years He was totally committed and could even be found in the bus yard at four in the morning to greet the drivers as they started their shifts ldquoThe key to being successful in business is to keep your finger on the details Some people let the details slip and if this happens you will suffer I get into the yard I meet the drivers I meet all the staff If you saw us you will not know who was the GM or who was the driver You have to realise people will never work for you they will only work with you To me Emirates Transport is like my familyrdquo says Al Sharid
When asked what his keys to success are he says ldquoI think if I was not an accountant I would not be a good leader I would not be a good manager In my opinion trying to do business while not understanding accounting is like getting into the ocean and not knowing how to swim you will drown The Chief Executive Officer who does not know how to create the financial statements is always at the mercy of his Chief Financial Officer He cannot take any big decision on his own and he will not even be able to challenge the CFO Accounting is the bedrock of any business and a critical skill set for any leader No one can argue with this factrdquo says Al Sharid
With over 20 years of experience in tow and the related chairmanships to boot Al Sharid
ldquoTrying to do business while not understanding accounting is like getting into the ocean and not knowing how to swim you will drownrdquo
has since early last year partnered with his family to form Al Sharid Auditing Though the Emirati youth is not as keen to pursue positions related to accountancy as Al Sharid was he feels that there is hope to close the gap
ldquoIt is difficult to find an Emirati expert I studied the audit market specifically and there were others like me then But now you break Emirati auditing involvement into three categories The first involves the big firms This is followed by individual smaller enterprises But thirdly a lot of locals opt to work with the government also Most are not managing their own firms they just have a partnership and they are building thatrdquo Al Sharid explains
ldquoAl Sharid Auditing however is a firm that includes my brother and our two sons which make up a body of qualified professional auditors We established this firm last year and work closely with the government We decided to make one firm together instead of having many smaller entitiesrdquo
Moving forward Al Sharid plans to grow his familyrsquos firm by applying the very belief system which has catapulted him to his position of power Marketing concerns which are designed to furthermore announce how tailored Al Sharidrsquos offerings are at present a key variable to forging ahead
Said Al Sharid ldquoMoving forward wersquore focusing more on the marketing of our firm Itrsquos a matter of not exactly expanding but going over the right deals The market is tough and the small jobs are easy but we donrsquot need them We donrsquot want to be in many rooms we want to be in the important onesrdquo
29wwwthecfomecom
InterviewPERSONALITIES
1UAErsquos rank among GCC nations for chosen hub of all major accountancy bodies
STAT FACTS
Latest insights from PwCrsquos 15th Annual Global CEO Survey revealed that 59 per cent of CEOs see emerging markets as more important than developed markets to their future What is making emerging markets such a pressing priority for C-suite executives Why are emerging markets increasingly grabbing headlines
Emerging markets are large fast-growing and ambitious markets best known for being the growth engines of todayrsquos global economy Research (1) suggests that emerging market countries are expected to amount for more than 60 per cent of global GDP growth ndash a clear indication of the wealth of opportunity they present
Understanding emerging marketsBased on estimates by the International Monetary Fund emerging economies are expected to grow two to three times faster in comparison to developed nations Explaining this fast-growth and the rise of these emerging markets an article on Forbescom details that ldquoduring the US housing crash and resulting credit crisis of 2008 world markets were saved from a total disaster thanks to the big emerging markets ndash mainly Brazil India and China The global credit crisis was one of the longest deepest and most painful in history It toppled Wall Street icons like Lehman
The following report explores emerging markets from West to East which are at the helm of economic development trade and innovation and highlights what their rising popularity means for the growth of your business
Brothers required government bailouts of bulge bracket banks and shocked the global economy with a deep economic recession and even a deeper crisis of confidence Its most important legacy though may be one that has yet to fully unfold the crisis revealed a new world order in terms of economic and market dynamics Emerging market economies finally arrived as
30
Market IntelligenceANALyTICS
wwwthecfomecom
ENTERING EmERGING mARKETS STRATEgIES RISKS ANd OppORTuNITIES
Projected annual GDP growth 2014 amp 2015
PANAMA
67
PERU
RANK42
55
Projected annual GDP growth 2014 amp 2015
Ease of Doing Business
RANK55Ease of Doing
Business
TOP TEN MARKETS
(1) Source here Accenture Research ldquogearing up for growth ndash five imperatives for success in emerging markets 2011 Henry Egan and Armen Ovanessoff
31
Market IntelligenceANALyTICS
wwwthecfomecom
LATVIA
CZECH REP
MALAYSIA
THAILAND
SOUTH KOREA
CHINA
RANK75
41
21
50
45
35
74
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
CHILE
RANK 34
43
Projected annual GDP growth 2014 amp 2015
Ease of Doing Business
RANK 24Ease of Doing
Business
Ease of Doing Business
RANK 6Ease of Doing
Business
RANK18Ease of Doing
Business
RANK 7Ease of Doing
Business
RANK 96Ease of Doing
Business
POLAND
32
RANK45Ease of Doing
Business
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
Source httpwwwbloombergcomnews2014-01-29qatar-china-top-ranking-of-frontier-and-emerging-marketshtml
powerful essential and permanent contributors to global economic growth and sustainabilityrdquo
Bloombergcom recently ranked the top emerging markets based on their performance on 19 economic financial political and social indicators In order of ranking the top ten markets were
CHINA
SOUTH KOREA
MALAYSIA
CHILE
THAILAND
PANAMA
PERU
LATVIA
POLAND
CZECH REP
1 6
2 7
3 84 9
5 10
Market IntelligenceANALyTICS
32 wwwthecfomecom
Making an entryIf your business is looking to enter any of these emerging markets itrsquos worth considering the following checklist
1 Assess your readiness The biggest mistake you can make is to enter a market without proper evaluation of your business Donrsquot do it just because everyone else is Like every other major business decision be sure to speak to your Board of Directors partners investors stakeholders and most importantly your CFO and certified accountants Make a business plan enlisting your objectives goals investment strategy potential risks etc
2 Research research research Do your homework Treat emerging markets as any other international expansion venture and do thorough research on the new market ndash Who are the competitorsWhat is the price point for your product What are the customer demographics What kind of infrastructure do you need for the manufacturing production or distribution of your product
3 Understand the legal framework Emerging markets might not have rules and regulations as clearly spelled out as your home country Invest some time and money in understanding how business procedures work A very obvious area of focus for UAE-based companies is tax Since the UAE is a tax-free economy companies arenrsquot exposed to tax accounting and other legislation surrounding
ndash failing to adapt to the needs and expectations of the local customers is surely a recipe for failure Time and again companies havenrsquot been able to create a customised offer and have had to exit these markets with huge losses A success story however is that of the Haier Group Haier famously introduced washing machines to specifically suit the water pressure levels in the households of India ndash an emerging market strategy that worked very well in their favour and helped them become leaders in that sector Another great example is that of Coca-Cola as explained in an online Reuters article by Matt Reilly ldquoIn Brazil Coca-Cola has used social media to better understand consumer preferences and has developed a successful local network to supply traditional Coca-Cola products as well as fruit juices tailored to local tastesrdquo
7 Local currency This is a complex yet critical area to consider when entering a new market Ask yourself questions such as ndash What is the local currency rate How does it compare to the currency in your home country Is the country import-led or export-led and what impact can this have on the global value of the currency Remember that fluctuations in currency rates can hugely effect your overall investment and thereby the return on investment
8 Build partnerships When entering an unknown territory it is quite useful to have the backing and support of peers who can help you in case of unforeseen challenges This is
this Another area to consider is corruption ndash emerging markets are notorious for high corruption red-tape and bureaucracy Speak to your company lawyer to assess these areas and take proper measures to avoid them before-hand
4 Invest in local talent Working with people already accustomed to the new market avoids the hassle of relocation and reduces costs But more significantly gives you skilled talent to work in these unique environments This also works in favour of your company as it gives you a clear understanding of the kind of compensation packages you will have to offer to your employees For instance employees based in China might want high remuneration and low healthcare benefits while in India it may be quite the reverse Recruiting local talent will also have a trickledown effect ndash your employees will easily be able to cater to the local customer needs without the need for intense training
5 Supply chain 44 per cent of business leaders surveyed consider accessing the right supply chain capabilities extremely or challenging in emerging markets according to Deloittersquos Globalisation Survey Make sure that you know who your suppliers will be what the production costs are whether their production procedures fit your time constraints and if the final product matches your level of quality
6 Cater to local market demands This is one of the most important aspects of all
Do your homework Treat emerg-ing markets as any other internation-al expansion venture
Market IntelligenceANALyTICS
33wwwthecfomecom
the very reason why Mergers and Acquisitions are a popular way to enter into emerging markets Many companies piggyback on their clients who are entering these markets For instance if you are an IT consultancy working on a major project for a manufacturing and trading company with operations across India and China you can use their resources and expertise to explore opportunities in these countries
Remember to consider these steps every time you enter a
new market as every locality has its own set of unique needs One strategy doesnrsquot fit all
Surviving fierce market conditionsWhile the massive opportunity that lies within emerging markets paints a pretty picture businesses need to be wary of bottlenecks such as corruption volatility gaps in laws and regulations and strong competition There have been several high-profile cases of multinational companies withdrawing from emerging
markets owing to immense corruption pressures
There is also a high percentage of inherent risks in these markets which amount to many companies not succeeding in their first attempts It is important to take your time when adapting to these markets and fully understand the business dynamics Following recent case studies and going over the lessons learnt by multinational companies who have made an entry into these markets consider the below
bull Is your companyrsquos head-office ndash and senior management ndash located in your home country without any C-level representation in the new emerging market
bull Are you focusing all of your resources on doing business in the emerging market at the cost of losing profits in your home market
bull Have you researched local competitors in these markets who may already have a strong standing and proven models of success
bull Are you using the same ldquoentry approachrdquo and business model across different emerging markets
If your answer to one or more of these questions is yes it may be time to re-evaluate your presence in these markets and map out a different strategy
Finally remember that no matter what the outcome of your admission to these markets might be your business is sure to emerge out of this stronger tougher and ndash of course ndash ready for a new challenge
of companies believed they had invested more resources in
emerging markets than was required
entered a market without fully assessing the ability of the supply chain to support the expansion
entered with the wrong pricing model and an inappropriate
operating model
CONSIDER THE RISKS
48
24
20
There is also a high percentage of inherent risks take your time when adapt-ing to these markets and fully understand the business dynamics
Source Emerging markets expansion and the supply chain Economist Intelligence unit survey conducted on behalf of EY September 2010
34
CIMA INTERVIEW
wwwthecfomecom
The Chartered Institute of Management Accountantsrsquo (CIMA) Managing Director Andrew Harding visited Dubai to host the Institutersquos seminar on global management accounting principles In the wake of CIMA revising their well heralded syllabus Harding discussed with CFO Magazine what the newest edition held how CIMA is applying a digital focus to its courses and just how CFOs can gain from it all
CURATING CURRICULUm
35
CIMAINTERVIEW
wwwthecfomecom
can give CFOs something they can take and something they can measure their own management accounting services against They can benchmark using this and they can utilise this to see their progress
Part of that is having professional management accountant in place I donrsquot think the landscape matters I believe that there is a common business need wherever you may be around the globe
All of the emerging markets need these skills The first aspect that accounting schools teach is about auditing skills because theyrsquore interested in protecting investments Then they teach you how to keep your business sustainable and to have a sustainable business you need to have a management accountant in place So itrsquos not just here in the UAE where we see these demands we see the same demands in China Indonesia and other powerhouse economies We see their skills shortages and we see the need for solutions in those areas
Talk to me about how this new syllabus works to promote the evolution of a CFOThis syllabus that wersquove
Can you expound on just what can be found within the new CIMA syllabusWe just revised the syllabus we do that every four to five years What we have done this year is a very significant revision It is based from a complex study that we have carried out to over 3000 people from 200 companies globally It is the very first revision since the joint venture with CIMA and AICPA So this has allowed us to attain a syllabus rich with all the data from all the continents in the world For the first time wersquove had real involvement from companies in the USA in this project
Why is the collaboration between AICPA and CIMA significantMost important is the Chartered Global Management Accountant (CGMA) designation that AICPA and CIMA both issue for qualified management accountants Wersquoll have a common curriculum and common examination which will begin on January 1 which gives us a global designation for management accountants wherever they are around the world There are plenty of accounting bodies who claim to be global but actually this is the only
genuinely global designation This is because it has the only one with a North American participation in it So we can say that the CGMA will be just as well-recognised in the USA as it is in Dubai
With the global landscape in mind how do you create an even objective that applies to localities which may prove widely differentialThe landscapes are different but businesses have common needs wherever they may be What wersquove particularly seen since the global financial crisis is that companies are actively looking to build management accountant capability to build that capacity within their organisations They donrsquot want to have a poor quality of information that lacks insight being used in their businesses So they see management accountants can bring solutions to that As a result of all the work wersquove done with companies who participated in the syllabus wersquove also put together a series of what we call Global Accounting Principles This is a series of principles which describes what good management accounting looks like and what top quality management accounting in a company should be producing This then
ldquoCompanies are actively looking to build man-agement accountant capability to build that capacity within their organisa-tionsrdquo
36 wwwthecfomecom
worked on acknowledges the skill set needed by professionals throughout their career Therersquos a base level of competence that is needed but beyond that there is more There is business acumen the ability to communicate and influence and finally the ability to lead So you start off enhancing your raw technical accounting skills Then you need to place that into the context of the business that you are in Then as you move forward and as you rise to become the CFO yoursquoll need the others You have to learn how to present your work in a way that can influence and make an impact in the business The final piece is the ability to lead projects and other functions and to a great extent lead the board of directors Thatrsquos how the context works itrsquos not just about technical knowledge
How do you find that CFOs in the GCC region are responding to this programmeThe CFO has a real challenge on his hands now In 1975 80 per cent of corporate value is showing on the balance sheet By 2010 that dropped to less than 20 per cent Your traditional PampL reports no longer reflect the value of the business or how the business drives value
All things that should be of interest to investors is missing With things like the integrated report initiative wersquore starting to see the other dimensions that add value to business For CFOs thatrsquos all about strategic thinking and considering the long-term objectives Being articulate in implementing those strategies keeping in mind the risks and opportunities that the business faces We are also nowadays witnessing a whole new world of transparency around that
Are there electronic aspects to CIMArsquos advancing approachThe interactive case study simulates a real working situation and it tests how they can apply their knowledge in real life situations Theyrsquoll be presented with a scenario a few weeks before they take the exam so they can prepare for it They then go to an exam centre where they are asked questions about how they will deal with a certain situation in the real world Theyrsquoll get an email from the CFO giving them a certain task for a particular period of time We want to make it as close to reality as possible so students taking the exam will be assessing situations based on real life scenarios
ldquoThe CFO has a real challenge on his hands now as traditional PampL reports no longer reflect the value of the businessand [the role] must focus on strategic thinking and considering long-term objectivesrdquo
218KCIMA members worldwide
STAT FACTS
CIMA INTERVIEW
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
38
ERPANALyTICS
wwwthecfomecom
Faster more nuanced IT solutions are available to the modern day CFO Whilst Chief Financial Officers are called upon to analyse data across a number of spectrums the digital tools on hand are likewise being expanded to aid in focusing more squarely on the bottom line
ExCELLING WITH ERP
The global landscape is today firmly entrenched within a digital model As a result CFOs whom are called upon to take a larger role in a number of variables must also increase their abilities with respect to utilising the many upsides which tech innovations offer a business When surveyed about their most pressing concerns CFOs generally return a varying collection of responses Revenue growth regulatory changes and meeting quarterly goals are among the chief concerns Virtually every obstacle can be hurdled by way of maintaining the order of financial reporting and data which has long been
synonymous with the Chief Financial Officerrsquos remit A widening berth of ERP solutions is making this data all the easier to come by
Despite how sophisticated the market is today it was not long ago that ERP departments once spent days processing business reports
Said Rohan Tejura Assistant Vice President Focus Softnet ldquoTraditional ERP systems were solely data repositories Moreover these repositories werenrsquot real time and were incredibly dependent upon locational connectivity With the emergence of smarter development platforms more versatile devices and
39
ERPANALyTICS
wwwthecfomecom
more intuitive designs of system development the overall experience of the ERP now extends from data warehousing to reporting analysis trend mapping business intelligence and governance oriented capabilities Yet these solutions amazingly execute all of these deliverables via portable handheld devices and through cloud environmentsrdquo
New generation ERP systems must now be on the go whilst including up to the minute analytics to provide deeper insight into the business ERP Analytics tools use historical data captured from various business functions to provide valuable information for efficiency and business performance each incredibly priceless to a leading CFO
Finesse is an ERP provider which is continually addressing the transformation of output which the ERP industry is offering the equally transitioning role of CFO
ldquoWe provide end-to-end business management solutions to SMEs and Enterprises Our approach to ERP is much more than providing simply an operational management systemrdquo said Finesse COO Sunil Paul
ldquoWe believe that todayrsquos businesses need much more than integrating sales with inventory accounting and manufacturing but also to have seamless integration with all their sales channels including the point of sales ecommerce and inbound sales solutionsrdquo
A major im-petus of the ERP-cen-tered growth is based on how effec-tive com-prehensive real-time data proves to be for the CFO
40 wwwthecfomecom
before thereby creating new global benchmarks for overall economic growth
Microsoft Arabia CFO Sadrul Khan offered insight into just how far the knowledge economy has influenced regional financial leadership by explaining how one of the most prioritised technologies by CFOs in the region is social platform monitoring
ldquoOne of the five technology choices that CFOs tend to prioritise in boosting productivity efficiencies and faster decision making in the fast paced business environment which include a social platform that monitors trends customer sentiments and helps process mashable data for customer centricity and business growthrdquo said Khan
A major impetus of the ERP-centered growth is based on how effective comprehensive real-time data proves to be for the CFO Whether employed as on-premise ERP software-as-a-service or cloud-based solutions a nearly identical ethos is being utilised Allowing the CFO to quickly access the performance of all facets of a business is paying dividends in the boardroom a reality which is showing itself increasingly in the Middle East
The technologically-charged relationship between ERP solutions and the regionrsquos CFOs is expanding and as a result has catalysed what many see as GCC economic performance outstripping that of many economies outside of the region as a result
In order to compete in todayrsquos fiercely competitive environment organisations need to think both innovatively and out of the box They require more insights about their business and their customers and need to ensure that they are able to meet the expectations of their internal as well as external stakeholders Enormous amounts of data both structured and unstructured is continuously being generated within the internal and external systems of the organisation which if analysed can be of immense value both to the business and subsequently the stakeholders associated with the organisation
With the the era of CFOs labouring over spreadsheets now in the past given how many business frontiers have become so dependent on mobile options such as the cloud more and more tech companies are providing the regionrsquos CFOs with information technology that converts traditional internal and external data into rich visual insights This information is then used for faster decision making and provides the ability for a CFO to assess manage and control risks Regional CFOs have grown enabled to drive corporate strategy accordingly demonstrating how the knowledge economy is now in full force amongst the Gulfrsquos corporates
Given that advanced IT has now become a regular CFO tool the regionrsquos CFOs are subsequently making faster decisions and driving internal growth models with greater speed and agility than ever
Tech companies are providing the regionrsquos CFOs with information technology that converts traditional internal and external data into rich visual insights
ERPANALyTICS
Donrsquot discoveritrsquos counterfeittoner afteritrsquos too lateOriginal HP Toner works first time every time1 unlike cheap toners which fail over half of the people who try it2 Non-HP toner can compromise your printerrsquos performance to give you streaked blotchy or faded prints Only original HP Toner cartridges deliver unmatched quality for the most professional-looking prints 100 of the time1
1 A QualityLogic 2010 study commissioned by HP comparing original HP LaserJet Monochrome print cartridges with nine brands of non-HP toner cartridges available in Europe Middle East and Africa for the HP LaserJet P1505 and P4015 printers HP 36A and 64A For details see wwwqualitylogiccomEMEAmonotonertestpdf 2 From a 2012 EMEA Lyra Research study commissioned by HP Results based on a total of 1050 HP Color LaserJet users who have used both original HP and non-HP toner cartridges of whom 552 experienced problems with non-HP cartridges
copy 2014 Hewlett-Packard Development Company LP
42
Private Equity ANALyTICS
wwwthecfomecom
The rise of PE-backed acquisitions is forcing CFOs to develop an entirely new set of skills
THE PRIvATE EQUITy CFO
The CFOrsquos utility in the world of private equity is without question on the rise The once-held belief of the CFO existing solely as the ldquoaccounting guyrdquo has been abandoned Over the last 20 years the role of CFO has become more demanding - requiring not just finance and accounting acumen but also a financial literacy in corporate planning risk management MampA assetliability management and regulation This evolution has been driven by a number of
key factors Yet the private equity industry which is now reshaping the corporate landscape through active ownership is by far the most significant factor driving change within the role of the CFO
PE-backed buyers today represent a larger percentage of overall buyers in the corporate acquisition marketplace than ever before Data provider Prequin estimates that as of June 2014 the capital raised by PE funds that
has not yet been deployed amounts to $114 trillion globally The result of this ldquodry powderrdquo is that a vast quantity of corporate acquisitions in the coming years will be undertaken by the private equity industry As such CFOs will be more accountable to demanding ldquosmart moneyrdquo shareholders than at any point in recent history Budgeting accounting and financial reporting will no longer exist as sole priorities but as a core competency among a
ldquoBy effec-tively using real-time data CFOs can create a dynamic process that proac-tively drives performance account-ability and value crea-tionrdquo
By Aaron Heidari
43
Private Equity ANALyTICS
wwwthecfomecom
robust set of complimentary and required skills Most of all the bar for CFOs is rising as PE investors will only accept above-average performance from their management teams
CFOs were once more reactive in function setting budgets based on other executivesrsquo plans and managing the flow of reporting to shareholders on a quarterly and yearly basis Today CFOs are required to become proactive managers of their respective businesses alongside their C-suite compatriots using a granular data-driven approach to aggregate analyse implement and report on every aspect of a companyrsquos operations
An important tool to drive this value creation process are KPIs Yet KPI structures including both aggregation and output are generally not up to the standards required of private equity investors prior to an investment being made
ldquoThe benefits of using KPIs and monthly reporting packages are significant By effectively using real-time data that is actionable and by partnering with functional area leaders within the organisation company CFOs can create a dynamic process that proactively drives performance accountability and value creationrdquo said Amanda Robinson Vice President of Accordion International in Dubai a consulting firm which is comprised of former private equity and investment banking professionals who
MENA region Cumulative Funds Under Management Since 2008
Source Zawya private Equity Monitor
19 636 20 36321 586
22 64323 506 24 250
-
5000
10000
15000
20000
25000
2008 2009 2010 2011 2012 2013
Cu
mu
lati
ve f
un
ds
($ m
)
$15mAverage MENA PE investment size in lsquo13
50Percentage of investment in IT and energy sectors
STAT FACTS
44 wwwthecfomecom
work with companies to deliver cost-effective project execution services
Active shareholders whose money it is being spent will typically require a data-driven justification before approving any budgets capital expenditures or new acquisitions Furthermore in many private equity backed companies the use of debt and the matching of shorter-term bank financing with longer-term investments will only be considered after a robust analysis is conducted to understand the companyrsquos ability to service that debt in the future This evaluation is not simply to identify revenues expenses and profits Itrsquos about drilling down into every transaction and rooting out data processing and reporting At least that is the expectation
The most valuable CFOs are those who have the ability not just to scrutinise and understand the financials but all also possess a wider grasp of the underlying data which truly comprise the business As an investor who has just acquired a stake in a new business I want a CFO who can manage the transition and stay ahead of my expectations Most of all a CFO should impress upon the companyrsquos shareholders a new way of doing business The first 100 days of an acquisition are said to be the most important During this period the CFOrsquos worth will be established when the new financial plan is due and the platform for the next five years of growth is presented
A CFO should man-age the tran-sition stay ahead of expectations and impress upon the companyrsquos shareholders a new way of doing business
Investment Volume By Sector Since 2006
Investment Volume By Sector in 2013
Source Zawya private Equity Monitor
1
3
30
17
3
28
3
4
6
4
6
5
17
9
9
6
9
5
8
6
6
2
3
10
Education
Education
Information Technology
Information Technology
Other
Other
Telecoms
Telecoms
Media
Media
Transport
Transport
Oil amp Gas
Oil amp Gas
Healthcare
Healthcare
Consumer goods
Consumer goods
Food amp Beverages
Food amp Beverages
Leisure
Leisure
Manufacturing
Manufacturing
ANALyTICS
Private Equity
2000857 NBAD ratibi mag ad 200x268 Finalindd 1 92514 1017 AM
46 wwwthecfomecom
THE FUTURE OFACCOUNTING EDUCATIONAddRESSINg THECOMpETENCY CRISIS
Have you ever stopped to think about how the accounting profession has changed since you graduated from college Recent graduates can answer this question by reflecting on the last two or three years whereas for other more seasoned professionals answering this question requires a bit more thought and memory searching Indeed we can all think of ways that the field of accounting is remarkably different today from the one we likely envisioned during our college daysmdashregardless of which decade we each donned our cap and gown This gradual transformation of the accounting profession leads to two important questions related to competencies bull Which competencies are important for success inaccounting todaybull Were these competencies consciously developed as partof your accounting degree programme
We suspect that more than a few of you would answer ldquonordquo to the second question Put another way our profession may be facingmdashmore so than at any time in the pastmdasha ldquocompetency crisisrdquo that is a gap between the competencies needed for professional success and those taught in our college classrooms today We propose a three-pronged strategy or ldquogame planrdquo for overcoming this competency crisis and in turn better preparing accounting graduates for the challenging world they will face First all of us accountants need to understand the changes that have already taken place in our profession and perhaps more importantly anticipate the changes that are on the horizon Second we need to educate ourselves and future generations of accountants so that as a collective group we can deliver the expanding set of competencies demanded in todayrsquos dynamic organisational
contexts Third as professional organisations and as individuals we need to think beyond ourselves by asking How can I (or we) help the accounting profession address the competency crisis
A Shift Toward Integrated ThinkingMany articles and white papers have been written that describe in detail the changes that have occurred in our profession over the last few decades but for our purposes wersquod like to distill these changes down to one crucial idea How does the accounting function add value to an organisation Accountants have evolved from support-oriented personnel who hand off information to others who actually make decisions into business partners who ldquohave a seat at the tablerdquo with managers
By peter C Brewer James E Sorensen CpA CgMA and david E Stout
47wwwthecfomecom
1048576bull What regulatory risks mayaccompany the proposal
1048576bull What social and environmentalfactors will we face if for example the proposal requires investing in overseas operations
1048576bull What types of employeeresistance may arise if we implement the proposal and how will we overcome the root causes of any such resistance
1048576bull Can and how should we valuefuture options associated with the proposal such as expanding or contracting the investment over time as new information becomes available
1048576bull Should we use debt or equity tofund the proposal
In short accountants have evolved to become integrated thinkers who enable EPM by partnering with managers across the organisation to add value Yet as EPM has gradually become the centrepiece of our professionrsquos value proposition accounting education hasnrsquot done enough to embrace it To overcome this gap wersquod like to further suggest that the concepts of competency integration and EPM need to come ldquofront and centrerdquo as we move forward in educating the next generation of successful accounting practitioners
Accounting Education No Longer on the SidelinesRecently a task force consisting of members of IMAreg (Institute of Management Accountants) and members of the Management Accounting Section (MAS) of the American Accounting Association (AAA) addressed the competency issue How should accounting education change fundamentally to help close the competencies gap The efforts of the task force led to
cash flows and how to apply discounted cash flow (DCF) decision models such as net present value (NPV) is of foundationalmdashsome might say critical mdash importance But integrated thinkers draw on an understanding of organisational strategy coupled with a broader set of competencies (beyond what might be considered technical or foundational knowledge) when making these types of decisions For example they consider how behavioural issues may influence the capital investment decision-making process Perhaps the financial estimates contained in the NPV analysis are too optimistic because the manager who prepared the numbers has a vested interest in seeing the project approved Decision makers also need to consider issues such as leasing vs buying a capital asset and the corresponding impacts on the financial statements and ratios that are tracked by investors and lenders What nonfinancial factors are associated with the proposed investment Add in the tax consequences of capital investment decisions coupled with the need to maintain internal control over any new business processes tied to these decisions and the need to think in an integrated fashion across a variety of accounting competencies becomes apparent
Furthermore becoming a true business partner with managers across the organisation requires more than simply integrating various accounting competencies It also means thinking like a business manager or a chief executive officer (CEO) Returning to the capital budgeting example an integrated thinker will ask questions such as
across the organisation Together they formulate and plan strategies then participate in collaborative decision-making processes that execute those strategies in a manner that adds stakeholder value Said another way accountants have evolved to become enterprise performance managers This shift in our orientation from a support function to an enterprise performance management (EPM) role has enormous implications for defining the determinants of success within our profession the most important of which involves becoming collaborators and ldquointegrated thinkersrdquo Take for example a common but important business decision process capital investment analysis Certainly technical knowledge regarding how to estimate relevant after-tax
48 wwwthecfomecom
expanding capital budgeting discussions to include financial statement impacts tax consequences and internal control issues integrates topical coverage across the External Reporting and Analysis Taxation Compliance and Planning and Assurance and Internal Control competencies shown in Figure 1
Third accounting curricula can incorporate a broader set of management competencies For example evaluating capital investment proposals from the perspectives of change management (Leadership) social and environmental issues (Ethics and Social Responsibility) regulatory concerns (Governance Risk and Compliance) and capital structure (Additional Core Business Competencies) brings a CEOrsquos perspective to the decision-making process
Fourth accounting curricula should include foundational competencies such as proficiency with spreadsheets and written and oral communication In the context of capital budgeting this may include asking students to use Microsoft Excel to perform a sensitivity analysis and then to present their findings to the entire class
Working to Fix the ProblemAt this point although you may agree with us that therersquos a competency crisis within the accounting profession you may be wondering What does this have to do with me What can my organisation do to help address this so-called competency crisis The answer a lot Practice partners and academic partners can help the accounting profession overcome the competency crisis That said letrsquos take a closer look at the role of practice partners first
improvement) and accounting competencies (external reporting and analysis planning analysis and control taxation compliance and planning information systems assurance and internal control and professional values ethics and attitudes) Of critical importance to the framework is the assumption that the set of competencies contained in Figure 1 would be developed and integrated over time through a blend of formal education (including continuing education) training and job experience
What levels of integrationmdashon the road to developing integrated thinkers in accountingmdashare possible First accounting educators can integrate within a single accounting competency So referring back to our capital budgeting discussion teaching computational models such as NPV analysis coupled with a review of various behavioural issues associated with capital investment decisions would be an example of integrating within the Planning Analysis and Control competency listed in Figure 1
Second professors can integrate across accounting competencies For example
a recently published article that contains a proposed framework for accounting education reproduced here as Figure 1 The framework is general in the sense that itrsquos meant to apply to all accounting students not subgroups based on career specialisation such as tax assurance services corporate finance and the like Itrsquos based on the idea that accounting educators can better prepare students to deliver our professionrsquos EPM value proposition through integrated competency-oriented curricula (For more see ldquoFocusing Accounting Curricula on Studentsrsquo Long-Run Careers Recommendations for an Integrated Competency-Based Framework for Accounting Educationrdquo in the May 2014 edition of Issues in Accounting Education)
A glance at Figure 1 reveals three levels of competencies foundational competencies (communication ability to leverage technology and analytical thinking and problem solving among others) broad management competencies (including leadership ethics and social responsibility and process management and
Proposed Competencies-based Framework for Accounting Education
FOUNDATIONALCOMPETENCIES
ACCOUNTING COMPETENCIES
BROAD MANAGEMENT COMPETENCIES
leadership
ExternalReportingamp Analysis
PlanningAnalysis
amp Control
TaxationComplianceamp Planning
InformationSystems
Assuranceamp InternalControl
ProfessionalValues Ethics
amp Attitudes
Communication
Quantitative
Interpersonal
Technological
Analytical Thinking ampProblem Solving
Ethics amp SocialResponsibility
ProcessManagement ampImprovement
GovernanceRisk amp
Compliance
AdditionalCore BusinessCompetencies
Although you may agree with us that therersquos a competency crisis within the account-ing profes-sion you may bewondering What does this haveto do with me
A practice partner should be or become a CMAreg (Certified Management Accountant) maintain professional certification by completing required Continuing Professional Education (CPE) hours and regularly read the IMA publications Strategic Finance and Management Accounting Quarterly
In addition there are a number of excellent resources that deal with topics covered in this article and that IMA makes available to its members
Strategic Finance PowerPacks(wwwimanetorg SFPowerPacks) These are resources focused on contemporary topics similar to those discussed earlier Current offerings include Risk Management Strategic Planning IT Skills amp Software and Internal Controls Each PowerPack includes a combination of resources such as research studies articles and links to webinars
Statements on Management Accounting (SMAs)(wwwimanetorgresources and_publicationsresearch_ studies_resourcesstatements on_management_accounting aspx) SMAs represent monographs classified into one of the following six categories Leadership Strategies and Ethics Technology Enablement Strategic Cost Management Business Performance Management Finance Governance Risk and Compliance and the Practice of Management Accounting Multiple items are available within each category For example the Practice of Management Accounting category includes (among other items)
49wwwthecfomecom
the Definition of Management Accounting and Implementing Shared Service Centres
Research Studies (wwwimanetorgresources_and_publicationsResearch_Studies_and_ResourcesAll_reportsaspx) The ldquoThoughtLeadershiprdquo section of IMArsquos website includes research covering a broad range of issues classified into seven categories For example under the ldquoGlobal Business Environmentrdquo category the following two research reports are available ldquoKey Differences Between IFRS and US GAAP Impact on Financial Reportingrdquo and ldquoCosting Methodologies and Cost Management Practices in the Peoplersquos Republic of Chinardquo
IMA Leadership Academy (www imanetorgprograms_events leadership_academyaspx) As described on the IMA website this programme is designed to assess a memberrsquos leadership status enhance that individualrsquos skills (principally through monthly webinars) and recognise leadership achievements These benefits are free to members
How You Can Make a Bigger Impact In addition to attending local regional and national IMA meetings consider inviting a small group of students to each chapter meeting This could be a wonderful (and relatively low-cost) option for mentoring aspiring accountants and finance professionals providing networking opportunities and introducing students to cutting-edge issues regarding the practice of management accounting Joining a university accounting
advisory group may be another way to influence the development of EPM in that institutionrsquos curriculum design
Other methods to enhance EPM in your organisation include (1) forming user groups within your company your local IMA chapter or your industry to review and share EPM experiences (2) encouraging advancement in the firm to be linked to EPM proficiency (3) focusing your companyrsquos recruiting efforts on candidates who display a background in andor understanding of EPM and (4) organising cross training within your company to enhance a mutual understanding of each otherrsquos respective roles
Finally visit the Competency CrisisTM website (http competencycrisisorg) set up by IMA to unite the accounting and finance constituencies professionals students employers academics and professorsmdashand explore competency issues through the lens of each stakeholder group The site is designed to ldquoencourage a discourse spur action and create a community dedicated to resolving the serious crisis of competency present in the professionrdquo Special sections of the website are devoted to educators students and employers professionals
Our Partners in Education Much like a practice partner an academic partner should be or become a CMA maintain professional accreditation by completing CPE hours and regularly read IMArsquos publications
Academic members of IMA can pursue and actively promote the CMA programme at their respective institutions
50 wwwthecfomecom
IMArsquos website contains helpful resources including an exam content overview content specification outlines for each of the two parts of the CMA exam and learning outcome statements The current exam covers some of the professional competencies represented in Figure 1 A summary of changes to exam content which will be effective in January 2015 is provided on the IMA website in News amp Media Relations which is located under ldquoAbout IMArdquo (See the press release dated March 24 2014) Other helpful resources include ldquoICMA Announces CMA Exam Content Changesrdquo in the April 2014 issue of Strategic Finance as well as ldquoManagement Accounting Career Readiness Shaping YOUR Curriculumrdquo
These forthcoming changes are based on the most recent IMA study of the knowledge and skills needed by management accountants from the view of CFOs controllers and other accountingfinance professionals from around the world
Also consider taking a group of your students to the IMA Student Leadership Conference held each November The Conference provides excellent networking opportunities for you your students and practicing professionals Students can learn firsthand from Conference presenters the challenges and opportunities facing finance and accounting professionals today
Moreover if your institution doesnrsquot currently have an IMA Student Chapter consider forming one One of the authors of this article David Stout reinstituted the student chapter at his school (Youngstown State University) after travelling with a group of his students to the IMA
Student Leadership Conference in Cleveland Ohio Through an IMA Student Chapter on campus students are able to work closely with a sponsoring local IMA chapter and bring to campus speakers who are experts in a wide range of topics including those discussed earlier in this article Each year student chapters compete for an Award of Excellence (AOE) and recognition as an Outstanding Student Chapter In addition IMA student members are able to engage in networking activities leadership training mentoring and community service programmesmdashall through their local chapter
You also might consider volunteering to serve as a Campus Advocate In this role yoursquoll represent IMA in all major matters of interest to your students (scholarship opportunities starting a student chapter mentoring and the like) and to your institution (for example leveraging IMA resources to advance the relevancy of the accounting curriculum use of educational case studies published in the IMA Educational Case Journal and access to IMArsquos ethics curriculum)
And if you havenrsquot yet done this ask IMA to endorse your accounting programme (information is available at www imanetorgeducator_resources indexaspx) This programme is designed to identify business curricula that meet the quality educational standards required to prepare students to earn the CMA designation Endorsement is based on an analysis of the curriculum and topics covered on the two-part CMA exam Currently 12 programmes have been endorsed
Finally if your school has an IMA Student Chapter consider participating in the annual IMA Student Case Competition where students are asked to propose a solution to a real world problem (Cases are solicited each year by Raef Lawson IMA VP of Research and Policy and IMA Professor in-Residence) Finalists make their presentations at IMArsquos Annual Conference amp Exposition before a set of judges consisting of accounting faculty members and practitioners Each year a new case is published in the August issue of Strategic Finance for students to use for that yearrsquos competition
Working TogetherIn this article we have summarised the changes that have affected the accounting profession and provided a competencies-based framework for guiding accounting educators in responding productively to those changes As a management accountant you know that implementing change in any organisation let alone within an entire profession never comes easily To be successful in overcoming our professionrsquos competency crisis IMArsquos practice and academic partners will need to assume leadership roles in defining enterprise performance management as the cornerstone of the accounting professionrsquos value proposition
This article was orginally published in the August 2014 issue of Strategic Finance It appears here with the permission of The Association of Accountants and financial professionals in Business
We need to educate ourselvesand future generations of account-ants so that as a collec-tive group we can deliver theexpanding set of com-petenciesdemanded in todayrsquos dynamicorgani-sational contexts
THE POWERFUL AND THRIFTY OFFICE ALL-ROUNDERS
The new ECOSYS M3560idn series will astound you With their print speeds of up to 60 pages per minute they are among the most productive A4 bw multifunctionals on the market We nevertheless managed to keep their ecological footprint and total cost of ownership impressively low by using our well-known ECOSYS technology and equipping the devices with our renowned long-life components The result Not only less waste and lower maintenance costs but also less hassle for you and all your colleagues You will also greatly appreciate the many customisation possibilities of the devices equipped with KYOCERArsquos open solution platform HyPAStrade as it allows you to tailor the device to your needs So yes we are proud of our new range of MFPs and can hardly wait to share their numerous benefits with you
For more information please contactKYOCERA Document Solutions Middle East | PB Box 500817 DubaiUAE | Tel +9714 4330 412 | Fax +9714 4231 944KYOCERA Document Solutions Europe BV - wwwkyoceradocumentsolutionseuKYOCERA Document Solutions Inc - wwwkyoceradocumentsolutionscom
52
ACCAINTERVIEW
wwwthecfomecom
GLOBAL By ASSOCIATION
across the region from our key employers and learning provider partners to our active and growing student and member base I want to understand their challenges and priorities and how ACCA can work with them to help support the economic success of the region
What can a CFO gain from working with ACCAThe ACCA qualification is about complete finance professionals For CFOs it brings the technical knowledge vital to business success complemented with the strategic management skills and ethical competence crucial to an organisationrsquos success As an organization ACCA in the UAE brings CFOs access to that local and global network of peers and expertise along with our leading research and insights that help them to keep up to date on the issues that matter most
Are there any initiatives in place to leverage the recently announced partnership with AAA
How are the ACCArsquos many years of activity being applied to the Middle EastACCA has now had a presence in the UAE for well over a decade During that time we have established strong relationships across the Middle East epitomised by the recent signing of our Strategic Partnership with AAA As a national body in choosing to partner with ACCA they recognised the local and global perspective we bring We are continuing to work with students members and employers across the Middle East to build their networks knowledge and business success through events research and insights and access to a growing number of online resources
Which initial priorities are among your key aims upon joining the organisationrsquos efforts in the UAEIn the first few months I hope to build on the success of the team in the UAE My priority will be to meet as many of our key stakeholders
The Association for Chartered Certified Accountants (ACCA) provides its services across a number of international borders The recent announcement of Lindsay Degouve de Nuncques as the new head of the Associationrsquos UAE chapter further exemplifies the ACCArsquos reach based on her previous work in the UK Nuncques shares here what she brings to the Middle East and just how globalisation has driven her ascent
53
ACCAINTERVIEW
wwwthecfomecom
The strategic partnership with AAA is the first of its kind in the region Students who complete the UAECA qualification will be entitled to both the AAA and ACCA designations and ACCA members in the UAE will also be eligible to apply for AAA membership This is a very exciting development in the market and together AAA and ACCA will be working to deliver maximum value to all our stakeholders from this partnership As we launch the UAECA qualification this activity will start in earnest
Which key industries will you be spotlighting in the Middle East in the months aheadOur experience of working across all sectors and levels of organisations globally gives ACCA a unique insight into all types of industries We will continue to be working with employers across the spectrum in the months ahead to help them gain the insight and make the connections that drive businesses to succeed at whatever they do
ldquoThe ACCA qualification is about complete finance professionals For CFOs it brings the technical knowledge vital to business success complemented with the strategic management skillsrdquo
54
Islamic FinanceMARKET OUTLOOK
wwwthecfomecom
In its 10th instalment the Forum is hosted in Dubai as a direct result of the UAErsquos increasing importance in the world of global Islamic finance
THE WORLD ISLAmIC ECONOmIC FORUm LANDS IN DUBAI
In Dubairsquos continued quest for leading the world across a range of spectrums the Emirate accelerated its desire to become the worldrsquos leading hub for Islamic finance by hosting the 10th installment of the World Islamic Economic Forum (WIEF) Delegates from dozens of countries attended to take part in a three-day event held at Madinat Jumeirah which rests alongside Dubairsquos gleaming coastline Held under the patronage of His Highness Sheikh Mohammed Bin Rashid Al Maktoum the
Vice President and Prime Minister of the UAE and Ruler of Dubai key speakers included The Honorary Dr Zeti Akhtar Aziz Governor of the Central Bank of Malaysia HE Kairat Kelimbetov Governor of the National Bank of Kazakhstan The Honorary Datorsquo Sri Mohd Najib Tun Abdul Razal Prime Minister of Malaysia and HE Xavier Bettel Prime Minister of the Grand Duchy of Luxembourg
Launched in 2006 in Malaysia WIEF has grown in tandem with the increased
Delegates from dozens of countries attended WIEF to take part in the three-day event
sophistication and reach of Islamic finance After a successful event in London in 2013 amidst increased interest in Islamic finance across Europe WIEF relocated to Dubai where the local business structure is keen to host halal finance
Said Hamad Buamim President and CEO Dubai Chamber of Commerce and Industry co-organisers of the event ldquo[The forum] is the start of a new chapter of cooperation between Dubai and the world as part of
55
Islamic FinanceMARKET OUTLOOK
wwwthecfomecom
Dubai Capital of Islamic Economy visionhellipestablishing a unified regulatory authority to provide the framework for standards across halal industries will significantly accelerate growth Likewise we need to see increased cooperation and partnership between the public and private sectors This is already happening with great success here in Dubairdquo
The order of global cooperation needed to facilitate growth across the Islamic finance world was more than apparent at WIEF based on how many differing nations were represented at the event The exhibitorrsquos hall was populated with a number of key Malaysian stands representative of the Southeast Asianrsquos ranking as the global leader in Islamic finance Also present were companies from Saudi Arabia also a key locality in the worldrsquos halal industries An interesting yet prescient presence was of attendees from South Korea a nation which is eager to participate in Islamic finance and will be hosting the WIEF Pyeongchang Roundtable in December 2014
ldquoGangwon is a province located in Korea which is very interested in new business opportunities Wersquove realised the strength of the Islamic economy and have come here with many different companies The first type is based in real estate investment We also have companies which want to export their products to the Islamic economy based on their halal qualities And Gangwon will also be hosting the Winter
ldquoKorea is very interested in the strength of the Islamic economy and wants to export its products based on their halal qualitiesrdquo
56 wwwthecfomecom
$247trillionProjected value of halal products industry in lsquo18
125Muslim percentage of global tourism expenditure
STAT FACTSOlympics in 2018 and are presently seeking investments for this as wellrdquo said Seong-hun Kim a member of Gangwon Province Governmentrsquos Export Support Team
Dubai proved to be an excellent place for the event considering how well the UAE is able to so regularly corral international cooperation A key sign of this was witnessed recently when Luxembourg now considered the third most important base for Islamic finance globally opened a finance office in Dubai International Finance Centre The European nation also opened a euro200 sukuk earlier this year which was quickly oversubscribed
The prime minister of Luxembourg offered the WIEF audience a riveting speech which detailed just how international the Forum has become whilst encouraging more of the world to support the growing influence of Islamic finance
Said Bettel ldquoWe need to innovate more economic partnerships for growth We sometimes need to reengineer relationships but also have to make sure these relationships remain sustainable Growth in one country also brings growth to others as long as this is guided by free market initiatives Free trade and free flow of capital combined with innovation leads to prosperity We have all gathered here in Dubai to explore the future of Islamic finance and Luxembourg is also a pioneer of Islamic finance in Europe The Islamic financial sector has a major role to play in continued global growthrdquo
The Islamic Corporation for the Development of the Private Sector (ICD) is based in the Kingdom of Saudi Arabia where it manages an international fund worth $2 billion half of which is available for subscription With shareholders in more than 50 countries and a sovereign sukuk fund recently launched in West Africa the ICDrsquos CEO Khaled M Al Aboodi attended WIEF this year excited to participate in the global event
How does the ICD approach its attendance at the World Islamic Economic ForumI think the Forum is one of the best places for discussing the financial issues of the OEC member countries It has been around for ten years and has grown to become a very important platform for discussion Wersquore here to attend and listen but also to network Itrsquos a great networking platform and a place to share views whilst letting everyone know what we have to offer
How has Islamic finance changed over the yearsOf course itrsquos growing in a large scale Some of it actually needs more support particularly with respect to regulatory frameworks Wersquore trying to partner with many international organisations like the IMF to try to provide support to countries to adapt regulation for Islamic finance Sukuk issuance is one of the biggest issues that needs to be addressed because there is a huge amount of liquidity in this arena Due to issues related to regulation sukuk issuance can be costly But with the regulation we are confident it will be on a level playing field with other forms of finance Compliance is a major area where more work can be done The Forum started with a roundtable on sukuk which shows how helpful WIEF has been over the years
What type of work does ICD do internationallyICD helped the government of Senegal to issue the first sovereign sukuk This was successfully issued last summer Progressing in this manner is something wersquod like to see continue across West Africa in order to utilise its resources with aiding development in the region in mind
QampA WITH KHALED M AL ABOODI CEO OF ICD
Islamic FinanceMARKET OUTLOOK
OFFICIAL SPONSORS
ENDORSED BY OFFICIAL HOST OFFICIAL
COMMUNICATIONS PARTNER
MEYDAN HOTEL DUBAI UAE19 - 20 NOVEMBER 2014
WOMENOMICSthe next emerging market
TAKE PART in making change happen UNITE with business and through leaders from across the globe
PARTICIPATE to the expansion of a modern and inclusive economy
58
Gautam PradhanINTERVIEW
wwwthecfomecom
SUCCESS BEyOND BOUNDARIES
in other management roles such as strategic decision making mentoring and leading efficiency and productivity across a range of other departments and functions as well as a being a catalyst in ensuring that the boardrsquos vision for the organisation is achieved
A significant percentage of NMDCrsquos shares are owned publicly Does the CFO play a role in balancing the interests of the shareholdersAs a CFO balancing the shareholdersrsquo interests is definitely part of my responsibility In order to achieve this goal there needs to be a careful evaluation of each decision while keeping the short-term and long-term goals of the company in mind At NMDC we actively implement a system where we utilise a balance scorecard as a method of ensuring that all our primary objectives are met yet at the same time continuously enhance our relationships with our shareholders
NMDC has completed various projects across the Emirates Are there plans to move abroadAs NMDC moves towards becoming an international player our strategic expansion plans are focused in areas within the GCC region and India In line with this strategy we opened
How has a company with such a unique set of deliverables grown so consistently over the yearsOur organisation strongly believes that the core to our strength is the people process and equipment A strategic decision led by our Board of Directors and the senior management has been implemented that required us to consistently invest in these three aspects to help expand our business beyond the territorial boundaries of the UAE and at the same time enhance what we can offer which is relevant to these segments We attribute our success to the efforts which every employee contributes We also strongly believe in the ldquoWe can make it happenrdquo principle The management raises the index of performance while setting SMART objectives within the organisation and encouraging the employees to achieve them
How has your position as the CFO changed over NMDCrsquos 35 years of operationAs the market evolves and business dynamics change my role as the CFO has become complex and more challenging A few years back I was mainly focused on bookkeeping accounting and other financial responsibilities such as arranging bank facilities But moving forward I became more involved
The UAE is progressively becoming a hub for world-class infrastructure The country has duly impressed the rest of the globe with noteworthy land developments showcased across the emirates Among the remarkable landscapes found in Abu Dhabi are the Corniche Beach Yas Island and Sir Baniyas Island Behind these successful projects is NMDC the dredging division of Abu Dhabi National Oil Company (ADNOC)
In an interview with CFO Magazine Gautam Pradhan Chief Financial Officer NMDC shares an exclusive look into the companyrsquos international blueprint for growth and his dynamic role as a strategic leader of one of the best in dredging and marine construction in the Middle East
59
Gautam PradhanINTERVIEW
wwwthecfomecom
branches in Qatar Bahrain Oman and India This has paid rich dividends recently as projects of strategic importance are bagged in Qatar and Bahrain Furthermore NMDC (UAE) has recently played a key role as a leader of an international consortium with Royal Boskalis Westminister (Netherlands) and Jan De Nul Group (Belgium) for the awarding of the Suez Canal Dredging project in Egypt Moving forward we have devised a strategic approach that will enable us to play a key role in the development of Indiarsquos marine infrastructure
What are the global strategies that are part of the CFOrsquos responsibilitiesAs CFO understanding the macro economic scenario risk analysis and mitigating those risks are all a part of my responsibilities I also have to have a proper comprehension
ldquoA few years back I was mainly focused on financial responsibilities moving forward I became more involved in strategic decision making mentoring and leading productivityrdquo
Gautam PradhanINTERVIEW
60 wwwthecfomecom
of the challenges faced by the company in terms of dealing with foreign contracts direct and indirect taxes and hedging and managing the integration process These are essential to enhance shareholders wealth and mitigate undue risk
How significant is accountancy for NMDC in its operations Why exactlyAccountancy is the lifeline of any company it does not only record the finances it also reflects the health of the organisation The MIS reports analysis trends and statistical information go a long way toward effectively providing
the diagnostic approach essential for the company
How have NMDCrsquos environmental activities helped the companyrsquos bottom lineNMDCrsquos work is well-synchronised with our environmental activities and specifically with nature Our activities are closely linked to sand and water and we view such activities with strategic importance Projects such as increasing water supply to mangroves and beach nourishment help us support the environmental activities while adding to our bottom line
ldquoAccountancy is the lifeline of any company it does not only record the finances it also reflects the health of the organisationrdquo
A burgeoning slice of Abu Dhabi coastline
The largest business awards
in the GCC30th November Dubai
nominate now at wwwstarsofbusinessawardscom
Stars of Business has become an iconic awards brand like no other in the region It recognizes the very best SMEs across 26 business categories Itrsquos universally respected as scientifically assessed and unimpeachably judged
327000 SMEs across the UAE$234 billion estimated total revenue of the SME sector4974 Awards entries in 20131856 Individual company applicants
Presenting Partner Strategic SME Partner Gold Sponsor Gold Sponsor VIP Hospitality Partner Supporting Partner
Trade Facilitator PartnerTrade Credit PartnerLogistics Partner
Institutional Partner Institutional Partner Event Partner
OrganiserPublisherMedia Partner Media PartnerPort Authority Partner
62
David Allen INTERVIEW
wwwthecfomecom
What went into completing your bestseller ndash Getting Things Done (GTD)After twenty years of researching developing and implementing a methodology for achieving stress-free productivity based upon
thousands of hours spent desk-side with
some of the best brightest and busiest people in the world I decided to write the manual for it Thatrsquos what Getting Things Done is
What are the five phases of mastering workflowIn order to get
any situation under control so
you can focus you will utilise these five
steps Whether yoursquore managing your kitchen
or your company you will need to collect and capture what has your attention clarify what if anything to do about it organise it according to what it means to you review and reflect upon it in relation to
Todayrsquos evolving CFO is often caught between the world of business set-up generating revenue managing employees and building strong company infrastructure When can things actually get done What can one do to boost productivity and master workflow World-renowned business coach David Allen has the answers
PRODUCTIvITy PRINCIPLES WITH
DAvID ALLEN
63
David Allen INTERVIEW
wwwthecfomecom
those are greatly subvertedHow does one maintain a fair balance between the time spent planning and actually getting things doneYou simply need to spend just the amount of time you need to to trust that what you are getting done is the right thing to be getting done in the moment It takes as long as it takes to get to that point Why would you do anything less
How can one apply your core productivity and workflow principles to todayrsquos technologically driven environmentThe principles and their techniques are system-independent Whether you have meaningful input from the Internet your smartphone or a conversation in the hall you must engage with it equally Technology has simply increased the flow of input and ease of distraction in your world
There is a lot of talk about how connected wersquove become and how connectivity is driving tremendous business growth Does connectivity actually come with its fair share of downsides
Connectivity is obviously a two-edged sword We can have intimate productive and creative interaction instantly with someone on the other side of the world and we can just as easily be distracted and seduced into those engagements when they may not be the best use of our attention and resources Donrsquot shoot the medium Itrsquos all simply bringing attention to your clarity of direction and priorities or lack thereof
Could you share a few quick tips with our readers to instantly boost productivityWrite everything down that has your attention Decide the very next actions required to get closure on all of them Any next actions that require less than two minutes do instantly Park reminders of everything else somewhere that yoursquoll see when you can do something about them
We are currently facing a massive information overload What are some basic principles you could suggest to mentally organise such large amounts of dataConstantly ask yourself Where am I going Whatrsquos important and rewarding to me Is this information
the whole and then engage your resources with intuitive trust
As a CFO how can you transfer efficient workflow management skills to your employees Itrsquos very difficult to legislate processes for individuals ndash you can really only hold them accountable for their results But if you are managing your own commitments and intersections with them with integrity and rigour it will automatically force your team to ldquostep up to the platerdquo in their own behaviours in order to meet your standards If you request their complete list of their company projects and they canrsquot produce it thatrsquos a sign theyrsquore not in control If they make a commitment to you that they havenrsquot kept thatrsquos data about their performance GTD is simply about good operational business practices
With so many planning and organising activities in your methodology is there a risk of losing spontaneity as a strategistThe reason for these best practices is to optimise freedom creativity and spontaneity Without them
ldquoBut if you are manag-ing your own com-mitments and intersec-tions with them with integrity and rigour it will automatical-ly force them to ldquostep up to the platerdquo in their own behaviours in order to meet your standardsrdquo
64 wwwthecfomecom
supporting that Park whatever you find potentially meaningful somewhere that is easy to access when needed
Being an entrepreneur is a non-stop job How do you ensure that you have an adequate work-life balance Pay attention to what has your attentionmdashwith regard to anything Your health relationships career finances etc Notice when something might be ldquooffrdquo and make good decisions about what you need to do to get it back ldquoonrdquo again
Does your work teach people to be efficient or effective In essence they are the same thing Effective choices are generated by efficiency on a higher level If you want to implement strategy most effectively it demands utilising your resources optimally which is efficiency
Does motivation actually improve quality of work or purely quantityDepends on the focus of the motivation You can be motivated to work harder and you can be motivated to work smarter
What is your favourite productivity mantra that
you implement in your day-to-day lifeUsing my own in-basket and note-taking devices to capture potentially meaningful and valuable ideas and soon afterwards clearing all of them out by deciding what to do about them if anything
Your books seminars and other work inspires many individuals and businesses Who is your personal inspiration or role model I have many about many different aspects of my life The only person though that I ultimately trust as my best guide is my higher self which I try to access as frequently and clearly as I can
Finally what advice would you give to current business owners and aspiring entrepreneurs looking to gain complete control of their life and businessCapture what has your attention clarify what you need to do about it to get it off your mind organise the inventory of all your commitments at all levels review and reflect on all of that regularly relax and trust your inner wisdom to engage with the most appropriate thing in the moment
ldquoIf you want to implement strategy most effectively it demands utilising your resources optimallyrdquo
David Allen INTERVIEW
APPSTECH TALK
wwwthecfomecom 65
mAxImISE BUSINESS lsquoON-THE-GOrsquo WITH THESE HANDy APPS
ipAd SpECIAL
SAMSUNG UNvEILS GALAxY NOTE EDGE
Network
AP
Display
OS
Camera
Video
Audio
Additional Features
GoogleMobile Services
Connectivity
Sensor
Memory
Dimension
Battery
The availability of service may differ by country All functionality features specifications and other product information provided in this document including but not limited to the benefits design pricing components performance availability and capabilities of the product are subject to change without notice or obligation
Samsung Galaxy Note Edge Product Specifications
25G (GSM GPRS EDGE) 850 900 1800 1900 MHz3G (HSPA + 42Mbps) 850 900 1900 2100 MHz4G (LTE Cat 4 15050Mbps) or 4G(LTE Cat 6 30050Mbps)May differ by country and carrier
27 GHz Quad-Core Processor
56 inch (1419mm) Quad HD+ Super AMOLED (2560 x 1440 + 160)
Android 44 (KitKat)
Rear Facing 16 Mega pixel Auto Focus camera with Smart OISFront Facing 37 Mega pixel camera with f19Rear Facing Camera HDR (Rich tone) Selective Focus Rear-cam Selfie Beauty face Virtual Tour Shot ShotampMore Dual CameraFront Facing Camera Selfie Wide Selfie
Codec H264 MPEG-4 H263 VC-1 WMV7 WMV8 Sorenson Spark MP43 VP8 Recording amp Playback up to UHD
Codec MP3 AACAAC+eAAC+ WMA AMR-NBWB Vorbis FLAC()() Ultra High Quality Audio (~192KHz 24 bit) support
Multi WindowUltra Power Saving ModeVoice Recorder (Normal Mode Interview Mode Meeting Mode Voice Memo)Download BoosterS Health 35Dynamic Lock ScreenBriefingEdge screen UX Revolving Interaction Immersive apps(Camera Video S Note)Ticker board Express me Quick Tools Night Clock etc
Chrome Drive Photos Gmail Google Google+ Google Settings Hangouts Maps Play Books Play Games Play Newsstand Play Movie amp TV Play Music Play Store Voice Search YouTube
WiFi 80211 abgnac (HT80) MIMO PCIeGPS GLONASS BeidouNFC Bluetoothreg v 41 (BLE ANT+)IR LED (Remote Control) USB20 MHL 30
Gesture Accelerometer Geo-magnetic Gyroscope RGB IR-LEDProximity Barometer Hall Sensor Finger Scanner UV Heart Rate Monitoring SpO2 (Dependent on market)
32 64 GB Internal memory + microSD slot (up to 128GB)3GB RAM
1513 x 824 x 83mm 174g
Standard battery Li-ion 3000 mAh Fast Charging (Adaptive Fast Charging amp QC20)
wwwthecfomecom66
APPSTECH TALK
AIR DISPLAY
SQUARE REGISTER
Using this app you can connect your iPad to your computer and use it as an additional screen While working on an important presentation or sales proposal you can extend or mirror your computer screen on your iPad This app is compatible with both Mac and Windows computers Note that to use this feature you have to install Air Display on your iPad and a separate free app on your computer The computer and iPad also need to be on the same Wi-Fi network in order to work in-sync
For Mac users the app allows you to connect to up to four screens ndash all at the same time
Apart from the ability to convert your iPad into a wireless display whatrsquos also attractive about this app is that it allows you to control your computer wirelessly using your iPad
This fantastic application can serve as a mobile point of sale for your business It allows you to accept credit card payments ndash including Visa MasterCard Discover and American Express A transaction fee of 275 is charged for every time you swipe a card The sale amount is transferred to your account within two working days
Once you download the app you can sign up and register for a unique card reader solution called the lsquoSquare Readerrsquo (this is free) Square Reader encrypts all card details and ensures that the transaction is secure Once you receive your Square Reader you can connect it to your device and are all set
The application also offers added features such as transaction history connecting to a receipt printer creating employee logins and more
AED 3699
PRICE
Free
PRICE
wwwthecfomecom 67
APPSTECH TALK
DOCUSIGNHave you ever been in a situation where your employees need you to urgently sign a contract but arenrsquot able to physically reach you in time DocuSign solves this problem with its easy-to-use eSignature feature In three easy steps you can sign important documents and securely send them to your intended recipient
First you have to import the document to your device ndash this could be from Dropbox Google Drive or another select applications You then place your signature or any other important legal information you need to include such as initials Once you have finished working on the document send it back via e-mail
Whatrsquos particularly great about DocuSign is the great emphasis it puts on security ndash so that users donrsquot have to worry about getting into any legal trouble
Use DocuSign and never miss a deadline again
Free for basic version
PRICE
MPAYAn initiative by the Dubai eGovernment Department mPay is a simple application that allows you to make important payments Once yoursquove signed up and entered your payment details you are good to go You can pay your Dubai Electricity and Water Authority (DEWA) bills Etisalat utility bills Dubai Police fines Recharge SALIK and much more
A handy feature is its lsquoauto-rechargersquo option which you can use to set automatic payments
Free
PRICE
Opinion CIMAPERSONALITIES
wwwthecfomecom68
NEW HORIZONSBy geetu Ahuja Head of gCC at CIMA
The days of the traditional accountant working within a small community in a small town in a small market have long gone CFOs are now being referred to as Chief Frontier Officers as they travel from market to market overseeing their offices overseas This new expanded role has distinct advantages for both the company and the CFO who gain new skills and new insights from foreign branches a single hand at the helm of many markets provides business perspectives on a global scale and benchmarks across the board
On a personal level working abroad also has huge importance Robert Walters the specialist professional recruitment consultancy recently conducted a survey
of almost 2200 employees across a variety of professions exploring a number of topics which ranged from working practices and attitudes to careers The results highlighted some notable trends particularly for finance professionals
In career progression for example the survey showed that 50 of all accountants see working abroad as either lsquoessentialrsquo or lsquoextremely usefulrsquo to furthering their prospects more than banking professionals lawyers and IT workers ndash a strong indication of how accounting professionals are thinking about their future either within their existing company or with opportunities elsewhere
Accountants with globally recognised qualifications obviously have a greater chance of gaining some experience abroad and the lsquoGen Yrsquo professionals in particular seem ready to pack their bags In a CIMA study conducted in the UK last year over a third of those seeking employment in the
next two years will prioritise opportunities abroad over those in their home countries many of them enticed by the career incentives offered by the Middle East
How quickly can they land what seems to be their dream job What are the realities It may be that the move is simply from one branch to another and the only significant difference is a view from the window but for those expanding rather than changing their roles we have seen a very real need for a depth and breadth of knowledge never needed before
As geographical boundaries are pushed ever-wider a CFOrsquos responsibilities are pushed with them For many finance executives the understanding of their own patch of land is no longer enough they now have to be aware of foreign markets up to speed with foreign trends and au fait with foreign laws There is a need for a new commercial awareness in geography as well as philosophy
As geographical boundaries are pushed ever-wider a CFOrsquos responsibilities are pushed with them
John vargheseQampA
wwwthecfomecom 69
BUSINESSSET UP YOUR
IN THE UNITED ARAB EMIRATES
TO
WAREHOUSESOFFICES INDUSTRIAL LANDFLEXI
Quick and easy company set-up
Less than an hour drive from Dubai
Complete cost-effective packages including licences and facilities
100 foreign ownership
Zero income and corporate taxes
Eligibility for UAE Residence Visa
BUSINESS SET-UP SOLUTIONS STARTING FROM AED 15000 (USD 4000)
RAK FREE TRADE ZONE PROVIDES
RAK Free Trade Zone Authority - Government of Ras Al KhaimahUAE (Ras Al Khaimah) Tel +971 7 2041111 (Dubai) Tel +971 4 7041875 (Abu Dhabi) Tel +971 2 6994888
Germany (Cologne) - Turkey (Istanbul) - India (Mumbai)
Call +971 7 204 1111 Visit wwwrakftzcom Join rakftz
Al Sharid is the Vice Chairman of Emirates Transport and has enjoyed a successful career in which the lionrsquos share of his tenure has afforded him a seat at the helm of the business
ldquoI remember when I first received the GM of Tata in the late 80s he said to me lsquoYou are the youngest GM I have ever metrsquo I was 29 years old at the timerdquo Looking at Al Sharidrsquos rapid ascent to the top of his organisation can be mind boggling to the average observer however to those few who strive to push themselves to their limits it is perhaps more common a reality As with any top performer we can often see their desire for results and impact
early on in life and with Saeed the first stride of his race to the top began with an accounting degree in university
It was 1976 and the excitement of the UAErsquos biggest milestone moment its inception just five years earlier still clung to the air from Fujairah to Abu Dhabi and every emirate in between A nation was being built Saeed had just finished high school and went to the United States where he was to study engineering
ldquoI was not yet 18 years old it was 1976 and I was sent to America to study it was the beginning of a dream and a young liferdquo says Al Sharid Unfortunately Al Sharidrsquos academic tour of duty came to
THE EmIRATI DREAm Saeed Al Sharid is today an elder statesman in the world of UAE accountancy With decades of know-how based on chairing a number of key Emirati organisations Al Sharid is today atop his own family firm In the following exclusive interview he shares the importance of education the evolution of a nation and just how being an accountant has driven his many triumphs
an abrupt halt when his father suddenly passed and he was forced to return home ldquoWe are seven brothers and I am the middle one so during tough times we always come together and during this period the strength of my family pulled me through I have three younger brothers and I felt I had to be there for them I felt responsible for them My mother played an omnipotent role in pulling us through this dark moment in our history The death of my father forced us to become more independentrdquo says Al Sharid
Now back in the UAE with his plans of studying abroad dashed Saeed looked at the local schooling system within which Al
26
InterviewPERSONALITIES
wwwthecfomecom
Saeedrsquos desire for results took its first stride with an accounting degree in university
By Shane phillips
27
InterviewPERSONALITIES
wwwthecfomecom
Ain University had just opened ldquoAl Ain University was the pride of the Emirate at the time the students were like celebrities The first batch of graduates were all promised 50000 AED from HRH Sheikh Zayed I was one year late so technically I should not have graduated with the first batch but I was determined I worked an extra course load did summer school and soon caught up to the first class 50000 AED in 1981 was like 5000000 AED today so I was very motivatedrdquo says Al Sharid
Saeed not only caught up with the other students but he wound up graduating atop Al Ain Universityrsquos first class of graduates with a 38 GPA ldquoWe Saeed Al Sharid
28 wwwthecfomecom
to the organisationrdquo he says Saeed first joined Emirates Transport after seeing a small newspaper advertisement for an accountantrsquos position He applied but initially they did not want to hire a local because locals were too expensive After a few months however they called him back for an interview and offered him a job
Initially Saeed struggled to get a promotion or even a raise He worked tirelessly to develop himself and kept detailed notes of his work After nearly two years went by with no promotion he requested to meet with the Chairman of the corporation to discuss his career The Chairman was a Minister making him even more senior than his title implied Al Sharid was courageous and determined ldquoYou should not stay silent you have to take initiative your future is in your handsrdquo says Al Sharid
ldquoI met with the Chairman and told him about my work and what I wanted to do He did not talk he just listened and that was it It was a 15-minute meetingrdquo says Al Sharid Three days after Al Sharidrsquos pivotal appointment he was promoted to Deputy General Manager Directly from a Trainee to DGM skipping all the roles in between at the age of 27 years old They doubled his salary and catapulted him into a senior leadership role
ldquoI felt it was quite strange to move up that fast and personally was not sure I could handle the job I had a lot of resistance from the board I had people in their 50s reporting to me and they were not happy about it So I just took a step back and did not try to get involved in their work too fast I went slow and watched my step This was a very important
ldquoThe UAE was a brand new country and a lot of work was being done to develop the nationrdquo
never had any idea of a career path and there was no such thing as career counsellors or lsquocareer servicesrsquo at the school So when you graduated most people just joined the Ministries The UAE was a brand new country and a lot of work was being done to develop the nation The Federal Government paid the highest and so one just joined them There was no grand vision or dream that I was off and chasing In those times you simply tried to do the next best thing So I ended up working in the Ministry of Health as an accountant Back then a university degree was a veritable qualification and it had a lot of market equity today it wonrsquot even get you in the doorrdquo
As the Middle East market evolves not only are university degrees becoming more common but so are post graduate degrees such as MBAs and even PhDs As such the competitive positioning of professional qualifications are gradually eroding over time
ldquoTo stay competitive executives today will require deep and specialised knowledge of their respective industries an intellectual arbitrage that provides superior results To beat the market to manage the risks to develop a sustained competitive edge For this executives need to stay in a role for the full strategic cycle which is at least four years in durationrdquo says Sharid In the case of Al Sharid he was there for 33 years
ldquoDo you just want a job or are you looking to make a contribution to your company Too many young people today are just looking for a title or a position The difference between those who make it into senior roles and stay there is the desire to create impact to add value
InterviewPERSONALITIES
2012year Moodyrsquos upgraded the UAE economy from developing to emerging
37The UAErsquos global rank for GDP
STAT FACTS
moment for me to gain valuable leadership experience early on To make my learning curve even steeper the General Manager quit after two years and I became the GM at the age of 29 years oldrdquo explains Al Sharid
He ascended to the top job in less than five years and stayed in the position for almost twenty years He was totally committed and could even be found in the bus yard at four in the morning to greet the drivers as they started their shifts ldquoThe key to being successful in business is to keep your finger on the details Some people let the details slip and if this happens you will suffer I get into the yard I meet the drivers I meet all the staff If you saw us you will not know who was the GM or who was the driver You have to realise people will never work for you they will only work with you To me Emirates Transport is like my familyrdquo says Al Sharid
When asked what his keys to success are he says ldquoI think if I was not an accountant I would not be a good leader I would not be a good manager In my opinion trying to do business while not understanding accounting is like getting into the ocean and not knowing how to swim you will drown The Chief Executive Officer who does not know how to create the financial statements is always at the mercy of his Chief Financial Officer He cannot take any big decision on his own and he will not even be able to challenge the CFO Accounting is the bedrock of any business and a critical skill set for any leader No one can argue with this factrdquo says Al Sharid
With over 20 years of experience in tow and the related chairmanships to boot Al Sharid
ldquoTrying to do business while not understanding accounting is like getting into the ocean and not knowing how to swim you will drownrdquo
has since early last year partnered with his family to form Al Sharid Auditing Though the Emirati youth is not as keen to pursue positions related to accountancy as Al Sharid was he feels that there is hope to close the gap
ldquoIt is difficult to find an Emirati expert I studied the audit market specifically and there were others like me then But now you break Emirati auditing involvement into three categories The first involves the big firms This is followed by individual smaller enterprises But thirdly a lot of locals opt to work with the government also Most are not managing their own firms they just have a partnership and they are building thatrdquo Al Sharid explains
ldquoAl Sharid Auditing however is a firm that includes my brother and our two sons which make up a body of qualified professional auditors We established this firm last year and work closely with the government We decided to make one firm together instead of having many smaller entitiesrdquo
Moving forward Al Sharid plans to grow his familyrsquos firm by applying the very belief system which has catapulted him to his position of power Marketing concerns which are designed to furthermore announce how tailored Al Sharidrsquos offerings are at present a key variable to forging ahead
Said Al Sharid ldquoMoving forward wersquore focusing more on the marketing of our firm Itrsquos a matter of not exactly expanding but going over the right deals The market is tough and the small jobs are easy but we donrsquot need them We donrsquot want to be in many rooms we want to be in the important onesrdquo
29wwwthecfomecom
InterviewPERSONALITIES
1UAErsquos rank among GCC nations for chosen hub of all major accountancy bodies
STAT FACTS
Latest insights from PwCrsquos 15th Annual Global CEO Survey revealed that 59 per cent of CEOs see emerging markets as more important than developed markets to their future What is making emerging markets such a pressing priority for C-suite executives Why are emerging markets increasingly grabbing headlines
Emerging markets are large fast-growing and ambitious markets best known for being the growth engines of todayrsquos global economy Research (1) suggests that emerging market countries are expected to amount for more than 60 per cent of global GDP growth ndash a clear indication of the wealth of opportunity they present
Understanding emerging marketsBased on estimates by the International Monetary Fund emerging economies are expected to grow two to three times faster in comparison to developed nations Explaining this fast-growth and the rise of these emerging markets an article on Forbescom details that ldquoduring the US housing crash and resulting credit crisis of 2008 world markets were saved from a total disaster thanks to the big emerging markets ndash mainly Brazil India and China The global credit crisis was one of the longest deepest and most painful in history It toppled Wall Street icons like Lehman
The following report explores emerging markets from West to East which are at the helm of economic development trade and innovation and highlights what their rising popularity means for the growth of your business
Brothers required government bailouts of bulge bracket banks and shocked the global economy with a deep economic recession and even a deeper crisis of confidence Its most important legacy though may be one that has yet to fully unfold the crisis revealed a new world order in terms of economic and market dynamics Emerging market economies finally arrived as
30
Market IntelligenceANALyTICS
wwwthecfomecom
ENTERING EmERGING mARKETS STRATEgIES RISKS ANd OppORTuNITIES
Projected annual GDP growth 2014 amp 2015
PANAMA
67
PERU
RANK42
55
Projected annual GDP growth 2014 amp 2015
Ease of Doing Business
RANK55Ease of Doing
Business
TOP TEN MARKETS
(1) Source here Accenture Research ldquogearing up for growth ndash five imperatives for success in emerging markets 2011 Henry Egan and Armen Ovanessoff
31
Market IntelligenceANALyTICS
wwwthecfomecom
LATVIA
CZECH REP
MALAYSIA
THAILAND
SOUTH KOREA
CHINA
RANK75
41
21
50
45
35
74
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
CHILE
RANK 34
43
Projected annual GDP growth 2014 amp 2015
Ease of Doing Business
RANK 24Ease of Doing
Business
Ease of Doing Business
RANK 6Ease of Doing
Business
RANK18Ease of Doing
Business
RANK 7Ease of Doing
Business
RANK 96Ease of Doing
Business
POLAND
32
RANK45Ease of Doing
Business
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
Source httpwwwbloombergcomnews2014-01-29qatar-china-top-ranking-of-frontier-and-emerging-marketshtml
powerful essential and permanent contributors to global economic growth and sustainabilityrdquo
Bloombergcom recently ranked the top emerging markets based on their performance on 19 economic financial political and social indicators In order of ranking the top ten markets were
CHINA
SOUTH KOREA
MALAYSIA
CHILE
THAILAND
PANAMA
PERU
LATVIA
POLAND
CZECH REP
1 6
2 7
3 84 9
5 10
Market IntelligenceANALyTICS
32 wwwthecfomecom
Making an entryIf your business is looking to enter any of these emerging markets itrsquos worth considering the following checklist
1 Assess your readiness The biggest mistake you can make is to enter a market without proper evaluation of your business Donrsquot do it just because everyone else is Like every other major business decision be sure to speak to your Board of Directors partners investors stakeholders and most importantly your CFO and certified accountants Make a business plan enlisting your objectives goals investment strategy potential risks etc
2 Research research research Do your homework Treat emerging markets as any other international expansion venture and do thorough research on the new market ndash Who are the competitorsWhat is the price point for your product What are the customer demographics What kind of infrastructure do you need for the manufacturing production or distribution of your product
3 Understand the legal framework Emerging markets might not have rules and regulations as clearly spelled out as your home country Invest some time and money in understanding how business procedures work A very obvious area of focus for UAE-based companies is tax Since the UAE is a tax-free economy companies arenrsquot exposed to tax accounting and other legislation surrounding
ndash failing to adapt to the needs and expectations of the local customers is surely a recipe for failure Time and again companies havenrsquot been able to create a customised offer and have had to exit these markets with huge losses A success story however is that of the Haier Group Haier famously introduced washing machines to specifically suit the water pressure levels in the households of India ndash an emerging market strategy that worked very well in their favour and helped them become leaders in that sector Another great example is that of Coca-Cola as explained in an online Reuters article by Matt Reilly ldquoIn Brazil Coca-Cola has used social media to better understand consumer preferences and has developed a successful local network to supply traditional Coca-Cola products as well as fruit juices tailored to local tastesrdquo
7 Local currency This is a complex yet critical area to consider when entering a new market Ask yourself questions such as ndash What is the local currency rate How does it compare to the currency in your home country Is the country import-led or export-led and what impact can this have on the global value of the currency Remember that fluctuations in currency rates can hugely effect your overall investment and thereby the return on investment
8 Build partnerships When entering an unknown territory it is quite useful to have the backing and support of peers who can help you in case of unforeseen challenges This is
this Another area to consider is corruption ndash emerging markets are notorious for high corruption red-tape and bureaucracy Speak to your company lawyer to assess these areas and take proper measures to avoid them before-hand
4 Invest in local talent Working with people already accustomed to the new market avoids the hassle of relocation and reduces costs But more significantly gives you skilled talent to work in these unique environments This also works in favour of your company as it gives you a clear understanding of the kind of compensation packages you will have to offer to your employees For instance employees based in China might want high remuneration and low healthcare benefits while in India it may be quite the reverse Recruiting local talent will also have a trickledown effect ndash your employees will easily be able to cater to the local customer needs without the need for intense training
5 Supply chain 44 per cent of business leaders surveyed consider accessing the right supply chain capabilities extremely or challenging in emerging markets according to Deloittersquos Globalisation Survey Make sure that you know who your suppliers will be what the production costs are whether their production procedures fit your time constraints and if the final product matches your level of quality
6 Cater to local market demands This is one of the most important aspects of all
Do your homework Treat emerg-ing markets as any other internation-al expansion venture
Market IntelligenceANALyTICS
33wwwthecfomecom
the very reason why Mergers and Acquisitions are a popular way to enter into emerging markets Many companies piggyback on their clients who are entering these markets For instance if you are an IT consultancy working on a major project for a manufacturing and trading company with operations across India and China you can use their resources and expertise to explore opportunities in these countries
Remember to consider these steps every time you enter a
new market as every locality has its own set of unique needs One strategy doesnrsquot fit all
Surviving fierce market conditionsWhile the massive opportunity that lies within emerging markets paints a pretty picture businesses need to be wary of bottlenecks such as corruption volatility gaps in laws and regulations and strong competition There have been several high-profile cases of multinational companies withdrawing from emerging
markets owing to immense corruption pressures
There is also a high percentage of inherent risks in these markets which amount to many companies not succeeding in their first attempts It is important to take your time when adapting to these markets and fully understand the business dynamics Following recent case studies and going over the lessons learnt by multinational companies who have made an entry into these markets consider the below
bull Is your companyrsquos head-office ndash and senior management ndash located in your home country without any C-level representation in the new emerging market
bull Are you focusing all of your resources on doing business in the emerging market at the cost of losing profits in your home market
bull Have you researched local competitors in these markets who may already have a strong standing and proven models of success
bull Are you using the same ldquoentry approachrdquo and business model across different emerging markets
If your answer to one or more of these questions is yes it may be time to re-evaluate your presence in these markets and map out a different strategy
Finally remember that no matter what the outcome of your admission to these markets might be your business is sure to emerge out of this stronger tougher and ndash of course ndash ready for a new challenge
of companies believed they had invested more resources in
emerging markets than was required
entered a market without fully assessing the ability of the supply chain to support the expansion
entered with the wrong pricing model and an inappropriate
operating model
CONSIDER THE RISKS
48
24
20
There is also a high percentage of inherent risks take your time when adapt-ing to these markets and fully understand the business dynamics
Source Emerging markets expansion and the supply chain Economist Intelligence unit survey conducted on behalf of EY September 2010
34
CIMA INTERVIEW
wwwthecfomecom
The Chartered Institute of Management Accountantsrsquo (CIMA) Managing Director Andrew Harding visited Dubai to host the Institutersquos seminar on global management accounting principles In the wake of CIMA revising their well heralded syllabus Harding discussed with CFO Magazine what the newest edition held how CIMA is applying a digital focus to its courses and just how CFOs can gain from it all
CURATING CURRICULUm
35
CIMAINTERVIEW
wwwthecfomecom
can give CFOs something they can take and something they can measure their own management accounting services against They can benchmark using this and they can utilise this to see their progress
Part of that is having professional management accountant in place I donrsquot think the landscape matters I believe that there is a common business need wherever you may be around the globe
All of the emerging markets need these skills The first aspect that accounting schools teach is about auditing skills because theyrsquore interested in protecting investments Then they teach you how to keep your business sustainable and to have a sustainable business you need to have a management accountant in place So itrsquos not just here in the UAE where we see these demands we see the same demands in China Indonesia and other powerhouse economies We see their skills shortages and we see the need for solutions in those areas
Talk to me about how this new syllabus works to promote the evolution of a CFOThis syllabus that wersquove
Can you expound on just what can be found within the new CIMA syllabusWe just revised the syllabus we do that every four to five years What we have done this year is a very significant revision It is based from a complex study that we have carried out to over 3000 people from 200 companies globally It is the very first revision since the joint venture with CIMA and AICPA So this has allowed us to attain a syllabus rich with all the data from all the continents in the world For the first time wersquove had real involvement from companies in the USA in this project
Why is the collaboration between AICPA and CIMA significantMost important is the Chartered Global Management Accountant (CGMA) designation that AICPA and CIMA both issue for qualified management accountants Wersquoll have a common curriculum and common examination which will begin on January 1 which gives us a global designation for management accountants wherever they are around the world There are plenty of accounting bodies who claim to be global but actually this is the only
genuinely global designation This is because it has the only one with a North American participation in it So we can say that the CGMA will be just as well-recognised in the USA as it is in Dubai
With the global landscape in mind how do you create an even objective that applies to localities which may prove widely differentialThe landscapes are different but businesses have common needs wherever they may be What wersquove particularly seen since the global financial crisis is that companies are actively looking to build management accountant capability to build that capacity within their organisations They donrsquot want to have a poor quality of information that lacks insight being used in their businesses So they see management accountants can bring solutions to that As a result of all the work wersquove done with companies who participated in the syllabus wersquove also put together a series of what we call Global Accounting Principles This is a series of principles which describes what good management accounting looks like and what top quality management accounting in a company should be producing This then
ldquoCompanies are actively looking to build man-agement accountant capability to build that capacity within their organisa-tionsrdquo
36 wwwthecfomecom
worked on acknowledges the skill set needed by professionals throughout their career Therersquos a base level of competence that is needed but beyond that there is more There is business acumen the ability to communicate and influence and finally the ability to lead So you start off enhancing your raw technical accounting skills Then you need to place that into the context of the business that you are in Then as you move forward and as you rise to become the CFO yoursquoll need the others You have to learn how to present your work in a way that can influence and make an impact in the business The final piece is the ability to lead projects and other functions and to a great extent lead the board of directors Thatrsquos how the context works itrsquos not just about technical knowledge
How do you find that CFOs in the GCC region are responding to this programmeThe CFO has a real challenge on his hands now In 1975 80 per cent of corporate value is showing on the balance sheet By 2010 that dropped to less than 20 per cent Your traditional PampL reports no longer reflect the value of the business or how the business drives value
All things that should be of interest to investors is missing With things like the integrated report initiative wersquore starting to see the other dimensions that add value to business For CFOs thatrsquos all about strategic thinking and considering the long-term objectives Being articulate in implementing those strategies keeping in mind the risks and opportunities that the business faces We are also nowadays witnessing a whole new world of transparency around that
Are there electronic aspects to CIMArsquos advancing approachThe interactive case study simulates a real working situation and it tests how they can apply their knowledge in real life situations Theyrsquoll be presented with a scenario a few weeks before they take the exam so they can prepare for it They then go to an exam centre where they are asked questions about how they will deal with a certain situation in the real world Theyrsquoll get an email from the CFO giving them a certain task for a particular period of time We want to make it as close to reality as possible so students taking the exam will be assessing situations based on real life scenarios
ldquoThe CFO has a real challenge on his hands now as traditional PampL reports no longer reflect the value of the businessand [the role] must focus on strategic thinking and considering long-term objectivesrdquo
218KCIMA members worldwide
STAT FACTS
CIMA INTERVIEW
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
38
ERPANALyTICS
wwwthecfomecom
Faster more nuanced IT solutions are available to the modern day CFO Whilst Chief Financial Officers are called upon to analyse data across a number of spectrums the digital tools on hand are likewise being expanded to aid in focusing more squarely on the bottom line
ExCELLING WITH ERP
The global landscape is today firmly entrenched within a digital model As a result CFOs whom are called upon to take a larger role in a number of variables must also increase their abilities with respect to utilising the many upsides which tech innovations offer a business When surveyed about their most pressing concerns CFOs generally return a varying collection of responses Revenue growth regulatory changes and meeting quarterly goals are among the chief concerns Virtually every obstacle can be hurdled by way of maintaining the order of financial reporting and data which has long been
synonymous with the Chief Financial Officerrsquos remit A widening berth of ERP solutions is making this data all the easier to come by
Despite how sophisticated the market is today it was not long ago that ERP departments once spent days processing business reports
Said Rohan Tejura Assistant Vice President Focus Softnet ldquoTraditional ERP systems were solely data repositories Moreover these repositories werenrsquot real time and were incredibly dependent upon locational connectivity With the emergence of smarter development platforms more versatile devices and
39
ERPANALyTICS
wwwthecfomecom
more intuitive designs of system development the overall experience of the ERP now extends from data warehousing to reporting analysis trend mapping business intelligence and governance oriented capabilities Yet these solutions amazingly execute all of these deliverables via portable handheld devices and through cloud environmentsrdquo
New generation ERP systems must now be on the go whilst including up to the minute analytics to provide deeper insight into the business ERP Analytics tools use historical data captured from various business functions to provide valuable information for efficiency and business performance each incredibly priceless to a leading CFO
Finesse is an ERP provider which is continually addressing the transformation of output which the ERP industry is offering the equally transitioning role of CFO
ldquoWe provide end-to-end business management solutions to SMEs and Enterprises Our approach to ERP is much more than providing simply an operational management systemrdquo said Finesse COO Sunil Paul
ldquoWe believe that todayrsquos businesses need much more than integrating sales with inventory accounting and manufacturing but also to have seamless integration with all their sales channels including the point of sales ecommerce and inbound sales solutionsrdquo
A major im-petus of the ERP-cen-tered growth is based on how effec-tive com-prehensive real-time data proves to be for the CFO
40 wwwthecfomecom
before thereby creating new global benchmarks for overall economic growth
Microsoft Arabia CFO Sadrul Khan offered insight into just how far the knowledge economy has influenced regional financial leadership by explaining how one of the most prioritised technologies by CFOs in the region is social platform monitoring
ldquoOne of the five technology choices that CFOs tend to prioritise in boosting productivity efficiencies and faster decision making in the fast paced business environment which include a social platform that monitors trends customer sentiments and helps process mashable data for customer centricity and business growthrdquo said Khan
A major impetus of the ERP-centered growth is based on how effective comprehensive real-time data proves to be for the CFO Whether employed as on-premise ERP software-as-a-service or cloud-based solutions a nearly identical ethos is being utilised Allowing the CFO to quickly access the performance of all facets of a business is paying dividends in the boardroom a reality which is showing itself increasingly in the Middle East
The technologically-charged relationship between ERP solutions and the regionrsquos CFOs is expanding and as a result has catalysed what many see as GCC economic performance outstripping that of many economies outside of the region as a result
In order to compete in todayrsquos fiercely competitive environment organisations need to think both innovatively and out of the box They require more insights about their business and their customers and need to ensure that they are able to meet the expectations of their internal as well as external stakeholders Enormous amounts of data both structured and unstructured is continuously being generated within the internal and external systems of the organisation which if analysed can be of immense value both to the business and subsequently the stakeholders associated with the organisation
With the the era of CFOs labouring over spreadsheets now in the past given how many business frontiers have become so dependent on mobile options such as the cloud more and more tech companies are providing the regionrsquos CFOs with information technology that converts traditional internal and external data into rich visual insights This information is then used for faster decision making and provides the ability for a CFO to assess manage and control risks Regional CFOs have grown enabled to drive corporate strategy accordingly demonstrating how the knowledge economy is now in full force amongst the Gulfrsquos corporates
Given that advanced IT has now become a regular CFO tool the regionrsquos CFOs are subsequently making faster decisions and driving internal growth models with greater speed and agility than ever
Tech companies are providing the regionrsquos CFOs with information technology that converts traditional internal and external data into rich visual insights
ERPANALyTICS
Donrsquot discoveritrsquos counterfeittoner afteritrsquos too lateOriginal HP Toner works first time every time1 unlike cheap toners which fail over half of the people who try it2 Non-HP toner can compromise your printerrsquos performance to give you streaked blotchy or faded prints Only original HP Toner cartridges deliver unmatched quality for the most professional-looking prints 100 of the time1
1 A QualityLogic 2010 study commissioned by HP comparing original HP LaserJet Monochrome print cartridges with nine brands of non-HP toner cartridges available in Europe Middle East and Africa for the HP LaserJet P1505 and P4015 printers HP 36A and 64A For details see wwwqualitylogiccomEMEAmonotonertestpdf 2 From a 2012 EMEA Lyra Research study commissioned by HP Results based on a total of 1050 HP Color LaserJet users who have used both original HP and non-HP toner cartridges of whom 552 experienced problems with non-HP cartridges
copy 2014 Hewlett-Packard Development Company LP
42
Private Equity ANALyTICS
wwwthecfomecom
The rise of PE-backed acquisitions is forcing CFOs to develop an entirely new set of skills
THE PRIvATE EQUITy CFO
The CFOrsquos utility in the world of private equity is without question on the rise The once-held belief of the CFO existing solely as the ldquoaccounting guyrdquo has been abandoned Over the last 20 years the role of CFO has become more demanding - requiring not just finance and accounting acumen but also a financial literacy in corporate planning risk management MampA assetliability management and regulation This evolution has been driven by a number of
key factors Yet the private equity industry which is now reshaping the corporate landscape through active ownership is by far the most significant factor driving change within the role of the CFO
PE-backed buyers today represent a larger percentage of overall buyers in the corporate acquisition marketplace than ever before Data provider Prequin estimates that as of June 2014 the capital raised by PE funds that
has not yet been deployed amounts to $114 trillion globally The result of this ldquodry powderrdquo is that a vast quantity of corporate acquisitions in the coming years will be undertaken by the private equity industry As such CFOs will be more accountable to demanding ldquosmart moneyrdquo shareholders than at any point in recent history Budgeting accounting and financial reporting will no longer exist as sole priorities but as a core competency among a
ldquoBy effec-tively using real-time data CFOs can create a dynamic process that proac-tively drives performance account-ability and value crea-tionrdquo
By Aaron Heidari
43
Private Equity ANALyTICS
wwwthecfomecom
robust set of complimentary and required skills Most of all the bar for CFOs is rising as PE investors will only accept above-average performance from their management teams
CFOs were once more reactive in function setting budgets based on other executivesrsquo plans and managing the flow of reporting to shareholders on a quarterly and yearly basis Today CFOs are required to become proactive managers of their respective businesses alongside their C-suite compatriots using a granular data-driven approach to aggregate analyse implement and report on every aspect of a companyrsquos operations
An important tool to drive this value creation process are KPIs Yet KPI structures including both aggregation and output are generally not up to the standards required of private equity investors prior to an investment being made
ldquoThe benefits of using KPIs and monthly reporting packages are significant By effectively using real-time data that is actionable and by partnering with functional area leaders within the organisation company CFOs can create a dynamic process that proactively drives performance accountability and value creationrdquo said Amanda Robinson Vice President of Accordion International in Dubai a consulting firm which is comprised of former private equity and investment banking professionals who
MENA region Cumulative Funds Under Management Since 2008
Source Zawya private Equity Monitor
19 636 20 36321 586
22 64323 506 24 250
-
5000
10000
15000
20000
25000
2008 2009 2010 2011 2012 2013
Cu
mu
lati
ve f
un
ds
($ m
)
$15mAverage MENA PE investment size in lsquo13
50Percentage of investment in IT and energy sectors
STAT FACTS
44 wwwthecfomecom
work with companies to deliver cost-effective project execution services
Active shareholders whose money it is being spent will typically require a data-driven justification before approving any budgets capital expenditures or new acquisitions Furthermore in many private equity backed companies the use of debt and the matching of shorter-term bank financing with longer-term investments will only be considered after a robust analysis is conducted to understand the companyrsquos ability to service that debt in the future This evaluation is not simply to identify revenues expenses and profits Itrsquos about drilling down into every transaction and rooting out data processing and reporting At least that is the expectation
The most valuable CFOs are those who have the ability not just to scrutinise and understand the financials but all also possess a wider grasp of the underlying data which truly comprise the business As an investor who has just acquired a stake in a new business I want a CFO who can manage the transition and stay ahead of my expectations Most of all a CFO should impress upon the companyrsquos shareholders a new way of doing business The first 100 days of an acquisition are said to be the most important During this period the CFOrsquos worth will be established when the new financial plan is due and the platform for the next five years of growth is presented
A CFO should man-age the tran-sition stay ahead of expectations and impress upon the companyrsquos shareholders a new way of doing business
Investment Volume By Sector Since 2006
Investment Volume By Sector in 2013
Source Zawya private Equity Monitor
1
3
30
17
3
28
3
4
6
4
6
5
17
9
9
6
9
5
8
6
6
2
3
10
Education
Education
Information Technology
Information Technology
Other
Other
Telecoms
Telecoms
Media
Media
Transport
Transport
Oil amp Gas
Oil amp Gas
Healthcare
Healthcare
Consumer goods
Consumer goods
Food amp Beverages
Food amp Beverages
Leisure
Leisure
Manufacturing
Manufacturing
ANALyTICS
Private Equity
2000857 NBAD ratibi mag ad 200x268 Finalindd 1 92514 1017 AM
46 wwwthecfomecom
THE FUTURE OFACCOUNTING EDUCATIONAddRESSINg THECOMpETENCY CRISIS
Have you ever stopped to think about how the accounting profession has changed since you graduated from college Recent graduates can answer this question by reflecting on the last two or three years whereas for other more seasoned professionals answering this question requires a bit more thought and memory searching Indeed we can all think of ways that the field of accounting is remarkably different today from the one we likely envisioned during our college daysmdashregardless of which decade we each donned our cap and gown This gradual transformation of the accounting profession leads to two important questions related to competencies bull Which competencies are important for success inaccounting todaybull Were these competencies consciously developed as partof your accounting degree programme
We suspect that more than a few of you would answer ldquonordquo to the second question Put another way our profession may be facingmdashmore so than at any time in the pastmdasha ldquocompetency crisisrdquo that is a gap between the competencies needed for professional success and those taught in our college classrooms today We propose a three-pronged strategy or ldquogame planrdquo for overcoming this competency crisis and in turn better preparing accounting graduates for the challenging world they will face First all of us accountants need to understand the changes that have already taken place in our profession and perhaps more importantly anticipate the changes that are on the horizon Second we need to educate ourselves and future generations of accountants so that as a collective group we can deliver the expanding set of competencies demanded in todayrsquos dynamic organisational
contexts Third as professional organisations and as individuals we need to think beyond ourselves by asking How can I (or we) help the accounting profession address the competency crisis
A Shift Toward Integrated ThinkingMany articles and white papers have been written that describe in detail the changes that have occurred in our profession over the last few decades but for our purposes wersquod like to distill these changes down to one crucial idea How does the accounting function add value to an organisation Accountants have evolved from support-oriented personnel who hand off information to others who actually make decisions into business partners who ldquohave a seat at the tablerdquo with managers
By peter C Brewer James E Sorensen CpA CgMA and david E Stout
47wwwthecfomecom
1048576bull What regulatory risks mayaccompany the proposal
1048576bull What social and environmentalfactors will we face if for example the proposal requires investing in overseas operations
1048576bull What types of employeeresistance may arise if we implement the proposal and how will we overcome the root causes of any such resistance
1048576bull Can and how should we valuefuture options associated with the proposal such as expanding or contracting the investment over time as new information becomes available
1048576bull Should we use debt or equity tofund the proposal
In short accountants have evolved to become integrated thinkers who enable EPM by partnering with managers across the organisation to add value Yet as EPM has gradually become the centrepiece of our professionrsquos value proposition accounting education hasnrsquot done enough to embrace it To overcome this gap wersquod like to further suggest that the concepts of competency integration and EPM need to come ldquofront and centrerdquo as we move forward in educating the next generation of successful accounting practitioners
Accounting Education No Longer on the SidelinesRecently a task force consisting of members of IMAreg (Institute of Management Accountants) and members of the Management Accounting Section (MAS) of the American Accounting Association (AAA) addressed the competency issue How should accounting education change fundamentally to help close the competencies gap The efforts of the task force led to
cash flows and how to apply discounted cash flow (DCF) decision models such as net present value (NPV) is of foundationalmdashsome might say critical mdash importance But integrated thinkers draw on an understanding of organisational strategy coupled with a broader set of competencies (beyond what might be considered technical or foundational knowledge) when making these types of decisions For example they consider how behavioural issues may influence the capital investment decision-making process Perhaps the financial estimates contained in the NPV analysis are too optimistic because the manager who prepared the numbers has a vested interest in seeing the project approved Decision makers also need to consider issues such as leasing vs buying a capital asset and the corresponding impacts on the financial statements and ratios that are tracked by investors and lenders What nonfinancial factors are associated with the proposed investment Add in the tax consequences of capital investment decisions coupled with the need to maintain internal control over any new business processes tied to these decisions and the need to think in an integrated fashion across a variety of accounting competencies becomes apparent
Furthermore becoming a true business partner with managers across the organisation requires more than simply integrating various accounting competencies It also means thinking like a business manager or a chief executive officer (CEO) Returning to the capital budgeting example an integrated thinker will ask questions such as
across the organisation Together they formulate and plan strategies then participate in collaborative decision-making processes that execute those strategies in a manner that adds stakeholder value Said another way accountants have evolved to become enterprise performance managers This shift in our orientation from a support function to an enterprise performance management (EPM) role has enormous implications for defining the determinants of success within our profession the most important of which involves becoming collaborators and ldquointegrated thinkersrdquo Take for example a common but important business decision process capital investment analysis Certainly technical knowledge regarding how to estimate relevant after-tax
48 wwwthecfomecom
expanding capital budgeting discussions to include financial statement impacts tax consequences and internal control issues integrates topical coverage across the External Reporting and Analysis Taxation Compliance and Planning and Assurance and Internal Control competencies shown in Figure 1
Third accounting curricula can incorporate a broader set of management competencies For example evaluating capital investment proposals from the perspectives of change management (Leadership) social and environmental issues (Ethics and Social Responsibility) regulatory concerns (Governance Risk and Compliance) and capital structure (Additional Core Business Competencies) brings a CEOrsquos perspective to the decision-making process
Fourth accounting curricula should include foundational competencies such as proficiency with spreadsheets and written and oral communication In the context of capital budgeting this may include asking students to use Microsoft Excel to perform a sensitivity analysis and then to present their findings to the entire class
Working to Fix the ProblemAt this point although you may agree with us that therersquos a competency crisis within the accounting profession you may be wondering What does this have to do with me What can my organisation do to help address this so-called competency crisis The answer a lot Practice partners and academic partners can help the accounting profession overcome the competency crisis That said letrsquos take a closer look at the role of practice partners first
improvement) and accounting competencies (external reporting and analysis planning analysis and control taxation compliance and planning information systems assurance and internal control and professional values ethics and attitudes) Of critical importance to the framework is the assumption that the set of competencies contained in Figure 1 would be developed and integrated over time through a blend of formal education (including continuing education) training and job experience
What levels of integrationmdashon the road to developing integrated thinkers in accountingmdashare possible First accounting educators can integrate within a single accounting competency So referring back to our capital budgeting discussion teaching computational models such as NPV analysis coupled with a review of various behavioural issues associated with capital investment decisions would be an example of integrating within the Planning Analysis and Control competency listed in Figure 1
Second professors can integrate across accounting competencies For example
a recently published article that contains a proposed framework for accounting education reproduced here as Figure 1 The framework is general in the sense that itrsquos meant to apply to all accounting students not subgroups based on career specialisation such as tax assurance services corporate finance and the like Itrsquos based on the idea that accounting educators can better prepare students to deliver our professionrsquos EPM value proposition through integrated competency-oriented curricula (For more see ldquoFocusing Accounting Curricula on Studentsrsquo Long-Run Careers Recommendations for an Integrated Competency-Based Framework for Accounting Educationrdquo in the May 2014 edition of Issues in Accounting Education)
A glance at Figure 1 reveals three levels of competencies foundational competencies (communication ability to leverage technology and analytical thinking and problem solving among others) broad management competencies (including leadership ethics and social responsibility and process management and
Proposed Competencies-based Framework for Accounting Education
FOUNDATIONALCOMPETENCIES
ACCOUNTING COMPETENCIES
BROAD MANAGEMENT COMPETENCIES
leadership
ExternalReportingamp Analysis
PlanningAnalysis
amp Control
TaxationComplianceamp Planning
InformationSystems
Assuranceamp InternalControl
ProfessionalValues Ethics
amp Attitudes
Communication
Quantitative
Interpersonal
Technological
Analytical Thinking ampProblem Solving
Ethics amp SocialResponsibility
ProcessManagement ampImprovement
GovernanceRisk amp
Compliance
AdditionalCore BusinessCompetencies
Although you may agree with us that therersquos a competency crisis within the account-ing profes-sion you may bewondering What does this haveto do with me
A practice partner should be or become a CMAreg (Certified Management Accountant) maintain professional certification by completing required Continuing Professional Education (CPE) hours and regularly read the IMA publications Strategic Finance and Management Accounting Quarterly
In addition there are a number of excellent resources that deal with topics covered in this article and that IMA makes available to its members
Strategic Finance PowerPacks(wwwimanetorg SFPowerPacks) These are resources focused on contemporary topics similar to those discussed earlier Current offerings include Risk Management Strategic Planning IT Skills amp Software and Internal Controls Each PowerPack includes a combination of resources such as research studies articles and links to webinars
Statements on Management Accounting (SMAs)(wwwimanetorgresources and_publicationsresearch_ studies_resourcesstatements on_management_accounting aspx) SMAs represent monographs classified into one of the following six categories Leadership Strategies and Ethics Technology Enablement Strategic Cost Management Business Performance Management Finance Governance Risk and Compliance and the Practice of Management Accounting Multiple items are available within each category For example the Practice of Management Accounting category includes (among other items)
49wwwthecfomecom
the Definition of Management Accounting and Implementing Shared Service Centres
Research Studies (wwwimanetorgresources_and_publicationsResearch_Studies_and_ResourcesAll_reportsaspx) The ldquoThoughtLeadershiprdquo section of IMArsquos website includes research covering a broad range of issues classified into seven categories For example under the ldquoGlobal Business Environmentrdquo category the following two research reports are available ldquoKey Differences Between IFRS and US GAAP Impact on Financial Reportingrdquo and ldquoCosting Methodologies and Cost Management Practices in the Peoplersquos Republic of Chinardquo
IMA Leadership Academy (www imanetorgprograms_events leadership_academyaspx) As described on the IMA website this programme is designed to assess a memberrsquos leadership status enhance that individualrsquos skills (principally through monthly webinars) and recognise leadership achievements These benefits are free to members
How You Can Make a Bigger Impact In addition to attending local regional and national IMA meetings consider inviting a small group of students to each chapter meeting This could be a wonderful (and relatively low-cost) option for mentoring aspiring accountants and finance professionals providing networking opportunities and introducing students to cutting-edge issues regarding the practice of management accounting Joining a university accounting
advisory group may be another way to influence the development of EPM in that institutionrsquos curriculum design
Other methods to enhance EPM in your organisation include (1) forming user groups within your company your local IMA chapter or your industry to review and share EPM experiences (2) encouraging advancement in the firm to be linked to EPM proficiency (3) focusing your companyrsquos recruiting efforts on candidates who display a background in andor understanding of EPM and (4) organising cross training within your company to enhance a mutual understanding of each otherrsquos respective roles
Finally visit the Competency CrisisTM website (http competencycrisisorg) set up by IMA to unite the accounting and finance constituencies professionals students employers academics and professorsmdashand explore competency issues through the lens of each stakeholder group The site is designed to ldquoencourage a discourse spur action and create a community dedicated to resolving the serious crisis of competency present in the professionrdquo Special sections of the website are devoted to educators students and employers professionals
Our Partners in Education Much like a practice partner an academic partner should be or become a CMA maintain professional accreditation by completing CPE hours and regularly read IMArsquos publications
Academic members of IMA can pursue and actively promote the CMA programme at their respective institutions
50 wwwthecfomecom
IMArsquos website contains helpful resources including an exam content overview content specification outlines for each of the two parts of the CMA exam and learning outcome statements The current exam covers some of the professional competencies represented in Figure 1 A summary of changes to exam content which will be effective in January 2015 is provided on the IMA website in News amp Media Relations which is located under ldquoAbout IMArdquo (See the press release dated March 24 2014) Other helpful resources include ldquoICMA Announces CMA Exam Content Changesrdquo in the April 2014 issue of Strategic Finance as well as ldquoManagement Accounting Career Readiness Shaping YOUR Curriculumrdquo
These forthcoming changes are based on the most recent IMA study of the knowledge and skills needed by management accountants from the view of CFOs controllers and other accountingfinance professionals from around the world
Also consider taking a group of your students to the IMA Student Leadership Conference held each November The Conference provides excellent networking opportunities for you your students and practicing professionals Students can learn firsthand from Conference presenters the challenges and opportunities facing finance and accounting professionals today
Moreover if your institution doesnrsquot currently have an IMA Student Chapter consider forming one One of the authors of this article David Stout reinstituted the student chapter at his school (Youngstown State University) after travelling with a group of his students to the IMA
Student Leadership Conference in Cleveland Ohio Through an IMA Student Chapter on campus students are able to work closely with a sponsoring local IMA chapter and bring to campus speakers who are experts in a wide range of topics including those discussed earlier in this article Each year student chapters compete for an Award of Excellence (AOE) and recognition as an Outstanding Student Chapter In addition IMA student members are able to engage in networking activities leadership training mentoring and community service programmesmdashall through their local chapter
You also might consider volunteering to serve as a Campus Advocate In this role yoursquoll represent IMA in all major matters of interest to your students (scholarship opportunities starting a student chapter mentoring and the like) and to your institution (for example leveraging IMA resources to advance the relevancy of the accounting curriculum use of educational case studies published in the IMA Educational Case Journal and access to IMArsquos ethics curriculum)
And if you havenrsquot yet done this ask IMA to endorse your accounting programme (information is available at www imanetorgeducator_resources indexaspx) This programme is designed to identify business curricula that meet the quality educational standards required to prepare students to earn the CMA designation Endorsement is based on an analysis of the curriculum and topics covered on the two-part CMA exam Currently 12 programmes have been endorsed
Finally if your school has an IMA Student Chapter consider participating in the annual IMA Student Case Competition where students are asked to propose a solution to a real world problem (Cases are solicited each year by Raef Lawson IMA VP of Research and Policy and IMA Professor in-Residence) Finalists make their presentations at IMArsquos Annual Conference amp Exposition before a set of judges consisting of accounting faculty members and practitioners Each year a new case is published in the August issue of Strategic Finance for students to use for that yearrsquos competition
Working TogetherIn this article we have summarised the changes that have affected the accounting profession and provided a competencies-based framework for guiding accounting educators in responding productively to those changes As a management accountant you know that implementing change in any organisation let alone within an entire profession never comes easily To be successful in overcoming our professionrsquos competency crisis IMArsquos practice and academic partners will need to assume leadership roles in defining enterprise performance management as the cornerstone of the accounting professionrsquos value proposition
This article was orginally published in the August 2014 issue of Strategic Finance It appears here with the permission of The Association of Accountants and financial professionals in Business
We need to educate ourselvesand future generations of account-ants so that as a collec-tive group we can deliver theexpanding set of com-petenciesdemanded in todayrsquos dynamicorgani-sational contexts
THE POWERFUL AND THRIFTY OFFICE ALL-ROUNDERS
The new ECOSYS M3560idn series will astound you With their print speeds of up to 60 pages per minute they are among the most productive A4 bw multifunctionals on the market We nevertheless managed to keep their ecological footprint and total cost of ownership impressively low by using our well-known ECOSYS technology and equipping the devices with our renowned long-life components The result Not only less waste and lower maintenance costs but also less hassle for you and all your colleagues You will also greatly appreciate the many customisation possibilities of the devices equipped with KYOCERArsquos open solution platform HyPAStrade as it allows you to tailor the device to your needs So yes we are proud of our new range of MFPs and can hardly wait to share their numerous benefits with you
For more information please contactKYOCERA Document Solutions Middle East | PB Box 500817 DubaiUAE | Tel +9714 4330 412 | Fax +9714 4231 944KYOCERA Document Solutions Europe BV - wwwkyoceradocumentsolutionseuKYOCERA Document Solutions Inc - wwwkyoceradocumentsolutionscom
52
ACCAINTERVIEW
wwwthecfomecom
GLOBAL By ASSOCIATION
across the region from our key employers and learning provider partners to our active and growing student and member base I want to understand their challenges and priorities and how ACCA can work with them to help support the economic success of the region
What can a CFO gain from working with ACCAThe ACCA qualification is about complete finance professionals For CFOs it brings the technical knowledge vital to business success complemented with the strategic management skills and ethical competence crucial to an organisationrsquos success As an organization ACCA in the UAE brings CFOs access to that local and global network of peers and expertise along with our leading research and insights that help them to keep up to date on the issues that matter most
Are there any initiatives in place to leverage the recently announced partnership with AAA
How are the ACCArsquos many years of activity being applied to the Middle EastACCA has now had a presence in the UAE for well over a decade During that time we have established strong relationships across the Middle East epitomised by the recent signing of our Strategic Partnership with AAA As a national body in choosing to partner with ACCA they recognised the local and global perspective we bring We are continuing to work with students members and employers across the Middle East to build their networks knowledge and business success through events research and insights and access to a growing number of online resources
Which initial priorities are among your key aims upon joining the organisationrsquos efforts in the UAEIn the first few months I hope to build on the success of the team in the UAE My priority will be to meet as many of our key stakeholders
The Association for Chartered Certified Accountants (ACCA) provides its services across a number of international borders The recent announcement of Lindsay Degouve de Nuncques as the new head of the Associationrsquos UAE chapter further exemplifies the ACCArsquos reach based on her previous work in the UK Nuncques shares here what she brings to the Middle East and just how globalisation has driven her ascent
53
ACCAINTERVIEW
wwwthecfomecom
The strategic partnership with AAA is the first of its kind in the region Students who complete the UAECA qualification will be entitled to both the AAA and ACCA designations and ACCA members in the UAE will also be eligible to apply for AAA membership This is a very exciting development in the market and together AAA and ACCA will be working to deliver maximum value to all our stakeholders from this partnership As we launch the UAECA qualification this activity will start in earnest
Which key industries will you be spotlighting in the Middle East in the months aheadOur experience of working across all sectors and levels of organisations globally gives ACCA a unique insight into all types of industries We will continue to be working with employers across the spectrum in the months ahead to help them gain the insight and make the connections that drive businesses to succeed at whatever they do
ldquoThe ACCA qualification is about complete finance professionals For CFOs it brings the technical knowledge vital to business success complemented with the strategic management skillsrdquo
54
Islamic FinanceMARKET OUTLOOK
wwwthecfomecom
In its 10th instalment the Forum is hosted in Dubai as a direct result of the UAErsquos increasing importance in the world of global Islamic finance
THE WORLD ISLAmIC ECONOmIC FORUm LANDS IN DUBAI
In Dubairsquos continued quest for leading the world across a range of spectrums the Emirate accelerated its desire to become the worldrsquos leading hub for Islamic finance by hosting the 10th installment of the World Islamic Economic Forum (WIEF) Delegates from dozens of countries attended to take part in a three-day event held at Madinat Jumeirah which rests alongside Dubairsquos gleaming coastline Held under the patronage of His Highness Sheikh Mohammed Bin Rashid Al Maktoum the
Vice President and Prime Minister of the UAE and Ruler of Dubai key speakers included The Honorary Dr Zeti Akhtar Aziz Governor of the Central Bank of Malaysia HE Kairat Kelimbetov Governor of the National Bank of Kazakhstan The Honorary Datorsquo Sri Mohd Najib Tun Abdul Razal Prime Minister of Malaysia and HE Xavier Bettel Prime Minister of the Grand Duchy of Luxembourg
Launched in 2006 in Malaysia WIEF has grown in tandem with the increased
Delegates from dozens of countries attended WIEF to take part in the three-day event
sophistication and reach of Islamic finance After a successful event in London in 2013 amidst increased interest in Islamic finance across Europe WIEF relocated to Dubai where the local business structure is keen to host halal finance
Said Hamad Buamim President and CEO Dubai Chamber of Commerce and Industry co-organisers of the event ldquo[The forum] is the start of a new chapter of cooperation between Dubai and the world as part of
55
Islamic FinanceMARKET OUTLOOK
wwwthecfomecom
Dubai Capital of Islamic Economy visionhellipestablishing a unified regulatory authority to provide the framework for standards across halal industries will significantly accelerate growth Likewise we need to see increased cooperation and partnership between the public and private sectors This is already happening with great success here in Dubairdquo
The order of global cooperation needed to facilitate growth across the Islamic finance world was more than apparent at WIEF based on how many differing nations were represented at the event The exhibitorrsquos hall was populated with a number of key Malaysian stands representative of the Southeast Asianrsquos ranking as the global leader in Islamic finance Also present were companies from Saudi Arabia also a key locality in the worldrsquos halal industries An interesting yet prescient presence was of attendees from South Korea a nation which is eager to participate in Islamic finance and will be hosting the WIEF Pyeongchang Roundtable in December 2014
ldquoGangwon is a province located in Korea which is very interested in new business opportunities Wersquove realised the strength of the Islamic economy and have come here with many different companies The first type is based in real estate investment We also have companies which want to export their products to the Islamic economy based on their halal qualities And Gangwon will also be hosting the Winter
ldquoKorea is very interested in the strength of the Islamic economy and wants to export its products based on their halal qualitiesrdquo
56 wwwthecfomecom
$247trillionProjected value of halal products industry in lsquo18
125Muslim percentage of global tourism expenditure
STAT FACTSOlympics in 2018 and are presently seeking investments for this as wellrdquo said Seong-hun Kim a member of Gangwon Province Governmentrsquos Export Support Team
Dubai proved to be an excellent place for the event considering how well the UAE is able to so regularly corral international cooperation A key sign of this was witnessed recently when Luxembourg now considered the third most important base for Islamic finance globally opened a finance office in Dubai International Finance Centre The European nation also opened a euro200 sukuk earlier this year which was quickly oversubscribed
The prime minister of Luxembourg offered the WIEF audience a riveting speech which detailed just how international the Forum has become whilst encouraging more of the world to support the growing influence of Islamic finance
Said Bettel ldquoWe need to innovate more economic partnerships for growth We sometimes need to reengineer relationships but also have to make sure these relationships remain sustainable Growth in one country also brings growth to others as long as this is guided by free market initiatives Free trade and free flow of capital combined with innovation leads to prosperity We have all gathered here in Dubai to explore the future of Islamic finance and Luxembourg is also a pioneer of Islamic finance in Europe The Islamic financial sector has a major role to play in continued global growthrdquo
The Islamic Corporation for the Development of the Private Sector (ICD) is based in the Kingdom of Saudi Arabia where it manages an international fund worth $2 billion half of which is available for subscription With shareholders in more than 50 countries and a sovereign sukuk fund recently launched in West Africa the ICDrsquos CEO Khaled M Al Aboodi attended WIEF this year excited to participate in the global event
How does the ICD approach its attendance at the World Islamic Economic ForumI think the Forum is one of the best places for discussing the financial issues of the OEC member countries It has been around for ten years and has grown to become a very important platform for discussion Wersquore here to attend and listen but also to network Itrsquos a great networking platform and a place to share views whilst letting everyone know what we have to offer
How has Islamic finance changed over the yearsOf course itrsquos growing in a large scale Some of it actually needs more support particularly with respect to regulatory frameworks Wersquore trying to partner with many international organisations like the IMF to try to provide support to countries to adapt regulation for Islamic finance Sukuk issuance is one of the biggest issues that needs to be addressed because there is a huge amount of liquidity in this arena Due to issues related to regulation sukuk issuance can be costly But with the regulation we are confident it will be on a level playing field with other forms of finance Compliance is a major area where more work can be done The Forum started with a roundtable on sukuk which shows how helpful WIEF has been over the years
What type of work does ICD do internationallyICD helped the government of Senegal to issue the first sovereign sukuk This was successfully issued last summer Progressing in this manner is something wersquod like to see continue across West Africa in order to utilise its resources with aiding development in the region in mind
QampA WITH KHALED M AL ABOODI CEO OF ICD
Islamic FinanceMARKET OUTLOOK
OFFICIAL SPONSORS
ENDORSED BY OFFICIAL HOST OFFICIAL
COMMUNICATIONS PARTNER
MEYDAN HOTEL DUBAI UAE19 - 20 NOVEMBER 2014
WOMENOMICSthe next emerging market
TAKE PART in making change happen UNITE with business and through leaders from across the globe
PARTICIPATE to the expansion of a modern and inclusive economy
58
Gautam PradhanINTERVIEW
wwwthecfomecom
SUCCESS BEyOND BOUNDARIES
in other management roles such as strategic decision making mentoring and leading efficiency and productivity across a range of other departments and functions as well as a being a catalyst in ensuring that the boardrsquos vision for the organisation is achieved
A significant percentage of NMDCrsquos shares are owned publicly Does the CFO play a role in balancing the interests of the shareholdersAs a CFO balancing the shareholdersrsquo interests is definitely part of my responsibility In order to achieve this goal there needs to be a careful evaluation of each decision while keeping the short-term and long-term goals of the company in mind At NMDC we actively implement a system where we utilise a balance scorecard as a method of ensuring that all our primary objectives are met yet at the same time continuously enhance our relationships with our shareholders
NMDC has completed various projects across the Emirates Are there plans to move abroadAs NMDC moves towards becoming an international player our strategic expansion plans are focused in areas within the GCC region and India In line with this strategy we opened
How has a company with such a unique set of deliverables grown so consistently over the yearsOur organisation strongly believes that the core to our strength is the people process and equipment A strategic decision led by our Board of Directors and the senior management has been implemented that required us to consistently invest in these three aspects to help expand our business beyond the territorial boundaries of the UAE and at the same time enhance what we can offer which is relevant to these segments We attribute our success to the efforts which every employee contributes We also strongly believe in the ldquoWe can make it happenrdquo principle The management raises the index of performance while setting SMART objectives within the organisation and encouraging the employees to achieve them
How has your position as the CFO changed over NMDCrsquos 35 years of operationAs the market evolves and business dynamics change my role as the CFO has become complex and more challenging A few years back I was mainly focused on bookkeeping accounting and other financial responsibilities such as arranging bank facilities But moving forward I became more involved
The UAE is progressively becoming a hub for world-class infrastructure The country has duly impressed the rest of the globe with noteworthy land developments showcased across the emirates Among the remarkable landscapes found in Abu Dhabi are the Corniche Beach Yas Island and Sir Baniyas Island Behind these successful projects is NMDC the dredging division of Abu Dhabi National Oil Company (ADNOC)
In an interview with CFO Magazine Gautam Pradhan Chief Financial Officer NMDC shares an exclusive look into the companyrsquos international blueprint for growth and his dynamic role as a strategic leader of one of the best in dredging and marine construction in the Middle East
59
Gautam PradhanINTERVIEW
wwwthecfomecom
branches in Qatar Bahrain Oman and India This has paid rich dividends recently as projects of strategic importance are bagged in Qatar and Bahrain Furthermore NMDC (UAE) has recently played a key role as a leader of an international consortium with Royal Boskalis Westminister (Netherlands) and Jan De Nul Group (Belgium) for the awarding of the Suez Canal Dredging project in Egypt Moving forward we have devised a strategic approach that will enable us to play a key role in the development of Indiarsquos marine infrastructure
What are the global strategies that are part of the CFOrsquos responsibilitiesAs CFO understanding the macro economic scenario risk analysis and mitigating those risks are all a part of my responsibilities I also have to have a proper comprehension
ldquoA few years back I was mainly focused on financial responsibilities moving forward I became more involved in strategic decision making mentoring and leading productivityrdquo
Gautam PradhanINTERVIEW
60 wwwthecfomecom
of the challenges faced by the company in terms of dealing with foreign contracts direct and indirect taxes and hedging and managing the integration process These are essential to enhance shareholders wealth and mitigate undue risk
How significant is accountancy for NMDC in its operations Why exactlyAccountancy is the lifeline of any company it does not only record the finances it also reflects the health of the organisation The MIS reports analysis trends and statistical information go a long way toward effectively providing
the diagnostic approach essential for the company
How have NMDCrsquos environmental activities helped the companyrsquos bottom lineNMDCrsquos work is well-synchronised with our environmental activities and specifically with nature Our activities are closely linked to sand and water and we view such activities with strategic importance Projects such as increasing water supply to mangroves and beach nourishment help us support the environmental activities while adding to our bottom line
ldquoAccountancy is the lifeline of any company it does not only record the finances it also reflects the health of the organisationrdquo
A burgeoning slice of Abu Dhabi coastline
The largest business awards
in the GCC30th November Dubai
nominate now at wwwstarsofbusinessawardscom
Stars of Business has become an iconic awards brand like no other in the region It recognizes the very best SMEs across 26 business categories Itrsquos universally respected as scientifically assessed and unimpeachably judged
327000 SMEs across the UAE$234 billion estimated total revenue of the SME sector4974 Awards entries in 20131856 Individual company applicants
Presenting Partner Strategic SME Partner Gold Sponsor Gold Sponsor VIP Hospitality Partner Supporting Partner
Trade Facilitator PartnerTrade Credit PartnerLogistics Partner
Institutional Partner Institutional Partner Event Partner
OrganiserPublisherMedia Partner Media PartnerPort Authority Partner
62
David Allen INTERVIEW
wwwthecfomecom
What went into completing your bestseller ndash Getting Things Done (GTD)After twenty years of researching developing and implementing a methodology for achieving stress-free productivity based upon
thousands of hours spent desk-side with
some of the best brightest and busiest people in the world I decided to write the manual for it Thatrsquos what Getting Things Done is
What are the five phases of mastering workflowIn order to get
any situation under control so
you can focus you will utilise these five
steps Whether yoursquore managing your kitchen
or your company you will need to collect and capture what has your attention clarify what if anything to do about it organise it according to what it means to you review and reflect upon it in relation to
Todayrsquos evolving CFO is often caught between the world of business set-up generating revenue managing employees and building strong company infrastructure When can things actually get done What can one do to boost productivity and master workflow World-renowned business coach David Allen has the answers
PRODUCTIvITy PRINCIPLES WITH
DAvID ALLEN
63
David Allen INTERVIEW
wwwthecfomecom
those are greatly subvertedHow does one maintain a fair balance between the time spent planning and actually getting things doneYou simply need to spend just the amount of time you need to to trust that what you are getting done is the right thing to be getting done in the moment It takes as long as it takes to get to that point Why would you do anything less
How can one apply your core productivity and workflow principles to todayrsquos technologically driven environmentThe principles and their techniques are system-independent Whether you have meaningful input from the Internet your smartphone or a conversation in the hall you must engage with it equally Technology has simply increased the flow of input and ease of distraction in your world
There is a lot of talk about how connected wersquove become and how connectivity is driving tremendous business growth Does connectivity actually come with its fair share of downsides
Connectivity is obviously a two-edged sword We can have intimate productive and creative interaction instantly with someone on the other side of the world and we can just as easily be distracted and seduced into those engagements when they may not be the best use of our attention and resources Donrsquot shoot the medium Itrsquos all simply bringing attention to your clarity of direction and priorities or lack thereof
Could you share a few quick tips with our readers to instantly boost productivityWrite everything down that has your attention Decide the very next actions required to get closure on all of them Any next actions that require less than two minutes do instantly Park reminders of everything else somewhere that yoursquoll see when you can do something about them
We are currently facing a massive information overload What are some basic principles you could suggest to mentally organise such large amounts of dataConstantly ask yourself Where am I going Whatrsquos important and rewarding to me Is this information
the whole and then engage your resources with intuitive trust
As a CFO how can you transfer efficient workflow management skills to your employees Itrsquos very difficult to legislate processes for individuals ndash you can really only hold them accountable for their results But if you are managing your own commitments and intersections with them with integrity and rigour it will automatically force your team to ldquostep up to the platerdquo in their own behaviours in order to meet your standards If you request their complete list of their company projects and they canrsquot produce it thatrsquos a sign theyrsquore not in control If they make a commitment to you that they havenrsquot kept thatrsquos data about their performance GTD is simply about good operational business practices
With so many planning and organising activities in your methodology is there a risk of losing spontaneity as a strategistThe reason for these best practices is to optimise freedom creativity and spontaneity Without them
ldquoBut if you are manag-ing your own com-mitments and intersec-tions with them with integrity and rigour it will automatical-ly force them to ldquostep up to the platerdquo in their own behaviours in order to meet your standardsrdquo
64 wwwthecfomecom
supporting that Park whatever you find potentially meaningful somewhere that is easy to access when needed
Being an entrepreneur is a non-stop job How do you ensure that you have an adequate work-life balance Pay attention to what has your attentionmdashwith regard to anything Your health relationships career finances etc Notice when something might be ldquooffrdquo and make good decisions about what you need to do to get it back ldquoonrdquo again
Does your work teach people to be efficient or effective In essence they are the same thing Effective choices are generated by efficiency on a higher level If you want to implement strategy most effectively it demands utilising your resources optimally which is efficiency
Does motivation actually improve quality of work or purely quantityDepends on the focus of the motivation You can be motivated to work harder and you can be motivated to work smarter
What is your favourite productivity mantra that
you implement in your day-to-day lifeUsing my own in-basket and note-taking devices to capture potentially meaningful and valuable ideas and soon afterwards clearing all of them out by deciding what to do about them if anything
Your books seminars and other work inspires many individuals and businesses Who is your personal inspiration or role model I have many about many different aspects of my life The only person though that I ultimately trust as my best guide is my higher self which I try to access as frequently and clearly as I can
Finally what advice would you give to current business owners and aspiring entrepreneurs looking to gain complete control of their life and businessCapture what has your attention clarify what you need to do about it to get it off your mind organise the inventory of all your commitments at all levels review and reflect on all of that regularly relax and trust your inner wisdom to engage with the most appropriate thing in the moment
ldquoIf you want to implement strategy most effectively it demands utilising your resources optimallyrdquo
David Allen INTERVIEW
APPSTECH TALK
wwwthecfomecom 65
mAxImISE BUSINESS lsquoON-THE-GOrsquo WITH THESE HANDy APPS
ipAd SpECIAL
SAMSUNG UNvEILS GALAxY NOTE EDGE
Network
AP
Display
OS
Camera
Video
Audio
Additional Features
GoogleMobile Services
Connectivity
Sensor
Memory
Dimension
Battery
The availability of service may differ by country All functionality features specifications and other product information provided in this document including but not limited to the benefits design pricing components performance availability and capabilities of the product are subject to change without notice or obligation
Samsung Galaxy Note Edge Product Specifications
25G (GSM GPRS EDGE) 850 900 1800 1900 MHz3G (HSPA + 42Mbps) 850 900 1900 2100 MHz4G (LTE Cat 4 15050Mbps) or 4G(LTE Cat 6 30050Mbps)May differ by country and carrier
27 GHz Quad-Core Processor
56 inch (1419mm) Quad HD+ Super AMOLED (2560 x 1440 + 160)
Android 44 (KitKat)
Rear Facing 16 Mega pixel Auto Focus camera with Smart OISFront Facing 37 Mega pixel camera with f19Rear Facing Camera HDR (Rich tone) Selective Focus Rear-cam Selfie Beauty face Virtual Tour Shot ShotampMore Dual CameraFront Facing Camera Selfie Wide Selfie
Codec H264 MPEG-4 H263 VC-1 WMV7 WMV8 Sorenson Spark MP43 VP8 Recording amp Playback up to UHD
Codec MP3 AACAAC+eAAC+ WMA AMR-NBWB Vorbis FLAC()() Ultra High Quality Audio (~192KHz 24 bit) support
Multi WindowUltra Power Saving ModeVoice Recorder (Normal Mode Interview Mode Meeting Mode Voice Memo)Download BoosterS Health 35Dynamic Lock ScreenBriefingEdge screen UX Revolving Interaction Immersive apps(Camera Video S Note)Ticker board Express me Quick Tools Night Clock etc
Chrome Drive Photos Gmail Google Google+ Google Settings Hangouts Maps Play Books Play Games Play Newsstand Play Movie amp TV Play Music Play Store Voice Search YouTube
WiFi 80211 abgnac (HT80) MIMO PCIeGPS GLONASS BeidouNFC Bluetoothreg v 41 (BLE ANT+)IR LED (Remote Control) USB20 MHL 30
Gesture Accelerometer Geo-magnetic Gyroscope RGB IR-LEDProximity Barometer Hall Sensor Finger Scanner UV Heart Rate Monitoring SpO2 (Dependent on market)
32 64 GB Internal memory + microSD slot (up to 128GB)3GB RAM
1513 x 824 x 83mm 174g
Standard battery Li-ion 3000 mAh Fast Charging (Adaptive Fast Charging amp QC20)
wwwthecfomecom66
APPSTECH TALK
AIR DISPLAY
SQUARE REGISTER
Using this app you can connect your iPad to your computer and use it as an additional screen While working on an important presentation or sales proposal you can extend or mirror your computer screen on your iPad This app is compatible with both Mac and Windows computers Note that to use this feature you have to install Air Display on your iPad and a separate free app on your computer The computer and iPad also need to be on the same Wi-Fi network in order to work in-sync
For Mac users the app allows you to connect to up to four screens ndash all at the same time
Apart from the ability to convert your iPad into a wireless display whatrsquos also attractive about this app is that it allows you to control your computer wirelessly using your iPad
This fantastic application can serve as a mobile point of sale for your business It allows you to accept credit card payments ndash including Visa MasterCard Discover and American Express A transaction fee of 275 is charged for every time you swipe a card The sale amount is transferred to your account within two working days
Once you download the app you can sign up and register for a unique card reader solution called the lsquoSquare Readerrsquo (this is free) Square Reader encrypts all card details and ensures that the transaction is secure Once you receive your Square Reader you can connect it to your device and are all set
The application also offers added features such as transaction history connecting to a receipt printer creating employee logins and more
AED 3699
PRICE
Free
PRICE
wwwthecfomecom 67
APPSTECH TALK
DOCUSIGNHave you ever been in a situation where your employees need you to urgently sign a contract but arenrsquot able to physically reach you in time DocuSign solves this problem with its easy-to-use eSignature feature In three easy steps you can sign important documents and securely send them to your intended recipient
First you have to import the document to your device ndash this could be from Dropbox Google Drive or another select applications You then place your signature or any other important legal information you need to include such as initials Once you have finished working on the document send it back via e-mail
Whatrsquos particularly great about DocuSign is the great emphasis it puts on security ndash so that users donrsquot have to worry about getting into any legal trouble
Use DocuSign and never miss a deadline again
Free for basic version
PRICE
MPAYAn initiative by the Dubai eGovernment Department mPay is a simple application that allows you to make important payments Once yoursquove signed up and entered your payment details you are good to go You can pay your Dubai Electricity and Water Authority (DEWA) bills Etisalat utility bills Dubai Police fines Recharge SALIK and much more
A handy feature is its lsquoauto-rechargersquo option which you can use to set automatic payments
Free
PRICE
Opinion CIMAPERSONALITIES
wwwthecfomecom68
NEW HORIZONSBy geetu Ahuja Head of gCC at CIMA
The days of the traditional accountant working within a small community in a small town in a small market have long gone CFOs are now being referred to as Chief Frontier Officers as they travel from market to market overseeing their offices overseas This new expanded role has distinct advantages for both the company and the CFO who gain new skills and new insights from foreign branches a single hand at the helm of many markets provides business perspectives on a global scale and benchmarks across the board
On a personal level working abroad also has huge importance Robert Walters the specialist professional recruitment consultancy recently conducted a survey
of almost 2200 employees across a variety of professions exploring a number of topics which ranged from working practices and attitudes to careers The results highlighted some notable trends particularly for finance professionals
In career progression for example the survey showed that 50 of all accountants see working abroad as either lsquoessentialrsquo or lsquoextremely usefulrsquo to furthering their prospects more than banking professionals lawyers and IT workers ndash a strong indication of how accounting professionals are thinking about their future either within their existing company or with opportunities elsewhere
Accountants with globally recognised qualifications obviously have a greater chance of gaining some experience abroad and the lsquoGen Yrsquo professionals in particular seem ready to pack their bags In a CIMA study conducted in the UK last year over a third of those seeking employment in the
next two years will prioritise opportunities abroad over those in their home countries many of them enticed by the career incentives offered by the Middle East
How quickly can they land what seems to be their dream job What are the realities It may be that the move is simply from one branch to another and the only significant difference is a view from the window but for those expanding rather than changing their roles we have seen a very real need for a depth and breadth of knowledge never needed before
As geographical boundaries are pushed ever-wider a CFOrsquos responsibilities are pushed with them For many finance executives the understanding of their own patch of land is no longer enough they now have to be aware of foreign markets up to speed with foreign trends and au fait with foreign laws There is a need for a new commercial awareness in geography as well as philosophy
As geographical boundaries are pushed ever-wider a CFOrsquos responsibilities are pushed with them
John vargheseQampA
wwwthecfomecom 69
BUSINESSSET UP YOUR
IN THE UNITED ARAB EMIRATES
TO
WAREHOUSESOFFICES INDUSTRIAL LANDFLEXI
Quick and easy company set-up
Less than an hour drive from Dubai
Complete cost-effective packages including licences and facilities
100 foreign ownership
Zero income and corporate taxes
Eligibility for UAE Residence Visa
BUSINESS SET-UP SOLUTIONS STARTING FROM AED 15000 (USD 4000)
RAK FREE TRADE ZONE PROVIDES
RAK Free Trade Zone Authority - Government of Ras Al KhaimahUAE (Ras Al Khaimah) Tel +971 7 2041111 (Dubai) Tel +971 4 7041875 (Abu Dhabi) Tel +971 2 6994888
Germany (Cologne) - Turkey (Istanbul) - India (Mumbai)
Call +971 7 204 1111 Visit wwwrakftzcom Join rakftz
27
InterviewPERSONALITIES
wwwthecfomecom
Ain University had just opened ldquoAl Ain University was the pride of the Emirate at the time the students were like celebrities The first batch of graduates were all promised 50000 AED from HRH Sheikh Zayed I was one year late so technically I should not have graduated with the first batch but I was determined I worked an extra course load did summer school and soon caught up to the first class 50000 AED in 1981 was like 5000000 AED today so I was very motivatedrdquo says Al Sharid
Saeed not only caught up with the other students but he wound up graduating atop Al Ain Universityrsquos first class of graduates with a 38 GPA ldquoWe Saeed Al Sharid
28 wwwthecfomecom
to the organisationrdquo he says Saeed first joined Emirates Transport after seeing a small newspaper advertisement for an accountantrsquos position He applied but initially they did not want to hire a local because locals were too expensive After a few months however they called him back for an interview and offered him a job
Initially Saeed struggled to get a promotion or even a raise He worked tirelessly to develop himself and kept detailed notes of his work After nearly two years went by with no promotion he requested to meet with the Chairman of the corporation to discuss his career The Chairman was a Minister making him even more senior than his title implied Al Sharid was courageous and determined ldquoYou should not stay silent you have to take initiative your future is in your handsrdquo says Al Sharid
ldquoI met with the Chairman and told him about my work and what I wanted to do He did not talk he just listened and that was it It was a 15-minute meetingrdquo says Al Sharid Three days after Al Sharidrsquos pivotal appointment he was promoted to Deputy General Manager Directly from a Trainee to DGM skipping all the roles in between at the age of 27 years old They doubled his salary and catapulted him into a senior leadership role
ldquoI felt it was quite strange to move up that fast and personally was not sure I could handle the job I had a lot of resistance from the board I had people in their 50s reporting to me and they were not happy about it So I just took a step back and did not try to get involved in their work too fast I went slow and watched my step This was a very important
ldquoThe UAE was a brand new country and a lot of work was being done to develop the nationrdquo
never had any idea of a career path and there was no such thing as career counsellors or lsquocareer servicesrsquo at the school So when you graduated most people just joined the Ministries The UAE was a brand new country and a lot of work was being done to develop the nation The Federal Government paid the highest and so one just joined them There was no grand vision or dream that I was off and chasing In those times you simply tried to do the next best thing So I ended up working in the Ministry of Health as an accountant Back then a university degree was a veritable qualification and it had a lot of market equity today it wonrsquot even get you in the doorrdquo
As the Middle East market evolves not only are university degrees becoming more common but so are post graduate degrees such as MBAs and even PhDs As such the competitive positioning of professional qualifications are gradually eroding over time
ldquoTo stay competitive executives today will require deep and specialised knowledge of their respective industries an intellectual arbitrage that provides superior results To beat the market to manage the risks to develop a sustained competitive edge For this executives need to stay in a role for the full strategic cycle which is at least four years in durationrdquo says Sharid In the case of Al Sharid he was there for 33 years
ldquoDo you just want a job or are you looking to make a contribution to your company Too many young people today are just looking for a title or a position The difference between those who make it into senior roles and stay there is the desire to create impact to add value
InterviewPERSONALITIES
2012year Moodyrsquos upgraded the UAE economy from developing to emerging
37The UAErsquos global rank for GDP
STAT FACTS
moment for me to gain valuable leadership experience early on To make my learning curve even steeper the General Manager quit after two years and I became the GM at the age of 29 years oldrdquo explains Al Sharid
He ascended to the top job in less than five years and stayed in the position for almost twenty years He was totally committed and could even be found in the bus yard at four in the morning to greet the drivers as they started their shifts ldquoThe key to being successful in business is to keep your finger on the details Some people let the details slip and if this happens you will suffer I get into the yard I meet the drivers I meet all the staff If you saw us you will not know who was the GM or who was the driver You have to realise people will never work for you they will only work with you To me Emirates Transport is like my familyrdquo says Al Sharid
When asked what his keys to success are he says ldquoI think if I was not an accountant I would not be a good leader I would not be a good manager In my opinion trying to do business while not understanding accounting is like getting into the ocean and not knowing how to swim you will drown The Chief Executive Officer who does not know how to create the financial statements is always at the mercy of his Chief Financial Officer He cannot take any big decision on his own and he will not even be able to challenge the CFO Accounting is the bedrock of any business and a critical skill set for any leader No one can argue with this factrdquo says Al Sharid
With over 20 years of experience in tow and the related chairmanships to boot Al Sharid
ldquoTrying to do business while not understanding accounting is like getting into the ocean and not knowing how to swim you will drownrdquo
has since early last year partnered with his family to form Al Sharid Auditing Though the Emirati youth is not as keen to pursue positions related to accountancy as Al Sharid was he feels that there is hope to close the gap
ldquoIt is difficult to find an Emirati expert I studied the audit market specifically and there were others like me then But now you break Emirati auditing involvement into three categories The first involves the big firms This is followed by individual smaller enterprises But thirdly a lot of locals opt to work with the government also Most are not managing their own firms they just have a partnership and they are building thatrdquo Al Sharid explains
ldquoAl Sharid Auditing however is a firm that includes my brother and our two sons which make up a body of qualified professional auditors We established this firm last year and work closely with the government We decided to make one firm together instead of having many smaller entitiesrdquo
Moving forward Al Sharid plans to grow his familyrsquos firm by applying the very belief system which has catapulted him to his position of power Marketing concerns which are designed to furthermore announce how tailored Al Sharidrsquos offerings are at present a key variable to forging ahead
Said Al Sharid ldquoMoving forward wersquore focusing more on the marketing of our firm Itrsquos a matter of not exactly expanding but going over the right deals The market is tough and the small jobs are easy but we donrsquot need them We donrsquot want to be in many rooms we want to be in the important onesrdquo
29wwwthecfomecom
InterviewPERSONALITIES
1UAErsquos rank among GCC nations for chosen hub of all major accountancy bodies
STAT FACTS
Latest insights from PwCrsquos 15th Annual Global CEO Survey revealed that 59 per cent of CEOs see emerging markets as more important than developed markets to their future What is making emerging markets such a pressing priority for C-suite executives Why are emerging markets increasingly grabbing headlines
Emerging markets are large fast-growing and ambitious markets best known for being the growth engines of todayrsquos global economy Research (1) suggests that emerging market countries are expected to amount for more than 60 per cent of global GDP growth ndash a clear indication of the wealth of opportunity they present
Understanding emerging marketsBased on estimates by the International Monetary Fund emerging economies are expected to grow two to three times faster in comparison to developed nations Explaining this fast-growth and the rise of these emerging markets an article on Forbescom details that ldquoduring the US housing crash and resulting credit crisis of 2008 world markets were saved from a total disaster thanks to the big emerging markets ndash mainly Brazil India and China The global credit crisis was one of the longest deepest and most painful in history It toppled Wall Street icons like Lehman
The following report explores emerging markets from West to East which are at the helm of economic development trade and innovation and highlights what their rising popularity means for the growth of your business
Brothers required government bailouts of bulge bracket banks and shocked the global economy with a deep economic recession and even a deeper crisis of confidence Its most important legacy though may be one that has yet to fully unfold the crisis revealed a new world order in terms of economic and market dynamics Emerging market economies finally arrived as
30
Market IntelligenceANALyTICS
wwwthecfomecom
ENTERING EmERGING mARKETS STRATEgIES RISKS ANd OppORTuNITIES
Projected annual GDP growth 2014 amp 2015
PANAMA
67
PERU
RANK42
55
Projected annual GDP growth 2014 amp 2015
Ease of Doing Business
RANK55Ease of Doing
Business
TOP TEN MARKETS
(1) Source here Accenture Research ldquogearing up for growth ndash five imperatives for success in emerging markets 2011 Henry Egan and Armen Ovanessoff
31
Market IntelligenceANALyTICS
wwwthecfomecom
LATVIA
CZECH REP
MALAYSIA
THAILAND
SOUTH KOREA
CHINA
RANK75
41
21
50
45
35
74
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
CHILE
RANK 34
43
Projected annual GDP growth 2014 amp 2015
Ease of Doing Business
RANK 24Ease of Doing
Business
Ease of Doing Business
RANK 6Ease of Doing
Business
RANK18Ease of Doing
Business
RANK 7Ease of Doing
Business
RANK 96Ease of Doing
Business
POLAND
32
RANK45Ease of Doing
Business
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
Source httpwwwbloombergcomnews2014-01-29qatar-china-top-ranking-of-frontier-and-emerging-marketshtml
powerful essential and permanent contributors to global economic growth and sustainabilityrdquo
Bloombergcom recently ranked the top emerging markets based on their performance on 19 economic financial political and social indicators In order of ranking the top ten markets were
CHINA
SOUTH KOREA
MALAYSIA
CHILE
THAILAND
PANAMA
PERU
LATVIA
POLAND
CZECH REP
1 6
2 7
3 84 9
5 10
Market IntelligenceANALyTICS
32 wwwthecfomecom
Making an entryIf your business is looking to enter any of these emerging markets itrsquos worth considering the following checklist
1 Assess your readiness The biggest mistake you can make is to enter a market without proper evaluation of your business Donrsquot do it just because everyone else is Like every other major business decision be sure to speak to your Board of Directors partners investors stakeholders and most importantly your CFO and certified accountants Make a business plan enlisting your objectives goals investment strategy potential risks etc
2 Research research research Do your homework Treat emerging markets as any other international expansion venture and do thorough research on the new market ndash Who are the competitorsWhat is the price point for your product What are the customer demographics What kind of infrastructure do you need for the manufacturing production or distribution of your product
3 Understand the legal framework Emerging markets might not have rules and regulations as clearly spelled out as your home country Invest some time and money in understanding how business procedures work A very obvious area of focus for UAE-based companies is tax Since the UAE is a tax-free economy companies arenrsquot exposed to tax accounting and other legislation surrounding
ndash failing to adapt to the needs and expectations of the local customers is surely a recipe for failure Time and again companies havenrsquot been able to create a customised offer and have had to exit these markets with huge losses A success story however is that of the Haier Group Haier famously introduced washing machines to specifically suit the water pressure levels in the households of India ndash an emerging market strategy that worked very well in their favour and helped them become leaders in that sector Another great example is that of Coca-Cola as explained in an online Reuters article by Matt Reilly ldquoIn Brazil Coca-Cola has used social media to better understand consumer preferences and has developed a successful local network to supply traditional Coca-Cola products as well as fruit juices tailored to local tastesrdquo
7 Local currency This is a complex yet critical area to consider when entering a new market Ask yourself questions such as ndash What is the local currency rate How does it compare to the currency in your home country Is the country import-led or export-led and what impact can this have on the global value of the currency Remember that fluctuations in currency rates can hugely effect your overall investment and thereby the return on investment
8 Build partnerships When entering an unknown territory it is quite useful to have the backing and support of peers who can help you in case of unforeseen challenges This is
this Another area to consider is corruption ndash emerging markets are notorious for high corruption red-tape and bureaucracy Speak to your company lawyer to assess these areas and take proper measures to avoid them before-hand
4 Invest in local talent Working with people already accustomed to the new market avoids the hassle of relocation and reduces costs But more significantly gives you skilled talent to work in these unique environments This also works in favour of your company as it gives you a clear understanding of the kind of compensation packages you will have to offer to your employees For instance employees based in China might want high remuneration and low healthcare benefits while in India it may be quite the reverse Recruiting local talent will also have a trickledown effect ndash your employees will easily be able to cater to the local customer needs without the need for intense training
5 Supply chain 44 per cent of business leaders surveyed consider accessing the right supply chain capabilities extremely or challenging in emerging markets according to Deloittersquos Globalisation Survey Make sure that you know who your suppliers will be what the production costs are whether their production procedures fit your time constraints and if the final product matches your level of quality
6 Cater to local market demands This is one of the most important aspects of all
Do your homework Treat emerg-ing markets as any other internation-al expansion venture
Market IntelligenceANALyTICS
33wwwthecfomecom
the very reason why Mergers and Acquisitions are a popular way to enter into emerging markets Many companies piggyback on their clients who are entering these markets For instance if you are an IT consultancy working on a major project for a manufacturing and trading company with operations across India and China you can use their resources and expertise to explore opportunities in these countries
Remember to consider these steps every time you enter a
new market as every locality has its own set of unique needs One strategy doesnrsquot fit all
Surviving fierce market conditionsWhile the massive opportunity that lies within emerging markets paints a pretty picture businesses need to be wary of bottlenecks such as corruption volatility gaps in laws and regulations and strong competition There have been several high-profile cases of multinational companies withdrawing from emerging
markets owing to immense corruption pressures
There is also a high percentage of inherent risks in these markets which amount to many companies not succeeding in their first attempts It is important to take your time when adapting to these markets and fully understand the business dynamics Following recent case studies and going over the lessons learnt by multinational companies who have made an entry into these markets consider the below
bull Is your companyrsquos head-office ndash and senior management ndash located in your home country without any C-level representation in the new emerging market
bull Are you focusing all of your resources on doing business in the emerging market at the cost of losing profits in your home market
bull Have you researched local competitors in these markets who may already have a strong standing and proven models of success
bull Are you using the same ldquoentry approachrdquo and business model across different emerging markets
If your answer to one or more of these questions is yes it may be time to re-evaluate your presence in these markets and map out a different strategy
Finally remember that no matter what the outcome of your admission to these markets might be your business is sure to emerge out of this stronger tougher and ndash of course ndash ready for a new challenge
of companies believed they had invested more resources in
emerging markets than was required
entered a market without fully assessing the ability of the supply chain to support the expansion
entered with the wrong pricing model and an inappropriate
operating model
CONSIDER THE RISKS
48
24
20
There is also a high percentage of inherent risks take your time when adapt-ing to these markets and fully understand the business dynamics
Source Emerging markets expansion and the supply chain Economist Intelligence unit survey conducted on behalf of EY September 2010
34
CIMA INTERVIEW
wwwthecfomecom
The Chartered Institute of Management Accountantsrsquo (CIMA) Managing Director Andrew Harding visited Dubai to host the Institutersquos seminar on global management accounting principles In the wake of CIMA revising their well heralded syllabus Harding discussed with CFO Magazine what the newest edition held how CIMA is applying a digital focus to its courses and just how CFOs can gain from it all
CURATING CURRICULUm
35
CIMAINTERVIEW
wwwthecfomecom
can give CFOs something they can take and something they can measure their own management accounting services against They can benchmark using this and they can utilise this to see their progress
Part of that is having professional management accountant in place I donrsquot think the landscape matters I believe that there is a common business need wherever you may be around the globe
All of the emerging markets need these skills The first aspect that accounting schools teach is about auditing skills because theyrsquore interested in protecting investments Then they teach you how to keep your business sustainable and to have a sustainable business you need to have a management accountant in place So itrsquos not just here in the UAE where we see these demands we see the same demands in China Indonesia and other powerhouse economies We see their skills shortages and we see the need for solutions in those areas
Talk to me about how this new syllabus works to promote the evolution of a CFOThis syllabus that wersquove
Can you expound on just what can be found within the new CIMA syllabusWe just revised the syllabus we do that every four to five years What we have done this year is a very significant revision It is based from a complex study that we have carried out to over 3000 people from 200 companies globally It is the very first revision since the joint venture with CIMA and AICPA So this has allowed us to attain a syllabus rich with all the data from all the continents in the world For the first time wersquove had real involvement from companies in the USA in this project
Why is the collaboration between AICPA and CIMA significantMost important is the Chartered Global Management Accountant (CGMA) designation that AICPA and CIMA both issue for qualified management accountants Wersquoll have a common curriculum and common examination which will begin on January 1 which gives us a global designation for management accountants wherever they are around the world There are plenty of accounting bodies who claim to be global but actually this is the only
genuinely global designation This is because it has the only one with a North American participation in it So we can say that the CGMA will be just as well-recognised in the USA as it is in Dubai
With the global landscape in mind how do you create an even objective that applies to localities which may prove widely differentialThe landscapes are different but businesses have common needs wherever they may be What wersquove particularly seen since the global financial crisis is that companies are actively looking to build management accountant capability to build that capacity within their organisations They donrsquot want to have a poor quality of information that lacks insight being used in their businesses So they see management accountants can bring solutions to that As a result of all the work wersquove done with companies who participated in the syllabus wersquove also put together a series of what we call Global Accounting Principles This is a series of principles which describes what good management accounting looks like and what top quality management accounting in a company should be producing This then
ldquoCompanies are actively looking to build man-agement accountant capability to build that capacity within their organisa-tionsrdquo
36 wwwthecfomecom
worked on acknowledges the skill set needed by professionals throughout their career Therersquos a base level of competence that is needed but beyond that there is more There is business acumen the ability to communicate and influence and finally the ability to lead So you start off enhancing your raw technical accounting skills Then you need to place that into the context of the business that you are in Then as you move forward and as you rise to become the CFO yoursquoll need the others You have to learn how to present your work in a way that can influence and make an impact in the business The final piece is the ability to lead projects and other functions and to a great extent lead the board of directors Thatrsquos how the context works itrsquos not just about technical knowledge
How do you find that CFOs in the GCC region are responding to this programmeThe CFO has a real challenge on his hands now In 1975 80 per cent of corporate value is showing on the balance sheet By 2010 that dropped to less than 20 per cent Your traditional PampL reports no longer reflect the value of the business or how the business drives value
All things that should be of interest to investors is missing With things like the integrated report initiative wersquore starting to see the other dimensions that add value to business For CFOs thatrsquos all about strategic thinking and considering the long-term objectives Being articulate in implementing those strategies keeping in mind the risks and opportunities that the business faces We are also nowadays witnessing a whole new world of transparency around that
Are there electronic aspects to CIMArsquos advancing approachThe interactive case study simulates a real working situation and it tests how they can apply their knowledge in real life situations Theyrsquoll be presented with a scenario a few weeks before they take the exam so they can prepare for it They then go to an exam centre where they are asked questions about how they will deal with a certain situation in the real world Theyrsquoll get an email from the CFO giving them a certain task for a particular period of time We want to make it as close to reality as possible so students taking the exam will be assessing situations based on real life scenarios
ldquoThe CFO has a real challenge on his hands now as traditional PampL reports no longer reflect the value of the businessand [the role] must focus on strategic thinking and considering long-term objectivesrdquo
218KCIMA members worldwide
STAT FACTS
CIMA INTERVIEW
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
38
ERPANALyTICS
wwwthecfomecom
Faster more nuanced IT solutions are available to the modern day CFO Whilst Chief Financial Officers are called upon to analyse data across a number of spectrums the digital tools on hand are likewise being expanded to aid in focusing more squarely on the bottom line
ExCELLING WITH ERP
The global landscape is today firmly entrenched within a digital model As a result CFOs whom are called upon to take a larger role in a number of variables must also increase their abilities with respect to utilising the many upsides which tech innovations offer a business When surveyed about their most pressing concerns CFOs generally return a varying collection of responses Revenue growth regulatory changes and meeting quarterly goals are among the chief concerns Virtually every obstacle can be hurdled by way of maintaining the order of financial reporting and data which has long been
synonymous with the Chief Financial Officerrsquos remit A widening berth of ERP solutions is making this data all the easier to come by
Despite how sophisticated the market is today it was not long ago that ERP departments once spent days processing business reports
Said Rohan Tejura Assistant Vice President Focus Softnet ldquoTraditional ERP systems were solely data repositories Moreover these repositories werenrsquot real time and were incredibly dependent upon locational connectivity With the emergence of smarter development platforms more versatile devices and
39
ERPANALyTICS
wwwthecfomecom
more intuitive designs of system development the overall experience of the ERP now extends from data warehousing to reporting analysis trend mapping business intelligence and governance oriented capabilities Yet these solutions amazingly execute all of these deliverables via portable handheld devices and through cloud environmentsrdquo
New generation ERP systems must now be on the go whilst including up to the minute analytics to provide deeper insight into the business ERP Analytics tools use historical data captured from various business functions to provide valuable information for efficiency and business performance each incredibly priceless to a leading CFO
Finesse is an ERP provider which is continually addressing the transformation of output which the ERP industry is offering the equally transitioning role of CFO
ldquoWe provide end-to-end business management solutions to SMEs and Enterprises Our approach to ERP is much more than providing simply an operational management systemrdquo said Finesse COO Sunil Paul
ldquoWe believe that todayrsquos businesses need much more than integrating sales with inventory accounting and manufacturing but also to have seamless integration with all their sales channels including the point of sales ecommerce and inbound sales solutionsrdquo
A major im-petus of the ERP-cen-tered growth is based on how effec-tive com-prehensive real-time data proves to be for the CFO
40 wwwthecfomecom
before thereby creating new global benchmarks for overall economic growth
Microsoft Arabia CFO Sadrul Khan offered insight into just how far the knowledge economy has influenced regional financial leadership by explaining how one of the most prioritised technologies by CFOs in the region is social platform monitoring
ldquoOne of the five technology choices that CFOs tend to prioritise in boosting productivity efficiencies and faster decision making in the fast paced business environment which include a social platform that monitors trends customer sentiments and helps process mashable data for customer centricity and business growthrdquo said Khan
A major impetus of the ERP-centered growth is based on how effective comprehensive real-time data proves to be for the CFO Whether employed as on-premise ERP software-as-a-service or cloud-based solutions a nearly identical ethos is being utilised Allowing the CFO to quickly access the performance of all facets of a business is paying dividends in the boardroom a reality which is showing itself increasingly in the Middle East
The technologically-charged relationship between ERP solutions and the regionrsquos CFOs is expanding and as a result has catalysed what many see as GCC economic performance outstripping that of many economies outside of the region as a result
In order to compete in todayrsquos fiercely competitive environment organisations need to think both innovatively and out of the box They require more insights about their business and their customers and need to ensure that they are able to meet the expectations of their internal as well as external stakeholders Enormous amounts of data both structured and unstructured is continuously being generated within the internal and external systems of the organisation which if analysed can be of immense value both to the business and subsequently the stakeholders associated with the organisation
With the the era of CFOs labouring over spreadsheets now in the past given how many business frontiers have become so dependent on mobile options such as the cloud more and more tech companies are providing the regionrsquos CFOs with information technology that converts traditional internal and external data into rich visual insights This information is then used for faster decision making and provides the ability for a CFO to assess manage and control risks Regional CFOs have grown enabled to drive corporate strategy accordingly demonstrating how the knowledge economy is now in full force amongst the Gulfrsquos corporates
Given that advanced IT has now become a regular CFO tool the regionrsquos CFOs are subsequently making faster decisions and driving internal growth models with greater speed and agility than ever
Tech companies are providing the regionrsquos CFOs with information technology that converts traditional internal and external data into rich visual insights
ERPANALyTICS
Donrsquot discoveritrsquos counterfeittoner afteritrsquos too lateOriginal HP Toner works first time every time1 unlike cheap toners which fail over half of the people who try it2 Non-HP toner can compromise your printerrsquos performance to give you streaked blotchy or faded prints Only original HP Toner cartridges deliver unmatched quality for the most professional-looking prints 100 of the time1
1 A QualityLogic 2010 study commissioned by HP comparing original HP LaserJet Monochrome print cartridges with nine brands of non-HP toner cartridges available in Europe Middle East and Africa for the HP LaserJet P1505 and P4015 printers HP 36A and 64A For details see wwwqualitylogiccomEMEAmonotonertestpdf 2 From a 2012 EMEA Lyra Research study commissioned by HP Results based on a total of 1050 HP Color LaserJet users who have used both original HP and non-HP toner cartridges of whom 552 experienced problems with non-HP cartridges
copy 2014 Hewlett-Packard Development Company LP
42
Private Equity ANALyTICS
wwwthecfomecom
The rise of PE-backed acquisitions is forcing CFOs to develop an entirely new set of skills
THE PRIvATE EQUITy CFO
The CFOrsquos utility in the world of private equity is without question on the rise The once-held belief of the CFO existing solely as the ldquoaccounting guyrdquo has been abandoned Over the last 20 years the role of CFO has become more demanding - requiring not just finance and accounting acumen but also a financial literacy in corporate planning risk management MampA assetliability management and regulation This evolution has been driven by a number of
key factors Yet the private equity industry which is now reshaping the corporate landscape through active ownership is by far the most significant factor driving change within the role of the CFO
PE-backed buyers today represent a larger percentage of overall buyers in the corporate acquisition marketplace than ever before Data provider Prequin estimates that as of June 2014 the capital raised by PE funds that
has not yet been deployed amounts to $114 trillion globally The result of this ldquodry powderrdquo is that a vast quantity of corporate acquisitions in the coming years will be undertaken by the private equity industry As such CFOs will be more accountable to demanding ldquosmart moneyrdquo shareholders than at any point in recent history Budgeting accounting and financial reporting will no longer exist as sole priorities but as a core competency among a
ldquoBy effec-tively using real-time data CFOs can create a dynamic process that proac-tively drives performance account-ability and value crea-tionrdquo
By Aaron Heidari
43
Private Equity ANALyTICS
wwwthecfomecom
robust set of complimentary and required skills Most of all the bar for CFOs is rising as PE investors will only accept above-average performance from their management teams
CFOs were once more reactive in function setting budgets based on other executivesrsquo plans and managing the flow of reporting to shareholders on a quarterly and yearly basis Today CFOs are required to become proactive managers of their respective businesses alongside their C-suite compatriots using a granular data-driven approach to aggregate analyse implement and report on every aspect of a companyrsquos operations
An important tool to drive this value creation process are KPIs Yet KPI structures including both aggregation and output are generally not up to the standards required of private equity investors prior to an investment being made
ldquoThe benefits of using KPIs and monthly reporting packages are significant By effectively using real-time data that is actionable and by partnering with functional area leaders within the organisation company CFOs can create a dynamic process that proactively drives performance accountability and value creationrdquo said Amanda Robinson Vice President of Accordion International in Dubai a consulting firm which is comprised of former private equity and investment banking professionals who
MENA region Cumulative Funds Under Management Since 2008
Source Zawya private Equity Monitor
19 636 20 36321 586
22 64323 506 24 250
-
5000
10000
15000
20000
25000
2008 2009 2010 2011 2012 2013
Cu
mu
lati
ve f
un
ds
($ m
)
$15mAverage MENA PE investment size in lsquo13
50Percentage of investment in IT and energy sectors
STAT FACTS
44 wwwthecfomecom
work with companies to deliver cost-effective project execution services
Active shareholders whose money it is being spent will typically require a data-driven justification before approving any budgets capital expenditures or new acquisitions Furthermore in many private equity backed companies the use of debt and the matching of shorter-term bank financing with longer-term investments will only be considered after a robust analysis is conducted to understand the companyrsquos ability to service that debt in the future This evaluation is not simply to identify revenues expenses and profits Itrsquos about drilling down into every transaction and rooting out data processing and reporting At least that is the expectation
The most valuable CFOs are those who have the ability not just to scrutinise and understand the financials but all also possess a wider grasp of the underlying data which truly comprise the business As an investor who has just acquired a stake in a new business I want a CFO who can manage the transition and stay ahead of my expectations Most of all a CFO should impress upon the companyrsquos shareholders a new way of doing business The first 100 days of an acquisition are said to be the most important During this period the CFOrsquos worth will be established when the new financial plan is due and the platform for the next five years of growth is presented
A CFO should man-age the tran-sition stay ahead of expectations and impress upon the companyrsquos shareholders a new way of doing business
Investment Volume By Sector Since 2006
Investment Volume By Sector in 2013
Source Zawya private Equity Monitor
1
3
30
17
3
28
3
4
6
4
6
5
17
9
9
6
9
5
8
6
6
2
3
10
Education
Education
Information Technology
Information Technology
Other
Other
Telecoms
Telecoms
Media
Media
Transport
Transport
Oil amp Gas
Oil amp Gas
Healthcare
Healthcare
Consumer goods
Consumer goods
Food amp Beverages
Food amp Beverages
Leisure
Leisure
Manufacturing
Manufacturing
ANALyTICS
Private Equity
2000857 NBAD ratibi mag ad 200x268 Finalindd 1 92514 1017 AM
46 wwwthecfomecom
THE FUTURE OFACCOUNTING EDUCATIONAddRESSINg THECOMpETENCY CRISIS
Have you ever stopped to think about how the accounting profession has changed since you graduated from college Recent graduates can answer this question by reflecting on the last two or three years whereas for other more seasoned professionals answering this question requires a bit more thought and memory searching Indeed we can all think of ways that the field of accounting is remarkably different today from the one we likely envisioned during our college daysmdashregardless of which decade we each donned our cap and gown This gradual transformation of the accounting profession leads to two important questions related to competencies bull Which competencies are important for success inaccounting todaybull Were these competencies consciously developed as partof your accounting degree programme
We suspect that more than a few of you would answer ldquonordquo to the second question Put another way our profession may be facingmdashmore so than at any time in the pastmdasha ldquocompetency crisisrdquo that is a gap between the competencies needed for professional success and those taught in our college classrooms today We propose a three-pronged strategy or ldquogame planrdquo for overcoming this competency crisis and in turn better preparing accounting graduates for the challenging world they will face First all of us accountants need to understand the changes that have already taken place in our profession and perhaps more importantly anticipate the changes that are on the horizon Second we need to educate ourselves and future generations of accountants so that as a collective group we can deliver the expanding set of competencies demanded in todayrsquos dynamic organisational
contexts Third as professional organisations and as individuals we need to think beyond ourselves by asking How can I (or we) help the accounting profession address the competency crisis
A Shift Toward Integrated ThinkingMany articles and white papers have been written that describe in detail the changes that have occurred in our profession over the last few decades but for our purposes wersquod like to distill these changes down to one crucial idea How does the accounting function add value to an organisation Accountants have evolved from support-oriented personnel who hand off information to others who actually make decisions into business partners who ldquohave a seat at the tablerdquo with managers
By peter C Brewer James E Sorensen CpA CgMA and david E Stout
47wwwthecfomecom
1048576bull What regulatory risks mayaccompany the proposal
1048576bull What social and environmentalfactors will we face if for example the proposal requires investing in overseas operations
1048576bull What types of employeeresistance may arise if we implement the proposal and how will we overcome the root causes of any such resistance
1048576bull Can and how should we valuefuture options associated with the proposal such as expanding or contracting the investment over time as new information becomes available
1048576bull Should we use debt or equity tofund the proposal
In short accountants have evolved to become integrated thinkers who enable EPM by partnering with managers across the organisation to add value Yet as EPM has gradually become the centrepiece of our professionrsquos value proposition accounting education hasnrsquot done enough to embrace it To overcome this gap wersquod like to further suggest that the concepts of competency integration and EPM need to come ldquofront and centrerdquo as we move forward in educating the next generation of successful accounting practitioners
Accounting Education No Longer on the SidelinesRecently a task force consisting of members of IMAreg (Institute of Management Accountants) and members of the Management Accounting Section (MAS) of the American Accounting Association (AAA) addressed the competency issue How should accounting education change fundamentally to help close the competencies gap The efforts of the task force led to
cash flows and how to apply discounted cash flow (DCF) decision models such as net present value (NPV) is of foundationalmdashsome might say critical mdash importance But integrated thinkers draw on an understanding of organisational strategy coupled with a broader set of competencies (beyond what might be considered technical or foundational knowledge) when making these types of decisions For example they consider how behavioural issues may influence the capital investment decision-making process Perhaps the financial estimates contained in the NPV analysis are too optimistic because the manager who prepared the numbers has a vested interest in seeing the project approved Decision makers also need to consider issues such as leasing vs buying a capital asset and the corresponding impacts on the financial statements and ratios that are tracked by investors and lenders What nonfinancial factors are associated with the proposed investment Add in the tax consequences of capital investment decisions coupled with the need to maintain internal control over any new business processes tied to these decisions and the need to think in an integrated fashion across a variety of accounting competencies becomes apparent
Furthermore becoming a true business partner with managers across the organisation requires more than simply integrating various accounting competencies It also means thinking like a business manager or a chief executive officer (CEO) Returning to the capital budgeting example an integrated thinker will ask questions such as
across the organisation Together they formulate and plan strategies then participate in collaborative decision-making processes that execute those strategies in a manner that adds stakeholder value Said another way accountants have evolved to become enterprise performance managers This shift in our orientation from a support function to an enterprise performance management (EPM) role has enormous implications for defining the determinants of success within our profession the most important of which involves becoming collaborators and ldquointegrated thinkersrdquo Take for example a common but important business decision process capital investment analysis Certainly technical knowledge regarding how to estimate relevant after-tax
48 wwwthecfomecom
expanding capital budgeting discussions to include financial statement impacts tax consequences and internal control issues integrates topical coverage across the External Reporting and Analysis Taxation Compliance and Planning and Assurance and Internal Control competencies shown in Figure 1
Third accounting curricula can incorporate a broader set of management competencies For example evaluating capital investment proposals from the perspectives of change management (Leadership) social and environmental issues (Ethics and Social Responsibility) regulatory concerns (Governance Risk and Compliance) and capital structure (Additional Core Business Competencies) brings a CEOrsquos perspective to the decision-making process
Fourth accounting curricula should include foundational competencies such as proficiency with spreadsheets and written and oral communication In the context of capital budgeting this may include asking students to use Microsoft Excel to perform a sensitivity analysis and then to present their findings to the entire class
Working to Fix the ProblemAt this point although you may agree with us that therersquos a competency crisis within the accounting profession you may be wondering What does this have to do with me What can my organisation do to help address this so-called competency crisis The answer a lot Practice partners and academic partners can help the accounting profession overcome the competency crisis That said letrsquos take a closer look at the role of practice partners first
improvement) and accounting competencies (external reporting and analysis planning analysis and control taxation compliance and planning information systems assurance and internal control and professional values ethics and attitudes) Of critical importance to the framework is the assumption that the set of competencies contained in Figure 1 would be developed and integrated over time through a blend of formal education (including continuing education) training and job experience
What levels of integrationmdashon the road to developing integrated thinkers in accountingmdashare possible First accounting educators can integrate within a single accounting competency So referring back to our capital budgeting discussion teaching computational models such as NPV analysis coupled with a review of various behavioural issues associated with capital investment decisions would be an example of integrating within the Planning Analysis and Control competency listed in Figure 1
Second professors can integrate across accounting competencies For example
a recently published article that contains a proposed framework for accounting education reproduced here as Figure 1 The framework is general in the sense that itrsquos meant to apply to all accounting students not subgroups based on career specialisation such as tax assurance services corporate finance and the like Itrsquos based on the idea that accounting educators can better prepare students to deliver our professionrsquos EPM value proposition through integrated competency-oriented curricula (For more see ldquoFocusing Accounting Curricula on Studentsrsquo Long-Run Careers Recommendations for an Integrated Competency-Based Framework for Accounting Educationrdquo in the May 2014 edition of Issues in Accounting Education)
A glance at Figure 1 reveals three levels of competencies foundational competencies (communication ability to leverage technology and analytical thinking and problem solving among others) broad management competencies (including leadership ethics and social responsibility and process management and
Proposed Competencies-based Framework for Accounting Education
FOUNDATIONALCOMPETENCIES
ACCOUNTING COMPETENCIES
BROAD MANAGEMENT COMPETENCIES
leadership
ExternalReportingamp Analysis
PlanningAnalysis
amp Control
TaxationComplianceamp Planning
InformationSystems
Assuranceamp InternalControl
ProfessionalValues Ethics
amp Attitudes
Communication
Quantitative
Interpersonal
Technological
Analytical Thinking ampProblem Solving
Ethics amp SocialResponsibility
ProcessManagement ampImprovement
GovernanceRisk amp
Compliance
AdditionalCore BusinessCompetencies
Although you may agree with us that therersquos a competency crisis within the account-ing profes-sion you may bewondering What does this haveto do with me
A practice partner should be or become a CMAreg (Certified Management Accountant) maintain professional certification by completing required Continuing Professional Education (CPE) hours and regularly read the IMA publications Strategic Finance and Management Accounting Quarterly
In addition there are a number of excellent resources that deal with topics covered in this article and that IMA makes available to its members
Strategic Finance PowerPacks(wwwimanetorg SFPowerPacks) These are resources focused on contemporary topics similar to those discussed earlier Current offerings include Risk Management Strategic Planning IT Skills amp Software and Internal Controls Each PowerPack includes a combination of resources such as research studies articles and links to webinars
Statements on Management Accounting (SMAs)(wwwimanetorgresources and_publicationsresearch_ studies_resourcesstatements on_management_accounting aspx) SMAs represent monographs classified into one of the following six categories Leadership Strategies and Ethics Technology Enablement Strategic Cost Management Business Performance Management Finance Governance Risk and Compliance and the Practice of Management Accounting Multiple items are available within each category For example the Practice of Management Accounting category includes (among other items)
49wwwthecfomecom
the Definition of Management Accounting and Implementing Shared Service Centres
Research Studies (wwwimanetorgresources_and_publicationsResearch_Studies_and_ResourcesAll_reportsaspx) The ldquoThoughtLeadershiprdquo section of IMArsquos website includes research covering a broad range of issues classified into seven categories For example under the ldquoGlobal Business Environmentrdquo category the following two research reports are available ldquoKey Differences Between IFRS and US GAAP Impact on Financial Reportingrdquo and ldquoCosting Methodologies and Cost Management Practices in the Peoplersquos Republic of Chinardquo
IMA Leadership Academy (www imanetorgprograms_events leadership_academyaspx) As described on the IMA website this programme is designed to assess a memberrsquos leadership status enhance that individualrsquos skills (principally through monthly webinars) and recognise leadership achievements These benefits are free to members
How You Can Make a Bigger Impact In addition to attending local regional and national IMA meetings consider inviting a small group of students to each chapter meeting This could be a wonderful (and relatively low-cost) option for mentoring aspiring accountants and finance professionals providing networking opportunities and introducing students to cutting-edge issues regarding the practice of management accounting Joining a university accounting
advisory group may be another way to influence the development of EPM in that institutionrsquos curriculum design
Other methods to enhance EPM in your organisation include (1) forming user groups within your company your local IMA chapter or your industry to review and share EPM experiences (2) encouraging advancement in the firm to be linked to EPM proficiency (3) focusing your companyrsquos recruiting efforts on candidates who display a background in andor understanding of EPM and (4) organising cross training within your company to enhance a mutual understanding of each otherrsquos respective roles
Finally visit the Competency CrisisTM website (http competencycrisisorg) set up by IMA to unite the accounting and finance constituencies professionals students employers academics and professorsmdashand explore competency issues through the lens of each stakeholder group The site is designed to ldquoencourage a discourse spur action and create a community dedicated to resolving the serious crisis of competency present in the professionrdquo Special sections of the website are devoted to educators students and employers professionals
Our Partners in Education Much like a practice partner an academic partner should be or become a CMA maintain professional accreditation by completing CPE hours and regularly read IMArsquos publications
Academic members of IMA can pursue and actively promote the CMA programme at their respective institutions
50 wwwthecfomecom
IMArsquos website contains helpful resources including an exam content overview content specification outlines for each of the two parts of the CMA exam and learning outcome statements The current exam covers some of the professional competencies represented in Figure 1 A summary of changes to exam content which will be effective in January 2015 is provided on the IMA website in News amp Media Relations which is located under ldquoAbout IMArdquo (See the press release dated March 24 2014) Other helpful resources include ldquoICMA Announces CMA Exam Content Changesrdquo in the April 2014 issue of Strategic Finance as well as ldquoManagement Accounting Career Readiness Shaping YOUR Curriculumrdquo
These forthcoming changes are based on the most recent IMA study of the knowledge and skills needed by management accountants from the view of CFOs controllers and other accountingfinance professionals from around the world
Also consider taking a group of your students to the IMA Student Leadership Conference held each November The Conference provides excellent networking opportunities for you your students and practicing professionals Students can learn firsthand from Conference presenters the challenges and opportunities facing finance and accounting professionals today
Moreover if your institution doesnrsquot currently have an IMA Student Chapter consider forming one One of the authors of this article David Stout reinstituted the student chapter at his school (Youngstown State University) after travelling with a group of his students to the IMA
Student Leadership Conference in Cleveland Ohio Through an IMA Student Chapter on campus students are able to work closely with a sponsoring local IMA chapter and bring to campus speakers who are experts in a wide range of topics including those discussed earlier in this article Each year student chapters compete for an Award of Excellence (AOE) and recognition as an Outstanding Student Chapter In addition IMA student members are able to engage in networking activities leadership training mentoring and community service programmesmdashall through their local chapter
You also might consider volunteering to serve as a Campus Advocate In this role yoursquoll represent IMA in all major matters of interest to your students (scholarship opportunities starting a student chapter mentoring and the like) and to your institution (for example leveraging IMA resources to advance the relevancy of the accounting curriculum use of educational case studies published in the IMA Educational Case Journal and access to IMArsquos ethics curriculum)
And if you havenrsquot yet done this ask IMA to endorse your accounting programme (information is available at www imanetorgeducator_resources indexaspx) This programme is designed to identify business curricula that meet the quality educational standards required to prepare students to earn the CMA designation Endorsement is based on an analysis of the curriculum and topics covered on the two-part CMA exam Currently 12 programmes have been endorsed
Finally if your school has an IMA Student Chapter consider participating in the annual IMA Student Case Competition where students are asked to propose a solution to a real world problem (Cases are solicited each year by Raef Lawson IMA VP of Research and Policy and IMA Professor in-Residence) Finalists make their presentations at IMArsquos Annual Conference amp Exposition before a set of judges consisting of accounting faculty members and practitioners Each year a new case is published in the August issue of Strategic Finance for students to use for that yearrsquos competition
Working TogetherIn this article we have summarised the changes that have affected the accounting profession and provided a competencies-based framework for guiding accounting educators in responding productively to those changes As a management accountant you know that implementing change in any organisation let alone within an entire profession never comes easily To be successful in overcoming our professionrsquos competency crisis IMArsquos practice and academic partners will need to assume leadership roles in defining enterprise performance management as the cornerstone of the accounting professionrsquos value proposition
This article was orginally published in the August 2014 issue of Strategic Finance It appears here with the permission of The Association of Accountants and financial professionals in Business
We need to educate ourselvesand future generations of account-ants so that as a collec-tive group we can deliver theexpanding set of com-petenciesdemanded in todayrsquos dynamicorgani-sational contexts
THE POWERFUL AND THRIFTY OFFICE ALL-ROUNDERS
The new ECOSYS M3560idn series will astound you With their print speeds of up to 60 pages per minute they are among the most productive A4 bw multifunctionals on the market We nevertheless managed to keep their ecological footprint and total cost of ownership impressively low by using our well-known ECOSYS technology and equipping the devices with our renowned long-life components The result Not only less waste and lower maintenance costs but also less hassle for you and all your colleagues You will also greatly appreciate the many customisation possibilities of the devices equipped with KYOCERArsquos open solution platform HyPAStrade as it allows you to tailor the device to your needs So yes we are proud of our new range of MFPs and can hardly wait to share their numerous benefits with you
For more information please contactKYOCERA Document Solutions Middle East | PB Box 500817 DubaiUAE | Tel +9714 4330 412 | Fax +9714 4231 944KYOCERA Document Solutions Europe BV - wwwkyoceradocumentsolutionseuKYOCERA Document Solutions Inc - wwwkyoceradocumentsolutionscom
52
ACCAINTERVIEW
wwwthecfomecom
GLOBAL By ASSOCIATION
across the region from our key employers and learning provider partners to our active and growing student and member base I want to understand their challenges and priorities and how ACCA can work with them to help support the economic success of the region
What can a CFO gain from working with ACCAThe ACCA qualification is about complete finance professionals For CFOs it brings the technical knowledge vital to business success complemented with the strategic management skills and ethical competence crucial to an organisationrsquos success As an organization ACCA in the UAE brings CFOs access to that local and global network of peers and expertise along with our leading research and insights that help them to keep up to date on the issues that matter most
Are there any initiatives in place to leverage the recently announced partnership with AAA
How are the ACCArsquos many years of activity being applied to the Middle EastACCA has now had a presence in the UAE for well over a decade During that time we have established strong relationships across the Middle East epitomised by the recent signing of our Strategic Partnership with AAA As a national body in choosing to partner with ACCA they recognised the local and global perspective we bring We are continuing to work with students members and employers across the Middle East to build their networks knowledge and business success through events research and insights and access to a growing number of online resources
Which initial priorities are among your key aims upon joining the organisationrsquos efforts in the UAEIn the first few months I hope to build on the success of the team in the UAE My priority will be to meet as many of our key stakeholders
The Association for Chartered Certified Accountants (ACCA) provides its services across a number of international borders The recent announcement of Lindsay Degouve de Nuncques as the new head of the Associationrsquos UAE chapter further exemplifies the ACCArsquos reach based on her previous work in the UK Nuncques shares here what she brings to the Middle East and just how globalisation has driven her ascent
53
ACCAINTERVIEW
wwwthecfomecom
The strategic partnership with AAA is the first of its kind in the region Students who complete the UAECA qualification will be entitled to both the AAA and ACCA designations and ACCA members in the UAE will also be eligible to apply for AAA membership This is a very exciting development in the market and together AAA and ACCA will be working to deliver maximum value to all our stakeholders from this partnership As we launch the UAECA qualification this activity will start in earnest
Which key industries will you be spotlighting in the Middle East in the months aheadOur experience of working across all sectors and levels of organisations globally gives ACCA a unique insight into all types of industries We will continue to be working with employers across the spectrum in the months ahead to help them gain the insight and make the connections that drive businesses to succeed at whatever they do
ldquoThe ACCA qualification is about complete finance professionals For CFOs it brings the technical knowledge vital to business success complemented with the strategic management skillsrdquo
54
Islamic FinanceMARKET OUTLOOK
wwwthecfomecom
In its 10th instalment the Forum is hosted in Dubai as a direct result of the UAErsquos increasing importance in the world of global Islamic finance
THE WORLD ISLAmIC ECONOmIC FORUm LANDS IN DUBAI
In Dubairsquos continued quest for leading the world across a range of spectrums the Emirate accelerated its desire to become the worldrsquos leading hub for Islamic finance by hosting the 10th installment of the World Islamic Economic Forum (WIEF) Delegates from dozens of countries attended to take part in a three-day event held at Madinat Jumeirah which rests alongside Dubairsquos gleaming coastline Held under the patronage of His Highness Sheikh Mohammed Bin Rashid Al Maktoum the
Vice President and Prime Minister of the UAE and Ruler of Dubai key speakers included The Honorary Dr Zeti Akhtar Aziz Governor of the Central Bank of Malaysia HE Kairat Kelimbetov Governor of the National Bank of Kazakhstan The Honorary Datorsquo Sri Mohd Najib Tun Abdul Razal Prime Minister of Malaysia and HE Xavier Bettel Prime Minister of the Grand Duchy of Luxembourg
Launched in 2006 in Malaysia WIEF has grown in tandem with the increased
Delegates from dozens of countries attended WIEF to take part in the three-day event
sophistication and reach of Islamic finance After a successful event in London in 2013 amidst increased interest in Islamic finance across Europe WIEF relocated to Dubai where the local business structure is keen to host halal finance
Said Hamad Buamim President and CEO Dubai Chamber of Commerce and Industry co-organisers of the event ldquo[The forum] is the start of a new chapter of cooperation between Dubai and the world as part of
55
Islamic FinanceMARKET OUTLOOK
wwwthecfomecom
Dubai Capital of Islamic Economy visionhellipestablishing a unified regulatory authority to provide the framework for standards across halal industries will significantly accelerate growth Likewise we need to see increased cooperation and partnership between the public and private sectors This is already happening with great success here in Dubairdquo
The order of global cooperation needed to facilitate growth across the Islamic finance world was more than apparent at WIEF based on how many differing nations were represented at the event The exhibitorrsquos hall was populated with a number of key Malaysian stands representative of the Southeast Asianrsquos ranking as the global leader in Islamic finance Also present were companies from Saudi Arabia also a key locality in the worldrsquos halal industries An interesting yet prescient presence was of attendees from South Korea a nation which is eager to participate in Islamic finance and will be hosting the WIEF Pyeongchang Roundtable in December 2014
ldquoGangwon is a province located in Korea which is very interested in new business opportunities Wersquove realised the strength of the Islamic economy and have come here with many different companies The first type is based in real estate investment We also have companies which want to export their products to the Islamic economy based on their halal qualities And Gangwon will also be hosting the Winter
ldquoKorea is very interested in the strength of the Islamic economy and wants to export its products based on their halal qualitiesrdquo
56 wwwthecfomecom
$247trillionProjected value of halal products industry in lsquo18
125Muslim percentage of global tourism expenditure
STAT FACTSOlympics in 2018 and are presently seeking investments for this as wellrdquo said Seong-hun Kim a member of Gangwon Province Governmentrsquos Export Support Team
Dubai proved to be an excellent place for the event considering how well the UAE is able to so regularly corral international cooperation A key sign of this was witnessed recently when Luxembourg now considered the third most important base for Islamic finance globally opened a finance office in Dubai International Finance Centre The European nation also opened a euro200 sukuk earlier this year which was quickly oversubscribed
The prime minister of Luxembourg offered the WIEF audience a riveting speech which detailed just how international the Forum has become whilst encouraging more of the world to support the growing influence of Islamic finance
Said Bettel ldquoWe need to innovate more economic partnerships for growth We sometimes need to reengineer relationships but also have to make sure these relationships remain sustainable Growth in one country also brings growth to others as long as this is guided by free market initiatives Free trade and free flow of capital combined with innovation leads to prosperity We have all gathered here in Dubai to explore the future of Islamic finance and Luxembourg is also a pioneer of Islamic finance in Europe The Islamic financial sector has a major role to play in continued global growthrdquo
The Islamic Corporation for the Development of the Private Sector (ICD) is based in the Kingdom of Saudi Arabia where it manages an international fund worth $2 billion half of which is available for subscription With shareholders in more than 50 countries and a sovereign sukuk fund recently launched in West Africa the ICDrsquos CEO Khaled M Al Aboodi attended WIEF this year excited to participate in the global event
How does the ICD approach its attendance at the World Islamic Economic ForumI think the Forum is one of the best places for discussing the financial issues of the OEC member countries It has been around for ten years and has grown to become a very important platform for discussion Wersquore here to attend and listen but also to network Itrsquos a great networking platform and a place to share views whilst letting everyone know what we have to offer
How has Islamic finance changed over the yearsOf course itrsquos growing in a large scale Some of it actually needs more support particularly with respect to regulatory frameworks Wersquore trying to partner with many international organisations like the IMF to try to provide support to countries to adapt regulation for Islamic finance Sukuk issuance is one of the biggest issues that needs to be addressed because there is a huge amount of liquidity in this arena Due to issues related to regulation sukuk issuance can be costly But with the regulation we are confident it will be on a level playing field with other forms of finance Compliance is a major area where more work can be done The Forum started with a roundtable on sukuk which shows how helpful WIEF has been over the years
What type of work does ICD do internationallyICD helped the government of Senegal to issue the first sovereign sukuk This was successfully issued last summer Progressing in this manner is something wersquod like to see continue across West Africa in order to utilise its resources with aiding development in the region in mind
QampA WITH KHALED M AL ABOODI CEO OF ICD
Islamic FinanceMARKET OUTLOOK
OFFICIAL SPONSORS
ENDORSED BY OFFICIAL HOST OFFICIAL
COMMUNICATIONS PARTNER
MEYDAN HOTEL DUBAI UAE19 - 20 NOVEMBER 2014
WOMENOMICSthe next emerging market
TAKE PART in making change happen UNITE with business and through leaders from across the globe
PARTICIPATE to the expansion of a modern and inclusive economy
58
Gautam PradhanINTERVIEW
wwwthecfomecom
SUCCESS BEyOND BOUNDARIES
in other management roles such as strategic decision making mentoring and leading efficiency and productivity across a range of other departments and functions as well as a being a catalyst in ensuring that the boardrsquos vision for the organisation is achieved
A significant percentage of NMDCrsquos shares are owned publicly Does the CFO play a role in balancing the interests of the shareholdersAs a CFO balancing the shareholdersrsquo interests is definitely part of my responsibility In order to achieve this goal there needs to be a careful evaluation of each decision while keeping the short-term and long-term goals of the company in mind At NMDC we actively implement a system where we utilise a balance scorecard as a method of ensuring that all our primary objectives are met yet at the same time continuously enhance our relationships with our shareholders
NMDC has completed various projects across the Emirates Are there plans to move abroadAs NMDC moves towards becoming an international player our strategic expansion plans are focused in areas within the GCC region and India In line with this strategy we opened
How has a company with such a unique set of deliverables grown so consistently over the yearsOur organisation strongly believes that the core to our strength is the people process and equipment A strategic decision led by our Board of Directors and the senior management has been implemented that required us to consistently invest in these three aspects to help expand our business beyond the territorial boundaries of the UAE and at the same time enhance what we can offer which is relevant to these segments We attribute our success to the efforts which every employee contributes We also strongly believe in the ldquoWe can make it happenrdquo principle The management raises the index of performance while setting SMART objectives within the organisation and encouraging the employees to achieve them
How has your position as the CFO changed over NMDCrsquos 35 years of operationAs the market evolves and business dynamics change my role as the CFO has become complex and more challenging A few years back I was mainly focused on bookkeeping accounting and other financial responsibilities such as arranging bank facilities But moving forward I became more involved
The UAE is progressively becoming a hub for world-class infrastructure The country has duly impressed the rest of the globe with noteworthy land developments showcased across the emirates Among the remarkable landscapes found in Abu Dhabi are the Corniche Beach Yas Island and Sir Baniyas Island Behind these successful projects is NMDC the dredging division of Abu Dhabi National Oil Company (ADNOC)
In an interview with CFO Magazine Gautam Pradhan Chief Financial Officer NMDC shares an exclusive look into the companyrsquos international blueprint for growth and his dynamic role as a strategic leader of one of the best in dredging and marine construction in the Middle East
59
Gautam PradhanINTERVIEW
wwwthecfomecom
branches in Qatar Bahrain Oman and India This has paid rich dividends recently as projects of strategic importance are bagged in Qatar and Bahrain Furthermore NMDC (UAE) has recently played a key role as a leader of an international consortium with Royal Boskalis Westminister (Netherlands) and Jan De Nul Group (Belgium) for the awarding of the Suez Canal Dredging project in Egypt Moving forward we have devised a strategic approach that will enable us to play a key role in the development of Indiarsquos marine infrastructure
What are the global strategies that are part of the CFOrsquos responsibilitiesAs CFO understanding the macro economic scenario risk analysis and mitigating those risks are all a part of my responsibilities I also have to have a proper comprehension
ldquoA few years back I was mainly focused on financial responsibilities moving forward I became more involved in strategic decision making mentoring and leading productivityrdquo
Gautam PradhanINTERVIEW
60 wwwthecfomecom
of the challenges faced by the company in terms of dealing with foreign contracts direct and indirect taxes and hedging and managing the integration process These are essential to enhance shareholders wealth and mitigate undue risk
How significant is accountancy for NMDC in its operations Why exactlyAccountancy is the lifeline of any company it does not only record the finances it also reflects the health of the organisation The MIS reports analysis trends and statistical information go a long way toward effectively providing
the diagnostic approach essential for the company
How have NMDCrsquos environmental activities helped the companyrsquos bottom lineNMDCrsquos work is well-synchronised with our environmental activities and specifically with nature Our activities are closely linked to sand and water and we view such activities with strategic importance Projects such as increasing water supply to mangroves and beach nourishment help us support the environmental activities while adding to our bottom line
ldquoAccountancy is the lifeline of any company it does not only record the finances it also reflects the health of the organisationrdquo
A burgeoning slice of Abu Dhabi coastline
The largest business awards
in the GCC30th November Dubai
nominate now at wwwstarsofbusinessawardscom
Stars of Business has become an iconic awards brand like no other in the region It recognizes the very best SMEs across 26 business categories Itrsquos universally respected as scientifically assessed and unimpeachably judged
327000 SMEs across the UAE$234 billion estimated total revenue of the SME sector4974 Awards entries in 20131856 Individual company applicants
Presenting Partner Strategic SME Partner Gold Sponsor Gold Sponsor VIP Hospitality Partner Supporting Partner
Trade Facilitator PartnerTrade Credit PartnerLogistics Partner
Institutional Partner Institutional Partner Event Partner
OrganiserPublisherMedia Partner Media PartnerPort Authority Partner
62
David Allen INTERVIEW
wwwthecfomecom
What went into completing your bestseller ndash Getting Things Done (GTD)After twenty years of researching developing and implementing a methodology for achieving stress-free productivity based upon
thousands of hours spent desk-side with
some of the best brightest and busiest people in the world I decided to write the manual for it Thatrsquos what Getting Things Done is
What are the five phases of mastering workflowIn order to get
any situation under control so
you can focus you will utilise these five
steps Whether yoursquore managing your kitchen
or your company you will need to collect and capture what has your attention clarify what if anything to do about it organise it according to what it means to you review and reflect upon it in relation to
Todayrsquos evolving CFO is often caught between the world of business set-up generating revenue managing employees and building strong company infrastructure When can things actually get done What can one do to boost productivity and master workflow World-renowned business coach David Allen has the answers
PRODUCTIvITy PRINCIPLES WITH
DAvID ALLEN
63
David Allen INTERVIEW
wwwthecfomecom
those are greatly subvertedHow does one maintain a fair balance between the time spent planning and actually getting things doneYou simply need to spend just the amount of time you need to to trust that what you are getting done is the right thing to be getting done in the moment It takes as long as it takes to get to that point Why would you do anything less
How can one apply your core productivity and workflow principles to todayrsquos technologically driven environmentThe principles and their techniques are system-independent Whether you have meaningful input from the Internet your smartphone or a conversation in the hall you must engage with it equally Technology has simply increased the flow of input and ease of distraction in your world
There is a lot of talk about how connected wersquove become and how connectivity is driving tremendous business growth Does connectivity actually come with its fair share of downsides
Connectivity is obviously a two-edged sword We can have intimate productive and creative interaction instantly with someone on the other side of the world and we can just as easily be distracted and seduced into those engagements when they may not be the best use of our attention and resources Donrsquot shoot the medium Itrsquos all simply bringing attention to your clarity of direction and priorities or lack thereof
Could you share a few quick tips with our readers to instantly boost productivityWrite everything down that has your attention Decide the very next actions required to get closure on all of them Any next actions that require less than two minutes do instantly Park reminders of everything else somewhere that yoursquoll see when you can do something about them
We are currently facing a massive information overload What are some basic principles you could suggest to mentally organise such large amounts of dataConstantly ask yourself Where am I going Whatrsquos important and rewarding to me Is this information
the whole and then engage your resources with intuitive trust
As a CFO how can you transfer efficient workflow management skills to your employees Itrsquos very difficult to legislate processes for individuals ndash you can really only hold them accountable for their results But if you are managing your own commitments and intersections with them with integrity and rigour it will automatically force your team to ldquostep up to the platerdquo in their own behaviours in order to meet your standards If you request their complete list of their company projects and they canrsquot produce it thatrsquos a sign theyrsquore not in control If they make a commitment to you that they havenrsquot kept thatrsquos data about their performance GTD is simply about good operational business practices
With so many planning and organising activities in your methodology is there a risk of losing spontaneity as a strategistThe reason for these best practices is to optimise freedom creativity and spontaneity Without them
ldquoBut if you are manag-ing your own com-mitments and intersec-tions with them with integrity and rigour it will automatical-ly force them to ldquostep up to the platerdquo in their own behaviours in order to meet your standardsrdquo
64 wwwthecfomecom
supporting that Park whatever you find potentially meaningful somewhere that is easy to access when needed
Being an entrepreneur is a non-stop job How do you ensure that you have an adequate work-life balance Pay attention to what has your attentionmdashwith regard to anything Your health relationships career finances etc Notice when something might be ldquooffrdquo and make good decisions about what you need to do to get it back ldquoonrdquo again
Does your work teach people to be efficient or effective In essence they are the same thing Effective choices are generated by efficiency on a higher level If you want to implement strategy most effectively it demands utilising your resources optimally which is efficiency
Does motivation actually improve quality of work or purely quantityDepends on the focus of the motivation You can be motivated to work harder and you can be motivated to work smarter
What is your favourite productivity mantra that
you implement in your day-to-day lifeUsing my own in-basket and note-taking devices to capture potentially meaningful and valuable ideas and soon afterwards clearing all of them out by deciding what to do about them if anything
Your books seminars and other work inspires many individuals and businesses Who is your personal inspiration or role model I have many about many different aspects of my life The only person though that I ultimately trust as my best guide is my higher self which I try to access as frequently and clearly as I can
Finally what advice would you give to current business owners and aspiring entrepreneurs looking to gain complete control of their life and businessCapture what has your attention clarify what you need to do about it to get it off your mind organise the inventory of all your commitments at all levels review and reflect on all of that regularly relax and trust your inner wisdom to engage with the most appropriate thing in the moment
ldquoIf you want to implement strategy most effectively it demands utilising your resources optimallyrdquo
David Allen INTERVIEW
APPSTECH TALK
wwwthecfomecom 65
mAxImISE BUSINESS lsquoON-THE-GOrsquo WITH THESE HANDy APPS
ipAd SpECIAL
SAMSUNG UNvEILS GALAxY NOTE EDGE
Network
AP
Display
OS
Camera
Video
Audio
Additional Features
GoogleMobile Services
Connectivity
Sensor
Memory
Dimension
Battery
The availability of service may differ by country All functionality features specifications and other product information provided in this document including but not limited to the benefits design pricing components performance availability and capabilities of the product are subject to change without notice or obligation
Samsung Galaxy Note Edge Product Specifications
25G (GSM GPRS EDGE) 850 900 1800 1900 MHz3G (HSPA + 42Mbps) 850 900 1900 2100 MHz4G (LTE Cat 4 15050Mbps) or 4G(LTE Cat 6 30050Mbps)May differ by country and carrier
27 GHz Quad-Core Processor
56 inch (1419mm) Quad HD+ Super AMOLED (2560 x 1440 + 160)
Android 44 (KitKat)
Rear Facing 16 Mega pixel Auto Focus camera with Smart OISFront Facing 37 Mega pixel camera with f19Rear Facing Camera HDR (Rich tone) Selective Focus Rear-cam Selfie Beauty face Virtual Tour Shot ShotampMore Dual CameraFront Facing Camera Selfie Wide Selfie
Codec H264 MPEG-4 H263 VC-1 WMV7 WMV8 Sorenson Spark MP43 VP8 Recording amp Playback up to UHD
Codec MP3 AACAAC+eAAC+ WMA AMR-NBWB Vorbis FLAC()() Ultra High Quality Audio (~192KHz 24 bit) support
Multi WindowUltra Power Saving ModeVoice Recorder (Normal Mode Interview Mode Meeting Mode Voice Memo)Download BoosterS Health 35Dynamic Lock ScreenBriefingEdge screen UX Revolving Interaction Immersive apps(Camera Video S Note)Ticker board Express me Quick Tools Night Clock etc
Chrome Drive Photos Gmail Google Google+ Google Settings Hangouts Maps Play Books Play Games Play Newsstand Play Movie amp TV Play Music Play Store Voice Search YouTube
WiFi 80211 abgnac (HT80) MIMO PCIeGPS GLONASS BeidouNFC Bluetoothreg v 41 (BLE ANT+)IR LED (Remote Control) USB20 MHL 30
Gesture Accelerometer Geo-magnetic Gyroscope RGB IR-LEDProximity Barometer Hall Sensor Finger Scanner UV Heart Rate Monitoring SpO2 (Dependent on market)
32 64 GB Internal memory + microSD slot (up to 128GB)3GB RAM
1513 x 824 x 83mm 174g
Standard battery Li-ion 3000 mAh Fast Charging (Adaptive Fast Charging amp QC20)
wwwthecfomecom66
APPSTECH TALK
AIR DISPLAY
SQUARE REGISTER
Using this app you can connect your iPad to your computer and use it as an additional screen While working on an important presentation or sales proposal you can extend or mirror your computer screen on your iPad This app is compatible with both Mac and Windows computers Note that to use this feature you have to install Air Display on your iPad and a separate free app on your computer The computer and iPad also need to be on the same Wi-Fi network in order to work in-sync
For Mac users the app allows you to connect to up to four screens ndash all at the same time
Apart from the ability to convert your iPad into a wireless display whatrsquos also attractive about this app is that it allows you to control your computer wirelessly using your iPad
This fantastic application can serve as a mobile point of sale for your business It allows you to accept credit card payments ndash including Visa MasterCard Discover and American Express A transaction fee of 275 is charged for every time you swipe a card The sale amount is transferred to your account within two working days
Once you download the app you can sign up and register for a unique card reader solution called the lsquoSquare Readerrsquo (this is free) Square Reader encrypts all card details and ensures that the transaction is secure Once you receive your Square Reader you can connect it to your device and are all set
The application also offers added features such as transaction history connecting to a receipt printer creating employee logins and more
AED 3699
PRICE
Free
PRICE
wwwthecfomecom 67
APPSTECH TALK
DOCUSIGNHave you ever been in a situation where your employees need you to urgently sign a contract but arenrsquot able to physically reach you in time DocuSign solves this problem with its easy-to-use eSignature feature In three easy steps you can sign important documents and securely send them to your intended recipient
First you have to import the document to your device ndash this could be from Dropbox Google Drive or another select applications You then place your signature or any other important legal information you need to include such as initials Once you have finished working on the document send it back via e-mail
Whatrsquos particularly great about DocuSign is the great emphasis it puts on security ndash so that users donrsquot have to worry about getting into any legal trouble
Use DocuSign and never miss a deadline again
Free for basic version
PRICE
MPAYAn initiative by the Dubai eGovernment Department mPay is a simple application that allows you to make important payments Once yoursquove signed up and entered your payment details you are good to go You can pay your Dubai Electricity and Water Authority (DEWA) bills Etisalat utility bills Dubai Police fines Recharge SALIK and much more
A handy feature is its lsquoauto-rechargersquo option which you can use to set automatic payments
Free
PRICE
Opinion CIMAPERSONALITIES
wwwthecfomecom68
NEW HORIZONSBy geetu Ahuja Head of gCC at CIMA
The days of the traditional accountant working within a small community in a small town in a small market have long gone CFOs are now being referred to as Chief Frontier Officers as they travel from market to market overseeing their offices overseas This new expanded role has distinct advantages for both the company and the CFO who gain new skills and new insights from foreign branches a single hand at the helm of many markets provides business perspectives on a global scale and benchmarks across the board
On a personal level working abroad also has huge importance Robert Walters the specialist professional recruitment consultancy recently conducted a survey
of almost 2200 employees across a variety of professions exploring a number of topics which ranged from working practices and attitudes to careers The results highlighted some notable trends particularly for finance professionals
In career progression for example the survey showed that 50 of all accountants see working abroad as either lsquoessentialrsquo or lsquoextremely usefulrsquo to furthering their prospects more than banking professionals lawyers and IT workers ndash a strong indication of how accounting professionals are thinking about their future either within their existing company or with opportunities elsewhere
Accountants with globally recognised qualifications obviously have a greater chance of gaining some experience abroad and the lsquoGen Yrsquo professionals in particular seem ready to pack their bags In a CIMA study conducted in the UK last year over a third of those seeking employment in the
next two years will prioritise opportunities abroad over those in their home countries many of them enticed by the career incentives offered by the Middle East
How quickly can they land what seems to be their dream job What are the realities It may be that the move is simply from one branch to another and the only significant difference is a view from the window but for those expanding rather than changing their roles we have seen a very real need for a depth and breadth of knowledge never needed before
As geographical boundaries are pushed ever-wider a CFOrsquos responsibilities are pushed with them For many finance executives the understanding of their own patch of land is no longer enough they now have to be aware of foreign markets up to speed with foreign trends and au fait with foreign laws There is a need for a new commercial awareness in geography as well as philosophy
As geographical boundaries are pushed ever-wider a CFOrsquos responsibilities are pushed with them
John vargheseQampA
wwwthecfomecom 69
BUSINESSSET UP YOUR
IN THE UNITED ARAB EMIRATES
TO
WAREHOUSESOFFICES INDUSTRIAL LANDFLEXI
Quick and easy company set-up
Less than an hour drive from Dubai
Complete cost-effective packages including licences and facilities
100 foreign ownership
Zero income and corporate taxes
Eligibility for UAE Residence Visa
BUSINESS SET-UP SOLUTIONS STARTING FROM AED 15000 (USD 4000)
RAK FREE TRADE ZONE PROVIDES
RAK Free Trade Zone Authority - Government of Ras Al KhaimahUAE (Ras Al Khaimah) Tel +971 7 2041111 (Dubai) Tel +971 4 7041875 (Abu Dhabi) Tel +971 2 6994888
Germany (Cologne) - Turkey (Istanbul) - India (Mumbai)
Call +971 7 204 1111 Visit wwwrakftzcom Join rakftz
28 wwwthecfomecom
to the organisationrdquo he says Saeed first joined Emirates Transport after seeing a small newspaper advertisement for an accountantrsquos position He applied but initially they did not want to hire a local because locals were too expensive After a few months however they called him back for an interview and offered him a job
Initially Saeed struggled to get a promotion or even a raise He worked tirelessly to develop himself and kept detailed notes of his work After nearly two years went by with no promotion he requested to meet with the Chairman of the corporation to discuss his career The Chairman was a Minister making him even more senior than his title implied Al Sharid was courageous and determined ldquoYou should not stay silent you have to take initiative your future is in your handsrdquo says Al Sharid
ldquoI met with the Chairman and told him about my work and what I wanted to do He did not talk he just listened and that was it It was a 15-minute meetingrdquo says Al Sharid Three days after Al Sharidrsquos pivotal appointment he was promoted to Deputy General Manager Directly from a Trainee to DGM skipping all the roles in between at the age of 27 years old They doubled his salary and catapulted him into a senior leadership role
ldquoI felt it was quite strange to move up that fast and personally was not sure I could handle the job I had a lot of resistance from the board I had people in their 50s reporting to me and they were not happy about it So I just took a step back and did not try to get involved in their work too fast I went slow and watched my step This was a very important
ldquoThe UAE was a brand new country and a lot of work was being done to develop the nationrdquo
never had any idea of a career path and there was no such thing as career counsellors or lsquocareer servicesrsquo at the school So when you graduated most people just joined the Ministries The UAE was a brand new country and a lot of work was being done to develop the nation The Federal Government paid the highest and so one just joined them There was no grand vision or dream that I was off and chasing In those times you simply tried to do the next best thing So I ended up working in the Ministry of Health as an accountant Back then a university degree was a veritable qualification and it had a lot of market equity today it wonrsquot even get you in the doorrdquo
As the Middle East market evolves not only are university degrees becoming more common but so are post graduate degrees such as MBAs and even PhDs As such the competitive positioning of professional qualifications are gradually eroding over time
ldquoTo stay competitive executives today will require deep and specialised knowledge of their respective industries an intellectual arbitrage that provides superior results To beat the market to manage the risks to develop a sustained competitive edge For this executives need to stay in a role for the full strategic cycle which is at least four years in durationrdquo says Sharid In the case of Al Sharid he was there for 33 years
ldquoDo you just want a job or are you looking to make a contribution to your company Too many young people today are just looking for a title or a position The difference between those who make it into senior roles and stay there is the desire to create impact to add value
InterviewPERSONALITIES
2012year Moodyrsquos upgraded the UAE economy from developing to emerging
37The UAErsquos global rank for GDP
STAT FACTS
moment for me to gain valuable leadership experience early on To make my learning curve even steeper the General Manager quit after two years and I became the GM at the age of 29 years oldrdquo explains Al Sharid
He ascended to the top job in less than five years and stayed in the position for almost twenty years He was totally committed and could even be found in the bus yard at four in the morning to greet the drivers as they started their shifts ldquoThe key to being successful in business is to keep your finger on the details Some people let the details slip and if this happens you will suffer I get into the yard I meet the drivers I meet all the staff If you saw us you will not know who was the GM or who was the driver You have to realise people will never work for you they will only work with you To me Emirates Transport is like my familyrdquo says Al Sharid
When asked what his keys to success are he says ldquoI think if I was not an accountant I would not be a good leader I would not be a good manager In my opinion trying to do business while not understanding accounting is like getting into the ocean and not knowing how to swim you will drown The Chief Executive Officer who does not know how to create the financial statements is always at the mercy of his Chief Financial Officer He cannot take any big decision on his own and he will not even be able to challenge the CFO Accounting is the bedrock of any business and a critical skill set for any leader No one can argue with this factrdquo says Al Sharid
With over 20 years of experience in tow and the related chairmanships to boot Al Sharid
ldquoTrying to do business while not understanding accounting is like getting into the ocean and not knowing how to swim you will drownrdquo
has since early last year partnered with his family to form Al Sharid Auditing Though the Emirati youth is not as keen to pursue positions related to accountancy as Al Sharid was he feels that there is hope to close the gap
ldquoIt is difficult to find an Emirati expert I studied the audit market specifically and there were others like me then But now you break Emirati auditing involvement into three categories The first involves the big firms This is followed by individual smaller enterprises But thirdly a lot of locals opt to work with the government also Most are not managing their own firms they just have a partnership and they are building thatrdquo Al Sharid explains
ldquoAl Sharid Auditing however is a firm that includes my brother and our two sons which make up a body of qualified professional auditors We established this firm last year and work closely with the government We decided to make one firm together instead of having many smaller entitiesrdquo
Moving forward Al Sharid plans to grow his familyrsquos firm by applying the very belief system which has catapulted him to his position of power Marketing concerns which are designed to furthermore announce how tailored Al Sharidrsquos offerings are at present a key variable to forging ahead
Said Al Sharid ldquoMoving forward wersquore focusing more on the marketing of our firm Itrsquos a matter of not exactly expanding but going over the right deals The market is tough and the small jobs are easy but we donrsquot need them We donrsquot want to be in many rooms we want to be in the important onesrdquo
29wwwthecfomecom
InterviewPERSONALITIES
1UAErsquos rank among GCC nations for chosen hub of all major accountancy bodies
STAT FACTS
Latest insights from PwCrsquos 15th Annual Global CEO Survey revealed that 59 per cent of CEOs see emerging markets as more important than developed markets to their future What is making emerging markets such a pressing priority for C-suite executives Why are emerging markets increasingly grabbing headlines
Emerging markets are large fast-growing and ambitious markets best known for being the growth engines of todayrsquos global economy Research (1) suggests that emerging market countries are expected to amount for more than 60 per cent of global GDP growth ndash a clear indication of the wealth of opportunity they present
Understanding emerging marketsBased on estimates by the International Monetary Fund emerging economies are expected to grow two to three times faster in comparison to developed nations Explaining this fast-growth and the rise of these emerging markets an article on Forbescom details that ldquoduring the US housing crash and resulting credit crisis of 2008 world markets were saved from a total disaster thanks to the big emerging markets ndash mainly Brazil India and China The global credit crisis was one of the longest deepest and most painful in history It toppled Wall Street icons like Lehman
The following report explores emerging markets from West to East which are at the helm of economic development trade and innovation and highlights what their rising popularity means for the growth of your business
Brothers required government bailouts of bulge bracket banks and shocked the global economy with a deep economic recession and even a deeper crisis of confidence Its most important legacy though may be one that has yet to fully unfold the crisis revealed a new world order in terms of economic and market dynamics Emerging market economies finally arrived as
30
Market IntelligenceANALyTICS
wwwthecfomecom
ENTERING EmERGING mARKETS STRATEgIES RISKS ANd OppORTuNITIES
Projected annual GDP growth 2014 amp 2015
PANAMA
67
PERU
RANK42
55
Projected annual GDP growth 2014 amp 2015
Ease of Doing Business
RANK55Ease of Doing
Business
TOP TEN MARKETS
(1) Source here Accenture Research ldquogearing up for growth ndash five imperatives for success in emerging markets 2011 Henry Egan and Armen Ovanessoff
31
Market IntelligenceANALyTICS
wwwthecfomecom
LATVIA
CZECH REP
MALAYSIA
THAILAND
SOUTH KOREA
CHINA
RANK75
41
21
50
45
35
74
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
CHILE
RANK 34
43
Projected annual GDP growth 2014 amp 2015
Ease of Doing Business
RANK 24Ease of Doing
Business
Ease of Doing Business
RANK 6Ease of Doing
Business
RANK18Ease of Doing
Business
RANK 7Ease of Doing
Business
RANK 96Ease of Doing
Business
POLAND
32
RANK45Ease of Doing
Business
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
Source httpwwwbloombergcomnews2014-01-29qatar-china-top-ranking-of-frontier-and-emerging-marketshtml
powerful essential and permanent contributors to global economic growth and sustainabilityrdquo
Bloombergcom recently ranked the top emerging markets based on their performance on 19 economic financial political and social indicators In order of ranking the top ten markets were
CHINA
SOUTH KOREA
MALAYSIA
CHILE
THAILAND
PANAMA
PERU
LATVIA
POLAND
CZECH REP
1 6
2 7
3 84 9
5 10
Market IntelligenceANALyTICS
32 wwwthecfomecom
Making an entryIf your business is looking to enter any of these emerging markets itrsquos worth considering the following checklist
1 Assess your readiness The biggest mistake you can make is to enter a market without proper evaluation of your business Donrsquot do it just because everyone else is Like every other major business decision be sure to speak to your Board of Directors partners investors stakeholders and most importantly your CFO and certified accountants Make a business plan enlisting your objectives goals investment strategy potential risks etc
2 Research research research Do your homework Treat emerging markets as any other international expansion venture and do thorough research on the new market ndash Who are the competitorsWhat is the price point for your product What are the customer demographics What kind of infrastructure do you need for the manufacturing production or distribution of your product
3 Understand the legal framework Emerging markets might not have rules and regulations as clearly spelled out as your home country Invest some time and money in understanding how business procedures work A very obvious area of focus for UAE-based companies is tax Since the UAE is a tax-free economy companies arenrsquot exposed to tax accounting and other legislation surrounding
ndash failing to adapt to the needs and expectations of the local customers is surely a recipe for failure Time and again companies havenrsquot been able to create a customised offer and have had to exit these markets with huge losses A success story however is that of the Haier Group Haier famously introduced washing machines to specifically suit the water pressure levels in the households of India ndash an emerging market strategy that worked very well in their favour and helped them become leaders in that sector Another great example is that of Coca-Cola as explained in an online Reuters article by Matt Reilly ldquoIn Brazil Coca-Cola has used social media to better understand consumer preferences and has developed a successful local network to supply traditional Coca-Cola products as well as fruit juices tailored to local tastesrdquo
7 Local currency This is a complex yet critical area to consider when entering a new market Ask yourself questions such as ndash What is the local currency rate How does it compare to the currency in your home country Is the country import-led or export-led and what impact can this have on the global value of the currency Remember that fluctuations in currency rates can hugely effect your overall investment and thereby the return on investment
8 Build partnerships When entering an unknown territory it is quite useful to have the backing and support of peers who can help you in case of unforeseen challenges This is
this Another area to consider is corruption ndash emerging markets are notorious for high corruption red-tape and bureaucracy Speak to your company lawyer to assess these areas and take proper measures to avoid them before-hand
4 Invest in local talent Working with people already accustomed to the new market avoids the hassle of relocation and reduces costs But more significantly gives you skilled talent to work in these unique environments This also works in favour of your company as it gives you a clear understanding of the kind of compensation packages you will have to offer to your employees For instance employees based in China might want high remuneration and low healthcare benefits while in India it may be quite the reverse Recruiting local talent will also have a trickledown effect ndash your employees will easily be able to cater to the local customer needs without the need for intense training
5 Supply chain 44 per cent of business leaders surveyed consider accessing the right supply chain capabilities extremely or challenging in emerging markets according to Deloittersquos Globalisation Survey Make sure that you know who your suppliers will be what the production costs are whether their production procedures fit your time constraints and if the final product matches your level of quality
6 Cater to local market demands This is one of the most important aspects of all
Do your homework Treat emerg-ing markets as any other internation-al expansion venture
Market IntelligenceANALyTICS
33wwwthecfomecom
the very reason why Mergers and Acquisitions are a popular way to enter into emerging markets Many companies piggyback on their clients who are entering these markets For instance if you are an IT consultancy working on a major project for a manufacturing and trading company with operations across India and China you can use their resources and expertise to explore opportunities in these countries
Remember to consider these steps every time you enter a
new market as every locality has its own set of unique needs One strategy doesnrsquot fit all
Surviving fierce market conditionsWhile the massive opportunity that lies within emerging markets paints a pretty picture businesses need to be wary of bottlenecks such as corruption volatility gaps in laws and regulations and strong competition There have been several high-profile cases of multinational companies withdrawing from emerging
markets owing to immense corruption pressures
There is also a high percentage of inherent risks in these markets which amount to many companies not succeeding in their first attempts It is important to take your time when adapting to these markets and fully understand the business dynamics Following recent case studies and going over the lessons learnt by multinational companies who have made an entry into these markets consider the below
bull Is your companyrsquos head-office ndash and senior management ndash located in your home country without any C-level representation in the new emerging market
bull Are you focusing all of your resources on doing business in the emerging market at the cost of losing profits in your home market
bull Have you researched local competitors in these markets who may already have a strong standing and proven models of success
bull Are you using the same ldquoentry approachrdquo and business model across different emerging markets
If your answer to one or more of these questions is yes it may be time to re-evaluate your presence in these markets and map out a different strategy
Finally remember that no matter what the outcome of your admission to these markets might be your business is sure to emerge out of this stronger tougher and ndash of course ndash ready for a new challenge
of companies believed they had invested more resources in
emerging markets than was required
entered a market without fully assessing the ability of the supply chain to support the expansion
entered with the wrong pricing model and an inappropriate
operating model
CONSIDER THE RISKS
48
24
20
There is also a high percentage of inherent risks take your time when adapt-ing to these markets and fully understand the business dynamics
Source Emerging markets expansion and the supply chain Economist Intelligence unit survey conducted on behalf of EY September 2010
34
CIMA INTERVIEW
wwwthecfomecom
The Chartered Institute of Management Accountantsrsquo (CIMA) Managing Director Andrew Harding visited Dubai to host the Institutersquos seminar on global management accounting principles In the wake of CIMA revising their well heralded syllabus Harding discussed with CFO Magazine what the newest edition held how CIMA is applying a digital focus to its courses and just how CFOs can gain from it all
CURATING CURRICULUm
35
CIMAINTERVIEW
wwwthecfomecom
can give CFOs something they can take and something they can measure their own management accounting services against They can benchmark using this and they can utilise this to see their progress
Part of that is having professional management accountant in place I donrsquot think the landscape matters I believe that there is a common business need wherever you may be around the globe
All of the emerging markets need these skills The first aspect that accounting schools teach is about auditing skills because theyrsquore interested in protecting investments Then they teach you how to keep your business sustainable and to have a sustainable business you need to have a management accountant in place So itrsquos not just here in the UAE where we see these demands we see the same demands in China Indonesia and other powerhouse economies We see their skills shortages and we see the need for solutions in those areas
Talk to me about how this new syllabus works to promote the evolution of a CFOThis syllabus that wersquove
Can you expound on just what can be found within the new CIMA syllabusWe just revised the syllabus we do that every four to five years What we have done this year is a very significant revision It is based from a complex study that we have carried out to over 3000 people from 200 companies globally It is the very first revision since the joint venture with CIMA and AICPA So this has allowed us to attain a syllabus rich with all the data from all the continents in the world For the first time wersquove had real involvement from companies in the USA in this project
Why is the collaboration between AICPA and CIMA significantMost important is the Chartered Global Management Accountant (CGMA) designation that AICPA and CIMA both issue for qualified management accountants Wersquoll have a common curriculum and common examination which will begin on January 1 which gives us a global designation for management accountants wherever they are around the world There are plenty of accounting bodies who claim to be global but actually this is the only
genuinely global designation This is because it has the only one with a North American participation in it So we can say that the CGMA will be just as well-recognised in the USA as it is in Dubai
With the global landscape in mind how do you create an even objective that applies to localities which may prove widely differentialThe landscapes are different but businesses have common needs wherever they may be What wersquove particularly seen since the global financial crisis is that companies are actively looking to build management accountant capability to build that capacity within their organisations They donrsquot want to have a poor quality of information that lacks insight being used in their businesses So they see management accountants can bring solutions to that As a result of all the work wersquove done with companies who participated in the syllabus wersquove also put together a series of what we call Global Accounting Principles This is a series of principles which describes what good management accounting looks like and what top quality management accounting in a company should be producing This then
ldquoCompanies are actively looking to build man-agement accountant capability to build that capacity within their organisa-tionsrdquo
36 wwwthecfomecom
worked on acknowledges the skill set needed by professionals throughout their career Therersquos a base level of competence that is needed but beyond that there is more There is business acumen the ability to communicate and influence and finally the ability to lead So you start off enhancing your raw technical accounting skills Then you need to place that into the context of the business that you are in Then as you move forward and as you rise to become the CFO yoursquoll need the others You have to learn how to present your work in a way that can influence and make an impact in the business The final piece is the ability to lead projects and other functions and to a great extent lead the board of directors Thatrsquos how the context works itrsquos not just about technical knowledge
How do you find that CFOs in the GCC region are responding to this programmeThe CFO has a real challenge on his hands now In 1975 80 per cent of corporate value is showing on the balance sheet By 2010 that dropped to less than 20 per cent Your traditional PampL reports no longer reflect the value of the business or how the business drives value
All things that should be of interest to investors is missing With things like the integrated report initiative wersquore starting to see the other dimensions that add value to business For CFOs thatrsquos all about strategic thinking and considering the long-term objectives Being articulate in implementing those strategies keeping in mind the risks and opportunities that the business faces We are also nowadays witnessing a whole new world of transparency around that
Are there electronic aspects to CIMArsquos advancing approachThe interactive case study simulates a real working situation and it tests how they can apply their knowledge in real life situations Theyrsquoll be presented with a scenario a few weeks before they take the exam so they can prepare for it They then go to an exam centre where they are asked questions about how they will deal with a certain situation in the real world Theyrsquoll get an email from the CFO giving them a certain task for a particular period of time We want to make it as close to reality as possible so students taking the exam will be assessing situations based on real life scenarios
ldquoThe CFO has a real challenge on his hands now as traditional PampL reports no longer reflect the value of the businessand [the role] must focus on strategic thinking and considering long-term objectivesrdquo
218KCIMA members worldwide
STAT FACTS
CIMA INTERVIEW
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
38
ERPANALyTICS
wwwthecfomecom
Faster more nuanced IT solutions are available to the modern day CFO Whilst Chief Financial Officers are called upon to analyse data across a number of spectrums the digital tools on hand are likewise being expanded to aid in focusing more squarely on the bottom line
ExCELLING WITH ERP
The global landscape is today firmly entrenched within a digital model As a result CFOs whom are called upon to take a larger role in a number of variables must also increase their abilities with respect to utilising the many upsides which tech innovations offer a business When surveyed about their most pressing concerns CFOs generally return a varying collection of responses Revenue growth regulatory changes and meeting quarterly goals are among the chief concerns Virtually every obstacle can be hurdled by way of maintaining the order of financial reporting and data which has long been
synonymous with the Chief Financial Officerrsquos remit A widening berth of ERP solutions is making this data all the easier to come by
Despite how sophisticated the market is today it was not long ago that ERP departments once spent days processing business reports
Said Rohan Tejura Assistant Vice President Focus Softnet ldquoTraditional ERP systems were solely data repositories Moreover these repositories werenrsquot real time and were incredibly dependent upon locational connectivity With the emergence of smarter development platforms more versatile devices and
39
ERPANALyTICS
wwwthecfomecom
more intuitive designs of system development the overall experience of the ERP now extends from data warehousing to reporting analysis trend mapping business intelligence and governance oriented capabilities Yet these solutions amazingly execute all of these deliverables via portable handheld devices and through cloud environmentsrdquo
New generation ERP systems must now be on the go whilst including up to the minute analytics to provide deeper insight into the business ERP Analytics tools use historical data captured from various business functions to provide valuable information for efficiency and business performance each incredibly priceless to a leading CFO
Finesse is an ERP provider which is continually addressing the transformation of output which the ERP industry is offering the equally transitioning role of CFO
ldquoWe provide end-to-end business management solutions to SMEs and Enterprises Our approach to ERP is much more than providing simply an operational management systemrdquo said Finesse COO Sunil Paul
ldquoWe believe that todayrsquos businesses need much more than integrating sales with inventory accounting and manufacturing but also to have seamless integration with all their sales channels including the point of sales ecommerce and inbound sales solutionsrdquo
A major im-petus of the ERP-cen-tered growth is based on how effec-tive com-prehensive real-time data proves to be for the CFO
40 wwwthecfomecom
before thereby creating new global benchmarks for overall economic growth
Microsoft Arabia CFO Sadrul Khan offered insight into just how far the knowledge economy has influenced regional financial leadership by explaining how one of the most prioritised technologies by CFOs in the region is social platform monitoring
ldquoOne of the five technology choices that CFOs tend to prioritise in boosting productivity efficiencies and faster decision making in the fast paced business environment which include a social platform that monitors trends customer sentiments and helps process mashable data for customer centricity and business growthrdquo said Khan
A major impetus of the ERP-centered growth is based on how effective comprehensive real-time data proves to be for the CFO Whether employed as on-premise ERP software-as-a-service or cloud-based solutions a nearly identical ethos is being utilised Allowing the CFO to quickly access the performance of all facets of a business is paying dividends in the boardroom a reality which is showing itself increasingly in the Middle East
The technologically-charged relationship between ERP solutions and the regionrsquos CFOs is expanding and as a result has catalysed what many see as GCC economic performance outstripping that of many economies outside of the region as a result
In order to compete in todayrsquos fiercely competitive environment organisations need to think both innovatively and out of the box They require more insights about their business and their customers and need to ensure that they are able to meet the expectations of their internal as well as external stakeholders Enormous amounts of data both structured and unstructured is continuously being generated within the internal and external systems of the organisation which if analysed can be of immense value both to the business and subsequently the stakeholders associated with the organisation
With the the era of CFOs labouring over spreadsheets now in the past given how many business frontiers have become so dependent on mobile options such as the cloud more and more tech companies are providing the regionrsquos CFOs with information technology that converts traditional internal and external data into rich visual insights This information is then used for faster decision making and provides the ability for a CFO to assess manage and control risks Regional CFOs have grown enabled to drive corporate strategy accordingly demonstrating how the knowledge economy is now in full force amongst the Gulfrsquos corporates
Given that advanced IT has now become a regular CFO tool the regionrsquos CFOs are subsequently making faster decisions and driving internal growth models with greater speed and agility than ever
Tech companies are providing the regionrsquos CFOs with information technology that converts traditional internal and external data into rich visual insights
ERPANALyTICS
Donrsquot discoveritrsquos counterfeittoner afteritrsquos too lateOriginal HP Toner works first time every time1 unlike cheap toners which fail over half of the people who try it2 Non-HP toner can compromise your printerrsquos performance to give you streaked blotchy or faded prints Only original HP Toner cartridges deliver unmatched quality for the most professional-looking prints 100 of the time1
1 A QualityLogic 2010 study commissioned by HP comparing original HP LaserJet Monochrome print cartridges with nine brands of non-HP toner cartridges available in Europe Middle East and Africa for the HP LaserJet P1505 and P4015 printers HP 36A and 64A For details see wwwqualitylogiccomEMEAmonotonertestpdf 2 From a 2012 EMEA Lyra Research study commissioned by HP Results based on a total of 1050 HP Color LaserJet users who have used both original HP and non-HP toner cartridges of whom 552 experienced problems with non-HP cartridges
copy 2014 Hewlett-Packard Development Company LP
42
Private Equity ANALyTICS
wwwthecfomecom
The rise of PE-backed acquisitions is forcing CFOs to develop an entirely new set of skills
THE PRIvATE EQUITy CFO
The CFOrsquos utility in the world of private equity is without question on the rise The once-held belief of the CFO existing solely as the ldquoaccounting guyrdquo has been abandoned Over the last 20 years the role of CFO has become more demanding - requiring not just finance and accounting acumen but also a financial literacy in corporate planning risk management MampA assetliability management and regulation This evolution has been driven by a number of
key factors Yet the private equity industry which is now reshaping the corporate landscape through active ownership is by far the most significant factor driving change within the role of the CFO
PE-backed buyers today represent a larger percentage of overall buyers in the corporate acquisition marketplace than ever before Data provider Prequin estimates that as of June 2014 the capital raised by PE funds that
has not yet been deployed amounts to $114 trillion globally The result of this ldquodry powderrdquo is that a vast quantity of corporate acquisitions in the coming years will be undertaken by the private equity industry As such CFOs will be more accountable to demanding ldquosmart moneyrdquo shareholders than at any point in recent history Budgeting accounting and financial reporting will no longer exist as sole priorities but as a core competency among a
ldquoBy effec-tively using real-time data CFOs can create a dynamic process that proac-tively drives performance account-ability and value crea-tionrdquo
By Aaron Heidari
43
Private Equity ANALyTICS
wwwthecfomecom
robust set of complimentary and required skills Most of all the bar for CFOs is rising as PE investors will only accept above-average performance from their management teams
CFOs were once more reactive in function setting budgets based on other executivesrsquo plans and managing the flow of reporting to shareholders on a quarterly and yearly basis Today CFOs are required to become proactive managers of their respective businesses alongside their C-suite compatriots using a granular data-driven approach to aggregate analyse implement and report on every aspect of a companyrsquos operations
An important tool to drive this value creation process are KPIs Yet KPI structures including both aggregation and output are generally not up to the standards required of private equity investors prior to an investment being made
ldquoThe benefits of using KPIs and monthly reporting packages are significant By effectively using real-time data that is actionable and by partnering with functional area leaders within the organisation company CFOs can create a dynamic process that proactively drives performance accountability and value creationrdquo said Amanda Robinson Vice President of Accordion International in Dubai a consulting firm which is comprised of former private equity and investment banking professionals who
MENA region Cumulative Funds Under Management Since 2008
Source Zawya private Equity Monitor
19 636 20 36321 586
22 64323 506 24 250
-
5000
10000
15000
20000
25000
2008 2009 2010 2011 2012 2013
Cu
mu
lati
ve f
un
ds
($ m
)
$15mAverage MENA PE investment size in lsquo13
50Percentage of investment in IT and energy sectors
STAT FACTS
44 wwwthecfomecom
work with companies to deliver cost-effective project execution services
Active shareholders whose money it is being spent will typically require a data-driven justification before approving any budgets capital expenditures or new acquisitions Furthermore in many private equity backed companies the use of debt and the matching of shorter-term bank financing with longer-term investments will only be considered after a robust analysis is conducted to understand the companyrsquos ability to service that debt in the future This evaluation is not simply to identify revenues expenses and profits Itrsquos about drilling down into every transaction and rooting out data processing and reporting At least that is the expectation
The most valuable CFOs are those who have the ability not just to scrutinise and understand the financials but all also possess a wider grasp of the underlying data which truly comprise the business As an investor who has just acquired a stake in a new business I want a CFO who can manage the transition and stay ahead of my expectations Most of all a CFO should impress upon the companyrsquos shareholders a new way of doing business The first 100 days of an acquisition are said to be the most important During this period the CFOrsquos worth will be established when the new financial plan is due and the platform for the next five years of growth is presented
A CFO should man-age the tran-sition stay ahead of expectations and impress upon the companyrsquos shareholders a new way of doing business
Investment Volume By Sector Since 2006
Investment Volume By Sector in 2013
Source Zawya private Equity Monitor
1
3
30
17
3
28
3
4
6
4
6
5
17
9
9
6
9
5
8
6
6
2
3
10
Education
Education
Information Technology
Information Technology
Other
Other
Telecoms
Telecoms
Media
Media
Transport
Transport
Oil amp Gas
Oil amp Gas
Healthcare
Healthcare
Consumer goods
Consumer goods
Food amp Beverages
Food amp Beverages
Leisure
Leisure
Manufacturing
Manufacturing
ANALyTICS
Private Equity
2000857 NBAD ratibi mag ad 200x268 Finalindd 1 92514 1017 AM
46 wwwthecfomecom
THE FUTURE OFACCOUNTING EDUCATIONAddRESSINg THECOMpETENCY CRISIS
Have you ever stopped to think about how the accounting profession has changed since you graduated from college Recent graduates can answer this question by reflecting on the last two or three years whereas for other more seasoned professionals answering this question requires a bit more thought and memory searching Indeed we can all think of ways that the field of accounting is remarkably different today from the one we likely envisioned during our college daysmdashregardless of which decade we each donned our cap and gown This gradual transformation of the accounting profession leads to two important questions related to competencies bull Which competencies are important for success inaccounting todaybull Were these competencies consciously developed as partof your accounting degree programme
We suspect that more than a few of you would answer ldquonordquo to the second question Put another way our profession may be facingmdashmore so than at any time in the pastmdasha ldquocompetency crisisrdquo that is a gap between the competencies needed for professional success and those taught in our college classrooms today We propose a three-pronged strategy or ldquogame planrdquo for overcoming this competency crisis and in turn better preparing accounting graduates for the challenging world they will face First all of us accountants need to understand the changes that have already taken place in our profession and perhaps more importantly anticipate the changes that are on the horizon Second we need to educate ourselves and future generations of accountants so that as a collective group we can deliver the expanding set of competencies demanded in todayrsquos dynamic organisational
contexts Third as professional organisations and as individuals we need to think beyond ourselves by asking How can I (or we) help the accounting profession address the competency crisis
A Shift Toward Integrated ThinkingMany articles and white papers have been written that describe in detail the changes that have occurred in our profession over the last few decades but for our purposes wersquod like to distill these changes down to one crucial idea How does the accounting function add value to an organisation Accountants have evolved from support-oriented personnel who hand off information to others who actually make decisions into business partners who ldquohave a seat at the tablerdquo with managers
By peter C Brewer James E Sorensen CpA CgMA and david E Stout
47wwwthecfomecom
1048576bull What regulatory risks mayaccompany the proposal
1048576bull What social and environmentalfactors will we face if for example the proposal requires investing in overseas operations
1048576bull What types of employeeresistance may arise if we implement the proposal and how will we overcome the root causes of any such resistance
1048576bull Can and how should we valuefuture options associated with the proposal such as expanding or contracting the investment over time as new information becomes available
1048576bull Should we use debt or equity tofund the proposal
In short accountants have evolved to become integrated thinkers who enable EPM by partnering with managers across the organisation to add value Yet as EPM has gradually become the centrepiece of our professionrsquos value proposition accounting education hasnrsquot done enough to embrace it To overcome this gap wersquod like to further suggest that the concepts of competency integration and EPM need to come ldquofront and centrerdquo as we move forward in educating the next generation of successful accounting practitioners
Accounting Education No Longer on the SidelinesRecently a task force consisting of members of IMAreg (Institute of Management Accountants) and members of the Management Accounting Section (MAS) of the American Accounting Association (AAA) addressed the competency issue How should accounting education change fundamentally to help close the competencies gap The efforts of the task force led to
cash flows and how to apply discounted cash flow (DCF) decision models such as net present value (NPV) is of foundationalmdashsome might say critical mdash importance But integrated thinkers draw on an understanding of organisational strategy coupled with a broader set of competencies (beyond what might be considered technical or foundational knowledge) when making these types of decisions For example they consider how behavioural issues may influence the capital investment decision-making process Perhaps the financial estimates contained in the NPV analysis are too optimistic because the manager who prepared the numbers has a vested interest in seeing the project approved Decision makers also need to consider issues such as leasing vs buying a capital asset and the corresponding impacts on the financial statements and ratios that are tracked by investors and lenders What nonfinancial factors are associated with the proposed investment Add in the tax consequences of capital investment decisions coupled with the need to maintain internal control over any new business processes tied to these decisions and the need to think in an integrated fashion across a variety of accounting competencies becomes apparent
Furthermore becoming a true business partner with managers across the organisation requires more than simply integrating various accounting competencies It also means thinking like a business manager or a chief executive officer (CEO) Returning to the capital budgeting example an integrated thinker will ask questions such as
across the organisation Together they formulate and plan strategies then participate in collaborative decision-making processes that execute those strategies in a manner that adds stakeholder value Said another way accountants have evolved to become enterprise performance managers This shift in our orientation from a support function to an enterprise performance management (EPM) role has enormous implications for defining the determinants of success within our profession the most important of which involves becoming collaborators and ldquointegrated thinkersrdquo Take for example a common but important business decision process capital investment analysis Certainly technical knowledge regarding how to estimate relevant after-tax
48 wwwthecfomecom
expanding capital budgeting discussions to include financial statement impacts tax consequences and internal control issues integrates topical coverage across the External Reporting and Analysis Taxation Compliance and Planning and Assurance and Internal Control competencies shown in Figure 1
Third accounting curricula can incorporate a broader set of management competencies For example evaluating capital investment proposals from the perspectives of change management (Leadership) social and environmental issues (Ethics and Social Responsibility) regulatory concerns (Governance Risk and Compliance) and capital structure (Additional Core Business Competencies) brings a CEOrsquos perspective to the decision-making process
Fourth accounting curricula should include foundational competencies such as proficiency with spreadsheets and written and oral communication In the context of capital budgeting this may include asking students to use Microsoft Excel to perform a sensitivity analysis and then to present their findings to the entire class
Working to Fix the ProblemAt this point although you may agree with us that therersquos a competency crisis within the accounting profession you may be wondering What does this have to do with me What can my organisation do to help address this so-called competency crisis The answer a lot Practice partners and academic partners can help the accounting profession overcome the competency crisis That said letrsquos take a closer look at the role of practice partners first
improvement) and accounting competencies (external reporting and analysis planning analysis and control taxation compliance and planning information systems assurance and internal control and professional values ethics and attitudes) Of critical importance to the framework is the assumption that the set of competencies contained in Figure 1 would be developed and integrated over time through a blend of formal education (including continuing education) training and job experience
What levels of integrationmdashon the road to developing integrated thinkers in accountingmdashare possible First accounting educators can integrate within a single accounting competency So referring back to our capital budgeting discussion teaching computational models such as NPV analysis coupled with a review of various behavioural issues associated with capital investment decisions would be an example of integrating within the Planning Analysis and Control competency listed in Figure 1
Second professors can integrate across accounting competencies For example
a recently published article that contains a proposed framework for accounting education reproduced here as Figure 1 The framework is general in the sense that itrsquos meant to apply to all accounting students not subgroups based on career specialisation such as tax assurance services corporate finance and the like Itrsquos based on the idea that accounting educators can better prepare students to deliver our professionrsquos EPM value proposition through integrated competency-oriented curricula (For more see ldquoFocusing Accounting Curricula on Studentsrsquo Long-Run Careers Recommendations for an Integrated Competency-Based Framework for Accounting Educationrdquo in the May 2014 edition of Issues in Accounting Education)
A glance at Figure 1 reveals three levels of competencies foundational competencies (communication ability to leverage technology and analytical thinking and problem solving among others) broad management competencies (including leadership ethics and social responsibility and process management and
Proposed Competencies-based Framework for Accounting Education
FOUNDATIONALCOMPETENCIES
ACCOUNTING COMPETENCIES
BROAD MANAGEMENT COMPETENCIES
leadership
ExternalReportingamp Analysis
PlanningAnalysis
amp Control
TaxationComplianceamp Planning
InformationSystems
Assuranceamp InternalControl
ProfessionalValues Ethics
amp Attitudes
Communication
Quantitative
Interpersonal
Technological
Analytical Thinking ampProblem Solving
Ethics amp SocialResponsibility
ProcessManagement ampImprovement
GovernanceRisk amp
Compliance
AdditionalCore BusinessCompetencies
Although you may agree with us that therersquos a competency crisis within the account-ing profes-sion you may bewondering What does this haveto do with me
A practice partner should be or become a CMAreg (Certified Management Accountant) maintain professional certification by completing required Continuing Professional Education (CPE) hours and regularly read the IMA publications Strategic Finance and Management Accounting Quarterly
In addition there are a number of excellent resources that deal with topics covered in this article and that IMA makes available to its members
Strategic Finance PowerPacks(wwwimanetorg SFPowerPacks) These are resources focused on contemporary topics similar to those discussed earlier Current offerings include Risk Management Strategic Planning IT Skills amp Software and Internal Controls Each PowerPack includes a combination of resources such as research studies articles and links to webinars
Statements on Management Accounting (SMAs)(wwwimanetorgresources and_publicationsresearch_ studies_resourcesstatements on_management_accounting aspx) SMAs represent monographs classified into one of the following six categories Leadership Strategies and Ethics Technology Enablement Strategic Cost Management Business Performance Management Finance Governance Risk and Compliance and the Practice of Management Accounting Multiple items are available within each category For example the Practice of Management Accounting category includes (among other items)
49wwwthecfomecom
the Definition of Management Accounting and Implementing Shared Service Centres
Research Studies (wwwimanetorgresources_and_publicationsResearch_Studies_and_ResourcesAll_reportsaspx) The ldquoThoughtLeadershiprdquo section of IMArsquos website includes research covering a broad range of issues classified into seven categories For example under the ldquoGlobal Business Environmentrdquo category the following two research reports are available ldquoKey Differences Between IFRS and US GAAP Impact on Financial Reportingrdquo and ldquoCosting Methodologies and Cost Management Practices in the Peoplersquos Republic of Chinardquo
IMA Leadership Academy (www imanetorgprograms_events leadership_academyaspx) As described on the IMA website this programme is designed to assess a memberrsquos leadership status enhance that individualrsquos skills (principally through monthly webinars) and recognise leadership achievements These benefits are free to members
How You Can Make a Bigger Impact In addition to attending local regional and national IMA meetings consider inviting a small group of students to each chapter meeting This could be a wonderful (and relatively low-cost) option for mentoring aspiring accountants and finance professionals providing networking opportunities and introducing students to cutting-edge issues regarding the practice of management accounting Joining a university accounting
advisory group may be another way to influence the development of EPM in that institutionrsquos curriculum design
Other methods to enhance EPM in your organisation include (1) forming user groups within your company your local IMA chapter or your industry to review and share EPM experiences (2) encouraging advancement in the firm to be linked to EPM proficiency (3) focusing your companyrsquos recruiting efforts on candidates who display a background in andor understanding of EPM and (4) organising cross training within your company to enhance a mutual understanding of each otherrsquos respective roles
Finally visit the Competency CrisisTM website (http competencycrisisorg) set up by IMA to unite the accounting and finance constituencies professionals students employers academics and professorsmdashand explore competency issues through the lens of each stakeholder group The site is designed to ldquoencourage a discourse spur action and create a community dedicated to resolving the serious crisis of competency present in the professionrdquo Special sections of the website are devoted to educators students and employers professionals
Our Partners in Education Much like a practice partner an academic partner should be or become a CMA maintain professional accreditation by completing CPE hours and regularly read IMArsquos publications
Academic members of IMA can pursue and actively promote the CMA programme at their respective institutions
50 wwwthecfomecom
IMArsquos website contains helpful resources including an exam content overview content specification outlines for each of the two parts of the CMA exam and learning outcome statements The current exam covers some of the professional competencies represented in Figure 1 A summary of changes to exam content which will be effective in January 2015 is provided on the IMA website in News amp Media Relations which is located under ldquoAbout IMArdquo (See the press release dated March 24 2014) Other helpful resources include ldquoICMA Announces CMA Exam Content Changesrdquo in the April 2014 issue of Strategic Finance as well as ldquoManagement Accounting Career Readiness Shaping YOUR Curriculumrdquo
These forthcoming changes are based on the most recent IMA study of the knowledge and skills needed by management accountants from the view of CFOs controllers and other accountingfinance professionals from around the world
Also consider taking a group of your students to the IMA Student Leadership Conference held each November The Conference provides excellent networking opportunities for you your students and practicing professionals Students can learn firsthand from Conference presenters the challenges and opportunities facing finance and accounting professionals today
Moreover if your institution doesnrsquot currently have an IMA Student Chapter consider forming one One of the authors of this article David Stout reinstituted the student chapter at his school (Youngstown State University) after travelling with a group of his students to the IMA
Student Leadership Conference in Cleveland Ohio Through an IMA Student Chapter on campus students are able to work closely with a sponsoring local IMA chapter and bring to campus speakers who are experts in a wide range of topics including those discussed earlier in this article Each year student chapters compete for an Award of Excellence (AOE) and recognition as an Outstanding Student Chapter In addition IMA student members are able to engage in networking activities leadership training mentoring and community service programmesmdashall through their local chapter
You also might consider volunteering to serve as a Campus Advocate In this role yoursquoll represent IMA in all major matters of interest to your students (scholarship opportunities starting a student chapter mentoring and the like) and to your institution (for example leveraging IMA resources to advance the relevancy of the accounting curriculum use of educational case studies published in the IMA Educational Case Journal and access to IMArsquos ethics curriculum)
And if you havenrsquot yet done this ask IMA to endorse your accounting programme (information is available at www imanetorgeducator_resources indexaspx) This programme is designed to identify business curricula that meet the quality educational standards required to prepare students to earn the CMA designation Endorsement is based on an analysis of the curriculum and topics covered on the two-part CMA exam Currently 12 programmes have been endorsed
Finally if your school has an IMA Student Chapter consider participating in the annual IMA Student Case Competition where students are asked to propose a solution to a real world problem (Cases are solicited each year by Raef Lawson IMA VP of Research and Policy and IMA Professor in-Residence) Finalists make their presentations at IMArsquos Annual Conference amp Exposition before a set of judges consisting of accounting faculty members and practitioners Each year a new case is published in the August issue of Strategic Finance for students to use for that yearrsquos competition
Working TogetherIn this article we have summarised the changes that have affected the accounting profession and provided a competencies-based framework for guiding accounting educators in responding productively to those changes As a management accountant you know that implementing change in any organisation let alone within an entire profession never comes easily To be successful in overcoming our professionrsquos competency crisis IMArsquos practice and academic partners will need to assume leadership roles in defining enterprise performance management as the cornerstone of the accounting professionrsquos value proposition
This article was orginally published in the August 2014 issue of Strategic Finance It appears here with the permission of The Association of Accountants and financial professionals in Business
We need to educate ourselvesand future generations of account-ants so that as a collec-tive group we can deliver theexpanding set of com-petenciesdemanded in todayrsquos dynamicorgani-sational contexts
THE POWERFUL AND THRIFTY OFFICE ALL-ROUNDERS
The new ECOSYS M3560idn series will astound you With their print speeds of up to 60 pages per minute they are among the most productive A4 bw multifunctionals on the market We nevertheless managed to keep their ecological footprint and total cost of ownership impressively low by using our well-known ECOSYS technology and equipping the devices with our renowned long-life components The result Not only less waste and lower maintenance costs but also less hassle for you and all your colleagues You will also greatly appreciate the many customisation possibilities of the devices equipped with KYOCERArsquos open solution platform HyPAStrade as it allows you to tailor the device to your needs So yes we are proud of our new range of MFPs and can hardly wait to share their numerous benefits with you
For more information please contactKYOCERA Document Solutions Middle East | PB Box 500817 DubaiUAE | Tel +9714 4330 412 | Fax +9714 4231 944KYOCERA Document Solutions Europe BV - wwwkyoceradocumentsolutionseuKYOCERA Document Solutions Inc - wwwkyoceradocumentsolutionscom
52
ACCAINTERVIEW
wwwthecfomecom
GLOBAL By ASSOCIATION
across the region from our key employers and learning provider partners to our active and growing student and member base I want to understand their challenges and priorities and how ACCA can work with them to help support the economic success of the region
What can a CFO gain from working with ACCAThe ACCA qualification is about complete finance professionals For CFOs it brings the technical knowledge vital to business success complemented with the strategic management skills and ethical competence crucial to an organisationrsquos success As an organization ACCA in the UAE brings CFOs access to that local and global network of peers and expertise along with our leading research and insights that help them to keep up to date on the issues that matter most
Are there any initiatives in place to leverage the recently announced partnership with AAA
How are the ACCArsquos many years of activity being applied to the Middle EastACCA has now had a presence in the UAE for well over a decade During that time we have established strong relationships across the Middle East epitomised by the recent signing of our Strategic Partnership with AAA As a national body in choosing to partner with ACCA they recognised the local and global perspective we bring We are continuing to work with students members and employers across the Middle East to build their networks knowledge and business success through events research and insights and access to a growing number of online resources
Which initial priorities are among your key aims upon joining the organisationrsquos efforts in the UAEIn the first few months I hope to build on the success of the team in the UAE My priority will be to meet as many of our key stakeholders
The Association for Chartered Certified Accountants (ACCA) provides its services across a number of international borders The recent announcement of Lindsay Degouve de Nuncques as the new head of the Associationrsquos UAE chapter further exemplifies the ACCArsquos reach based on her previous work in the UK Nuncques shares here what she brings to the Middle East and just how globalisation has driven her ascent
53
ACCAINTERVIEW
wwwthecfomecom
The strategic partnership with AAA is the first of its kind in the region Students who complete the UAECA qualification will be entitled to both the AAA and ACCA designations and ACCA members in the UAE will also be eligible to apply for AAA membership This is a very exciting development in the market and together AAA and ACCA will be working to deliver maximum value to all our stakeholders from this partnership As we launch the UAECA qualification this activity will start in earnest
Which key industries will you be spotlighting in the Middle East in the months aheadOur experience of working across all sectors and levels of organisations globally gives ACCA a unique insight into all types of industries We will continue to be working with employers across the spectrum in the months ahead to help them gain the insight and make the connections that drive businesses to succeed at whatever they do
ldquoThe ACCA qualification is about complete finance professionals For CFOs it brings the technical knowledge vital to business success complemented with the strategic management skillsrdquo
54
Islamic FinanceMARKET OUTLOOK
wwwthecfomecom
In its 10th instalment the Forum is hosted in Dubai as a direct result of the UAErsquos increasing importance in the world of global Islamic finance
THE WORLD ISLAmIC ECONOmIC FORUm LANDS IN DUBAI
In Dubairsquos continued quest for leading the world across a range of spectrums the Emirate accelerated its desire to become the worldrsquos leading hub for Islamic finance by hosting the 10th installment of the World Islamic Economic Forum (WIEF) Delegates from dozens of countries attended to take part in a three-day event held at Madinat Jumeirah which rests alongside Dubairsquos gleaming coastline Held under the patronage of His Highness Sheikh Mohammed Bin Rashid Al Maktoum the
Vice President and Prime Minister of the UAE and Ruler of Dubai key speakers included The Honorary Dr Zeti Akhtar Aziz Governor of the Central Bank of Malaysia HE Kairat Kelimbetov Governor of the National Bank of Kazakhstan The Honorary Datorsquo Sri Mohd Najib Tun Abdul Razal Prime Minister of Malaysia and HE Xavier Bettel Prime Minister of the Grand Duchy of Luxembourg
Launched in 2006 in Malaysia WIEF has grown in tandem with the increased
Delegates from dozens of countries attended WIEF to take part in the three-day event
sophistication and reach of Islamic finance After a successful event in London in 2013 amidst increased interest in Islamic finance across Europe WIEF relocated to Dubai where the local business structure is keen to host halal finance
Said Hamad Buamim President and CEO Dubai Chamber of Commerce and Industry co-organisers of the event ldquo[The forum] is the start of a new chapter of cooperation between Dubai and the world as part of
55
Islamic FinanceMARKET OUTLOOK
wwwthecfomecom
Dubai Capital of Islamic Economy visionhellipestablishing a unified regulatory authority to provide the framework for standards across halal industries will significantly accelerate growth Likewise we need to see increased cooperation and partnership between the public and private sectors This is already happening with great success here in Dubairdquo
The order of global cooperation needed to facilitate growth across the Islamic finance world was more than apparent at WIEF based on how many differing nations were represented at the event The exhibitorrsquos hall was populated with a number of key Malaysian stands representative of the Southeast Asianrsquos ranking as the global leader in Islamic finance Also present were companies from Saudi Arabia also a key locality in the worldrsquos halal industries An interesting yet prescient presence was of attendees from South Korea a nation which is eager to participate in Islamic finance and will be hosting the WIEF Pyeongchang Roundtable in December 2014
ldquoGangwon is a province located in Korea which is very interested in new business opportunities Wersquove realised the strength of the Islamic economy and have come here with many different companies The first type is based in real estate investment We also have companies which want to export their products to the Islamic economy based on their halal qualities And Gangwon will also be hosting the Winter
ldquoKorea is very interested in the strength of the Islamic economy and wants to export its products based on their halal qualitiesrdquo
56 wwwthecfomecom
$247trillionProjected value of halal products industry in lsquo18
125Muslim percentage of global tourism expenditure
STAT FACTSOlympics in 2018 and are presently seeking investments for this as wellrdquo said Seong-hun Kim a member of Gangwon Province Governmentrsquos Export Support Team
Dubai proved to be an excellent place for the event considering how well the UAE is able to so regularly corral international cooperation A key sign of this was witnessed recently when Luxembourg now considered the third most important base for Islamic finance globally opened a finance office in Dubai International Finance Centre The European nation also opened a euro200 sukuk earlier this year which was quickly oversubscribed
The prime minister of Luxembourg offered the WIEF audience a riveting speech which detailed just how international the Forum has become whilst encouraging more of the world to support the growing influence of Islamic finance
Said Bettel ldquoWe need to innovate more economic partnerships for growth We sometimes need to reengineer relationships but also have to make sure these relationships remain sustainable Growth in one country also brings growth to others as long as this is guided by free market initiatives Free trade and free flow of capital combined with innovation leads to prosperity We have all gathered here in Dubai to explore the future of Islamic finance and Luxembourg is also a pioneer of Islamic finance in Europe The Islamic financial sector has a major role to play in continued global growthrdquo
The Islamic Corporation for the Development of the Private Sector (ICD) is based in the Kingdom of Saudi Arabia where it manages an international fund worth $2 billion half of which is available for subscription With shareholders in more than 50 countries and a sovereign sukuk fund recently launched in West Africa the ICDrsquos CEO Khaled M Al Aboodi attended WIEF this year excited to participate in the global event
How does the ICD approach its attendance at the World Islamic Economic ForumI think the Forum is one of the best places for discussing the financial issues of the OEC member countries It has been around for ten years and has grown to become a very important platform for discussion Wersquore here to attend and listen but also to network Itrsquos a great networking platform and a place to share views whilst letting everyone know what we have to offer
How has Islamic finance changed over the yearsOf course itrsquos growing in a large scale Some of it actually needs more support particularly with respect to regulatory frameworks Wersquore trying to partner with many international organisations like the IMF to try to provide support to countries to adapt regulation for Islamic finance Sukuk issuance is one of the biggest issues that needs to be addressed because there is a huge amount of liquidity in this arena Due to issues related to regulation sukuk issuance can be costly But with the regulation we are confident it will be on a level playing field with other forms of finance Compliance is a major area where more work can be done The Forum started with a roundtable on sukuk which shows how helpful WIEF has been over the years
What type of work does ICD do internationallyICD helped the government of Senegal to issue the first sovereign sukuk This was successfully issued last summer Progressing in this manner is something wersquod like to see continue across West Africa in order to utilise its resources with aiding development in the region in mind
QampA WITH KHALED M AL ABOODI CEO OF ICD
Islamic FinanceMARKET OUTLOOK
OFFICIAL SPONSORS
ENDORSED BY OFFICIAL HOST OFFICIAL
COMMUNICATIONS PARTNER
MEYDAN HOTEL DUBAI UAE19 - 20 NOVEMBER 2014
WOMENOMICSthe next emerging market
TAKE PART in making change happen UNITE with business and through leaders from across the globe
PARTICIPATE to the expansion of a modern and inclusive economy
58
Gautam PradhanINTERVIEW
wwwthecfomecom
SUCCESS BEyOND BOUNDARIES
in other management roles such as strategic decision making mentoring and leading efficiency and productivity across a range of other departments and functions as well as a being a catalyst in ensuring that the boardrsquos vision for the organisation is achieved
A significant percentage of NMDCrsquos shares are owned publicly Does the CFO play a role in balancing the interests of the shareholdersAs a CFO balancing the shareholdersrsquo interests is definitely part of my responsibility In order to achieve this goal there needs to be a careful evaluation of each decision while keeping the short-term and long-term goals of the company in mind At NMDC we actively implement a system where we utilise a balance scorecard as a method of ensuring that all our primary objectives are met yet at the same time continuously enhance our relationships with our shareholders
NMDC has completed various projects across the Emirates Are there plans to move abroadAs NMDC moves towards becoming an international player our strategic expansion plans are focused in areas within the GCC region and India In line with this strategy we opened
How has a company with such a unique set of deliverables grown so consistently over the yearsOur organisation strongly believes that the core to our strength is the people process and equipment A strategic decision led by our Board of Directors and the senior management has been implemented that required us to consistently invest in these three aspects to help expand our business beyond the territorial boundaries of the UAE and at the same time enhance what we can offer which is relevant to these segments We attribute our success to the efforts which every employee contributes We also strongly believe in the ldquoWe can make it happenrdquo principle The management raises the index of performance while setting SMART objectives within the organisation and encouraging the employees to achieve them
How has your position as the CFO changed over NMDCrsquos 35 years of operationAs the market evolves and business dynamics change my role as the CFO has become complex and more challenging A few years back I was mainly focused on bookkeeping accounting and other financial responsibilities such as arranging bank facilities But moving forward I became more involved
The UAE is progressively becoming a hub for world-class infrastructure The country has duly impressed the rest of the globe with noteworthy land developments showcased across the emirates Among the remarkable landscapes found in Abu Dhabi are the Corniche Beach Yas Island and Sir Baniyas Island Behind these successful projects is NMDC the dredging division of Abu Dhabi National Oil Company (ADNOC)
In an interview with CFO Magazine Gautam Pradhan Chief Financial Officer NMDC shares an exclusive look into the companyrsquos international blueprint for growth and his dynamic role as a strategic leader of one of the best in dredging and marine construction in the Middle East
59
Gautam PradhanINTERVIEW
wwwthecfomecom
branches in Qatar Bahrain Oman and India This has paid rich dividends recently as projects of strategic importance are bagged in Qatar and Bahrain Furthermore NMDC (UAE) has recently played a key role as a leader of an international consortium with Royal Boskalis Westminister (Netherlands) and Jan De Nul Group (Belgium) for the awarding of the Suez Canal Dredging project in Egypt Moving forward we have devised a strategic approach that will enable us to play a key role in the development of Indiarsquos marine infrastructure
What are the global strategies that are part of the CFOrsquos responsibilitiesAs CFO understanding the macro economic scenario risk analysis and mitigating those risks are all a part of my responsibilities I also have to have a proper comprehension
ldquoA few years back I was mainly focused on financial responsibilities moving forward I became more involved in strategic decision making mentoring and leading productivityrdquo
Gautam PradhanINTERVIEW
60 wwwthecfomecom
of the challenges faced by the company in terms of dealing with foreign contracts direct and indirect taxes and hedging and managing the integration process These are essential to enhance shareholders wealth and mitigate undue risk
How significant is accountancy for NMDC in its operations Why exactlyAccountancy is the lifeline of any company it does not only record the finances it also reflects the health of the organisation The MIS reports analysis trends and statistical information go a long way toward effectively providing
the diagnostic approach essential for the company
How have NMDCrsquos environmental activities helped the companyrsquos bottom lineNMDCrsquos work is well-synchronised with our environmental activities and specifically with nature Our activities are closely linked to sand and water and we view such activities with strategic importance Projects such as increasing water supply to mangroves and beach nourishment help us support the environmental activities while adding to our bottom line
ldquoAccountancy is the lifeline of any company it does not only record the finances it also reflects the health of the organisationrdquo
A burgeoning slice of Abu Dhabi coastline
The largest business awards
in the GCC30th November Dubai
nominate now at wwwstarsofbusinessawardscom
Stars of Business has become an iconic awards brand like no other in the region It recognizes the very best SMEs across 26 business categories Itrsquos universally respected as scientifically assessed and unimpeachably judged
327000 SMEs across the UAE$234 billion estimated total revenue of the SME sector4974 Awards entries in 20131856 Individual company applicants
Presenting Partner Strategic SME Partner Gold Sponsor Gold Sponsor VIP Hospitality Partner Supporting Partner
Trade Facilitator PartnerTrade Credit PartnerLogistics Partner
Institutional Partner Institutional Partner Event Partner
OrganiserPublisherMedia Partner Media PartnerPort Authority Partner
62
David Allen INTERVIEW
wwwthecfomecom
What went into completing your bestseller ndash Getting Things Done (GTD)After twenty years of researching developing and implementing a methodology for achieving stress-free productivity based upon
thousands of hours spent desk-side with
some of the best brightest and busiest people in the world I decided to write the manual for it Thatrsquos what Getting Things Done is
What are the five phases of mastering workflowIn order to get
any situation under control so
you can focus you will utilise these five
steps Whether yoursquore managing your kitchen
or your company you will need to collect and capture what has your attention clarify what if anything to do about it organise it according to what it means to you review and reflect upon it in relation to
Todayrsquos evolving CFO is often caught between the world of business set-up generating revenue managing employees and building strong company infrastructure When can things actually get done What can one do to boost productivity and master workflow World-renowned business coach David Allen has the answers
PRODUCTIvITy PRINCIPLES WITH
DAvID ALLEN
63
David Allen INTERVIEW
wwwthecfomecom
those are greatly subvertedHow does one maintain a fair balance between the time spent planning and actually getting things doneYou simply need to spend just the amount of time you need to to trust that what you are getting done is the right thing to be getting done in the moment It takes as long as it takes to get to that point Why would you do anything less
How can one apply your core productivity and workflow principles to todayrsquos technologically driven environmentThe principles and their techniques are system-independent Whether you have meaningful input from the Internet your smartphone or a conversation in the hall you must engage with it equally Technology has simply increased the flow of input and ease of distraction in your world
There is a lot of talk about how connected wersquove become and how connectivity is driving tremendous business growth Does connectivity actually come with its fair share of downsides
Connectivity is obviously a two-edged sword We can have intimate productive and creative interaction instantly with someone on the other side of the world and we can just as easily be distracted and seduced into those engagements when they may not be the best use of our attention and resources Donrsquot shoot the medium Itrsquos all simply bringing attention to your clarity of direction and priorities or lack thereof
Could you share a few quick tips with our readers to instantly boost productivityWrite everything down that has your attention Decide the very next actions required to get closure on all of them Any next actions that require less than two minutes do instantly Park reminders of everything else somewhere that yoursquoll see when you can do something about them
We are currently facing a massive information overload What are some basic principles you could suggest to mentally organise such large amounts of dataConstantly ask yourself Where am I going Whatrsquos important and rewarding to me Is this information
the whole and then engage your resources with intuitive trust
As a CFO how can you transfer efficient workflow management skills to your employees Itrsquos very difficult to legislate processes for individuals ndash you can really only hold them accountable for their results But if you are managing your own commitments and intersections with them with integrity and rigour it will automatically force your team to ldquostep up to the platerdquo in their own behaviours in order to meet your standards If you request their complete list of their company projects and they canrsquot produce it thatrsquos a sign theyrsquore not in control If they make a commitment to you that they havenrsquot kept thatrsquos data about their performance GTD is simply about good operational business practices
With so many planning and organising activities in your methodology is there a risk of losing spontaneity as a strategistThe reason for these best practices is to optimise freedom creativity and spontaneity Without them
ldquoBut if you are manag-ing your own com-mitments and intersec-tions with them with integrity and rigour it will automatical-ly force them to ldquostep up to the platerdquo in their own behaviours in order to meet your standardsrdquo
64 wwwthecfomecom
supporting that Park whatever you find potentially meaningful somewhere that is easy to access when needed
Being an entrepreneur is a non-stop job How do you ensure that you have an adequate work-life balance Pay attention to what has your attentionmdashwith regard to anything Your health relationships career finances etc Notice when something might be ldquooffrdquo and make good decisions about what you need to do to get it back ldquoonrdquo again
Does your work teach people to be efficient or effective In essence they are the same thing Effective choices are generated by efficiency on a higher level If you want to implement strategy most effectively it demands utilising your resources optimally which is efficiency
Does motivation actually improve quality of work or purely quantityDepends on the focus of the motivation You can be motivated to work harder and you can be motivated to work smarter
What is your favourite productivity mantra that
you implement in your day-to-day lifeUsing my own in-basket and note-taking devices to capture potentially meaningful and valuable ideas and soon afterwards clearing all of them out by deciding what to do about them if anything
Your books seminars and other work inspires many individuals and businesses Who is your personal inspiration or role model I have many about many different aspects of my life The only person though that I ultimately trust as my best guide is my higher self which I try to access as frequently and clearly as I can
Finally what advice would you give to current business owners and aspiring entrepreneurs looking to gain complete control of their life and businessCapture what has your attention clarify what you need to do about it to get it off your mind organise the inventory of all your commitments at all levels review and reflect on all of that regularly relax and trust your inner wisdom to engage with the most appropriate thing in the moment
ldquoIf you want to implement strategy most effectively it demands utilising your resources optimallyrdquo
David Allen INTERVIEW
APPSTECH TALK
wwwthecfomecom 65
mAxImISE BUSINESS lsquoON-THE-GOrsquo WITH THESE HANDy APPS
ipAd SpECIAL
SAMSUNG UNvEILS GALAxY NOTE EDGE
Network
AP
Display
OS
Camera
Video
Audio
Additional Features
GoogleMobile Services
Connectivity
Sensor
Memory
Dimension
Battery
The availability of service may differ by country All functionality features specifications and other product information provided in this document including but not limited to the benefits design pricing components performance availability and capabilities of the product are subject to change without notice or obligation
Samsung Galaxy Note Edge Product Specifications
25G (GSM GPRS EDGE) 850 900 1800 1900 MHz3G (HSPA + 42Mbps) 850 900 1900 2100 MHz4G (LTE Cat 4 15050Mbps) or 4G(LTE Cat 6 30050Mbps)May differ by country and carrier
27 GHz Quad-Core Processor
56 inch (1419mm) Quad HD+ Super AMOLED (2560 x 1440 + 160)
Android 44 (KitKat)
Rear Facing 16 Mega pixel Auto Focus camera with Smart OISFront Facing 37 Mega pixel camera with f19Rear Facing Camera HDR (Rich tone) Selective Focus Rear-cam Selfie Beauty face Virtual Tour Shot ShotampMore Dual CameraFront Facing Camera Selfie Wide Selfie
Codec H264 MPEG-4 H263 VC-1 WMV7 WMV8 Sorenson Spark MP43 VP8 Recording amp Playback up to UHD
Codec MP3 AACAAC+eAAC+ WMA AMR-NBWB Vorbis FLAC()() Ultra High Quality Audio (~192KHz 24 bit) support
Multi WindowUltra Power Saving ModeVoice Recorder (Normal Mode Interview Mode Meeting Mode Voice Memo)Download BoosterS Health 35Dynamic Lock ScreenBriefingEdge screen UX Revolving Interaction Immersive apps(Camera Video S Note)Ticker board Express me Quick Tools Night Clock etc
Chrome Drive Photos Gmail Google Google+ Google Settings Hangouts Maps Play Books Play Games Play Newsstand Play Movie amp TV Play Music Play Store Voice Search YouTube
WiFi 80211 abgnac (HT80) MIMO PCIeGPS GLONASS BeidouNFC Bluetoothreg v 41 (BLE ANT+)IR LED (Remote Control) USB20 MHL 30
Gesture Accelerometer Geo-magnetic Gyroscope RGB IR-LEDProximity Barometer Hall Sensor Finger Scanner UV Heart Rate Monitoring SpO2 (Dependent on market)
32 64 GB Internal memory + microSD slot (up to 128GB)3GB RAM
1513 x 824 x 83mm 174g
Standard battery Li-ion 3000 mAh Fast Charging (Adaptive Fast Charging amp QC20)
wwwthecfomecom66
APPSTECH TALK
AIR DISPLAY
SQUARE REGISTER
Using this app you can connect your iPad to your computer and use it as an additional screen While working on an important presentation or sales proposal you can extend or mirror your computer screen on your iPad This app is compatible with both Mac and Windows computers Note that to use this feature you have to install Air Display on your iPad and a separate free app on your computer The computer and iPad also need to be on the same Wi-Fi network in order to work in-sync
For Mac users the app allows you to connect to up to four screens ndash all at the same time
Apart from the ability to convert your iPad into a wireless display whatrsquos also attractive about this app is that it allows you to control your computer wirelessly using your iPad
This fantastic application can serve as a mobile point of sale for your business It allows you to accept credit card payments ndash including Visa MasterCard Discover and American Express A transaction fee of 275 is charged for every time you swipe a card The sale amount is transferred to your account within two working days
Once you download the app you can sign up and register for a unique card reader solution called the lsquoSquare Readerrsquo (this is free) Square Reader encrypts all card details and ensures that the transaction is secure Once you receive your Square Reader you can connect it to your device and are all set
The application also offers added features such as transaction history connecting to a receipt printer creating employee logins and more
AED 3699
PRICE
Free
PRICE
wwwthecfomecom 67
APPSTECH TALK
DOCUSIGNHave you ever been in a situation where your employees need you to urgently sign a contract but arenrsquot able to physically reach you in time DocuSign solves this problem with its easy-to-use eSignature feature In three easy steps you can sign important documents and securely send them to your intended recipient
First you have to import the document to your device ndash this could be from Dropbox Google Drive or another select applications You then place your signature or any other important legal information you need to include such as initials Once you have finished working on the document send it back via e-mail
Whatrsquos particularly great about DocuSign is the great emphasis it puts on security ndash so that users donrsquot have to worry about getting into any legal trouble
Use DocuSign and never miss a deadline again
Free for basic version
PRICE
MPAYAn initiative by the Dubai eGovernment Department mPay is a simple application that allows you to make important payments Once yoursquove signed up and entered your payment details you are good to go You can pay your Dubai Electricity and Water Authority (DEWA) bills Etisalat utility bills Dubai Police fines Recharge SALIK and much more
A handy feature is its lsquoauto-rechargersquo option which you can use to set automatic payments
Free
PRICE
Opinion CIMAPERSONALITIES
wwwthecfomecom68
NEW HORIZONSBy geetu Ahuja Head of gCC at CIMA
The days of the traditional accountant working within a small community in a small town in a small market have long gone CFOs are now being referred to as Chief Frontier Officers as they travel from market to market overseeing their offices overseas This new expanded role has distinct advantages for both the company and the CFO who gain new skills and new insights from foreign branches a single hand at the helm of many markets provides business perspectives on a global scale and benchmarks across the board
On a personal level working abroad also has huge importance Robert Walters the specialist professional recruitment consultancy recently conducted a survey
of almost 2200 employees across a variety of professions exploring a number of topics which ranged from working practices and attitudes to careers The results highlighted some notable trends particularly for finance professionals
In career progression for example the survey showed that 50 of all accountants see working abroad as either lsquoessentialrsquo or lsquoextremely usefulrsquo to furthering their prospects more than banking professionals lawyers and IT workers ndash a strong indication of how accounting professionals are thinking about their future either within their existing company or with opportunities elsewhere
Accountants with globally recognised qualifications obviously have a greater chance of gaining some experience abroad and the lsquoGen Yrsquo professionals in particular seem ready to pack their bags In a CIMA study conducted in the UK last year over a third of those seeking employment in the
next two years will prioritise opportunities abroad over those in their home countries many of them enticed by the career incentives offered by the Middle East
How quickly can they land what seems to be their dream job What are the realities It may be that the move is simply from one branch to another and the only significant difference is a view from the window but for those expanding rather than changing their roles we have seen a very real need for a depth and breadth of knowledge never needed before
As geographical boundaries are pushed ever-wider a CFOrsquos responsibilities are pushed with them For many finance executives the understanding of their own patch of land is no longer enough they now have to be aware of foreign markets up to speed with foreign trends and au fait with foreign laws There is a need for a new commercial awareness in geography as well as philosophy
As geographical boundaries are pushed ever-wider a CFOrsquos responsibilities are pushed with them
John vargheseQampA
wwwthecfomecom 69
BUSINESSSET UP YOUR
IN THE UNITED ARAB EMIRATES
TO
WAREHOUSESOFFICES INDUSTRIAL LANDFLEXI
Quick and easy company set-up
Less than an hour drive from Dubai
Complete cost-effective packages including licences and facilities
100 foreign ownership
Zero income and corporate taxes
Eligibility for UAE Residence Visa
BUSINESS SET-UP SOLUTIONS STARTING FROM AED 15000 (USD 4000)
RAK FREE TRADE ZONE PROVIDES
RAK Free Trade Zone Authority - Government of Ras Al KhaimahUAE (Ras Al Khaimah) Tel +971 7 2041111 (Dubai) Tel +971 4 7041875 (Abu Dhabi) Tel +971 2 6994888
Germany (Cologne) - Turkey (Istanbul) - India (Mumbai)
Call +971 7 204 1111 Visit wwwrakftzcom Join rakftz
moment for me to gain valuable leadership experience early on To make my learning curve even steeper the General Manager quit after two years and I became the GM at the age of 29 years oldrdquo explains Al Sharid
He ascended to the top job in less than five years and stayed in the position for almost twenty years He was totally committed and could even be found in the bus yard at four in the morning to greet the drivers as they started their shifts ldquoThe key to being successful in business is to keep your finger on the details Some people let the details slip and if this happens you will suffer I get into the yard I meet the drivers I meet all the staff If you saw us you will not know who was the GM or who was the driver You have to realise people will never work for you they will only work with you To me Emirates Transport is like my familyrdquo says Al Sharid
When asked what his keys to success are he says ldquoI think if I was not an accountant I would not be a good leader I would not be a good manager In my opinion trying to do business while not understanding accounting is like getting into the ocean and not knowing how to swim you will drown The Chief Executive Officer who does not know how to create the financial statements is always at the mercy of his Chief Financial Officer He cannot take any big decision on his own and he will not even be able to challenge the CFO Accounting is the bedrock of any business and a critical skill set for any leader No one can argue with this factrdquo says Al Sharid
With over 20 years of experience in tow and the related chairmanships to boot Al Sharid
ldquoTrying to do business while not understanding accounting is like getting into the ocean and not knowing how to swim you will drownrdquo
has since early last year partnered with his family to form Al Sharid Auditing Though the Emirati youth is not as keen to pursue positions related to accountancy as Al Sharid was he feels that there is hope to close the gap
ldquoIt is difficult to find an Emirati expert I studied the audit market specifically and there were others like me then But now you break Emirati auditing involvement into three categories The first involves the big firms This is followed by individual smaller enterprises But thirdly a lot of locals opt to work with the government also Most are not managing their own firms they just have a partnership and they are building thatrdquo Al Sharid explains
ldquoAl Sharid Auditing however is a firm that includes my brother and our two sons which make up a body of qualified professional auditors We established this firm last year and work closely with the government We decided to make one firm together instead of having many smaller entitiesrdquo
Moving forward Al Sharid plans to grow his familyrsquos firm by applying the very belief system which has catapulted him to his position of power Marketing concerns which are designed to furthermore announce how tailored Al Sharidrsquos offerings are at present a key variable to forging ahead
Said Al Sharid ldquoMoving forward wersquore focusing more on the marketing of our firm Itrsquos a matter of not exactly expanding but going over the right deals The market is tough and the small jobs are easy but we donrsquot need them We donrsquot want to be in many rooms we want to be in the important onesrdquo
29wwwthecfomecom
InterviewPERSONALITIES
1UAErsquos rank among GCC nations for chosen hub of all major accountancy bodies
STAT FACTS
Latest insights from PwCrsquos 15th Annual Global CEO Survey revealed that 59 per cent of CEOs see emerging markets as more important than developed markets to their future What is making emerging markets such a pressing priority for C-suite executives Why are emerging markets increasingly grabbing headlines
Emerging markets are large fast-growing and ambitious markets best known for being the growth engines of todayrsquos global economy Research (1) suggests that emerging market countries are expected to amount for more than 60 per cent of global GDP growth ndash a clear indication of the wealth of opportunity they present
Understanding emerging marketsBased on estimates by the International Monetary Fund emerging economies are expected to grow two to three times faster in comparison to developed nations Explaining this fast-growth and the rise of these emerging markets an article on Forbescom details that ldquoduring the US housing crash and resulting credit crisis of 2008 world markets were saved from a total disaster thanks to the big emerging markets ndash mainly Brazil India and China The global credit crisis was one of the longest deepest and most painful in history It toppled Wall Street icons like Lehman
The following report explores emerging markets from West to East which are at the helm of economic development trade and innovation and highlights what their rising popularity means for the growth of your business
Brothers required government bailouts of bulge bracket banks and shocked the global economy with a deep economic recession and even a deeper crisis of confidence Its most important legacy though may be one that has yet to fully unfold the crisis revealed a new world order in terms of economic and market dynamics Emerging market economies finally arrived as
30
Market IntelligenceANALyTICS
wwwthecfomecom
ENTERING EmERGING mARKETS STRATEgIES RISKS ANd OppORTuNITIES
Projected annual GDP growth 2014 amp 2015
PANAMA
67
PERU
RANK42
55
Projected annual GDP growth 2014 amp 2015
Ease of Doing Business
RANK55Ease of Doing
Business
TOP TEN MARKETS
(1) Source here Accenture Research ldquogearing up for growth ndash five imperatives for success in emerging markets 2011 Henry Egan and Armen Ovanessoff
31
Market IntelligenceANALyTICS
wwwthecfomecom
LATVIA
CZECH REP
MALAYSIA
THAILAND
SOUTH KOREA
CHINA
RANK75
41
21
50
45
35
74
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
CHILE
RANK 34
43
Projected annual GDP growth 2014 amp 2015
Ease of Doing Business
RANK 24Ease of Doing
Business
Ease of Doing Business
RANK 6Ease of Doing
Business
RANK18Ease of Doing
Business
RANK 7Ease of Doing
Business
RANK 96Ease of Doing
Business
POLAND
32
RANK45Ease of Doing
Business
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
Source httpwwwbloombergcomnews2014-01-29qatar-china-top-ranking-of-frontier-and-emerging-marketshtml
powerful essential and permanent contributors to global economic growth and sustainabilityrdquo
Bloombergcom recently ranked the top emerging markets based on their performance on 19 economic financial political and social indicators In order of ranking the top ten markets were
CHINA
SOUTH KOREA
MALAYSIA
CHILE
THAILAND
PANAMA
PERU
LATVIA
POLAND
CZECH REP
1 6
2 7
3 84 9
5 10
Market IntelligenceANALyTICS
32 wwwthecfomecom
Making an entryIf your business is looking to enter any of these emerging markets itrsquos worth considering the following checklist
1 Assess your readiness The biggest mistake you can make is to enter a market without proper evaluation of your business Donrsquot do it just because everyone else is Like every other major business decision be sure to speak to your Board of Directors partners investors stakeholders and most importantly your CFO and certified accountants Make a business plan enlisting your objectives goals investment strategy potential risks etc
2 Research research research Do your homework Treat emerging markets as any other international expansion venture and do thorough research on the new market ndash Who are the competitorsWhat is the price point for your product What are the customer demographics What kind of infrastructure do you need for the manufacturing production or distribution of your product
3 Understand the legal framework Emerging markets might not have rules and regulations as clearly spelled out as your home country Invest some time and money in understanding how business procedures work A very obvious area of focus for UAE-based companies is tax Since the UAE is a tax-free economy companies arenrsquot exposed to tax accounting and other legislation surrounding
ndash failing to adapt to the needs and expectations of the local customers is surely a recipe for failure Time and again companies havenrsquot been able to create a customised offer and have had to exit these markets with huge losses A success story however is that of the Haier Group Haier famously introduced washing machines to specifically suit the water pressure levels in the households of India ndash an emerging market strategy that worked very well in their favour and helped them become leaders in that sector Another great example is that of Coca-Cola as explained in an online Reuters article by Matt Reilly ldquoIn Brazil Coca-Cola has used social media to better understand consumer preferences and has developed a successful local network to supply traditional Coca-Cola products as well as fruit juices tailored to local tastesrdquo
7 Local currency This is a complex yet critical area to consider when entering a new market Ask yourself questions such as ndash What is the local currency rate How does it compare to the currency in your home country Is the country import-led or export-led and what impact can this have on the global value of the currency Remember that fluctuations in currency rates can hugely effect your overall investment and thereby the return on investment
8 Build partnerships When entering an unknown territory it is quite useful to have the backing and support of peers who can help you in case of unforeseen challenges This is
this Another area to consider is corruption ndash emerging markets are notorious for high corruption red-tape and bureaucracy Speak to your company lawyer to assess these areas and take proper measures to avoid them before-hand
4 Invest in local talent Working with people already accustomed to the new market avoids the hassle of relocation and reduces costs But more significantly gives you skilled talent to work in these unique environments This also works in favour of your company as it gives you a clear understanding of the kind of compensation packages you will have to offer to your employees For instance employees based in China might want high remuneration and low healthcare benefits while in India it may be quite the reverse Recruiting local talent will also have a trickledown effect ndash your employees will easily be able to cater to the local customer needs without the need for intense training
5 Supply chain 44 per cent of business leaders surveyed consider accessing the right supply chain capabilities extremely or challenging in emerging markets according to Deloittersquos Globalisation Survey Make sure that you know who your suppliers will be what the production costs are whether their production procedures fit your time constraints and if the final product matches your level of quality
6 Cater to local market demands This is one of the most important aspects of all
Do your homework Treat emerg-ing markets as any other internation-al expansion venture
Market IntelligenceANALyTICS
33wwwthecfomecom
the very reason why Mergers and Acquisitions are a popular way to enter into emerging markets Many companies piggyback on their clients who are entering these markets For instance if you are an IT consultancy working on a major project for a manufacturing and trading company with operations across India and China you can use their resources and expertise to explore opportunities in these countries
Remember to consider these steps every time you enter a
new market as every locality has its own set of unique needs One strategy doesnrsquot fit all
Surviving fierce market conditionsWhile the massive opportunity that lies within emerging markets paints a pretty picture businesses need to be wary of bottlenecks such as corruption volatility gaps in laws and regulations and strong competition There have been several high-profile cases of multinational companies withdrawing from emerging
markets owing to immense corruption pressures
There is also a high percentage of inherent risks in these markets which amount to many companies not succeeding in their first attempts It is important to take your time when adapting to these markets and fully understand the business dynamics Following recent case studies and going over the lessons learnt by multinational companies who have made an entry into these markets consider the below
bull Is your companyrsquos head-office ndash and senior management ndash located in your home country without any C-level representation in the new emerging market
bull Are you focusing all of your resources on doing business in the emerging market at the cost of losing profits in your home market
bull Have you researched local competitors in these markets who may already have a strong standing and proven models of success
bull Are you using the same ldquoentry approachrdquo and business model across different emerging markets
If your answer to one or more of these questions is yes it may be time to re-evaluate your presence in these markets and map out a different strategy
Finally remember that no matter what the outcome of your admission to these markets might be your business is sure to emerge out of this stronger tougher and ndash of course ndash ready for a new challenge
of companies believed they had invested more resources in
emerging markets than was required
entered a market without fully assessing the ability of the supply chain to support the expansion
entered with the wrong pricing model and an inappropriate
operating model
CONSIDER THE RISKS
48
24
20
There is also a high percentage of inherent risks take your time when adapt-ing to these markets and fully understand the business dynamics
Source Emerging markets expansion and the supply chain Economist Intelligence unit survey conducted on behalf of EY September 2010
34
CIMA INTERVIEW
wwwthecfomecom
The Chartered Institute of Management Accountantsrsquo (CIMA) Managing Director Andrew Harding visited Dubai to host the Institutersquos seminar on global management accounting principles In the wake of CIMA revising their well heralded syllabus Harding discussed with CFO Magazine what the newest edition held how CIMA is applying a digital focus to its courses and just how CFOs can gain from it all
CURATING CURRICULUm
35
CIMAINTERVIEW
wwwthecfomecom
can give CFOs something they can take and something they can measure their own management accounting services against They can benchmark using this and they can utilise this to see their progress
Part of that is having professional management accountant in place I donrsquot think the landscape matters I believe that there is a common business need wherever you may be around the globe
All of the emerging markets need these skills The first aspect that accounting schools teach is about auditing skills because theyrsquore interested in protecting investments Then they teach you how to keep your business sustainable and to have a sustainable business you need to have a management accountant in place So itrsquos not just here in the UAE where we see these demands we see the same demands in China Indonesia and other powerhouse economies We see their skills shortages and we see the need for solutions in those areas
Talk to me about how this new syllabus works to promote the evolution of a CFOThis syllabus that wersquove
Can you expound on just what can be found within the new CIMA syllabusWe just revised the syllabus we do that every four to five years What we have done this year is a very significant revision It is based from a complex study that we have carried out to over 3000 people from 200 companies globally It is the very first revision since the joint venture with CIMA and AICPA So this has allowed us to attain a syllabus rich with all the data from all the continents in the world For the first time wersquove had real involvement from companies in the USA in this project
Why is the collaboration between AICPA and CIMA significantMost important is the Chartered Global Management Accountant (CGMA) designation that AICPA and CIMA both issue for qualified management accountants Wersquoll have a common curriculum and common examination which will begin on January 1 which gives us a global designation for management accountants wherever they are around the world There are plenty of accounting bodies who claim to be global but actually this is the only
genuinely global designation This is because it has the only one with a North American participation in it So we can say that the CGMA will be just as well-recognised in the USA as it is in Dubai
With the global landscape in mind how do you create an even objective that applies to localities which may prove widely differentialThe landscapes are different but businesses have common needs wherever they may be What wersquove particularly seen since the global financial crisis is that companies are actively looking to build management accountant capability to build that capacity within their organisations They donrsquot want to have a poor quality of information that lacks insight being used in their businesses So they see management accountants can bring solutions to that As a result of all the work wersquove done with companies who participated in the syllabus wersquove also put together a series of what we call Global Accounting Principles This is a series of principles which describes what good management accounting looks like and what top quality management accounting in a company should be producing This then
ldquoCompanies are actively looking to build man-agement accountant capability to build that capacity within their organisa-tionsrdquo
36 wwwthecfomecom
worked on acknowledges the skill set needed by professionals throughout their career Therersquos a base level of competence that is needed but beyond that there is more There is business acumen the ability to communicate and influence and finally the ability to lead So you start off enhancing your raw technical accounting skills Then you need to place that into the context of the business that you are in Then as you move forward and as you rise to become the CFO yoursquoll need the others You have to learn how to present your work in a way that can influence and make an impact in the business The final piece is the ability to lead projects and other functions and to a great extent lead the board of directors Thatrsquos how the context works itrsquos not just about technical knowledge
How do you find that CFOs in the GCC region are responding to this programmeThe CFO has a real challenge on his hands now In 1975 80 per cent of corporate value is showing on the balance sheet By 2010 that dropped to less than 20 per cent Your traditional PampL reports no longer reflect the value of the business or how the business drives value
All things that should be of interest to investors is missing With things like the integrated report initiative wersquore starting to see the other dimensions that add value to business For CFOs thatrsquos all about strategic thinking and considering the long-term objectives Being articulate in implementing those strategies keeping in mind the risks and opportunities that the business faces We are also nowadays witnessing a whole new world of transparency around that
Are there electronic aspects to CIMArsquos advancing approachThe interactive case study simulates a real working situation and it tests how they can apply their knowledge in real life situations Theyrsquoll be presented with a scenario a few weeks before they take the exam so they can prepare for it They then go to an exam centre where they are asked questions about how they will deal with a certain situation in the real world Theyrsquoll get an email from the CFO giving them a certain task for a particular period of time We want to make it as close to reality as possible so students taking the exam will be assessing situations based on real life scenarios
ldquoThe CFO has a real challenge on his hands now as traditional PampL reports no longer reflect the value of the businessand [the role] must focus on strategic thinking and considering long-term objectivesrdquo
218KCIMA members worldwide
STAT FACTS
CIMA INTERVIEW
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
38
ERPANALyTICS
wwwthecfomecom
Faster more nuanced IT solutions are available to the modern day CFO Whilst Chief Financial Officers are called upon to analyse data across a number of spectrums the digital tools on hand are likewise being expanded to aid in focusing more squarely on the bottom line
ExCELLING WITH ERP
The global landscape is today firmly entrenched within a digital model As a result CFOs whom are called upon to take a larger role in a number of variables must also increase their abilities with respect to utilising the many upsides which tech innovations offer a business When surveyed about their most pressing concerns CFOs generally return a varying collection of responses Revenue growth regulatory changes and meeting quarterly goals are among the chief concerns Virtually every obstacle can be hurdled by way of maintaining the order of financial reporting and data which has long been
synonymous with the Chief Financial Officerrsquos remit A widening berth of ERP solutions is making this data all the easier to come by
Despite how sophisticated the market is today it was not long ago that ERP departments once spent days processing business reports
Said Rohan Tejura Assistant Vice President Focus Softnet ldquoTraditional ERP systems were solely data repositories Moreover these repositories werenrsquot real time and were incredibly dependent upon locational connectivity With the emergence of smarter development platforms more versatile devices and
39
ERPANALyTICS
wwwthecfomecom
more intuitive designs of system development the overall experience of the ERP now extends from data warehousing to reporting analysis trend mapping business intelligence and governance oriented capabilities Yet these solutions amazingly execute all of these deliverables via portable handheld devices and through cloud environmentsrdquo
New generation ERP systems must now be on the go whilst including up to the minute analytics to provide deeper insight into the business ERP Analytics tools use historical data captured from various business functions to provide valuable information for efficiency and business performance each incredibly priceless to a leading CFO
Finesse is an ERP provider which is continually addressing the transformation of output which the ERP industry is offering the equally transitioning role of CFO
ldquoWe provide end-to-end business management solutions to SMEs and Enterprises Our approach to ERP is much more than providing simply an operational management systemrdquo said Finesse COO Sunil Paul
ldquoWe believe that todayrsquos businesses need much more than integrating sales with inventory accounting and manufacturing but also to have seamless integration with all their sales channels including the point of sales ecommerce and inbound sales solutionsrdquo
A major im-petus of the ERP-cen-tered growth is based on how effec-tive com-prehensive real-time data proves to be for the CFO
40 wwwthecfomecom
before thereby creating new global benchmarks for overall economic growth
Microsoft Arabia CFO Sadrul Khan offered insight into just how far the knowledge economy has influenced regional financial leadership by explaining how one of the most prioritised technologies by CFOs in the region is social platform monitoring
ldquoOne of the five technology choices that CFOs tend to prioritise in boosting productivity efficiencies and faster decision making in the fast paced business environment which include a social platform that monitors trends customer sentiments and helps process mashable data for customer centricity and business growthrdquo said Khan
A major impetus of the ERP-centered growth is based on how effective comprehensive real-time data proves to be for the CFO Whether employed as on-premise ERP software-as-a-service or cloud-based solutions a nearly identical ethos is being utilised Allowing the CFO to quickly access the performance of all facets of a business is paying dividends in the boardroom a reality which is showing itself increasingly in the Middle East
The technologically-charged relationship between ERP solutions and the regionrsquos CFOs is expanding and as a result has catalysed what many see as GCC economic performance outstripping that of many economies outside of the region as a result
In order to compete in todayrsquos fiercely competitive environment organisations need to think both innovatively and out of the box They require more insights about their business and their customers and need to ensure that they are able to meet the expectations of their internal as well as external stakeholders Enormous amounts of data both structured and unstructured is continuously being generated within the internal and external systems of the organisation which if analysed can be of immense value both to the business and subsequently the stakeholders associated with the organisation
With the the era of CFOs labouring over spreadsheets now in the past given how many business frontiers have become so dependent on mobile options such as the cloud more and more tech companies are providing the regionrsquos CFOs with information technology that converts traditional internal and external data into rich visual insights This information is then used for faster decision making and provides the ability for a CFO to assess manage and control risks Regional CFOs have grown enabled to drive corporate strategy accordingly demonstrating how the knowledge economy is now in full force amongst the Gulfrsquos corporates
Given that advanced IT has now become a regular CFO tool the regionrsquos CFOs are subsequently making faster decisions and driving internal growth models with greater speed and agility than ever
Tech companies are providing the regionrsquos CFOs with information technology that converts traditional internal and external data into rich visual insights
ERPANALyTICS
Donrsquot discoveritrsquos counterfeittoner afteritrsquos too lateOriginal HP Toner works first time every time1 unlike cheap toners which fail over half of the people who try it2 Non-HP toner can compromise your printerrsquos performance to give you streaked blotchy or faded prints Only original HP Toner cartridges deliver unmatched quality for the most professional-looking prints 100 of the time1
1 A QualityLogic 2010 study commissioned by HP comparing original HP LaserJet Monochrome print cartridges with nine brands of non-HP toner cartridges available in Europe Middle East and Africa for the HP LaserJet P1505 and P4015 printers HP 36A and 64A For details see wwwqualitylogiccomEMEAmonotonertestpdf 2 From a 2012 EMEA Lyra Research study commissioned by HP Results based on a total of 1050 HP Color LaserJet users who have used both original HP and non-HP toner cartridges of whom 552 experienced problems with non-HP cartridges
copy 2014 Hewlett-Packard Development Company LP
42
Private Equity ANALyTICS
wwwthecfomecom
The rise of PE-backed acquisitions is forcing CFOs to develop an entirely new set of skills
THE PRIvATE EQUITy CFO
The CFOrsquos utility in the world of private equity is without question on the rise The once-held belief of the CFO existing solely as the ldquoaccounting guyrdquo has been abandoned Over the last 20 years the role of CFO has become more demanding - requiring not just finance and accounting acumen but also a financial literacy in corporate planning risk management MampA assetliability management and regulation This evolution has been driven by a number of
key factors Yet the private equity industry which is now reshaping the corporate landscape through active ownership is by far the most significant factor driving change within the role of the CFO
PE-backed buyers today represent a larger percentage of overall buyers in the corporate acquisition marketplace than ever before Data provider Prequin estimates that as of June 2014 the capital raised by PE funds that
has not yet been deployed amounts to $114 trillion globally The result of this ldquodry powderrdquo is that a vast quantity of corporate acquisitions in the coming years will be undertaken by the private equity industry As such CFOs will be more accountable to demanding ldquosmart moneyrdquo shareholders than at any point in recent history Budgeting accounting and financial reporting will no longer exist as sole priorities but as a core competency among a
ldquoBy effec-tively using real-time data CFOs can create a dynamic process that proac-tively drives performance account-ability and value crea-tionrdquo
By Aaron Heidari
43
Private Equity ANALyTICS
wwwthecfomecom
robust set of complimentary and required skills Most of all the bar for CFOs is rising as PE investors will only accept above-average performance from their management teams
CFOs were once more reactive in function setting budgets based on other executivesrsquo plans and managing the flow of reporting to shareholders on a quarterly and yearly basis Today CFOs are required to become proactive managers of their respective businesses alongside their C-suite compatriots using a granular data-driven approach to aggregate analyse implement and report on every aspect of a companyrsquos operations
An important tool to drive this value creation process are KPIs Yet KPI structures including both aggregation and output are generally not up to the standards required of private equity investors prior to an investment being made
ldquoThe benefits of using KPIs and monthly reporting packages are significant By effectively using real-time data that is actionable and by partnering with functional area leaders within the organisation company CFOs can create a dynamic process that proactively drives performance accountability and value creationrdquo said Amanda Robinson Vice President of Accordion International in Dubai a consulting firm which is comprised of former private equity and investment banking professionals who
MENA region Cumulative Funds Under Management Since 2008
Source Zawya private Equity Monitor
19 636 20 36321 586
22 64323 506 24 250
-
5000
10000
15000
20000
25000
2008 2009 2010 2011 2012 2013
Cu
mu
lati
ve f
un
ds
($ m
)
$15mAverage MENA PE investment size in lsquo13
50Percentage of investment in IT and energy sectors
STAT FACTS
44 wwwthecfomecom
work with companies to deliver cost-effective project execution services
Active shareholders whose money it is being spent will typically require a data-driven justification before approving any budgets capital expenditures or new acquisitions Furthermore in many private equity backed companies the use of debt and the matching of shorter-term bank financing with longer-term investments will only be considered after a robust analysis is conducted to understand the companyrsquos ability to service that debt in the future This evaluation is not simply to identify revenues expenses and profits Itrsquos about drilling down into every transaction and rooting out data processing and reporting At least that is the expectation
The most valuable CFOs are those who have the ability not just to scrutinise and understand the financials but all also possess a wider grasp of the underlying data which truly comprise the business As an investor who has just acquired a stake in a new business I want a CFO who can manage the transition and stay ahead of my expectations Most of all a CFO should impress upon the companyrsquos shareholders a new way of doing business The first 100 days of an acquisition are said to be the most important During this period the CFOrsquos worth will be established when the new financial plan is due and the platform for the next five years of growth is presented
A CFO should man-age the tran-sition stay ahead of expectations and impress upon the companyrsquos shareholders a new way of doing business
Investment Volume By Sector Since 2006
Investment Volume By Sector in 2013
Source Zawya private Equity Monitor
1
3
30
17
3
28
3
4
6
4
6
5
17
9
9
6
9
5
8
6
6
2
3
10
Education
Education
Information Technology
Information Technology
Other
Other
Telecoms
Telecoms
Media
Media
Transport
Transport
Oil amp Gas
Oil amp Gas
Healthcare
Healthcare
Consumer goods
Consumer goods
Food amp Beverages
Food amp Beverages
Leisure
Leisure
Manufacturing
Manufacturing
ANALyTICS
Private Equity
2000857 NBAD ratibi mag ad 200x268 Finalindd 1 92514 1017 AM
46 wwwthecfomecom
THE FUTURE OFACCOUNTING EDUCATIONAddRESSINg THECOMpETENCY CRISIS
Have you ever stopped to think about how the accounting profession has changed since you graduated from college Recent graduates can answer this question by reflecting on the last two or three years whereas for other more seasoned professionals answering this question requires a bit more thought and memory searching Indeed we can all think of ways that the field of accounting is remarkably different today from the one we likely envisioned during our college daysmdashregardless of which decade we each donned our cap and gown This gradual transformation of the accounting profession leads to two important questions related to competencies bull Which competencies are important for success inaccounting todaybull Were these competencies consciously developed as partof your accounting degree programme
We suspect that more than a few of you would answer ldquonordquo to the second question Put another way our profession may be facingmdashmore so than at any time in the pastmdasha ldquocompetency crisisrdquo that is a gap between the competencies needed for professional success and those taught in our college classrooms today We propose a three-pronged strategy or ldquogame planrdquo for overcoming this competency crisis and in turn better preparing accounting graduates for the challenging world they will face First all of us accountants need to understand the changes that have already taken place in our profession and perhaps more importantly anticipate the changes that are on the horizon Second we need to educate ourselves and future generations of accountants so that as a collective group we can deliver the expanding set of competencies demanded in todayrsquos dynamic organisational
contexts Third as professional organisations and as individuals we need to think beyond ourselves by asking How can I (or we) help the accounting profession address the competency crisis
A Shift Toward Integrated ThinkingMany articles and white papers have been written that describe in detail the changes that have occurred in our profession over the last few decades but for our purposes wersquod like to distill these changes down to one crucial idea How does the accounting function add value to an organisation Accountants have evolved from support-oriented personnel who hand off information to others who actually make decisions into business partners who ldquohave a seat at the tablerdquo with managers
By peter C Brewer James E Sorensen CpA CgMA and david E Stout
47wwwthecfomecom
1048576bull What regulatory risks mayaccompany the proposal
1048576bull What social and environmentalfactors will we face if for example the proposal requires investing in overseas operations
1048576bull What types of employeeresistance may arise if we implement the proposal and how will we overcome the root causes of any such resistance
1048576bull Can and how should we valuefuture options associated with the proposal such as expanding or contracting the investment over time as new information becomes available
1048576bull Should we use debt or equity tofund the proposal
In short accountants have evolved to become integrated thinkers who enable EPM by partnering with managers across the organisation to add value Yet as EPM has gradually become the centrepiece of our professionrsquos value proposition accounting education hasnrsquot done enough to embrace it To overcome this gap wersquod like to further suggest that the concepts of competency integration and EPM need to come ldquofront and centrerdquo as we move forward in educating the next generation of successful accounting practitioners
Accounting Education No Longer on the SidelinesRecently a task force consisting of members of IMAreg (Institute of Management Accountants) and members of the Management Accounting Section (MAS) of the American Accounting Association (AAA) addressed the competency issue How should accounting education change fundamentally to help close the competencies gap The efforts of the task force led to
cash flows and how to apply discounted cash flow (DCF) decision models such as net present value (NPV) is of foundationalmdashsome might say critical mdash importance But integrated thinkers draw on an understanding of organisational strategy coupled with a broader set of competencies (beyond what might be considered technical or foundational knowledge) when making these types of decisions For example they consider how behavioural issues may influence the capital investment decision-making process Perhaps the financial estimates contained in the NPV analysis are too optimistic because the manager who prepared the numbers has a vested interest in seeing the project approved Decision makers also need to consider issues such as leasing vs buying a capital asset and the corresponding impacts on the financial statements and ratios that are tracked by investors and lenders What nonfinancial factors are associated with the proposed investment Add in the tax consequences of capital investment decisions coupled with the need to maintain internal control over any new business processes tied to these decisions and the need to think in an integrated fashion across a variety of accounting competencies becomes apparent
Furthermore becoming a true business partner with managers across the organisation requires more than simply integrating various accounting competencies It also means thinking like a business manager or a chief executive officer (CEO) Returning to the capital budgeting example an integrated thinker will ask questions such as
across the organisation Together they formulate and plan strategies then participate in collaborative decision-making processes that execute those strategies in a manner that adds stakeholder value Said another way accountants have evolved to become enterprise performance managers This shift in our orientation from a support function to an enterprise performance management (EPM) role has enormous implications for defining the determinants of success within our profession the most important of which involves becoming collaborators and ldquointegrated thinkersrdquo Take for example a common but important business decision process capital investment analysis Certainly technical knowledge regarding how to estimate relevant after-tax
48 wwwthecfomecom
expanding capital budgeting discussions to include financial statement impacts tax consequences and internal control issues integrates topical coverage across the External Reporting and Analysis Taxation Compliance and Planning and Assurance and Internal Control competencies shown in Figure 1
Third accounting curricula can incorporate a broader set of management competencies For example evaluating capital investment proposals from the perspectives of change management (Leadership) social and environmental issues (Ethics and Social Responsibility) regulatory concerns (Governance Risk and Compliance) and capital structure (Additional Core Business Competencies) brings a CEOrsquos perspective to the decision-making process
Fourth accounting curricula should include foundational competencies such as proficiency with spreadsheets and written and oral communication In the context of capital budgeting this may include asking students to use Microsoft Excel to perform a sensitivity analysis and then to present their findings to the entire class
Working to Fix the ProblemAt this point although you may agree with us that therersquos a competency crisis within the accounting profession you may be wondering What does this have to do with me What can my organisation do to help address this so-called competency crisis The answer a lot Practice partners and academic partners can help the accounting profession overcome the competency crisis That said letrsquos take a closer look at the role of practice partners first
improvement) and accounting competencies (external reporting and analysis planning analysis and control taxation compliance and planning information systems assurance and internal control and professional values ethics and attitudes) Of critical importance to the framework is the assumption that the set of competencies contained in Figure 1 would be developed and integrated over time through a blend of formal education (including continuing education) training and job experience
What levels of integrationmdashon the road to developing integrated thinkers in accountingmdashare possible First accounting educators can integrate within a single accounting competency So referring back to our capital budgeting discussion teaching computational models such as NPV analysis coupled with a review of various behavioural issues associated with capital investment decisions would be an example of integrating within the Planning Analysis and Control competency listed in Figure 1
Second professors can integrate across accounting competencies For example
a recently published article that contains a proposed framework for accounting education reproduced here as Figure 1 The framework is general in the sense that itrsquos meant to apply to all accounting students not subgroups based on career specialisation such as tax assurance services corporate finance and the like Itrsquos based on the idea that accounting educators can better prepare students to deliver our professionrsquos EPM value proposition through integrated competency-oriented curricula (For more see ldquoFocusing Accounting Curricula on Studentsrsquo Long-Run Careers Recommendations for an Integrated Competency-Based Framework for Accounting Educationrdquo in the May 2014 edition of Issues in Accounting Education)
A glance at Figure 1 reveals three levels of competencies foundational competencies (communication ability to leverage technology and analytical thinking and problem solving among others) broad management competencies (including leadership ethics and social responsibility and process management and
Proposed Competencies-based Framework for Accounting Education
FOUNDATIONALCOMPETENCIES
ACCOUNTING COMPETENCIES
BROAD MANAGEMENT COMPETENCIES
leadership
ExternalReportingamp Analysis
PlanningAnalysis
amp Control
TaxationComplianceamp Planning
InformationSystems
Assuranceamp InternalControl
ProfessionalValues Ethics
amp Attitudes
Communication
Quantitative
Interpersonal
Technological
Analytical Thinking ampProblem Solving
Ethics amp SocialResponsibility
ProcessManagement ampImprovement
GovernanceRisk amp
Compliance
AdditionalCore BusinessCompetencies
Although you may agree with us that therersquos a competency crisis within the account-ing profes-sion you may bewondering What does this haveto do with me
A practice partner should be or become a CMAreg (Certified Management Accountant) maintain professional certification by completing required Continuing Professional Education (CPE) hours and regularly read the IMA publications Strategic Finance and Management Accounting Quarterly
In addition there are a number of excellent resources that deal with topics covered in this article and that IMA makes available to its members
Strategic Finance PowerPacks(wwwimanetorg SFPowerPacks) These are resources focused on contemporary topics similar to those discussed earlier Current offerings include Risk Management Strategic Planning IT Skills amp Software and Internal Controls Each PowerPack includes a combination of resources such as research studies articles and links to webinars
Statements on Management Accounting (SMAs)(wwwimanetorgresources and_publicationsresearch_ studies_resourcesstatements on_management_accounting aspx) SMAs represent monographs classified into one of the following six categories Leadership Strategies and Ethics Technology Enablement Strategic Cost Management Business Performance Management Finance Governance Risk and Compliance and the Practice of Management Accounting Multiple items are available within each category For example the Practice of Management Accounting category includes (among other items)
49wwwthecfomecom
the Definition of Management Accounting and Implementing Shared Service Centres
Research Studies (wwwimanetorgresources_and_publicationsResearch_Studies_and_ResourcesAll_reportsaspx) The ldquoThoughtLeadershiprdquo section of IMArsquos website includes research covering a broad range of issues classified into seven categories For example under the ldquoGlobal Business Environmentrdquo category the following two research reports are available ldquoKey Differences Between IFRS and US GAAP Impact on Financial Reportingrdquo and ldquoCosting Methodologies and Cost Management Practices in the Peoplersquos Republic of Chinardquo
IMA Leadership Academy (www imanetorgprograms_events leadership_academyaspx) As described on the IMA website this programme is designed to assess a memberrsquos leadership status enhance that individualrsquos skills (principally through monthly webinars) and recognise leadership achievements These benefits are free to members
How You Can Make a Bigger Impact In addition to attending local regional and national IMA meetings consider inviting a small group of students to each chapter meeting This could be a wonderful (and relatively low-cost) option for mentoring aspiring accountants and finance professionals providing networking opportunities and introducing students to cutting-edge issues regarding the practice of management accounting Joining a university accounting
advisory group may be another way to influence the development of EPM in that institutionrsquos curriculum design
Other methods to enhance EPM in your organisation include (1) forming user groups within your company your local IMA chapter or your industry to review and share EPM experiences (2) encouraging advancement in the firm to be linked to EPM proficiency (3) focusing your companyrsquos recruiting efforts on candidates who display a background in andor understanding of EPM and (4) organising cross training within your company to enhance a mutual understanding of each otherrsquos respective roles
Finally visit the Competency CrisisTM website (http competencycrisisorg) set up by IMA to unite the accounting and finance constituencies professionals students employers academics and professorsmdashand explore competency issues through the lens of each stakeholder group The site is designed to ldquoencourage a discourse spur action and create a community dedicated to resolving the serious crisis of competency present in the professionrdquo Special sections of the website are devoted to educators students and employers professionals
Our Partners in Education Much like a practice partner an academic partner should be or become a CMA maintain professional accreditation by completing CPE hours and regularly read IMArsquos publications
Academic members of IMA can pursue and actively promote the CMA programme at their respective institutions
50 wwwthecfomecom
IMArsquos website contains helpful resources including an exam content overview content specification outlines for each of the two parts of the CMA exam and learning outcome statements The current exam covers some of the professional competencies represented in Figure 1 A summary of changes to exam content which will be effective in January 2015 is provided on the IMA website in News amp Media Relations which is located under ldquoAbout IMArdquo (See the press release dated March 24 2014) Other helpful resources include ldquoICMA Announces CMA Exam Content Changesrdquo in the April 2014 issue of Strategic Finance as well as ldquoManagement Accounting Career Readiness Shaping YOUR Curriculumrdquo
These forthcoming changes are based on the most recent IMA study of the knowledge and skills needed by management accountants from the view of CFOs controllers and other accountingfinance professionals from around the world
Also consider taking a group of your students to the IMA Student Leadership Conference held each November The Conference provides excellent networking opportunities for you your students and practicing professionals Students can learn firsthand from Conference presenters the challenges and opportunities facing finance and accounting professionals today
Moreover if your institution doesnrsquot currently have an IMA Student Chapter consider forming one One of the authors of this article David Stout reinstituted the student chapter at his school (Youngstown State University) after travelling with a group of his students to the IMA
Student Leadership Conference in Cleveland Ohio Through an IMA Student Chapter on campus students are able to work closely with a sponsoring local IMA chapter and bring to campus speakers who are experts in a wide range of topics including those discussed earlier in this article Each year student chapters compete for an Award of Excellence (AOE) and recognition as an Outstanding Student Chapter In addition IMA student members are able to engage in networking activities leadership training mentoring and community service programmesmdashall through their local chapter
You also might consider volunteering to serve as a Campus Advocate In this role yoursquoll represent IMA in all major matters of interest to your students (scholarship opportunities starting a student chapter mentoring and the like) and to your institution (for example leveraging IMA resources to advance the relevancy of the accounting curriculum use of educational case studies published in the IMA Educational Case Journal and access to IMArsquos ethics curriculum)
And if you havenrsquot yet done this ask IMA to endorse your accounting programme (information is available at www imanetorgeducator_resources indexaspx) This programme is designed to identify business curricula that meet the quality educational standards required to prepare students to earn the CMA designation Endorsement is based on an analysis of the curriculum and topics covered on the two-part CMA exam Currently 12 programmes have been endorsed
Finally if your school has an IMA Student Chapter consider participating in the annual IMA Student Case Competition where students are asked to propose a solution to a real world problem (Cases are solicited each year by Raef Lawson IMA VP of Research and Policy and IMA Professor in-Residence) Finalists make their presentations at IMArsquos Annual Conference amp Exposition before a set of judges consisting of accounting faculty members and practitioners Each year a new case is published in the August issue of Strategic Finance for students to use for that yearrsquos competition
Working TogetherIn this article we have summarised the changes that have affected the accounting profession and provided a competencies-based framework for guiding accounting educators in responding productively to those changes As a management accountant you know that implementing change in any organisation let alone within an entire profession never comes easily To be successful in overcoming our professionrsquos competency crisis IMArsquos practice and academic partners will need to assume leadership roles in defining enterprise performance management as the cornerstone of the accounting professionrsquos value proposition
This article was orginally published in the August 2014 issue of Strategic Finance It appears here with the permission of The Association of Accountants and financial professionals in Business
We need to educate ourselvesand future generations of account-ants so that as a collec-tive group we can deliver theexpanding set of com-petenciesdemanded in todayrsquos dynamicorgani-sational contexts
THE POWERFUL AND THRIFTY OFFICE ALL-ROUNDERS
The new ECOSYS M3560idn series will astound you With their print speeds of up to 60 pages per minute they are among the most productive A4 bw multifunctionals on the market We nevertheless managed to keep their ecological footprint and total cost of ownership impressively low by using our well-known ECOSYS technology and equipping the devices with our renowned long-life components The result Not only less waste and lower maintenance costs but also less hassle for you and all your colleagues You will also greatly appreciate the many customisation possibilities of the devices equipped with KYOCERArsquos open solution platform HyPAStrade as it allows you to tailor the device to your needs So yes we are proud of our new range of MFPs and can hardly wait to share their numerous benefits with you
For more information please contactKYOCERA Document Solutions Middle East | PB Box 500817 DubaiUAE | Tel +9714 4330 412 | Fax +9714 4231 944KYOCERA Document Solutions Europe BV - wwwkyoceradocumentsolutionseuKYOCERA Document Solutions Inc - wwwkyoceradocumentsolutionscom
52
ACCAINTERVIEW
wwwthecfomecom
GLOBAL By ASSOCIATION
across the region from our key employers and learning provider partners to our active and growing student and member base I want to understand their challenges and priorities and how ACCA can work with them to help support the economic success of the region
What can a CFO gain from working with ACCAThe ACCA qualification is about complete finance professionals For CFOs it brings the technical knowledge vital to business success complemented with the strategic management skills and ethical competence crucial to an organisationrsquos success As an organization ACCA in the UAE brings CFOs access to that local and global network of peers and expertise along with our leading research and insights that help them to keep up to date on the issues that matter most
Are there any initiatives in place to leverage the recently announced partnership with AAA
How are the ACCArsquos many years of activity being applied to the Middle EastACCA has now had a presence in the UAE for well over a decade During that time we have established strong relationships across the Middle East epitomised by the recent signing of our Strategic Partnership with AAA As a national body in choosing to partner with ACCA they recognised the local and global perspective we bring We are continuing to work with students members and employers across the Middle East to build their networks knowledge and business success through events research and insights and access to a growing number of online resources
Which initial priorities are among your key aims upon joining the organisationrsquos efforts in the UAEIn the first few months I hope to build on the success of the team in the UAE My priority will be to meet as many of our key stakeholders
The Association for Chartered Certified Accountants (ACCA) provides its services across a number of international borders The recent announcement of Lindsay Degouve de Nuncques as the new head of the Associationrsquos UAE chapter further exemplifies the ACCArsquos reach based on her previous work in the UK Nuncques shares here what she brings to the Middle East and just how globalisation has driven her ascent
53
ACCAINTERVIEW
wwwthecfomecom
The strategic partnership with AAA is the first of its kind in the region Students who complete the UAECA qualification will be entitled to both the AAA and ACCA designations and ACCA members in the UAE will also be eligible to apply for AAA membership This is a very exciting development in the market and together AAA and ACCA will be working to deliver maximum value to all our stakeholders from this partnership As we launch the UAECA qualification this activity will start in earnest
Which key industries will you be spotlighting in the Middle East in the months aheadOur experience of working across all sectors and levels of organisations globally gives ACCA a unique insight into all types of industries We will continue to be working with employers across the spectrum in the months ahead to help them gain the insight and make the connections that drive businesses to succeed at whatever they do
ldquoThe ACCA qualification is about complete finance professionals For CFOs it brings the technical knowledge vital to business success complemented with the strategic management skillsrdquo
54
Islamic FinanceMARKET OUTLOOK
wwwthecfomecom
In its 10th instalment the Forum is hosted in Dubai as a direct result of the UAErsquos increasing importance in the world of global Islamic finance
THE WORLD ISLAmIC ECONOmIC FORUm LANDS IN DUBAI
In Dubairsquos continued quest for leading the world across a range of spectrums the Emirate accelerated its desire to become the worldrsquos leading hub for Islamic finance by hosting the 10th installment of the World Islamic Economic Forum (WIEF) Delegates from dozens of countries attended to take part in a three-day event held at Madinat Jumeirah which rests alongside Dubairsquos gleaming coastline Held under the patronage of His Highness Sheikh Mohammed Bin Rashid Al Maktoum the
Vice President and Prime Minister of the UAE and Ruler of Dubai key speakers included The Honorary Dr Zeti Akhtar Aziz Governor of the Central Bank of Malaysia HE Kairat Kelimbetov Governor of the National Bank of Kazakhstan The Honorary Datorsquo Sri Mohd Najib Tun Abdul Razal Prime Minister of Malaysia and HE Xavier Bettel Prime Minister of the Grand Duchy of Luxembourg
Launched in 2006 in Malaysia WIEF has grown in tandem with the increased
Delegates from dozens of countries attended WIEF to take part in the three-day event
sophistication and reach of Islamic finance After a successful event in London in 2013 amidst increased interest in Islamic finance across Europe WIEF relocated to Dubai where the local business structure is keen to host halal finance
Said Hamad Buamim President and CEO Dubai Chamber of Commerce and Industry co-organisers of the event ldquo[The forum] is the start of a new chapter of cooperation between Dubai and the world as part of
55
Islamic FinanceMARKET OUTLOOK
wwwthecfomecom
Dubai Capital of Islamic Economy visionhellipestablishing a unified regulatory authority to provide the framework for standards across halal industries will significantly accelerate growth Likewise we need to see increased cooperation and partnership between the public and private sectors This is already happening with great success here in Dubairdquo
The order of global cooperation needed to facilitate growth across the Islamic finance world was more than apparent at WIEF based on how many differing nations were represented at the event The exhibitorrsquos hall was populated with a number of key Malaysian stands representative of the Southeast Asianrsquos ranking as the global leader in Islamic finance Also present were companies from Saudi Arabia also a key locality in the worldrsquos halal industries An interesting yet prescient presence was of attendees from South Korea a nation which is eager to participate in Islamic finance and will be hosting the WIEF Pyeongchang Roundtable in December 2014
ldquoGangwon is a province located in Korea which is very interested in new business opportunities Wersquove realised the strength of the Islamic economy and have come here with many different companies The first type is based in real estate investment We also have companies which want to export their products to the Islamic economy based on their halal qualities And Gangwon will also be hosting the Winter
ldquoKorea is very interested in the strength of the Islamic economy and wants to export its products based on their halal qualitiesrdquo
56 wwwthecfomecom
$247trillionProjected value of halal products industry in lsquo18
125Muslim percentage of global tourism expenditure
STAT FACTSOlympics in 2018 and are presently seeking investments for this as wellrdquo said Seong-hun Kim a member of Gangwon Province Governmentrsquos Export Support Team
Dubai proved to be an excellent place for the event considering how well the UAE is able to so regularly corral international cooperation A key sign of this was witnessed recently when Luxembourg now considered the third most important base for Islamic finance globally opened a finance office in Dubai International Finance Centre The European nation also opened a euro200 sukuk earlier this year which was quickly oversubscribed
The prime minister of Luxembourg offered the WIEF audience a riveting speech which detailed just how international the Forum has become whilst encouraging more of the world to support the growing influence of Islamic finance
Said Bettel ldquoWe need to innovate more economic partnerships for growth We sometimes need to reengineer relationships but also have to make sure these relationships remain sustainable Growth in one country also brings growth to others as long as this is guided by free market initiatives Free trade and free flow of capital combined with innovation leads to prosperity We have all gathered here in Dubai to explore the future of Islamic finance and Luxembourg is also a pioneer of Islamic finance in Europe The Islamic financial sector has a major role to play in continued global growthrdquo
The Islamic Corporation for the Development of the Private Sector (ICD) is based in the Kingdom of Saudi Arabia where it manages an international fund worth $2 billion half of which is available for subscription With shareholders in more than 50 countries and a sovereign sukuk fund recently launched in West Africa the ICDrsquos CEO Khaled M Al Aboodi attended WIEF this year excited to participate in the global event
How does the ICD approach its attendance at the World Islamic Economic ForumI think the Forum is one of the best places for discussing the financial issues of the OEC member countries It has been around for ten years and has grown to become a very important platform for discussion Wersquore here to attend and listen but also to network Itrsquos a great networking platform and a place to share views whilst letting everyone know what we have to offer
How has Islamic finance changed over the yearsOf course itrsquos growing in a large scale Some of it actually needs more support particularly with respect to regulatory frameworks Wersquore trying to partner with many international organisations like the IMF to try to provide support to countries to adapt regulation for Islamic finance Sukuk issuance is one of the biggest issues that needs to be addressed because there is a huge amount of liquidity in this arena Due to issues related to regulation sukuk issuance can be costly But with the regulation we are confident it will be on a level playing field with other forms of finance Compliance is a major area where more work can be done The Forum started with a roundtable on sukuk which shows how helpful WIEF has been over the years
What type of work does ICD do internationallyICD helped the government of Senegal to issue the first sovereign sukuk This was successfully issued last summer Progressing in this manner is something wersquod like to see continue across West Africa in order to utilise its resources with aiding development in the region in mind
QampA WITH KHALED M AL ABOODI CEO OF ICD
Islamic FinanceMARKET OUTLOOK
OFFICIAL SPONSORS
ENDORSED BY OFFICIAL HOST OFFICIAL
COMMUNICATIONS PARTNER
MEYDAN HOTEL DUBAI UAE19 - 20 NOVEMBER 2014
WOMENOMICSthe next emerging market
TAKE PART in making change happen UNITE with business and through leaders from across the globe
PARTICIPATE to the expansion of a modern and inclusive economy
58
Gautam PradhanINTERVIEW
wwwthecfomecom
SUCCESS BEyOND BOUNDARIES
in other management roles such as strategic decision making mentoring and leading efficiency and productivity across a range of other departments and functions as well as a being a catalyst in ensuring that the boardrsquos vision for the organisation is achieved
A significant percentage of NMDCrsquos shares are owned publicly Does the CFO play a role in balancing the interests of the shareholdersAs a CFO balancing the shareholdersrsquo interests is definitely part of my responsibility In order to achieve this goal there needs to be a careful evaluation of each decision while keeping the short-term and long-term goals of the company in mind At NMDC we actively implement a system where we utilise a balance scorecard as a method of ensuring that all our primary objectives are met yet at the same time continuously enhance our relationships with our shareholders
NMDC has completed various projects across the Emirates Are there plans to move abroadAs NMDC moves towards becoming an international player our strategic expansion plans are focused in areas within the GCC region and India In line with this strategy we opened
How has a company with such a unique set of deliverables grown so consistently over the yearsOur organisation strongly believes that the core to our strength is the people process and equipment A strategic decision led by our Board of Directors and the senior management has been implemented that required us to consistently invest in these three aspects to help expand our business beyond the territorial boundaries of the UAE and at the same time enhance what we can offer which is relevant to these segments We attribute our success to the efforts which every employee contributes We also strongly believe in the ldquoWe can make it happenrdquo principle The management raises the index of performance while setting SMART objectives within the organisation and encouraging the employees to achieve them
How has your position as the CFO changed over NMDCrsquos 35 years of operationAs the market evolves and business dynamics change my role as the CFO has become complex and more challenging A few years back I was mainly focused on bookkeeping accounting and other financial responsibilities such as arranging bank facilities But moving forward I became more involved
The UAE is progressively becoming a hub for world-class infrastructure The country has duly impressed the rest of the globe with noteworthy land developments showcased across the emirates Among the remarkable landscapes found in Abu Dhabi are the Corniche Beach Yas Island and Sir Baniyas Island Behind these successful projects is NMDC the dredging division of Abu Dhabi National Oil Company (ADNOC)
In an interview with CFO Magazine Gautam Pradhan Chief Financial Officer NMDC shares an exclusive look into the companyrsquos international blueprint for growth and his dynamic role as a strategic leader of one of the best in dredging and marine construction in the Middle East
59
Gautam PradhanINTERVIEW
wwwthecfomecom
branches in Qatar Bahrain Oman and India This has paid rich dividends recently as projects of strategic importance are bagged in Qatar and Bahrain Furthermore NMDC (UAE) has recently played a key role as a leader of an international consortium with Royal Boskalis Westminister (Netherlands) and Jan De Nul Group (Belgium) for the awarding of the Suez Canal Dredging project in Egypt Moving forward we have devised a strategic approach that will enable us to play a key role in the development of Indiarsquos marine infrastructure
What are the global strategies that are part of the CFOrsquos responsibilitiesAs CFO understanding the macro economic scenario risk analysis and mitigating those risks are all a part of my responsibilities I also have to have a proper comprehension
ldquoA few years back I was mainly focused on financial responsibilities moving forward I became more involved in strategic decision making mentoring and leading productivityrdquo
Gautam PradhanINTERVIEW
60 wwwthecfomecom
of the challenges faced by the company in terms of dealing with foreign contracts direct and indirect taxes and hedging and managing the integration process These are essential to enhance shareholders wealth and mitigate undue risk
How significant is accountancy for NMDC in its operations Why exactlyAccountancy is the lifeline of any company it does not only record the finances it also reflects the health of the organisation The MIS reports analysis trends and statistical information go a long way toward effectively providing
the diagnostic approach essential for the company
How have NMDCrsquos environmental activities helped the companyrsquos bottom lineNMDCrsquos work is well-synchronised with our environmental activities and specifically with nature Our activities are closely linked to sand and water and we view such activities with strategic importance Projects such as increasing water supply to mangroves and beach nourishment help us support the environmental activities while adding to our bottom line
ldquoAccountancy is the lifeline of any company it does not only record the finances it also reflects the health of the organisationrdquo
A burgeoning slice of Abu Dhabi coastline
The largest business awards
in the GCC30th November Dubai
nominate now at wwwstarsofbusinessawardscom
Stars of Business has become an iconic awards brand like no other in the region It recognizes the very best SMEs across 26 business categories Itrsquos universally respected as scientifically assessed and unimpeachably judged
327000 SMEs across the UAE$234 billion estimated total revenue of the SME sector4974 Awards entries in 20131856 Individual company applicants
Presenting Partner Strategic SME Partner Gold Sponsor Gold Sponsor VIP Hospitality Partner Supporting Partner
Trade Facilitator PartnerTrade Credit PartnerLogistics Partner
Institutional Partner Institutional Partner Event Partner
OrganiserPublisherMedia Partner Media PartnerPort Authority Partner
62
David Allen INTERVIEW
wwwthecfomecom
What went into completing your bestseller ndash Getting Things Done (GTD)After twenty years of researching developing and implementing a methodology for achieving stress-free productivity based upon
thousands of hours spent desk-side with
some of the best brightest and busiest people in the world I decided to write the manual for it Thatrsquos what Getting Things Done is
What are the five phases of mastering workflowIn order to get
any situation under control so
you can focus you will utilise these five
steps Whether yoursquore managing your kitchen
or your company you will need to collect and capture what has your attention clarify what if anything to do about it organise it according to what it means to you review and reflect upon it in relation to
Todayrsquos evolving CFO is often caught between the world of business set-up generating revenue managing employees and building strong company infrastructure When can things actually get done What can one do to boost productivity and master workflow World-renowned business coach David Allen has the answers
PRODUCTIvITy PRINCIPLES WITH
DAvID ALLEN
63
David Allen INTERVIEW
wwwthecfomecom
those are greatly subvertedHow does one maintain a fair balance between the time spent planning and actually getting things doneYou simply need to spend just the amount of time you need to to trust that what you are getting done is the right thing to be getting done in the moment It takes as long as it takes to get to that point Why would you do anything less
How can one apply your core productivity and workflow principles to todayrsquos technologically driven environmentThe principles and their techniques are system-independent Whether you have meaningful input from the Internet your smartphone or a conversation in the hall you must engage with it equally Technology has simply increased the flow of input and ease of distraction in your world
There is a lot of talk about how connected wersquove become and how connectivity is driving tremendous business growth Does connectivity actually come with its fair share of downsides
Connectivity is obviously a two-edged sword We can have intimate productive and creative interaction instantly with someone on the other side of the world and we can just as easily be distracted and seduced into those engagements when they may not be the best use of our attention and resources Donrsquot shoot the medium Itrsquos all simply bringing attention to your clarity of direction and priorities or lack thereof
Could you share a few quick tips with our readers to instantly boost productivityWrite everything down that has your attention Decide the very next actions required to get closure on all of them Any next actions that require less than two minutes do instantly Park reminders of everything else somewhere that yoursquoll see when you can do something about them
We are currently facing a massive information overload What are some basic principles you could suggest to mentally organise such large amounts of dataConstantly ask yourself Where am I going Whatrsquos important and rewarding to me Is this information
the whole and then engage your resources with intuitive trust
As a CFO how can you transfer efficient workflow management skills to your employees Itrsquos very difficult to legislate processes for individuals ndash you can really only hold them accountable for their results But if you are managing your own commitments and intersections with them with integrity and rigour it will automatically force your team to ldquostep up to the platerdquo in their own behaviours in order to meet your standards If you request their complete list of their company projects and they canrsquot produce it thatrsquos a sign theyrsquore not in control If they make a commitment to you that they havenrsquot kept thatrsquos data about their performance GTD is simply about good operational business practices
With so many planning and organising activities in your methodology is there a risk of losing spontaneity as a strategistThe reason for these best practices is to optimise freedom creativity and spontaneity Without them
ldquoBut if you are manag-ing your own com-mitments and intersec-tions with them with integrity and rigour it will automatical-ly force them to ldquostep up to the platerdquo in their own behaviours in order to meet your standardsrdquo
64 wwwthecfomecom
supporting that Park whatever you find potentially meaningful somewhere that is easy to access when needed
Being an entrepreneur is a non-stop job How do you ensure that you have an adequate work-life balance Pay attention to what has your attentionmdashwith regard to anything Your health relationships career finances etc Notice when something might be ldquooffrdquo and make good decisions about what you need to do to get it back ldquoonrdquo again
Does your work teach people to be efficient or effective In essence they are the same thing Effective choices are generated by efficiency on a higher level If you want to implement strategy most effectively it demands utilising your resources optimally which is efficiency
Does motivation actually improve quality of work or purely quantityDepends on the focus of the motivation You can be motivated to work harder and you can be motivated to work smarter
What is your favourite productivity mantra that
you implement in your day-to-day lifeUsing my own in-basket and note-taking devices to capture potentially meaningful and valuable ideas and soon afterwards clearing all of them out by deciding what to do about them if anything
Your books seminars and other work inspires many individuals and businesses Who is your personal inspiration or role model I have many about many different aspects of my life The only person though that I ultimately trust as my best guide is my higher self which I try to access as frequently and clearly as I can
Finally what advice would you give to current business owners and aspiring entrepreneurs looking to gain complete control of their life and businessCapture what has your attention clarify what you need to do about it to get it off your mind organise the inventory of all your commitments at all levels review and reflect on all of that regularly relax and trust your inner wisdom to engage with the most appropriate thing in the moment
ldquoIf you want to implement strategy most effectively it demands utilising your resources optimallyrdquo
David Allen INTERVIEW
APPSTECH TALK
wwwthecfomecom 65
mAxImISE BUSINESS lsquoON-THE-GOrsquo WITH THESE HANDy APPS
ipAd SpECIAL
SAMSUNG UNvEILS GALAxY NOTE EDGE
Network
AP
Display
OS
Camera
Video
Audio
Additional Features
GoogleMobile Services
Connectivity
Sensor
Memory
Dimension
Battery
The availability of service may differ by country All functionality features specifications and other product information provided in this document including but not limited to the benefits design pricing components performance availability and capabilities of the product are subject to change without notice or obligation
Samsung Galaxy Note Edge Product Specifications
25G (GSM GPRS EDGE) 850 900 1800 1900 MHz3G (HSPA + 42Mbps) 850 900 1900 2100 MHz4G (LTE Cat 4 15050Mbps) or 4G(LTE Cat 6 30050Mbps)May differ by country and carrier
27 GHz Quad-Core Processor
56 inch (1419mm) Quad HD+ Super AMOLED (2560 x 1440 + 160)
Android 44 (KitKat)
Rear Facing 16 Mega pixel Auto Focus camera with Smart OISFront Facing 37 Mega pixel camera with f19Rear Facing Camera HDR (Rich tone) Selective Focus Rear-cam Selfie Beauty face Virtual Tour Shot ShotampMore Dual CameraFront Facing Camera Selfie Wide Selfie
Codec H264 MPEG-4 H263 VC-1 WMV7 WMV8 Sorenson Spark MP43 VP8 Recording amp Playback up to UHD
Codec MP3 AACAAC+eAAC+ WMA AMR-NBWB Vorbis FLAC()() Ultra High Quality Audio (~192KHz 24 bit) support
Multi WindowUltra Power Saving ModeVoice Recorder (Normal Mode Interview Mode Meeting Mode Voice Memo)Download BoosterS Health 35Dynamic Lock ScreenBriefingEdge screen UX Revolving Interaction Immersive apps(Camera Video S Note)Ticker board Express me Quick Tools Night Clock etc
Chrome Drive Photos Gmail Google Google+ Google Settings Hangouts Maps Play Books Play Games Play Newsstand Play Movie amp TV Play Music Play Store Voice Search YouTube
WiFi 80211 abgnac (HT80) MIMO PCIeGPS GLONASS BeidouNFC Bluetoothreg v 41 (BLE ANT+)IR LED (Remote Control) USB20 MHL 30
Gesture Accelerometer Geo-magnetic Gyroscope RGB IR-LEDProximity Barometer Hall Sensor Finger Scanner UV Heart Rate Monitoring SpO2 (Dependent on market)
32 64 GB Internal memory + microSD slot (up to 128GB)3GB RAM
1513 x 824 x 83mm 174g
Standard battery Li-ion 3000 mAh Fast Charging (Adaptive Fast Charging amp QC20)
wwwthecfomecom66
APPSTECH TALK
AIR DISPLAY
SQUARE REGISTER
Using this app you can connect your iPad to your computer and use it as an additional screen While working on an important presentation or sales proposal you can extend or mirror your computer screen on your iPad This app is compatible with both Mac and Windows computers Note that to use this feature you have to install Air Display on your iPad and a separate free app on your computer The computer and iPad also need to be on the same Wi-Fi network in order to work in-sync
For Mac users the app allows you to connect to up to four screens ndash all at the same time
Apart from the ability to convert your iPad into a wireless display whatrsquos also attractive about this app is that it allows you to control your computer wirelessly using your iPad
This fantastic application can serve as a mobile point of sale for your business It allows you to accept credit card payments ndash including Visa MasterCard Discover and American Express A transaction fee of 275 is charged for every time you swipe a card The sale amount is transferred to your account within two working days
Once you download the app you can sign up and register for a unique card reader solution called the lsquoSquare Readerrsquo (this is free) Square Reader encrypts all card details and ensures that the transaction is secure Once you receive your Square Reader you can connect it to your device and are all set
The application also offers added features such as transaction history connecting to a receipt printer creating employee logins and more
AED 3699
PRICE
Free
PRICE
wwwthecfomecom 67
APPSTECH TALK
DOCUSIGNHave you ever been in a situation where your employees need you to urgently sign a contract but arenrsquot able to physically reach you in time DocuSign solves this problem with its easy-to-use eSignature feature In three easy steps you can sign important documents and securely send them to your intended recipient
First you have to import the document to your device ndash this could be from Dropbox Google Drive or another select applications You then place your signature or any other important legal information you need to include such as initials Once you have finished working on the document send it back via e-mail
Whatrsquos particularly great about DocuSign is the great emphasis it puts on security ndash so that users donrsquot have to worry about getting into any legal trouble
Use DocuSign and never miss a deadline again
Free for basic version
PRICE
MPAYAn initiative by the Dubai eGovernment Department mPay is a simple application that allows you to make important payments Once yoursquove signed up and entered your payment details you are good to go You can pay your Dubai Electricity and Water Authority (DEWA) bills Etisalat utility bills Dubai Police fines Recharge SALIK and much more
A handy feature is its lsquoauto-rechargersquo option which you can use to set automatic payments
Free
PRICE
Opinion CIMAPERSONALITIES
wwwthecfomecom68
NEW HORIZONSBy geetu Ahuja Head of gCC at CIMA
The days of the traditional accountant working within a small community in a small town in a small market have long gone CFOs are now being referred to as Chief Frontier Officers as they travel from market to market overseeing their offices overseas This new expanded role has distinct advantages for both the company and the CFO who gain new skills and new insights from foreign branches a single hand at the helm of many markets provides business perspectives on a global scale and benchmarks across the board
On a personal level working abroad also has huge importance Robert Walters the specialist professional recruitment consultancy recently conducted a survey
of almost 2200 employees across a variety of professions exploring a number of topics which ranged from working practices and attitudes to careers The results highlighted some notable trends particularly for finance professionals
In career progression for example the survey showed that 50 of all accountants see working abroad as either lsquoessentialrsquo or lsquoextremely usefulrsquo to furthering their prospects more than banking professionals lawyers and IT workers ndash a strong indication of how accounting professionals are thinking about their future either within their existing company or with opportunities elsewhere
Accountants with globally recognised qualifications obviously have a greater chance of gaining some experience abroad and the lsquoGen Yrsquo professionals in particular seem ready to pack their bags In a CIMA study conducted in the UK last year over a third of those seeking employment in the
next two years will prioritise opportunities abroad over those in their home countries many of them enticed by the career incentives offered by the Middle East
How quickly can they land what seems to be their dream job What are the realities It may be that the move is simply from one branch to another and the only significant difference is a view from the window but for those expanding rather than changing their roles we have seen a very real need for a depth and breadth of knowledge never needed before
As geographical boundaries are pushed ever-wider a CFOrsquos responsibilities are pushed with them For many finance executives the understanding of their own patch of land is no longer enough they now have to be aware of foreign markets up to speed with foreign trends and au fait with foreign laws There is a need for a new commercial awareness in geography as well as philosophy
As geographical boundaries are pushed ever-wider a CFOrsquos responsibilities are pushed with them
John vargheseQampA
wwwthecfomecom 69
BUSINESSSET UP YOUR
IN THE UNITED ARAB EMIRATES
TO
WAREHOUSESOFFICES INDUSTRIAL LANDFLEXI
Quick and easy company set-up
Less than an hour drive from Dubai
Complete cost-effective packages including licences and facilities
100 foreign ownership
Zero income and corporate taxes
Eligibility for UAE Residence Visa
BUSINESS SET-UP SOLUTIONS STARTING FROM AED 15000 (USD 4000)
RAK FREE TRADE ZONE PROVIDES
RAK Free Trade Zone Authority - Government of Ras Al KhaimahUAE (Ras Al Khaimah) Tel +971 7 2041111 (Dubai) Tel +971 4 7041875 (Abu Dhabi) Tel +971 2 6994888
Germany (Cologne) - Turkey (Istanbul) - India (Mumbai)
Call +971 7 204 1111 Visit wwwrakftzcom Join rakftz
Latest insights from PwCrsquos 15th Annual Global CEO Survey revealed that 59 per cent of CEOs see emerging markets as more important than developed markets to their future What is making emerging markets such a pressing priority for C-suite executives Why are emerging markets increasingly grabbing headlines
Emerging markets are large fast-growing and ambitious markets best known for being the growth engines of todayrsquos global economy Research (1) suggests that emerging market countries are expected to amount for more than 60 per cent of global GDP growth ndash a clear indication of the wealth of opportunity they present
Understanding emerging marketsBased on estimates by the International Monetary Fund emerging economies are expected to grow two to three times faster in comparison to developed nations Explaining this fast-growth and the rise of these emerging markets an article on Forbescom details that ldquoduring the US housing crash and resulting credit crisis of 2008 world markets were saved from a total disaster thanks to the big emerging markets ndash mainly Brazil India and China The global credit crisis was one of the longest deepest and most painful in history It toppled Wall Street icons like Lehman
The following report explores emerging markets from West to East which are at the helm of economic development trade and innovation and highlights what their rising popularity means for the growth of your business
Brothers required government bailouts of bulge bracket banks and shocked the global economy with a deep economic recession and even a deeper crisis of confidence Its most important legacy though may be one that has yet to fully unfold the crisis revealed a new world order in terms of economic and market dynamics Emerging market economies finally arrived as
30
Market IntelligenceANALyTICS
wwwthecfomecom
ENTERING EmERGING mARKETS STRATEgIES RISKS ANd OppORTuNITIES
Projected annual GDP growth 2014 amp 2015
PANAMA
67
PERU
RANK42
55
Projected annual GDP growth 2014 amp 2015
Ease of Doing Business
RANK55Ease of Doing
Business
TOP TEN MARKETS
(1) Source here Accenture Research ldquogearing up for growth ndash five imperatives for success in emerging markets 2011 Henry Egan and Armen Ovanessoff
31
Market IntelligenceANALyTICS
wwwthecfomecom
LATVIA
CZECH REP
MALAYSIA
THAILAND
SOUTH KOREA
CHINA
RANK75
41
21
50
45
35
74
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
CHILE
RANK 34
43
Projected annual GDP growth 2014 amp 2015
Ease of Doing Business
RANK 24Ease of Doing
Business
Ease of Doing Business
RANK 6Ease of Doing
Business
RANK18Ease of Doing
Business
RANK 7Ease of Doing
Business
RANK 96Ease of Doing
Business
POLAND
32
RANK45Ease of Doing
Business
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
Source httpwwwbloombergcomnews2014-01-29qatar-china-top-ranking-of-frontier-and-emerging-marketshtml
powerful essential and permanent contributors to global economic growth and sustainabilityrdquo
Bloombergcom recently ranked the top emerging markets based on their performance on 19 economic financial political and social indicators In order of ranking the top ten markets were
CHINA
SOUTH KOREA
MALAYSIA
CHILE
THAILAND
PANAMA
PERU
LATVIA
POLAND
CZECH REP
1 6
2 7
3 84 9
5 10
Market IntelligenceANALyTICS
32 wwwthecfomecom
Making an entryIf your business is looking to enter any of these emerging markets itrsquos worth considering the following checklist
1 Assess your readiness The biggest mistake you can make is to enter a market without proper evaluation of your business Donrsquot do it just because everyone else is Like every other major business decision be sure to speak to your Board of Directors partners investors stakeholders and most importantly your CFO and certified accountants Make a business plan enlisting your objectives goals investment strategy potential risks etc
2 Research research research Do your homework Treat emerging markets as any other international expansion venture and do thorough research on the new market ndash Who are the competitorsWhat is the price point for your product What are the customer demographics What kind of infrastructure do you need for the manufacturing production or distribution of your product
3 Understand the legal framework Emerging markets might not have rules and regulations as clearly spelled out as your home country Invest some time and money in understanding how business procedures work A very obvious area of focus for UAE-based companies is tax Since the UAE is a tax-free economy companies arenrsquot exposed to tax accounting and other legislation surrounding
ndash failing to adapt to the needs and expectations of the local customers is surely a recipe for failure Time and again companies havenrsquot been able to create a customised offer and have had to exit these markets with huge losses A success story however is that of the Haier Group Haier famously introduced washing machines to specifically suit the water pressure levels in the households of India ndash an emerging market strategy that worked very well in their favour and helped them become leaders in that sector Another great example is that of Coca-Cola as explained in an online Reuters article by Matt Reilly ldquoIn Brazil Coca-Cola has used social media to better understand consumer preferences and has developed a successful local network to supply traditional Coca-Cola products as well as fruit juices tailored to local tastesrdquo
7 Local currency This is a complex yet critical area to consider when entering a new market Ask yourself questions such as ndash What is the local currency rate How does it compare to the currency in your home country Is the country import-led or export-led and what impact can this have on the global value of the currency Remember that fluctuations in currency rates can hugely effect your overall investment and thereby the return on investment
8 Build partnerships When entering an unknown territory it is quite useful to have the backing and support of peers who can help you in case of unforeseen challenges This is
this Another area to consider is corruption ndash emerging markets are notorious for high corruption red-tape and bureaucracy Speak to your company lawyer to assess these areas and take proper measures to avoid them before-hand
4 Invest in local talent Working with people already accustomed to the new market avoids the hassle of relocation and reduces costs But more significantly gives you skilled talent to work in these unique environments This also works in favour of your company as it gives you a clear understanding of the kind of compensation packages you will have to offer to your employees For instance employees based in China might want high remuneration and low healthcare benefits while in India it may be quite the reverse Recruiting local talent will also have a trickledown effect ndash your employees will easily be able to cater to the local customer needs without the need for intense training
5 Supply chain 44 per cent of business leaders surveyed consider accessing the right supply chain capabilities extremely or challenging in emerging markets according to Deloittersquos Globalisation Survey Make sure that you know who your suppliers will be what the production costs are whether their production procedures fit your time constraints and if the final product matches your level of quality
6 Cater to local market demands This is one of the most important aspects of all
Do your homework Treat emerg-ing markets as any other internation-al expansion venture
Market IntelligenceANALyTICS
33wwwthecfomecom
the very reason why Mergers and Acquisitions are a popular way to enter into emerging markets Many companies piggyback on their clients who are entering these markets For instance if you are an IT consultancy working on a major project for a manufacturing and trading company with operations across India and China you can use their resources and expertise to explore opportunities in these countries
Remember to consider these steps every time you enter a
new market as every locality has its own set of unique needs One strategy doesnrsquot fit all
Surviving fierce market conditionsWhile the massive opportunity that lies within emerging markets paints a pretty picture businesses need to be wary of bottlenecks such as corruption volatility gaps in laws and regulations and strong competition There have been several high-profile cases of multinational companies withdrawing from emerging
markets owing to immense corruption pressures
There is also a high percentage of inherent risks in these markets which amount to many companies not succeeding in their first attempts It is important to take your time when adapting to these markets and fully understand the business dynamics Following recent case studies and going over the lessons learnt by multinational companies who have made an entry into these markets consider the below
bull Is your companyrsquos head-office ndash and senior management ndash located in your home country without any C-level representation in the new emerging market
bull Are you focusing all of your resources on doing business in the emerging market at the cost of losing profits in your home market
bull Have you researched local competitors in these markets who may already have a strong standing and proven models of success
bull Are you using the same ldquoentry approachrdquo and business model across different emerging markets
If your answer to one or more of these questions is yes it may be time to re-evaluate your presence in these markets and map out a different strategy
Finally remember that no matter what the outcome of your admission to these markets might be your business is sure to emerge out of this stronger tougher and ndash of course ndash ready for a new challenge
of companies believed they had invested more resources in
emerging markets than was required
entered a market without fully assessing the ability of the supply chain to support the expansion
entered with the wrong pricing model and an inappropriate
operating model
CONSIDER THE RISKS
48
24
20
There is also a high percentage of inherent risks take your time when adapt-ing to these markets and fully understand the business dynamics
Source Emerging markets expansion and the supply chain Economist Intelligence unit survey conducted on behalf of EY September 2010
34
CIMA INTERVIEW
wwwthecfomecom
The Chartered Institute of Management Accountantsrsquo (CIMA) Managing Director Andrew Harding visited Dubai to host the Institutersquos seminar on global management accounting principles In the wake of CIMA revising their well heralded syllabus Harding discussed with CFO Magazine what the newest edition held how CIMA is applying a digital focus to its courses and just how CFOs can gain from it all
CURATING CURRICULUm
35
CIMAINTERVIEW
wwwthecfomecom
can give CFOs something they can take and something they can measure their own management accounting services against They can benchmark using this and they can utilise this to see their progress
Part of that is having professional management accountant in place I donrsquot think the landscape matters I believe that there is a common business need wherever you may be around the globe
All of the emerging markets need these skills The first aspect that accounting schools teach is about auditing skills because theyrsquore interested in protecting investments Then they teach you how to keep your business sustainable and to have a sustainable business you need to have a management accountant in place So itrsquos not just here in the UAE where we see these demands we see the same demands in China Indonesia and other powerhouse economies We see their skills shortages and we see the need for solutions in those areas
Talk to me about how this new syllabus works to promote the evolution of a CFOThis syllabus that wersquove
Can you expound on just what can be found within the new CIMA syllabusWe just revised the syllabus we do that every four to five years What we have done this year is a very significant revision It is based from a complex study that we have carried out to over 3000 people from 200 companies globally It is the very first revision since the joint venture with CIMA and AICPA So this has allowed us to attain a syllabus rich with all the data from all the continents in the world For the first time wersquove had real involvement from companies in the USA in this project
Why is the collaboration between AICPA and CIMA significantMost important is the Chartered Global Management Accountant (CGMA) designation that AICPA and CIMA both issue for qualified management accountants Wersquoll have a common curriculum and common examination which will begin on January 1 which gives us a global designation for management accountants wherever they are around the world There are plenty of accounting bodies who claim to be global but actually this is the only
genuinely global designation This is because it has the only one with a North American participation in it So we can say that the CGMA will be just as well-recognised in the USA as it is in Dubai
With the global landscape in mind how do you create an even objective that applies to localities which may prove widely differentialThe landscapes are different but businesses have common needs wherever they may be What wersquove particularly seen since the global financial crisis is that companies are actively looking to build management accountant capability to build that capacity within their organisations They donrsquot want to have a poor quality of information that lacks insight being used in their businesses So they see management accountants can bring solutions to that As a result of all the work wersquove done with companies who participated in the syllabus wersquove also put together a series of what we call Global Accounting Principles This is a series of principles which describes what good management accounting looks like and what top quality management accounting in a company should be producing This then
ldquoCompanies are actively looking to build man-agement accountant capability to build that capacity within their organisa-tionsrdquo
36 wwwthecfomecom
worked on acknowledges the skill set needed by professionals throughout their career Therersquos a base level of competence that is needed but beyond that there is more There is business acumen the ability to communicate and influence and finally the ability to lead So you start off enhancing your raw technical accounting skills Then you need to place that into the context of the business that you are in Then as you move forward and as you rise to become the CFO yoursquoll need the others You have to learn how to present your work in a way that can influence and make an impact in the business The final piece is the ability to lead projects and other functions and to a great extent lead the board of directors Thatrsquos how the context works itrsquos not just about technical knowledge
How do you find that CFOs in the GCC region are responding to this programmeThe CFO has a real challenge on his hands now In 1975 80 per cent of corporate value is showing on the balance sheet By 2010 that dropped to less than 20 per cent Your traditional PampL reports no longer reflect the value of the business or how the business drives value
All things that should be of interest to investors is missing With things like the integrated report initiative wersquore starting to see the other dimensions that add value to business For CFOs thatrsquos all about strategic thinking and considering the long-term objectives Being articulate in implementing those strategies keeping in mind the risks and opportunities that the business faces We are also nowadays witnessing a whole new world of transparency around that
Are there electronic aspects to CIMArsquos advancing approachThe interactive case study simulates a real working situation and it tests how they can apply their knowledge in real life situations Theyrsquoll be presented with a scenario a few weeks before they take the exam so they can prepare for it They then go to an exam centre where they are asked questions about how they will deal with a certain situation in the real world Theyrsquoll get an email from the CFO giving them a certain task for a particular period of time We want to make it as close to reality as possible so students taking the exam will be assessing situations based on real life scenarios
ldquoThe CFO has a real challenge on his hands now as traditional PampL reports no longer reflect the value of the businessand [the role] must focus on strategic thinking and considering long-term objectivesrdquo
218KCIMA members worldwide
STAT FACTS
CIMA INTERVIEW
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
38
ERPANALyTICS
wwwthecfomecom
Faster more nuanced IT solutions are available to the modern day CFO Whilst Chief Financial Officers are called upon to analyse data across a number of spectrums the digital tools on hand are likewise being expanded to aid in focusing more squarely on the bottom line
ExCELLING WITH ERP
The global landscape is today firmly entrenched within a digital model As a result CFOs whom are called upon to take a larger role in a number of variables must also increase their abilities with respect to utilising the many upsides which tech innovations offer a business When surveyed about their most pressing concerns CFOs generally return a varying collection of responses Revenue growth regulatory changes and meeting quarterly goals are among the chief concerns Virtually every obstacle can be hurdled by way of maintaining the order of financial reporting and data which has long been
synonymous with the Chief Financial Officerrsquos remit A widening berth of ERP solutions is making this data all the easier to come by
Despite how sophisticated the market is today it was not long ago that ERP departments once spent days processing business reports
Said Rohan Tejura Assistant Vice President Focus Softnet ldquoTraditional ERP systems were solely data repositories Moreover these repositories werenrsquot real time and were incredibly dependent upon locational connectivity With the emergence of smarter development platforms more versatile devices and
39
ERPANALyTICS
wwwthecfomecom
more intuitive designs of system development the overall experience of the ERP now extends from data warehousing to reporting analysis trend mapping business intelligence and governance oriented capabilities Yet these solutions amazingly execute all of these deliverables via portable handheld devices and through cloud environmentsrdquo
New generation ERP systems must now be on the go whilst including up to the minute analytics to provide deeper insight into the business ERP Analytics tools use historical data captured from various business functions to provide valuable information for efficiency and business performance each incredibly priceless to a leading CFO
Finesse is an ERP provider which is continually addressing the transformation of output which the ERP industry is offering the equally transitioning role of CFO
ldquoWe provide end-to-end business management solutions to SMEs and Enterprises Our approach to ERP is much more than providing simply an operational management systemrdquo said Finesse COO Sunil Paul
ldquoWe believe that todayrsquos businesses need much more than integrating sales with inventory accounting and manufacturing but also to have seamless integration with all their sales channels including the point of sales ecommerce and inbound sales solutionsrdquo
A major im-petus of the ERP-cen-tered growth is based on how effec-tive com-prehensive real-time data proves to be for the CFO
40 wwwthecfomecom
before thereby creating new global benchmarks for overall economic growth
Microsoft Arabia CFO Sadrul Khan offered insight into just how far the knowledge economy has influenced regional financial leadership by explaining how one of the most prioritised technologies by CFOs in the region is social platform monitoring
ldquoOne of the five technology choices that CFOs tend to prioritise in boosting productivity efficiencies and faster decision making in the fast paced business environment which include a social platform that monitors trends customer sentiments and helps process mashable data for customer centricity and business growthrdquo said Khan
A major impetus of the ERP-centered growth is based on how effective comprehensive real-time data proves to be for the CFO Whether employed as on-premise ERP software-as-a-service or cloud-based solutions a nearly identical ethos is being utilised Allowing the CFO to quickly access the performance of all facets of a business is paying dividends in the boardroom a reality which is showing itself increasingly in the Middle East
The technologically-charged relationship between ERP solutions and the regionrsquos CFOs is expanding and as a result has catalysed what many see as GCC economic performance outstripping that of many economies outside of the region as a result
In order to compete in todayrsquos fiercely competitive environment organisations need to think both innovatively and out of the box They require more insights about their business and their customers and need to ensure that they are able to meet the expectations of their internal as well as external stakeholders Enormous amounts of data both structured and unstructured is continuously being generated within the internal and external systems of the organisation which if analysed can be of immense value both to the business and subsequently the stakeholders associated with the organisation
With the the era of CFOs labouring over spreadsheets now in the past given how many business frontiers have become so dependent on mobile options such as the cloud more and more tech companies are providing the regionrsquos CFOs with information technology that converts traditional internal and external data into rich visual insights This information is then used for faster decision making and provides the ability for a CFO to assess manage and control risks Regional CFOs have grown enabled to drive corporate strategy accordingly demonstrating how the knowledge economy is now in full force amongst the Gulfrsquos corporates
Given that advanced IT has now become a regular CFO tool the regionrsquos CFOs are subsequently making faster decisions and driving internal growth models with greater speed and agility than ever
Tech companies are providing the regionrsquos CFOs with information technology that converts traditional internal and external data into rich visual insights
ERPANALyTICS
Donrsquot discoveritrsquos counterfeittoner afteritrsquos too lateOriginal HP Toner works first time every time1 unlike cheap toners which fail over half of the people who try it2 Non-HP toner can compromise your printerrsquos performance to give you streaked blotchy or faded prints Only original HP Toner cartridges deliver unmatched quality for the most professional-looking prints 100 of the time1
1 A QualityLogic 2010 study commissioned by HP comparing original HP LaserJet Monochrome print cartridges with nine brands of non-HP toner cartridges available in Europe Middle East and Africa for the HP LaserJet P1505 and P4015 printers HP 36A and 64A For details see wwwqualitylogiccomEMEAmonotonertestpdf 2 From a 2012 EMEA Lyra Research study commissioned by HP Results based on a total of 1050 HP Color LaserJet users who have used both original HP and non-HP toner cartridges of whom 552 experienced problems with non-HP cartridges
copy 2014 Hewlett-Packard Development Company LP
42
Private Equity ANALyTICS
wwwthecfomecom
The rise of PE-backed acquisitions is forcing CFOs to develop an entirely new set of skills
THE PRIvATE EQUITy CFO
The CFOrsquos utility in the world of private equity is without question on the rise The once-held belief of the CFO existing solely as the ldquoaccounting guyrdquo has been abandoned Over the last 20 years the role of CFO has become more demanding - requiring not just finance and accounting acumen but also a financial literacy in corporate planning risk management MampA assetliability management and regulation This evolution has been driven by a number of
key factors Yet the private equity industry which is now reshaping the corporate landscape through active ownership is by far the most significant factor driving change within the role of the CFO
PE-backed buyers today represent a larger percentage of overall buyers in the corporate acquisition marketplace than ever before Data provider Prequin estimates that as of June 2014 the capital raised by PE funds that
has not yet been deployed amounts to $114 trillion globally The result of this ldquodry powderrdquo is that a vast quantity of corporate acquisitions in the coming years will be undertaken by the private equity industry As such CFOs will be more accountable to demanding ldquosmart moneyrdquo shareholders than at any point in recent history Budgeting accounting and financial reporting will no longer exist as sole priorities but as a core competency among a
ldquoBy effec-tively using real-time data CFOs can create a dynamic process that proac-tively drives performance account-ability and value crea-tionrdquo
By Aaron Heidari
43
Private Equity ANALyTICS
wwwthecfomecom
robust set of complimentary and required skills Most of all the bar for CFOs is rising as PE investors will only accept above-average performance from their management teams
CFOs were once more reactive in function setting budgets based on other executivesrsquo plans and managing the flow of reporting to shareholders on a quarterly and yearly basis Today CFOs are required to become proactive managers of their respective businesses alongside their C-suite compatriots using a granular data-driven approach to aggregate analyse implement and report on every aspect of a companyrsquos operations
An important tool to drive this value creation process are KPIs Yet KPI structures including both aggregation and output are generally not up to the standards required of private equity investors prior to an investment being made
ldquoThe benefits of using KPIs and monthly reporting packages are significant By effectively using real-time data that is actionable and by partnering with functional area leaders within the organisation company CFOs can create a dynamic process that proactively drives performance accountability and value creationrdquo said Amanda Robinson Vice President of Accordion International in Dubai a consulting firm which is comprised of former private equity and investment banking professionals who
MENA region Cumulative Funds Under Management Since 2008
Source Zawya private Equity Monitor
19 636 20 36321 586
22 64323 506 24 250
-
5000
10000
15000
20000
25000
2008 2009 2010 2011 2012 2013
Cu
mu
lati
ve f
un
ds
($ m
)
$15mAverage MENA PE investment size in lsquo13
50Percentage of investment in IT and energy sectors
STAT FACTS
44 wwwthecfomecom
work with companies to deliver cost-effective project execution services
Active shareholders whose money it is being spent will typically require a data-driven justification before approving any budgets capital expenditures or new acquisitions Furthermore in many private equity backed companies the use of debt and the matching of shorter-term bank financing with longer-term investments will only be considered after a robust analysis is conducted to understand the companyrsquos ability to service that debt in the future This evaluation is not simply to identify revenues expenses and profits Itrsquos about drilling down into every transaction and rooting out data processing and reporting At least that is the expectation
The most valuable CFOs are those who have the ability not just to scrutinise and understand the financials but all also possess a wider grasp of the underlying data which truly comprise the business As an investor who has just acquired a stake in a new business I want a CFO who can manage the transition and stay ahead of my expectations Most of all a CFO should impress upon the companyrsquos shareholders a new way of doing business The first 100 days of an acquisition are said to be the most important During this period the CFOrsquos worth will be established when the new financial plan is due and the platform for the next five years of growth is presented
A CFO should man-age the tran-sition stay ahead of expectations and impress upon the companyrsquos shareholders a new way of doing business
Investment Volume By Sector Since 2006
Investment Volume By Sector in 2013
Source Zawya private Equity Monitor
1
3
30
17
3
28
3
4
6
4
6
5
17
9
9
6
9
5
8
6
6
2
3
10
Education
Education
Information Technology
Information Technology
Other
Other
Telecoms
Telecoms
Media
Media
Transport
Transport
Oil amp Gas
Oil amp Gas
Healthcare
Healthcare
Consumer goods
Consumer goods
Food amp Beverages
Food amp Beverages
Leisure
Leisure
Manufacturing
Manufacturing
ANALyTICS
Private Equity
2000857 NBAD ratibi mag ad 200x268 Finalindd 1 92514 1017 AM
46 wwwthecfomecom
THE FUTURE OFACCOUNTING EDUCATIONAddRESSINg THECOMpETENCY CRISIS
Have you ever stopped to think about how the accounting profession has changed since you graduated from college Recent graduates can answer this question by reflecting on the last two or three years whereas for other more seasoned professionals answering this question requires a bit more thought and memory searching Indeed we can all think of ways that the field of accounting is remarkably different today from the one we likely envisioned during our college daysmdashregardless of which decade we each donned our cap and gown This gradual transformation of the accounting profession leads to two important questions related to competencies bull Which competencies are important for success inaccounting todaybull Were these competencies consciously developed as partof your accounting degree programme
We suspect that more than a few of you would answer ldquonordquo to the second question Put another way our profession may be facingmdashmore so than at any time in the pastmdasha ldquocompetency crisisrdquo that is a gap between the competencies needed for professional success and those taught in our college classrooms today We propose a three-pronged strategy or ldquogame planrdquo for overcoming this competency crisis and in turn better preparing accounting graduates for the challenging world they will face First all of us accountants need to understand the changes that have already taken place in our profession and perhaps more importantly anticipate the changes that are on the horizon Second we need to educate ourselves and future generations of accountants so that as a collective group we can deliver the expanding set of competencies demanded in todayrsquos dynamic organisational
contexts Third as professional organisations and as individuals we need to think beyond ourselves by asking How can I (or we) help the accounting profession address the competency crisis
A Shift Toward Integrated ThinkingMany articles and white papers have been written that describe in detail the changes that have occurred in our profession over the last few decades but for our purposes wersquod like to distill these changes down to one crucial idea How does the accounting function add value to an organisation Accountants have evolved from support-oriented personnel who hand off information to others who actually make decisions into business partners who ldquohave a seat at the tablerdquo with managers
By peter C Brewer James E Sorensen CpA CgMA and david E Stout
47wwwthecfomecom
1048576bull What regulatory risks mayaccompany the proposal
1048576bull What social and environmentalfactors will we face if for example the proposal requires investing in overseas operations
1048576bull What types of employeeresistance may arise if we implement the proposal and how will we overcome the root causes of any such resistance
1048576bull Can and how should we valuefuture options associated with the proposal such as expanding or contracting the investment over time as new information becomes available
1048576bull Should we use debt or equity tofund the proposal
In short accountants have evolved to become integrated thinkers who enable EPM by partnering with managers across the organisation to add value Yet as EPM has gradually become the centrepiece of our professionrsquos value proposition accounting education hasnrsquot done enough to embrace it To overcome this gap wersquod like to further suggest that the concepts of competency integration and EPM need to come ldquofront and centrerdquo as we move forward in educating the next generation of successful accounting practitioners
Accounting Education No Longer on the SidelinesRecently a task force consisting of members of IMAreg (Institute of Management Accountants) and members of the Management Accounting Section (MAS) of the American Accounting Association (AAA) addressed the competency issue How should accounting education change fundamentally to help close the competencies gap The efforts of the task force led to
cash flows and how to apply discounted cash flow (DCF) decision models such as net present value (NPV) is of foundationalmdashsome might say critical mdash importance But integrated thinkers draw on an understanding of organisational strategy coupled with a broader set of competencies (beyond what might be considered technical or foundational knowledge) when making these types of decisions For example they consider how behavioural issues may influence the capital investment decision-making process Perhaps the financial estimates contained in the NPV analysis are too optimistic because the manager who prepared the numbers has a vested interest in seeing the project approved Decision makers also need to consider issues such as leasing vs buying a capital asset and the corresponding impacts on the financial statements and ratios that are tracked by investors and lenders What nonfinancial factors are associated with the proposed investment Add in the tax consequences of capital investment decisions coupled with the need to maintain internal control over any new business processes tied to these decisions and the need to think in an integrated fashion across a variety of accounting competencies becomes apparent
Furthermore becoming a true business partner with managers across the organisation requires more than simply integrating various accounting competencies It also means thinking like a business manager or a chief executive officer (CEO) Returning to the capital budgeting example an integrated thinker will ask questions such as
across the organisation Together they formulate and plan strategies then participate in collaborative decision-making processes that execute those strategies in a manner that adds stakeholder value Said another way accountants have evolved to become enterprise performance managers This shift in our orientation from a support function to an enterprise performance management (EPM) role has enormous implications for defining the determinants of success within our profession the most important of which involves becoming collaborators and ldquointegrated thinkersrdquo Take for example a common but important business decision process capital investment analysis Certainly technical knowledge regarding how to estimate relevant after-tax
48 wwwthecfomecom
expanding capital budgeting discussions to include financial statement impacts tax consequences and internal control issues integrates topical coverage across the External Reporting and Analysis Taxation Compliance and Planning and Assurance and Internal Control competencies shown in Figure 1
Third accounting curricula can incorporate a broader set of management competencies For example evaluating capital investment proposals from the perspectives of change management (Leadership) social and environmental issues (Ethics and Social Responsibility) regulatory concerns (Governance Risk and Compliance) and capital structure (Additional Core Business Competencies) brings a CEOrsquos perspective to the decision-making process
Fourth accounting curricula should include foundational competencies such as proficiency with spreadsheets and written and oral communication In the context of capital budgeting this may include asking students to use Microsoft Excel to perform a sensitivity analysis and then to present their findings to the entire class
Working to Fix the ProblemAt this point although you may agree with us that therersquos a competency crisis within the accounting profession you may be wondering What does this have to do with me What can my organisation do to help address this so-called competency crisis The answer a lot Practice partners and academic partners can help the accounting profession overcome the competency crisis That said letrsquos take a closer look at the role of practice partners first
improvement) and accounting competencies (external reporting and analysis planning analysis and control taxation compliance and planning information systems assurance and internal control and professional values ethics and attitudes) Of critical importance to the framework is the assumption that the set of competencies contained in Figure 1 would be developed and integrated over time through a blend of formal education (including continuing education) training and job experience
What levels of integrationmdashon the road to developing integrated thinkers in accountingmdashare possible First accounting educators can integrate within a single accounting competency So referring back to our capital budgeting discussion teaching computational models such as NPV analysis coupled with a review of various behavioural issues associated with capital investment decisions would be an example of integrating within the Planning Analysis and Control competency listed in Figure 1
Second professors can integrate across accounting competencies For example
a recently published article that contains a proposed framework for accounting education reproduced here as Figure 1 The framework is general in the sense that itrsquos meant to apply to all accounting students not subgroups based on career specialisation such as tax assurance services corporate finance and the like Itrsquos based on the idea that accounting educators can better prepare students to deliver our professionrsquos EPM value proposition through integrated competency-oriented curricula (For more see ldquoFocusing Accounting Curricula on Studentsrsquo Long-Run Careers Recommendations for an Integrated Competency-Based Framework for Accounting Educationrdquo in the May 2014 edition of Issues in Accounting Education)
A glance at Figure 1 reveals three levels of competencies foundational competencies (communication ability to leverage technology and analytical thinking and problem solving among others) broad management competencies (including leadership ethics and social responsibility and process management and
Proposed Competencies-based Framework for Accounting Education
FOUNDATIONALCOMPETENCIES
ACCOUNTING COMPETENCIES
BROAD MANAGEMENT COMPETENCIES
leadership
ExternalReportingamp Analysis
PlanningAnalysis
amp Control
TaxationComplianceamp Planning
InformationSystems
Assuranceamp InternalControl
ProfessionalValues Ethics
amp Attitudes
Communication
Quantitative
Interpersonal
Technological
Analytical Thinking ampProblem Solving
Ethics amp SocialResponsibility
ProcessManagement ampImprovement
GovernanceRisk amp
Compliance
AdditionalCore BusinessCompetencies
Although you may agree with us that therersquos a competency crisis within the account-ing profes-sion you may bewondering What does this haveto do with me
A practice partner should be or become a CMAreg (Certified Management Accountant) maintain professional certification by completing required Continuing Professional Education (CPE) hours and regularly read the IMA publications Strategic Finance and Management Accounting Quarterly
In addition there are a number of excellent resources that deal with topics covered in this article and that IMA makes available to its members
Strategic Finance PowerPacks(wwwimanetorg SFPowerPacks) These are resources focused on contemporary topics similar to those discussed earlier Current offerings include Risk Management Strategic Planning IT Skills amp Software and Internal Controls Each PowerPack includes a combination of resources such as research studies articles and links to webinars
Statements on Management Accounting (SMAs)(wwwimanetorgresources and_publicationsresearch_ studies_resourcesstatements on_management_accounting aspx) SMAs represent monographs classified into one of the following six categories Leadership Strategies and Ethics Technology Enablement Strategic Cost Management Business Performance Management Finance Governance Risk and Compliance and the Practice of Management Accounting Multiple items are available within each category For example the Practice of Management Accounting category includes (among other items)
49wwwthecfomecom
the Definition of Management Accounting and Implementing Shared Service Centres
Research Studies (wwwimanetorgresources_and_publicationsResearch_Studies_and_ResourcesAll_reportsaspx) The ldquoThoughtLeadershiprdquo section of IMArsquos website includes research covering a broad range of issues classified into seven categories For example under the ldquoGlobal Business Environmentrdquo category the following two research reports are available ldquoKey Differences Between IFRS and US GAAP Impact on Financial Reportingrdquo and ldquoCosting Methodologies and Cost Management Practices in the Peoplersquos Republic of Chinardquo
IMA Leadership Academy (www imanetorgprograms_events leadership_academyaspx) As described on the IMA website this programme is designed to assess a memberrsquos leadership status enhance that individualrsquos skills (principally through monthly webinars) and recognise leadership achievements These benefits are free to members
How You Can Make a Bigger Impact In addition to attending local regional and national IMA meetings consider inviting a small group of students to each chapter meeting This could be a wonderful (and relatively low-cost) option for mentoring aspiring accountants and finance professionals providing networking opportunities and introducing students to cutting-edge issues regarding the practice of management accounting Joining a university accounting
advisory group may be another way to influence the development of EPM in that institutionrsquos curriculum design
Other methods to enhance EPM in your organisation include (1) forming user groups within your company your local IMA chapter or your industry to review and share EPM experiences (2) encouraging advancement in the firm to be linked to EPM proficiency (3) focusing your companyrsquos recruiting efforts on candidates who display a background in andor understanding of EPM and (4) organising cross training within your company to enhance a mutual understanding of each otherrsquos respective roles
Finally visit the Competency CrisisTM website (http competencycrisisorg) set up by IMA to unite the accounting and finance constituencies professionals students employers academics and professorsmdashand explore competency issues through the lens of each stakeholder group The site is designed to ldquoencourage a discourse spur action and create a community dedicated to resolving the serious crisis of competency present in the professionrdquo Special sections of the website are devoted to educators students and employers professionals
Our Partners in Education Much like a practice partner an academic partner should be or become a CMA maintain professional accreditation by completing CPE hours and regularly read IMArsquos publications
Academic members of IMA can pursue and actively promote the CMA programme at their respective institutions
50 wwwthecfomecom
IMArsquos website contains helpful resources including an exam content overview content specification outlines for each of the two parts of the CMA exam and learning outcome statements The current exam covers some of the professional competencies represented in Figure 1 A summary of changes to exam content which will be effective in January 2015 is provided on the IMA website in News amp Media Relations which is located under ldquoAbout IMArdquo (See the press release dated March 24 2014) Other helpful resources include ldquoICMA Announces CMA Exam Content Changesrdquo in the April 2014 issue of Strategic Finance as well as ldquoManagement Accounting Career Readiness Shaping YOUR Curriculumrdquo
These forthcoming changes are based on the most recent IMA study of the knowledge and skills needed by management accountants from the view of CFOs controllers and other accountingfinance professionals from around the world
Also consider taking a group of your students to the IMA Student Leadership Conference held each November The Conference provides excellent networking opportunities for you your students and practicing professionals Students can learn firsthand from Conference presenters the challenges and opportunities facing finance and accounting professionals today
Moreover if your institution doesnrsquot currently have an IMA Student Chapter consider forming one One of the authors of this article David Stout reinstituted the student chapter at his school (Youngstown State University) after travelling with a group of his students to the IMA
Student Leadership Conference in Cleveland Ohio Through an IMA Student Chapter on campus students are able to work closely with a sponsoring local IMA chapter and bring to campus speakers who are experts in a wide range of topics including those discussed earlier in this article Each year student chapters compete for an Award of Excellence (AOE) and recognition as an Outstanding Student Chapter In addition IMA student members are able to engage in networking activities leadership training mentoring and community service programmesmdashall through their local chapter
You also might consider volunteering to serve as a Campus Advocate In this role yoursquoll represent IMA in all major matters of interest to your students (scholarship opportunities starting a student chapter mentoring and the like) and to your institution (for example leveraging IMA resources to advance the relevancy of the accounting curriculum use of educational case studies published in the IMA Educational Case Journal and access to IMArsquos ethics curriculum)
And if you havenrsquot yet done this ask IMA to endorse your accounting programme (information is available at www imanetorgeducator_resources indexaspx) This programme is designed to identify business curricula that meet the quality educational standards required to prepare students to earn the CMA designation Endorsement is based on an analysis of the curriculum and topics covered on the two-part CMA exam Currently 12 programmes have been endorsed
Finally if your school has an IMA Student Chapter consider participating in the annual IMA Student Case Competition where students are asked to propose a solution to a real world problem (Cases are solicited each year by Raef Lawson IMA VP of Research and Policy and IMA Professor in-Residence) Finalists make their presentations at IMArsquos Annual Conference amp Exposition before a set of judges consisting of accounting faculty members and practitioners Each year a new case is published in the August issue of Strategic Finance for students to use for that yearrsquos competition
Working TogetherIn this article we have summarised the changes that have affected the accounting profession and provided a competencies-based framework for guiding accounting educators in responding productively to those changes As a management accountant you know that implementing change in any organisation let alone within an entire profession never comes easily To be successful in overcoming our professionrsquos competency crisis IMArsquos practice and academic partners will need to assume leadership roles in defining enterprise performance management as the cornerstone of the accounting professionrsquos value proposition
This article was orginally published in the August 2014 issue of Strategic Finance It appears here with the permission of The Association of Accountants and financial professionals in Business
We need to educate ourselvesand future generations of account-ants so that as a collec-tive group we can deliver theexpanding set of com-petenciesdemanded in todayrsquos dynamicorgani-sational contexts
THE POWERFUL AND THRIFTY OFFICE ALL-ROUNDERS
The new ECOSYS M3560idn series will astound you With their print speeds of up to 60 pages per minute they are among the most productive A4 bw multifunctionals on the market We nevertheless managed to keep their ecological footprint and total cost of ownership impressively low by using our well-known ECOSYS technology and equipping the devices with our renowned long-life components The result Not only less waste and lower maintenance costs but also less hassle for you and all your colleagues You will also greatly appreciate the many customisation possibilities of the devices equipped with KYOCERArsquos open solution platform HyPAStrade as it allows you to tailor the device to your needs So yes we are proud of our new range of MFPs and can hardly wait to share their numerous benefits with you
For more information please contactKYOCERA Document Solutions Middle East | PB Box 500817 DubaiUAE | Tel +9714 4330 412 | Fax +9714 4231 944KYOCERA Document Solutions Europe BV - wwwkyoceradocumentsolutionseuKYOCERA Document Solutions Inc - wwwkyoceradocumentsolutionscom
52
ACCAINTERVIEW
wwwthecfomecom
GLOBAL By ASSOCIATION
across the region from our key employers and learning provider partners to our active and growing student and member base I want to understand their challenges and priorities and how ACCA can work with them to help support the economic success of the region
What can a CFO gain from working with ACCAThe ACCA qualification is about complete finance professionals For CFOs it brings the technical knowledge vital to business success complemented with the strategic management skills and ethical competence crucial to an organisationrsquos success As an organization ACCA in the UAE brings CFOs access to that local and global network of peers and expertise along with our leading research and insights that help them to keep up to date on the issues that matter most
Are there any initiatives in place to leverage the recently announced partnership with AAA
How are the ACCArsquos many years of activity being applied to the Middle EastACCA has now had a presence in the UAE for well over a decade During that time we have established strong relationships across the Middle East epitomised by the recent signing of our Strategic Partnership with AAA As a national body in choosing to partner with ACCA they recognised the local and global perspective we bring We are continuing to work with students members and employers across the Middle East to build their networks knowledge and business success through events research and insights and access to a growing number of online resources
Which initial priorities are among your key aims upon joining the organisationrsquos efforts in the UAEIn the first few months I hope to build on the success of the team in the UAE My priority will be to meet as many of our key stakeholders
The Association for Chartered Certified Accountants (ACCA) provides its services across a number of international borders The recent announcement of Lindsay Degouve de Nuncques as the new head of the Associationrsquos UAE chapter further exemplifies the ACCArsquos reach based on her previous work in the UK Nuncques shares here what she brings to the Middle East and just how globalisation has driven her ascent
53
ACCAINTERVIEW
wwwthecfomecom
The strategic partnership with AAA is the first of its kind in the region Students who complete the UAECA qualification will be entitled to both the AAA and ACCA designations and ACCA members in the UAE will also be eligible to apply for AAA membership This is a very exciting development in the market and together AAA and ACCA will be working to deliver maximum value to all our stakeholders from this partnership As we launch the UAECA qualification this activity will start in earnest
Which key industries will you be spotlighting in the Middle East in the months aheadOur experience of working across all sectors and levels of organisations globally gives ACCA a unique insight into all types of industries We will continue to be working with employers across the spectrum in the months ahead to help them gain the insight and make the connections that drive businesses to succeed at whatever they do
ldquoThe ACCA qualification is about complete finance professionals For CFOs it brings the technical knowledge vital to business success complemented with the strategic management skillsrdquo
54
Islamic FinanceMARKET OUTLOOK
wwwthecfomecom
In its 10th instalment the Forum is hosted in Dubai as a direct result of the UAErsquos increasing importance in the world of global Islamic finance
THE WORLD ISLAmIC ECONOmIC FORUm LANDS IN DUBAI
In Dubairsquos continued quest for leading the world across a range of spectrums the Emirate accelerated its desire to become the worldrsquos leading hub for Islamic finance by hosting the 10th installment of the World Islamic Economic Forum (WIEF) Delegates from dozens of countries attended to take part in a three-day event held at Madinat Jumeirah which rests alongside Dubairsquos gleaming coastline Held under the patronage of His Highness Sheikh Mohammed Bin Rashid Al Maktoum the
Vice President and Prime Minister of the UAE and Ruler of Dubai key speakers included The Honorary Dr Zeti Akhtar Aziz Governor of the Central Bank of Malaysia HE Kairat Kelimbetov Governor of the National Bank of Kazakhstan The Honorary Datorsquo Sri Mohd Najib Tun Abdul Razal Prime Minister of Malaysia and HE Xavier Bettel Prime Minister of the Grand Duchy of Luxembourg
Launched in 2006 in Malaysia WIEF has grown in tandem with the increased
Delegates from dozens of countries attended WIEF to take part in the three-day event
sophistication and reach of Islamic finance After a successful event in London in 2013 amidst increased interest in Islamic finance across Europe WIEF relocated to Dubai where the local business structure is keen to host halal finance
Said Hamad Buamim President and CEO Dubai Chamber of Commerce and Industry co-organisers of the event ldquo[The forum] is the start of a new chapter of cooperation between Dubai and the world as part of
55
Islamic FinanceMARKET OUTLOOK
wwwthecfomecom
Dubai Capital of Islamic Economy visionhellipestablishing a unified regulatory authority to provide the framework for standards across halal industries will significantly accelerate growth Likewise we need to see increased cooperation and partnership between the public and private sectors This is already happening with great success here in Dubairdquo
The order of global cooperation needed to facilitate growth across the Islamic finance world was more than apparent at WIEF based on how many differing nations were represented at the event The exhibitorrsquos hall was populated with a number of key Malaysian stands representative of the Southeast Asianrsquos ranking as the global leader in Islamic finance Also present were companies from Saudi Arabia also a key locality in the worldrsquos halal industries An interesting yet prescient presence was of attendees from South Korea a nation which is eager to participate in Islamic finance and will be hosting the WIEF Pyeongchang Roundtable in December 2014
ldquoGangwon is a province located in Korea which is very interested in new business opportunities Wersquove realised the strength of the Islamic economy and have come here with many different companies The first type is based in real estate investment We also have companies which want to export their products to the Islamic economy based on their halal qualities And Gangwon will also be hosting the Winter
ldquoKorea is very interested in the strength of the Islamic economy and wants to export its products based on their halal qualitiesrdquo
56 wwwthecfomecom
$247trillionProjected value of halal products industry in lsquo18
125Muslim percentage of global tourism expenditure
STAT FACTSOlympics in 2018 and are presently seeking investments for this as wellrdquo said Seong-hun Kim a member of Gangwon Province Governmentrsquos Export Support Team
Dubai proved to be an excellent place for the event considering how well the UAE is able to so regularly corral international cooperation A key sign of this was witnessed recently when Luxembourg now considered the third most important base for Islamic finance globally opened a finance office in Dubai International Finance Centre The European nation also opened a euro200 sukuk earlier this year which was quickly oversubscribed
The prime minister of Luxembourg offered the WIEF audience a riveting speech which detailed just how international the Forum has become whilst encouraging more of the world to support the growing influence of Islamic finance
Said Bettel ldquoWe need to innovate more economic partnerships for growth We sometimes need to reengineer relationships but also have to make sure these relationships remain sustainable Growth in one country also brings growth to others as long as this is guided by free market initiatives Free trade and free flow of capital combined with innovation leads to prosperity We have all gathered here in Dubai to explore the future of Islamic finance and Luxembourg is also a pioneer of Islamic finance in Europe The Islamic financial sector has a major role to play in continued global growthrdquo
The Islamic Corporation for the Development of the Private Sector (ICD) is based in the Kingdom of Saudi Arabia where it manages an international fund worth $2 billion half of which is available for subscription With shareholders in more than 50 countries and a sovereign sukuk fund recently launched in West Africa the ICDrsquos CEO Khaled M Al Aboodi attended WIEF this year excited to participate in the global event
How does the ICD approach its attendance at the World Islamic Economic ForumI think the Forum is one of the best places for discussing the financial issues of the OEC member countries It has been around for ten years and has grown to become a very important platform for discussion Wersquore here to attend and listen but also to network Itrsquos a great networking platform and a place to share views whilst letting everyone know what we have to offer
How has Islamic finance changed over the yearsOf course itrsquos growing in a large scale Some of it actually needs more support particularly with respect to regulatory frameworks Wersquore trying to partner with many international organisations like the IMF to try to provide support to countries to adapt regulation for Islamic finance Sukuk issuance is one of the biggest issues that needs to be addressed because there is a huge amount of liquidity in this arena Due to issues related to regulation sukuk issuance can be costly But with the regulation we are confident it will be on a level playing field with other forms of finance Compliance is a major area where more work can be done The Forum started with a roundtable on sukuk which shows how helpful WIEF has been over the years
What type of work does ICD do internationallyICD helped the government of Senegal to issue the first sovereign sukuk This was successfully issued last summer Progressing in this manner is something wersquod like to see continue across West Africa in order to utilise its resources with aiding development in the region in mind
QampA WITH KHALED M AL ABOODI CEO OF ICD
Islamic FinanceMARKET OUTLOOK
OFFICIAL SPONSORS
ENDORSED BY OFFICIAL HOST OFFICIAL
COMMUNICATIONS PARTNER
MEYDAN HOTEL DUBAI UAE19 - 20 NOVEMBER 2014
WOMENOMICSthe next emerging market
TAKE PART in making change happen UNITE with business and through leaders from across the globe
PARTICIPATE to the expansion of a modern and inclusive economy
58
Gautam PradhanINTERVIEW
wwwthecfomecom
SUCCESS BEyOND BOUNDARIES
in other management roles such as strategic decision making mentoring and leading efficiency and productivity across a range of other departments and functions as well as a being a catalyst in ensuring that the boardrsquos vision for the organisation is achieved
A significant percentage of NMDCrsquos shares are owned publicly Does the CFO play a role in balancing the interests of the shareholdersAs a CFO balancing the shareholdersrsquo interests is definitely part of my responsibility In order to achieve this goal there needs to be a careful evaluation of each decision while keeping the short-term and long-term goals of the company in mind At NMDC we actively implement a system where we utilise a balance scorecard as a method of ensuring that all our primary objectives are met yet at the same time continuously enhance our relationships with our shareholders
NMDC has completed various projects across the Emirates Are there plans to move abroadAs NMDC moves towards becoming an international player our strategic expansion plans are focused in areas within the GCC region and India In line with this strategy we opened
How has a company with such a unique set of deliverables grown so consistently over the yearsOur organisation strongly believes that the core to our strength is the people process and equipment A strategic decision led by our Board of Directors and the senior management has been implemented that required us to consistently invest in these three aspects to help expand our business beyond the territorial boundaries of the UAE and at the same time enhance what we can offer which is relevant to these segments We attribute our success to the efforts which every employee contributes We also strongly believe in the ldquoWe can make it happenrdquo principle The management raises the index of performance while setting SMART objectives within the organisation and encouraging the employees to achieve them
How has your position as the CFO changed over NMDCrsquos 35 years of operationAs the market evolves and business dynamics change my role as the CFO has become complex and more challenging A few years back I was mainly focused on bookkeeping accounting and other financial responsibilities such as arranging bank facilities But moving forward I became more involved
The UAE is progressively becoming a hub for world-class infrastructure The country has duly impressed the rest of the globe with noteworthy land developments showcased across the emirates Among the remarkable landscapes found in Abu Dhabi are the Corniche Beach Yas Island and Sir Baniyas Island Behind these successful projects is NMDC the dredging division of Abu Dhabi National Oil Company (ADNOC)
In an interview with CFO Magazine Gautam Pradhan Chief Financial Officer NMDC shares an exclusive look into the companyrsquos international blueprint for growth and his dynamic role as a strategic leader of one of the best in dredging and marine construction in the Middle East
59
Gautam PradhanINTERVIEW
wwwthecfomecom
branches in Qatar Bahrain Oman and India This has paid rich dividends recently as projects of strategic importance are bagged in Qatar and Bahrain Furthermore NMDC (UAE) has recently played a key role as a leader of an international consortium with Royal Boskalis Westminister (Netherlands) and Jan De Nul Group (Belgium) for the awarding of the Suez Canal Dredging project in Egypt Moving forward we have devised a strategic approach that will enable us to play a key role in the development of Indiarsquos marine infrastructure
What are the global strategies that are part of the CFOrsquos responsibilitiesAs CFO understanding the macro economic scenario risk analysis and mitigating those risks are all a part of my responsibilities I also have to have a proper comprehension
ldquoA few years back I was mainly focused on financial responsibilities moving forward I became more involved in strategic decision making mentoring and leading productivityrdquo
Gautam PradhanINTERVIEW
60 wwwthecfomecom
of the challenges faced by the company in terms of dealing with foreign contracts direct and indirect taxes and hedging and managing the integration process These are essential to enhance shareholders wealth and mitigate undue risk
How significant is accountancy for NMDC in its operations Why exactlyAccountancy is the lifeline of any company it does not only record the finances it also reflects the health of the organisation The MIS reports analysis trends and statistical information go a long way toward effectively providing
the diagnostic approach essential for the company
How have NMDCrsquos environmental activities helped the companyrsquos bottom lineNMDCrsquos work is well-synchronised with our environmental activities and specifically with nature Our activities are closely linked to sand and water and we view such activities with strategic importance Projects such as increasing water supply to mangroves and beach nourishment help us support the environmental activities while adding to our bottom line
ldquoAccountancy is the lifeline of any company it does not only record the finances it also reflects the health of the organisationrdquo
A burgeoning slice of Abu Dhabi coastline
The largest business awards
in the GCC30th November Dubai
nominate now at wwwstarsofbusinessawardscom
Stars of Business has become an iconic awards brand like no other in the region It recognizes the very best SMEs across 26 business categories Itrsquos universally respected as scientifically assessed and unimpeachably judged
327000 SMEs across the UAE$234 billion estimated total revenue of the SME sector4974 Awards entries in 20131856 Individual company applicants
Presenting Partner Strategic SME Partner Gold Sponsor Gold Sponsor VIP Hospitality Partner Supporting Partner
Trade Facilitator PartnerTrade Credit PartnerLogistics Partner
Institutional Partner Institutional Partner Event Partner
OrganiserPublisherMedia Partner Media PartnerPort Authority Partner
62
David Allen INTERVIEW
wwwthecfomecom
What went into completing your bestseller ndash Getting Things Done (GTD)After twenty years of researching developing and implementing a methodology for achieving stress-free productivity based upon
thousands of hours spent desk-side with
some of the best brightest and busiest people in the world I decided to write the manual for it Thatrsquos what Getting Things Done is
What are the five phases of mastering workflowIn order to get
any situation under control so
you can focus you will utilise these five
steps Whether yoursquore managing your kitchen
or your company you will need to collect and capture what has your attention clarify what if anything to do about it organise it according to what it means to you review and reflect upon it in relation to
Todayrsquos evolving CFO is often caught between the world of business set-up generating revenue managing employees and building strong company infrastructure When can things actually get done What can one do to boost productivity and master workflow World-renowned business coach David Allen has the answers
PRODUCTIvITy PRINCIPLES WITH
DAvID ALLEN
63
David Allen INTERVIEW
wwwthecfomecom
those are greatly subvertedHow does one maintain a fair balance between the time spent planning and actually getting things doneYou simply need to spend just the amount of time you need to to trust that what you are getting done is the right thing to be getting done in the moment It takes as long as it takes to get to that point Why would you do anything less
How can one apply your core productivity and workflow principles to todayrsquos technologically driven environmentThe principles and their techniques are system-independent Whether you have meaningful input from the Internet your smartphone or a conversation in the hall you must engage with it equally Technology has simply increased the flow of input and ease of distraction in your world
There is a lot of talk about how connected wersquove become and how connectivity is driving tremendous business growth Does connectivity actually come with its fair share of downsides
Connectivity is obviously a two-edged sword We can have intimate productive and creative interaction instantly with someone on the other side of the world and we can just as easily be distracted and seduced into those engagements when they may not be the best use of our attention and resources Donrsquot shoot the medium Itrsquos all simply bringing attention to your clarity of direction and priorities or lack thereof
Could you share a few quick tips with our readers to instantly boost productivityWrite everything down that has your attention Decide the very next actions required to get closure on all of them Any next actions that require less than two minutes do instantly Park reminders of everything else somewhere that yoursquoll see when you can do something about them
We are currently facing a massive information overload What are some basic principles you could suggest to mentally organise such large amounts of dataConstantly ask yourself Where am I going Whatrsquos important and rewarding to me Is this information
the whole and then engage your resources with intuitive trust
As a CFO how can you transfer efficient workflow management skills to your employees Itrsquos very difficult to legislate processes for individuals ndash you can really only hold them accountable for their results But if you are managing your own commitments and intersections with them with integrity and rigour it will automatically force your team to ldquostep up to the platerdquo in their own behaviours in order to meet your standards If you request their complete list of their company projects and they canrsquot produce it thatrsquos a sign theyrsquore not in control If they make a commitment to you that they havenrsquot kept thatrsquos data about their performance GTD is simply about good operational business practices
With so many planning and organising activities in your methodology is there a risk of losing spontaneity as a strategistThe reason for these best practices is to optimise freedom creativity and spontaneity Without them
ldquoBut if you are manag-ing your own com-mitments and intersec-tions with them with integrity and rigour it will automatical-ly force them to ldquostep up to the platerdquo in their own behaviours in order to meet your standardsrdquo
64 wwwthecfomecom
supporting that Park whatever you find potentially meaningful somewhere that is easy to access when needed
Being an entrepreneur is a non-stop job How do you ensure that you have an adequate work-life balance Pay attention to what has your attentionmdashwith regard to anything Your health relationships career finances etc Notice when something might be ldquooffrdquo and make good decisions about what you need to do to get it back ldquoonrdquo again
Does your work teach people to be efficient or effective In essence they are the same thing Effective choices are generated by efficiency on a higher level If you want to implement strategy most effectively it demands utilising your resources optimally which is efficiency
Does motivation actually improve quality of work or purely quantityDepends on the focus of the motivation You can be motivated to work harder and you can be motivated to work smarter
What is your favourite productivity mantra that
you implement in your day-to-day lifeUsing my own in-basket and note-taking devices to capture potentially meaningful and valuable ideas and soon afterwards clearing all of them out by deciding what to do about them if anything
Your books seminars and other work inspires many individuals and businesses Who is your personal inspiration or role model I have many about many different aspects of my life The only person though that I ultimately trust as my best guide is my higher self which I try to access as frequently and clearly as I can
Finally what advice would you give to current business owners and aspiring entrepreneurs looking to gain complete control of their life and businessCapture what has your attention clarify what you need to do about it to get it off your mind organise the inventory of all your commitments at all levels review and reflect on all of that regularly relax and trust your inner wisdom to engage with the most appropriate thing in the moment
ldquoIf you want to implement strategy most effectively it demands utilising your resources optimallyrdquo
David Allen INTERVIEW
APPSTECH TALK
wwwthecfomecom 65
mAxImISE BUSINESS lsquoON-THE-GOrsquo WITH THESE HANDy APPS
ipAd SpECIAL
SAMSUNG UNvEILS GALAxY NOTE EDGE
Network
AP
Display
OS
Camera
Video
Audio
Additional Features
GoogleMobile Services
Connectivity
Sensor
Memory
Dimension
Battery
The availability of service may differ by country All functionality features specifications and other product information provided in this document including but not limited to the benefits design pricing components performance availability and capabilities of the product are subject to change without notice or obligation
Samsung Galaxy Note Edge Product Specifications
25G (GSM GPRS EDGE) 850 900 1800 1900 MHz3G (HSPA + 42Mbps) 850 900 1900 2100 MHz4G (LTE Cat 4 15050Mbps) or 4G(LTE Cat 6 30050Mbps)May differ by country and carrier
27 GHz Quad-Core Processor
56 inch (1419mm) Quad HD+ Super AMOLED (2560 x 1440 + 160)
Android 44 (KitKat)
Rear Facing 16 Mega pixel Auto Focus camera with Smart OISFront Facing 37 Mega pixel camera with f19Rear Facing Camera HDR (Rich tone) Selective Focus Rear-cam Selfie Beauty face Virtual Tour Shot ShotampMore Dual CameraFront Facing Camera Selfie Wide Selfie
Codec H264 MPEG-4 H263 VC-1 WMV7 WMV8 Sorenson Spark MP43 VP8 Recording amp Playback up to UHD
Codec MP3 AACAAC+eAAC+ WMA AMR-NBWB Vorbis FLAC()() Ultra High Quality Audio (~192KHz 24 bit) support
Multi WindowUltra Power Saving ModeVoice Recorder (Normal Mode Interview Mode Meeting Mode Voice Memo)Download BoosterS Health 35Dynamic Lock ScreenBriefingEdge screen UX Revolving Interaction Immersive apps(Camera Video S Note)Ticker board Express me Quick Tools Night Clock etc
Chrome Drive Photos Gmail Google Google+ Google Settings Hangouts Maps Play Books Play Games Play Newsstand Play Movie amp TV Play Music Play Store Voice Search YouTube
WiFi 80211 abgnac (HT80) MIMO PCIeGPS GLONASS BeidouNFC Bluetoothreg v 41 (BLE ANT+)IR LED (Remote Control) USB20 MHL 30
Gesture Accelerometer Geo-magnetic Gyroscope RGB IR-LEDProximity Barometer Hall Sensor Finger Scanner UV Heart Rate Monitoring SpO2 (Dependent on market)
32 64 GB Internal memory + microSD slot (up to 128GB)3GB RAM
1513 x 824 x 83mm 174g
Standard battery Li-ion 3000 mAh Fast Charging (Adaptive Fast Charging amp QC20)
wwwthecfomecom66
APPSTECH TALK
AIR DISPLAY
SQUARE REGISTER
Using this app you can connect your iPad to your computer and use it as an additional screen While working on an important presentation or sales proposal you can extend or mirror your computer screen on your iPad This app is compatible with both Mac and Windows computers Note that to use this feature you have to install Air Display on your iPad and a separate free app on your computer The computer and iPad also need to be on the same Wi-Fi network in order to work in-sync
For Mac users the app allows you to connect to up to four screens ndash all at the same time
Apart from the ability to convert your iPad into a wireless display whatrsquos also attractive about this app is that it allows you to control your computer wirelessly using your iPad
This fantastic application can serve as a mobile point of sale for your business It allows you to accept credit card payments ndash including Visa MasterCard Discover and American Express A transaction fee of 275 is charged for every time you swipe a card The sale amount is transferred to your account within two working days
Once you download the app you can sign up and register for a unique card reader solution called the lsquoSquare Readerrsquo (this is free) Square Reader encrypts all card details and ensures that the transaction is secure Once you receive your Square Reader you can connect it to your device and are all set
The application also offers added features such as transaction history connecting to a receipt printer creating employee logins and more
AED 3699
PRICE
Free
PRICE
wwwthecfomecom 67
APPSTECH TALK
DOCUSIGNHave you ever been in a situation where your employees need you to urgently sign a contract but arenrsquot able to physically reach you in time DocuSign solves this problem with its easy-to-use eSignature feature In three easy steps you can sign important documents and securely send them to your intended recipient
First you have to import the document to your device ndash this could be from Dropbox Google Drive or another select applications You then place your signature or any other important legal information you need to include such as initials Once you have finished working on the document send it back via e-mail
Whatrsquos particularly great about DocuSign is the great emphasis it puts on security ndash so that users donrsquot have to worry about getting into any legal trouble
Use DocuSign and never miss a deadline again
Free for basic version
PRICE
MPAYAn initiative by the Dubai eGovernment Department mPay is a simple application that allows you to make important payments Once yoursquove signed up and entered your payment details you are good to go You can pay your Dubai Electricity and Water Authority (DEWA) bills Etisalat utility bills Dubai Police fines Recharge SALIK and much more
A handy feature is its lsquoauto-rechargersquo option which you can use to set automatic payments
Free
PRICE
Opinion CIMAPERSONALITIES
wwwthecfomecom68
NEW HORIZONSBy geetu Ahuja Head of gCC at CIMA
The days of the traditional accountant working within a small community in a small town in a small market have long gone CFOs are now being referred to as Chief Frontier Officers as they travel from market to market overseeing their offices overseas This new expanded role has distinct advantages for both the company and the CFO who gain new skills and new insights from foreign branches a single hand at the helm of many markets provides business perspectives on a global scale and benchmarks across the board
On a personal level working abroad also has huge importance Robert Walters the specialist professional recruitment consultancy recently conducted a survey
of almost 2200 employees across a variety of professions exploring a number of topics which ranged from working practices and attitudes to careers The results highlighted some notable trends particularly for finance professionals
In career progression for example the survey showed that 50 of all accountants see working abroad as either lsquoessentialrsquo or lsquoextremely usefulrsquo to furthering their prospects more than banking professionals lawyers and IT workers ndash a strong indication of how accounting professionals are thinking about their future either within their existing company or with opportunities elsewhere
Accountants with globally recognised qualifications obviously have a greater chance of gaining some experience abroad and the lsquoGen Yrsquo professionals in particular seem ready to pack their bags In a CIMA study conducted in the UK last year over a third of those seeking employment in the
next two years will prioritise opportunities abroad over those in their home countries many of them enticed by the career incentives offered by the Middle East
How quickly can they land what seems to be their dream job What are the realities It may be that the move is simply from one branch to another and the only significant difference is a view from the window but for those expanding rather than changing their roles we have seen a very real need for a depth and breadth of knowledge never needed before
As geographical boundaries are pushed ever-wider a CFOrsquos responsibilities are pushed with them For many finance executives the understanding of their own patch of land is no longer enough they now have to be aware of foreign markets up to speed with foreign trends and au fait with foreign laws There is a need for a new commercial awareness in geography as well as philosophy
As geographical boundaries are pushed ever-wider a CFOrsquos responsibilities are pushed with them
John vargheseQampA
wwwthecfomecom 69
BUSINESSSET UP YOUR
IN THE UNITED ARAB EMIRATES
TO
WAREHOUSESOFFICES INDUSTRIAL LANDFLEXI
Quick and easy company set-up
Less than an hour drive from Dubai
Complete cost-effective packages including licences and facilities
100 foreign ownership
Zero income and corporate taxes
Eligibility for UAE Residence Visa
BUSINESS SET-UP SOLUTIONS STARTING FROM AED 15000 (USD 4000)
RAK FREE TRADE ZONE PROVIDES
RAK Free Trade Zone Authority - Government of Ras Al KhaimahUAE (Ras Al Khaimah) Tel +971 7 2041111 (Dubai) Tel +971 4 7041875 (Abu Dhabi) Tel +971 2 6994888
Germany (Cologne) - Turkey (Istanbul) - India (Mumbai)
Call +971 7 204 1111 Visit wwwrakftzcom Join rakftz
31
Market IntelligenceANALyTICS
wwwthecfomecom
LATVIA
CZECH REP
MALAYSIA
THAILAND
SOUTH KOREA
CHINA
RANK75
41
21
50
45
35
74
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
CHILE
RANK 34
43
Projected annual GDP growth 2014 amp 2015
Ease of Doing Business
RANK 24Ease of Doing
Business
Ease of Doing Business
RANK 6Ease of Doing
Business
RANK18Ease of Doing
Business
RANK 7Ease of Doing
Business
RANK 96Ease of Doing
Business
POLAND
32
RANK45Ease of Doing
Business
Projected annual GDP growth 2014 amp 2015
Projected annual GDP growth 2014 amp 2015
Source httpwwwbloombergcomnews2014-01-29qatar-china-top-ranking-of-frontier-and-emerging-marketshtml
powerful essential and permanent contributors to global economic growth and sustainabilityrdquo
Bloombergcom recently ranked the top emerging markets based on their performance on 19 economic financial political and social indicators In order of ranking the top ten markets were
CHINA
SOUTH KOREA
MALAYSIA
CHILE
THAILAND
PANAMA
PERU
LATVIA
POLAND
CZECH REP
1 6
2 7
3 84 9
5 10
Market IntelligenceANALyTICS
32 wwwthecfomecom
Making an entryIf your business is looking to enter any of these emerging markets itrsquos worth considering the following checklist
1 Assess your readiness The biggest mistake you can make is to enter a market without proper evaluation of your business Donrsquot do it just because everyone else is Like every other major business decision be sure to speak to your Board of Directors partners investors stakeholders and most importantly your CFO and certified accountants Make a business plan enlisting your objectives goals investment strategy potential risks etc
2 Research research research Do your homework Treat emerging markets as any other international expansion venture and do thorough research on the new market ndash Who are the competitorsWhat is the price point for your product What are the customer demographics What kind of infrastructure do you need for the manufacturing production or distribution of your product
3 Understand the legal framework Emerging markets might not have rules and regulations as clearly spelled out as your home country Invest some time and money in understanding how business procedures work A very obvious area of focus for UAE-based companies is tax Since the UAE is a tax-free economy companies arenrsquot exposed to tax accounting and other legislation surrounding
ndash failing to adapt to the needs and expectations of the local customers is surely a recipe for failure Time and again companies havenrsquot been able to create a customised offer and have had to exit these markets with huge losses A success story however is that of the Haier Group Haier famously introduced washing machines to specifically suit the water pressure levels in the households of India ndash an emerging market strategy that worked very well in their favour and helped them become leaders in that sector Another great example is that of Coca-Cola as explained in an online Reuters article by Matt Reilly ldquoIn Brazil Coca-Cola has used social media to better understand consumer preferences and has developed a successful local network to supply traditional Coca-Cola products as well as fruit juices tailored to local tastesrdquo
7 Local currency This is a complex yet critical area to consider when entering a new market Ask yourself questions such as ndash What is the local currency rate How does it compare to the currency in your home country Is the country import-led or export-led and what impact can this have on the global value of the currency Remember that fluctuations in currency rates can hugely effect your overall investment and thereby the return on investment
8 Build partnerships When entering an unknown territory it is quite useful to have the backing and support of peers who can help you in case of unforeseen challenges This is
this Another area to consider is corruption ndash emerging markets are notorious for high corruption red-tape and bureaucracy Speak to your company lawyer to assess these areas and take proper measures to avoid them before-hand
4 Invest in local talent Working with people already accustomed to the new market avoids the hassle of relocation and reduces costs But more significantly gives you skilled talent to work in these unique environments This also works in favour of your company as it gives you a clear understanding of the kind of compensation packages you will have to offer to your employees For instance employees based in China might want high remuneration and low healthcare benefits while in India it may be quite the reverse Recruiting local talent will also have a trickledown effect ndash your employees will easily be able to cater to the local customer needs without the need for intense training
5 Supply chain 44 per cent of business leaders surveyed consider accessing the right supply chain capabilities extremely or challenging in emerging markets according to Deloittersquos Globalisation Survey Make sure that you know who your suppliers will be what the production costs are whether their production procedures fit your time constraints and if the final product matches your level of quality
6 Cater to local market demands This is one of the most important aspects of all
Do your homework Treat emerg-ing markets as any other internation-al expansion venture
Market IntelligenceANALyTICS
33wwwthecfomecom
the very reason why Mergers and Acquisitions are a popular way to enter into emerging markets Many companies piggyback on their clients who are entering these markets For instance if you are an IT consultancy working on a major project for a manufacturing and trading company with operations across India and China you can use their resources and expertise to explore opportunities in these countries
Remember to consider these steps every time you enter a
new market as every locality has its own set of unique needs One strategy doesnrsquot fit all
Surviving fierce market conditionsWhile the massive opportunity that lies within emerging markets paints a pretty picture businesses need to be wary of bottlenecks such as corruption volatility gaps in laws and regulations and strong competition There have been several high-profile cases of multinational companies withdrawing from emerging
markets owing to immense corruption pressures
There is also a high percentage of inherent risks in these markets which amount to many companies not succeeding in their first attempts It is important to take your time when adapting to these markets and fully understand the business dynamics Following recent case studies and going over the lessons learnt by multinational companies who have made an entry into these markets consider the below
bull Is your companyrsquos head-office ndash and senior management ndash located in your home country without any C-level representation in the new emerging market
bull Are you focusing all of your resources on doing business in the emerging market at the cost of losing profits in your home market
bull Have you researched local competitors in these markets who may already have a strong standing and proven models of success
bull Are you using the same ldquoentry approachrdquo and business model across different emerging markets
If your answer to one or more of these questions is yes it may be time to re-evaluate your presence in these markets and map out a different strategy
Finally remember that no matter what the outcome of your admission to these markets might be your business is sure to emerge out of this stronger tougher and ndash of course ndash ready for a new challenge
of companies believed they had invested more resources in
emerging markets than was required
entered a market without fully assessing the ability of the supply chain to support the expansion
entered with the wrong pricing model and an inappropriate
operating model
CONSIDER THE RISKS
48
24
20
There is also a high percentage of inherent risks take your time when adapt-ing to these markets and fully understand the business dynamics
Source Emerging markets expansion and the supply chain Economist Intelligence unit survey conducted on behalf of EY September 2010
34
CIMA INTERVIEW
wwwthecfomecom
The Chartered Institute of Management Accountantsrsquo (CIMA) Managing Director Andrew Harding visited Dubai to host the Institutersquos seminar on global management accounting principles In the wake of CIMA revising their well heralded syllabus Harding discussed with CFO Magazine what the newest edition held how CIMA is applying a digital focus to its courses and just how CFOs can gain from it all
CURATING CURRICULUm
35
CIMAINTERVIEW
wwwthecfomecom
can give CFOs something they can take and something they can measure their own management accounting services against They can benchmark using this and they can utilise this to see their progress
Part of that is having professional management accountant in place I donrsquot think the landscape matters I believe that there is a common business need wherever you may be around the globe
All of the emerging markets need these skills The first aspect that accounting schools teach is about auditing skills because theyrsquore interested in protecting investments Then they teach you how to keep your business sustainable and to have a sustainable business you need to have a management accountant in place So itrsquos not just here in the UAE where we see these demands we see the same demands in China Indonesia and other powerhouse economies We see their skills shortages and we see the need for solutions in those areas
Talk to me about how this new syllabus works to promote the evolution of a CFOThis syllabus that wersquove
Can you expound on just what can be found within the new CIMA syllabusWe just revised the syllabus we do that every four to five years What we have done this year is a very significant revision It is based from a complex study that we have carried out to over 3000 people from 200 companies globally It is the very first revision since the joint venture with CIMA and AICPA So this has allowed us to attain a syllabus rich with all the data from all the continents in the world For the first time wersquove had real involvement from companies in the USA in this project
Why is the collaboration between AICPA and CIMA significantMost important is the Chartered Global Management Accountant (CGMA) designation that AICPA and CIMA both issue for qualified management accountants Wersquoll have a common curriculum and common examination which will begin on January 1 which gives us a global designation for management accountants wherever they are around the world There are plenty of accounting bodies who claim to be global but actually this is the only
genuinely global designation This is because it has the only one with a North American participation in it So we can say that the CGMA will be just as well-recognised in the USA as it is in Dubai
With the global landscape in mind how do you create an even objective that applies to localities which may prove widely differentialThe landscapes are different but businesses have common needs wherever they may be What wersquove particularly seen since the global financial crisis is that companies are actively looking to build management accountant capability to build that capacity within their organisations They donrsquot want to have a poor quality of information that lacks insight being used in their businesses So they see management accountants can bring solutions to that As a result of all the work wersquove done with companies who participated in the syllabus wersquove also put together a series of what we call Global Accounting Principles This is a series of principles which describes what good management accounting looks like and what top quality management accounting in a company should be producing This then
ldquoCompanies are actively looking to build man-agement accountant capability to build that capacity within their organisa-tionsrdquo
36 wwwthecfomecom
worked on acknowledges the skill set needed by professionals throughout their career Therersquos a base level of competence that is needed but beyond that there is more There is business acumen the ability to communicate and influence and finally the ability to lead So you start off enhancing your raw technical accounting skills Then you need to place that into the context of the business that you are in Then as you move forward and as you rise to become the CFO yoursquoll need the others You have to learn how to present your work in a way that can influence and make an impact in the business The final piece is the ability to lead projects and other functions and to a great extent lead the board of directors Thatrsquos how the context works itrsquos not just about technical knowledge
How do you find that CFOs in the GCC region are responding to this programmeThe CFO has a real challenge on his hands now In 1975 80 per cent of corporate value is showing on the balance sheet By 2010 that dropped to less than 20 per cent Your traditional PampL reports no longer reflect the value of the business or how the business drives value
All things that should be of interest to investors is missing With things like the integrated report initiative wersquore starting to see the other dimensions that add value to business For CFOs thatrsquos all about strategic thinking and considering the long-term objectives Being articulate in implementing those strategies keeping in mind the risks and opportunities that the business faces We are also nowadays witnessing a whole new world of transparency around that
Are there electronic aspects to CIMArsquos advancing approachThe interactive case study simulates a real working situation and it tests how they can apply their knowledge in real life situations Theyrsquoll be presented with a scenario a few weeks before they take the exam so they can prepare for it They then go to an exam centre where they are asked questions about how they will deal with a certain situation in the real world Theyrsquoll get an email from the CFO giving them a certain task for a particular period of time We want to make it as close to reality as possible so students taking the exam will be assessing situations based on real life scenarios
ldquoThe CFO has a real challenge on his hands now as traditional PampL reports no longer reflect the value of the businessand [the role] must focus on strategic thinking and considering long-term objectivesrdquo
218KCIMA members worldwide
STAT FACTS
CIMA INTERVIEW
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
38
ERPANALyTICS
wwwthecfomecom
Faster more nuanced IT solutions are available to the modern day CFO Whilst Chief Financial Officers are called upon to analyse data across a number of spectrums the digital tools on hand are likewise being expanded to aid in focusing more squarely on the bottom line
ExCELLING WITH ERP
The global landscape is today firmly entrenched within a digital model As a result CFOs whom are called upon to take a larger role in a number of variables must also increase their abilities with respect to utilising the many upsides which tech innovations offer a business When surveyed about their most pressing concerns CFOs generally return a varying collection of responses Revenue growth regulatory changes and meeting quarterly goals are among the chief concerns Virtually every obstacle can be hurdled by way of maintaining the order of financial reporting and data which has long been
synonymous with the Chief Financial Officerrsquos remit A widening berth of ERP solutions is making this data all the easier to come by
Despite how sophisticated the market is today it was not long ago that ERP departments once spent days processing business reports
Said Rohan Tejura Assistant Vice President Focus Softnet ldquoTraditional ERP systems were solely data repositories Moreover these repositories werenrsquot real time and were incredibly dependent upon locational connectivity With the emergence of smarter development platforms more versatile devices and
39
ERPANALyTICS
wwwthecfomecom
more intuitive designs of system development the overall experience of the ERP now extends from data warehousing to reporting analysis trend mapping business intelligence and governance oriented capabilities Yet these solutions amazingly execute all of these deliverables via portable handheld devices and through cloud environmentsrdquo
New generation ERP systems must now be on the go whilst including up to the minute analytics to provide deeper insight into the business ERP Analytics tools use historical data captured from various business functions to provide valuable information for efficiency and business performance each incredibly priceless to a leading CFO
Finesse is an ERP provider which is continually addressing the transformation of output which the ERP industry is offering the equally transitioning role of CFO
ldquoWe provide end-to-end business management solutions to SMEs and Enterprises Our approach to ERP is much more than providing simply an operational management systemrdquo said Finesse COO Sunil Paul
ldquoWe believe that todayrsquos businesses need much more than integrating sales with inventory accounting and manufacturing but also to have seamless integration with all their sales channels including the point of sales ecommerce and inbound sales solutionsrdquo
A major im-petus of the ERP-cen-tered growth is based on how effec-tive com-prehensive real-time data proves to be for the CFO
40 wwwthecfomecom
before thereby creating new global benchmarks for overall economic growth
Microsoft Arabia CFO Sadrul Khan offered insight into just how far the knowledge economy has influenced regional financial leadership by explaining how one of the most prioritised technologies by CFOs in the region is social platform monitoring
ldquoOne of the five technology choices that CFOs tend to prioritise in boosting productivity efficiencies and faster decision making in the fast paced business environment which include a social platform that monitors trends customer sentiments and helps process mashable data for customer centricity and business growthrdquo said Khan
A major impetus of the ERP-centered growth is based on how effective comprehensive real-time data proves to be for the CFO Whether employed as on-premise ERP software-as-a-service or cloud-based solutions a nearly identical ethos is being utilised Allowing the CFO to quickly access the performance of all facets of a business is paying dividends in the boardroom a reality which is showing itself increasingly in the Middle East
The technologically-charged relationship between ERP solutions and the regionrsquos CFOs is expanding and as a result has catalysed what many see as GCC economic performance outstripping that of many economies outside of the region as a result
In order to compete in todayrsquos fiercely competitive environment organisations need to think both innovatively and out of the box They require more insights about their business and their customers and need to ensure that they are able to meet the expectations of their internal as well as external stakeholders Enormous amounts of data both structured and unstructured is continuously being generated within the internal and external systems of the organisation which if analysed can be of immense value both to the business and subsequently the stakeholders associated with the organisation
With the the era of CFOs labouring over spreadsheets now in the past given how many business frontiers have become so dependent on mobile options such as the cloud more and more tech companies are providing the regionrsquos CFOs with information technology that converts traditional internal and external data into rich visual insights This information is then used for faster decision making and provides the ability for a CFO to assess manage and control risks Regional CFOs have grown enabled to drive corporate strategy accordingly demonstrating how the knowledge economy is now in full force amongst the Gulfrsquos corporates
Given that advanced IT has now become a regular CFO tool the regionrsquos CFOs are subsequently making faster decisions and driving internal growth models with greater speed and agility than ever
Tech companies are providing the regionrsquos CFOs with information technology that converts traditional internal and external data into rich visual insights
ERPANALyTICS
Donrsquot discoveritrsquos counterfeittoner afteritrsquos too lateOriginal HP Toner works first time every time1 unlike cheap toners which fail over half of the people who try it2 Non-HP toner can compromise your printerrsquos performance to give you streaked blotchy or faded prints Only original HP Toner cartridges deliver unmatched quality for the most professional-looking prints 100 of the time1
1 A QualityLogic 2010 study commissioned by HP comparing original HP LaserJet Monochrome print cartridges with nine brands of non-HP toner cartridges available in Europe Middle East and Africa for the HP LaserJet P1505 and P4015 printers HP 36A and 64A For details see wwwqualitylogiccomEMEAmonotonertestpdf 2 From a 2012 EMEA Lyra Research study commissioned by HP Results based on a total of 1050 HP Color LaserJet users who have used both original HP and non-HP toner cartridges of whom 552 experienced problems with non-HP cartridges
copy 2014 Hewlett-Packard Development Company LP
42
Private Equity ANALyTICS
wwwthecfomecom
The rise of PE-backed acquisitions is forcing CFOs to develop an entirely new set of skills
THE PRIvATE EQUITy CFO
The CFOrsquos utility in the world of private equity is without question on the rise The once-held belief of the CFO existing solely as the ldquoaccounting guyrdquo has been abandoned Over the last 20 years the role of CFO has become more demanding - requiring not just finance and accounting acumen but also a financial literacy in corporate planning risk management MampA assetliability management and regulation This evolution has been driven by a number of
key factors Yet the private equity industry which is now reshaping the corporate landscape through active ownership is by far the most significant factor driving change within the role of the CFO
PE-backed buyers today represent a larger percentage of overall buyers in the corporate acquisition marketplace than ever before Data provider Prequin estimates that as of June 2014 the capital raised by PE funds that
has not yet been deployed amounts to $114 trillion globally The result of this ldquodry powderrdquo is that a vast quantity of corporate acquisitions in the coming years will be undertaken by the private equity industry As such CFOs will be more accountable to demanding ldquosmart moneyrdquo shareholders than at any point in recent history Budgeting accounting and financial reporting will no longer exist as sole priorities but as a core competency among a
ldquoBy effec-tively using real-time data CFOs can create a dynamic process that proac-tively drives performance account-ability and value crea-tionrdquo
By Aaron Heidari
43
Private Equity ANALyTICS
wwwthecfomecom
robust set of complimentary and required skills Most of all the bar for CFOs is rising as PE investors will only accept above-average performance from their management teams
CFOs were once more reactive in function setting budgets based on other executivesrsquo plans and managing the flow of reporting to shareholders on a quarterly and yearly basis Today CFOs are required to become proactive managers of their respective businesses alongside their C-suite compatriots using a granular data-driven approach to aggregate analyse implement and report on every aspect of a companyrsquos operations
An important tool to drive this value creation process are KPIs Yet KPI structures including both aggregation and output are generally not up to the standards required of private equity investors prior to an investment being made
ldquoThe benefits of using KPIs and monthly reporting packages are significant By effectively using real-time data that is actionable and by partnering with functional area leaders within the organisation company CFOs can create a dynamic process that proactively drives performance accountability and value creationrdquo said Amanda Robinson Vice President of Accordion International in Dubai a consulting firm which is comprised of former private equity and investment banking professionals who
MENA region Cumulative Funds Under Management Since 2008
Source Zawya private Equity Monitor
19 636 20 36321 586
22 64323 506 24 250
-
5000
10000
15000
20000
25000
2008 2009 2010 2011 2012 2013
Cu
mu
lati
ve f
un
ds
($ m
)
$15mAverage MENA PE investment size in lsquo13
50Percentage of investment in IT and energy sectors
STAT FACTS
44 wwwthecfomecom
work with companies to deliver cost-effective project execution services
Active shareholders whose money it is being spent will typically require a data-driven justification before approving any budgets capital expenditures or new acquisitions Furthermore in many private equity backed companies the use of debt and the matching of shorter-term bank financing with longer-term investments will only be considered after a robust analysis is conducted to understand the companyrsquos ability to service that debt in the future This evaluation is not simply to identify revenues expenses and profits Itrsquos about drilling down into every transaction and rooting out data processing and reporting At least that is the expectation
The most valuable CFOs are those who have the ability not just to scrutinise and understand the financials but all also possess a wider grasp of the underlying data which truly comprise the business As an investor who has just acquired a stake in a new business I want a CFO who can manage the transition and stay ahead of my expectations Most of all a CFO should impress upon the companyrsquos shareholders a new way of doing business The first 100 days of an acquisition are said to be the most important During this period the CFOrsquos worth will be established when the new financial plan is due and the platform for the next five years of growth is presented
A CFO should man-age the tran-sition stay ahead of expectations and impress upon the companyrsquos shareholders a new way of doing business
Investment Volume By Sector Since 2006
Investment Volume By Sector in 2013
Source Zawya private Equity Monitor
1
3
30
17
3
28
3
4
6
4
6
5
17
9
9
6
9
5
8
6
6
2
3
10
Education
Education
Information Technology
Information Technology
Other
Other
Telecoms
Telecoms
Media
Media
Transport
Transport
Oil amp Gas
Oil amp Gas
Healthcare
Healthcare
Consumer goods
Consumer goods
Food amp Beverages
Food amp Beverages
Leisure
Leisure
Manufacturing
Manufacturing
ANALyTICS
Private Equity
2000857 NBAD ratibi mag ad 200x268 Finalindd 1 92514 1017 AM
46 wwwthecfomecom
THE FUTURE OFACCOUNTING EDUCATIONAddRESSINg THECOMpETENCY CRISIS
Have you ever stopped to think about how the accounting profession has changed since you graduated from college Recent graduates can answer this question by reflecting on the last two or three years whereas for other more seasoned professionals answering this question requires a bit more thought and memory searching Indeed we can all think of ways that the field of accounting is remarkably different today from the one we likely envisioned during our college daysmdashregardless of which decade we each donned our cap and gown This gradual transformation of the accounting profession leads to two important questions related to competencies bull Which competencies are important for success inaccounting todaybull Were these competencies consciously developed as partof your accounting degree programme
We suspect that more than a few of you would answer ldquonordquo to the second question Put another way our profession may be facingmdashmore so than at any time in the pastmdasha ldquocompetency crisisrdquo that is a gap between the competencies needed for professional success and those taught in our college classrooms today We propose a three-pronged strategy or ldquogame planrdquo for overcoming this competency crisis and in turn better preparing accounting graduates for the challenging world they will face First all of us accountants need to understand the changes that have already taken place in our profession and perhaps more importantly anticipate the changes that are on the horizon Second we need to educate ourselves and future generations of accountants so that as a collective group we can deliver the expanding set of competencies demanded in todayrsquos dynamic organisational
contexts Third as professional organisations and as individuals we need to think beyond ourselves by asking How can I (or we) help the accounting profession address the competency crisis
A Shift Toward Integrated ThinkingMany articles and white papers have been written that describe in detail the changes that have occurred in our profession over the last few decades but for our purposes wersquod like to distill these changes down to one crucial idea How does the accounting function add value to an organisation Accountants have evolved from support-oriented personnel who hand off information to others who actually make decisions into business partners who ldquohave a seat at the tablerdquo with managers
By peter C Brewer James E Sorensen CpA CgMA and david E Stout
47wwwthecfomecom
1048576bull What regulatory risks mayaccompany the proposal
1048576bull What social and environmentalfactors will we face if for example the proposal requires investing in overseas operations
1048576bull What types of employeeresistance may arise if we implement the proposal and how will we overcome the root causes of any such resistance
1048576bull Can and how should we valuefuture options associated with the proposal such as expanding or contracting the investment over time as new information becomes available
1048576bull Should we use debt or equity tofund the proposal
In short accountants have evolved to become integrated thinkers who enable EPM by partnering with managers across the organisation to add value Yet as EPM has gradually become the centrepiece of our professionrsquos value proposition accounting education hasnrsquot done enough to embrace it To overcome this gap wersquod like to further suggest that the concepts of competency integration and EPM need to come ldquofront and centrerdquo as we move forward in educating the next generation of successful accounting practitioners
Accounting Education No Longer on the SidelinesRecently a task force consisting of members of IMAreg (Institute of Management Accountants) and members of the Management Accounting Section (MAS) of the American Accounting Association (AAA) addressed the competency issue How should accounting education change fundamentally to help close the competencies gap The efforts of the task force led to
cash flows and how to apply discounted cash flow (DCF) decision models such as net present value (NPV) is of foundationalmdashsome might say critical mdash importance But integrated thinkers draw on an understanding of organisational strategy coupled with a broader set of competencies (beyond what might be considered technical or foundational knowledge) when making these types of decisions For example they consider how behavioural issues may influence the capital investment decision-making process Perhaps the financial estimates contained in the NPV analysis are too optimistic because the manager who prepared the numbers has a vested interest in seeing the project approved Decision makers also need to consider issues such as leasing vs buying a capital asset and the corresponding impacts on the financial statements and ratios that are tracked by investors and lenders What nonfinancial factors are associated with the proposed investment Add in the tax consequences of capital investment decisions coupled with the need to maintain internal control over any new business processes tied to these decisions and the need to think in an integrated fashion across a variety of accounting competencies becomes apparent
Furthermore becoming a true business partner with managers across the organisation requires more than simply integrating various accounting competencies It also means thinking like a business manager or a chief executive officer (CEO) Returning to the capital budgeting example an integrated thinker will ask questions such as
across the organisation Together they formulate and plan strategies then participate in collaborative decision-making processes that execute those strategies in a manner that adds stakeholder value Said another way accountants have evolved to become enterprise performance managers This shift in our orientation from a support function to an enterprise performance management (EPM) role has enormous implications for defining the determinants of success within our profession the most important of which involves becoming collaborators and ldquointegrated thinkersrdquo Take for example a common but important business decision process capital investment analysis Certainly technical knowledge regarding how to estimate relevant after-tax
48 wwwthecfomecom
expanding capital budgeting discussions to include financial statement impacts tax consequences and internal control issues integrates topical coverage across the External Reporting and Analysis Taxation Compliance and Planning and Assurance and Internal Control competencies shown in Figure 1
Third accounting curricula can incorporate a broader set of management competencies For example evaluating capital investment proposals from the perspectives of change management (Leadership) social and environmental issues (Ethics and Social Responsibility) regulatory concerns (Governance Risk and Compliance) and capital structure (Additional Core Business Competencies) brings a CEOrsquos perspective to the decision-making process
Fourth accounting curricula should include foundational competencies such as proficiency with spreadsheets and written and oral communication In the context of capital budgeting this may include asking students to use Microsoft Excel to perform a sensitivity analysis and then to present their findings to the entire class
Working to Fix the ProblemAt this point although you may agree with us that therersquos a competency crisis within the accounting profession you may be wondering What does this have to do with me What can my organisation do to help address this so-called competency crisis The answer a lot Practice partners and academic partners can help the accounting profession overcome the competency crisis That said letrsquos take a closer look at the role of practice partners first
improvement) and accounting competencies (external reporting and analysis planning analysis and control taxation compliance and planning information systems assurance and internal control and professional values ethics and attitudes) Of critical importance to the framework is the assumption that the set of competencies contained in Figure 1 would be developed and integrated over time through a blend of formal education (including continuing education) training and job experience
What levels of integrationmdashon the road to developing integrated thinkers in accountingmdashare possible First accounting educators can integrate within a single accounting competency So referring back to our capital budgeting discussion teaching computational models such as NPV analysis coupled with a review of various behavioural issues associated with capital investment decisions would be an example of integrating within the Planning Analysis and Control competency listed in Figure 1
Second professors can integrate across accounting competencies For example
a recently published article that contains a proposed framework for accounting education reproduced here as Figure 1 The framework is general in the sense that itrsquos meant to apply to all accounting students not subgroups based on career specialisation such as tax assurance services corporate finance and the like Itrsquos based on the idea that accounting educators can better prepare students to deliver our professionrsquos EPM value proposition through integrated competency-oriented curricula (For more see ldquoFocusing Accounting Curricula on Studentsrsquo Long-Run Careers Recommendations for an Integrated Competency-Based Framework for Accounting Educationrdquo in the May 2014 edition of Issues in Accounting Education)
A glance at Figure 1 reveals three levels of competencies foundational competencies (communication ability to leverage technology and analytical thinking and problem solving among others) broad management competencies (including leadership ethics and social responsibility and process management and
Proposed Competencies-based Framework for Accounting Education
FOUNDATIONALCOMPETENCIES
ACCOUNTING COMPETENCIES
BROAD MANAGEMENT COMPETENCIES
leadership
ExternalReportingamp Analysis
PlanningAnalysis
amp Control
TaxationComplianceamp Planning
InformationSystems
Assuranceamp InternalControl
ProfessionalValues Ethics
amp Attitudes
Communication
Quantitative
Interpersonal
Technological
Analytical Thinking ampProblem Solving
Ethics amp SocialResponsibility
ProcessManagement ampImprovement
GovernanceRisk amp
Compliance
AdditionalCore BusinessCompetencies
Although you may agree with us that therersquos a competency crisis within the account-ing profes-sion you may bewondering What does this haveto do with me
A practice partner should be or become a CMAreg (Certified Management Accountant) maintain professional certification by completing required Continuing Professional Education (CPE) hours and regularly read the IMA publications Strategic Finance and Management Accounting Quarterly
In addition there are a number of excellent resources that deal with topics covered in this article and that IMA makes available to its members
Strategic Finance PowerPacks(wwwimanetorg SFPowerPacks) These are resources focused on contemporary topics similar to those discussed earlier Current offerings include Risk Management Strategic Planning IT Skills amp Software and Internal Controls Each PowerPack includes a combination of resources such as research studies articles and links to webinars
Statements on Management Accounting (SMAs)(wwwimanetorgresources and_publicationsresearch_ studies_resourcesstatements on_management_accounting aspx) SMAs represent monographs classified into one of the following six categories Leadership Strategies and Ethics Technology Enablement Strategic Cost Management Business Performance Management Finance Governance Risk and Compliance and the Practice of Management Accounting Multiple items are available within each category For example the Practice of Management Accounting category includes (among other items)
49wwwthecfomecom
the Definition of Management Accounting and Implementing Shared Service Centres
Research Studies (wwwimanetorgresources_and_publicationsResearch_Studies_and_ResourcesAll_reportsaspx) The ldquoThoughtLeadershiprdquo section of IMArsquos website includes research covering a broad range of issues classified into seven categories For example under the ldquoGlobal Business Environmentrdquo category the following two research reports are available ldquoKey Differences Between IFRS and US GAAP Impact on Financial Reportingrdquo and ldquoCosting Methodologies and Cost Management Practices in the Peoplersquos Republic of Chinardquo
IMA Leadership Academy (www imanetorgprograms_events leadership_academyaspx) As described on the IMA website this programme is designed to assess a memberrsquos leadership status enhance that individualrsquos skills (principally through monthly webinars) and recognise leadership achievements These benefits are free to members
How You Can Make a Bigger Impact In addition to attending local regional and national IMA meetings consider inviting a small group of students to each chapter meeting This could be a wonderful (and relatively low-cost) option for mentoring aspiring accountants and finance professionals providing networking opportunities and introducing students to cutting-edge issues regarding the practice of management accounting Joining a university accounting
advisory group may be another way to influence the development of EPM in that institutionrsquos curriculum design
Other methods to enhance EPM in your organisation include (1) forming user groups within your company your local IMA chapter or your industry to review and share EPM experiences (2) encouraging advancement in the firm to be linked to EPM proficiency (3) focusing your companyrsquos recruiting efforts on candidates who display a background in andor understanding of EPM and (4) organising cross training within your company to enhance a mutual understanding of each otherrsquos respective roles
Finally visit the Competency CrisisTM website (http competencycrisisorg) set up by IMA to unite the accounting and finance constituencies professionals students employers academics and professorsmdashand explore competency issues through the lens of each stakeholder group The site is designed to ldquoencourage a discourse spur action and create a community dedicated to resolving the serious crisis of competency present in the professionrdquo Special sections of the website are devoted to educators students and employers professionals
Our Partners in Education Much like a practice partner an academic partner should be or become a CMA maintain professional accreditation by completing CPE hours and regularly read IMArsquos publications
Academic members of IMA can pursue and actively promote the CMA programme at their respective institutions
50 wwwthecfomecom
IMArsquos website contains helpful resources including an exam content overview content specification outlines for each of the two parts of the CMA exam and learning outcome statements The current exam covers some of the professional competencies represented in Figure 1 A summary of changes to exam content which will be effective in January 2015 is provided on the IMA website in News amp Media Relations which is located under ldquoAbout IMArdquo (See the press release dated March 24 2014) Other helpful resources include ldquoICMA Announces CMA Exam Content Changesrdquo in the April 2014 issue of Strategic Finance as well as ldquoManagement Accounting Career Readiness Shaping YOUR Curriculumrdquo
These forthcoming changes are based on the most recent IMA study of the knowledge and skills needed by management accountants from the view of CFOs controllers and other accountingfinance professionals from around the world
Also consider taking a group of your students to the IMA Student Leadership Conference held each November The Conference provides excellent networking opportunities for you your students and practicing professionals Students can learn firsthand from Conference presenters the challenges and opportunities facing finance and accounting professionals today
Moreover if your institution doesnrsquot currently have an IMA Student Chapter consider forming one One of the authors of this article David Stout reinstituted the student chapter at his school (Youngstown State University) after travelling with a group of his students to the IMA
Student Leadership Conference in Cleveland Ohio Through an IMA Student Chapter on campus students are able to work closely with a sponsoring local IMA chapter and bring to campus speakers who are experts in a wide range of topics including those discussed earlier in this article Each year student chapters compete for an Award of Excellence (AOE) and recognition as an Outstanding Student Chapter In addition IMA student members are able to engage in networking activities leadership training mentoring and community service programmesmdashall through their local chapter
You also might consider volunteering to serve as a Campus Advocate In this role yoursquoll represent IMA in all major matters of interest to your students (scholarship opportunities starting a student chapter mentoring and the like) and to your institution (for example leveraging IMA resources to advance the relevancy of the accounting curriculum use of educational case studies published in the IMA Educational Case Journal and access to IMArsquos ethics curriculum)
And if you havenrsquot yet done this ask IMA to endorse your accounting programme (information is available at www imanetorgeducator_resources indexaspx) This programme is designed to identify business curricula that meet the quality educational standards required to prepare students to earn the CMA designation Endorsement is based on an analysis of the curriculum and topics covered on the two-part CMA exam Currently 12 programmes have been endorsed
Finally if your school has an IMA Student Chapter consider participating in the annual IMA Student Case Competition where students are asked to propose a solution to a real world problem (Cases are solicited each year by Raef Lawson IMA VP of Research and Policy and IMA Professor in-Residence) Finalists make their presentations at IMArsquos Annual Conference amp Exposition before a set of judges consisting of accounting faculty members and practitioners Each year a new case is published in the August issue of Strategic Finance for students to use for that yearrsquos competition
Working TogetherIn this article we have summarised the changes that have affected the accounting profession and provided a competencies-based framework for guiding accounting educators in responding productively to those changes As a management accountant you know that implementing change in any organisation let alone within an entire profession never comes easily To be successful in overcoming our professionrsquos competency crisis IMArsquos practice and academic partners will need to assume leadership roles in defining enterprise performance management as the cornerstone of the accounting professionrsquos value proposition
This article was orginally published in the August 2014 issue of Strategic Finance It appears here with the permission of The Association of Accountants and financial professionals in Business
We need to educate ourselvesand future generations of account-ants so that as a collec-tive group we can deliver theexpanding set of com-petenciesdemanded in todayrsquos dynamicorgani-sational contexts
THE POWERFUL AND THRIFTY OFFICE ALL-ROUNDERS
The new ECOSYS M3560idn series will astound you With their print speeds of up to 60 pages per minute they are among the most productive A4 bw multifunctionals on the market We nevertheless managed to keep their ecological footprint and total cost of ownership impressively low by using our well-known ECOSYS technology and equipping the devices with our renowned long-life components The result Not only less waste and lower maintenance costs but also less hassle for you and all your colleagues You will also greatly appreciate the many customisation possibilities of the devices equipped with KYOCERArsquos open solution platform HyPAStrade as it allows you to tailor the device to your needs So yes we are proud of our new range of MFPs and can hardly wait to share their numerous benefits with you
For more information please contactKYOCERA Document Solutions Middle East | PB Box 500817 DubaiUAE | Tel +9714 4330 412 | Fax +9714 4231 944KYOCERA Document Solutions Europe BV - wwwkyoceradocumentsolutionseuKYOCERA Document Solutions Inc - wwwkyoceradocumentsolutionscom
52
ACCAINTERVIEW
wwwthecfomecom
GLOBAL By ASSOCIATION
across the region from our key employers and learning provider partners to our active and growing student and member base I want to understand their challenges and priorities and how ACCA can work with them to help support the economic success of the region
What can a CFO gain from working with ACCAThe ACCA qualification is about complete finance professionals For CFOs it brings the technical knowledge vital to business success complemented with the strategic management skills and ethical competence crucial to an organisationrsquos success As an organization ACCA in the UAE brings CFOs access to that local and global network of peers and expertise along with our leading research and insights that help them to keep up to date on the issues that matter most
Are there any initiatives in place to leverage the recently announced partnership with AAA
How are the ACCArsquos many years of activity being applied to the Middle EastACCA has now had a presence in the UAE for well over a decade During that time we have established strong relationships across the Middle East epitomised by the recent signing of our Strategic Partnership with AAA As a national body in choosing to partner with ACCA they recognised the local and global perspective we bring We are continuing to work with students members and employers across the Middle East to build their networks knowledge and business success through events research and insights and access to a growing number of online resources
Which initial priorities are among your key aims upon joining the organisationrsquos efforts in the UAEIn the first few months I hope to build on the success of the team in the UAE My priority will be to meet as many of our key stakeholders
The Association for Chartered Certified Accountants (ACCA) provides its services across a number of international borders The recent announcement of Lindsay Degouve de Nuncques as the new head of the Associationrsquos UAE chapter further exemplifies the ACCArsquos reach based on her previous work in the UK Nuncques shares here what she brings to the Middle East and just how globalisation has driven her ascent
53
ACCAINTERVIEW
wwwthecfomecom
The strategic partnership with AAA is the first of its kind in the region Students who complete the UAECA qualification will be entitled to both the AAA and ACCA designations and ACCA members in the UAE will also be eligible to apply for AAA membership This is a very exciting development in the market and together AAA and ACCA will be working to deliver maximum value to all our stakeholders from this partnership As we launch the UAECA qualification this activity will start in earnest
Which key industries will you be spotlighting in the Middle East in the months aheadOur experience of working across all sectors and levels of organisations globally gives ACCA a unique insight into all types of industries We will continue to be working with employers across the spectrum in the months ahead to help them gain the insight and make the connections that drive businesses to succeed at whatever they do
ldquoThe ACCA qualification is about complete finance professionals For CFOs it brings the technical knowledge vital to business success complemented with the strategic management skillsrdquo
54
Islamic FinanceMARKET OUTLOOK
wwwthecfomecom
In its 10th instalment the Forum is hosted in Dubai as a direct result of the UAErsquos increasing importance in the world of global Islamic finance
THE WORLD ISLAmIC ECONOmIC FORUm LANDS IN DUBAI
In Dubairsquos continued quest for leading the world across a range of spectrums the Emirate accelerated its desire to become the worldrsquos leading hub for Islamic finance by hosting the 10th installment of the World Islamic Economic Forum (WIEF) Delegates from dozens of countries attended to take part in a three-day event held at Madinat Jumeirah which rests alongside Dubairsquos gleaming coastline Held under the patronage of His Highness Sheikh Mohammed Bin Rashid Al Maktoum the
Vice President and Prime Minister of the UAE and Ruler of Dubai key speakers included The Honorary Dr Zeti Akhtar Aziz Governor of the Central Bank of Malaysia HE Kairat Kelimbetov Governor of the National Bank of Kazakhstan The Honorary Datorsquo Sri Mohd Najib Tun Abdul Razal Prime Minister of Malaysia and HE Xavier Bettel Prime Minister of the Grand Duchy of Luxembourg
Launched in 2006 in Malaysia WIEF has grown in tandem with the increased
Delegates from dozens of countries attended WIEF to take part in the three-day event
sophistication and reach of Islamic finance After a successful event in London in 2013 amidst increased interest in Islamic finance across Europe WIEF relocated to Dubai where the local business structure is keen to host halal finance
Said Hamad Buamim President and CEO Dubai Chamber of Commerce and Industry co-organisers of the event ldquo[The forum] is the start of a new chapter of cooperation between Dubai and the world as part of
55
Islamic FinanceMARKET OUTLOOK
wwwthecfomecom
Dubai Capital of Islamic Economy visionhellipestablishing a unified regulatory authority to provide the framework for standards across halal industries will significantly accelerate growth Likewise we need to see increased cooperation and partnership between the public and private sectors This is already happening with great success here in Dubairdquo
The order of global cooperation needed to facilitate growth across the Islamic finance world was more than apparent at WIEF based on how many differing nations were represented at the event The exhibitorrsquos hall was populated with a number of key Malaysian stands representative of the Southeast Asianrsquos ranking as the global leader in Islamic finance Also present were companies from Saudi Arabia also a key locality in the worldrsquos halal industries An interesting yet prescient presence was of attendees from South Korea a nation which is eager to participate in Islamic finance and will be hosting the WIEF Pyeongchang Roundtable in December 2014
ldquoGangwon is a province located in Korea which is very interested in new business opportunities Wersquove realised the strength of the Islamic economy and have come here with many different companies The first type is based in real estate investment We also have companies which want to export their products to the Islamic economy based on their halal qualities And Gangwon will also be hosting the Winter
ldquoKorea is very interested in the strength of the Islamic economy and wants to export its products based on their halal qualitiesrdquo
56 wwwthecfomecom
$247trillionProjected value of halal products industry in lsquo18
125Muslim percentage of global tourism expenditure
STAT FACTSOlympics in 2018 and are presently seeking investments for this as wellrdquo said Seong-hun Kim a member of Gangwon Province Governmentrsquos Export Support Team
Dubai proved to be an excellent place for the event considering how well the UAE is able to so regularly corral international cooperation A key sign of this was witnessed recently when Luxembourg now considered the third most important base for Islamic finance globally opened a finance office in Dubai International Finance Centre The European nation also opened a euro200 sukuk earlier this year which was quickly oversubscribed
The prime minister of Luxembourg offered the WIEF audience a riveting speech which detailed just how international the Forum has become whilst encouraging more of the world to support the growing influence of Islamic finance
Said Bettel ldquoWe need to innovate more economic partnerships for growth We sometimes need to reengineer relationships but also have to make sure these relationships remain sustainable Growth in one country also brings growth to others as long as this is guided by free market initiatives Free trade and free flow of capital combined with innovation leads to prosperity We have all gathered here in Dubai to explore the future of Islamic finance and Luxembourg is also a pioneer of Islamic finance in Europe The Islamic financial sector has a major role to play in continued global growthrdquo
The Islamic Corporation for the Development of the Private Sector (ICD) is based in the Kingdom of Saudi Arabia where it manages an international fund worth $2 billion half of which is available for subscription With shareholders in more than 50 countries and a sovereign sukuk fund recently launched in West Africa the ICDrsquos CEO Khaled M Al Aboodi attended WIEF this year excited to participate in the global event
How does the ICD approach its attendance at the World Islamic Economic ForumI think the Forum is one of the best places for discussing the financial issues of the OEC member countries It has been around for ten years and has grown to become a very important platform for discussion Wersquore here to attend and listen but also to network Itrsquos a great networking platform and a place to share views whilst letting everyone know what we have to offer
How has Islamic finance changed over the yearsOf course itrsquos growing in a large scale Some of it actually needs more support particularly with respect to regulatory frameworks Wersquore trying to partner with many international organisations like the IMF to try to provide support to countries to adapt regulation for Islamic finance Sukuk issuance is one of the biggest issues that needs to be addressed because there is a huge amount of liquidity in this arena Due to issues related to regulation sukuk issuance can be costly But with the regulation we are confident it will be on a level playing field with other forms of finance Compliance is a major area where more work can be done The Forum started with a roundtable on sukuk which shows how helpful WIEF has been over the years
What type of work does ICD do internationallyICD helped the government of Senegal to issue the first sovereign sukuk This was successfully issued last summer Progressing in this manner is something wersquod like to see continue across West Africa in order to utilise its resources with aiding development in the region in mind
QampA WITH KHALED M AL ABOODI CEO OF ICD
Islamic FinanceMARKET OUTLOOK
OFFICIAL SPONSORS
ENDORSED BY OFFICIAL HOST OFFICIAL
COMMUNICATIONS PARTNER
MEYDAN HOTEL DUBAI UAE19 - 20 NOVEMBER 2014
WOMENOMICSthe next emerging market
TAKE PART in making change happen UNITE with business and through leaders from across the globe
PARTICIPATE to the expansion of a modern and inclusive economy
58
Gautam PradhanINTERVIEW
wwwthecfomecom
SUCCESS BEyOND BOUNDARIES
in other management roles such as strategic decision making mentoring and leading efficiency and productivity across a range of other departments and functions as well as a being a catalyst in ensuring that the boardrsquos vision for the organisation is achieved
A significant percentage of NMDCrsquos shares are owned publicly Does the CFO play a role in balancing the interests of the shareholdersAs a CFO balancing the shareholdersrsquo interests is definitely part of my responsibility In order to achieve this goal there needs to be a careful evaluation of each decision while keeping the short-term and long-term goals of the company in mind At NMDC we actively implement a system where we utilise a balance scorecard as a method of ensuring that all our primary objectives are met yet at the same time continuously enhance our relationships with our shareholders
NMDC has completed various projects across the Emirates Are there plans to move abroadAs NMDC moves towards becoming an international player our strategic expansion plans are focused in areas within the GCC region and India In line with this strategy we opened
How has a company with such a unique set of deliverables grown so consistently over the yearsOur organisation strongly believes that the core to our strength is the people process and equipment A strategic decision led by our Board of Directors and the senior management has been implemented that required us to consistently invest in these three aspects to help expand our business beyond the territorial boundaries of the UAE and at the same time enhance what we can offer which is relevant to these segments We attribute our success to the efforts which every employee contributes We also strongly believe in the ldquoWe can make it happenrdquo principle The management raises the index of performance while setting SMART objectives within the organisation and encouraging the employees to achieve them
How has your position as the CFO changed over NMDCrsquos 35 years of operationAs the market evolves and business dynamics change my role as the CFO has become complex and more challenging A few years back I was mainly focused on bookkeeping accounting and other financial responsibilities such as arranging bank facilities But moving forward I became more involved
The UAE is progressively becoming a hub for world-class infrastructure The country has duly impressed the rest of the globe with noteworthy land developments showcased across the emirates Among the remarkable landscapes found in Abu Dhabi are the Corniche Beach Yas Island and Sir Baniyas Island Behind these successful projects is NMDC the dredging division of Abu Dhabi National Oil Company (ADNOC)
In an interview with CFO Magazine Gautam Pradhan Chief Financial Officer NMDC shares an exclusive look into the companyrsquos international blueprint for growth and his dynamic role as a strategic leader of one of the best in dredging and marine construction in the Middle East
59
Gautam PradhanINTERVIEW
wwwthecfomecom
branches in Qatar Bahrain Oman and India This has paid rich dividends recently as projects of strategic importance are bagged in Qatar and Bahrain Furthermore NMDC (UAE) has recently played a key role as a leader of an international consortium with Royal Boskalis Westminister (Netherlands) and Jan De Nul Group (Belgium) for the awarding of the Suez Canal Dredging project in Egypt Moving forward we have devised a strategic approach that will enable us to play a key role in the development of Indiarsquos marine infrastructure
What are the global strategies that are part of the CFOrsquos responsibilitiesAs CFO understanding the macro economic scenario risk analysis and mitigating those risks are all a part of my responsibilities I also have to have a proper comprehension
ldquoA few years back I was mainly focused on financial responsibilities moving forward I became more involved in strategic decision making mentoring and leading productivityrdquo
Gautam PradhanINTERVIEW
60 wwwthecfomecom
of the challenges faced by the company in terms of dealing with foreign contracts direct and indirect taxes and hedging and managing the integration process These are essential to enhance shareholders wealth and mitigate undue risk
How significant is accountancy for NMDC in its operations Why exactlyAccountancy is the lifeline of any company it does not only record the finances it also reflects the health of the organisation The MIS reports analysis trends and statistical information go a long way toward effectively providing
the diagnostic approach essential for the company
How have NMDCrsquos environmental activities helped the companyrsquos bottom lineNMDCrsquos work is well-synchronised with our environmental activities and specifically with nature Our activities are closely linked to sand and water and we view such activities with strategic importance Projects such as increasing water supply to mangroves and beach nourishment help us support the environmental activities while adding to our bottom line
ldquoAccountancy is the lifeline of any company it does not only record the finances it also reflects the health of the organisationrdquo
A burgeoning slice of Abu Dhabi coastline
The largest business awards
in the GCC30th November Dubai
nominate now at wwwstarsofbusinessawardscom
Stars of Business has become an iconic awards brand like no other in the region It recognizes the very best SMEs across 26 business categories Itrsquos universally respected as scientifically assessed and unimpeachably judged
327000 SMEs across the UAE$234 billion estimated total revenue of the SME sector4974 Awards entries in 20131856 Individual company applicants
Presenting Partner Strategic SME Partner Gold Sponsor Gold Sponsor VIP Hospitality Partner Supporting Partner
Trade Facilitator PartnerTrade Credit PartnerLogistics Partner
Institutional Partner Institutional Partner Event Partner
OrganiserPublisherMedia Partner Media PartnerPort Authority Partner
62
David Allen INTERVIEW
wwwthecfomecom
What went into completing your bestseller ndash Getting Things Done (GTD)After twenty years of researching developing and implementing a methodology for achieving stress-free productivity based upon
thousands of hours spent desk-side with
some of the best brightest and busiest people in the world I decided to write the manual for it Thatrsquos what Getting Things Done is
What are the five phases of mastering workflowIn order to get
any situation under control so
you can focus you will utilise these five
steps Whether yoursquore managing your kitchen
or your company you will need to collect and capture what has your attention clarify what if anything to do about it organise it according to what it means to you review and reflect upon it in relation to
Todayrsquos evolving CFO is often caught between the world of business set-up generating revenue managing employees and building strong company infrastructure When can things actually get done What can one do to boost productivity and master workflow World-renowned business coach David Allen has the answers
PRODUCTIvITy PRINCIPLES WITH
DAvID ALLEN
63
David Allen INTERVIEW
wwwthecfomecom
those are greatly subvertedHow does one maintain a fair balance between the time spent planning and actually getting things doneYou simply need to spend just the amount of time you need to to trust that what you are getting done is the right thing to be getting done in the moment It takes as long as it takes to get to that point Why would you do anything less
How can one apply your core productivity and workflow principles to todayrsquos technologically driven environmentThe principles and their techniques are system-independent Whether you have meaningful input from the Internet your smartphone or a conversation in the hall you must engage with it equally Technology has simply increased the flow of input and ease of distraction in your world
There is a lot of talk about how connected wersquove become and how connectivity is driving tremendous business growth Does connectivity actually come with its fair share of downsides
Connectivity is obviously a two-edged sword We can have intimate productive and creative interaction instantly with someone on the other side of the world and we can just as easily be distracted and seduced into those engagements when they may not be the best use of our attention and resources Donrsquot shoot the medium Itrsquos all simply bringing attention to your clarity of direction and priorities or lack thereof
Could you share a few quick tips with our readers to instantly boost productivityWrite everything down that has your attention Decide the very next actions required to get closure on all of them Any next actions that require less than two minutes do instantly Park reminders of everything else somewhere that yoursquoll see when you can do something about them
We are currently facing a massive information overload What are some basic principles you could suggest to mentally organise such large amounts of dataConstantly ask yourself Where am I going Whatrsquos important and rewarding to me Is this information
the whole and then engage your resources with intuitive trust
As a CFO how can you transfer efficient workflow management skills to your employees Itrsquos very difficult to legislate processes for individuals ndash you can really only hold them accountable for their results But if you are managing your own commitments and intersections with them with integrity and rigour it will automatically force your team to ldquostep up to the platerdquo in their own behaviours in order to meet your standards If you request their complete list of their company projects and they canrsquot produce it thatrsquos a sign theyrsquore not in control If they make a commitment to you that they havenrsquot kept thatrsquos data about their performance GTD is simply about good operational business practices
With so many planning and organising activities in your methodology is there a risk of losing spontaneity as a strategistThe reason for these best practices is to optimise freedom creativity and spontaneity Without them
ldquoBut if you are manag-ing your own com-mitments and intersec-tions with them with integrity and rigour it will automatical-ly force them to ldquostep up to the platerdquo in their own behaviours in order to meet your standardsrdquo
64 wwwthecfomecom
supporting that Park whatever you find potentially meaningful somewhere that is easy to access when needed
Being an entrepreneur is a non-stop job How do you ensure that you have an adequate work-life balance Pay attention to what has your attentionmdashwith regard to anything Your health relationships career finances etc Notice when something might be ldquooffrdquo and make good decisions about what you need to do to get it back ldquoonrdquo again
Does your work teach people to be efficient or effective In essence they are the same thing Effective choices are generated by efficiency on a higher level If you want to implement strategy most effectively it demands utilising your resources optimally which is efficiency
Does motivation actually improve quality of work or purely quantityDepends on the focus of the motivation You can be motivated to work harder and you can be motivated to work smarter
What is your favourite productivity mantra that
you implement in your day-to-day lifeUsing my own in-basket and note-taking devices to capture potentially meaningful and valuable ideas and soon afterwards clearing all of them out by deciding what to do about them if anything
Your books seminars and other work inspires many individuals and businesses Who is your personal inspiration or role model I have many about many different aspects of my life The only person though that I ultimately trust as my best guide is my higher self which I try to access as frequently and clearly as I can
Finally what advice would you give to current business owners and aspiring entrepreneurs looking to gain complete control of their life and businessCapture what has your attention clarify what you need to do about it to get it off your mind organise the inventory of all your commitments at all levels review and reflect on all of that regularly relax and trust your inner wisdom to engage with the most appropriate thing in the moment
ldquoIf you want to implement strategy most effectively it demands utilising your resources optimallyrdquo
David Allen INTERVIEW
APPSTECH TALK
wwwthecfomecom 65
mAxImISE BUSINESS lsquoON-THE-GOrsquo WITH THESE HANDy APPS
ipAd SpECIAL
SAMSUNG UNvEILS GALAxY NOTE EDGE
Network
AP
Display
OS
Camera
Video
Audio
Additional Features
GoogleMobile Services
Connectivity
Sensor
Memory
Dimension
Battery
The availability of service may differ by country All functionality features specifications and other product information provided in this document including but not limited to the benefits design pricing components performance availability and capabilities of the product are subject to change without notice or obligation
Samsung Galaxy Note Edge Product Specifications
25G (GSM GPRS EDGE) 850 900 1800 1900 MHz3G (HSPA + 42Mbps) 850 900 1900 2100 MHz4G (LTE Cat 4 15050Mbps) or 4G(LTE Cat 6 30050Mbps)May differ by country and carrier
27 GHz Quad-Core Processor
56 inch (1419mm) Quad HD+ Super AMOLED (2560 x 1440 + 160)
Android 44 (KitKat)
Rear Facing 16 Mega pixel Auto Focus camera with Smart OISFront Facing 37 Mega pixel camera with f19Rear Facing Camera HDR (Rich tone) Selective Focus Rear-cam Selfie Beauty face Virtual Tour Shot ShotampMore Dual CameraFront Facing Camera Selfie Wide Selfie
Codec H264 MPEG-4 H263 VC-1 WMV7 WMV8 Sorenson Spark MP43 VP8 Recording amp Playback up to UHD
Codec MP3 AACAAC+eAAC+ WMA AMR-NBWB Vorbis FLAC()() Ultra High Quality Audio (~192KHz 24 bit) support
Multi WindowUltra Power Saving ModeVoice Recorder (Normal Mode Interview Mode Meeting Mode Voice Memo)Download BoosterS Health 35Dynamic Lock ScreenBriefingEdge screen UX Revolving Interaction Immersive apps(Camera Video S Note)Ticker board Express me Quick Tools Night Clock etc
Chrome Drive Photos Gmail Google Google+ Google Settings Hangouts Maps Play Books Play Games Play Newsstand Play Movie amp TV Play Music Play Store Voice Search YouTube
WiFi 80211 abgnac (HT80) MIMO PCIeGPS GLONASS BeidouNFC Bluetoothreg v 41 (BLE ANT+)IR LED (Remote Control) USB20 MHL 30
Gesture Accelerometer Geo-magnetic Gyroscope RGB IR-LEDProximity Barometer Hall Sensor Finger Scanner UV Heart Rate Monitoring SpO2 (Dependent on market)
32 64 GB Internal memory + microSD slot (up to 128GB)3GB RAM
1513 x 824 x 83mm 174g
Standard battery Li-ion 3000 mAh Fast Charging (Adaptive Fast Charging amp QC20)
wwwthecfomecom66
APPSTECH TALK
AIR DISPLAY
SQUARE REGISTER
Using this app you can connect your iPad to your computer and use it as an additional screen While working on an important presentation or sales proposal you can extend or mirror your computer screen on your iPad This app is compatible with both Mac and Windows computers Note that to use this feature you have to install Air Display on your iPad and a separate free app on your computer The computer and iPad also need to be on the same Wi-Fi network in order to work in-sync
For Mac users the app allows you to connect to up to four screens ndash all at the same time
Apart from the ability to convert your iPad into a wireless display whatrsquos also attractive about this app is that it allows you to control your computer wirelessly using your iPad
This fantastic application can serve as a mobile point of sale for your business It allows you to accept credit card payments ndash including Visa MasterCard Discover and American Express A transaction fee of 275 is charged for every time you swipe a card The sale amount is transferred to your account within two working days
Once you download the app you can sign up and register for a unique card reader solution called the lsquoSquare Readerrsquo (this is free) Square Reader encrypts all card details and ensures that the transaction is secure Once you receive your Square Reader you can connect it to your device and are all set
The application also offers added features such as transaction history connecting to a receipt printer creating employee logins and more
AED 3699
PRICE
Free
PRICE
wwwthecfomecom 67
APPSTECH TALK
DOCUSIGNHave you ever been in a situation where your employees need you to urgently sign a contract but arenrsquot able to physically reach you in time DocuSign solves this problem with its easy-to-use eSignature feature In three easy steps you can sign important documents and securely send them to your intended recipient
First you have to import the document to your device ndash this could be from Dropbox Google Drive or another select applications You then place your signature or any other important legal information you need to include such as initials Once you have finished working on the document send it back via e-mail
Whatrsquos particularly great about DocuSign is the great emphasis it puts on security ndash so that users donrsquot have to worry about getting into any legal trouble
Use DocuSign and never miss a deadline again
Free for basic version
PRICE
MPAYAn initiative by the Dubai eGovernment Department mPay is a simple application that allows you to make important payments Once yoursquove signed up and entered your payment details you are good to go You can pay your Dubai Electricity and Water Authority (DEWA) bills Etisalat utility bills Dubai Police fines Recharge SALIK and much more
A handy feature is its lsquoauto-rechargersquo option which you can use to set automatic payments
Free
PRICE
Opinion CIMAPERSONALITIES
wwwthecfomecom68
NEW HORIZONSBy geetu Ahuja Head of gCC at CIMA
The days of the traditional accountant working within a small community in a small town in a small market have long gone CFOs are now being referred to as Chief Frontier Officers as they travel from market to market overseeing their offices overseas This new expanded role has distinct advantages for both the company and the CFO who gain new skills and new insights from foreign branches a single hand at the helm of many markets provides business perspectives on a global scale and benchmarks across the board
On a personal level working abroad also has huge importance Robert Walters the specialist professional recruitment consultancy recently conducted a survey
of almost 2200 employees across a variety of professions exploring a number of topics which ranged from working practices and attitudes to careers The results highlighted some notable trends particularly for finance professionals
In career progression for example the survey showed that 50 of all accountants see working abroad as either lsquoessentialrsquo or lsquoextremely usefulrsquo to furthering their prospects more than banking professionals lawyers and IT workers ndash a strong indication of how accounting professionals are thinking about their future either within their existing company or with opportunities elsewhere
Accountants with globally recognised qualifications obviously have a greater chance of gaining some experience abroad and the lsquoGen Yrsquo professionals in particular seem ready to pack their bags In a CIMA study conducted in the UK last year over a third of those seeking employment in the
next two years will prioritise opportunities abroad over those in their home countries many of them enticed by the career incentives offered by the Middle East
How quickly can they land what seems to be their dream job What are the realities It may be that the move is simply from one branch to another and the only significant difference is a view from the window but for those expanding rather than changing their roles we have seen a very real need for a depth and breadth of knowledge never needed before
As geographical boundaries are pushed ever-wider a CFOrsquos responsibilities are pushed with them For many finance executives the understanding of their own patch of land is no longer enough they now have to be aware of foreign markets up to speed with foreign trends and au fait with foreign laws There is a need for a new commercial awareness in geography as well as philosophy
As geographical boundaries are pushed ever-wider a CFOrsquos responsibilities are pushed with them
John vargheseQampA
wwwthecfomecom 69
BUSINESSSET UP YOUR
IN THE UNITED ARAB EMIRATES
TO
WAREHOUSESOFFICES INDUSTRIAL LANDFLEXI
Quick and easy company set-up
Less than an hour drive from Dubai
Complete cost-effective packages including licences and facilities
100 foreign ownership
Zero income and corporate taxes
Eligibility for UAE Residence Visa
BUSINESS SET-UP SOLUTIONS STARTING FROM AED 15000 (USD 4000)
RAK FREE TRADE ZONE PROVIDES
RAK Free Trade Zone Authority - Government of Ras Al KhaimahUAE (Ras Al Khaimah) Tel +971 7 2041111 (Dubai) Tel +971 4 7041875 (Abu Dhabi) Tel +971 2 6994888
Germany (Cologne) - Turkey (Istanbul) - India (Mumbai)
Call +971 7 204 1111 Visit wwwrakftzcom Join rakftz
Market IntelligenceANALyTICS
32 wwwthecfomecom
Making an entryIf your business is looking to enter any of these emerging markets itrsquos worth considering the following checklist
1 Assess your readiness The biggest mistake you can make is to enter a market without proper evaluation of your business Donrsquot do it just because everyone else is Like every other major business decision be sure to speak to your Board of Directors partners investors stakeholders and most importantly your CFO and certified accountants Make a business plan enlisting your objectives goals investment strategy potential risks etc
2 Research research research Do your homework Treat emerging markets as any other international expansion venture and do thorough research on the new market ndash Who are the competitorsWhat is the price point for your product What are the customer demographics What kind of infrastructure do you need for the manufacturing production or distribution of your product
3 Understand the legal framework Emerging markets might not have rules and regulations as clearly spelled out as your home country Invest some time and money in understanding how business procedures work A very obvious area of focus for UAE-based companies is tax Since the UAE is a tax-free economy companies arenrsquot exposed to tax accounting and other legislation surrounding
ndash failing to adapt to the needs and expectations of the local customers is surely a recipe for failure Time and again companies havenrsquot been able to create a customised offer and have had to exit these markets with huge losses A success story however is that of the Haier Group Haier famously introduced washing machines to specifically suit the water pressure levels in the households of India ndash an emerging market strategy that worked very well in their favour and helped them become leaders in that sector Another great example is that of Coca-Cola as explained in an online Reuters article by Matt Reilly ldquoIn Brazil Coca-Cola has used social media to better understand consumer preferences and has developed a successful local network to supply traditional Coca-Cola products as well as fruit juices tailored to local tastesrdquo
7 Local currency This is a complex yet critical area to consider when entering a new market Ask yourself questions such as ndash What is the local currency rate How does it compare to the currency in your home country Is the country import-led or export-led and what impact can this have on the global value of the currency Remember that fluctuations in currency rates can hugely effect your overall investment and thereby the return on investment
8 Build partnerships When entering an unknown territory it is quite useful to have the backing and support of peers who can help you in case of unforeseen challenges This is
this Another area to consider is corruption ndash emerging markets are notorious for high corruption red-tape and bureaucracy Speak to your company lawyer to assess these areas and take proper measures to avoid them before-hand
4 Invest in local talent Working with people already accustomed to the new market avoids the hassle of relocation and reduces costs But more significantly gives you skilled talent to work in these unique environments This also works in favour of your company as it gives you a clear understanding of the kind of compensation packages you will have to offer to your employees For instance employees based in China might want high remuneration and low healthcare benefits while in India it may be quite the reverse Recruiting local talent will also have a trickledown effect ndash your employees will easily be able to cater to the local customer needs without the need for intense training
5 Supply chain 44 per cent of business leaders surveyed consider accessing the right supply chain capabilities extremely or challenging in emerging markets according to Deloittersquos Globalisation Survey Make sure that you know who your suppliers will be what the production costs are whether their production procedures fit your time constraints and if the final product matches your level of quality
6 Cater to local market demands This is one of the most important aspects of all
Do your homework Treat emerg-ing markets as any other internation-al expansion venture
Market IntelligenceANALyTICS
33wwwthecfomecom
the very reason why Mergers and Acquisitions are a popular way to enter into emerging markets Many companies piggyback on their clients who are entering these markets For instance if you are an IT consultancy working on a major project for a manufacturing and trading company with operations across India and China you can use their resources and expertise to explore opportunities in these countries
Remember to consider these steps every time you enter a
new market as every locality has its own set of unique needs One strategy doesnrsquot fit all
Surviving fierce market conditionsWhile the massive opportunity that lies within emerging markets paints a pretty picture businesses need to be wary of bottlenecks such as corruption volatility gaps in laws and regulations and strong competition There have been several high-profile cases of multinational companies withdrawing from emerging
markets owing to immense corruption pressures
There is also a high percentage of inherent risks in these markets which amount to many companies not succeeding in their first attempts It is important to take your time when adapting to these markets and fully understand the business dynamics Following recent case studies and going over the lessons learnt by multinational companies who have made an entry into these markets consider the below
bull Is your companyrsquos head-office ndash and senior management ndash located in your home country without any C-level representation in the new emerging market
bull Are you focusing all of your resources on doing business in the emerging market at the cost of losing profits in your home market
bull Have you researched local competitors in these markets who may already have a strong standing and proven models of success
bull Are you using the same ldquoentry approachrdquo and business model across different emerging markets
If your answer to one or more of these questions is yes it may be time to re-evaluate your presence in these markets and map out a different strategy
Finally remember that no matter what the outcome of your admission to these markets might be your business is sure to emerge out of this stronger tougher and ndash of course ndash ready for a new challenge
of companies believed they had invested more resources in
emerging markets than was required
entered a market without fully assessing the ability of the supply chain to support the expansion
entered with the wrong pricing model and an inappropriate
operating model
CONSIDER THE RISKS
48
24
20
There is also a high percentage of inherent risks take your time when adapt-ing to these markets and fully understand the business dynamics
Source Emerging markets expansion and the supply chain Economist Intelligence unit survey conducted on behalf of EY September 2010
34
CIMA INTERVIEW
wwwthecfomecom
The Chartered Institute of Management Accountantsrsquo (CIMA) Managing Director Andrew Harding visited Dubai to host the Institutersquos seminar on global management accounting principles In the wake of CIMA revising their well heralded syllabus Harding discussed with CFO Magazine what the newest edition held how CIMA is applying a digital focus to its courses and just how CFOs can gain from it all
CURATING CURRICULUm
35
CIMAINTERVIEW
wwwthecfomecom
can give CFOs something they can take and something they can measure their own management accounting services against They can benchmark using this and they can utilise this to see their progress
Part of that is having professional management accountant in place I donrsquot think the landscape matters I believe that there is a common business need wherever you may be around the globe
All of the emerging markets need these skills The first aspect that accounting schools teach is about auditing skills because theyrsquore interested in protecting investments Then they teach you how to keep your business sustainable and to have a sustainable business you need to have a management accountant in place So itrsquos not just here in the UAE where we see these demands we see the same demands in China Indonesia and other powerhouse economies We see their skills shortages and we see the need for solutions in those areas
Talk to me about how this new syllabus works to promote the evolution of a CFOThis syllabus that wersquove
Can you expound on just what can be found within the new CIMA syllabusWe just revised the syllabus we do that every four to five years What we have done this year is a very significant revision It is based from a complex study that we have carried out to over 3000 people from 200 companies globally It is the very first revision since the joint venture with CIMA and AICPA So this has allowed us to attain a syllabus rich with all the data from all the continents in the world For the first time wersquove had real involvement from companies in the USA in this project
Why is the collaboration between AICPA and CIMA significantMost important is the Chartered Global Management Accountant (CGMA) designation that AICPA and CIMA both issue for qualified management accountants Wersquoll have a common curriculum and common examination which will begin on January 1 which gives us a global designation for management accountants wherever they are around the world There are plenty of accounting bodies who claim to be global but actually this is the only
genuinely global designation This is because it has the only one with a North American participation in it So we can say that the CGMA will be just as well-recognised in the USA as it is in Dubai
With the global landscape in mind how do you create an even objective that applies to localities which may prove widely differentialThe landscapes are different but businesses have common needs wherever they may be What wersquove particularly seen since the global financial crisis is that companies are actively looking to build management accountant capability to build that capacity within their organisations They donrsquot want to have a poor quality of information that lacks insight being used in their businesses So they see management accountants can bring solutions to that As a result of all the work wersquove done with companies who participated in the syllabus wersquove also put together a series of what we call Global Accounting Principles This is a series of principles which describes what good management accounting looks like and what top quality management accounting in a company should be producing This then
ldquoCompanies are actively looking to build man-agement accountant capability to build that capacity within their organisa-tionsrdquo
36 wwwthecfomecom
worked on acknowledges the skill set needed by professionals throughout their career Therersquos a base level of competence that is needed but beyond that there is more There is business acumen the ability to communicate and influence and finally the ability to lead So you start off enhancing your raw technical accounting skills Then you need to place that into the context of the business that you are in Then as you move forward and as you rise to become the CFO yoursquoll need the others You have to learn how to present your work in a way that can influence and make an impact in the business The final piece is the ability to lead projects and other functions and to a great extent lead the board of directors Thatrsquos how the context works itrsquos not just about technical knowledge
How do you find that CFOs in the GCC region are responding to this programmeThe CFO has a real challenge on his hands now In 1975 80 per cent of corporate value is showing on the balance sheet By 2010 that dropped to less than 20 per cent Your traditional PampL reports no longer reflect the value of the business or how the business drives value
All things that should be of interest to investors is missing With things like the integrated report initiative wersquore starting to see the other dimensions that add value to business For CFOs thatrsquos all about strategic thinking and considering the long-term objectives Being articulate in implementing those strategies keeping in mind the risks and opportunities that the business faces We are also nowadays witnessing a whole new world of transparency around that
Are there electronic aspects to CIMArsquos advancing approachThe interactive case study simulates a real working situation and it tests how they can apply their knowledge in real life situations Theyrsquoll be presented with a scenario a few weeks before they take the exam so they can prepare for it They then go to an exam centre where they are asked questions about how they will deal with a certain situation in the real world Theyrsquoll get an email from the CFO giving them a certain task for a particular period of time We want to make it as close to reality as possible so students taking the exam will be assessing situations based on real life scenarios
ldquoThe CFO has a real challenge on his hands now as traditional PampL reports no longer reflect the value of the businessand [the role] must focus on strategic thinking and considering long-term objectivesrdquo
218KCIMA members worldwide
STAT FACTS
CIMA INTERVIEW
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
38
ERPANALyTICS
wwwthecfomecom
Faster more nuanced IT solutions are available to the modern day CFO Whilst Chief Financial Officers are called upon to analyse data across a number of spectrums the digital tools on hand are likewise being expanded to aid in focusing more squarely on the bottom line
ExCELLING WITH ERP
The global landscape is today firmly entrenched within a digital model As a result CFOs whom are called upon to take a larger role in a number of variables must also increase their abilities with respect to utilising the many upsides which tech innovations offer a business When surveyed about their most pressing concerns CFOs generally return a varying collection of responses Revenue growth regulatory changes and meeting quarterly goals are among the chief concerns Virtually every obstacle can be hurdled by way of maintaining the order of financial reporting and data which has long been
synonymous with the Chief Financial Officerrsquos remit A widening berth of ERP solutions is making this data all the easier to come by
Despite how sophisticated the market is today it was not long ago that ERP departments once spent days processing business reports
Said Rohan Tejura Assistant Vice President Focus Softnet ldquoTraditional ERP systems were solely data repositories Moreover these repositories werenrsquot real time and were incredibly dependent upon locational connectivity With the emergence of smarter development platforms more versatile devices and
39
ERPANALyTICS
wwwthecfomecom
more intuitive designs of system development the overall experience of the ERP now extends from data warehousing to reporting analysis trend mapping business intelligence and governance oriented capabilities Yet these solutions amazingly execute all of these deliverables via portable handheld devices and through cloud environmentsrdquo
New generation ERP systems must now be on the go whilst including up to the minute analytics to provide deeper insight into the business ERP Analytics tools use historical data captured from various business functions to provide valuable information for efficiency and business performance each incredibly priceless to a leading CFO
Finesse is an ERP provider which is continually addressing the transformation of output which the ERP industry is offering the equally transitioning role of CFO
ldquoWe provide end-to-end business management solutions to SMEs and Enterprises Our approach to ERP is much more than providing simply an operational management systemrdquo said Finesse COO Sunil Paul
ldquoWe believe that todayrsquos businesses need much more than integrating sales with inventory accounting and manufacturing but also to have seamless integration with all their sales channels including the point of sales ecommerce and inbound sales solutionsrdquo
A major im-petus of the ERP-cen-tered growth is based on how effec-tive com-prehensive real-time data proves to be for the CFO
40 wwwthecfomecom
before thereby creating new global benchmarks for overall economic growth
Microsoft Arabia CFO Sadrul Khan offered insight into just how far the knowledge economy has influenced regional financial leadership by explaining how one of the most prioritised technologies by CFOs in the region is social platform monitoring
ldquoOne of the five technology choices that CFOs tend to prioritise in boosting productivity efficiencies and faster decision making in the fast paced business environment which include a social platform that monitors trends customer sentiments and helps process mashable data for customer centricity and business growthrdquo said Khan
A major impetus of the ERP-centered growth is based on how effective comprehensive real-time data proves to be for the CFO Whether employed as on-premise ERP software-as-a-service or cloud-based solutions a nearly identical ethos is being utilised Allowing the CFO to quickly access the performance of all facets of a business is paying dividends in the boardroom a reality which is showing itself increasingly in the Middle East
The technologically-charged relationship between ERP solutions and the regionrsquos CFOs is expanding and as a result has catalysed what many see as GCC economic performance outstripping that of many economies outside of the region as a result
In order to compete in todayrsquos fiercely competitive environment organisations need to think both innovatively and out of the box They require more insights about their business and their customers and need to ensure that they are able to meet the expectations of their internal as well as external stakeholders Enormous amounts of data both structured and unstructured is continuously being generated within the internal and external systems of the organisation which if analysed can be of immense value both to the business and subsequently the stakeholders associated with the organisation
With the the era of CFOs labouring over spreadsheets now in the past given how many business frontiers have become so dependent on mobile options such as the cloud more and more tech companies are providing the regionrsquos CFOs with information technology that converts traditional internal and external data into rich visual insights This information is then used for faster decision making and provides the ability for a CFO to assess manage and control risks Regional CFOs have grown enabled to drive corporate strategy accordingly demonstrating how the knowledge economy is now in full force amongst the Gulfrsquos corporates
Given that advanced IT has now become a regular CFO tool the regionrsquos CFOs are subsequently making faster decisions and driving internal growth models with greater speed and agility than ever
Tech companies are providing the regionrsquos CFOs with information technology that converts traditional internal and external data into rich visual insights
ERPANALyTICS
Donrsquot discoveritrsquos counterfeittoner afteritrsquos too lateOriginal HP Toner works first time every time1 unlike cheap toners which fail over half of the people who try it2 Non-HP toner can compromise your printerrsquos performance to give you streaked blotchy or faded prints Only original HP Toner cartridges deliver unmatched quality for the most professional-looking prints 100 of the time1
1 A QualityLogic 2010 study commissioned by HP comparing original HP LaserJet Monochrome print cartridges with nine brands of non-HP toner cartridges available in Europe Middle East and Africa for the HP LaserJet P1505 and P4015 printers HP 36A and 64A For details see wwwqualitylogiccomEMEAmonotonertestpdf 2 From a 2012 EMEA Lyra Research study commissioned by HP Results based on a total of 1050 HP Color LaserJet users who have used both original HP and non-HP toner cartridges of whom 552 experienced problems with non-HP cartridges
copy 2014 Hewlett-Packard Development Company LP
42
Private Equity ANALyTICS
wwwthecfomecom
The rise of PE-backed acquisitions is forcing CFOs to develop an entirely new set of skills
THE PRIvATE EQUITy CFO
The CFOrsquos utility in the world of private equity is without question on the rise The once-held belief of the CFO existing solely as the ldquoaccounting guyrdquo has been abandoned Over the last 20 years the role of CFO has become more demanding - requiring not just finance and accounting acumen but also a financial literacy in corporate planning risk management MampA assetliability management and regulation This evolution has been driven by a number of
key factors Yet the private equity industry which is now reshaping the corporate landscape through active ownership is by far the most significant factor driving change within the role of the CFO
PE-backed buyers today represent a larger percentage of overall buyers in the corporate acquisition marketplace than ever before Data provider Prequin estimates that as of June 2014 the capital raised by PE funds that
has not yet been deployed amounts to $114 trillion globally The result of this ldquodry powderrdquo is that a vast quantity of corporate acquisitions in the coming years will be undertaken by the private equity industry As such CFOs will be more accountable to demanding ldquosmart moneyrdquo shareholders than at any point in recent history Budgeting accounting and financial reporting will no longer exist as sole priorities but as a core competency among a
ldquoBy effec-tively using real-time data CFOs can create a dynamic process that proac-tively drives performance account-ability and value crea-tionrdquo
By Aaron Heidari
43
Private Equity ANALyTICS
wwwthecfomecom
robust set of complimentary and required skills Most of all the bar for CFOs is rising as PE investors will only accept above-average performance from their management teams
CFOs were once more reactive in function setting budgets based on other executivesrsquo plans and managing the flow of reporting to shareholders on a quarterly and yearly basis Today CFOs are required to become proactive managers of their respective businesses alongside their C-suite compatriots using a granular data-driven approach to aggregate analyse implement and report on every aspect of a companyrsquos operations
An important tool to drive this value creation process are KPIs Yet KPI structures including both aggregation and output are generally not up to the standards required of private equity investors prior to an investment being made
ldquoThe benefits of using KPIs and monthly reporting packages are significant By effectively using real-time data that is actionable and by partnering with functional area leaders within the organisation company CFOs can create a dynamic process that proactively drives performance accountability and value creationrdquo said Amanda Robinson Vice President of Accordion International in Dubai a consulting firm which is comprised of former private equity and investment banking professionals who
MENA region Cumulative Funds Under Management Since 2008
Source Zawya private Equity Monitor
19 636 20 36321 586
22 64323 506 24 250
-
5000
10000
15000
20000
25000
2008 2009 2010 2011 2012 2013
Cu
mu
lati
ve f
un
ds
($ m
)
$15mAverage MENA PE investment size in lsquo13
50Percentage of investment in IT and energy sectors
STAT FACTS
44 wwwthecfomecom
work with companies to deliver cost-effective project execution services
Active shareholders whose money it is being spent will typically require a data-driven justification before approving any budgets capital expenditures or new acquisitions Furthermore in many private equity backed companies the use of debt and the matching of shorter-term bank financing with longer-term investments will only be considered after a robust analysis is conducted to understand the companyrsquos ability to service that debt in the future This evaluation is not simply to identify revenues expenses and profits Itrsquos about drilling down into every transaction and rooting out data processing and reporting At least that is the expectation
The most valuable CFOs are those who have the ability not just to scrutinise and understand the financials but all also possess a wider grasp of the underlying data which truly comprise the business As an investor who has just acquired a stake in a new business I want a CFO who can manage the transition and stay ahead of my expectations Most of all a CFO should impress upon the companyrsquos shareholders a new way of doing business The first 100 days of an acquisition are said to be the most important During this period the CFOrsquos worth will be established when the new financial plan is due and the platform for the next five years of growth is presented
A CFO should man-age the tran-sition stay ahead of expectations and impress upon the companyrsquos shareholders a new way of doing business
Investment Volume By Sector Since 2006
Investment Volume By Sector in 2013
Source Zawya private Equity Monitor
1
3
30
17
3
28
3
4
6
4
6
5
17
9
9
6
9
5
8
6
6
2
3
10
Education
Education
Information Technology
Information Technology
Other
Other
Telecoms
Telecoms
Media
Media
Transport
Transport
Oil amp Gas
Oil amp Gas
Healthcare
Healthcare
Consumer goods
Consumer goods
Food amp Beverages
Food amp Beverages
Leisure
Leisure
Manufacturing
Manufacturing
ANALyTICS
Private Equity
2000857 NBAD ratibi mag ad 200x268 Finalindd 1 92514 1017 AM
46 wwwthecfomecom
THE FUTURE OFACCOUNTING EDUCATIONAddRESSINg THECOMpETENCY CRISIS
Have you ever stopped to think about how the accounting profession has changed since you graduated from college Recent graduates can answer this question by reflecting on the last two or three years whereas for other more seasoned professionals answering this question requires a bit more thought and memory searching Indeed we can all think of ways that the field of accounting is remarkably different today from the one we likely envisioned during our college daysmdashregardless of which decade we each donned our cap and gown This gradual transformation of the accounting profession leads to two important questions related to competencies bull Which competencies are important for success inaccounting todaybull Were these competencies consciously developed as partof your accounting degree programme
We suspect that more than a few of you would answer ldquonordquo to the second question Put another way our profession may be facingmdashmore so than at any time in the pastmdasha ldquocompetency crisisrdquo that is a gap between the competencies needed for professional success and those taught in our college classrooms today We propose a three-pronged strategy or ldquogame planrdquo for overcoming this competency crisis and in turn better preparing accounting graduates for the challenging world they will face First all of us accountants need to understand the changes that have already taken place in our profession and perhaps more importantly anticipate the changes that are on the horizon Second we need to educate ourselves and future generations of accountants so that as a collective group we can deliver the expanding set of competencies demanded in todayrsquos dynamic organisational
contexts Third as professional organisations and as individuals we need to think beyond ourselves by asking How can I (or we) help the accounting profession address the competency crisis
A Shift Toward Integrated ThinkingMany articles and white papers have been written that describe in detail the changes that have occurred in our profession over the last few decades but for our purposes wersquod like to distill these changes down to one crucial idea How does the accounting function add value to an organisation Accountants have evolved from support-oriented personnel who hand off information to others who actually make decisions into business partners who ldquohave a seat at the tablerdquo with managers
By peter C Brewer James E Sorensen CpA CgMA and david E Stout
47wwwthecfomecom
1048576bull What regulatory risks mayaccompany the proposal
1048576bull What social and environmentalfactors will we face if for example the proposal requires investing in overseas operations
1048576bull What types of employeeresistance may arise if we implement the proposal and how will we overcome the root causes of any such resistance
1048576bull Can and how should we valuefuture options associated with the proposal such as expanding or contracting the investment over time as new information becomes available
1048576bull Should we use debt or equity tofund the proposal
In short accountants have evolved to become integrated thinkers who enable EPM by partnering with managers across the organisation to add value Yet as EPM has gradually become the centrepiece of our professionrsquos value proposition accounting education hasnrsquot done enough to embrace it To overcome this gap wersquod like to further suggest that the concepts of competency integration and EPM need to come ldquofront and centrerdquo as we move forward in educating the next generation of successful accounting practitioners
Accounting Education No Longer on the SidelinesRecently a task force consisting of members of IMAreg (Institute of Management Accountants) and members of the Management Accounting Section (MAS) of the American Accounting Association (AAA) addressed the competency issue How should accounting education change fundamentally to help close the competencies gap The efforts of the task force led to
cash flows and how to apply discounted cash flow (DCF) decision models such as net present value (NPV) is of foundationalmdashsome might say critical mdash importance But integrated thinkers draw on an understanding of organisational strategy coupled with a broader set of competencies (beyond what might be considered technical or foundational knowledge) when making these types of decisions For example they consider how behavioural issues may influence the capital investment decision-making process Perhaps the financial estimates contained in the NPV analysis are too optimistic because the manager who prepared the numbers has a vested interest in seeing the project approved Decision makers also need to consider issues such as leasing vs buying a capital asset and the corresponding impacts on the financial statements and ratios that are tracked by investors and lenders What nonfinancial factors are associated with the proposed investment Add in the tax consequences of capital investment decisions coupled with the need to maintain internal control over any new business processes tied to these decisions and the need to think in an integrated fashion across a variety of accounting competencies becomes apparent
Furthermore becoming a true business partner with managers across the organisation requires more than simply integrating various accounting competencies It also means thinking like a business manager or a chief executive officer (CEO) Returning to the capital budgeting example an integrated thinker will ask questions such as
across the organisation Together they formulate and plan strategies then participate in collaborative decision-making processes that execute those strategies in a manner that adds stakeholder value Said another way accountants have evolved to become enterprise performance managers This shift in our orientation from a support function to an enterprise performance management (EPM) role has enormous implications for defining the determinants of success within our profession the most important of which involves becoming collaborators and ldquointegrated thinkersrdquo Take for example a common but important business decision process capital investment analysis Certainly technical knowledge regarding how to estimate relevant after-tax
48 wwwthecfomecom
expanding capital budgeting discussions to include financial statement impacts tax consequences and internal control issues integrates topical coverage across the External Reporting and Analysis Taxation Compliance and Planning and Assurance and Internal Control competencies shown in Figure 1
Third accounting curricula can incorporate a broader set of management competencies For example evaluating capital investment proposals from the perspectives of change management (Leadership) social and environmental issues (Ethics and Social Responsibility) regulatory concerns (Governance Risk and Compliance) and capital structure (Additional Core Business Competencies) brings a CEOrsquos perspective to the decision-making process
Fourth accounting curricula should include foundational competencies such as proficiency with spreadsheets and written and oral communication In the context of capital budgeting this may include asking students to use Microsoft Excel to perform a sensitivity analysis and then to present their findings to the entire class
Working to Fix the ProblemAt this point although you may agree with us that therersquos a competency crisis within the accounting profession you may be wondering What does this have to do with me What can my organisation do to help address this so-called competency crisis The answer a lot Practice partners and academic partners can help the accounting profession overcome the competency crisis That said letrsquos take a closer look at the role of practice partners first
improvement) and accounting competencies (external reporting and analysis planning analysis and control taxation compliance and planning information systems assurance and internal control and professional values ethics and attitudes) Of critical importance to the framework is the assumption that the set of competencies contained in Figure 1 would be developed and integrated over time through a blend of formal education (including continuing education) training and job experience
What levels of integrationmdashon the road to developing integrated thinkers in accountingmdashare possible First accounting educators can integrate within a single accounting competency So referring back to our capital budgeting discussion teaching computational models such as NPV analysis coupled with a review of various behavioural issues associated with capital investment decisions would be an example of integrating within the Planning Analysis and Control competency listed in Figure 1
Second professors can integrate across accounting competencies For example
a recently published article that contains a proposed framework for accounting education reproduced here as Figure 1 The framework is general in the sense that itrsquos meant to apply to all accounting students not subgroups based on career specialisation such as tax assurance services corporate finance and the like Itrsquos based on the idea that accounting educators can better prepare students to deliver our professionrsquos EPM value proposition through integrated competency-oriented curricula (For more see ldquoFocusing Accounting Curricula on Studentsrsquo Long-Run Careers Recommendations for an Integrated Competency-Based Framework for Accounting Educationrdquo in the May 2014 edition of Issues in Accounting Education)
A glance at Figure 1 reveals three levels of competencies foundational competencies (communication ability to leverage technology and analytical thinking and problem solving among others) broad management competencies (including leadership ethics and social responsibility and process management and
Proposed Competencies-based Framework for Accounting Education
FOUNDATIONALCOMPETENCIES
ACCOUNTING COMPETENCIES
BROAD MANAGEMENT COMPETENCIES
leadership
ExternalReportingamp Analysis
PlanningAnalysis
amp Control
TaxationComplianceamp Planning
InformationSystems
Assuranceamp InternalControl
ProfessionalValues Ethics
amp Attitudes
Communication
Quantitative
Interpersonal
Technological
Analytical Thinking ampProblem Solving
Ethics amp SocialResponsibility
ProcessManagement ampImprovement
GovernanceRisk amp
Compliance
AdditionalCore BusinessCompetencies
Although you may agree with us that therersquos a competency crisis within the account-ing profes-sion you may bewondering What does this haveto do with me
A practice partner should be or become a CMAreg (Certified Management Accountant) maintain professional certification by completing required Continuing Professional Education (CPE) hours and regularly read the IMA publications Strategic Finance and Management Accounting Quarterly
In addition there are a number of excellent resources that deal with topics covered in this article and that IMA makes available to its members
Strategic Finance PowerPacks(wwwimanetorg SFPowerPacks) These are resources focused on contemporary topics similar to those discussed earlier Current offerings include Risk Management Strategic Planning IT Skills amp Software and Internal Controls Each PowerPack includes a combination of resources such as research studies articles and links to webinars
Statements on Management Accounting (SMAs)(wwwimanetorgresources and_publicationsresearch_ studies_resourcesstatements on_management_accounting aspx) SMAs represent monographs classified into one of the following six categories Leadership Strategies and Ethics Technology Enablement Strategic Cost Management Business Performance Management Finance Governance Risk and Compliance and the Practice of Management Accounting Multiple items are available within each category For example the Practice of Management Accounting category includes (among other items)
49wwwthecfomecom
the Definition of Management Accounting and Implementing Shared Service Centres
Research Studies (wwwimanetorgresources_and_publicationsResearch_Studies_and_ResourcesAll_reportsaspx) The ldquoThoughtLeadershiprdquo section of IMArsquos website includes research covering a broad range of issues classified into seven categories For example under the ldquoGlobal Business Environmentrdquo category the following two research reports are available ldquoKey Differences Between IFRS and US GAAP Impact on Financial Reportingrdquo and ldquoCosting Methodologies and Cost Management Practices in the Peoplersquos Republic of Chinardquo
IMA Leadership Academy (www imanetorgprograms_events leadership_academyaspx) As described on the IMA website this programme is designed to assess a memberrsquos leadership status enhance that individualrsquos skills (principally through monthly webinars) and recognise leadership achievements These benefits are free to members
How You Can Make a Bigger Impact In addition to attending local regional and national IMA meetings consider inviting a small group of students to each chapter meeting This could be a wonderful (and relatively low-cost) option for mentoring aspiring accountants and finance professionals providing networking opportunities and introducing students to cutting-edge issues regarding the practice of management accounting Joining a university accounting
advisory group may be another way to influence the development of EPM in that institutionrsquos curriculum design
Other methods to enhance EPM in your organisation include (1) forming user groups within your company your local IMA chapter or your industry to review and share EPM experiences (2) encouraging advancement in the firm to be linked to EPM proficiency (3) focusing your companyrsquos recruiting efforts on candidates who display a background in andor understanding of EPM and (4) organising cross training within your company to enhance a mutual understanding of each otherrsquos respective roles
Finally visit the Competency CrisisTM website (http competencycrisisorg) set up by IMA to unite the accounting and finance constituencies professionals students employers academics and professorsmdashand explore competency issues through the lens of each stakeholder group The site is designed to ldquoencourage a discourse spur action and create a community dedicated to resolving the serious crisis of competency present in the professionrdquo Special sections of the website are devoted to educators students and employers professionals
Our Partners in Education Much like a practice partner an academic partner should be or become a CMA maintain professional accreditation by completing CPE hours and regularly read IMArsquos publications
Academic members of IMA can pursue and actively promote the CMA programme at their respective institutions
50 wwwthecfomecom
IMArsquos website contains helpful resources including an exam content overview content specification outlines for each of the two parts of the CMA exam and learning outcome statements The current exam covers some of the professional competencies represented in Figure 1 A summary of changes to exam content which will be effective in January 2015 is provided on the IMA website in News amp Media Relations which is located under ldquoAbout IMArdquo (See the press release dated March 24 2014) Other helpful resources include ldquoICMA Announces CMA Exam Content Changesrdquo in the April 2014 issue of Strategic Finance as well as ldquoManagement Accounting Career Readiness Shaping YOUR Curriculumrdquo
These forthcoming changes are based on the most recent IMA study of the knowledge and skills needed by management accountants from the view of CFOs controllers and other accountingfinance professionals from around the world
Also consider taking a group of your students to the IMA Student Leadership Conference held each November The Conference provides excellent networking opportunities for you your students and practicing professionals Students can learn firsthand from Conference presenters the challenges and opportunities facing finance and accounting professionals today
Moreover if your institution doesnrsquot currently have an IMA Student Chapter consider forming one One of the authors of this article David Stout reinstituted the student chapter at his school (Youngstown State University) after travelling with a group of his students to the IMA
Student Leadership Conference in Cleveland Ohio Through an IMA Student Chapter on campus students are able to work closely with a sponsoring local IMA chapter and bring to campus speakers who are experts in a wide range of topics including those discussed earlier in this article Each year student chapters compete for an Award of Excellence (AOE) and recognition as an Outstanding Student Chapter In addition IMA student members are able to engage in networking activities leadership training mentoring and community service programmesmdashall through their local chapter
You also might consider volunteering to serve as a Campus Advocate In this role yoursquoll represent IMA in all major matters of interest to your students (scholarship opportunities starting a student chapter mentoring and the like) and to your institution (for example leveraging IMA resources to advance the relevancy of the accounting curriculum use of educational case studies published in the IMA Educational Case Journal and access to IMArsquos ethics curriculum)
And if you havenrsquot yet done this ask IMA to endorse your accounting programme (information is available at www imanetorgeducator_resources indexaspx) This programme is designed to identify business curricula that meet the quality educational standards required to prepare students to earn the CMA designation Endorsement is based on an analysis of the curriculum and topics covered on the two-part CMA exam Currently 12 programmes have been endorsed
Finally if your school has an IMA Student Chapter consider participating in the annual IMA Student Case Competition where students are asked to propose a solution to a real world problem (Cases are solicited each year by Raef Lawson IMA VP of Research and Policy and IMA Professor in-Residence) Finalists make their presentations at IMArsquos Annual Conference amp Exposition before a set of judges consisting of accounting faculty members and practitioners Each year a new case is published in the August issue of Strategic Finance for students to use for that yearrsquos competition
Working TogetherIn this article we have summarised the changes that have affected the accounting profession and provided a competencies-based framework for guiding accounting educators in responding productively to those changes As a management accountant you know that implementing change in any organisation let alone within an entire profession never comes easily To be successful in overcoming our professionrsquos competency crisis IMArsquos practice and academic partners will need to assume leadership roles in defining enterprise performance management as the cornerstone of the accounting professionrsquos value proposition
This article was orginally published in the August 2014 issue of Strategic Finance It appears here with the permission of The Association of Accountants and financial professionals in Business
We need to educate ourselvesand future generations of account-ants so that as a collec-tive group we can deliver theexpanding set of com-petenciesdemanded in todayrsquos dynamicorgani-sational contexts
THE POWERFUL AND THRIFTY OFFICE ALL-ROUNDERS
The new ECOSYS M3560idn series will astound you With their print speeds of up to 60 pages per minute they are among the most productive A4 bw multifunctionals on the market We nevertheless managed to keep their ecological footprint and total cost of ownership impressively low by using our well-known ECOSYS technology and equipping the devices with our renowned long-life components The result Not only less waste and lower maintenance costs but also less hassle for you and all your colleagues You will also greatly appreciate the many customisation possibilities of the devices equipped with KYOCERArsquos open solution platform HyPAStrade as it allows you to tailor the device to your needs So yes we are proud of our new range of MFPs and can hardly wait to share their numerous benefits with you
For more information please contactKYOCERA Document Solutions Middle East | PB Box 500817 DubaiUAE | Tel +9714 4330 412 | Fax +9714 4231 944KYOCERA Document Solutions Europe BV - wwwkyoceradocumentsolutionseuKYOCERA Document Solutions Inc - wwwkyoceradocumentsolutionscom
52
ACCAINTERVIEW
wwwthecfomecom
GLOBAL By ASSOCIATION
across the region from our key employers and learning provider partners to our active and growing student and member base I want to understand their challenges and priorities and how ACCA can work with them to help support the economic success of the region
What can a CFO gain from working with ACCAThe ACCA qualification is about complete finance professionals For CFOs it brings the technical knowledge vital to business success complemented with the strategic management skills and ethical competence crucial to an organisationrsquos success As an organization ACCA in the UAE brings CFOs access to that local and global network of peers and expertise along with our leading research and insights that help them to keep up to date on the issues that matter most
Are there any initiatives in place to leverage the recently announced partnership with AAA
How are the ACCArsquos many years of activity being applied to the Middle EastACCA has now had a presence in the UAE for well over a decade During that time we have established strong relationships across the Middle East epitomised by the recent signing of our Strategic Partnership with AAA As a national body in choosing to partner with ACCA they recognised the local and global perspective we bring We are continuing to work with students members and employers across the Middle East to build their networks knowledge and business success through events research and insights and access to a growing number of online resources
Which initial priorities are among your key aims upon joining the organisationrsquos efforts in the UAEIn the first few months I hope to build on the success of the team in the UAE My priority will be to meet as many of our key stakeholders
The Association for Chartered Certified Accountants (ACCA) provides its services across a number of international borders The recent announcement of Lindsay Degouve de Nuncques as the new head of the Associationrsquos UAE chapter further exemplifies the ACCArsquos reach based on her previous work in the UK Nuncques shares here what she brings to the Middle East and just how globalisation has driven her ascent
53
ACCAINTERVIEW
wwwthecfomecom
The strategic partnership with AAA is the first of its kind in the region Students who complete the UAECA qualification will be entitled to both the AAA and ACCA designations and ACCA members in the UAE will also be eligible to apply for AAA membership This is a very exciting development in the market and together AAA and ACCA will be working to deliver maximum value to all our stakeholders from this partnership As we launch the UAECA qualification this activity will start in earnest
Which key industries will you be spotlighting in the Middle East in the months aheadOur experience of working across all sectors and levels of organisations globally gives ACCA a unique insight into all types of industries We will continue to be working with employers across the spectrum in the months ahead to help them gain the insight and make the connections that drive businesses to succeed at whatever they do
ldquoThe ACCA qualification is about complete finance professionals For CFOs it brings the technical knowledge vital to business success complemented with the strategic management skillsrdquo
54
Islamic FinanceMARKET OUTLOOK
wwwthecfomecom
In its 10th instalment the Forum is hosted in Dubai as a direct result of the UAErsquos increasing importance in the world of global Islamic finance
THE WORLD ISLAmIC ECONOmIC FORUm LANDS IN DUBAI
In Dubairsquos continued quest for leading the world across a range of spectrums the Emirate accelerated its desire to become the worldrsquos leading hub for Islamic finance by hosting the 10th installment of the World Islamic Economic Forum (WIEF) Delegates from dozens of countries attended to take part in a three-day event held at Madinat Jumeirah which rests alongside Dubairsquos gleaming coastline Held under the patronage of His Highness Sheikh Mohammed Bin Rashid Al Maktoum the
Vice President and Prime Minister of the UAE and Ruler of Dubai key speakers included The Honorary Dr Zeti Akhtar Aziz Governor of the Central Bank of Malaysia HE Kairat Kelimbetov Governor of the National Bank of Kazakhstan The Honorary Datorsquo Sri Mohd Najib Tun Abdul Razal Prime Minister of Malaysia and HE Xavier Bettel Prime Minister of the Grand Duchy of Luxembourg
Launched in 2006 in Malaysia WIEF has grown in tandem with the increased
Delegates from dozens of countries attended WIEF to take part in the three-day event
sophistication and reach of Islamic finance After a successful event in London in 2013 amidst increased interest in Islamic finance across Europe WIEF relocated to Dubai where the local business structure is keen to host halal finance
Said Hamad Buamim President and CEO Dubai Chamber of Commerce and Industry co-organisers of the event ldquo[The forum] is the start of a new chapter of cooperation between Dubai and the world as part of
55
Islamic FinanceMARKET OUTLOOK
wwwthecfomecom
Dubai Capital of Islamic Economy visionhellipestablishing a unified regulatory authority to provide the framework for standards across halal industries will significantly accelerate growth Likewise we need to see increased cooperation and partnership between the public and private sectors This is already happening with great success here in Dubairdquo
The order of global cooperation needed to facilitate growth across the Islamic finance world was more than apparent at WIEF based on how many differing nations were represented at the event The exhibitorrsquos hall was populated with a number of key Malaysian stands representative of the Southeast Asianrsquos ranking as the global leader in Islamic finance Also present were companies from Saudi Arabia also a key locality in the worldrsquos halal industries An interesting yet prescient presence was of attendees from South Korea a nation which is eager to participate in Islamic finance and will be hosting the WIEF Pyeongchang Roundtable in December 2014
ldquoGangwon is a province located in Korea which is very interested in new business opportunities Wersquove realised the strength of the Islamic economy and have come here with many different companies The first type is based in real estate investment We also have companies which want to export their products to the Islamic economy based on their halal qualities And Gangwon will also be hosting the Winter
ldquoKorea is very interested in the strength of the Islamic economy and wants to export its products based on their halal qualitiesrdquo
56 wwwthecfomecom
$247trillionProjected value of halal products industry in lsquo18
125Muslim percentage of global tourism expenditure
STAT FACTSOlympics in 2018 and are presently seeking investments for this as wellrdquo said Seong-hun Kim a member of Gangwon Province Governmentrsquos Export Support Team
Dubai proved to be an excellent place for the event considering how well the UAE is able to so regularly corral international cooperation A key sign of this was witnessed recently when Luxembourg now considered the third most important base for Islamic finance globally opened a finance office in Dubai International Finance Centre The European nation also opened a euro200 sukuk earlier this year which was quickly oversubscribed
The prime minister of Luxembourg offered the WIEF audience a riveting speech which detailed just how international the Forum has become whilst encouraging more of the world to support the growing influence of Islamic finance
Said Bettel ldquoWe need to innovate more economic partnerships for growth We sometimes need to reengineer relationships but also have to make sure these relationships remain sustainable Growth in one country also brings growth to others as long as this is guided by free market initiatives Free trade and free flow of capital combined with innovation leads to prosperity We have all gathered here in Dubai to explore the future of Islamic finance and Luxembourg is also a pioneer of Islamic finance in Europe The Islamic financial sector has a major role to play in continued global growthrdquo
The Islamic Corporation for the Development of the Private Sector (ICD) is based in the Kingdom of Saudi Arabia where it manages an international fund worth $2 billion half of which is available for subscription With shareholders in more than 50 countries and a sovereign sukuk fund recently launched in West Africa the ICDrsquos CEO Khaled M Al Aboodi attended WIEF this year excited to participate in the global event
How does the ICD approach its attendance at the World Islamic Economic ForumI think the Forum is one of the best places for discussing the financial issues of the OEC member countries It has been around for ten years and has grown to become a very important platform for discussion Wersquore here to attend and listen but also to network Itrsquos a great networking platform and a place to share views whilst letting everyone know what we have to offer
How has Islamic finance changed over the yearsOf course itrsquos growing in a large scale Some of it actually needs more support particularly with respect to regulatory frameworks Wersquore trying to partner with many international organisations like the IMF to try to provide support to countries to adapt regulation for Islamic finance Sukuk issuance is one of the biggest issues that needs to be addressed because there is a huge amount of liquidity in this arena Due to issues related to regulation sukuk issuance can be costly But with the regulation we are confident it will be on a level playing field with other forms of finance Compliance is a major area where more work can be done The Forum started with a roundtable on sukuk which shows how helpful WIEF has been over the years
What type of work does ICD do internationallyICD helped the government of Senegal to issue the first sovereign sukuk This was successfully issued last summer Progressing in this manner is something wersquod like to see continue across West Africa in order to utilise its resources with aiding development in the region in mind
QampA WITH KHALED M AL ABOODI CEO OF ICD
Islamic FinanceMARKET OUTLOOK
OFFICIAL SPONSORS
ENDORSED BY OFFICIAL HOST OFFICIAL
COMMUNICATIONS PARTNER
MEYDAN HOTEL DUBAI UAE19 - 20 NOVEMBER 2014
WOMENOMICSthe next emerging market
TAKE PART in making change happen UNITE with business and through leaders from across the globe
PARTICIPATE to the expansion of a modern and inclusive economy
58
Gautam PradhanINTERVIEW
wwwthecfomecom
SUCCESS BEyOND BOUNDARIES
in other management roles such as strategic decision making mentoring and leading efficiency and productivity across a range of other departments and functions as well as a being a catalyst in ensuring that the boardrsquos vision for the organisation is achieved
A significant percentage of NMDCrsquos shares are owned publicly Does the CFO play a role in balancing the interests of the shareholdersAs a CFO balancing the shareholdersrsquo interests is definitely part of my responsibility In order to achieve this goal there needs to be a careful evaluation of each decision while keeping the short-term and long-term goals of the company in mind At NMDC we actively implement a system where we utilise a balance scorecard as a method of ensuring that all our primary objectives are met yet at the same time continuously enhance our relationships with our shareholders
NMDC has completed various projects across the Emirates Are there plans to move abroadAs NMDC moves towards becoming an international player our strategic expansion plans are focused in areas within the GCC region and India In line with this strategy we opened
How has a company with such a unique set of deliverables grown so consistently over the yearsOur organisation strongly believes that the core to our strength is the people process and equipment A strategic decision led by our Board of Directors and the senior management has been implemented that required us to consistently invest in these three aspects to help expand our business beyond the territorial boundaries of the UAE and at the same time enhance what we can offer which is relevant to these segments We attribute our success to the efforts which every employee contributes We also strongly believe in the ldquoWe can make it happenrdquo principle The management raises the index of performance while setting SMART objectives within the organisation and encouraging the employees to achieve them
How has your position as the CFO changed over NMDCrsquos 35 years of operationAs the market evolves and business dynamics change my role as the CFO has become complex and more challenging A few years back I was mainly focused on bookkeeping accounting and other financial responsibilities such as arranging bank facilities But moving forward I became more involved
The UAE is progressively becoming a hub for world-class infrastructure The country has duly impressed the rest of the globe with noteworthy land developments showcased across the emirates Among the remarkable landscapes found in Abu Dhabi are the Corniche Beach Yas Island and Sir Baniyas Island Behind these successful projects is NMDC the dredging division of Abu Dhabi National Oil Company (ADNOC)
In an interview with CFO Magazine Gautam Pradhan Chief Financial Officer NMDC shares an exclusive look into the companyrsquos international blueprint for growth and his dynamic role as a strategic leader of one of the best in dredging and marine construction in the Middle East
59
Gautam PradhanINTERVIEW
wwwthecfomecom
branches in Qatar Bahrain Oman and India This has paid rich dividends recently as projects of strategic importance are bagged in Qatar and Bahrain Furthermore NMDC (UAE) has recently played a key role as a leader of an international consortium with Royal Boskalis Westminister (Netherlands) and Jan De Nul Group (Belgium) for the awarding of the Suez Canal Dredging project in Egypt Moving forward we have devised a strategic approach that will enable us to play a key role in the development of Indiarsquos marine infrastructure
What are the global strategies that are part of the CFOrsquos responsibilitiesAs CFO understanding the macro economic scenario risk analysis and mitigating those risks are all a part of my responsibilities I also have to have a proper comprehension
ldquoA few years back I was mainly focused on financial responsibilities moving forward I became more involved in strategic decision making mentoring and leading productivityrdquo
Gautam PradhanINTERVIEW
60 wwwthecfomecom
of the challenges faced by the company in terms of dealing with foreign contracts direct and indirect taxes and hedging and managing the integration process These are essential to enhance shareholders wealth and mitigate undue risk
How significant is accountancy for NMDC in its operations Why exactlyAccountancy is the lifeline of any company it does not only record the finances it also reflects the health of the organisation The MIS reports analysis trends and statistical information go a long way toward effectively providing
the diagnostic approach essential for the company
How have NMDCrsquos environmental activities helped the companyrsquos bottom lineNMDCrsquos work is well-synchronised with our environmental activities and specifically with nature Our activities are closely linked to sand and water and we view such activities with strategic importance Projects such as increasing water supply to mangroves and beach nourishment help us support the environmental activities while adding to our bottom line
ldquoAccountancy is the lifeline of any company it does not only record the finances it also reflects the health of the organisationrdquo
A burgeoning slice of Abu Dhabi coastline
The largest business awards
in the GCC30th November Dubai
nominate now at wwwstarsofbusinessawardscom
Stars of Business has become an iconic awards brand like no other in the region It recognizes the very best SMEs across 26 business categories Itrsquos universally respected as scientifically assessed and unimpeachably judged
327000 SMEs across the UAE$234 billion estimated total revenue of the SME sector4974 Awards entries in 20131856 Individual company applicants
Presenting Partner Strategic SME Partner Gold Sponsor Gold Sponsor VIP Hospitality Partner Supporting Partner
Trade Facilitator PartnerTrade Credit PartnerLogistics Partner
Institutional Partner Institutional Partner Event Partner
OrganiserPublisherMedia Partner Media PartnerPort Authority Partner
62
David Allen INTERVIEW
wwwthecfomecom
What went into completing your bestseller ndash Getting Things Done (GTD)After twenty years of researching developing and implementing a methodology for achieving stress-free productivity based upon
thousands of hours spent desk-side with
some of the best brightest and busiest people in the world I decided to write the manual for it Thatrsquos what Getting Things Done is
What are the five phases of mastering workflowIn order to get
any situation under control so
you can focus you will utilise these five
steps Whether yoursquore managing your kitchen
or your company you will need to collect and capture what has your attention clarify what if anything to do about it organise it according to what it means to you review and reflect upon it in relation to
Todayrsquos evolving CFO is often caught between the world of business set-up generating revenue managing employees and building strong company infrastructure When can things actually get done What can one do to boost productivity and master workflow World-renowned business coach David Allen has the answers
PRODUCTIvITy PRINCIPLES WITH
DAvID ALLEN
63
David Allen INTERVIEW
wwwthecfomecom
those are greatly subvertedHow does one maintain a fair balance between the time spent planning and actually getting things doneYou simply need to spend just the amount of time you need to to trust that what you are getting done is the right thing to be getting done in the moment It takes as long as it takes to get to that point Why would you do anything less
How can one apply your core productivity and workflow principles to todayrsquos technologically driven environmentThe principles and their techniques are system-independent Whether you have meaningful input from the Internet your smartphone or a conversation in the hall you must engage with it equally Technology has simply increased the flow of input and ease of distraction in your world
There is a lot of talk about how connected wersquove become and how connectivity is driving tremendous business growth Does connectivity actually come with its fair share of downsides
Connectivity is obviously a two-edged sword We can have intimate productive and creative interaction instantly with someone on the other side of the world and we can just as easily be distracted and seduced into those engagements when they may not be the best use of our attention and resources Donrsquot shoot the medium Itrsquos all simply bringing attention to your clarity of direction and priorities or lack thereof
Could you share a few quick tips with our readers to instantly boost productivityWrite everything down that has your attention Decide the very next actions required to get closure on all of them Any next actions that require less than two minutes do instantly Park reminders of everything else somewhere that yoursquoll see when you can do something about them
We are currently facing a massive information overload What are some basic principles you could suggest to mentally organise such large amounts of dataConstantly ask yourself Where am I going Whatrsquos important and rewarding to me Is this information
the whole and then engage your resources with intuitive trust
As a CFO how can you transfer efficient workflow management skills to your employees Itrsquos very difficult to legislate processes for individuals ndash you can really only hold them accountable for their results But if you are managing your own commitments and intersections with them with integrity and rigour it will automatically force your team to ldquostep up to the platerdquo in their own behaviours in order to meet your standards If you request their complete list of their company projects and they canrsquot produce it thatrsquos a sign theyrsquore not in control If they make a commitment to you that they havenrsquot kept thatrsquos data about their performance GTD is simply about good operational business practices
With so many planning and organising activities in your methodology is there a risk of losing spontaneity as a strategistThe reason for these best practices is to optimise freedom creativity and spontaneity Without them
ldquoBut if you are manag-ing your own com-mitments and intersec-tions with them with integrity and rigour it will automatical-ly force them to ldquostep up to the platerdquo in their own behaviours in order to meet your standardsrdquo
64 wwwthecfomecom
supporting that Park whatever you find potentially meaningful somewhere that is easy to access when needed
Being an entrepreneur is a non-stop job How do you ensure that you have an adequate work-life balance Pay attention to what has your attentionmdashwith regard to anything Your health relationships career finances etc Notice when something might be ldquooffrdquo and make good decisions about what you need to do to get it back ldquoonrdquo again
Does your work teach people to be efficient or effective In essence they are the same thing Effective choices are generated by efficiency on a higher level If you want to implement strategy most effectively it demands utilising your resources optimally which is efficiency
Does motivation actually improve quality of work or purely quantityDepends on the focus of the motivation You can be motivated to work harder and you can be motivated to work smarter
What is your favourite productivity mantra that
you implement in your day-to-day lifeUsing my own in-basket and note-taking devices to capture potentially meaningful and valuable ideas and soon afterwards clearing all of them out by deciding what to do about them if anything
Your books seminars and other work inspires many individuals and businesses Who is your personal inspiration or role model I have many about many different aspects of my life The only person though that I ultimately trust as my best guide is my higher self which I try to access as frequently and clearly as I can
Finally what advice would you give to current business owners and aspiring entrepreneurs looking to gain complete control of their life and businessCapture what has your attention clarify what you need to do about it to get it off your mind organise the inventory of all your commitments at all levels review and reflect on all of that regularly relax and trust your inner wisdom to engage with the most appropriate thing in the moment
ldquoIf you want to implement strategy most effectively it demands utilising your resources optimallyrdquo
David Allen INTERVIEW
APPSTECH TALK
wwwthecfomecom 65
mAxImISE BUSINESS lsquoON-THE-GOrsquo WITH THESE HANDy APPS
ipAd SpECIAL
SAMSUNG UNvEILS GALAxY NOTE EDGE
Network
AP
Display
OS
Camera
Video
Audio
Additional Features
GoogleMobile Services
Connectivity
Sensor
Memory
Dimension
Battery
The availability of service may differ by country All functionality features specifications and other product information provided in this document including but not limited to the benefits design pricing components performance availability and capabilities of the product are subject to change without notice or obligation
Samsung Galaxy Note Edge Product Specifications
25G (GSM GPRS EDGE) 850 900 1800 1900 MHz3G (HSPA + 42Mbps) 850 900 1900 2100 MHz4G (LTE Cat 4 15050Mbps) or 4G(LTE Cat 6 30050Mbps)May differ by country and carrier
27 GHz Quad-Core Processor
56 inch (1419mm) Quad HD+ Super AMOLED (2560 x 1440 + 160)
Android 44 (KitKat)
Rear Facing 16 Mega pixel Auto Focus camera with Smart OISFront Facing 37 Mega pixel camera with f19Rear Facing Camera HDR (Rich tone) Selective Focus Rear-cam Selfie Beauty face Virtual Tour Shot ShotampMore Dual CameraFront Facing Camera Selfie Wide Selfie
Codec H264 MPEG-4 H263 VC-1 WMV7 WMV8 Sorenson Spark MP43 VP8 Recording amp Playback up to UHD
Codec MP3 AACAAC+eAAC+ WMA AMR-NBWB Vorbis FLAC()() Ultra High Quality Audio (~192KHz 24 bit) support
Multi WindowUltra Power Saving ModeVoice Recorder (Normal Mode Interview Mode Meeting Mode Voice Memo)Download BoosterS Health 35Dynamic Lock ScreenBriefingEdge screen UX Revolving Interaction Immersive apps(Camera Video S Note)Ticker board Express me Quick Tools Night Clock etc
Chrome Drive Photos Gmail Google Google+ Google Settings Hangouts Maps Play Books Play Games Play Newsstand Play Movie amp TV Play Music Play Store Voice Search YouTube
WiFi 80211 abgnac (HT80) MIMO PCIeGPS GLONASS BeidouNFC Bluetoothreg v 41 (BLE ANT+)IR LED (Remote Control) USB20 MHL 30
Gesture Accelerometer Geo-magnetic Gyroscope RGB IR-LEDProximity Barometer Hall Sensor Finger Scanner UV Heart Rate Monitoring SpO2 (Dependent on market)
32 64 GB Internal memory + microSD slot (up to 128GB)3GB RAM
1513 x 824 x 83mm 174g
Standard battery Li-ion 3000 mAh Fast Charging (Adaptive Fast Charging amp QC20)
wwwthecfomecom66
APPSTECH TALK
AIR DISPLAY
SQUARE REGISTER
Using this app you can connect your iPad to your computer and use it as an additional screen While working on an important presentation or sales proposal you can extend or mirror your computer screen on your iPad This app is compatible with both Mac and Windows computers Note that to use this feature you have to install Air Display on your iPad and a separate free app on your computer The computer and iPad also need to be on the same Wi-Fi network in order to work in-sync
For Mac users the app allows you to connect to up to four screens ndash all at the same time
Apart from the ability to convert your iPad into a wireless display whatrsquos also attractive about this app is that it allows you to control your computer wirelessly using your iPad
This fantastic application can serve as a mobile point of sale for your business It allows you to accept credit card payments ndash including Visa MasterCard Discover and American Express A transaction fee of 275 is charged for every time you swipe a card The sale amount is transferred to your account within two working days
Once you download the app you can sign up and register for a unique card reader solution called the lsquoSquare Readerrsquo (this is free) Square Reader encrypts all card details and ensures that the transaction is secure Once you receive your Square Reader you can connect it to your device and are all set
The application also offers added features such as transaction history connecting to a receipt printer creating employee logins and more
AED 3699
PRICE
Free
PRICE
wwwthecfomecom 67
APPSTECH TALK
DOCUSIGNHave you ever been in a situation where your employees need you to urgently sign a contract but arenrsquot able to physically reach you in time DocuSign solves this problem with its easy-to-use eSignature feature In three easy steps you can sign important documents and securely send them to your intended recipient
First you have to import the document to your device ndash this could be from Dropbox Google Drive or another select applications You then place your signature or any other important legal information you need to include such as initials Once you have finished working on the document send it back via e-mail
Whatrsquos particularly great about DocuSign is the great emphasis it puts on security ndash so that users donrsquot have to worry about getting into any legal trouble
Use DocuSign and never miss a deadline again
Free for basic version
PRICE
MPAYAn initiative by the Dubai eGovernment Department mPay is a simple application that allows you to make important payments Once yoursquove signed up and entered your payment details you are good to go You can pay your Dubai Electricity and Water Authority (DEWA) bills Etisalat utility bills Dubai Police fines Recharge SALIK and much more
A handy feature is its lsquoauto-rechargersquo option which you can use to set automatic payments
Free
PRICE
Opinion CIMAPERSONALITIES
wwwthecfomecom68
NEW HORIZONSBy geetu Ahuja Head of gCC at CIMA
The days of the traditional accountant working within a small community in a small town in a small market have long gone CFOs are now being referred to as Chief Frontier Officers as they travel from market to market overseeing their offices overseas This new expanded role has distinct advantages for both the company and the CFO who gain new skills and new insights from foreign branches a single hand at the helm of many markets provides business perspectives on a global scale and benchmarks across the board
On a personal level working abroad also has huge importance Robert Walters the specialist professional recruitment consultancy recently conducted a survey
of almost 2200 employees across a variety of professions exploring a number of topics which ranged from working practices and attitudes to careers The results highlighted some notable trends particularly for finance professionals
In career progression for example the survey showed that 50 of all accountants see working abroad as either lsquoessentialrsquo or lsquoextremely usefulrsquo to furthering their prospects more than banking professionals lawyers and IT workers ndash a strong indication of how accounting professionals are thinking about their future either within their existing company or with opportunities elsewhere
Accountants with globally recognised qualifications obviously have a greater chance of gaining some experience abroad and the lsquoGen Yrsquo professionals in particular seem ready to pack their bags In a CIMA study conducted in the UK last year over a third of those seeking employment in the
next two years will prioritise opportunities abroad over those in their home countries many of them enticed by the career incentives offered by the Middle East
How quickly can they land what seems to be their dream job What are the realities It may be that the move is simply from one branch to another and the only significant difference is a view from the window but for those expanding rather than changing their roles we have seen a very real need for a depth and breadth of knowledge never needed before
As geographical boundaries are pushed ever-wider a CFOrsquos responsibilities are pushed with them For many finance executives the understanding of their own patch of land is no longer enough they now have to be aware of foreign markets up to speed with foreign trends and au fait with foreign laws There is a need for a new commercial awareness in geography as well as philosophy
As geographical boundaries are pushed ever-wider a CFOrsquos responsibilities are pushed with them
John vargheseQampA
wwwthecfomecom 69
BUSINESSSET UP YOUR
IN THE UNITED ARAB EMIRATES
TO
WAREHOUSESOFFICES INDUSTRIAL LANDFLEXI
Quick and easy company set-up
Less than an hour drive from Dubai
Complete cost-effective packages including licences and facilities
100 foreign ownership
Zero income and corporate taxes
Eligibility for UAE Residence Visa
BUSINESS SET-UP SOLUTIONS STARTING FROM AED 15000 (USD 4000)
RAK FREE TRADE ZONE PROVIDES
RAK Free Trade Zone Authority - Government of Ras Al KhaimahUAE (Ras Al Khaimah) Tel +971 7 2041111 (Dubai) Tel +971 4 7041875 (Abu Dhabi) Tel +971 2 6994888
Germany (Cologne) - Turkey (Istanbul) - India (Mumbai)
Call +971 7 204 1111 Visit wwwrakftzcom Join rakftz
Market IntelligenceANALyTICS
33wwwthecfomecom
the very reason why Mergers and Acquisitions are a popular way to enter into emerging markets Many companies piggyback on their clients who are entering these markets For instance if you are an IT consultancy working on a major project for a manufacturing and trading company with operations across India and China you can use their resources and expertise to explore opportunities in these countries
Remember to consider these steps every time you enter a
new market as every locality has its own set of unique needs One strategy doesnrsquot fit all
Surviving fierce market conditionsWhile the massive opportunity that lies within emerging markets paints a pretty picture businesses need to be wary of bottlenecks such as corruption volatility gaps in laws and regulations and strong competition There have been several high-profile cases of multinational companies withdrawing from emerging
markets owing to immense corruption pressures
There is also a high percentage of inherent risks in these markets which amount to many companies not succeeding in their first attempts It is important to take your time when adapting to these markets and fully understand the business dynamics Following recent case studies and going over the lessons learnt by multinational companies who have made an entry into these markets consider the below
bull Is your companyrsquos head-office ndash and senior management ndash located in your home country without any C-level representation in the new emerging market
bull Are you focusing all of your resources on doing business in the emerging market at the cost of losing profits in your home market
bull Have you researched local competitors in these markets who may already have a strong standing and proven models of success
bull Are you using the same ldquoentry approachrdquo and business model across different emerging markets
If your answer to one or more of these questions is yes it may be time to re-evaluate your presence in these markets and map out a different strategy
Finally remember that no matter what the outcome of your admission to these markets might be your business is sure to emerge out of this stronger tougher and ndash of course ndash ready for a new challenge
of companies believed they had invested more resources in
emerging markets than was required
entered a market without fully assessing the ability of the supply chain to support the expansion
entered with the wrong pricing model and an inappropriate
operating model
CONSIDER THE RISKS
48
24
20
There is also a high percentage of inherent risks take your time when adapt-ing to these markets and fully understand the business dynamics
Source Emerging markets expansion and the supply chain Economist Intelligence unit survey conducted on behalf of EY September 2010
34
CIMA INTERVIEW
wwwthecfomecom
The Chartered Institute of Management Accountantsrsquo (CIMA) Managing Director Andrew Harding visited Dubai to host the Institutersquos seminar on global management accounting principles In the wake of CIMA revising their well heralded syllabus Harding discussed with CFO Magazine what the newest edition held how CIMA is applying a digital focus to its courses and just how CFOs can gain from it all
CURATING CURRICULUm
35
CIMAINTERVIEW
wwwthecfomecom
can give CFOs something they can take and something they can measure their own management accounting services against They can benchmark using this and they can utilise this to see their progress
Part of that is having professional management accountant in place I donrsquot think the landscape matters I believe that there is a common business need wherever you may be around the globe
All of the emerging markets need these skills The first aspect that accounting schools teach is about auditing skills because theyrsquore interested in protecting investments Then they teach you how to keep your business sustainable and to have a sustainable business you need to have a management accountant in place So itrsquos not just here in the UAE where we see these demands we see the same demands in China Indonesia and other powerhouse economies We see their skills shortages and we see the need for solutions in those areas
Talk to me about how this new syllabus works to promote the evolution of a CFOThis syllabus that wersquove
Can you expound on just what can be found within the new CIMA syllabusWe just revised the syllabus we do that every four to five years What we have done this year is a very significant revision It is based from a complex study that we have carried out to over 3000 people from 200 companies globally It is the very first revision since the joint venture with CIMA and AICPA So this has allowed us to attain a syllabus rich with all the data from all the continents in the world For the first time wersquove had real involvement from companies in the USA in this project
Why is the collaboration between AICPA and CIMA significantMost important is the Chartered Global Management Accountant (CGMA) designation that AICPA and CIMA both issue for qualified management accountants Wersquoll have a common curriculum and common examination which will begin on January 1 which gives us a global designation for management accountants wherever they are around the world There are plenty of accounting bodies who claim to be global but actually this is the only
genuinely global designation This is because it has the only one with a North American participation in it So we can say that the CGMA will be just as well-recognised in the USA as it is in Dubai
With the global landscape in mind how do you create an even objective that applies to localities which may prove widely differentialThe landscapes are different but businesses have common needs wherever they may be What wersquove particularly seen since the global financial crisis is that companies are actively looking to build management accountant capability to build that capacity within their organisations They donrsquot want to have a poor quality of information that lacks insight being used in their businesses So they see management accountants can bring solutions to that As a result of all the work wersquove done with companies who participated in the syllabus wersquove also put together a series of what we call Global Accounting Principles This is a series of principles which describes what good management accounting looks like and what top quality management accounting in a company should be producing This then
ldquoCompanies are actively looking to build man-agement accountant capability to build that capacity within their organisa-tionsrdquo
36 wwwthecfomecom
worked on acknowledges the skill set needed by professionals throughout their career Therersquos a base level of competence that is needed but beyond that there is more There is business acumen the ability to communicate and influence and finally the ability to lead So you start off enhancing your raw technical accounting skills Then you need to place that into the context of the business that you are in Then as you move forward and as you rise to become the CFO yoursquoll need the others You have to learn how to present your work in a way that can influence and make an impact in the business The final piece is the ability to lead projects and other functions and to a great extent lead the board of directors Thatrsquos how the context works itrsquos not just about technical knowledge
How do you find that CFOs in the GCC region are responding to this programmeThe CFO has a real challenge on his hands now In 1975 80 per cent of corporate value is showing on the balance sheet By 2010 that dropped to less than 20 per cent Your traditional PampL reports no longer reflect the value of the business or how the business drives value
All things that should be of interest to investors is missing With things like the integrated report initiative wersquore starting to see the other dimensions that add value to business For CFOs thatrsquos all about strategic thinking and considering the long-term objectives Being articulate in implementing those strategies keeping in mind the risks and opportunities that the business faces We are also nowadays witnessing a whole new world of transparency around that
Are there electronic aspects to CIMArsquos advancing approachThe interactive case study simulates a real working situation and it tests how they can apply their knowledge in real life situations Theyrsquoll be presented with a scenario a few weeks before they take the exam so they can prepare for it They then go to an exam centre where they are asked questions about how they will deal with a certain situation in the real world Theyrsquoll get an email from the CFO giving them a certain task for a particular period of time We want to make it as close to reality as possible so students taking the exam will be assessing situations based on real life scenarios
ldquoThe CFO has a real challenge on his hands now as traditional PampL reports no longer reflect the value of the businessand [the role] must focus on strategic thinking and considering long-term objectivesrdquo
218KCIMA members worldwide
STAT FACTS
CIMA INTERVIEW
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
38
ERPANALyTICS
wwwthecfomecom
Faster more nuanced IT solutions are available to the modern day CFO Whilst Chief Financial Officers are called upon to analyse data across a number of spectrums the digital tools on hand are likewise being expanded to aid in focusing more squarely on the bottom line
ExCELLING WITH ERP
The global landscape is today firmly entrenched within a digital model As a result CFOs whom are called upon to take a larger role in a number of variables must also increase their abilities with respect to utilising the many upsides which tech innovations offer a business When surveyed about their most pressing concerns CFOs generally return a varying collection of responses Revenue growth regulatory changes and meeting quarterly goals are among the chief concerns Virtually every obstacle can be hurdled by way of maintaining the order of financial reporting and data which has long been
synonymous with the Chief Financial Officerrsquos remit A widening berth of ERP solutions is making this data all the easier to come by
Despite how sophisticated the market is today it was not long ago that ERP departments once spent days processing business reports
Said Rohan Tejura Assistant Vice President Focus Softnet ldquoTraditional ERP systems were solely data repositories Moreover these repositories werenrsquot real time and were incredibly dependent upon locational connectivity With the emergence of smarter development platforms more versatile devices and
39
ERPANALyTICS
wwwthecfomecom
more intuitive designs of system development the overall experience of the ERP now extends from data warehousing to reporting analysis trend mapping business intelligence and governance oriented capabilities Yet these solutions amazingly execute all of these deliverables via portable handheld devices and through cloud environmentsrdquo
New generation ERP systems must now be on the go whilst including up to the minute analytics to provide deeper insight into the business ERP Analytics tools use historical data captured from various business functions to provide valuable information for efficiency and business performance each incredibly priceless to a leading CFO
Finesse is an ERP provider which is continually addressing the transformation of output which the ERP industry is offering the equally transitioning role of CFO
ldquoWe provide end-to-end business management solutions to SMEs and Enterprises Our approach to ERP is much more than providing simply an operational management systemrdquo said Finesse COO Sunil Paul
ldquoWe believe that todayrsquos businesses need much more than integrating sales with inventory accounting and manufacturing but also to have seamless integration with all their sales channels including the point of sales ecommerce and inbound sales solutionsrdquo
A major im-petus of the ERP-cen-tered growth is based on how effec-tive com-prehensive real-time data proves to be for the CFO
40 wwwthecfomecom
before thereby creating new global benchmarks for overall economic growth
Microsoft Arabia CFO Sadrul Khan offered insight into just how far the knowledge economy has influenced regional financial leadership by explaining how one of the most prioritised technologies by CFOs in the region is social platform monitoring
ldquoOne of the five technology choices that CFOs tend to prioritise in boosting productivity efficiencies and faster decision making in the fast paced business environment which include a social platform that monitors trends customer sentiments and helps process mashable data for customer centricity and business growthrdquo said Khan
A major impetus of the ERP-centered growth is based on how effective comprehensive real-time data proves to be for the CFO Whether employed as on-premise ERP software-as-a-service or cloud-based solutions a nearly identical ethos is being utilised Allowing the CFO to quickly access the performance of all facets of a business is paying dividends in the boardroom a reality which is showing itself increasingly in the Middle East
The technologically-charged relationship between ERP solutions and the regionrsquos CFOs is expanding and as a result has catalysed what many see as GCC economic performance outstripping that of many economies outside of the region as a result
In order to compete in todayrsquos fiercely competitive environment organisations need to think both innovatively and out of the box They require more insights about their business and their customers and need to ensure that they are able to meet the expectations of their internal as well as external stakeholders Enormous amounts of data both structured and unstructured is continuously being generated within the internal and external systems of the organisation which if analysed can be of immense value both to the business and subsequently the stakeholders associated with the organisation
With the the era of CFOs labouring over spreadsheets now in the past given how many business frontiers have become so dependent on mobile options such as the cloud more and more tech companies are providing the regionrsquos CFOs with information technology that converts traditional internal and external data into rich visual insights This information is then used for faster decision making and provides the ability for a CFO to assess manage and control risks Regional CFOs have grown enabled to drive corporate strategy accordingly demonstrating how the knowledge economy is now in full force amongst the Gulfrsquos corporates
Given that advanced IT has now become a regular CFO tool the regionrsquos CFOs are subsequently making faster decisions and driving internal growth models with greater speed and agility than ever
Tech companies are providing the regionrsquos CFOs with information technology that converts traditional internal and external data into rich visual insights
ERPANALyTICS
Donrsquot discoveritrsquos counterfeittoner afteritrsquos too lateOriginal HP Toner works first time every time1 unlike cheap toners which fail over half of the people who try it2 Non-HP toner can compromise your printerrsquos performance to give you streaked blotchy or faded prints Only original HP Toner cartridges deliver unmatched quality for the most professional-looking prints 100 of the time1
1 A QualityLogic 2010 study commissioned by HP comparing original HP LaserJet Monochrome print cartridges with nine brands of non-HP toner cartridges available in Europe Middle East and Africa for the HP LaserJet P1505 and P4015 printers HP 36A and 64A For details see wwwqualitylogiccomEMEAmonotonertestpdf 2 From a 2012 EMEA Lyra Research study commissioned by HP Results based on a total of 1050 HP Color LaserJet users who have used both original HP and non-HP toner cartridges of whom 552 experienced problems with non-HP cartridges
copy 2014 Hewlett-Packard Development Company LP
42
Private Equity ANALyTICS
wwwthecfomecom
The rise of PE-backed acquisitions is forcing CFOs to develop an entirely new set of skills
THE PRIvATE EQUITy CFO
The CFOrsquos utility in the world of private equity is without question on the rise The once-held belief of the CFO existing solely as the ldquoaccounting guyrdquo has been abandoned Over the last 20 years the role of CFO has become more demanding - requiring not just finance and accounting acumen but also a financial literacy in corporate planning risk management MampA assetliability management and regulation This evolution has been driven by a number of
key factors Yet the private equity industry which is now reshaping the corporate landscape through active ownership is by far the most significant factor driving change within the role of the CFO
PE-backed buyers today represent a larger percentage of overall buyers in the corporate acquisition marketplace than ever before Data provider Prequin estimates that as of June 2014 the capital raised by PE funds that
has not yet been deployed amounts to $114 trillion globally The result of this ldquodry powderrdquo is that a vast quantity of corporate acquisitions in the coming years will be undertaken by the private equity industry As such CFOs will be more accountable to demanding ldquosmart moneyrdquo shareholders than at any point in recent history Budgeting accounting and financial reporting will no longer exist as sole priorities but as a core competency among a
ldquoBy effec-tively using real-time data CFOs can create a dynamic process that proac-tively drives performance account-ability and value crea-tionrdquo
By Aaron Heidari
43
Private Equity ANALyTICS
wwwthecfomecom
robust set of complimentary and required skills Most of all the bar for CFOs is rising as PE investors will only accept above-average performance from their management teams
CFOs were once more reactive in function setting budgets based on other executivesrsquo plans and managing the flow of reporting to shareholders on a quarterly and yearly basis Today CFOs are required to become proactive managers of their respective businesses alongside their C-suite compatriots using a granular data-driven approach to aggregate analyse implement and report on every aspect of a companyrsquos operations
An important tool to drive this value creation process are KPIs Yet KPI structures including both aggregation and output are generally not up to the standards required of private equity investors prior to an investment being made
ldquoThe benefits of using KPIs and monthly reporting packages are significant By effectively using real-time data that is actionable and by partnering with functional area leaders within the organisation company CFOs can create a dynamic process that proactively drives performance accountability and value creationrdquo said Amanda Robinson Vice President of Accordion International in Dubai a consulting firm which is comprised of former private equity and investment banking professionals who
MENA region Cumulative Funds Under Management Since 2008
Source Zawya private Equity Monitor
19 636 20 36321 586
22 64323 506 24 250
-
5000
10000
15000
20000
25000
2008 2009 2010 2011 2012 2013
Cu
mu
lati
ve f
un
ds
($ m
)
$15mAverage MENA PE investment size in lsquo13
50Percentage of investment in IT and energy sectors
STAT FACTS
44 wwwthecfomecom
work with companies to deliver cost-effective project execution services
Active shareholders whose money it is being spent will typically require a data-driven justification before approving any budgets capital expenditures or new acquisitions Furthermore in many private equity backed companies the use of debt and the matching of shorter-term bank financing with longer-term investments will only be considered after a robust analysis is conducted to understand the companyrsquos ability to service that debt in the future This evaluation is not simply to identify revenues expenses and profits Itrsquos about drilling down into every transaction and rooting out data processing and reporting At least that is the expectation
The most valuable CFOs are those who have the ability not just to scrutinise and understand the financials but all also possess a wider grasp of the underlying data which truly comprise the business As an investor who has just acquired a stake in a new business I want a CFO who can manage the transition and stay ahead of my expectations Most of all a CFO should impress upon the companyrsquos shareholders a new way of doing business The first 100 days of an acquisition are said to be the most important During this period the CFOrsquos worth will be established when the new financial plan is due and the platform for the next five years of growth is presented
A CFO should man-age the tran-sition stay ahead of expectations and impress upon the companyrsquos shareholders a new way of doing business
Investment Volume By Sector Since 2006
Investment Volume By Sector in 2013
Source Zawya private Equity Monitor
1
3
30
17
3
28
3
4
6
4
6
5
17
9
9
6
9
5
8
6
6
2
3
10
Education
Education
Information Technology
Information Technology
Other
Other
Telecoms
Telecoms
Media
Media
Transport
Transport
Oil amp Gas
Oil amp Gas
Healthcare
Healthcare
Consumer goods
Consumer goods
Food amp Beverages
Food amp Beverages
Leisure
Leisure
Manufacturing
Manufacturing
ANALyTICS
Private Equity
2000857 NBAD ratibi mag ad 200x268 Finalindd 1 92514 1017 AM
46 wwwthecfomecom
THE FUTURE OFACCOUNTING EDUCATIONAddRESSINg THECOMpETENCY CRISIS
Have you ever stopped to think about how the accounting profession has changed since you graduated from college Recent graduates can answer this question by reflecting on the last two or three years whereas for other more seasoned professionals answering this question requires a bit more thought and memory searching Indeed we can all think of ways that the field of accounting is remarkably different today from the one we likely envisioned during our college daysmdashregardless of which decade we each donned our cap and gown This gradual transformation of the accounting profession leads to two important questions related to competencies bull Which competencies are important for success inaccounting todaybull Were these competencies consciously developed as partof your accounting degree programme
We suspect that more than a few of you would answer ldquonordquo to the second question Put another way our profession may be facingmdashmore so than at any time in the pastmdasha ldquocompetency crisisrdquo that is a gap between the competencies needed for professional success and those taught in our college classrooms today We propose a three-pronged strategy or ldquogame planrdquo for overcoming this competency crisis and in turn better preparing accounting graduates for the challenging world they will face First all of us accountants need to understand the changes that have already taken place in our profession and perhaps more importantly anticipate the changes that are on the horizon Second we need to educate ourselves and future generations of accountants so that as a collective group we can deliver the expanding set of competencies demanded in todayrsquos dynamic organisational
contexts Third as professional organisations and as individuals we need to think beyond ourselves by asking How can I (or we) help the accounting profession address the competency crisis
A Shift Toward Integrated ThinkingMany articles and white papers have been written that describe in detail the changes that have occurred in our profession over the last few decades but for our purposes wersquod like to distill these changes down to one crucial idea How does the accounting function add value to an organisation Accountants have evolved from support-oriented personnel who hand off information to others who actually make decisions into business partners who ldquohave a seat at the tablerdquo with managers
By peter C Brewer James E Sorensen CpA CgMA and david E Stout
47wwwthecfomecom
1048576bull What regulatory risks mayaccompany the proposal
1048576bull What social and environmentalfactors will we face if for example the proposal requires investing in overseas operations
1048576bull What types of employeeresistance may arise if we implement the proposal and how will we overcome the root causes of any such resistance
1048576bull Can and how should we valuefuture options associated with the proposal such as expanding or contracting the investment over time as new information becomes available
1048576bull Should we use debt or equity tofund the proposal
In short accountants have evolved to become integrated thinkers who enable EPM by partnering with managers across the organisation to add value Yet as EPM has gradually become the centrepiece of our professionrsquos value proposition accounting education hasnrsquot done enough to embrace it To overcome this gap wersquod like to further suggest that the concepts of competency integration and EPM need to come ldquofront and centrerdquo as we move forward in educating the next generation of successful accounting practitioners
Accounting Education No Longer on the SidelinesRecently a task force consisting of members of IMAreg (Institute of Management Accountants) and members of the Management Accounting Section (MAS) of the American Accounting Association (AAA) addressed the competency issue How should accounting education change fundamentally to help close the competencies gap The efforts of the task force led to
cash flows and how to apply discounted cash flow (DCF) decision models such as net present value (NPV) is of foundationalmdashsome might say critical mdash importance But integrated thinkers draw on an understanding of organisational strategy coupled with a broader set of competencies (beyond what might be considered technical or foundational knowledge) when making these types of decisions For example they consider how behavioural issues may influence the capital investment decision-making process Perhaps the financial estimates contained in the NPV analysis are too optimistic because the manager who prepared the numbers has a vested interest in seeing the project approved Decision makers also need to consider issues such as leasing vs buying a capital asset and the corresponding impacts on the financial statements and ratios that are tracked by investors and lenders What nonfinancial factors are associated with the proposed investment Add in the tax consequences of capital investment decisions coupled with the need to maintain internal control over any new business processes tied to these decisions and the need to think in an integrated fashion across a variety of accounting competencies becomes apparent
Furthermore becoming a true business partner with managers across the organisation requires more than simply integrating various accounting competencies It also means thinking like a business manager or a chief executive officer (CEO) Returning to the capital budgeting example an integrated thinker will ask questions such as
across the organisation Together they formulate and plan strategies then participate in collaborative decision-making processes that execute those strategies in a manner that adds stakeholder value Said another way accountants have evolved to become enterprise performance managers This shift in our orientation from a support function to an enterprise performance management (EPM) role has enormous implications for defining the determinants of success within our profession the most important of which involves becoming collaborators and ldquointegrated thinkersrdquo Take for example a common but important business decision process capital investment analysis Certainly technical knowledge regarding how to estimate relevant after-tax
48 wwwthecfomecom
expanding capital budgeting discussions to include financial statement impacts tax consequences and internal control issues integrates topical coverage across the External Reporting and Analysis Taxation Compliance and Planning and Assurance and Internal Control competencies shown in Figure 1
Third accounting curricula can incorporate a broader set of management competencies For example evaluating capital investment proposals from the perspectives of change management (Leadership) social and environmental issues (Ethics and Social Responsibility) regulatory concerns (Governance Risk and Compliance) and capital structure (Additional Core Business Competencies) brings a CEOrsquos perspective to the decision-making process
Fourth accounting curricula should include foundational competencies such as proficiency with spreadsheets and written and oral communication In the context of capital budgeting this may include asking students to use Microsoft Excel to perform a sensitivity analysis and then to present their findings to the entire class
Working to Fix the ProblemAt this point although you may agree with us that therersquos a competency crisis within the accounting profession you may be wondering What does this have to do with me What can my organisation do to help address this so-called competency crisis The answer a lot Practice partners and academic partners can help the accounting profession overcome the competency crisis That said letrsquos take a closer look at the role of practice partners first
improvement) and accounting competencies (external reporting and analysis planning analysis and control taxation compliance and planning information systems assurance and internal control and professional values ethics and attitudes) Of critical importance to the framework is the assumption that the set of competencies contained in Figure 1 would be developed and integrated over time through a blend of formal education (including continuing education) training and job experience
What levels of integrationmdashon the road to developing integrated thinkers in accountingmdashare possible First accounting educators can integrate within a single accounting competency So referring back to our capital budgeting discussion teaching computational models such as NPV analysis coupled with a review of various behavioural issues associated with capital investment decisions would be an example of integrating within the Planning Analysis and Control competency listed in Figure 1
Second professors can integrate across accounting competencies For example
a recently published article that contains a proposed framework for accounting education reproduced here as Figure 1 The framework is general in the sense that itrsquos meant to apply to all accounting students not subgroups based on career specialisation such as tax assurance services corporate finance and the like Itrsquos based on the idea that accounting educators can better prepare students to deliver our professionrsquos EPM value proposition through integrated competency-oriented curricula (For more see ldquoFocusing Accounting Curricula on Studentsrsquo Long-Run Careers Recommendations for an Integrated Competency-Based Framework for Accounting Educationrdquo in the May 2014 edition of Issues in Accounting Education)
A glance at Figure 1 reveals three levels of competencies foundational competencies (communication ability to leverage technology and analytical thinking and problem solving among others) broad management competencies (including leadership ethics and social responsibility and process management and
Proposed Competencies-based Framework for Accounting Education
FOUNDATIONALCOMPETENCIES
ACCOUNTING COMPETENCIES
BROAD MANAGEMENT COMPETENCIES
leadership
ExternalReportingamp Analysis
PlanningAnalysis
amp Control
TaxationComplianceamp Planning
InformationSystems
Assuranceamp InternalControl
ProfessionalValues Ethics
amp Attitudes
Communication
Quantitative
Interpersonal
Technological
Analytical Thinking ampProblem Solving
Ethics amp SocialResponsibility
ProcessManagement ampImprovement
GovernanceRisk amp
Compliance
AdditionalCore BusinessCompetencies
Although you may agree with us that therersquos a competency crisis within the account-ing profes-sion you may bewondering What does this haveto do with me
A practice partner should be or become a CMAreg (Certified Management Accountant) maintain professional certification by completing required Continuing Professional Education (CPE) hours and regularly read the IMA publications Strategic Finance and Management Accounting Quarterly
In addition there are a number of excellent resources that deal with topics covered in this article and that IMA makes available to its members
Strategic Finance PowerPacks(wwwimanetorg SFPowerPacks) These are resources focused on contemporary topics similar to those discussed earlier Current offerings include Risk Management Strategic Planning IT Skills amp Software and Internal Controls Each PowerPack includes a combination of resources such as research studies articles and links to webinars
Statements on Management Accounting (SMAs)(wwwimanetorgresources and_publicationsresearch_ studies_resourcesstatements on_management_accounting aspx) SMAs represent monographs classified into one of the following six categories Leadership Strategies and Ethics Technology Enablement Strategic Cost Management Business Performance Management Finance Governance Risk and Compliance and the Practice of Management Accounting Multiple items are available within each category For example the Practice of Management Accounting category includes (among other items)
49wwwthecfomecom
the Definition of Management Accounting and Implementing Shared Service Centres
Research Studies (wwwimanetorgresources_and_publicationsResearch_Studies_and_ResourcesAll_reportsaspx) The ldquoThoughtLeadershiprdquo section of IMArsquos website includes research covering a broad range of issues classified into seven categories For example under the ldquoGlobal Business Environmentrdquo category the following two research reports are available ldquoKey Differences Between IFRS and US GAAP Impact on Financial Reportingrdquo and ldquoCosting Methodologies and Cost Management Practices in the Peoplersquos Republic of Chinardquo
IMA Leadership Academy (www imanetorgprograms_events leadership_academyaspx) As described on the IMA website this programme is designed to assess a memberrsquos leadership status enhance that individualrsquos skills (principally through monthly webinars) and recognise leadership achievements These benefits are free to members
How You Can Make a Bigger Impact In addition to attending local regional and national IMA meetings consider inviting a small group of students to each chapter meeting This could be a wonderful (and relatively low-cost) option for mentoring aspiring accountants and finance professionals providing networking opportunities and introducing students to cutting-edge issues regarding the practice of management accounting Joining a university accounting
advisory group may be another way to influence the development of EPM in that institutionrsquos curriculum design
Other methods to enhance EPM in your organisation include (1) forming user groups within your company your local IMA chapter or your industry to review and share EPM experiences (2) encouraging advancement in the firm to be linked to EPM proficiency (3) focusing your companyrsquos recruiting efforts on candidates who display a background in andor understanding of EPM and (4) organising cross training within your company to enhance a mutual understanding of each otherrsquos respective roles
Finally visit the Competency CrisisTM website (http competencycrisisorg) set up by IMA to unite the accounting and finance constituencies professionals students employers academics and professorsmdashand explore competency issues through the lens of each stakeholder group The site is designed to ldquoencourage a discourse spur action and create a community dedicated to resolving the serious crisis of competency present in the professionrdquo Special sections of the website are devoted to educators students and employers professionals
Our Partners in Education Much like a practice partner an academic partner should be or become a CMA maintain professional accreditation by completing CPE hours and regularly read IMArsquos publications
Academic members of IMA can pursue and actively promote the CMA programme at their respective institutions
50 wwwthecfomecom
IMArsquos website contains helpful resources including an exam content overview content specification outlines for each of the two parts of the CMA exam and learning outcome statements The current exam covers some of the professional competencies represented in Figure 1 A summary of changes to exam content which will be effective in January 2015 is provided on the IMA website in News amp Media Relations which is located under ldquoAbout IMArdquo (See the press release dated March 24 2014) Other helpful resources include ldquoICMA Announces CMA Exam Content Changesrdquo in the April 2014 issue of Strategic Finance as well as ldquoManagement Accounting Career Readiness Shaping YOUR Curriculumrdquo
These forthcoming changes are based on the most recent IMA study of the knowledge and skills needed by management accountants from the view of CFOs controllers and other accountingfinance professionals from around the world
Also consider taking a group of your students to the IMA Student Leadership Conference held each November The Conference provides excellent networking opportunities for you your students and practicing professionals Students can learn firsthand from Conference presenters the challenges and opportunities facing finance and accounting professionals today
Moreover if your institution doesnrsquot currently have an IMA Student Chapter consider forming one One of the authors of this article David Stout reinstituted the student chapter at his school (Youngstown State University) after travelling with a group of his students to the IMA
Student Leadership Conference in Cleveland Ohio Through an IMA Student Chapter on campus students are able to work closely with a sponsoring local IMA chapter and bring to campus speakers who are experts in a wide range of topics including those discussed earlier in this article Each year student chapters compete for an Award of Excellence (AOE) and recognition as an Outstanding Student Chapter In addition IMA student members are able to engage in networking activities leadership training mentoring and community service programmesmdashall through their local chapter
You also might consider volunteering to serve as a Campus Advocate In this role yoursquoll represent IMA in all major matters of interest to your students (scholarship opportunities starting a student chapter mentoring and the like) and to your institution (for example leveraging IMA resources to advance the relevancy of the accounting curriculum use of educational case studies published in the IMA Educational Case Journal and access to IMArsquos ethics curriculum)
And if you havenrsquot yet done this ask IMA to endorse your accounting programme (information is available at www imanetorgeducator_resources indexaspx) This programme is designed to identify business curricula that meet the quality educational standards required to prepare students to earn the CMA designation Endorsement is based on an analysis of the curriculum and topics covered on the two-part CMA exam Currently 12 programmes have been endorsed
Finally if your school has an IMA Student Chapter consider participating in the annual IMA Student Case Competition where students are asked to propose a solution to a real world problem (Cases are solicited each year by Raef Lawson IMA VP of Research and Policy and IMA Professor in-Residence) Finalists make their presentations at IMArsquos Annual Conference amp Exposition before a set of judges consisting of accounting faculty members and practitioners Each year a new case is published in the August issue of Strategic Finance for students to use for that yearrsquos competition
Working TogetherIn this article we have summarised the changes that have affected the accounting profession and provided a competencies-based framework for guiding accounting educators in responding productively to those changes As a management accountant you know that implementing change in any organisation let alone within an entire profession never comes easily To be successful in overcoming our professionrsquos competency crisis IMArsquos practice and academic partners will need to assume leadership roles in defining enterprise performance management as the cornerstone of the accounting professionrsquos value proposition
This article was orginally published in the August 2014 issue of Strategic Finance It appears here with the permission of The Association of Accountants and financial professionals in Business
We need to educate ourselvesand future generations of account-ants so that as a collec-tive group we can deliver theexpanding set of com-petenciesdemanded in todayrsquos dynamicorgani-sational contexts
THE POWERFUL AND THRIFTY OFFICE ALL-ROUNDERS
The new ECOSYS M3560idn series will astound you With their print speeds of up to 60 pages per minute they are among the most productive A4 bw multifunctionals on the market We nevertheless managed to keep their ecological footprint and total cost of ownership impressively low by using our well-known ECOSYS technology and equipping the devices with our renowned long-life components The result Not only less waste and lower maintenance costs but also less hassle for you and all your colleagues You will also greatly appreciate the many customisation possibilities of the devices equipped with KYOCERArsquos open solution platform HyPAStrade as it allows you to tailor the device to your needs So yes we are proud of our new range of MFPs and can hardly wait to share their numerous benefits with you
For more information please contactKYOCERA Document Solutions Middle East | PB Box 500817 DubaiUAE | Tel +9714 4330 412 | Fax +9714 4231 944KYOCERA Document Solutions Europe BV - wwwkyoceradocumentsolutionseuKYOCERA Document Solutions Inc - wwwkyoceradocumentsolutionscom
52
ACCAINTERVIEW
wwwthecfomecom
GLOBAL By ASSOCIATION
across the region from our key employers and learning provider partners to our active and growing student and member base I want to understand their challenges and priorities and how ACCA can work with them to help support the economic success of the region
What can a CFO gain from working with ACCAThe ACCA qualification is about complete finance professionals For CFOs it brings the technical knowledge vital to business success complemented with the strategic management skills and ethical competence crucial to an organisationrsquos success As an organization ACCA in the UAE brings CFOs access to that local and global network of peers and expertise along with our leading research and insights that help them to keep up to date on the issues that matter most
Are there any initiatives in place to leverage the recently announced partnership with AAA
How are the ACCArsquos many years of activity being applied to the Middle EastACCA has now had a presence in the UAE for well over a decade During that time we have established strong relationships across the Middle East epitomised by the recent signing of our Strategic Partnership with AAA As a national body in choosing to partner with ACCA they recognised the local and global perspective we bring We are continuing to work with students members and employers across the Middle East to build their networks knowledge and business success through events research and insights and access to a growing number of online resources
Which initial priorities are among your key aims upon joining the organisationrsquos efforts in the UAEIn the first few months I hope to build on the success of the team in the UAE My priority will be to meet as many of our key stakeholders
The Association for Chartered Certified Accountants (ACCA) provides its services across a number of international borders The recent announcement of Lindsay Degouve de Nuncques as the new head of the Associationrsquos UAE chapter further exemplifies the ACCArsquos reach based on her previous work in the UK Nuncques shares here what she brings to the Middle East and just how globalisation has driven her ascent
53
ACCAINTERVIEW
wwwthecfomecom
The strategic partnership with AAA is the first of its kind in the region Students who complete the UAECA qualification will be entitled to both the AAA and ACCA designations and ACCA members in the UAE will also be eligible to apply for AAA membership This is a very exciting development in the market and together AAA and ACCA will be working to deliver maximum value to all our stakeholders from this partnership As we launch the UAECA qualification this activity will start in earnest
Which key industries will you be spotlighting in the Middle East in the months aheadOur experience of working across all sectors and levels of organisations globally gives ACCA a unique insight into all types of industries We will continue to be working with employers across the spectrum in the months ahead to help them gain the insight and make the connections that drive businesses to succeed at whatever they do
ldquoThe ACCA qualification is about complete finance professionals For CFOs it brings the technical knowledge vital to business success complemented with the strategic management skillsrdquo
54
Islamic FinanceMARKET OUTLOOK
wwwthecfomecom
In its 10th instalment the Forum is hosted in Dubai as a direct result of the UAErsquos increasing importance in the world of global Islamic finance
THE WORLD ISLAmIC ECONOmIC FORUm LANDS IN DUBAI
In Dubairsquos continued quest for leading the world across a range of spectrums the Emirate accelerated its desire to become the worldrsquos leading hub for Islamic finance by hosting the 10th installment of the World Islamic Economic Forum (WIEF) Delegates from dozens of countries attended to take part in a three-day event held at Madinat Jumeirah which rests alongside Dubairsquos gleaming coastline Held under the patronage of His Highness Sheikh Mohammed Bin Rashid Al Maktoum the
Vice President and Prime Minister of the UAE and Ruler of Dubai key speakers included The Honorary Dr Zeti Akhtar Aziz Governor of the Central Bank of Malaysia HE Kairat Kelimbetov Governor of the National Bank of Kazakhstan The Honorary Datorsquo Sri Mohd Najib Tun Abdul Razal Prime Minister of Malaysia and HE Xavier Bettel Prime Minister of the Grand Duchy of Luxembourg
Launched in 2006 in Malaysia WIEF has grown in tandem with the increased
Delegates from dozens of countries attended WIEF to take part in the three-day event
sophistication and reach of Islamic finance After a successful event in London in 2013 amidst increased interest in Islamic finance across Europe WIEF relocated to Dubai where the local business structure is keen to host halal finance
Said Hamad Buamim President and CEO Dubai Chamber of Commerce and Industry co-organisers of the event ldquo[The forum] is the start of a new chapter of cooperation between Dubai and the world as part of
55
Islamic FinanceMARKET OUTLOOK
wwwthecfomecom
Dubai Capital of Islamic Economy visionhellipestablishing a unified regulatory authority to provide the framework for standards across halal industries will significantly accelerate growth Likewise we need to see increased cooperation and partnership between the public and private sectors This is already happening with great success here in Dubairdquo
The order of global cooperation needed to facilitate growth across the Islamic finance world was more than apparent at WIEF based on how many differing nations were represented at the event The exhibitorrsquos hall was populated with a number of key Malaysian stands representative of the Southeast Asianrsquos ranking as the global leader in Islamic finance Also present were companies from Saudi Arabia also a key locality in the worldrsquos halal industries An interesting yet prescient presence was of attendees from South Korea a nation which is eager to participate in Islamic finance and will be hosting the WIEF Pyeongchang Roundtable in December 2014
ldquoGangwon is a province located in Korea which is very interested in new business opportunities Wersquove realised the strength of the Islamic economy and have come here with many different companies The first type is based in real estate investment We also have companies which want to export their products to the Islamic economy based on their halal qualities And Gangwon will also be hosting the Winter
ldquoKorea is very interested in the strength of the Islamic economy and wants to export its products based on their halal qualitiesrdquo
56 wwwthecfomecom
$247trillionProjected value of halal products industry in lsquo18
125Muslim percentage of global tourism expenditure
STAT FACTSOlympics in 2018 and are presently seeking investments for this as wellrdquo said Seong-hun Kim a member of Gangwon Province Governmentrsquos Export Support Team
Dubai proved to be an excellent place for the event considering how well the UAE is able to so regularly corral international cooperation A key sign of this was witnessed recently when Luxembourg now considered the third most important base for Islamic finance globally opened a finance office in Dubai International Finance Centre The European nation also opened a euro200 sukuk earlier this year which was quickly oversubscribed
The prime minister of Luxembourg offered the WIEF audience a riveting speech which detailed just how international the Forum has become whilst encouraging more of the world to support the growing influence of Islamic finance
Said Bettel ldquoWe need to innovate more economic partnerships for growth We sometimes need to reengineer relationships but also have to make sure these relationships remain sustainable Growth in one country also brings growth to others as long as this is guided by free market initiatives Free trade and free flow of capital combined with innovation leads to prosperity We have all gathered here in Dubai to explore the future of Islamic finance and Luxembourg is also a pioneer of Islamic finance in Europe The Islamic financial sector has a major role to play in continued global growthrdquo
The Islamic Corporation for the Development of the Private Sector (ICD) is based in the Kingdom of Saudi Arabia where it manages an international fund worth $2 billion half of which is available for subscription With shareholders in more than 50 countries and a sovereign sukuk fund recently launched in West Africa the ICDrsquos CEO Khaled M Al Aboodi attended WIEF this year excited to participate in the global event
How does the ICD approach its attendance at the World Islamic Economic ForumI think the Forum is one of the best places for discussing the financial issues of the OEC member countries It has been around for ten years and has grown to become a very important platform for discussion Wersquore here to attend and listen but also to network Itrsquos a great networking platform and a place to share views whilst letting everyone know what we have to offer
How has Islamic finance changed over the yearsOf course itrsquos growing in a large scale Some of it actually needs more support particularly with respect to regulatory frameworks Wersquore trying to partner with many international organisations like the IMF to try to provide support to countries to adapt regulation for Islamic finance Sukuk issuance is one of the biggest issues that needs to be addressed because there is a huge amount of liquidity in this arena Due to issues related to regulation sukuk issuance can be costly But with the regulation we are confident it will be on a level playing field with other forms of finance Compliance is a major area where more work can be done The Forum started with a roundtable on sukuk which shows how helpful WIEF has been over the years
What type of work does ICD do internationallyICD helped the government of Senegal to issue the first sovereign sukuk This was successfully issued last summer Progressing in this manner is something wersquod like to see continue across West Africa in order to utilise its resources with aiding development in the region in mind
QampA WITH KHALED M AL ABOODI CEO OF ICD
Islamic FinanceMARKET OUTLOOK
OFFICIAL SPONSORS
ENDORSED BY OFFICIAL HOST OFFICIAL
COMMUNICATIONS PARTNER
MEYDAN HOTEL DUBAI UAE19 - 20 NOVEMBER 2014
WOMENOMICSthe next emerging market
TAKE PART in making change happen UNITE with business and through leaders from across the globe
PARTICIPATE to the expansion of a modern and inclusive economy
58
Gautam PradhanINTERVIEW
wwwthecfomecom
SUCCESS BEyOND BOUNDARIES
in other management roles such as strategic decision making mentoring and leading efficiency and productivity across a range of other departments and functions as well as a being a catalyst in ensuring that the boardrsquos vision for the organisation is achieved
A significant percentage of NMDCrsquos shares are owned publicly Does the CFO play a role in balancing the interests of the shareholdersAs a CFO balancing the shareholdersrsquo interests is definitely part of my responsibility In order to achieve this goal there needs to be a careful evaluation of each decision while keeping the short-term and long-term goals of the company in mind At NMDC we actively implement a system where we utilise a balance scorecard as a method of ensuring that all our primary objectives are met yet at the same time continuously enhance our relationships with our shareholders
NMDC has completed various projects across the Emirates Are there plans to move abroadAs NMDC moves towards becoming an international player our strategic expansion plans are focused in areas within the GCC region and India In line with this strategy we opened
How has a company with such a unique set of deliverables grown so consistently over the yearsOur organisation strongly believes that the core to our strength is the people process and equipment A strategic decision led by our Board of Directors and the senior management has been implemented that required us to consistently invest in these three aspects to help expand our business beyond the territorial boundaries of the UAE and at the same time enhance what we can offer which is relevant to these segments We attribute our success to the efforts which every employee contributes We also strongly believe in the ldquoWe can make it happenrdquo principle The management raises the index of performance while setting SMART objectives within the organisation and encouraging the employees to achieve them
How has your position as the CFO changed over NMDCrsquos 35 years of operationAs the market evolves and business dynamics change my role as the CFO has become complex and more challenging A few years back I was mainly focused on bookkeeping accounting and other financial responsibilities such as arranging bank facilities But moving forward I became more involved
The UAE is progressively becoming a hub for world-class infrastructure The country has duly impressed the rest of the globe with noteworthy land developments showcased across the emirates Among the remarkable landscapes found in Abu Dhabi are the Corniche Beach Yas Island and Sir Baniyas Island Behind these successful projects is NMDC the dredging division of Abu Dhabi National Oil Company (ADNOC)
In an interview with CFO Magazine Gautam Pradhan Chief Financial Officer NMDC shares an exclusive look into the companyrsquos international blueprint for growth and his dynamic role as a strategic leader of one of the best in dredging and marine construction in the Middle East
59
Gautam PradhanINTERVIEW
wwwthecfomecom
branches in Qatar Bahrain Oman and India This has paid rich dividends recently as projects of strategic importance are bagged in Qatar and Bahrain Furthermore NMDC (UAE) has recently played a key role as a leader of an international consortium with Royal Boskalis Westminister (Netherlands) and Jan De Nul Group (Belgium) for the awarding of the Suez Canal Dredging project in Egypt Moving forward we have devised a strategic approach that will enable us to play a key role in the development of Indiarsquos marine infrastructure
What are the global strategies that are part of the CFOrsquos responsibilitiesAs CFO understanding the macro economic scenario risk analysis and mitigating those risks are all a part of my responsibilities I also have to have a proper comprehension
ldquoA few years back I was mainly focused on financial responsibilities moving forward I became more involved in strategic decision making mentoring and leading productivityrdquo
Gautam PradhanINTERVIEW
60 wwwthecfomecom
of the challenges faced by the company in terms of dealing with foreign contracts direct and indirect taxes and hedging and managing the integration process These are essential to enhance shareholders wealth and mitigate undue risk
How significant is accountancy for NMDC in its operations Why exactlyAccountancy is the lifeline of any company it does not only record the finances it also reflects the health of the organisation The MIS reports analysis trends and statistical information go a long way toward effectively providing
the diagnostic approach essential for the company
How have NMDCrsquos environmental activities helped the companyrsquos bottom lineNMDCrsquos work is well-synchronised with our environmental activities and specifically with nature Our activities are closely linked to sand and water and we view such activities with strategic importance Projects such as increasing water supply to mangroves and beach nourishment help us support the environmental activities while adding to our bottom line
ldquoAccountancy is the lifeline of any company it does not only record the finances it also reflects the health of the organisationrdquo
A burgeoning slice of Abu Dhabi coastline
The largest business awards
in the GCC30th November Dubai
nominate now at wwwstarsofbusinessawardscom
Stars of Business has become an iconic awards brand like no other in the region It recognizes the very best SMEs across 26 business categories Itrsquos universally respected as scientifically assessed and unimpeachably judged
327000 SMEs across the UAE$234 billion estimated total revenue of the SME sector4974 Awards entries in 20131856 Individual company applicants
Presenting Partner Strategic SME Partner Gold Sponsor Gold Sponsor VIP Hospitality Partner Supporting Partner
Trade Facilitator PartnerTrade Credit PartnerLogistics Partner
Institutional Partner Institutional Partner Event Partner
OrganiserPublisherMedia Partner Media PartnerPort Authority Partner
62
David Allen INTERVIEW
wwwthecfomecom
What went into completing your bestseller ndash Getting Things Done (GTD)After twenty years of researching developing and implementing a methodology for achieving stress-free productivity based upon
thousands of hours spent desk-side with
some of the best brightest and busiest people in the world I decided to write the manual for it Thatrsquos what Getting Things Done is
What are the five phases of mastering workflowIn order to get
any situation under control so
you can focus you will utilise these five
steps Whether yoursquore managing your kitchen
or your company you will need to collect and capture what has your attention clarify what if anything to do about it organise it according to what it means to you review and reflect upon it in relation to
Todayrsquos evolving CFO is often caught between the world of business set-up generating revenue managing employees and building strong company infrastructure When can things actually get done What can one do to boost productivity and master workflow World-renowned business coach David Allen has the answers
PRODUCTIvITy PRINCIPLES WITH
DAvID ALLEN
63
David Allen INTERVIEW
wwwthecfomecom
those are greatly subvertedHow does one maintain a fair balance between the time spent planning and actually getting things doneYou simply need to spend just the amount of time you need to to trust that what you are getting done is the right thing to be getting done in the moment It takes as long as it takes to get to that point Why would you do anything less
How can one apply your core productivity and workflow principles to todayrsquos technologically driven environmentThe principles and their techniques are system-independent Whether you have meaningful input from the Internet your smartphone or a conversation in the hall you must engage with it equally Technology has simply increased the flow of input and ease of distraction in your world
There is a lot of talk about how connected wersquove become and how connectivity is driving tremendous business growth Does connectivity actually come with its fair share of downsides
Connectivity is obviously a two-edged sword We can have intimate productive and creative interaction instantly with someone on the other side of the world and we can just as easily be distracted and seduced into those engagements when they may not be the best use of our attention and resources Donrsquot shoot the medium Itrsquos all simply bringing attention to your clarity of direction and priorities or lack thereof
Could you share a few quick tips with our readers to instantly boost productivityWrite everything down that has your attention Decide the very next actions required to get closure on all of them Any next actions that require less than two minutes do instantly Park reminders of everything else somewhere that yoursquoll see when you can do something about them
We are currently facing a massive information overload What are some basic principles you could suggest to mentally organise such large amounts of dataConstantly ask yourself Where am I going Whatrsquos important and rewarding to me Is this information
the whole and then engage your resources with intuitive trust
As a CFO how can you transfer efficient workflow management skills to your employees Itrsquos very difficult to legislate processes for individuals ndash you can really only hold them accountable for their results But if you are managing your own commitments and intersections with them with integrity and rigour it will automatically force your team to ldquostep up to the platerdquo in their own behaviours in order to meet your standards If you request their complete list of their company projects and they canrsquot produce it thatrsquos a sign theyrsquore not in control If they make a commitment to you that they havenrsquot kept thatrsquos data about their performance GTD is simply about good operational business practices
With so many planning and organising activities in your methodology is there a risk of losing spontaneity as a strategistThe reason for these best practices is to optimise freedom creativity and spontaneity Without them
ldquoBut if you are manag-ing your own com-mitments and intersec-tions with them with integrity and rigour it will automatical-ly force them to ldquostep up to the platerdquo in their own behaviours in order to meet your standardsrdquo
64 wwwthecfomecom
supporting that Park whatever you find potentially meaningful somewhere that is easy to access when needed
Being an entrepreneur is a non-stop job How do you ensure that you have an adequate work-life balance Pay attention to what has your attentionmdashwith regard to anything Your health relationships career finances etc Notice when something might be ldquooffrdquo and make good decisions about what you need to do to get it back ldquoonrdquo again
Does your work teach people to be efficient or effective In essence they are the same thing Effective choices are generated by efficiency on a higher level If you want to implement strategy most effectively it demands utilising your resources optimally which is efficiency
Does motivation actually improve quality of work or purely quantityDepends on the focus of the motivation You can be motivated to work harder and you can be motivated to work smarter
What is your favourite productivity mantra that
you implement in your day-to-day lifeUsing my own in-basket and note-taking devices to capture potentially meaningful and valuable ideas and soon afterwards clearing all of them out by deciding what to do about them if anything
Your books seminars and other work inspires many individuals and businesses Who is your personal inspiration or role model I have many about many different aspects of my life The only person though that I ultimately trust as my best guide is my higher self which I try to access as frequently and clearly as I can
Finally what advice would you give to current business owners and aspiring entrepreneurs looking to gain complete control of their life and businessCapture what has your attention clarify what you need to do about it to get it off your mind organise the inventory of all your commitments at all levels review and reflect on all of that regularly relax and trust your inner wisdom to engage with the most appropriate thing in the moment
ldquoIf you want to implement strategy most effectively it demands utilising your resources optimallyrdquo
David Allen INTERVIEW
APPSTECH TALK
wwwthecfomecom 65
mAxImISE BUSINESS lsquoON-THE-GOrsquo WITH THESE HANDy APPS
ipAd SpECIAL
SAMSUNG UNvEILS GALAxY NOTE EDGE
Network
AP
Display
OS
Camera
Video
Audio
Additional Features
GoogleMobile Services
Connectivity
Sensor
Memory
Dimension
Battery
The availability of service may differ by country All functionality features specifications and other product information provided in this document including but not limited to the benefits design pricing components performance availability and capabilities of the product are subject to change without notice or obligation
Samsung Galaxy Note Edge Product Specifications
25G (GSM GPRS EDGE) 850 900 1800 1900 MHz3G (HSPA + 42Mbps) 850 900 1900 2100 MHz4G (LTE Cat 4 15050Mbps) or 4G(LTE Cat 6 30050Mbps)May differ by country and carrier
27 GHz Quad-Core Processor
56 inch (1419mm) Quad HD+ Super AMOLED (2560 x 1440 + 160)
Android 44 (KitKat)
Rear Facing 16 Mega pixel Auto Focus camera with Smart OISFront Facing 37 Mega pixel camera with f19Rear Facing Camera HDR (Rich tone) Selective Focus Rear-cam Selfie Beauty face Virtual Tour Shot ShotampMore Dual CameraFront Facing Camera Selfie Wide Selfie
Codec H264 MPEG-4 H263 VC-1 WMV7 WMV8 Sorenson Spark MP43 VP8 Recording amp Playback up to UHD
Codec MP3 AACAAC+eAAC+ WMA AMR-NBWB Vorbis FLAC()() Ultra High Quality Audio (~192KHz 24 bit) support
Multi WindowUltra Power Saving ModeVoice Recorder (Normal Mode Interview Mode Meeting Mode Voice Memo)Download BoosterS Health 35Dynamic Lock ScreenBriefingEdge screen UX Revolving Interaction Immersive apps(Camera Video S Note)Ticker board Express me Quick Tools Night Clock etc
Chrome Drive Photos Gmail Google Google+ Google Settings Hangouts Maps Play Books Play Games Play Newsstand Play Movie amp TV Play Music Play Store Voice Search YouTube
WiFi 80211 abgnac (HT80) MIMO PCIeGPS GLONASS BeidouNFC Bluetoothreg v 41 (BLE ANT+)IR LED (Remote Control) USB20 MHL 30
Gesture Accelerometer Geo-magnetic Gyroscope RGB IR-LEDProximity Barometer Hall Sensor Finger Scanner UV Heart Rate Monitoring SpO2 (Dependent on market)
32 64 GB Internal memory + microSD slot (up to 128GB)3GB RAM
1513 x 824 x 83mm 174g
Standard battery Li-ion 3000 mAh Fast Charging (Adaptive Fast Charging amp QC20)
wwwthecfomecom66
APPSTECH TALK
AIR DISPLAY
SQUARE REGISTER
Using this app you can connect your iPad to your computer and use it as an additional screen While working on an important presentation or sales proposal you can extend or mirror your computer screen on your iPad This app is compatible with both Mac and Windows computers Note that to use this feature you have to install Air Display on your iPad and a separate free app on your computer The computer and iPad also need to be on the same Wi-Fi network in order to work in-sync
For Mac users the app allows you to connect to up to four screens ndash all at the same time
Apart from the ability to convert your iPad into a wireless display whatrsquos also attractive about this app is that it allows you to control your computer wirelessly using your iPad
This fantastic application can serve as a mobile point of sale for your business It allows you to accept credit card payments ndash including Visa MasterCard Discover and American Express A transaction fee of 275 is charged for every time you swipe a card The sale amount is transferred to your account within two working days
Once you download the app you can sign up and register for a unique card reader solution called the lsquoSquare Readerrsquo (this is free) Square Reader encrypts all card details and ensures that the transaction is secure Once you receive your Square Reader you can connect it to your device and are all set
The application also offers added features such as transaction history connecting to a receipt printer creating employee logins and more
AED 3699
PRICE
Free
PRICE
wwwthecfomecom 67
APPSTECH TALK
DOCUSIGNHave you ever been in a situation where your employees need you to urgently sign a contract but arenrsquot able to physically reach you in time DocuSign solves this problem with its easy-to-use eSignature feature In three easy steps you can sign important documents and securely send them to your intended recipient
First you have to import the document to your device ndash this could be from Dropbox Google Drive or another select applications You then place your signature or any other important legal information you need to include such as initials Once you have finished working on the document send it back via e-mail
Whatrsquos particularly great about DocuSign is the great emphasis it puts on security ndash so that users donrsquot have to worry about getting into any legal trouble
Use DocuSign and never miss a deadline again
Free for basic version
PRICE
MPAYAn initiative by the Dubai eGovernment Department mPay is a simple application that allows you to make important payments Once yoursquove signed up and entered your payment details you are good to go You can pay your Dubai Electricity and Water Authority (DEWA) bills Etisalat utility bills Dubai Police fines Recharge SALIK and much more
A handy feature is its lsquoauto-rechargersquo option which you can use to set automatic payments
Free
PRICE
Opinion CIMAPERSONALITIES
wwwthecfomecom68
NEW HORIZONSBy geetu Ahuja Head of gCC at CIMA
The days of the traditional accountant working within a small community in a small town in a small market have long gone CFOs are now being referred to as Chief Frontier Officers as they travel from market to market overseeing their offices overseas This new expanded role has distinct advantages for both the company and the CFO who gain new skills and new insights from foreign branches a single hand at the helm of many markets provides business perspectives on a global scale and benchmarks across the board
On a personal level working abroad also has huge importance Robert Walters the specialist professional recruitment consultancy recently conducted a survey
of almost 2200 employees across a variety of professions exploring a number of topics which ranged from working practices and attitudes to careers The results highlighted some notable trends particularly for finance professionals
In career progression for example the survey showed that 50 of all accountants see working abroad as either lsquoessentialrsquo or lsquoextremely usefulrsquo to furthering their prospects more than banking professionals lawyers and IT workers ndash a strong indication of how accounting professionals are thinking about their future either within their existing company or with opportunities elsewhere
Accountants with globally recognised qualifications obviously have a greater chance of gaining some experience abroad and the lsquoGen Yrsquo professionals in particular seem ready to pack their bags In a CIMA study conducted in the UK last year over a third of those seeking employment in the
next two years will prioritise opportunities abroad over those in their home countries many of them enticed by the career incentives offered by the Middle East
How quickly can they land what seems to be their dream job What are the realities It may be that the move is simply from one branch to another and the only significant difference is a view from the window but for those expanding rather than changing their roles we have seen a very real need for a depth and breadth of knowledge never needed before
As geographical boundaries are pushed ever-wider a CFOrsquos responsibilities are pushed with them For many finance executives the understanding of their own patch of land is no longer enough they now have to be aware of foreign markets up to speed with foreign trends and au fait with foreign laws There is a need for a new commercial awareness in geography as well as philosophy
As geographical boundaries are pushed ever-wider a CFOrsquos responsibilities are pushed with them
John vargheseQampA
wwwthecfomecom 69
BUSINESSSET UP YOUR
IN THE UNITED ARAB EMIRATES
TO
WAREHOUSESOFFICES INDUSTRIAL LANDFLEXI
Quick and easy company set-up
Less than an hour drive from Dubai
Complete cost-effective packages including licences and facilities
100 foreign ownership
Zero income and corporate taxes
Eligibility for UAE Residence Visa
BUSINESS SET-UP SOLUTIONS STARTING FROM AED 15000 (USD 4000)
RAK FREE TRADE ZONE PROVIDES
RAK Free Trade Zone Authority - Government of Ras Al KhaimahUAE (Ras Al Khaimah) Tel +971 7 2041111 (Dubai) Tel +971 4 7041875 (Abu Dhabi) Tel +971 2 6994888
Germany (Cologne) - Turkey (Istanbul) - India (Mumbai)
Call +971 7 204 1111 Visit wwwrakftzcom Join rakftz
34
CIMA INTERVIEW
wwwthecfomecom
The Chartered Institute of Management Accountantsrsquo (CIMA) Managing Director Andrew Harding visited Dubai to host the Institutersquos seminar on global management accounting principles In the wake of CIMA revising their well heralded syllabus Harding discussed with CFO Magazine what the newest edition held how CIMA is applying a digital focus to its courses and just how CFOs can gain from it all
CURATING CURRICULUm
35
CIMAINTERVIEW
wwwthecfomecom
can give CFOs something they can take and something they can measure their own management accounting services against They can benchmark using this and they can utilise this to see their progress
Part of that is having professional management accountant in place I donrsquot think the landscape matters I believe that there is a common business need wherever you may be around the globe
All of the emerging markets need these skills The first aspect that accounting schools teach is about auditing skills because theyrsquore interested in protecting investments Then they teach you how to keep your business sustainable and to have a sustainable business you need to have a management accountant in place So itrsquos not just here in the UAE where we see these demands we see the same demands in China Indonesia and other powerhouse economies We see their skills shortages and we see the need for solutions in those areas
Talk to me about how this new syllabus works to promote the evolution of a CFOThis syllabus that wersquove
Can you expound on just what can be found within the new CIMA syllabusWe just revised the syllabus we do that every four to five years What we have done this year is a very significant revision It is based from a complex study that we have carried out to over 3000 people from 200 companies globally It is the very first revision since the joint venture with CIMA and AICPA So this has allowed us to attain a syllabus rich with all the data from all the continents in the world For the first time wersquove had real involvement from companies in the USA in this project
Why is the collaboration between AICPA and CIMA significantMost important is the Chartered Global Management Accountant (CGMA) designation that AICPA and CIMA both issue for qualified management accountants Wersquoll have a common curriculum and common examination which will begin on January 1 which gives us a global designation for management accountants wherever they are around the world There are plenty of accounting bodies who claim to be global but actually this is the only
genuinely global designation This is because it has the only one with a North American participation in it So we can say that the CGMA will be just as well-recognised in the USA as it is in Dubai
With the global landscape in mind how do you create an even objective that applies to localities which may prove widely differentialThe landscapes are different but businesses have common needs wherever they may be What wersquove particularly seen since the global financial crisis is that companies are actively looking to build management accountant capability to build that capacity within their organisations They donrsquot want to have a poor quality of information that lacks insight being used in their businesses So they see management accountants can bring solutions to that As a result of all the work wersquove done with companies who participated in the syllabus wersquove also put together a series of what we call Global Accounting Principles This is a series of principles which describes what good management accounting looks like and what top quality management accounting in a company should be producing This then
ldquoCompanies are actively looking to build man-agement accountant capability to build that capacity within their organisa-tionsrdquo
36 wwwthecfomecom
worked on acknowledges the skill set needed by professionals throughout their career Therersquos a base level of competence that is needed but beyond that there is more There is business acumen the ability to communicate and influence and finally the ability to lead So you start off enhancing your raw technical accounting skills Then you need to place that into the context of the business that you are in Then as you move forward and as you rise to become the CFO yoursquoll need the others You have to learn how to present your work in a way that can influence and make an impact in the business The final piece is the ability to lead projects and other functions and to a great extent lead the board of directors Thatrsquos how the context works itrsquos not just about technical knowledge
How do you find that CFOs in the GCC region are responding to this programmeThe CFO has a real challenge on his hands now In 1975 80 per cent of corporate value is showing on the balance sheet By 2010 that dropped to less than 20 per cent Your traditional PampL reports no longer reflect the value of the business or how the business drives value
All things that should be of interest to investors is missing With things like the integrated report initiative wersquore starting to see the other dimensions that add value to business For CFOs thatrsquos all about strategic thinking and considering the long-term objectives Being articulate in implementing those strategies keeping in mind the risks and opportunities that the business faces We are also nowadays witnessing a whole new world of transparency around that
Are there electronic aspects to CIMArsquos advancing approachThe interactive case study simulates a real working situation and it tests how they can apply their knowledge in real life situations Theyrsquoll be presented with a scenario a few weeks before they take the exam so they can prepare for it They then go to an exam centre where they are asked questions about how they will deal with a certain situation in the real world Theyrsquoll get an email from the CFO giving them a certain task for a particular period of time We want to make it as close to reality as possible so students taking the exam will be assessing situations based on real life scenarios
ldquoThe CFO has a real challenge on his hands now as traditional PampL reports no longer reflect the value of the businessand [the role] must focus on strategic thinking and considering long-term objectivesrdquo
218KCIMA members worldwide
STAT FACTS
CIMA INTERVIEW
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
38
ERPANALyTICS
wwwthecfomecom
Faster more nuanced IT solutions are available to the modern day CFO Whilst Chief Financial Officers are called upon to analyse data across a number of spectrums the digital tools on hand are likewise being expanded to aid in focusing more squarely on the bottom line
ExCELLING WITH ERP
The global landscape is today firmly entrenched within a digital model As a result CFOs whom are called upon to take a larger role in a number of variables must also increase their abilities with respect to utilising the many upsides which tech innovations offer a business When surveyed about their most pressing concerns CFOs generally return a varying collection of responses Revenue growth regulatory changes and meeting quarterly goals are among the chief concerns Virtually every obstacle can be hurdled by way of maintaining the order of financial reporting and data which has long been
synonymous with the Chief Financial Officerrsquos remit A widening berth of ERP solutions is making this data all the easier to come by
Despite how sophisticated the market is today it was not long ago that ERP departments once spent days processing business reports
Said Rohan Tejura Assistant Vice President Focus Softnet ldquoTraditional ERP systems were solely data repositories Moreover these repositories werenrsquot real time and were incredibly dependent upon locational connectivity With the emergence of smarter development platforms more versatile devices and
39
ERPANALyTICS
wwwthecfomecom
more intuitive designs of system development the overall experience of the ERP now extends from data warehousing to reporting analysis trend mapping business intelligence and governance oriented capabilities Yet these solutions amazingly execute all of these deliverables via portable handheld devices and through cloud environmentsrdquo
New generation ERP systems must now be on the go whilst including up to the minute analytics to provide deeper insight into the business ERP Analytics tools use historical data captured from various business functions to provide valuable information for efficiency and business performance each incredibly priceless to a leading CFO
Finesse is an ERP provider which is continually addressing the transformation of output which the ERP industry is offering the equally transitioning role of CFO
ldquoWe provide end-to-end business management solutions to SMEs and Enterprises Our approach to ERP is much more than providing simply an operational management systemrdquo said Finesse COO Sunil Paul
ldquoWe believe that todayrsquos businesses need much more than integrating sales with inventory accounting and manufacturing but also to have seamless integration with all their sales channels including the point of sales ecommerce and inbound sales solutionsrdquo
A major im-petus of the ERP-cen-tered growth is based on how effec-tive com-prehensive real-time data proves to be for the CFO
40 wwwthecfomecom
before thereby creating new global benchmarks for overall economic growth
Microsoft Arabia CFO Sadrul Khan offered insight into just how far the knowledge economy has influenced regional financial leadership by explaining how one of the most prioritised technologies by CFOs in the region is social platform monitoring
ldquoOne of the five technology choices that CFOs tend to prioritise in boosting productivity efficiencies and faster decision making in the fast paced business environment which include a social platform that monitors trends customer sentiments and helps process mashable data for customer centricity and business growthrdquo said Khan
A major impetus of the ERP-centered growth is based on how effective comprehensive real-time data proves to be for the CFO Whether employed as on-premise ERP software-as-a-service or cloud-based solutions a nearly identical ethos is being utilised Allowing the CFO to quickly access the performance of all facets of a business is paying dividends in the boardroom a reality which is showing itself increasingly in the Middle East
The technologically-charged relationship between ERP solutions and the regionrsquos CFOs is expanding and as a result has catalysed what many see as GCC economic performance outstripping that of many economies outside of the region as a result
In order to compete in todayrsquos fiercely competitive environment organisations need to think both innovatively and out of the box They require more insights about their business and their customers and need to ensure that they are able to meet the expectations of their internal as well as external stakeholders Enormous amounts of data both structured and unstructured is continuously being generated within the internal and external systems of the organisation which if analysed can be of immense value both to the business and subsequently the stakeholders associated with the organisation
With the the era of CFOs labouring over spreadsheets now in the past given how many business frontiers have become so dependent on mobile options such as the cloud more and more tech companies are providing the regionrsquos CFOs with information technology that converts traditional internal and external data into rich visual insights This information is then used for faster decision making and provides the ability for a CFO to assess manage and control risks Regional CFOs have grown enabled to drive corporate strategy accordingly demonstrating how the knowledge economy is now in full force amongst the Gulfrsquos corporates
Given that advanced IT has now become a regular CFO tool the regionrsquos CFOs are subsequently making faster decisions and driving internal growth models with greater speed and agility than ever
Tech companies are providing the regionrsquos CFOs with information technology that converts traditional internal and external data into rich visual insights
ERPANALyTICS
Donrsquot discoveritrsquos counterfeittoner afteritrsquos too lateOriginal HP Toner works first time every time1 unlike cheap toners which fail over half of the people who try it2 Non-HP toner can compromise your printerrsquos performance to give you streaked blotchy or faded prints Only original HP Toner cartridges deliver unmatched quality for the most professional-looking prints 100 of the time1
1 A QualityLogic 2010 study commissioned by HP comparing original HP LaserJet Monochrome print cartridges with nine brands of non-HP toner cartridges available in Europe Middle East and Africa for the HP LaserJet P1505 and P4015 printers HP 36A and 64A For details see wwwqualitylogiccomEMEAmonotonertestpdf 2 From a 2012 EMEA Lyra Research study commissioned by HP Results based on a total of 1050 HP Color LaserJet users who have used both original HP and non-HP toner cartridges of whom 552 experienced problems with non-HP cartridges
copy 2014 Hewlett-Packard Development Company LP
42
Private Equity ANALyTICS
wwwthecfomecom
The rise of PE-backed acquisitions is forcing CFOs to develop an entirely new set of skills
THE PRIvATE EQUITy CFO
The CFOrsquos utility in the world of private equity is without question on the rise The once-held belief of the CFO existing solely as the ldquoaccounting guyrdquo has been abandoned Over the last 20 years the role of CFO has become more demanding - requiring not just finance and accounting acumen but also a financial literacy in corporate planning risk management MampA assetliability management and regulation This evolution has been driven by a number of
key factors Yet the private equity industry which is now reshaping the corporate landscape through active ownership is by far the most significant factor driving change within the role of the CFO
PE-backed buyers today represent a larger percentage of overall buyers in the corporate acquisition marketplace than ever before Data provider Prequin estimates that as of June 2014 the capital raised by PE funds that
has not yet been deployed amounts to $114 trillion globally The result of this ldquodry powderrdquo is that a vast quantity of corporate acquisitions in the coming years will be undertaken by the private equity industry As such CFOs will be more accountable to demanding ldquosmart moneyrdquo shareholders than at any point in recent history Budgeting accounting and financial reporting will no longer exist as sole priorities but as a core competency among a
ldquoBy effec-tively using real-time data CFOs can create a dynamic process that proac-tively drives performance account-ability and value crea-tionrdquo
By Aaron Heidari
43
Private Equity ANALyTICS
wwwthecfomecom
robust set of complimentary and required skills Most of all the bar for CFOs is rising as PE investors will only accept above-average performance from their management teams
CFOs were once more reactive in function setting budgets based on other executivesrsquo plans and managing the flow of reporting to shareholders on a quarterly and yearly basis Today CFOs are required to become proactive managers of their respective businesses alongside their C-suite compatriots using a granular data-driven approach to aggregate analyse implement and report on every aspect of a companyrsquos operations
An important tool to drive this value creation process are KPIs Yet KPI structures including both aggregation and output are generally not up to the standards required of private equity investors prior to an investment being made
ldquoThe benefits of using KPIs and monthly reporting packages are significant By effectively using real-time data that is actionable and by partnering with functional area leaders within the organisation company CFOs can create a dynamic process that proactively drives performance accountability and value creationrdquo said Amanda Robinson Vice President of Accordion International in Dubai a consulting firm which is comprised of former private equity and investment banking professionals who
MENA region Cumulative Funds Under Management Since 2008
Source Zawya private Equity Monitor
19 636 20 36321 586
22 64323 506 24 250
-
5000
10000
15000
20000
25000
2008 2009 2010 2011 2012 2013
Cu
mu
lati
ve f
un
ds
($ m
)
$15mAverage MENA PE investment size in lsquo13
50Percentage of investment in IT and energy sectors
STAT FACTS
44 wwwthecfomecom
work with companies to deliver cost-effective project execution services
Active shareholders whose money it is being spent will typically require a data-driven justification before approving any budgets capital expenditures or new acquisitions Furthermore in many private equity backed companies the use of debt and the matching of shorter-term bank financing with longer-term investments will only be considered after a robust analysis is conducted to understand the companyrsquos ability to service that debt in the future This evaluation is not simply to identify revenues expenses and profits Itrsquos about drilling down into every transaction and rooting out data processing and reporting At least that is the expectation
The most valuable CFOs are those who have the ability not just to scrutinise and understand the financials but all also possess a wider grasp of the underlying data which truly comprise the business As an investor who has just acquired a stake in a new business I want a CFO who can manage the transition and stay ahead of my expectations Most of all a CFO should impress upon the companyrsquos shareholders a new way of doing business The first 100 days of an acquisition are said to be the most important During this period the CFOrsquos worth will be established when the new financial plan is due and the platform for the next five years of growth is presented
A CFO should man-age the tran-sition stay ahead of expectations and impress upon the companyrsquos shareholders a new way of doing business
Investment Volume By Sector Since 2006
Investment Volume By Sector in 2013
Source Zawya private Equity Monitor
1
3
30
17
3
28
3
4
6
4
6
5
17
9
9
6
9
5
8
6
6
2
3
10
Education
Education
Information Technology
Information Technology
Other
Other
Telecoms
Telecoms
Media
Media
Transport
Transport
Oil amp Gas
Oil amp Gas
Healthcare
Healthcare
Consumer goods
Consumer goods
Food amp Beverages
Food amp Beverages
Leisure
Leisure
Manufacturing
Manufacturing
ANALyTICS
Private Equity
2000857 NBAD ratibi mag ad 200x268 Finalindd 1 92514 1017 AM
46 wwwthecfomecom
THE FUTURE OFACCOUNTING EDUCATIONAddRESSINg THECOMpETENCY CRISIS
Have you ever stopped to think about how the accounting profession has changed since you graduated from college Recent graduates can answer this question by reflecting on the last two or three years whereas for other more seasoned professionals answering this question requires a bit more thought and memory searching Indeed we can all think of ways that the field of accounting is remarkably different today from the one we likely envisioned during our college daysmdashregardless of which decade we each donned our cap and gown This gradual transformation of the accounting profession leads to two important questions related to competencies bull Which competencies are important for success inaccounting todaybull Were these competencies consciously developed as partof your accounting degree programme
We suspect that more than a few of you would answer ldquonordquo to the second question Put another way our profession may be facingmdashmore so than at any time in the pastmdasha ldquocompetency crisisrdquo that is a gap between the competencies needed for professional success and those taught in our college classrooms today We propose a three-pronged strategy or ldquogame planrdquo for overcoming this competency crisis and in turn better preparing accounting graduates for the challenging world they will face First all of us accountants need to understand the changes that have already taken place in our profession and perhaps more importantly anticipate the changes that are on the horizon Second we need to educate ourselves and future generations of accountants so that as a collective group we can deliver the expanding set of competencies demanded in todayrsquos dynamic organisational
contexts Third as professional organisations and as individuals we need to think beyond ourselves by asking How can I (or we) help the accounting profession address the competency crisis
A Shift Toward Integrated ThinkingMany articles and white papers have been written that describe in detail the changes that have occurred in our profession over the last few decades but for our purposes wersquod like to distill these changes down to one crucial idea How does the accounting function add value to an organisation Accountants have evolved from support-oriented personnel who hand off information to others who actually make decisions into business partners who ldquohave a seat at the tablerdquo with managers
By peter C Brewer James E Sorensen CpA CgMA and david E Stout
47wwwthecfomecom
1048576bull What regulatory risks mayaccompany the proposal
1048576bull What social and environmentalfactors will we face if for example the proposal requires investing in overseas operations
1048576bull What types of employeeresistance may arise if we implement the proposal and how will we overcome the root causes of any such resistance
1048576bull Can and how should we valuefuture options associated with the proposal such as expanding or contracting the investment over time as new information becomes available
1048576bull Should we use debt or equity tofund the proposal
In short accountants have evolved to become integrated thinkers who enable EPM by partnering with managers across the organisation to add value Yet as EPM has gradually become the centrepiece of our professionrsquos value proposition accounting education hasnrsquot done enough to embrace it To overcome this gap wersquod like to further suggest that the concepts of competency integration and EPM need to come ldquofront and centrerdquo as we move forward in educating the next generation of successful accounting practitioners
Accounting Education No Longer on the SidelinesRecently a task force consisting of members of IMAreg (Institute of Management Accountants) and members of the Management Accounting Section (MAS) of the American Accounting Association (AAA) addressed the competency issue How should accounting education change fundamentally to help close the competencies gap The efforts of the task force led to
cash flows and how to apply discounted cash flow (DCF) decision models such as net present value (NPV) is of foundationalmdashsome might say critical mdash importance But integrated thinkers draw on an understanding of organisational strategy coupled with a broader set of competencies (beyond what might be considered technical or foundational knowledge) when making these types of decisions For example they consider how behavioural issues may influence the capital investment decision-making process Perhaps the financial estimates contained in the NPV analysis are too optimistic because the manager who prepared the numbers has a vested interest in seeing the project approved Decision makers also need to consider issues such as leasing vs buying a capital asset and the corresponding impacts on the financial statements and ratios that are tracked by investors and lenders What nonfinancial factors are associated with the proposed investment Add in the tax consequences of capital investment decisions coupled with the need to maintain internal control over any new business processes tied to these decisions and the need to think in an integrated fashion across a variety of accounting competencies becomes apparent
Furthermore becoming a true business partner with managers across the organisation requires more than simply integrating various accounting competencies It also means thinking like a business manager or a chief executive officer (CEO) Returning to the capital budgeting example an integrated thinker will ask questions such as
across the organisation Together they formulate and plan strategies then participate in collaborative decision-making processes that execute those strategies in a manner that adds stakeholder value Said another way accountants have evolved to become enterprise performance managers This shift in our orientation from a support function to an enterprise performance management (EPM) role has enormous implications for defining the determinants of success within our profession the most important of which involves becoming collaborators and ldquointegrated thinkersrdquo Take for example a common but important business decision process capital investment analysis Certainly technical knowledge regarding how to estimate relevant after-tax
48 wwwthecfomecom
expanding capital budgeting discussions to include financial statement impacts tax consequences and internal control issues integrates topical coverage across the External Reporting and Analysis Taxation Compliance and Planning and Assurance and Internal Control competencies shown in Figure 1
Third accounting curricula can incorporate a broader set of management competencies For example evaluating capital investment proposals from the perspectives of change management (Leadership) social and environmental issues (Ethics and Social Responsibility) regulatory concerns (Governance Risk and Compliance) and capital structure (Additional Core Business Competencies) brings a CEOrsquos perspective to the decision-making process
Fourth accounting curricula should include foundational competencies such as proficiency with spreadsheets and written and oral communication In the context of capital budgeting this may include asking students to use Microsoft Excel to perform a sensitivity analysis and then to present their findings to the entire class
Working to Fix the ProblemAt this point although you may agree with us that therersquos a competency crisis within the accounting profession you may be wondering What does this have to do with me What can my organisation do to help address this so-called competency crisis The answer a lot Practice partners and academic partners can help the accounting profession overcome the competency crisis That said letrsquos take a closer look at the role of practice partners first
improvement) and accounting competencies (external reporting and analysis planning analysis and control taxation compliance and planning information systems assurance and internal control and professional values ethics and attitudes) Of critical importance to the framework is the assumption that the set of competencies contained in Figure 1 would be developed and integrated over time through a blend of formal education (including continuing education) training and job experience
What levels of integrationmdashon the road to developing integrated thinkers in accountingmdashare possible First accounting educators can integrate within a single accounting competency So referring back to our capital budgeting discussion teaching computational models such as NPV analysis coupled with a review of various behavioural issues associated with capital investment decisions would be an example of integrating within the Planning Analysis and Control competency listed in Figure 1
Second professors can integrate across accounting competencies For example
a recently published article that contains a proposed framework for accounting education reproduced here as Figure 1 The framework is general in the sense that itrsquos meant to apply to all accounting students not subgroups based on career specialisation such as tax assurance services corporate finance and the like Itrsquos based on the idea that accounting educators can better prepare students to deliver our professionrsquos EPM value proposition through integrated competency-oriented curricula (For more see ldquoFocusing Accounting Curricula on Studentsrsquo Long-Run Careers Recommendations for an Integrated Competency-Based Framework for Accounting Educationrdquo in the May 2014 edition of Issues in Accounting Education)
A glance at Figure 1 reveals three levels of competencies foundational competencies (communication ability to leverage technology and analytical thinking and problem solving among others) broad management competencies (including leadership ethics and social responsibility and process management and
Proposed Competencies-based Framework for Accounting Education
FOUNDATIONALCOMPETENCIES
ACCOUNTING COMPETENCIES
BROAD MANAGEMENT COMPETENCIES
leadership
ExternalReportingamp Analysis
PlanningAnalysis
amp Control
TaxationComplianceamp Planning
InformationSystems
Assuranceamp InternalControl
ProfessionalValues Ethics
amp Attitudes
Communication
Quantitative
Interpersonal
Technological
Analytical Thinking ampProblem Solving
Ethics amp SocialResponsibility
ProcessManagement ampImprovement
GovernanceRisk amp
Compliance
AdditionalCore BusinessCompetencies
Although you may agree with us that therersquos a competency crisis within the account-ing profes-sion you may bewondering What does this haveto do with me
A practice partner should be or become a CMAreg (Certified Management Accountant) maintain professional certification by completing required Continuing Professional Education (CPE) hours and regularly read the IMA publications Strategic Finance and Management Accounting Quarterly
In addition there are a number of excellent resources that deal with topics covered in this article and that IMA makes available to its members
Strategic Finance PowerPacks(wwwimanetorg SFPowerPacks) These are resources focused on contemporary topics similar to those discussed earlier Current offerings include Risk Management Strategic Planning IT Skills amp Software and Internal Controls Each PowerPack includes a combination of resources such as research studies articles and links to webinars
Statements on Management Accounting (SMAs)(wwwimanetorgresources and_publicationsresearch_ studies_resourcesstatements on_management_accounting aspx) SMAs represent monographs classified into one of the following six categories Leadership Strategies and Ethics Technology Enablement Strategic Cost Management Business Performance Management Finance Governance Risk and Compliance and the Practice of Management Accounting Multiple items are available within each category For example the Practice of Management Accounting category includes (among other items)
49wwwthecfomecom
the Definition of Management Accounting and Implementing Shared Service Centres
Research Studies (wwwimanetorgresources_and_publicationsResearch_Studies_and_ResourcesAll_reportsaspx) The ldquoThoughtLeadershiprdquo section of IMArsquos website includes research covering a broad range of issues classified into seven categories For example under the ldquoGlobal Business Environmentrdquo category the following two research reports are available ldquoKey Differences Between IFRS and US GAAP Impact on Financial Reportingrdquo and ldquoCosting Methodologies and Cost Management Practices in the Peoplersquos Republic of Chinardquo
IMA Leadership Academy (www imanetorgprograms_events leadership_academyaspx) As described on the IMA website this programme is designed to assess a memberrsquos leadership status enhance that individualrsquos skills (principally through monthly webinars) and recognise leadership achievements These benefits are free to members
How You Can Make a Bigger Impact In addition to attending local regional and national IMA meetings consider inviting a small group of students to each chapter meeting This could be a wonderful (and relatively low-cost) option for mentoring aspiring accountants and finance professionals providing networking opportunities and introducing students to cutting-edge issues regarding the practice of management accounting Joining a university accounting
advisory group may be another way to influence the development of EPM in that institutionrsquos curriculum design
Other methods to enhance EPM in your organisation include (1) forming user groups within your company your local IMA chapter or your industry to review and share EPM experiences (2) encouraging advancement in the firm to be linked to EPM proficiency (3) focusing your companyrsquos recruiting efforts on candidates who display a background in andor understanding of EPM and (4) organising cross training within your company to enhance a mutual understanding of each otherrsquos respective roles
Finally visit the Competency CrisisTM website (http competencycrisisorg) set up by IMA to unite the accounting and finance constituencies professionals students employers academics and professorsmdashand explore competency issues through the lens of each stakeholder group The site is designed to ldquoencourage a discourse spur action and create a community dedicated to resolving the serious crisis of competency present in the professionrdquo Special sections of the website are devoted to educators students and employers professionals
Our Partners in Education Much like a practice partner an academic partner should be or become a CMA maintain professional accreditation by completing CPE hours and regularly read IMArsquos publications
Academic members of IMA can pursue and actively promote the CMA programme at their respective institutions
50 wwwthecfomecom
IMArsquos website contains helpful resources including an exam content overview content specification outlines for each of the two parts of the CMA exam and learning outcome statements The current exam covers some of the professional competencies represented in Figure 1 A summary of changes to exam content which will be effective in January 2015 is provided on the IMA website in News amp Media Relations which is located under ldquoAbout IMArdquo (See the press release dated March 24 2014) Other helpful resources include ldquoICMA Announces CMA Exam Content Changesrdquo in the April 2014 issue of Strategic Finance as well as ldquoManagement Accounting Career Readiness Shaping YOUR Curriculumrdquo
These forthcoming changes are based on the most recent IMA study of the knowledge and skills needed by management accountants from the view of CFOs controllers and other accountingfinance professionals from around the world
Also consider taking a group of your students to the IMA Student Leadership Conference held each November The Conference provides excellent networking opportunities for you your students and practicing professionals Students can learn firsthand from Conference presenters the challenges and opportunities facing finance and accounting professionals today
Moreover if your institution doesnrsquot currently have an IMA Student Chapter consider forming one One of the authors of this article David Stout reinstituted the student chapter at his school (Youngstown State University) after travelling with a group of his students to the IMA
Student Leadership Conference in Cleveland Ohio Through an IMA Student Chapter on campus students are able to work closely with a sponsoring local IMA chapter and bring to campus speakers who are experts in a wide range of topics including those discussed earlier in this article Each year student chapters compete for an Award of Excellence (AOE) and recognition as an Outstanding Student Chapter In addition IMA student members are able to engage in networking activities leadership training mentoring and community service programmesmdashall through their local chapter
You also might consider volunteering to serve as a Campus Advocate In this role yoursquoll represent IMA in all major matters of interest to your students (scholarship opportunities starting a student chapter mentoring and the like) and to your institution (for example leveraging IMA resources to advance the relevancy of the accounting curriculum use of educational case studies published in the IMA Educational Case Journal and access to IMArsquos ethics curriculum)
And if you havenrsquot yet done this ask IMA to endorse your accounting programme (information is available at www imanetorgeducator_resources indexaspx) This programme is designed to identify business curricula that meet the quality educational standards required to prepare students to earn the CMA designation Endorsement is based on an analysis of the curriculum and topics covered on the two-part CMA exam Currently 12 programmes have been endorsed
Finally if your school has an IMA Student Chapter consider participating in the annual IMA Student Case Competition where students are asked to propose a solution to a real world problem (Cases are solicited each year by Raef Lawson IMA VP of Research and Policy and IMA Professor in-Residence) Finalists make their presentations at IMArsquos Annual Conference amp Exposition before a set of judges consisting of accounting faculty members and practitioners Each year a new case is published in the August issue of Strategic Finance for students to use for that yearrsquos competition
Working TogetherIn this article we have summarised the changes that have affected the accounting profession and provided a competencies-based framework for guiding accounting educators in responding productively to those changes As a management accountant you know that implementing change in any organisation let alone within an entire profession never comes easily To be successful in overcoming our professionrsquos competency crisis IMArsquos practice and academic partners will need to assume leadership roles in defining enterprise performance management as the cornerstone of the accounting professionrsquos value proposition
This article was orginally published in the August 2014 issue of Strategic Finance It appears here with the permission of The Association of Accountants and financial professionals in Business
We need to educate ourselvesand future generations of account-ants so that as a collec-tive group we can deliver theexpanding set of com-petenciesdemanded in todayrsquos dynamicorgani-sational contexts
THE POWERFUL AND THRIFTY OFFICE ALL-ROUNDERS
The new ECOSYS M3560idn series will astound you With their print speeds of up to 60 pages per minute they are among the most productive A4 bw multifunctionals on the market We nevertheless managed to keep their ecological footprint and total cost of ownership impressively low by using our well-known ECOSYS technology and equipping the devices with our renowned long-life components The result Not only less waste and lower maintenance costs but also less hassle for you and all your colleagues You will also greatly appreciate the many customisation possibilities of the devices equipped with KYOCERArsquos open solution platform HyPAStrade as it allows you to tailor the device to your needs So yes we are proud of our new range of MFPs and can hardly wait to share their numerous benefits with you
For more information please contactKYOCERA Document Solutions Middle East | PB Box 500817 DubaiUAE | Tel +9714 4330 412 | Fax +9714 4231 944KYOCERA Document Solutions Europe BV - wwwkyoceradocumentsolutionseuKYOCERA Document Solutions Inc - wwwkyoceradocumentsolutionscom
52
ACCAINTERVIEW
wwwthecfomecom
GLOBAL By ASSOCIATION
across the region from our key employers and learning provider partners to our active and growing student and member base I want to understand their challenges and priorities and how ACCA can work with them to help support the economic success of the region
What can a CFO gain from working with ACCAThe ACCA qualification is about complete finance professionals For CFOs it brings the technical knowledge vital to business success complemented with the strategic management skills and ethical competence crucial to an organisationrsquos success As an organization ACCA in the UAE brings CFOs access to that local and global network of peers and expertise along with our leading research and insights that help them to keep up to date on the issues that matter most
Are there any initiatives in place to leverage the recently announced partnership with AAA
How are the ACCArsquos many years of activity being applied to the Middle EastACCA has now had a presence in the UAE for well over a decade During that time we have established strong relationships across the Middle East epitomised by the recent signing of our Strategic Partnership with AAA As a national body in choosing to partner with ACCA they recognised the local and global perspective we bring We are continuing to work with students members and employers across the Middle East to build their networks knowledge and business success through events research and insights and access to a growing number of online resources
Which initial priorities are among your key aims upon joining the organisationrsquos efforts in the UAEIn the first few months I hope to build on the success of the team in the UAE My priority will be to meet as many of our key stakeholders
The Association for Chartered Certified Accountants (ACCA) provides its services across a number of international borders The recent announcement of Lindsay Degouve de Nuncques as the new head of the Associationrsquos UAE chapter further exemplifies the ACCArsquos reach based on her previous work in the UK Nuncques shares here what she brings to the Middle East and just how globalisation has driven her ascent
53
ACCAINTERVIEW
wwwthecfomecom
The strategic partnership with AAA is the first of its kind in the region Students who complete the UAECA qualification will be entitled to both the AAA and ACCA designations and ACCA members in the UAE will also be eligible to apply for AAA membership This is a very exciting development in the market and together AAA and ACCA will be working to deliver maximum value to all our stakeholders from this partnership As we launch the UAECA qualification this activity will start in earnest
Which key industries will you be spotlighting in the Middle East in the months aheadOur experience of working across all sectors and levels of organisations globally gives ACCA a unique insight into all types of industries We will continue to be working with employers across the spectrum in the months ahead to help them gain the insight and make the connections that drive businesses to succeed at whatever they do
ldquoThe ACCA qualification is about complete finance professionals For CFOs it brings the technical knowledge vital to business success complemented with the strategic management skillsrdquo
54
Islamic FinanceMARKET OUTLOOK
wwwthecfomecom
In its 10th instalment the Forum is hosted in Dubai as a direct result of the UAErsquos increasing importance in the world of global Islamic finance
THE WORLD ISLAmIC ECONOmIC FORUm LANDS IN DUBAI
In Dubairsquos continued quest for leading the world across a range of spectrums the Emirate accelerated its desire to become the worldrsquos leading hub for Islamic finance by hosting the 10th installment of the World Islamic Economic Forum (WIEF) Delegates from dozens of countries attended to take part in a three-day event held at Madinat Jumeirah which rests alongside Dubairsquos gleaming coastline Held under the patronage of His Highness Sheikh Mohammed Bin Rashid Al Maktoum the
Vice President and Prime Minister of the UAE and Ruler of Dubai key speakers included The Honorary Dr Zeti Akhtar Aziz Governor of the Central Bank of Malaysia HE Kairat Kelimbetov Governor of the National Bank of Kazakhstan The Honorary Datorsquo Sri Mohd Najib Tun Abdul Razal Prime Minister of Malaysia and HE Xavier Bettel Prime Minister of the Grand Duchy of Luxembourg
Launched in 2006 in Malaysia WIEF has grown in tandem with the increased
Delegates from dozens of countries attended WIEF to take part in the three-day event
sophistication and reach of Islamic finance After a successful event in London in 2013 amidst increased interest in Islamic finance across Europe WIEF relocated to Dubai where the local business structure is keen to host halal finance
Said Hamad Buamim President and CEO Dubai Chamber of Commerce and Industry co-organisers of the event ldquo[The forum] is the start of a new chapter of cooperation between Dubai and the world as part of
55
Islamic FinanceMARKET OUTLOOK
wwwthecfomecom
Dubai Capital of Islamic Economy visionhellipestablishing a unified regulatory authority to provide the framework for standards across halal industries will significantly accelerate growth Likewise we need to see increased cooperation and partnership between the public and private sectors This is already happening with great success here in Dubairdquo
The order of global cooperation needed to facilitate growth across the Islamic finance world was more than apparent at WIEF based on how many differing nations were represented at the event The exhibitorrsquos hall was populated with a number of key Malaysian stands representative of the Southeast Asianrsquos ranking as the global leader in Islamic finance Also present were companies from Saudi Arabia also a key locality in the worldrsquos halal industries An interesting yet prescient presence was of attendees from South Korea a nation which is eager to participate in Islamic finance and will be hosting the WIEF Pyeongchang Roundtable in December 2014
ldquoGangwon is a province located in Korea which is very interested in new business opportunities Wersquove realised the strength of the Islamic economy and have come here with many different companies The first type is based in real estate investment We also have companies which want to export their products to the Islamic economy based on their halal qualities And Gangwon will also be hosting the Winter
ldquoKorea is very interested in the strength of the Islamic economy and wants to export its products based on their halal qualitiesrdquo
56 wwwthecfomecom
$247trillionProjected value of halal products industry in lsquo18
125Muslim percentage of global tourism expenditure
STAT FACTSOlympics in 2018 and are presently seeking investments for this as wellrdquo said Seong-hun Kim a member of Gangwon Province Governmentrsquos Export Support Team
Dubai proved to be an excellent place for the event considering how well the UAE is able to so regularly corral international cooperation A key sign of this was witnessed recently when Luxembourg now considered the third most important base for Islamic finance globally opened a finance office in Dubai International Finance Centre The European nation also opened a euro200 sukuk earlier this year which was quickly oversubscribed
The prime minister of Luxembourg offered the WIEF audience a riveting speech which detailed just how international the Forum has become whilst encouraging more of the world to support the growing influence of Islamic finance
Said Bettel ldquoWe need to innovate more economic partnerships for growth We sometimes need to reengineer relationships but also have to make sure these relationships remain sustainable Growth in one country also brings growth to others as long as this is guided by free market initiatives Free trade and free flow of capital combined with innovation leads to prosperity We have all gathered here in Dubai to explore the future of Islamic finance and Luxembourg is also a pioneer of Islamic finance in Europe The Islamic financial sector has a major role to play in continued global growthrdquo
The Islamic Corporation for the Development of the Private Sector (ICD) is based in the Kingdom of Saudi Arabia where it manages an international fund worth $2 billion half of which is available for subscription With shareholders in more than 50 countries and a sovereign sukuk fund recently launched in West Africa the ICDrsquos CEO Khaled M Al Aboodi attended WIEF this year excited to participate in the global event
How does the ICD approach its attendance at the World Islamic Economic ForumI think the Forum is one of the best places for discussing the financial issues of the OEC member countries It has been around for ten years and has grown to become a very important platform for discussion Wersquore here to attend and listen but also to network Itrsquos a great networking platform and a place to share views whilst letting everyone know what we have to offer
How has Islamic finance changed over the yearsOf course itrsquos growing in a large scale Some of it actually needs more support particularly with respect to regulatory frameworks Wersquore trying to partner with many international organisations like the IMF to try to provide support to countries to adapt regulation for Islamic finance Sukuk issuance is one of the biggest issues that needs to be addressed because there is a huge amount of liquidity in this arena Due to issues related to regulation sukuk issuance can be costly But with the regulation we are confident it will be on a level playing field with other forms of finance Compliance is a major area where more work can be done The Forum started with a roundtable on sukuk which shows how helpful WIEF has been over the years
What type of work does ICD do internationallyICD helped the government of Senegal to issue the first sovereign sukuk This was successfully issued last summer Progressing in this manner is something wersquod like to see continue across West Africa in order to utilise its resources with aiding development in the region in mind
QampA WITH KHALED M AL ABOODI CEO OF ICD
Islamic FinanceMARKET OUTLOOK
OFFICIAL SPONSORS
ENDORSED BY OFFICIAL HOST OFFICIAL
COMMUNICATIONS PARTNER
MEYDAN HOTEL DUBAI UAE19 - 20 NOVEMBER 2014
WOMENOMICSthe next emerging market
TAKE PART in making change happen UNITE with business and through leaders from across the globe
PARTICIPATE to the expansion of a modern and inclusive economy
58
Gautam PradhanINTERVIEW
wwwthecfomecom
SUCCESS BEyOND BOUNDARIES
in other management roles such as strategic decision making mentoring and leading efficiency and productivity across a range of other departments and functions as well as a being a catalyst in ensuring that the boardrsquos vision for the organisation is achieved
A significant percentage of NMDCrsquos shares are owned publicly Does the CFO play a role in balancing the interests of the shareholdersAs a CFO balancing the shareholdersrsquo interests is definitely part of my responsibility In order to achieve this goal there needs to be a careful evaluation of each decision while keeping the short-term and long-term goals of the company in mind At NMDC we actively implement a system where we utilise a balance scorecard as a method of ensuring that all our primary objectives are met yet at the same time continuously enhance our relationships with our shareholders
NMDC has completed various projects across the Emirates Are there plans to move abroadAs NMDC moves towards becoming an international player our strategic expansion plans are focused in areas within the GCC region and India In line with this strategy we opened
How has a company with such a unique set of deliverables grown so consistently over the yearsOur organisation strongly believes that the core to our strength is the people process and equipment A strategic decision led by our Board of Directors and the senior management has been implemented that required us to consistently invest in these three aspects to help expand our business beyond the territorial boundaries of the UAE and at the same time enhance what we can offer which is relevant to these segments We attribute our success to the efforts which every employee contributes We also strongly believe in the ldquoWe can make it happenrdquo principle The management raises the index of performance while setting SMART objectives within the organisation and encouraging the employees to achieve them
How has your position as the CFO changed over NMDCrsquos 35 years of operationAs the market evolves and business dynamics change my role as the CFO has become complex and more challenging A few years back I was mainly focused on bookkeeping accounting and other financial responsibilities such as arranging bank facilities But moving forward I became more involved
The UAE is progressively becoming a hub for world-class infrastructure The country has duly impressed the rest of the globe with noteworthy land developments showcased across the emirates Among the remarkable landscapes found in Abu Dhabi are the Corniche Beach Yas Island and Sir Baniyas Island Behind these successful projects is NMDC the dredging division of Abu Dhabi National Oil Company (ADNOC)
In an interview with CFO Magazine Gautam Pradhan Chief Financial Officer NMDC shares an exclusive look into the companyrsquos international blueprint for growth and his dynamic role as a strategic leader of one of the best in dredging and marine construction in the Middle East
59
Gautam PradhanINTERVIEW
wwwthecfomecom
branches in Qatar Bahrain Oman and India This has paid rich dividends recently as projects of strategic importance are bagged in Qatar and Bahrain Furthermore NMDC (UAE) has recently played a key role as a leader of an international consortium with Royal Boskalis Westminister (Netherlands) and Jan De Nul Group (Belgium) for the awarding of the Suez Canal Dredging project in Egypt Moving forward we have devised a strategic approach that will enable us to play a key role in the development of Indiarsquos marine infrastructure
What are the global strategies that are part of the CFOrsquos responsibilitiesAs CFO understanding the macro economic scenario risk analysis and mitigating those risks are all a part of my responsibilities I also have to have a proper comprehension
ldquoA few years back I was mainly focused on financial responsibilities moving forward I became more involved in strategic decision making mentoring and leading productivityrdquo
Gautam PradhanINTERVIEW
60 wwwthecfomecom
of the challenges faced by the company in terms of dealing with foreign contracts direct and indirect taxes and hedging and managing the integration process These are essential to enhance shareholders wealth and mitigate undue risk
How significant is accountancy for NMDC in its operations Why exactlyAccountancy is the lifeline of any company it does not only record the finances it also reflects the health of the organisation The MIS reports analysis trends and statistical information go a long way toward effectively providing
the diagnostic approach essential for the company
How have NMDCrsquos environmental activities helped the companyrsquos bottom lineNMDCrsquos work is well-synchronised with our environmental activities and specifically with nature Our activities are closely linked to sand and water and we view such activities with strategic importance Projects such as increasing water supply to mangroves and beach nourishment help us support the environmental activities while adding to our bottom line
ldquoAccountancy is the lifeline of any company it does not only record the finances it also reflects the health of the organisationrdquo
A burgeoning slice of Abu Dhabi coastline
The largest business awards
in the GCC30th November Dubai
nominate now at wwwstarsofbusinessawardscom
Stars of Business has become an iconic awards brand like no other in the region It recognizes the very best SMEs across 26 business categories Itrsquos universally respected as scientifically assessed and unimpeachably judged
327000 SMEs across the UAE$234 billion estimated total revenue of the SME sector4974 Awards entries in 20131856 Individual company applicants
Presenting Partner Strategic SME Partner Gold Sponsor Gold Sponsor VIP Hospitality Partner Supporting Partner
Trade Facilitator PartnerTrade Credit PartnerLogistics Partner
Institutional Partner Institutional Partner Event Partner
OrganiserPublisherMedia Partner Media PartnerPort Authority Partner
62
David Allen INTERVIEW
wwwthecfomecom
What went into completing your bestseller ndash Getting Things Done (GTD)After twenty years of researching developing and implementing a methodology for achieving stress-free productivity based upon
thousands of hours spent desk-side with
some of the best brightest and busiest people in the world I decided to write the manual for it Thatrsquos what Getting Things Done is
What are the five phases of mastering workflowIn order to get
any situation under control so
you can focus you will utilise these five
steps Whether yoursquore managing your kitchen
or your company you will need to collect and capture what has your attention clarify what if anything to do about it organise it according to what it means to you review and reflect upon it in relation to
Todayrsquos evolving CFO is often caught between the world of business set-up generating revenue managing employees and building strong company infrastructure When can things actually get done What can one do to boost productivity and master workflow World-renowned business coach David Allen has the answers
PRODUCTIvITy PRINCIPLES WITH
DAvID ALLEN
63
David Allen INTERVIEW
wwwthecfomecom
those are greatly subvertedHow does one maintain a fair balance between the time spent planning and actually getting things doneYou simply need to spend just the amount of time you need to to trust that what you are getting done is the right thing to be getting done in the moment It takes as long as it takes to get to that point Why would you do anything less
How can one apply your core productivity and workflow principles to todayrsquos technologically driven environmentThe principles and their techniques are system-independent Whether you have meaningful input from the Internet your smartphone or a conversation in the hall you must engage with it equally Technology has simply increased the flow of input and ease of distraction in your world
There is a lot of talk about how connected wersquove become and how connectivity is driving tremendous business growth Does connectivity actually come with its fair share of downsides
Connectivity is obviously a two-edged sword We can have intimate productive and creative interaction instantly with someone on the other side of the world and we can just as easily be distracted and seduced into those engagements when they may not be the best use of our attention and resources Donrsquot shoot the medium Itrsquos all simply bringing attention to your clarity of direction and priorities or lack thereof
Could you share a few quick tips with our readers to instantly boost productivityWrite everything down that has your attention Decide the very next actions required to get closure on all of them Any next actions that require less than two minutes do instantly Park reminders of everything else somewhere that yoursquoll see when you can do something about them
We are currently facing a massive information overload What are some basic principles you could suggest to mentally organise such large amounts of dataConstantly ask yourself Where am I going Whatrsquos important and rewarding to me Is this information
the whole and then engage your resources with intuitive trust
As a CFO how can you transfer efficient workflow management skills to your employees Itrsquos very difficult to legislate processes for individuals ndash you can really only hold them accountable for their results But if you are managing your own commitments and intersections with them with integrity and rigour it will automatically force your team to ldquostep up to the platerdquo in their own behaviours in order to meet your standards If you request their complete list of their company projects and they canrsquot produce it thatrsquos a sign theyrsquore not in control If they make a commitment to you that they havenrsquot kept thatrsquos data about their performance GTD is simply about good operational business practices
With so many planning and organising activities in your methodology is there a risk of losing spontaneity as a strategistThe reason for these best practices is to optimise freedom creativity and spontaneity Without them
ldquoBut if you are manag-ing your own com-mitments and intersec-tions with them with integrity and rigour it will automatical-ly force them to ldquostep up to the platerdquo in their own behaviours in order to meet your standardsrdquo
64 wwwthecfomecom
supporting that Park whatever you find potentially meaningful somewhere that is easy to access when needed
Being an entrepreneur is a non-stop job How do you ensure that you have an adequate work-life balance Pay attention to what has your attentionmdashwith regard to anything Your health relationships career finances etc Notice when something might be ldquooffrdquo and make good decisions about what you need to do to get it back ldquoonrdquo again
Does your work teach people to be efficient or effective In essence they are the same thing Effective choices are generated by efficiency on a higher level If you want to implement strategy most effectively it demands utilising your resources optimally which is efficiency
Does motivation actually improve quality of work or purely quantityDepends on the focus of the motivation You can be motivated to work harder and you can be motivated to work smarter
What is your favourite productivity mantra that
you implement in your day-to-day lifeUsing my own in-basket and note-taking devices to capture potentially meaningful and valuable ideas and soon afterwards clearing all of them out by deciding what to do about them if anything
Your books seminars and other work inspires many individuals and businesses Who is your personal inspiration or role model I have many about many different aspects of my life The only person though that I ultimately trust as my best guide is my higher self which I try to access as frequently and clearly as I can
Finally what advice would you give to current business owners and aspiring entrepreneurs looking to gain complete control of their life and businessCapture what has your attention clarify what you need to do about it to get it off your mind organise the inventory of all your commitments at all levels review and reflect on all of that regularly relax and trust your inner wisdom to engage with the most appropriate thing in the moment
ldquoIf you want to implement strategy most effectively it demands utilising your resources optimallyrdquo
David Allen INTERVIEW
APPSTECH TALK
wwwthecfomecom 65
mAxImISE BUSINESS lsquoON-THE-GOrsquo WITH THESE HANDy APPS
ipAd SpECIAL
SAMSUNG UNvEILS GALAxY NOTE EDGE
Network
AP
Display
OS
Camera
Video
Audio
Additional Features
GoogleMobile Services
Connectivity
Sensor
Memory
Dimension
Battery
The availability of service may differ by country All functionality features specifications and other product information provided in this document including but not limited to the benefits design pricing components performance availability and capabilities of the product are subject to change without notice or obligation
Samsung Galaxy Note Edge Product Specifications
25G (GSM GPRS EDGE) 850 900 1800 1900 MHz3G (HSPA + 42Mbps) 850 900 1900 2100 MHz4G (LTE Cat 4 15050Mbps) or 4G(LTE Cat 6 30050Mbps)May differ by country and carrier
27 GHz Quad-Core Processor
56 inch (1419mm) Quad HD+ Super AMOLED (2560 x 1440 + 160)
Android 44 (KitKat)
Rear Facing 16 Mega pixel Auto Focus camera with Smart OISFront Facing 37 Mega pixel camera with f19Rear Facing Camera HDR (Rich tone) Selective Focus Rear-cam Selfie Beauty face Virtual Tour Shot ShotampMore Dual CameraFront Facing Camera Selfie Wide Selfie
Codec H264 MPEG-4 H263 VC-1 WMV7 WMV8 Sorenson Spark MP43 VP8 Recording amp Playback up to UHD
Codec MP3 AACAAC+eAAC+ WMA AMR-NBWB Vorbis FLAC()() Ultra High Quality Audio (~192KHz 24 bit) support
Multi WindowUltra Power Saving ModeVoice Recorder (Normal Mode Interview Mode Meeting Mode Voice Memo)Download BoosterS Health 35Dynamic Lock ScreenBriefingEdge screen UX Revolving Interaction Immersive apps(Camera Video S Note)Ticker board Express me Quick Tools Night Clock etc
Chrome Drive Photos Gmail Google Google+ Google Settings Hangouts Maps Play Books Play Games Play Newsstand Play Movie amp TV Play Music Play Store Voice Search YouTube
WiFi 80211 abgnac (HT80) MIMO PCIeGPS GLONASS BeidouNFC Bluetoothreg v 41 (BLE ANT+)IR LED (Remote Control) USB20 MHL 30
Gesture Accelerometer Geo-magnetic Gyroscope RGB IR-LEDProximity Barometer Hall Sensor Finger Scanner UV Heart Rate Monitoring SpO2 (Dependent on market)
32 64 GB Internal memory + microSD slot (up to 128GB)3GB RAM
1513 x 824 x 83mm 174g
Standard battery Li-ion 3000 mAh Fast Charging (Adaptive Fast Charging amp QC20)
wwwthecfomecom66
APPSTECH TALK
AIR DISPLAY
SQUARE REGISTER
Using this app you can connect your iPad to your computer and use it as an additional screen While working on an important presentation or sales proposal you can extend or mirror your computer screen on your iPad This app is compatible with both Mac and Windows computers Note that to use this feature you have to install Air Display on your iPad and a separate free app on your computer The computer and iPad also need to be on the same Wi-Fi network in order to work in-sync
For Mac users the app allows you to connect to up to four screens ndash all at the same time
Apart from the ability to convert your iPad into a wireless display whatrsquos also attractive about this app is that it allows you to control your computer wirelessly using your iPad
This fantastic application can serve as a mobile point of sale for your business It allows you to accept credit card payments ndash including Visa MasterCard Discover and American Express A transaction fee of 275 is charged for every time you swipe a card The sale amount is transferred to your account within two working days
Once you download the app you can sign up and register for a unique card reader solution called the lsquoSquare Readerrsquo (this is free) Square Reader encrypts all card details and ensures that the transaction is secure Once you receive your Square Reader you can connect it to your device and are all set
The application also offers added features such as transaction history connecting to a receipt printer creating employee logins and more
AED 3699
PRICE
Free
PRICE
wwwthecfomecom 67
APPSTECH TALK
DOCUSIGNHave you ever been in a situation where your employees need you to urgently sign a contract but arenrsquot able to physically reach you in time DocuSign solves this problem with its easy-to-use eSignature feature In three easy steps you can sign important documents and securely send them to your intended recipient
First you have to import the document to your device ndash this could be from Dropbox Google Drive or another select applications You then place your signature or any other important legal information you need to include such as initials Once you have finished working on the document send it back via e-mail
Whatrsquos particularly great about DocuSign is the great emphasis it puts on security ndash so that users donrsquot have to worry about getting into any legal trouble
Use DocuSign and never miss a deadline again
Free for basic version
PRICE
MPAYAn initiative by the Dubai eGovernment Department mPay is a simple application that allows you to make important payments Once yoursquove signed up and entered your payment details you are good to go You can pay your Dubai Electricity and Water Authority (DEWA) bills Etisalat utility bills Dubai Police fines Recharge SALIK and much more
A handy feature is its lsquoauto-rechargersquo option which you can use to set automatic payments
Free
PRICE
Opinion CIMAPERSONALITIES
wwwthecfomecom68
NEW HORIZONSBy geetu Ahuja Head of gCC at CIMA
The days of the traditional accountant working within a small community in a small town in a small market have long gone CFOs are now being referred to as Chief Frontier Officers as they travel from market to market overseeing their offices overseas This new expanded role has distinct advantages for both the company and the CFO who gain new skills and new insights from foreign branches a single hand at the helm of many markets provides business perspectives on a global scale and benchmarks across the board
On a personal level working abroad also has huge importance Robert Walters the specialist professional recruitment consultancy recently conducted a survey
of almost 2200 employees across a variety of professions exploring a number of topics which ranged from working practices and attitudes to careers The results highlighted some notable trends particularly for finance professionals
In career progression for example the survey showed that 50 of all accountants see working abroad as either lsquoessentialrsquo or lsquoextremely usefulrsquo to furthering their prospects more than banking professionals lawyers and IT workers ndash a strong indication of how accounting professionals are thinking about their future either within their existing company or with opportunities elsewhere
Accountants with globally recognised qualifications obviously have a greater chance of gaining some experience abroad and the lsquoGen Yrsquo professionals in particular seem ready to pack their bags In a CIMA study conducted in the UK last year over a third of those seeking employment in the
next two years will prioritise opportunities abroad over those in their home countries many of them enticed by the career incentives offered by the Middle East
How quickly can they land what seems to be their dream job What are the realities It may be that the move is simply from one branch to another and the only significant difference is a view from the window but for those expanding rather than changing their roles we have seen a very real need for a depth and breadth of knowledge never needed before
As geographical boundaries are pushed ever-wider a CFOrsquos responsibilities are pushed with them For many finance executives the understanding of their own patch of land is no longer enough they now have to be aware of foreign markets up to speed with foreign trends and au fait with foreign laws There is a need for a new commercial awareness in geography as well as philosophy
As geographical boundaries are pushed ever-wider a CFOrsquos responsibilities are pushed with them
John vargheseQampA
wwwthecfomecom 69
BUSINESSSET UP YOUR
IN THE UNITED ARAB EMIRATES
TO
WAREHOUSESOFFICES INDUSTRIAL LANDFLEXI
Quick and easy company set-up
Less than an hour drive from Dubai
Complete cost-effective packages including licences and facilities
100 foreign ownership
Zero income and corporate taxes
Eligibility for UAE Residence Visa
BUSINESS SET-UP SOLUTIONS STARTING FROM AED 15000 (USD 4000)
RAK FREE TRADE ZONE PROVIDES
RAK Free Trade Zone Authority - Government of Ras Al KhaimahUAE (Ras Al Khaimah) Tel +971 7 2041111 (Dubai) Tel +971 4 7041875 (Abu Dhabi) Tel +971 2 6994888
Germany (Cologne) - Turkey (Istanbul) - India (Mumbai)
Call +971 7 204 1111 Visit wwwrakftzcom Join rakftz
35
CIMAINTERVIEW
wwwthecfomecom
can give CFOs something they can take and something they can measure their own management accounting services against They can benchmark using this and they can utilise this to see their progress
Part of that is having professional management accountant in place I donrsquot think the landscape matters I believe that there is a common business need wherever you may be around the globe
All of the emerging markets need these skills The first aspect that accounting schools teach is about auditing skills because theyrsquore interested in protecting investments Then they teach you how to keep your business sustainable and to have a sustainable business you need to have a management accountant in place So itrsquos not just here in the UAE where we see these demands we see the same demands in China Indonesia and other powerhouse economies We see their skills shortages and we see the need for solutions in those areas
Talk to me about how this new syllabus works to promote the evolution of a CFOThis syllabus that wersquove
Can you expound on just what can be found within the new CIMA syllabusWe just revised the syllabus we do that every four to five years What we have done this year is a very significant revision It is based from a complex study that we have carried out to over 3000 people from 200 companies globally It is the very first revision since the joint venture with CIMA and AICPA So this has allowed us to attain a syllabus rich with all the data from all the continents in the world For the first time wersquove had real involvement from companies in the USA in this project
Why is the collaboration between AICPA and CIMA significantMost important is the Chartered Global Management Accountant (CGMA) designation that AICPA and CIMA both issue for qualified management accountants Wersquoll have a common curriculum and common examination which will begin on January 1 which gives us a global designation for management accountants wherever they are around the world There are plenty of accounting bodies who claim to be global but actually this is the only
genuinely global designation This is because it has the only one with a North American participation in it So we can say that the CGMA will be just as well-recognised in the USA as it is in Dubai
With the global landscape in mind how do you create an even objective that applies to localities which may prove widely differentialThe landscapes are different but businesses have common needs wherever they may be What wersquove particularly seen since the global financial crisis is that companies are actively looking to build management accountant capability to build that capacity within their organisations They donrsquot want to have a poor quality of information that lacks insight being used in their businesses So they see management accountants can bring solutions to that As a result of all the work wersquove done with companies who participated in the syllabus wersquove also put together a series of what we call Global Accounting Principles This is a series of principles which describes what good management accounting looks like and what top quality management accounting in a company should be producing This then
ldquoCompanies are actively looking to build man-agement accountant capability to build that capacity within their organisa-tionsrdquo
36 wwwthecfomecom
worked on acknowledges the skill set needed by professionals throughout their career Therersquos a base level of competence that is needed but beyond that there is more There is business acumen the ability to communicate and influence and finally the ability to lead So you start off enhancing your raw technical accounting skills Then you need to place that into the context of the business that you are in Then as you move forward and as you rise to become the CFO yoursquoll need the others You have to learn how to present your work in a way that can influence and make an impact in the business The final piece is the ability to lead projects and other functions and to a great extent lead the board of directors Thatrsquos how the context works itrsquos not just about technical knowledge
How do you find that CFOs in the GCC region are responding to this programmeThe CFO has a real challenge on his hands now In 1975 80 per cent of corporate value is showing on the balance sheet By 2010 that dropped to less than 20 per cent Your traditional PampL reports no longer reflect the value of the business or how the business drives value
All things that should be of interest to investors is missing With things like the integrated report initiative wersquore starting to see the other dimensions that add value to business For CFOs thatrsquos all about strategic thinking and considering the long-term objectives Being articulate in implementing those strategies keeping in mind the risks and opportunities that the business faces We are also nowadays witnessing a whole new world of transparency around that
Are there electronic aspects to CIMArsquos advancing approachThe interactive case study simulates a real working situation and it tests how they can apply their knowledge in real life situations Theyrsquoll be presented with a scenario a few weeks before they take the exam so they can prepare for it They then go to an exam centre where they are asked questions about how they will deal with a certain situation in the real world Theyrsquoll get an email from the CFO giving them a certain task for a particular period of time We want to make it as close to reality as possible so students taking the exam will be assessing situations based on real life scenarios
ldquoThe CFO has a real challenge on his hands now as traditional PampL reports no longer reflect the value of the businessand [the role] must focus on strategic thinking and considering long-term objectivesrdquo
218KCIMA members worldwide
STAT FACTS
CIMA INTERVIEW
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
38
ERPANALyTICS
wwwthecfomecom
Faster more nuanced IT solutions are available to the modern day CFO Whilst Chief Financial Officers are called upon to analyse data across a number of spectrums the digital tools on hand are likewise being expanded to aid in focusing more squarely on the bottom line
ExCELLING WITH ERP
The global landscape is today firmly entrenched within a digital model As a result CFOs whom are called upon to take a larger role in a number of variables must also increase their abilities with respect to utilising the many upsides which tech innovations offer a business When surveyed about their most pressing concerns CFOs generally return a varying collection of responses Revenue growth regulatory changes and meeting quarterly goals are among the chief concerns Virtually every obstacle can be hurdled by way of maintaining the order of financial reporting and data which has long been
synonymous with the Chief Financial Officerrsquos remit A widening berth of ERP solutions is making this data all the easier to come by
Despite how sophisticated the market is today it was not long ago that ERP departments once spent days processing business reports
Said Rohan Tejura Assistant Vice President Focus Softnet ldquoTraditional ERP systems were solely data repositories Moreover these repositories werenrsquot real time and were incredibly dependent upon locational connectivity With the emergence of smarter development platforms more versatile devices and
39
ERPANALyTICS
wwwthecfomecom
more intuitive designs of system development the overall experience of the ERP now extends from data warehousing to reporting analysis trend mapping business intelligence and governance oriented capabilities Yet these solutions amazingly execute all of these deliverables via portable handheld devices and through cloud environmentsrdquo
New generation ERP systems must now be on the go whilst including up to the minute analytics to provide deeper insight into the business ERP Analytics tools use historical data captured from various business functions to provide valuable information for efficiency and business performance each incredibly priceless to a leading CFO
Finesse is an ERP provider which is continually addressing the transformation of output which the ERP industry is offering the equally transitioning role of CFO
ldquoWe provide end-to-end business management solutions to SMEs and Enterprises Our approach to ERP is much more than providing simply an operational management systemrdquo said Finesse COO Sunil Paul
ldquoWe believe that todayrsquos businesses need much more than integrating sales with inventory accounting and manufacturing but also to have seamless integration with all their sales channels including the point of sales ecommerce and inbound sales solutionsrdquo
A major im-petus of the ERP-cen-tered growth is based on how effec-tive com-prehensive real-time data proves to be for the CFO
40 wwwthecfomecom
before thereby creating new global benchmarks for overall economic growth
Microsoft Arabia CFO Sadrul Khan offered insight into just how far the knowledge economy has influenced regional financial leadership by explaining how one of the most prioritised technologies by CFOs in the region is social platform monitoring
ldquoOne of the five technology choices that CFOs tend to prioritise in boosting productivity efficiencies and faster decision making in the fast paced business environment which include a social platform that monitors trends customer sentiments and helps process mashable data for customer centricity and business growthrdquo said Khan
A major impetus of the ERP-centered growth is based on how effective comprehensive real-time data proves to be for the CFO Whether employed as on-premise ERP software-as-a-service or cloud-based solutions a nearly identical ethos is being utilised Allowing the CFO to quickly access the performance of all facets of a business is paying dividends in the boardroom a reality which is showing itself increasingly in the Middle East
The technologically-charged relationship between ERP solutions and the regionrsquos CFOs is expanding and as a result has catalysed what many see as GCC economic performance outstripping that of many economies outside of the region as a result
In order to compete in todayrsquos fiercely competitive environment organisations need to think both innovatively and out of the box They require more insights about their business and their customers and need to ensure that they are able to meet the expectations of their internal as well as external stakeholders Enormous amounts of data both structured and unstructured is continuously being generated within the internal and external systems of the organisation which if analysed can be of immense value both to the business and subsequently the stakeholders associated with the organisation
With the the era of CFOs labouring over spreadsheets now in the past given how many business frontiers have become so dependent on mobile options such as the cloud more and more tech companies are providing the regionrsquos CFOs with information technology that converts traditional internal and external data into rich visual insights This information is then used for faster decision making and provides the ability for a CFO to assess manage and control risks Regional CFOs have grown enabled to drive corporate strategy accordingly demonstrating how the knowledge economy is now in full force amongst the Gulfrsquos corporates
Given that advanced IT has now become a regular CFO tool the regionrsquos CFOs are subsequently making faster decisions and driving internal growth models with greater speed and agility than ever
Tech companies are providing the regionrsquos CFOs with information technology that converts traditional internal and external data into rich visual insights
ERPANALyTICS
Donrsquot discoveritrsquos counterfeittoner afteritrsquos too lateOriginal HP Toner works first time every time1 unlike cheap toners which fail over half of the people who try it2 Non-HP toner can compromise your printerrsquos performance to give you streaked blotchy or faded prints Only original HP Toner cartridges deliver unmatched quality for the most professional-looking prints 100 of the time1
1 A QualityLogic 2010 study commissioned by HP comparing original HP LaserJet Monochrome print cartridges with nine brands of non-HP toner cartridges available in Europe Middle East and Africa for the HP LaserJet P1505 and P4015 printers HP 36A and 64A For details see wwwqualitylogiccomEMEAmonotonertestpdf 2 From a 2012 EMEA Lyra Research study commissioned by HP Results based on a total of 1050 HP Color LaserJet users who have used both original HP and non-HP toner cartridges of whom 552 experienced problems with non-HP cartridges
copy 2014 Hewlett-Packard Development Company LP
42
Private Equity ANALyTICS
wwwthecfomecom
The rise of PE-backed acquisitions is forcing CFOs to develop an entirely new set of skills
THE PRIvATE EQUITy CFO
The CFOrsquos utility in the world of private equity is without question on the rise The once-held belief of the CFO existing solely as the ldquoaccounting guyrdquo has been abandoned Over the last 20 years the role of CFO has become more demanding - requiring not just finance and accounting acumen but also a financial literacy in corporate planning risk management MampA assetliability management and regulation This evolution has been driven by a number of
key factors Yet the private equity industry which is now reshaping the corporate landscape through active ownership is by far the most significant factor driving change within the role of the CFO
PE-backed buyers today represent a larger percentage of overall buyers in the corporate acquisition marketplace than ever before Data provider Prequin estimates that as of June 2014 the capital raised by PE funds that
has not yet been deployed amounts to $114 trillion globally The result of this ldquodry powderrdquo is that a vast quantity of corporate acquisitions in the coming years will be undertaken by the private equity industry As such CFOs will be more accountable to demanding ldquosmart moneyrdquo shareholders than at any point in recent history Budgeting accounting and financial reporting will no longer exist as sole priorities but as a core competency among a
ldquoBy effec-tively using real-time data CFOs can create a dynamic process that proac-tively drives performance account-ability and value crea-tionrdquo
By Aaron Heidari
43
Private Equity ANALyTICS
wwwthecfomecom
robust set of complimentary and required skills Most of all the bar for CFOs is rising as PE investors will only accept above-average performance from their management teams
CFOs were once more reactive in function setting budgets based on other executivesrsquo plans and managing the flow of reporting to shareholders on a quarterly and yearly basis Today CFOs are required to become proactive managers of their respective businesses alongside their C-suite compatriots using a granular data-driven approach to aggregate analyse implement and report on every aspect of a companyrsquos operations
An important tool to drive this value creation process are KPIs Yet KPI structures including both aggregation and output are generally not up to the standards required of private equity investors prior to an investment being made
ldquoThe benefits of using KPIs and monthly reporting packages are significant By effectively using real-time data that is actionable and by partnering with functional area leaders within the organisation company CFOs can create a dynamic process that proactively drives performance accountability and value creationrdquo said Amanda Robinson Vice President of Accordion International in Dubai a consulting firm which is comprised of former private equity and investment banking professionals who
MENA region Cumulative Funds Under Management Since 2008
Source Zawya private Equity Monitor
19 636 20 36321 586
22 64323 506 24 250
-
5000
10000
15000
20000
25000
2008 2009 2010 2011 2012 2013
Cu
mu
lati
ve f
un
ds
($ m
)
$15mAverage MENA PE investment size in lsquo13
50Percentage of investment in IT and energy sectors
STAT FACTS
44 wwwthecfomecom
work with companies to deliver cost-effective project execution services
Active shareholders whose money it is being spent will typically require a data-driven justification before approving any budgets capital expenditures or new acquisitions Furthermore in many private equity backed companies the use of debt and the matching of shorter-term bank financing with longer-term investments will only be considered after a robust analysis is conducted to understand the companyrsquos ability to service that debt in the future This evaluation is not simply to identify revenues expenses and profits Itrsquos about drilling down into every transaction and rooting out data processing and reporting At least that is the expectation
The most valuable CFOs are those who have the ability not just to scrutinise and understand the financials but all also possess a wider grasp of the underlying data which truly comprise the business As an investor who has just acquired a stake in a new business I want a CFO who can manage the transition and stay ahead of my expectations Most of all a CFO should impress upon the companyrsquos shareholders a new way of doing business The first 100 days of an acquisition are said to be the most important During this period the CFOrsquos worth will be established when the new financial plan is due and the platform for the next five years of growth is presented
A CFO should man-age the tran-sition stay ahead of expectations and impress upon the companyrsquos shareholders a new way of doing business
Investment Volume By Sector Since 2006
Investment Volume By Sector in 2013
Source Zawya private Equity Monitor
1
3
30
17
3
28
3
4
6
4
6
5
17
9
9
6
9
5
8
6
6
2
3
10
Education
Education
Information Technology
Information Technology
Other
Other
Telecoms
Telecoms
Media
Media
Transport
Transport
Oil amp Gas
Oil amp Gas
Healthcare
Healthcare
Consumer goods
Consumer goods
Food amp Beverages
Food amp Beverages
Leisure
Leisure
Manufacturing
Manufacturing
ANALyTICS
Private Equity
2000857 NBAD ratibi mag ad 200x268 Finalindd 1 92514 1017 AM
46 wwwthecfomecom
THE FUTURE OFACCOUNTING EDUCATIONAddRESSINg THECOMpETENCY CRISIS
Have you ever stopped to think about how the accounting profession has changed since you graduated from college Recent graduates can answer this question by reflecting on the last two or three years whereas for other more seasoned professionals answering this question requires a bit more thought and memory searching Indeed we can all think of ways that the field of accounting is remarkably different today from the one we likely envisioned during our college daysmdashregardless of which decade we each donned our cap and gown This gradual transformation of the accounting profession leads to two important questions related to competencies bull Which competencies are important for success inaccounting todaybull Were these competencies consciously developed as partof your accounting degree programme
We suspect that more than a few of you would answer ldquonordquo to the second question Put another way our profession may be facingmdashmore so than at any time in the pastmdasha ldquocompetency crisisrdquo that is a gap between the competencies needed for professional success and those taught in our college classrooms today We propose a three-pronged strategy or ldquogame planrdquo for overcoming this competency crisis and in turn better preparing accounting graduates for the challenging world they will face First all of us accountants need to understand the changes that have already taken place in our profession and perhaps more importantly anticipate the changes that are on the horizon Second we need to educate ourselves and future generations of accountants so that as a collective group we can deliver the expanding set of competencies demanded in todayrsquos dynamic organisational
contexts Third as professional organisations and as individuals we need to think beyond ourselves by asking How can I (or we) help the accounting profession address the competency crisis
A Shift Toward Integrated ThinkingMany articles and white papers have been written that describe in detail the changes that have occurred in our profession over the last few decades but for our purposes wersquod like to distill these changes down to one crucial idea How does the accounting function add value to an organisation Accountants have evolved from support-oriented personnel who hand off information to others who actually make decisions into business partners who ldquohave a seat at the tablerdquo with managers
By peter C Brewer James E Sorensen CpA CgMA and david E Stout
47wwwthecfomecom
1048576bull What regulatory risks mayaccompany the proposal
1048576bull What social and environmentalfactors will we face if for example the proposal requires investing in overseas operations
1048576bull What types of employeeresistance may arise if we implement the proposal and how will we overcome the root causes of any such resistance
1048576bull Can and how should we valuefuture options associated with the proposal such as expanding or contracting the investment over time as new information becomes available
1048576bull Should we use debt or equity tofund the proposal
In short accountants have evolved to become integrated thinkers who enable EPM by partnering with managers across the organisation to add value Yet as EPM has gradually become the centrepiece of our professionrsquos value proposition accounting education hasnrsquot done enough to embrace it To overcome this gap wersquod like to further suggest that the concepts of competency integration and EPM need to come ldquofront and centrerdquo as we move forward in educating the next generation of successful accounting practitioners
Accounting Education No Longer on the SidelinesRecently a task force consisting of members of IMAreg (Institute of Management Accountants) and members of the Management Accounting Section (MAS) of the American Accounting Association (AAA) addressed the competency issue How should accounting education change fundamentally to help close the competencies gap The efforts of the task force led to
cash flows and how to apply discounted cash flow (DCF) decision models such as net present value (NPV) is of foundationalmdashsome might say critical mdash importance But integrated thinkers draw on an understanding of organisational strategy coupled with a broader set of competencies (beyond what might be considered technical or foundational knowledge) when making these types of decisions For example they consider how behavioural issues may influence the capital investment decision-making process Perhaps the financial estimates contained in the NPV analysis are too optimistic because the manager who prepared the numbers has a vested interest in seeing the project approved Decision makers also need to consider issues such as leasing vs buying a capital asset and the corresponding impacts on the financial statements and ratios that are tracked by investors and lenders What nonfinancial factors are associated with the proposed investment Add in the tax consequences of capital investment decisions coupled with the need to maintain internal control over any new business processes tied to these decisions and the need to think in an integrated fashion across a variety of accounting competencies becomes apparent
Furthermore becoming a true business partner with managers across the organisation requires more than simply integrating various accounting competencies It also means thinking like a business manager or a chief executive officer (CEO) Returning to the capital budgeting example an integrated thinker will ask questions such as
across the organisation Together they formulate and plan strategies then participate in collaborative decision-making processes that execute those strategies in a manner that adds stakeholder value Said another way accountants have evolved to become enterprise performance managers This shift in our orientation from a support function to an enterprise performance management (EPM) role has enormous implications for defining the determinants of success within our profession the most important of which involves becoming collaborators and ldquointegrated thinkersrdquo Take for example a common but important business decision process capital investment analysis Certainly technical knowledge regarding how to estimate relevant after-tax
48 wwwthecfomecom
expanding capital budgeting discussions to include financial statement impacts tax consequences and internal control issues integrates topical coverage across the External Reporting and Analysis Taxation Compliance and Planning and Assurance and Internal Control competencies shown in Figure 1
Third accounting curricula can incorporate a broader set of management competencies For example evaluating capital investment proposals from the perspectives of change management (Leadership) social and environmental issues (Ethics and Social Responsibility) regulatory concerns (Governance Risk and Compliance) and capital structure (Additional Core Business Competencies) brings a CEOrsquos perspective to the decision-making process
Fourth accounting curricula should include foundational competencies such as proficiency with spreadsheets and written and oral communication In the context of capital budgeting this may include asking students to use Microsoft Excel to perform a sensitivity analysis and then to present their findings to the entire class
Working to Fix the ProblemAt this point although you may agree with us that therersquos a competency crisis within the accounting profession you may be wondering What does this have to do with me What can my organisation do to help address this so-called competency crisis The answer a lot Practice partners and academic partners can help the accounting profession overcome the competency crisis That said letrsquos take a closer look at the role of practice partners first
improvement) and accounting competencies (external reporting and analysis planning analysis and control taxation compliance and planning information systems assurance and internal control and professional values ethics and attitudes) Of critical importance to the framework is the assumption that the set of competencies contained in Figure 1 would be developed and integrated over time through a blend of formal education (including continuing education) training and job experience
What levels of integrationmdashon the road to developing integrated thinkers in accountingmdashare possible First accounting educators can integrate within a single accounting competency So referring back to our capital budgeting discussion teaching computational models such as NPV analysis coupled with a review of various behavioural issues associated with capital investment decisions would be an example of integrating within the Planning Analysis and Control competency listed in Figure 1
Second professors can integrate across accounting competencies For example
a recently published article that contains a proposed framework for accounting education reproduced here as Figure 1 The framework is general in the sense that itrsquos meant to apply to all accounting students not subgroups based on career specialisation such as tax assurance services corporate finance and the like Itrsquos based on the idea that accounting educators can better prepare students to deliver our professionrsquos EPM value proposition through integrated competency-oriented curricula (For more see ldquoFocusing Accounting Curricula on Studentsrsquo Long-Run Careers Recommendations for an Integrated Competency-Based Framework for Accounting Educationrdquo in the May 2014 edition of Issues in Accounting Education)
A glance at Figure 1 reveals three levels of competencies foundational competencies (communication ability to leverage technology and analytical thinking and problem solving among others) broad management competencies (including leadership ethics and social responsibility and process management and
Proposed Competencies-based Framework for Accounting Education
FOUNDATIONALCOMPETENCIES
ACCOUNTING COMPETENCIES
BROAD MANAGEMENT COMPETENCIES
leadership
ExternalReportingamp Analysis
PlanningAnalysis
amp Control
TaxationComplianceamp Planning
InformationSystems
Assuranceamp InternalControl
ProfessionalValues Ethics
amp Attitudes
Communication
Quantitative
Interpersonal
Technological
Analytical Thinking ampProblem Solving
Ethics amp SocialResponsibility
ProcessManagement ampImprovement
GovernanceRisk amp
Compliance
AdditionalCore BusinessCompetencies
Although you may agree with us that therersquos a competency crisis within the account-ing profes-sion you may bewondering What does this haveto do with me
A practice partner should be or become a CMAreg (Certified Management Accountant) maintain professional certification by completing required Continuing Professional Education (CPE) hours and regularly read the IMA publications Strategic Finance and Management Accounting Quarterly
In addition there are a number of excellent resources that deal with topics covered in this article and that IMA makes available to its members
Strategic Finance PowerPacks(wwwimanetorg SFPowerPacks) These are resources focused on contemporary topics similar to those discussed earlier Current offerings include Risk Management Strategic Planning IT Skills amp Software and Internal Controls Each PowerPack includes a combination of resources such as research studies articles and links to webinars
Statements on Management Accounting (SMAs)(wwwimanetorgresources and_publicationsresearch_ studies_resourcesstatements on_management_accounting aspx) SMAs represent monographs classified into one of the following six categories Leadership Strategies and Ethics Technology Enablement Strategic Cost Management Business Performance Management Finance Governance Risk and Compliance and the Practice of Management Accounting Multiple items are available within each category For example the Practice of Management Accounting category includes (among other items)
49wwwthecfomecom
the Definition of Management Accounting and Implementing Shared Service Centres
Research Studies (wwwimanetorgresources_and_publicationsResearch_Studies_and_ResourcesAll_reportsaspx) The ldquoThoughtLeadershiprdquo section of IMArsquos website includes research covering a broad range of issues classified into seven categories For example under the ldquoGlobal Business Environmentrdquo category the following two research reports are available ldquoKey Differences Between IFRS and US GAAP Impact on Financial Reportingrdquo and ldquoCosting Methodologies and Cost Management Practices in the Peoplersquos Republic of Chinardquo
IMA Leadership Academy (www imanetorgprograms_events leadership_academyaspx) As described on the IMA website this programme is designed to assess a memberrsquos leadership status enhance that individualrsquos skills (principally through monthly webinars) and recognise leadership achievements These benefits are free to members
How You Can Make a Bigger Impact In addition to attending local regional and national IMA meetings consider inviting a small group of students to each chapter meeting This could be a wonderful (and relatively low-cost) option for mentoring aspiring accountants and finance professionals providing networking opportunities and introducing students to cutting-edge issues regarding the practice of management accounting Joining a university accounting
advisory group may be another way to influence the development of EPM in that institutionrsquos curriculum design
Other methods to enhance EPM in your organisation include (1) forming user groups within your company your local IMA chapter or your industry to review and share EPM experiences (2) encouraging advancement in the firm to be linked to EPM proficiency (3) focusing your companyrsquos recruiting efforts on candidates who display a background in andor understanding of EPM and (4) organising cross training within your company to enhance a mutual understanding of each otherrsquos respective roles
Finally visit the Competency CrisisTM website (http competencycrisisorg) set up by IMA to unite the accounting and finance constituencies professionals students employers academics and professorsmdashand explore competency issues through the lens of each stakeholder group The site is designed to ldquoencourage a discourse spur action and create a community dedicated to resolving the serious crisis of competency present in the professionrdquo Special sections of the website are devoted to educators students and employers professionals
Our Partners in Education Much like a practice partner an academic partner should be or become a CMA maintain professional accreditation by completing CPE hours and regularly read IMArsquos publications
Academic members of IMA can pursue and actively promote the CMA programme at their respective institutions
50 wwwthecfomecom
IMArsquos website contains helpful resources including an exam content overview content specification outlines for each of the two parts of the CMA exam and learning outcome statements The current exam covers some of the professional competencies represented in Figure 1 A summary of changes to exam content which will be effective in January 2015 is provided on the IMA website in News amp Media Relations which is located under ldquoAbout IMArdquo (See the press release dated March 24 2014) Other helpful resources include ldquoICMA Announces CMA Exam Content Changesrdquo in the April 2014 issue of Strategic Finance as well as ldquoManagement Accounting Career Readiness Shaping YOUR Curriculumrdquo
These forthcoming changes are based on the most recent IMA study of the knowledge and skills needed by management accountants from the view of CFOs controllers and other accountingfinance professionals from around the world
Also consider taking a group of your students to the IMA Student Leadership Conference held each November The Conference provides excellent networking opportunities for you your students and practicing professionals Students can learn firsthand from Conference presenters the challenges and opportunities facing finance and accounting professionals today
Moreover if your institution doesnrsquot currently have an IMA Student Chapter consider forming one One of the authors of this article David Stout reinstituted the student chapter at his school (Youngstown State University) after travelling with a group of his students to the IMA
Student Leadership Conference in Cleveland Ohio Through an IMA Student Chapter on campus students are able to work closely with a sponsoring local IMA chapter and bring to campus speakers who are experts in a wide range of topics including those discussed earlier in this article Each year student chapters compete for an Award of Excellence (AOE) and recognition as an Outstanding Student Chapter In addition IMA student members are able to engage in networking activities leadership training mentoring and community service programmesmdashall through their local chapter
You also might consider volunteering to serve as a Campus Advocate In this role yoursquoll represent IMA in all major matters of interest to your students (scholarship opportunities starting a student chapter mentoring and the like) and to your institution (for example leveraging IMA resources to advance the relevancy of the accounting curriculum use of educational case studies published in the IMA Educational Case Journal and access to IMArsquos ethics curriculum)
And if you havenrsquot yet done this ask IMA to endorse your accounting programme (information is available at www imanetorgeducator_resources indexaspx) This programme is designed to identify business curricula that meet the quality educational standards required to prepare students to earn the CMA designation Endorsement is based on an analysis of the curriculum and topics covered on the two-part CMA exam Currently 12 programmes have been endorsed
Finally if your school has an IMA Student Chapter consider participating in the annual IMA Student Case Competition where students are asked to propose a solution to a real world problem (Cases are solicited each year by Raef Lawson IMA VP of Research and Policy and IMA Professor in-Residence) Finalists make their presentations at IMArsquos Annual Conference amp Exposition before a set of judges consisting of accounting faculty members and practitioners Each year a new case is published in the August issue of Strategic Finance for students to use for that yearrsquos competition
Working TogetherIn this article we have summarised the changes that have affected the accounting profession and provided a competencies-based framework for guiding accounting educators in responding productively to those changes As a management accountant you know that implementing change in any organisation let alone within an entire profession never comes easily To be successful in overcoming our professionrsquos competency crisis IMArsquos practice and academic partners will need to assume leadership roles in defining enterprise performance management as the cornerstone of the accounting professionrsquos value proposition
This article was orginally published in the August 2014 issue of Strategic Finance It appears here with the permission of The Association of Accountants and financial professionals in Business
We need to educate ourselvesand future generations of account-ants so that as a collec-tive group we can deliver theexpanding set of com-petenciesdemanded in todayrsquos dynamicorgani-sational contexts
THE POWERFUL AND THRIFTY OFFICE ALL-ROUNDERS
The new ECOSYS M3560idn series will astound you With their print speeds of up to 60 pages per minute they are among the most productive A4 bw multifunctionals on the market We nevertheless managed to keep their ecological footprint and total cost of ownership impressively low by using our well-known ECOSYS technology and equipping the devices with our renowned long-life components The result Not only less waste and lower maintenance costs but also less hassle for you and all your colleagues You will also greatly appreciate the many customisation possibilities of the devices equipped with KYOCERArsquos open solution platform HyPAStrade as it allows you to tailor the device to your needs So yes we are proud of our new range of MFPs and can hardly wait to share their numerous benefits with you
For more information please contactKYOCERA Document Solutions Middle East | PB Box 500817 DubaiUAE | Tel +9714 4330 412 | Fax +9714 4231 944KYOCERA Document Solutions Europe BV - wwwkyoceradocumentsolutionseuKYOCERA Document Solutions Inc - wwwkyoceradocumentsolutionscom
52
ACCAINTERVIEW
wwwthecfomecom
GLOBAL By ASSOCIATION
across the region from our key employers and learning provider partners to our active and growing student and member base I want to understand their challenges and priorities and how ACCA can work with them to help support the economic success of the region
What can a CFO gain from working with ACCAThe ACCA qualification is about complete finance professionals For CFOs it brings the technical knowledge vital to business success complemented with the strategic management skills and ethical competence crucial to an organisationrsquos success As an organization ACCA in the UAE brings CFOs access to that local and global network of peers and expertise along with our leading research and insights that help them to keep up to date on the issues that matter most
Are there any initiatives in place to leverage the recently announced partnership with AAA
How are the ACCArsquos many years of activity being applied to the Middle EastACCA has now had a presence in the UAE for well over a decade During that time we have established strong relationships across the Middle East epitomised by the recent signing of our Strategic Partnership with AAA As a national body in choosing to partner with ACCA they recognised the local and global perspective we bring We are continuing to work with students members and employers across the Middle East to build their networks knowledge and business success through events research and insights and access to a growing number of online resources
Which initial priorities are among your key aims upon joining the organisationrsquos efforts in the UAEIn the first few months I hope to build on the success of the team in the UAE My priority will be to meet as many of our key stakeholders
The Association for Chartered Certified Accountants (ACCA) provides its services across a number of international borders The recent announcement of Lindsay Degouve de Nuncques as the new head of the Associationrsquos UAE chapter further exemplifies the ACCArsquos reach based on her previous work in the UK Nuncques shares here what she brings to the Middle East and just how globalisation has driven her ascent
53
ACCAINTERVIEW
wwwthecfomecom
The strategic partnership with AAA is the first of its kind in the region Students who complete the UAECA qualification will be entitled to both the AAA and ACCA designations and ACCA members in the UAE will also be eligible to apply for AAA membership This is a very exciting development in the market and together AAA and ACCA will be working to deliver maximum value to all our stakeholders from this partnership As we launch the UAECA qualification this activity will start in earnest
Which key industries will you be spotlighting in the Middle East in the months aheadOur experience of working across all sectors and levels of organisations globally gives ACCA a unique insight into all types of industries We will continue to be working with employers across the spectrum in the months ahead to help them gain the insight and make the connections that drive businesses to succeed at whatever they do
ldquoThe ACCA qualification is about complete finance professionals For CFOs it brings the technical knowledge vital to business success complemented with the strategic management skillsrdquo
54
Islamic FinanceMARKET OUTLOOK
wwwthecfomecom
In its 10th instalment the Forum is hosted in Dubai as a direct result of the UAErsquos increasing importance in the world of global Islamic finance
THE WORLD ISLAmIC ECONOmIC FORUm LANDS IN DUBAI
In Dubairsquos continued quest for leading the world across a range of spectrums the Emirate accelerated its desire to become the worldrsquos leading hub for Islamic finance by hosting the 10th installment of the World Islamic Economic Forum (WIEF) Delegates from dozens of countries attended to take part in a three-day event held at Madinat Jumeirah which rests alongside Dubairsquos gleaming coastline Held under the patronage of His Highness Sheikh Mohammed Bin Rashid Al Maktoum the
Vice President and Prime Minister of the UAE and Ruler of Dubai key speakers included The Honorary Dr Zeti Akhtar Aziz Governor of the Central Bank of Malaysia HE Kairat Kelimbetov Governor of the National Bank of Kazakhstan The Honorary Datorsquo Sri Mohd Najib Tun Abdul Razal Prime Minister of Malaysia and HE Xavier Bettel Prime Minister of the Grand Duchy of Luxembourg
Launched in 2006 in Malaysia WIEF has grown in tandem with the increased
Delegates from dozens of countries attended WIEF to take part in the three-day event
sophistication and reach of Islamic finance After a successful event in London in 2013 amidst increased interest in Islamic finance across Europe WIEF relocated to Dubai where the local business structure is keen to host halal finance
Said Hamad Buamim President and CEO Dubai Chamber of Commerce and Industry co-organisers of the event ldquo[The forum] is the start of a new chapter of cooperation between Dubai and the world as part of
55
Islamic FinanceMARKET OUTLOOK
wwwthecfomecom
Dubai Capital of Islamic Economy visionhellipestablishing a unified regulatory authority to provide the framework for standards across halal industries will significantly accelerate growth Likewise we need to see increased cooperation and partnership between the public and private sectors This is already happening with great success here in Dubairdquo
The order of global cooperation needed to facilitate growth across the Islamic finance world was more than apparent at WIEF based on how many differing nations were represented at the event The exhibitorrsquos hall was populated with a number of key Malaysian stands representative of the Southeast Asianrsquos ranking as the global leader in Islamic finance Also present were companies from Saudi Arabia also a key locality in the worldrsquos halal industries An interesting yet prescient presence was of attendees from South Korea a nation which is eager to participate in Islamic finance and will be hosting the WIEF Pyeongchang Roundtable in December 2014
ldquoGangwon is a province located in Korea which is very interested in new business opportunities Wersquove realised the strength of the Islamic economy and have come here with many different companies The first type is based in real estate investment We also have companies which want to export their products to the Islamic economy based on their halal qualities And Gangwon will also be hosting the Winter
ldquoKorea is very interested in the strength of the Islamic economy and wants to export its products based on their halal qualitiesrdquo
56 wwwthecfomecom
$247trillionProjected value of halal products industry in lsquo18
125Muslim percentage of global tourism expenditure
STAT FACTSOlympics in 2018 and are presently seeking investments for this as wellrdquo said Seong-hun Kim a member of Gangwon Province Governmentrsquos Export Support Team
Dubai proved to be an excellent place for the event considering how well the UAE is able to so regularly corral international cooperation A key sign of this was witnessed recently when Luxembourg now considered the third most important base for Islamic finance globally opened a finance office in Dubai International Finance Centre The European nation also opened a euro200 sukuk earlier this year which was quickly oversubscribed
The prime minister of Luxembourg offered the WIEF audience a riveting speech which detailed just how international the Forum has become whilst encouraging more of the world to support the growing influence of Islamic finance
Said Bettel ldquoWe need to innovate more economic partnerships for growth We sometimes need to reengineer relationships but also have to make sure these relationships remain sustainable Growth in one country also brings growth to others as long as this is guided by free market initiatives Free trade and free flow of capital combined with innovation leads to prosperity We have all gathered here in Dubai to explore the future of Islamic finance and Luxembourg is also a pioneer of Islamic finance in Europe The Islamic financial sector has a major role to play in continued global growthrdquo
The Islamic Corporation for the Development of the Private Sector (ICD) is based in the Kingdom of Saudi Arabia where it manages an international fund worth $2 billion half of which is available for subscription With shareholders in more than 50 countries and a sovereign sukuk fund recently launched in West Africa the ICDrsquos CEO Khaled M Al Aboodi attended WIEF this year excited to participate in the global event
How does the ICD approach its attendance at the World Islamic Economic ForumI think the Forum is one of the best places for discussing the financial issues of the OEC member countries It has been around for ten years and has grown to become a very important platform for discussion Wersquore here to attend and listen but also to network Itrsquos a great networking platform and a place to share views whilst letting everyone know what we have to offer
How has Islamic finance changed over the yearsOf course itrsquos growing in a large scale Some of it actually needs more support particularly with respect to regulatory frameworks Wersquore trying to partner with many international organisations like the IMF to try to provide support to countries to adapt regulation for Islamic finance Sukuk issuance is one of the biggest issues that needs to be addressed because there is a huge amount of liquidity in this arena Due to issues related to regulation sukuk issuance can be costly But with the regulation we are confident it will be on a level playing field with other forms of finance Compliance is a major area where more work can be done The Forum started with a roundtable on sukuk which shows how helpful WIEF has been over the years
What type of work does ICD do internationallyICD helped the government of Senegal to issue the first sovereign sukuk This was successfully issued last summer Progressing in this manner is something wersquod like to see continue across West Africa in order to utilise its resources with aiding development in the region in mind
QampA WITH KHALED M AL ABOODI CEO OF ICD
Islamic FinanceMARKET OUTLOOK
OFFICIAL SPONSORS
ENDORSED BY OFFICIAL HOST OFFICIAL
COMMUNICATIONS PARTNER
MEYDAN HOTEL DUBAI UAE19 - 20 NOVEMBER 2014
WOMENOMICSthe next emerging market
TAKE PART in making change happen UNITE with business and through leaders from across the globe
PARTICIPATE to the expansion of a modern and inclusive economy
58
Gautam PradhanINTERVIEW
wwwthecfomecom
SUCCESS BEyOND BOUNDARIES
in other management roles such as strategic decision making mentoring and leading efficiency and productivity across a range of other departments and functions as well as a being a catalyst in ensuring that the boardrsquos vision for the organisation is achieved
A significant percentage of NMDCrsquos shares are owned publicly Does the CFO play a role in balancing the interests of the shareholdersAs a CFO balancing the shareholdersrsquo interests is definitely part of my responsibility In order to achieve this goal there needs to be a careful evaluation of each decision while keeping the short-term and long-term goals of the company in mind At NMDC we actively implement a system where we utilise a balance scorecard as a method of ensuring that all our primary objectives are met yet at the same time continuously enhance our relationships with our shareholders
NMDC has completed various projects across the Emirates Are there plans to move abroadAs NMDC moves towards becoming an international player our strategic expansion plans are focused in areas within the GCC region and India In line with this strategy we opened
How has a company with such a unique set of deliverables grown so consistently over the yearsOur organisation strongly believes that the core to our strength is the people process and equipment A strategic decision led by our Board of Directors and the senior management has been implemented that required us to consistently invest in these three aspects to help expand our business beyond the territorial boundaries of the UAE and at the same time enhance what we can offer which is relevant to these segments We attribute our success to the efforts which every employee contributes We also strongly believe in the ldquoWe can make it happenrdquo principle The management raises the index of performance while setting SMART objectives within the organisation and encouraging the employees to achieve them
How has your position as the CFO changed over NMDCrsquos 35 years of operationAs the market evolves and business dynamics change my role as the CFO has become complex and more challenging A few years back I was mainly focused on bookkeeping accounting and other financial responsibilities such as arranging bank facilities But moving forward I became more involved
The UAE is progressively becoming a hub for world-class infrastructure The country has duly impressed the rest of the globe with noteworthy land developments showcased across the emirates Among the remarkable landscapes found in Abu Dhabi are the Corniche Beach Yas Island and Sir Baniyas Island Behind these successful projects is NMDC the dredging division of Abu Dhabi National Oil Company (ADNOC)
In an interview with CFO Magazine Gautam Pradhan Chief Financial Officer NMDC shares an exclusive look into the companyrsquos international blueprint for growth and his dynamic role as a strategic leader of one of the best in dredging and marine construction in the Middle East
59
Gautam PradhanINTERVIEW
wwwthecfomecom
branches in Qatar Bahrain Oman and India This has paid rich dividends recently as projects of strategic importance are bagged in Qatar and Bahrain Furthermore NMDC (UAE) has recently played a key role as a leader of an international consortium with Royal Boskalis Westminister (Netherlands) and Jan De Nul Group (Belgium) for the awarding of the Suez Canal Dredging project in Egypt Moving forward we have devised a strategic approach that will enable us to play a key role in the development of Indiarsquos marine infrastructure
What are the global strategies that are part of the CFOrsquos responsibilitiesAs CFO understanding the macro economic scenario risk analysis and mitigating those risks are all a part of my responsibilities I also have to have a proper comprehension
ldquoA few years back I was mainly focused on financial responsibilities moving forward I became more involved in strategic decision making mentoring and leading productivityrdquo
Gautam PradhanINTERVIEW
60 wwwthecfomecom
of the challenges faced by the company in terms of dealing with foreign contracts direct and indirect taxes and hedging and managing the integration process These are essential to enhance shareholders wealth and mitigate undue risk
How significant is accountancy for NMDC in its operations Why exactlyAccountancy is the lifeline of any company it does not only record the finances it also reflects the health of the organisation The MIS reports analysis trends and statistical information go a long way toward effectively providing
the diagnostic approach essential for the company
How have NMDCrsquos environmental activities helped the companyrsquos bottom lineNMDCrsquos work is well-synchronised with our environmental activities and specifically with nature Our activities are closely linked to sand and water and we view such activities with strategic importance Projects such as increasing water supply to mangroves and beach nourishment help us support the environmental activities while adding to our bottom line
ldquoAccountancy is the lifeline of any company it does not only record the finances it also reflects the health of the organisationrdquo
A burgeoning slice of Abu Dhabi coastline
The largest business awards
in the GCC30th November Dubai
nominate now at wwwstarsofbusinessawardscom
Stars of Business has become an iconic awards brand like no other in the region It recognizes the very best SMEs across 26 business categories Itrsquos universally respected as scientifically assessed and unimpeachably judged
327000 SMEs across the UAE$234 billion estimated total revenue of the SME sector4974 Awards entries in 20131856 Individual company applicants
Presenting Partner Strategic SME Partner Gold Sponsor Gold Sponsor VIP Hospitality Partner Supporting Partner
Trade Facilitator PartnerTrade Credit PartnerLogistics Partner
Institutional Partner Institutional Partner Event Partner
OrganiserPublisherMedia Partner Media PartnerPort Authority Partner
62
David Allen INTERVIEW
wwwthecfomecom
What went into completing your bestseller ndash Getting Things Done (GTD)After twenty years of researching developing and implementing a methodology for achieving stress-free productivity based upon
thousands of hours spent desk-side with
some of the best brightest and busiest people in the world I decided to write the manual for it Thatrsquos what Getting Things Done is
What are the five phases of mastering workflowIn order to get
any situation under control so
you can focus you will utilise these five
steps Whether yoursquore managing your kitchen
or your company you will need to collect and capture what has your attention clarify what if anything to do about it organise it according to what it means to you review and reflect upon it in relation to
Todayrsquos evolving CFO is often caught between the world of business set-up generating revenue managing employees and building strong company infrastructure When can things actually get done What can one do to boost productivity and master workflow World-renowned business coach David Allen has the answers
PRODUCTIvITy PRINCIPLES WITH
DAvID ALLEN
63
David Allen INTERVIEW
wwwthecfomecom
those are greatly subvertedHow does one maintain a fair balance between the time spent planning and actually getting things doneYou simply need to spend just the amount of time you need to to trust that what you are getting done is the right thing to be getting done in the moment It takes as long as it takes to get to that point Why would you do anything less
How can one apply your core productivity and workflow principles to todayrsquos technologically driven environmentThe principles and their techniques are system-independent Whether you have meaningful input from the Internet your smartphone or a conversation in the hall you must engage with it equally Technology has simply increased the flow of input and ease of distraction in your world
There is a lot of talk about how connected wersquove become and how connectivity is driving tremendous business growth Does connectivity actually come with its fair share of downsides
Connectivity is obviously a two-edged sword We can have intimate productive and creative interaction instantly with someone on the other side of the world and we can just as easily be distracted and seduced into those engagements when they may not be the best use of our attention and resources Donrsquot shoot the medium Itrsquos all simply bringing attention to your clarity of direction and priorities or lack thereof
Could you share a few quick tips with our readers to instantly boost productivityWrite everything down that has your attention Decide the very next actions required to get closure on all of them Any next actions that require less than two minutes do instantly Park reminders of everything else somewhere that yoursquoll see when you can do something about them
We are currently facing a massive information overload What are some basic principles you could suggest to mentally organise such large amounts of dataConstantly ask yourself Where am I going Whatrsquos important and rewarding to me Is this information
the whole and then engage your resources with intuitive trust
As a CFO how can you transfer efficient workflow management skills to your employees Itrsquos very difficult to legislate processes for individuals ndash you can really only hold them accountable for their results But if you are managing your own commitments and intersections with them with integrity and rigour it will automatically force your team to ldquostep up to the platerdquo in their own behaviours in order to meet your standards If you request their complete list of their company projects and they canrsquot produce it thatrsquos a sign theyrsquore not in control If they make a commitment to you that they havenrsquot kept thatrsquos data about their performance GTD is simply about good operational business practices
With so many planning and organising activities in your methodology is there a risk of losing spontaneity as a strategistThe reason for these best practices is to optimise freedom creativity and spontaneity Without them
ldquoBut if you are manag-ing your own com-mitments and intersec-tions with them with integrity and rigour it will automatical-ly force them to ldquostep up to the platerdquo in their own behaviours in order to meet your standardsrdquo
64 wwwthecfomecom
supporting that Park whatever you find potentially meaningful somewhere that is easy to access when needed
Being an entrepreneur is a non-stop job How do you ensure that you have an adequate work-life balance Pay attention to what has your attentionmdashwith regard to anything Your health relationships career finances etc Notice when something might be ldquooffrdquo and make good decisions about what you need to do to get it back ldquoonrdquo again
Does your work teach people to be efficient or effective In essence they are the same thing Effective choices are generated by efficiency on a higher level If you want to implement strategy most effectively it demands utilising your resources optimally which is efficiency
Does motivation actually improve quality of work or purely quantityDepends on the focus of the motivation You can be motivated to work harder and you can be motivated to work smarter
What is your favourite productivity mantra that
you implement in your day-to-day lifeUsing my own in-basket and note-taking devices to capture potentially meaningful and valuable ideas and soon afterwards clearing all of them out by deciding what to do about them if anything
Your books seminars and other work inspires many individuals and businesses Who is your personal inspiration or role model I have many about many different aspects of my life The only person though that I ultimately trust as my best guide is my higher self which I try to access as frequently and clearly as I can
Finally what advice would you give to current business owners and aspiring entrepreneurs looking to gain complete control of their life and businessCapture what has your attention clarify what you need to do about it to get it off your mind organise the inventory of all your commitments at all levels review and reflect on all of that regularly relax and trust your inner wisdom to engage with the most appropriate thing in the moment
ldquoIf you want to implement strategy most effectively it demands utilising your resources optimallyrdquo
David Allen INTERVIEW
APPSTECH TALK
wwwthecfomecom 65
mAxImISE BUSINESS lsquoON-THE-GOrsquo WITH THESE HANDy APPS
ipAd SpECIAL
SAMSUNG UNvEILS GALAxY NOTE EDGE
Network
AP
Display
OS
Camera
Video
Audio
Additional Features
GoogleMobile Services
Connectivity
Sensor
Memory
Dimension
Battery
The availability of service may differ by country All functionality features specifications and other product information provided in this document including but not limited to the benefits design pricing components performance availability and capabilities of the product are subject to change without notice or obligation
Samsung Galaxy Note Edge Product Specifications
25G (GSM GPRS EDGE) 850 900 1800 1900 MHz3G (HSPA + 42Mbps) 850 900 1900 2100 MHz4G (LTE Cat 4 15050Mbps) or 4G(LTE Cat 6 30050Mbps)May differ by country and carrier
27 GHz Quad-Core Processor
56 inch (1419mm) Quad HD+ Super AMOLED (2560 x 1440 + 160)
Android 44 (KitKat)
Rear Facing 16 Mega pixel Auto Focus camera with Smart OISFront Facing 37 Mega pixel camera with f19Rear Facing Camera HDR (Rich tone) Selective Focus Rear-cam Selfie Beauty face Virtual Tour Shot ShotampMore Dual CameraFront Facing Camera Selfie Wide Selfie
Codec H264 MPEG-4 H263 VC-1 WMV7 WMV8 Sorenson Spark MP43 VP8 Recording amp Playback up to UHD
Codec MP3 AACAAC+eAAC+ WMA AMR-NBWB Vorbis FLAC()() Ultra High Quality Audio (~192KHz 24 bit) support
Multi WindowUltra Power Saving ModeVoice Recorder (Normal Mode Interview Mode Meeting Mode Voice Memo)Download BoosterS Health 35Dynamic Lock ScreenBriefingEdge screen UX Revolving Interaction Immersive apps(Camera Video S Note)Ticker board Express me Quick Tools Night Clock etc
Chrome Drive Photos Gmail Google Google+ Google Settings Hangouts Maps Play Books Play Games Play Newsstand Play Movie amp TV Play Music Play Store Voice Search YouTube
WiFi 80211 abgnac (HT80) MIMO PCIeGPS GLONASS BeidouNFC Bluetoothreg v 41 (BLE ANT+)IR LED (Remote Control) USB20 MHL 30
Gesture Accelerometer Geo-magnetic Gyroscope RGB IR-LEDProximity Barometer Hall Sensor Finger Scanner UV Heart Rate Monitoring SpO2 (Dependent on market)
32 64 GB Internal memory + microSD slot (up to 128GB)3GB RAM
1513 x 824 x 83mm 174g
Standard battery Li-ion 3000 mAh Fast Charging (Adaptive Fast Charging amp QC20)
wwwthecfomecom66
APPSTECH TALK
AIR DISPLAY
SQUARE REGISTER
Using this app you can connect your iPad to your computer and use it as an additional screen While working on an important presentation or sales proposal you can extend or mirror your computer screen on your iPad This app is compatible with both Mac and Windows computers Note that to use this feature you have to install Air Display on your iPad and a separate free app on your computer The computer and iPad also need to be on the same Wi-Fi network in order to work in-sync
For Mac users the app allows you to connect to up to four screens ndash all at the same time
Apart from the ability to convert your iPad into a wireless display whatrsquos also attractive about this app is that it allows you to control your computer wirelessly using your iPad
This fantastic application can serve as a mobile point of sale for your business It allows you to accept credit card payments ndash including Visa MasterCard Discover and American Express A transaction fee of 275 is charged for every time you swipe a card The sale amount is transferred to your account within two working days
Once you download the app you can sign up and register for a unique card reader solution called the lsquoSquare Readerrsquo (this is free) Square Reader encrypts all card details and ensures that the transaction is secure Once you receive your Square Reader you can connect it to your device and are all set
The application also offers added features such as transaction history connecting to a receipt printer creating employee logins and more
AED 3699
PRICE
Free
PRICE
wwwthecfomecom 67
APPSTECH TALK
DOCUSIGNHave you ever been in a situation where your employees need you to urgently sign a contract but arenrsquot able to physically reach you in time DocuSign solves this problem with its easy-to-use eSignature feature In three easy steps you can sign important documents and securely send them to your intended recipient
First you have to import the document to your device ndash this could be from Dropbox Google Drive or another select applications You then place your signature or any other important legal information you need to include such as initials Once you have finished working on the document send it back via e-mail
Whatrsquos particularly great about DocuSign is the great emphasis it puts on security ndash so that users donrsquot have to worry about getting into any legal trouble
Use DocuSign and never miss a deadline again
Free for basic version
PRICE
MPAYAn initiative by the Dubai eGovernment Department mPay is a simple application that allows you to make important payments Once yoursquove signed up and entered your payment details you are good to go You can pay your Dubai Electricity and Water Authority (DEWA) bills Etisalat utility bills Dubai Police fines Recharge SALIK and much more
A handy feature is its lsquoauto-rechargersquo option which you can use to set automatic payments
Free
PRICE
Opinion CIMAPERSONALITIES
wwwthecfomecom68
NEW HORIZONSBy geetu Ahuja Head of gCC at CIMA
The days of the traditional accountant working within a small community in a small town in a small market have long gone CFOs are now being referred to as Chief Frontier Officers as they travel from market to market overseeing their offices overseas This new expanded role has distinct advantages for both the company and the CFO who gain new skills and new insights from foreign branches a single hand at the helm of many markets provides business perspectives on a global scale and benchmarks across the board
On a personal level working abroad also has huge importance Robert Walters the specialist professional recruitment consultancy recently conducted a survey
of almost 2200 employees across a variety of professions exploring a number of topics which ranged from working practices and attitudes to careers The results highlighted some notable trends particularly for finance professionals
In career progression for example the survey showed that 50 of all accountants see working abroad as either lsquoessentialrsquo or lsquoextremely usefulrsquo to furthering their prospects more than banking professionals lawyers and IT workers ndash a strong indication of how accounting professionals are thinking about their future either within their existing company or with opportunities elsewhere
Accountants with globally recognised qualifications obviously have a greater chance of gaining some experience abroad and the lsquoGen Yrsquo professionals in particular seem ready to pack their bags In a CIMA study conducted in the UK last year over a third of those seeking employment in the
next two years will prioritise opportunities abroad over those in their home countries many of them enticed by the career incentives offered by the Middle East
How quickly can they land what seems to be their dream job What are the realities It may be that the move is simply from one branch to another and the only significant difference is a view from the window but for those expanding rather than changing their roles we have seen a very real need for a depth and breadth of knowledge never needed before
As geographical boundaries are pushed ever-wider a CFOrsquos responsibilities are pushed with them For many finance executives the understanding of their own patch of land is no longer enough they now have to be aware of foreign markets up to speed with foreign trends and au fait with foreign laws There is a need for a new commercial awareness in geography as well as philosophy
As geographical boundaries are pushed ever-wider a CFOrsquos responsibilities are pushed with them
John vargheseQampA
wwwthecfomecom 69
BUSINESSSET UP YOUR
IN THE UNITED ARAB EMIRATES
TO
WAREHOUSESOFFICES INDUSTRIAL LANDFLEXI
Quick and easy company set-up
Less than an hour drive from Dubai
Complete cost-effective packages including licences and facilities
100 foreign ownership
Zero income and corporate taxes
Eligibility for UAE Residence Visa
BUSINESS SET-UP SOLUTIONS STARTING FROM AED 15000 (USD 4000)
RAK FREE TRADE ZONE PROVIDES
RAK Free Trade Zone Authority - Government of Ras Al KhaimahUAE (Ras Al Khaimah) Tel +971 7 2041111 (Dubai) Tel +971 4 7041875 (Abu Dhabi) Tel +971 2 6994888
Germany (Cologne) - Turkey (Istanbul) - India (Mumbai)
Call +971 7 204 1111 Visit wwwrakftzcom Join rakftz
36 wwwthecfomecom
worked on acknowledges the skill set needed by professionals throughout their career Therersquos a base level of competence that is needed but beyond that there is more There is business acumen the ability to communicate and influence and finally the ability to lead So you start off enhancing your raw technical accounting skills Then you need to place that into the context of the business that you are in Then as you move forward and as you rise to become the CFO yoursquoll need the others You have to learn how to present your work in a way that can influence and make an impact in the business The final piece is the ability to lead projects and other functions and to a great extent lead the board of directors Thatrsquos how the context works itrsquos not just about technical knowledge
How do you find that CFOs in the GCC region are responding to this programmeThe CFO has a real challenge on his hands now In 1975 80 per cent of corporate value is showing on the balance sheet By 2010 that dropped to less than 20 per cent Your traditional PampL reports no longer reflect the value of the business or how the business drives value
All things that should be of interest to investors is missing With things like the integrated report initiative wersquore starting to see the other dimensions that add value to business For CFOs thatrsquos all about strategic thinking and considering the long-term objectives Being articulate in implementing those strategies keeping in mind the risks and opportunities that the business faces We are also nowadays witnessing a whole new world of transparency around that
Are there electronic aspects to CIMArsquos advancing approachThe interactive case study simulates a real working situation and it tests how they can apply their knowledge in real life situations Theyrsquoll be presented with a scenario a few weeks before they take the exam so they can prepare for it They then go to an exam centre where they are asked questions about how they will deal with a certain situation in the real world Theyrsquoll get an email from the CFO giving them a certain task for a particular period of time We want to make it as close to reality as possible so students taking the exam will be assessing situations based on real life scenarios
ldquoThe CFO has a real challenge on his hands now as traditional PampL reports no longer reflect the value of the businessand [the role] must focus on strategic thinking and considering long-term objectivesrdquo
218KCIMA members worldwide
STAT FACTS
CIMA INTERVIEW
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
38
ERPANALyTICS
wwwthecfomecom
Faster more nuanced IT solutions are available to the modern day CFO Whilst Chief Financial Officers are called upon to analyse data across a number of spectrums the digital tools on hand are likewise being expanded to aid in focusing more squarely on the bottom line
ExCELLING WITH ERP
The global landscape is today firmly entrenched within a digital model As a result CFOs whom are called upon to take a larger role in a number of variables must also increase their abilities with respect to utilising the many upsides which tech innovations offer a business When surveyed about their most pressing concerns CFOs generally return a varying collection of responses Revenue growth regulatory changes and meeting quarterly goals are among the chief concerns Virtually every obstacle can be hurdled by way of maintaining the order of financial reporting and data which has long been
synonymous with the Chief Financial Officerrsquos remit A widening berth of ERP solutions is making this data all the easier to come by
Despite how sophisticated the market is today it was not long ago that ERP departments once spent days processing business reports
Said Rohan Tejura Assistant Vice President Focus Softnet ldquoTraditional ERP systems were solely data repositories Moreover these repositories werenrsquot real time and were incredibly dependent upon locational connectivity With the emergence of smarter development platforms more versatile devices and
39
ERPANALyTICS
wwwthecfomecom
more intuitive designs of system development the overall experience of the ERP now extends from data warehousing to reporting analysis trend mapping business intelligence and governance oriented capabilities Yet these solutions amazingly execute all of these deliverables via portable handheld devices and through cloud environmentsrdquo
New generation ERP systems must now be on the go whilst including up to the minute analytics to provide deeper insight into the business ERP Analytics tools use historical data captured from various business functions to provide valuable information for efficiency and business performance each incredibly priceless to a leading CFO
Finesse is an ERP provider which is continually addressing the transformation of output which the ERP industry is offering the equally transitioning role of CFO
ldquoWe provide end-to-end business management solutions to SMEs and Enterprises Our approach to ERP is much more than providing simply an operational management systemrdquo said Finesse COO Sunil Paul
ldquoWe believe that todayrsquos businesses need much more than integrating sales with inventory accounting and manufacturing but also to have seamless integration with all their sales channels including the point of sales ecommerce and inbound sales solutionsrdquo
A major im-petus of the ERP-cen-tered growth is based on how effec-tive com-prehensive real-time data proves to be for the CFO
40 wwwthecfomecom
before thereby creating new global benchmarks for overall economic growth
Microsoft Arabia CFO Sadrul Khan offered insight into just how far the knowledge economy has influenced regional financial leadership by explaining how one of the most prioritised technologies by CFOs in the region is social platform monitoring
ldquoOne of the five technology choices that CFOs tend to prioritise in boosting productivity efficiencies and faster decision making in the fast paced business environment which include a social platform that monitors trends customer sentiments and helps process mashable data for customer centricity and business growthrdquo said Khan
A major impetus of the ERP-centered growth is based on how effective comprehensive real-time data proves to be for the CFO Whether employed as on-premise ERP software-as-a-service or cloud-based solutions a nearly identical ethos is being utilised Allowing the CFO to quickly access the performance of all facets of a business is paying dividends in the boardroom a reality which is showing itself increasingly in the Middle East
The technologically-charged relationship between ERP solutions and the regionrsquos CFOs is expanding and as a result has catalysed what many see as GCC economic performance outstripping that of many economies outside of the region as a result
In order to compete in todayrsquos fiercely competitive environment organisations need to think both innovatively and out of the box They require more insights about their business and their customers and need to ensure that they are able to meet the expectations of their internal as well as external stakeholders Enormous amounts of data both structured and unstructured is continuously being generated within the internal and external systems of the organisation which if analysed can be of immense value both to the business and subsequently the stakeholders associated with the organisation
With the the era of CFOs labouring over spreadsheets now in the past given how many business frontiers have become so dependent on mobile options such as the cloud more and more tech companies are providing the regionrsquos CFOs with information technology that converts traditional internal and external data into rich visual insights This information is then used for faster decision making and provides the ability for a CFO to assess manage and control risks Regional CFOs have grown enabled to drive corporate strategy accordingly demonstrating how the knowledge economy is now in full force amongst the Gulfrsquos corporates
Given that advanced IT has now become a regular CFO tool the regionrsquos CFOs are subsequently making faster decisions and driving internal growth models with greater speed and agility than ever
Tech companies are providing the regionrsquos CFOs with information technology that converts traditional internal and external data into rich visual insights
ERPANALyTICS
Donrsquot discoveritrsquos counterfeittoner afteritrsquos too lateOriginal HP Toner works first time every time1 unlike cheap toners which fail over half of the people who try it2 Non-HP toner can compromise your printerrsquos performance to give you streaked blotchy or faded prints Only original HP Toner cartridges deliver unmatched quality for the most professional-looking prints 100 of the time1
1 A QualityLogic 2010 study commissioned by HP comparing original HP LaserJet Monochrome print cartridges with nine brands of non-HP toner cartridges available in Europe Middle East and Africa for the HP LaserJet P1505 and P4015 printers HP 36A and 64A For details see wwwqualitylogiccomEMEAmonotonertestpdf 2 From a 2012 EMEA Lyra Research study commissioned by HP Results based on a total of 1050 HP Color LaserJet users who have used both original HP and non-HP toner cartridges of whom 552 experienced problems with non-HP cartridges
copy 2014 Hewlett-Packard Development Company LP
42
Private Equity ANALyTICS
wwwthecfomecom
The rise of PE-backed acquisitions is forcing CFOs to develop an entirely new set of skills
THE PRIvATE EQUITy CFO
The CFOrsquos utility in the world of private equity is without question on the rise The once-held belief of the CFO existing solely as the ldquoaccounting guyrdquo has been abandoned Over the last 20 years the role of CFO has become more demanding - requiring not just finance and accounting acumen but also a financial literacy in corporate planning risk management MampA assetliability management and regulation This evolution has been driven by a number of
key factors Yet the private equity industry which is now reshaping the corporate landscape through active ownership is by far the most significant factor driving change within the role of the CFO
PE-backed buyers today represent a larger percentage of overall buyers in the corporate acquisition marketplace than ever before Data provider Prequin estimates that as of June 2014 the capital raised by PE funds that
has not yet been deployed amounts to $114 trillion globally The result of this ldquodry powderrdquo is that a vast quantity of corporate acquisitions in the coming years will be undertaken by the private equity industry As such CFOs will be more accountable to demanding ldquosmart moneyrdquo shareholders than at any point in recent history Budgeting accounting and financial reporting will no longer exist as sole priorities but as a core competency among a
ldquoBy effec-tively using real-time data CFOs can create a dynamic process that proac-tively drives performance account-ability and value crea-tionrdquo
By Aaron Heidari
43
Private Equity ANALyTICS
wwwthecfomecom
robust set of complimentary and required skills Most of all the bar for CFOs is rising as PE investors will only accept above-average performance from their management teams
CFOs were once more reactive in function setting budgets based on other executivesrsquo plans and managing the flow of reporting to shareholders on a quarterly and yearly basis Today CFOs are required to become proactive managers of their respective businesses alongside their C-suite compatriots using a granular data-driven approach to aggregate analyse implement and report on every aspect of a companyrsquos operations
An important tool to drive this value creation process are KPIs Yet KPI structures including both aggregation and output are generally not up to the standards required of private equity investors prior to an investment being made
ldquoThe benefits of using KPIs and monthly reporting packages are significant By effectively using real-time data that is actionable and by partnering with functional area leaders within the organisation company CFOs can create a dynamic process that proactively drives performance accountability and value creationrdquo said Amanda Robinson Vice President of Accordion International in Dubai a consulting firm which is comprised of former private equity and investment banking professionals who
MENA region Cumulative Funds Under Management Since 2008
Source Zawya private Equity Monitor
19 636 20 36321 586
22 64323 506 24 250
-
5000
10000
15000
20000
25000
2008 2009 2010 2011 2012 2013
Cu
mu
lati
ve f
un
ds
($ m
)
$15mAverage MENA PE investment size in lsquo13
50Percentage of investment in IT and energy sectors
STAT FACTS
44 wwwthecfomecom
work with companies to deliver cost-effective project execution services
Active shareholders whose money it is being spent will typically require a data-driven justification before approving any budgets capital expenditures or new acquisitions Furthermore in many private equity backed companies the use of debt and the matching of shorter-term bank financing with longer-term investments will only be considered after a robust analysis is conducted to understand the companyrsquos ability to service that debt in the future This evaluation is not simply to identify revenues expenses and profits Itrsquos about drilling down into every transaction and rooting out data processing and reporting At least that is the expectation
The most valuable CFOs are those who have the ability not just to scrutinise and understand the financials but all also possess a wider grasp of the underlying data which truly comprise the business As an investor who has just acquired a stake in a new business I want a CFO who can manage the transition and stay ahead of my expectations Most of all a CFO should impress upon the companyrsquos shareholders a new way of doing business The first 100 days of an acquisition are said to be the most important During this period the CFOrsquos worth will be established when the new financial plan is due and the platform for the next five years of growth is presented
A CFO should man-age the tran-sition stay ahead of expectations and impress upon the companyrsquos shareholders a new way of doing business
Investment Volume By Sector Since 2006
Investment Volume By Sector in 2013
Source Zawya private Equity Monitor
1
3
30
17
3
28
3
4
6
4
6
5
17
9
9
6
9
5
8
6
6
2
3
10
Education
Education
Information Technology
Information Technology
Other
Other
Telecoms
Telecoms
Media
Media
Transport
Transport
Oil amp Gas
Oil amp Gas
Healthcare
Healthcare
Consumer goods
Consumer goods
Food amp Beverages
Food amp Beverages
Leisure
Leisure
Manufacturing
Manufacturing
ANALyTICS
Private Equity
2000857 NBAD ratibi mag ad 200x268 Finalindd 1 92514 1017 AM
46 wwwthecfomecom
THE FUTURE OFACCOUNTING EDUCATIONAddRESSINg THECOMpETENCY CRISIS
Have you ever stopped to think about how the accounting profession has changed since you graduated from college Recent graduates can answer this question by reflecting on the last two or three years whereas for other more seasoned professionals answering this question requires a bit more thought and memory searching Indeed we can all think of ways that the field of accounting is remarkably different today from the one we likely envisioned during our college daysmdashregardless of which decade we each donned our cap and gown This gradual transformation of the accounting profession leads to two important questions related to competencies bull Which competencies are important for success inaccounting todaybull Were these competencies consciously developed as partof your accounting degree programme
We suspect that more than a few of you would answer ldquonordquo to the second question Put another way our profession may be facingmdashmore so than at any time in the pastmdasha ldquocompetency crisisrdquo that is a gap between the competencies needed for professional success and those taught in our college classrooms today We propose a three-pronged strategy or ldquogame planrdquo for overcoming this competency crisis and in turn better preparing accounting graduates for the challenging world they will face First all of us accountants need to understand the changes that have already taken place in our profession and perhaps more importantly anticipate the changes that are on the horizon Second we need to educate ourselves and future generations of accountants so that as a collective group we can deliver the expanding set of competencies demanded in todayrsquos dynamic organisational
contexts Third as professional organisations and as individuals we need to think beyond ourselves by asking How can I (or we) help the accounting profession address the competency crisis
A Shift Toward Integrated ThinkingMany articles and white papers have been written that describe in detail the changes that have occurred in our profession over the last few decades but for our purposes wersquod like to distill these changes down to one crucial idea How does the accounting function add value to an organisation Accountants have evolved from support-oriented personnel who hand off information to others who actually make decisions into business partners who ldquohave a seat at the tablerdquo with managers
By peter C Brewer James E Sorensen CpA CgMA and david E Stout
47wwwthecfomecom
1048576bull What regulatory risks mayaccompany the proposal
1048576bull What social and environmentalfactors will we face if for example the proposal requires investing in overseas operations
1048576bull What types of employeeresistance may arise if we implement the proposal and how will we overcome the root causes of any such resistance
1048576bull Can and how should we valuefuture options associated with the proposal such as expanding or contracting the investment over time as new information becomes available
1048576bull Should we use debt or equity tofund the proposal
In short accountants have evolved to become integrated thinkers who enable EPM by partnering with managers across the organisation to add value Yet as EPM has gradually become the centrepiece of our professionrsquos value proposition accounting education hasnrsquot done enough to embrace it To overcome this gap wersquod like to further suggest that the concepts of competency integration and EPM need to come ldquofront and centrerdquo as we move forward in educating the next generation of successful accounting practitioners
Accounting Education No Longer on the SidelinesRecently a task force consisting of members of IMAreg (Institute of Management Accountants) and members of the Management Accounting Section (MAS) of the American Accounting Association (AAA) addressed the competency issue How should accounting education change fundamentally to help close the competencies gap The efforts of the task force led to
cash flows and how to apply discounted cash flow (DCF) decision models such as net present value (NPV) is of foundationalmdashsome might say critical mdash importance But integrated thinkers draw on an understanding of organisational strategy coupled with a broader set of competencies (beyond what might be considered technical or foundational knowledge) when making these types of decisions For example they consider how behavioural issues may influence the capital investment decision-making process Perhaps the financial estimates contained in the NPV analysis are too optimistic because the manager who prepared the numbers has a vested interest in seeing the project approved Decision makers also need to consider issues such as leasing vs buying a capital asset and the corresponding impacts on the financial statements and ratios that are tracked by investors and lenders What nonfinancial factors are associated with the proposed investment Add in the tax consequences of capital investment decisions coupled with the need to maintain internal control over any new business processes tied to these decisions and the need to think in an integrated fashion across a variety of accounting competencies becomes apparent
Furthermore becoming a true business partner with managers across the organisation requires more than simply integrating various accounting competencies It also means thinking like a business manager or a chief executive officer (CEO) Returning to the capital budgeting example an integrated thinker will ask questions such as
across the organisation Together they formulate and plan strategies then participate in collaborative decision-making processes that execute those strategies in a manner that adds stakeholder value Said another way accountants have evolved to become enterprise performance managers This shift in our orientation from a support function to an enterprise performance management (EPM) role has enormous implications for defining the determinants of success within our profession the most important of which involves becoming collaborators and ldquointegrated thinkersrdquo Take for example a common but important business decision process capital investment analysis Certainly technical knowledge regarding how to estimate relevant after-tax
48 wwwthecfomecom
expanding capital budgeting discussions to include financial statement impacts tax consequences and internal control issues integrates topical coverage across the External Reporting and Analysis Taxation Compliance and Planning and Assurance and Internal Control competencies shown in Figure 1
Third accounting curricula can incorporate a broader set of management competencies For example evaluating capital investment proposals from the perspectives of change management (Leadership) social and environmental issues (Ethics and Social Responsibility) regulatory concerns (Governance Risk and Compliance) and capital structure (Additional Core Business Competencies) brings a CEOrsquos perspective to the decision-making process
Fourth accounting curricula should include foundational competencies such as proficiency with spreadsheets and written and oral communication In the context of capital budgeting this may include asking students to use Microsoft Excel to perform a sensitivity analysis and then to present their findings to the entire class
Working to Fix the ProblemAt this point although you may agree with us that therersquos a competency crisis within the accounting profession you may be wondering What does this have to do with me What can my organisation do to help address this so-called competency crisis The answer a lot Practice partners and academic partners can help the accounting profession overcome the competency crisis That said letrsquos take a closer look at the role of practice partners first
improvement) and accounting competencies (external reporting and analysis planning analysis and control taxation compliance and planning information systems assurance and internal control and professional values ethics and attitudes) Of critical importance to the framework is the assumption that the set of competencies contained in Figure 1 would be developed and integrated over time through a blend of formal education (including continuing education) training and job experience
What levels of integrationmdashon the road to developing integrated thinkers in accountingmdashare possible First accounting educators can integrate within a single accounting competency So referring back to our capital budgeting discussion teaching computational models such as NPV analysis coupled with a review of various behavioural issues associated with capital investment decisions would be an example of integrating within the Planning Analysis and Control competency listed in Figure 1
Second professors can integrate across accounting competencies For example
a recently published article that contains a proposed framework for accounting education reproduced here as Figure 1 The framework is general in the sense that itrsquos meant to apply to all accounting students not subgroups based on career specialisation such as tax assurance services corporate finance and the like Itrsquos based on the idea that accounting educators can better prepare students to deliver our professionrsquos EPM value proposition through integrated competency-oriented curricula (For more see ldquoFocusing Accounting Curricula on Studentsrsquo Long-Run Careers Recommendations for an Integrated Competency-Based Framework for Accounting Educationrdquo in the May 2014 edition of Issues in Accounting Education)
A glance at Figure 1 reveals three levels of competencies foundational competencies (communication ability to leverage technology and analytical thinking and problem solving among others) broad management competencies (including leadership ethics and social responsibility and process management and
Proposed Competencies-based Framework for Accounting Education
FOUNDATIONALCOMPETENCIES
ACCOUNTING COMPETENCIES
BROAD MANAGEMENT COMPETENCIES
leadership
ExternalReportingamp Analysis
PlanningAnalysis
amp Control
TaxationComplianceamp Planning
InformationSystems
Assuranceamp InternalControl
ProfessionalValues Ethics
amp Attitudes
Communication
Quantitative
Interpersonal
Technological
Analytical Thinking ampProblem Solving
Ethics amp SocialResponsibility
ProcessManagement ampImprovement
GovernanceRisk amp
Compliance
AdditionalCore BusinessCompetencies
Although you may agree with us that therersquos a competency crisis within the account-ing profes-sion you may bewondering What does this haveto do with me
A practice partner should be or become a CMAreg (Certified Management Accountant) maintain professional certification by completing required Continuing Professional Education (CPE) hours and regularly read the IMA publications Strategic Finance and Management Accounting Quarterly
In addition there are a number of excellent resources that deal with topics covered in this article and that IMA makes available to its members
Strategic Finance PowerPacks(wwwimanetorg SFPowerPacks) These are resources focused on contemporary topics similar to those discussed earlier Current offerings include Risk Management Strategic Planning IT Skills amp Software and Internal Controls Each PowerPack includes a combination of resources such as research studies articles and links to webinars
Statements on Management Accounting (SMAs)(wwwimanetorgresources and_publicationsresearch_ studies_resourcesstatements on_management_accounting aspx) SMAs represent monographs classified into one of the following six categories Leadership Strategies and Ethics Technology Enablement Strategic Cost Management Business Performance Management Finance Governance Risk and Compliance and the Practice of Management Accounting Multiple items are available within each category For example the Practice of Management Accounting category includes (among other items)
49wwwthecfomecom
the Definition of Management Accounting and Implementing Shared Service Centres
Research Studies (wwwimanetorgresources_and_publicationsResearch_Studies_and_ResourcesAll_reportsaspx) The ldquoThoughtLeadershiprdquo section of IMArsquos website includes research covering a broad range of issues classified into seven categories For example under the ldquoGlobal Business Environmentrdquo category the following two research reports are available ldquoKey Differences Between IFRS and US GAAP Impact on Financial Reportingrdquo and ldquoCosting Methodologies and Cost Management Practices in the Peoplersquos Republic of Chinardquo
IMA Leadership Academy (www imanetorgprograms_events leadership_academyaspx) As described on the IMA website this programme is designed to assess a memberrsquos leadership status enhance that individualrsquos skills (principally through monthly webinars) and recognise leadership achievements These benefits are free to members
How You Can Make a Bigger Impact In addition to attending local regional and national IMA meetings consider inviting a small group of students to each chapter meeting This could be a wonderful (and relatively low-cost) option for mentoring aspiring accountants and finance professionals providing networking opportunities and introducing students to cutting-edge issues regarding the practice of management accounting Joining a university accounting
advisory group may be another way to influence the development of EPM in that institutionrsquos curriculum design
Other methods to enhance EPM in your organisation include (1) forming user groups within your company your local IMA chapter or your industry to review and share EPM experiences (2) encouraging advancement in the firm to be linked to EPM proficiency (3) focusing your companyrsquos recruiting efforts on candidates who display a background in andor understanding of EPM and (4) organising cross training within your company to enhance a mutual understanding of each otherrsquos respective roles
Finally visit the Competency CrisisTM website (http competencycrisisorg) set up by IMA to unite the accounting and finance constituencies professionals students employers academics and professorsmdashand explore competency issues through the lens of each stakeholder group The site is designed to ldquoencourage a discourse spur action and create a community dedicated to resolving the serious crisis of competency present in the professionrdquo Special sections of the website are devoted to educators students and employers professionals
Our Partners in Education Much like a practice partner an academic partner should be or become a CMA maintain professional accreditation by completing CPE hours and regularly read IMArsquos publications
Academic members of IMA can pursue and actively promote the CMA programme at their respective institutions
50 wwwthecfomecom
IMArsquos website contains helpful resources including an exam content overview content specification outlines for each of the two parts of the CMA exam and learning outcome statements The current exam covers some of the professional competencies represented in Figure 1 A summary of changes to exam content which will be effective in January 2015 is provided on the IMA website in News amp Media Relations which is located under ldquoAbout IMArdquo (See the press release dated March 24 2014) Other helpful resources include ldquoICMA Announces CMA Exam Content Changesrdquo in the April 2014 issue of Strategic Finance as well as ldquoManagement Accounting Career Readiness Shaping YOUR Curriculumrdquo
These forthcoming changes are based on the most recent IMA study of the knowledge and skills needed by management accountants from the view of CFOs controllers and other accountingfinance professionals from around the world
Also consider taking a group of your students to the IMA Student Leadership Conference held each November The Conference provides excellent networking opportunities for you your students and practicing professionals Students can learn firsthand from Conference presenters the challenges and opportunities facing finance and accounting professionals today
Moreover if your institution doesnrsquot currently have an IMA Student Chapter consider forming one One of the authors of this article David Stout reinstituted the student chapter at his school (Youngstown State University) after travelling with a group of his students to the IMA
Student Leadership Conference in Cleveland Ohio Through an IMA Student Chapter on campus students are able to work closely with a sponsoring local IMA chapter and bring to campus speakers who are experts in a wide range of topics including those discussed earlier in this article Each year student chapters compete for an Award of Excellence (AOE) and recognition as an Outstanding Student Chapter In addition IMA student members are able to engage in networking activities leadership training mentoring and community service programmesmdashall through their local chapter
You also might consider volunteering to serve as a Campus Advocate In this role yoursquoll represent IMA in all major matters of interest to your students (scholarship opportunities starting a student chapter mentoring and the like) and to your institution (for example leveraging IMA resources to advance the relevancy of the accounting curriculum use of educational case studies published in the IMA Educational Case Journal and access to IMArsquos ethics curriculum)
And if you havenrsquot yet done this ask IMA to endorse your accounting programme (information is available at www imanetorgeducator_resources indexaspx) This programme is designed to identify business curricula that meet the quality educational standards required to prepare students to earn the CMA designation Endorsement is based on an analysis of the curriculum and topics covered on the two-part CMA exam Currently 12 programmes have been endorsed
Finally if your school has an IMA Student Chapter consider participating in the annual IMA Student Case Competition where students are asked to propose a solution to a real world problem (Cases are solicited each year by Raef Lawson IMA VP of Research and Policy and IMA Professor in-Residence) Finalists make their presentations at IMArsquos Annual Conference amp Exposition before a set of judges consisting of accounting faculty members and practitioners Each year a new case is published in the August issue of Strategic Finance for students to use for that yearrsquos competition
Working TogetherIn this article we have summarised the changes that have affected the accounting profession and provided a competencies-based framework for guiding accounting educators in responding productively to those changes As a management accountant you know that implementing change in any organisation let alone within an entire profession never comes easily To be successful in overcoming our professionrsquos competency crisis IMArsquos practice and academic partners will need to assume leadership roles in defining enterprise performance management as the cornerstone of the accounting professionrsquos value proposition
This article was orginally published in the August 2014 issue of Strategic Finance It appears here with the permission of The Association of Accountants and financial professionals in Business
We need to educate ourselvesand future generations of account-ants so that as a collec-tive group we can deliver theexpanding set of com-petenciesdemanded in todayrsquos dynamicorgani-sational contexts
THE POWERFUL AND THRIFTY OFFICE ALL-ROUNDERS
The new ECOSYS M3560idn series will astound you With their print speeds of up to 60 pages per minute they are among the most productive A4 bw multifunctionals on the market We nevertheless managed to keep their ecological footprint and total cost of ownership impressively low by using our well-known ECOSYS technology and equipping the devices with our renowned long-life components The result Not only less waste and lower maintenance costs but also less hassle for you and all your colleagues You will also greatly appreciate the many customisation possibilities of the devices equipped with KYOCERArsquos open solution platform HyPAStrade as it allows you to tailor the device to your needs So yes we are proud of our new range of MFPs and can hardly wait to share their numerous benefits with you
For more information please contactKYOCERA Document Solutions Middle East | PB Box 500817 DubaiUAE | Tel +9714 4330 412 | Fax +9714 4231 944KYOCERA Document Solutions Europe BV - wwwkyoceradocumentsolutionseuKYOCERA Document Solutions Inc - wwwkyoceradocumentsolutionscom
52
ACCAINTERVIEW
wwwthecfomecom
GLOBAL By ASSOCIATION
across the region from our key employers and learning provider partners to our active and growing student and member base I want to understand their challenges and priorities and how ACCA can work with them to help support the economic success of the region
What can a CFO gain from working with ACCAThe ACCA qualification is about complete finance professionals For CFOs it brings the technical knowledge vital to business success complemented with the strategic management skills and ethical competence crucial to an organisationrsquos success As an organization ACCA in the UAE brings CFOs access to that local and global network of peers and expertise along with our leading research and insights that help them to keep up to date on the issues that matter most
Are there any initiatives in place to leverage the recently announced partnership with AAA
How are the ACCArsquos many years of activity being applied to the Middle EastACCA has now had a presence in the UAE for well over a decade During that time we have established strong relationships across the Middle East epitomised by the recent signing of our Strategic Partnership with AAA As a national body in choosing to partner with ACCA they recognised the local and global perspective we bring We are continuing to work with students members and employers across the Middle East to build their networks knowledge and business success through events research and insights and access to a growing number of online resources
Which initial priorities are among your key aims upon joining the organisationrsquos efforts in the UAEIn the first few months I hope to build on the success of the team in the UAE My priority will be to meet as many of our key stakeholders
The Association for Chartered Certified Accountants (ACCA) provides its services across a number of international borders The recent announcement of Lindsay Degouve de Nuncques as the new head of the Associationrsquos UAE chapter further exemplifies the ACCArsquos reach based on her previous work in the UK Nuncques shares here what she brings to the Middle East and just how globalisation has driven her ascent
53
ACCAINTERVIEW
wwwthecfomecom
The strategic partnership with AAA is the first of its kind in the region Students who complete the UAECA qualification will be entitled to both the AAA and ACCA designations and ACCA members in the UAE will also be eligible to apply for AAA membership This is a very exciting development in the market and together AAA and ACCA will be working to deliver maximum value to all our stakeholders from this partnership As we launch the UAECA qualification this activity will start in earnest
Which key industries will you be spotlighting in the Middle East in the months aheadOur experience of working across all sectors and levels of organisations globally gives ACCA a unique insight into all types of industries We will continue to be working with employers across the spectrum in the months ahead to help them gain the insight and make the connections that drive businesses to succeed at whatever they do
ldquoThe ACCA qualification is about complete finance professionals For CFOs it brings the technical knowledge vital to business success complemented with the strategic management skillsrdquo
54
Islamic FinanceMARKET OUTLOOK
wwwthecfomecom
In its 10th instalment the Forum is hosted in Dubai as a direct result of the UAErsquos increasing importance in the world of global Islamic finance
THE WORLD ISLAmIC ECONOmIC FORUm LANDS IN DUBAI
In Dubairsquos continued quest for leading the world across a range of spectrums the Emirate accelerated its desire to become the worldrsquos leading hub for Islamic finance by hosting the 10th installment of the World Islamic Economic Forum (WIEF) Delegates from dozens of countries attended to take part in a three-day event held at Madinat Jumeirah which rests alongside Dubairsquos gleaming coastline Held under the patronage of His Highness Sheikh Mohammed Bin Rashid Al Maktoum the
Vice President and Prime Minister of the UAE and Ruler of Dubai key speakers included The Honorary Dr Zeti Akhtar Aziz Governor of the Central Bank of Malaysia HE Kairat Kelimbetov Governor of the National Bank of Kazakhstan The Honorary Datorsquo Sri Mohd Najib Tun Abdul Razal Prime Minister of Malaysia and HE Xavier Bettel Prime Minister of the Grand Duchy of Luxembourg
Launched in 2006 in Malaysia WIEF has grown in tandem with the increased
Delegates from dozens of countries attended WIEF to take part in the three-day event
sophistication and reach of Islamic finance After a successful event in London in 2013 amidst increased interest in Islamic finance across Europe WIEF relocated to Dubai where the local business structure is keen to host halal finance
Said Hamad Buamim President and CEO Dubai Chamber of Commerce and Industry co-organisers of the event ldquo[The forum] is the start of a new chapter of cooperation between Dubai and the world as part of
55
Islamic FinanceMARKET OUTLOOK
wwwthecfomecom
Dubai Capital of Islamic Economy visionhellipestablishing a unified regulatory authority to provide the framework for standards across halal industries will significantly accelerate growth Likewise we need to see increased cooperation and partnership between the public and private sectors This is already happening with great success here in Dubairdquo
The order of global cooperation needed to facilitate growth across the Islamic finance world was more than apparent at WIEF based on how many differing nations were represented at the event The exhibitorrsquos hall was populated with a number of key Malaysian stands representative of the Southeast Asianrsquos ranking as the global leader in Islamic finance Also present were companies from Saudi Arabia also a key locality in the worldrsquos halal industries An interesting yet prescient presence was of attendees from South Korea a nation which is eager to participate in Islamic finance and will be hosting the WIEF Pyeongchang Roundtable in December 2014
ldquoGangwon is a province located in Korea which is very interested in new business opportunities Wersquove realised the strength of the Islamic economy and have come here with many different companies The first type is based in real estate investment We also have companies which want to export their products to the Islamic economy based on their halal qualities And Gangwon will also be hosting the Winter
ldquoKorea is very interested in the strength of the Islamic economy and wants to export its products based on their halal qualitiesrdquo
56 wwwthecfomecom
$247trillionProjected value of halal products industry in lsquo18
125Muslim percentage of global tourism expenditure
STAT FACTSOlympics in 2018 and are presently seeking investments for this as wellrdquo said Seong-hun Kim a member of Gangwon Province Governmentrsquos Export Support Team
Dubai proved to be an excellent place for the event considering how well the UAE is able to so regularly corral international cooperation A key sign of this was witnessed recently when Luxembourg now considered the third most important base for Islamic finance globally opened a finance office in Dubai International Finance Centre The European nation also opened a euro200 sukuk earlier this year which was quickly oversubscribed
The prime minister of Luxembourg offered the WIEF audience a riveting speech which detailed just how international the Forum has become whilst encouraging more of the world to support the growing influence of Islamic finance
Said Bettel ldquoWe need to innovate more economic partnerships for growth We sometimes need to reengineer relationships but also have to make sure these relationships remain sustainable Growth in one country also brings growth to others as long as this is guided by free market initiatives Free trade and free flow of capital combined with innovation leads to prosperity We have all gathered here in Dubai to explore the future of Islamic finance and Luxembourg is also a pioneer of Islamic finance in Europe The Islamic financial sector has a major role to play in continued global growthrdquo
The Islamic Corporation for the Development of the Private Sector (ICD) is based in the Kingdom of Saudi Arabia where it manages an international fund worth $2 billion half of which is available for subscription With shareholders in more than 50 countries and a sovereign sukuk fund recently launched in West Africa the ICDrsquos CEO Khaled M Al Aboodi attended WIEF this year excited to participate in the global event
How does the ICD approach its attendance at the World Islamic Economic ForumI think the Forum is one of the best places for discussing the financial issues of the OEC member countries It has been around for ten years and has grown to become a very important platform for discussion Wersquore here to attend and listen but also to network Itrsquos a great networking platform and a place to share views whilst letting everyone know what we have to offer
How has Islamic finance changed over the yearsOf course itrsquos growing in a large scale Some of it actually needs more support particularly with respect to regulatory frameworks Wersquore trying to partner with many international organisations like the IMF to try to provide support to countries to adapt regulation for Islamic finance Sukuk issuance is one of the biggest issues that needs to be addressed because there is a huge amount of liquidity in this arena Due to issues related to regulation sukuk issuance can be costly But with the regulation we are confident it will be on a level playing field with other forms of finance Compliance is a major area where more work can be done The Forum started with a roundtable on sukuk which shows how helpful WIEF has been over the years
What type of work does ICD do internationallyICD helped the government of Senegal to issue the first sovereign sukuk This was successfully issued last summer Progressing in this manner is something wersquod like to see continue across West Africa in order to utilise its resources with aiding development in the region in mind
QampA WITH KHALED M AL ABOODI CEO OF ICD
Islamic FinanceMARKET OUTLOOK
OFFICIAL SPONSORS
ENDORSED BY OFFICIAL HOST OFFICIAL
COMMUNICATIONS PARTNER
MEYDAN HOTEL DUBAI UAE19 - 20 NOVEMBER 2014
WOMENOMICSthe next emerging market
TAKE PART in making change happen UNITE with business and through leaders from across the globe
PARTICIPATE to the expansion of a modern and inclusive economy
58
Gautam PradhanINTERVIEW
wwwthecfomecom
SUCCESS BEyOND BOUNDARIES
in other management roles such as strategic decision making mentoring and leading efficiency and productivity across a range of other departments and functions as well as a being a catalyst in ensuring that the boardrsquos vision for the organisation is achieved
A significant percentage of NMDCrsquos shares are owned publicly Does the CFO play a role in balancing the interests of the shareholdersAs a CFO balancing the shareholdersrsquo interests is definitely part of my responsibility In order to achieve this goal there needs to be a careful evaluation of each decision while keeping the short-term and long-term goals of the company in mind At NMDC we actively implement a system where we utilise a balance scorecard as a method of ensuring that all our primary objectives are met yet at the same time continuously enhance our relationships with our shareholders
NMDC has completed various projects across the Emirates Are there plans to move abroadAs NMDC moves towards becoming an international player our strategic expansion plans are focused in areas within the GCC region and India In line with this strategy we opened
How has a company with such a unique set of deliverables grown so consistently over the yearsOur organisation strongly believes that the core to our strength is the people process and equipment A strategic decision led by our Board of Directors and the senior management has been implemented that required us to consistently invest in these three aspects to help expand our business beyond the territorial boundaries of the UAE and at the same time enhance what we can offer which is relevant to these segments We attribute our success to the efforts which every employee contributes We also strongly believe in the ldquoWe can make it happenrdquo principle The management raises the index of performance while setting SMART objectives within the organisation and encouraging the employees to achieve them
How has your position as the CFO changed over NMDCrsquos 35 years of operationAs the market evolves and business dynamics change my role as the CFO has become complex and more challenging A few years back I was mainly focused on bookkeeping accounting and other financial responsibilities such as arranging bank facilities But moving forward I became more involved
The UAE is progressively becoming a hub for world-class infrastructure The country has duly impressed the rest of the globe with noteworthy land developments showcased across the emirates Among the remarkable landscapes found in Abu Dhabi are the Corniche Beach Yas Island and Sir Baniyas Island Behind these successful projects is NMDC the dredging division of Abu Dhabi National Oil Company (ADNOC)
In an interview with CFO Magazine Gautam Pradhan Chief Financial Officer NMDC shares an exclusive look into the companyrsquos international blueprint for growth and his dynamic role as a strategic leader of one of the best in dredging and marine construction in the Middle East
59
Gautam PradhanINTERVIEW
wwwthecfomecom
branches in Qatar Bahrain Oman and India This has paid rich dividends recently as projects of strategic importance are bagged in Qatar and Bahrain Furthermore NMDC (UAE) has recently played a key role as a leader of an international consortium with Royal Boskalis Westminister (Netherlands) and Jan De Nul Group (Belgium) for the awarding of the Suez Canal Dredging project in Egypt Moving forward we have devised a strategic approach that will enable us to play a key role in the development of Indiarsquos marine infrastructure
What are the global strategies that are part of the CFOrsquos responsibilitiesAs CFO understanding the macro economic scenario risk analysis and mitigating those risks are all a part of my responsibilities I also have to have a proper comprehension
ldquoA few years back I was mainly focused on financial responsibilities moving forward I became more involved in strategic decision making mentoring and leading productivityrdquo
Gautam PradhanINTERVIEW
60 wwwthecfomecom
of the challenges faced by the company in terms of dealing with foreign contracts direct and indirect taxes and hedging and managing the integration process These are essential to enhance shareholders wealth and mitigate undue risk
How significant is accountancy for NMDC in its operations Why exactlyAccountancy is the lifeline of any company it does not only record the finances it also reflects the health of the organisation The MIS reports analysis trends and statistical information go a long way toward effectively providing
the diagnostic approach essential for the company
How have NMDCrsquos environmental activities helped the companyrsquos bottom lineNMDCrsquos work is well-synchronised with our environmental activities and specifically with nature Our activities are closely linked to sand and water and we view such activities with strategic importance Projects such as increasing water supply to mangroves and beach nourishment help us support the environmental activities while adding to our bottom line
ldquoAccountancy is the lifeline of any company it does not only record the finances it also reflects the health of the organisationrdquo
A burgeoning slice of Abu Dhabi coastline
The largest business awards
in the GCC30th November Dubai
nominate now at wwwstarsofbusinessawardscom
Stars of Business has become an iconic awards brand like no other in the region It recognizes the very best SMEs across 26 business categories Itrsquos universally respected as scientifically assessed and unimpeachably judged
327000 SMEs across the UAE$234 billion estimated total revenue of the SME sector4974 Awards entries in 20131856 Individual company applicants
Presenting Partner Strategic SME Partner Gold Sponsor Gold Sponsor VIP Hospitality Partner Supporting Partner
Trade Facilitator PartnerTrade Credit PartnerLogistics Partner
Institutional Partner Institutional Partner Event Partner
OrganiserPublisherMedia Partner Media PartnerPort Authority Partner
62
David Allen INTERVIEW
wwwthecfomecom
What went into completing your bestseller ndash Getting Things Done (GTD)After twenty years of researching developing and implementing a methodology for achieving stress-free productivity based upon
thousands of hours spent desk-side with
some of the best brightest and busiest people in the world I decided to write the manual for it Thatrsquos what Getting Things Done is
What are the five phases of mastering workflowIn order to get
any situation under control so
you can focus you will utilise these five
steps Whether yoursquore managing your kitchen
or your company you will need to collect and capture what has your attention clarify what if anything to do about it organise it according to what it means to you review and reflect upon it in relation to
Todayrsquos evolving CFO is often caught between the world of business set-up generating revenue managing employees and building strong company infrastructure When can things actually get done What can one do to boost productivity and master workflow World-renowned business coach David Allen has the answers
PRODUCTIvITy PRINCIPLES WITH
DAvID ALLEN
63
David Allen INTERVIEW
wwwthecfomecom
those are greatly subvertedHow does one maintain a fair balance between the time spent planning and actually getting things doneYou simply need to spend just the amount of time you need to to trust that what you are getting done is the right thing to be getting done in the moment It takes as long as it takes to get to that point Why would you do anything less
How can one apply your core productivity and workflow principles to todayrsquos technologically driven environmentThe principles and their techniques are system-independent Whether you have meaningful input from the Internet your smartphone or a conversation in the hall you must engage with it equally Technology has simply increased the flow of input and ease of distraction in your world
There is a lot of talk about how connected wersquove become and how connectivity is driving tremendous business growth Does connectivity actually come with its fair share of downsides
Connectivity is obviously a two-edged sword We can have intimate productive and creative interaction instantly with someone on the other side of the world and we can just as easily be distracted and seduced into those engagements when they may not be the best use of our attention and resources Donrsquot shoot the medium Itrsquos all simply bringing attention to your clarity of direction and priorities or lack thereof
Could you share a few quick tips with our readers to instantly boost productivityWrite everything down that has your attention Decide the very next actions required to get closure on all of them Any next actions that require less than two minutes do instantly Park reminders of everything else somewhere that yoursquoll see when you can do something about them
We are currently facing a massive information overload What are some basic principles you could suggest to mentally organise such large amounts of dataConstantly ask yourself Where am I going Whatrsquos important and rewarding to me Is this information
the whole and then engage your resources with intuitive trust
As a CFO how can you transfer efficient workflow management skills to your employees Itrsquos very difficult to legislate processes for individuals ndash you can really only hold them accountable for their results But if you are managing your own commitments and intersections with them with integrity and rigour it will automatically force your team to ldquostep up to the platerdquo in their own behaviours in order to meet your standards If you request their complete list of their company projects and they canrsquot produce it thatrsquos a sign theyrsquore not in control If they make a commitment to you that they havenrsquot kept thatrsquos data about their performance GTD is simply about good operational business practices
With so many planning and organising activities in your methodology is there a risk of losing spontaneity as a strategistThe reason for these best practices is to optimise freedom creativity and spontaneity Without them
ldquoBut if you are manag-ing your own com-mitments and intersec-tions with them with integrity and rigour it will automatical-ly force them to ldquostep up to the platerdquo in their own behaviours in order to meet your standardsrdquo
64 wwwthecfomecom
supporting that Park whatever you find potentially meaningful somewhere that is easy to access when needed
Being an entrepreneur is a non-stop job How do you ensure that you have an adequate work-life balance Pay attention to what has your attentionmdashwith regard to anything Your health relationships career finances etc Notice when something might be ldquooffrdquo and make good decisions about what you need to do to get it back ldquoonrdquo again
Does your work teach people to be efficient or effective In essence they are the same thing Effective choices are generated by efficiency on a higher level If you want to implement strategy most effectively it demands utilising your resources optimally which is efficiency
Does motivation actually improve quality of work or purely quantityDepends on the focus of the motivation You can be motivated to work harder and you can be motivated to work smarter
What is your favourite productivity mantra that
you implement in your day-to-day lifeUsing my own in-basket and note-taking devices to capture potentially meaningful and valuable ideas and soon afterwards clearing all of them out by deciding what to do about them if anything
Your books seminars and other work inspires many individuals and businesses Who is your personal inspiration or role model I have many about many different aspects of my life The only person though that I ultimately trust as my best guide is my higher self which I try to access as frequently and clearly as I can
Finally what advice would you give to current business owners and aspiring entrepreneurs looking to gain complete control of their life and businessCapture what has your attention clarify what you need to do about it to get it off your mind organise the inventory of all your commitments at all levels review and reflect on all of that regularly relax and trust your inner wisdom to engage with the most appropriate thing in the moment
ldquoIf you want to implement strategy most effectively it demands utilising your resources optimallyrdquo
David Allen INTERVIEW
APPSTECH TALK
wwwthecfomecom 65
mAxImISE BUSINESS lsquoON-THE-GOrsquo WITH THESE HANDy APPS
ipAd SpECIAL
SAMSUNG UNvEILS GALAxY NOTE EDGE
Network
AP
Display
OS
Camera
Video
Audio
Additional Features
GoogleMobile Services
Connectivity
Sensor
Memory
Dimension
Battery
The availability of service may differ by country All functionality features specifications and other product information provided in this document including but not limited to the benefits design pricing components performance availability and capabilities of the product are subject to change without notice or obligation
Samsung Galaxy Note Edge Product Specifications
25G (GSM GPRS EDGE) 850 900 1800 1900 MHz3G (HSPA + 42Mbps) 850 900 1900 2100 MHz4G (LTE Cat 4 15050Mbps) or 4G(LTE Cat 6 30050Mbps)May differ by country and carrier
27 GHz Quad-Core Processor
56 inch (1419mm) Quad HD+ Super AMOLED (2560 x 1440 + 160)
Android 44 (KitKat)
Rear Facing 16 Mega pixel Auto Focus camera with Smart OISFront Facing 37 Mega pixel camera with f19Rear Facing Camera HDR (Rich tone) Selective Focus Rear-cam Selfie Beauty face Virtual Tour Shot ShotampMore Dual CameraFront Facing Camera Selfie Wide Selfie
Codec H264 MPEG-4 H263 VC-1 WMV7 WMV8 Sorenson Spark MP43 VP8 Recording amp Playback up to UHD
Codec MP3 AACAAC+eAAC+ WMA AMR-NBWB Vorbis FLAC()() Ultra High Quality Audio (~192KHz 24 bit) support
Multi WindowUltra Power Saving ModeVoice Recorder (Normal Mode Interview Mode Meeting Mode Voice Memo)Download BoosterS Health 35Dynamic Lock ScreenBriefingEdge screen UX Revolving Interaction Immersive apps(Camera Video S Note)Ticker board Express me Quick Tools Night Clock etc
Chrome Drive Photos Gmail Google Google+ Google Settings Hangouts Maps Play Books Play Games Play Newsstand Play Movie amp TV Play Music Play Store Voice Search YouTube
WiFi 80211 abgnac (HT80) MIMO PCIeGPS GLONASS BeidouNFC Bluetoothreg v 41 (BLE ANT+)IR LED (Remote Control) USB20 MHL 30
Gesture Accelerometer Geo-magnetic Gyroscope RGB IR-LEDProximity Barometer Hall Sensor Finger Scanner UV Heart Rate Monitoring SpO2 (Dependent on market)
32 64 GB Internal memory + microSD slot (up to 128GB)3GB RAM
1513 x 824 x 83mm 174g
Standard battery Li-ion 3000 mAh Fast Charging (Adaptive Fast Charging amp QC20)
wwwthecfomecom66
APPSTECH TALK
AIR DISPLAY
SQUARE REGISTER
Using this app you can connect your iPad to your computer and use it as an additional screen While working on an important presentation or sales proposal you can extend or mirror your computer screen on your iPad This app is compatible with both Mac and Windows computers Note that to use this feature you have to install Air Display on your iPad and a separate free app on your computer The computer and iPad also need to be on the same Wi-Fi network in order to work in-sync
For Mac users the app allows you to connect to up to four screens ndash all at the same time
Apart from the ability to convert your iPad into a wireless display whatrsquos also attractive about this app is that it allows you to control your computer wirelessly using your iPad
This fantastic application can serve as a mobile point of sale for your business It allows you to accept credit card payments ndash including Visa MasterCard Discover and American Express A transaction fee of 275 is charged for every time you swipe a card The sale amount is transferred to your account within two working days
Once you download the app you can sign up and register for a unique card reader solution called the lsquoSquare Readerrsquo (this is free) Square Reader encrypts all card details and ensures that the transaction is secure Once you receive your Square Reader you can connect it to your device and are all set
The application also offers added features such as transaction history connecting to a receipt printer creating employee logins and more
AED 3699
PRICE
Free
PRICE
wwwthecfomecom 67
APPSTECH TALK
DOCUSIGNHave you ever been in a situation where your employees need you to urgently sign a contract but arenrsquot able to physically reach you in time DocuSign solves this problem with its easy-to-use eSignature feature In three easy steps you can sign important documents and securely send them to your intended recipient
First you have to import the document to your device ndash this could be from Dropbox Google Drive or another select applications You then place your signature or any other important legal information you need to include such as initials Once you have finished working on the document send it back via e-mail
Whatrsquos particularly great about DocuSign is the great emphasis it puts on security ndash so that users donrsquot have to worry about getting into any legal trouble
Use DocuSign and never miss a deadline again
Free for basic version
PRICE
MPAYAn initiative by the Dubai eGovernment Department mPay is a simple application that allows you to make important payments Once yoursquove signed up and entered your payment details you are good to go You can pay your Dubai Electricity and Water Authority (DEWA) bills Etisalat utility bills Dubai Police fines Recharge SALIK and much more
A handy feature is its lsquoauto-rechargersquo option which you can use to set automatic payments
Free
PRICE
Opinion CIMAPERSONALITIES
wwwthecfomecom68
NEW HORIZONSBy geetu Ahuja Head of gCC at CIMA
The days of the traditional accountant working within a small community in a small town in a small market have long gone CFOs are now being referred to as Chief Frontier Officers as they travel from market to market overseeing their offices overseas This new expanded role has distinct advantages for both the company and the CFO who gain new skills and new insights from foreign branches a single hand at the helm of many markets provides business perspectives on a global scale and benchmarks across the board
On a personal level working abroad also has huge importance Robert Walters the specialist professional recruitment consultancy recently conducted a survey
of almost 2200 employees across a variety of professions exploring a number of topics which ranged from working practices and attitudes to careers The results highlighted some notable trends particularly for finance professionals
In career progression for example the survey showed that 50 of all accountants see working abroad as either lsquoessentialrsquo or lsquoextremely usefulrsquo to furthering their prospects more than banking professionals lawyers and IT workers ndash a strong indication of how accounting professionals are thinking about their future either within their existing company or with opportunities elsewhere
Accountants with globally recognised qualifications obviously have a greater chance of gaining some experience abroad and the lsquoGen Yrsquo professionals in particular seem ready to pack their bags In a CIMA study conducted in the UK last year over a third of those seeking employment in the
next two years will prioritise opportunities abroad over those in their home countries many of them enticed by the career incentives offered by the Middle East
How quickly can they land what seems to be their dream job What are the realities It may be that the move is simply from one branch to another and the only significant difference is a view from the window but for those expanding rather than changing their roles we have seen a very real need for a depth and breadth of knowledge never needed before
As geographical boundaries are pushed ever-wider a CFOrsquos responsibilities are pushed with them For many finance executives the understanding of their own patch of land is no longer enough they now have to be aware of foreign markets up to speed with foreign trends and au fait with foreign laws There is a need for a new commercial awareness in geography as well as philosophy
As geographical boundaries are pushed ever-wider a CFOrsquos responsibilities are pushed with them
John vargheseQampA
wwwthecfomecom 69
BUSINESSSET UP YOUR
IN THE UNITED ARAB EMIRATES
TO
WAREHOUSESOFFICES INDUSTRIAL LANDFLEXI
Quick and easy company set-up
Less than an hour drive from Dubai
Complete cost-effective packages including licences and facilities
100 foreign ownership
Zero income and corporate taxes
Eligibility for UAE Residence Visa
BUSINESS SET-UP SOLUTIONS STARTING FROM AED 15000 (USD 4000)
RAK FREE TRADE ZONE PROVIDES
RAK Free Trade Zone Authority - Government of Ras Al KhaimahUAE (Ras Al Khaimah) Tel +971 7 2041111 (Dubai) Tel +971 4 7041875 (Abu Dhabi) Tel +971 2 6994888
Germany (Cologne) - Turkey (Istanbul) - India (Mumbai)
Call +971 7 204 1111 Visit wwwrakftzcom Join rakftz
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
Cloud | Mobile | Social MediaBFSI | Education | Energy | Healthcare | Hospitality
Business Intelligence amp Analytics | Enterprise Content Management | Governance Risk amp Compliance
100+ Enterprise Clients | 185+ Professional Team | Global Offices | Strong Domain Expertise
infofinessedirectcom | wwwfinessedirectcom | facebookcomfinessedirect
Visit us GITEXBooth No SRH- 21 | Sheikh Rashid Hall
Stay InformedAny time Any Where
DWTC | 12 - 16 October 2014 | Dubai
38
ERPANALyTICS
wwwthecfomecom
Faster more nuanced IT solutions are available to the modern day CFO Whilst Chief Financial Officers are called upon to analyse data across a number of spectrums the digital tools on hand are likewise being expanded to aid in focusing more squarely on the bottom line
ExCELLING WITH ERP
The global landscape is today firmly entrenched within a digital model As a result CFOs whom are called upon to take a larger role in a number of variables must also increase their abilities with respect to utilising the many upsides which tech innovations offer a business When surveyed about their most pressing concerns CFOs generally return a varying collection of responses Revenue growth regulatory changes and meeting quarterly goals are among the chief concerns Virtually every obstacle can be hurdled by way of maintaining the order of financial reporting and data which has long been
synonymous with the Chief Financial Officerrsquos remit A widening berth of ERP solutions is making this data all the easier to come by
Despite how sophisticated the market is today it was not long ago that ERP departments once spent days processing business reports
Said Rohan Tejura Assistant Vice President Focus Softnet ldquoTraditional ERP systems were solely data repositories Moreover these repositories werenrsquot real time and were incredibly dependent upon locational connectivity With the emergence of smarter development platforms more versatile devices and
39
ERPANALyTICS
wwwthecfomecom
more intuitive designs of system development the overall experience of the ERP now extends from data warehousing to reporting analysis trend mapping business intelligence and governance oriented capabilities Yet these solutions amazingly execute all of these deliverables via portable handheld devices and through cloud environmentsrdquo
New generation ERP systems must now be on the go whilst including up to the minute analytics to provide deeper insight into the business ERP Analytics tools use historical data captured from various business functions to provide valuable information for efficiency and business performance each incredibly priceless to a leading CFO
Finesse is an ERP provider which is continually addressing the transformation of output which the ERP industry is offering the equally transitioning role of CFO
ldquoWe provide end-to-end business management solutions to SMEs and Enterprises Our approach to ERP is much more than providing simply an operational management systemrdquo said Finesse COO Sunil Paul
ldquoWe believe that todayrsquos businesses need much more than integrating sales with inventory accounting and manufacturing but also to have seamless integration with all their sales channels including the point of sales ecommerce and inbound sales solutionsrdquo
A major im-petus of the ERP-cen-tered growth is based on how effec-tive com-prehensive real-time data proves to be for the CFO
40 wwwthecfomecom
before thereby creating new global benchmarks for overall economic growth
Microsoft Arabia CFO Sadrul Khan offered insight into just how far the knowledge economy has influenced regional financial leadership by explaining how one of the most prioritised technologies by CFOs in the region is social platform monitoring
ldquoOne of the five technology choices that CFOs tend to prioritise in boosting productivity efficiencies and faster decision making in the fast paced business environment which include a social platform that monitors trends customer sentiments and helps process mashable data for customer centricity and business growthrdquo said Khan
A major impetus of the ERP-centered growth is based on how effective comprehensive real-time data proves to be for the CFO Whether employed as on-premise ERP software-as-a-service or cloud-based solutions a nearly identical ethos is being utilised Allowing the CFO to quickly access the performance of all facets of a business is paying dividends in the boardroom a reality which is showing itself increasingly in the Middle East
The technologically-charged relationship between ERP solutions and the regionrsquos CFOs is expanding and as a result has catalysed what many see as GCC economic performance outstripping that of many economies outside of the region as a result
In order to compete in todayrsquos fiercely competitive environment organisations need to think both innovatively and out of the box They require more insights about their business and their customers and need to ensure that they are able to meet the expectations of their internal as well as external stakeholders Enormous amounts of data both structured and unstructured is continuously being generated within the internal and external systems of the organisation which if analysed can be of immense value both to the business and subsequently the stakeholders associated with the organisation
With the the era of CFOs labouring over spreadsheets now in the past given how many business frontiers have become so dependent on mobile options such as the cloud more and more tech companies are providing the regionrsquos CFOs with information technology that converts traditional internal and external data into rich visual insights This information is then used for faster decision making and provides the ability for a CFO to assess manage and control risks Regional CFOs have grown enabled to drive corporate strategy accordingly demonstrating how the knowledge economy is now in full force amongst the Gulfrsquos corporates
Given that advanced IT has now become a regular CFO tool the regionrsquos CFOs are subsequently making faster decisions and driving internal growth models with greater speed and agility than ever
Tech companies are providing the regionrsquos CFOs with information technology that converts traditional internal and external data into rich visual insights
ERPANALyTICS
Donrsquot discoveritrsquos counterfeittoner afteritrsquos too lateOriginal HP Toner works first time every time1 unlike cheap toners which fail over half of the people who try it2 Non-HP toner can compromise your printerrsquos performance to give you streaked blotchy or faded prints Only original HP Toner cartridges deliver unmatched quality for the most professional-looking prints 100 of the time1
1 A QualityLogic 2010 study commissioned by HP comparing original HP LaserJet Monochrome print cartridges with nine brands of non-HP toner cartridges available in Europe Middle East and Africa for the HP LaserJet P1505 and P4015 printers HP 36A and 64A For details see wwwqualitylogiccomEMEAmonotonertestpdf 2 From a 2012 EMEA Lyra Research study commissioned by HP Results based on a total of 1050 HP Color LaserJet users who have used both original HP and non-HP toner cartridges of whom 552 experienced problems with non-HP cartridges
copy 2014 Hewlett-Packard Development Company LP
42
Private Equity ANALyTICS
wwwthecfomecom
The rise of PE-backed acquisitions is forcing CFOs to develop an entirely new set of skills
THE PRIvATE EQUITy CFO
The CFOrsquos utility in the world of private equity is without question on the rise The once-held belief of the CFO existing solely as the ldquoaccounting guyrdquo has been abandoned Over the last 20 years the role of CFO has become more demanding - requiring not just finance and accounting acumen but also a financial literacy in corporate planning risk management MampA assetliability management and regulation This evolution has been driven by a number of
key factors Yet the private equity industry which is now reshaping the corporate landscape through active ownership is by far the most significant factor driving change within the role of the CFO
PE-backed buyers today represent a larger percentage of overall buyers in the corporate acquisition marketplace than ever before Data provider Prequin estimates that as of June 2014 the capital raised by PE funds that
has not yet been deployed amounts to $114 trillion globally The result of this ldquodry powderrdquo is that a vast quantity of corporate acquisitions in the coming years will be undertaken by the private equity industry As such CFOs will be more accountable to demanding ldquosmart moneyrdquo shareholders than at any point in recent history Budgeting accounting and financial reporting will no longer exist as sole priorities but as a core competency among a
ldquoBy effec-tively using real-time data CFOs can create a dynamic process that proac-tively drives performance account-ability and value crea-tionrdquo
By Aaron Heidari
43
Private Equity ANALyTICS
wwwthecfomecom
robust set of complimentary and required skills Most of all the bar for CFOs is rising as PE investors will only accept above-average performance from their management teams
CFOs were once more reactive in function setting budgets based on other executivesrsquo plans and managing the flow of reporting to shareholders on a quarterly and yearly basis Today CFOs are required to become proactive managers of their respective businesses alongside their C-suite compatriots using a granular data-driven approach to aggregate analyse implement and report on every aspect of a companyrsquos operations
An important tool to drive this value creation process are KPIs Yet KPI structures including both aggregation and output are generally not up to the standards required of private equity investors prior to an investment being made
ldquoThe benefits of using KPIs and monthly reporting packages are significant By effectively using real-time data that is actionable and by partnering with functional area leaders within the organisation company CFOs can create a dynamic process that proactively drives performance accountability and value creationrdquo said Amanda Robinson Vice President of Accordion International in Dubai a consulting firm which is comprised of former private equity and investment banking professionals who
MENA region Cumulative Funds Under Management Since 2008
Source Zawya private Equity Monitor
19 636 20 36321 586
22 64323 506 24 250
-
5000
10000
15000
20000
25000
2008 2009 2010 2011 2012 2013
Cu
mu
lati
ve f
un
ds
($ m
)
$15mAverage MENA PE investment size in lsquo13
50Percentage of investment in IT and energy sectors
STAT FACTS
44 wwwthecfomecom
work with companies to deliver cost-effective project execution services
Active shareholders whose money it is being spent will typically require a data-driven justification before approving any budgets capital expenditures or new acquisitions Furthermore in many private equity backed companies the use of debt and the matching of shorter-term bank financing with longer-term investments will only be considered after a robust analysis is conducted to understand the companyrsquos ability to service that debt in the future This evaluation is not simply to identify revenues expenses and profits Itrsquos about drilling down into every transaction and rooting out data processing and reporting At least that is the expectation
The most valuable CFOs are those who have the ability not just to scrutinise and understand the financials but all also possess a wider grasp of the underlying data which truly comprise the business As an investor who has just acquired a stake in a new business I want a CFO who can manage the transition and stay ahead of my expectations Most of all a CFO should impress upon the companyrsquos shareholders a new way of doing business The first 100 days of an acquisition are said to be the most important During this period the CFOrsquos worth will be established when the new financial plan is due and the platform for the next five years of growth is presented
A CFO should man-age the tran-sition stay ahead of expectations and impress upon the companyrsquos shareholders a new way of doing business
Investment Volume By Sector Since 2006
Investment Volume By Sector in 2013
Source Zawya private Equity Monitor
1
3
30
17
3
28
3
4
6
4
6
5
17
9
9
6
9
5
8
6
6
2
3
10
Education
Education
Information Technology
Information Technology
Other
Other
Telecoms
Telecoms
Media
Media
Transport
Transport
Oil amp Gas
Oil amp Gas
Healthcare
Healthcare
Consumer goods
Consumer goods
Food amp Beverages
Food amp Beverages
Leisure
Leisure
Manufacturing
Manufacturing
ANALyTICS
Private Equity
2000857 NBAD ratibi mag ad 200x268 Finalindd 1 92514 1017 AM
46 wwwthecfomecom
THE FUTURE OFACCOUNTING EDUCATIONAddRESSINg THECOMpETENCY CRISIS
Have you ever stopped to think about how the accounting profession has changed since you graduated from college Recent graduates can answer this question by reflecting on the last two or three years whereas for other more seasoned professionals answering this question requires a bit more thought and memory searching Indeed we can all think of ways that the field of accounting is remarkably different today from the one we likely envisioned during our college daysmdashregardless of which decade we each donned our cap and gown This gradual transformation of the accounting profession leads to two important questions related to competencies bull Which competencies are important for success inaccounting todaybull Were these competencies consciously developed as partof your accounting degree programme
We suspect that more than a few of you would answer ldquonordquo to the second question Put another way our profession may be facingmdashmore so than at any time in the pastmdasha ldquocompetency crisisrdquo that is a gap between the competencies needed for professional success and those taught in our college classrooms today We propose a three-pronged strategy or ldquogame planrdquo for overcoming this competency crisis and in turn better preparing accounting graduates for the challenging world they will face First all of us accountants need to understand the changes that have already taken place in our profession and perhaps more importantly anticipate the changes that are on the horizon Second we need to educate ourselves and future generations of accountants so that as a collective group we can deliver the expanding set of competencies demanded in todayrsquos dynamic organisational
contexts Third as professional organisations and as individuals we need to think beyond ourselves by asking How can I (or we) help the accounting profession address the competency crisis
A Shift Toward Integrated ThinkingMany articles and white papers have been written that describe in detail the changes that have occurred in our profession over the last few decades but for our purposes wersquod like to distill these changes down to one crucial idea How does the accounting function add value to an organisation Accountants have evolved from support-oriented personnel who hand off information to others who actually make decisions into business partners who ldquohave a seat at the tablerdquo with managers
By peter C Brewer James E Sorensen CpA CgMA and david E Stout
47wwwthecfomecom
1048576bull What regulatory risks mayaccompany the proposal
1048576bull What social and environmentalfactors will we face if for example the proposal requires investing in overseas operations
1048576bull What types of employeeresistance may arise if we implement the proposal and how will we overcome the root causes of any such resistance
1048576bull Can and how should we valuefuture options associated with the proposal such as expanding or contracting the investment over time as new information becomes available
1048576bull Should we use debt or equity tofund the proposal
In short accountants have evolved to become integrated thinkers who enable EPM by partnering with managers across the organisation to add value Yet as EPM has gradually become the centrepiece of our professionrsquos value proposition accounting education hasnrsquot done enough to embrace it To overcome this gap wersquod like to further suggest that the concepts of competency integration and EPM need to come ldquofront and centrerdquo as we move forward in educating the next generation of successful accounting practitioners
Accounting Education No Longer on the SidelinesRecently a task force consisting of members of IMAreg (Institute of Management Accountants) and members of the Management Accounting Section (MAS) of the American Accounting Association (AAA) addressed the competency issue How should accounting education change fundamentally to help close the competencies gap The efforts of the task force led to
cash flows and how to apply discounted cash flow (DCF) decision models such as net present value (NPV) is of foundationalmdashsome might say critical mdash importance But integrated thinkers draw on an understanding of organisational strategy coupled with a broader set of competencies (beyond what might be considered technical or foundational knowledge) when making these types of decisions For example they consider how behavioural issues may influence the capital investment decision-making process Perhaps the financial estimates contained in the NPV analysis are too optimistic because the manager who prepared the numbers has a vested interest in seeing the project approved Decision makers also need to consider issues such as leasing vs buying a capital asset and the corresponding impacts on the financial statements and ratios that are tracked by investors and lenders What nonfinancial factors are associated with the proposed investment Add in the tax consequences of capital investment decisions coupled with the need to maintain internal control over any new business processes tied to these decisions and the need to think in an integrated fashion across a variety of accounting competencies becomes apparent
Furthermore becoming a true business partner with managers across the organisation requires more than simply integrating various accounting competencies It also means thinking like a business manager or a chief executive officer (CEO) Returning to the capital budgeting example an integrated thinker will ask questions such as
across the organisation Together they formulate and plan strategies then participate in collaborative decision-making processes that execute those strategies in a manner that adds stakeholder value Said another way accountants have evolved to become enterprise performance managers This shift in our orientation from a support function to an enterprise performance management (EPM) role has enormous implications for defining the determinants of success within our profession the most important of which involves becoming collaborators and ldquointegrated thinkersrdquo Take for example a common but important business decision process capital investment analysis Certainly technical knowledge regarding how to estimate relevant after-tax
48 wwwthecfomecom
expanding capital budgeting discussions to include financial statement impacts tax consequences and internal control issues integrates topical coverage across the External Reporting and Analysis Taxation Compliance and Planning and Assurance and Internal Control competencies shown in Figure 1
Third accounting curricula can incorporate a broader set of management competencies For example evaluating capital investment proposals from the perspectives of change management (Leadership) social and environmental issues (Ethics and Social Responsibility) regulatory concerns (Governance Risk and Compliance) and capital structure (Additional Core Business Competencies) brings a CEOrsquos perspective to the decision-making process
Fourth accounting curricula should include foundational competencies such as proficiency with spreadsheets and written and oral communication In the context of capital budgeting this may include asking students to use Microsoft Excel to perform a sensitivity analysis and then to present their findings to the entire class
Working to Fix the ProblemAt this point although you may agree with us that therersquos a competency crisis within the accounting profession you may be wondering What does this have to do with me What can my organisation do to help address this so-called competency crisis The answer a lot Practice partners and academic partners can help the accounting profession overcome the competency crisis That said letrsquos take a closer look at the role of practice partners first
improvement) and accounting competencies (external reporting and analysis planning analysis and control taxation compliance and planning information systems assurance and internal control and professional values ethics and attitudes) Of critical importance to the framework is the assumption that the set of competencies contained in Figure 1 would be developed and integrated over time through a blend of formal education (including continuing education) training and job experience
What levels of integrationmdashon the road to developing integrated thinkers in accountingmdashare possible First accounting educators can integrate within a single accounting competency So referring back to our capital budgeting discussion teaching computational models such as NPV analysis coupled with a review of various behavioural issues associated with capital investment decisions would be an example of integrating within the Planning Analysis and Control competency listed in Figure 1
Second professors can integrate across accounting competencies For example
a recently published article that contains a proposed framework for accounting education reproduced here as Figure 1 The framework is general in the sense that itrsquos meant to apply to all accounting students not subgroups based on career specialisation such as tax assurance services corporate finance and the like Itrsquos based on the idea that accounting educators can better prepare students to deliver our professionrsquos EPM value proposition through integrated competency-oriented curricula (For more see ldquoFocusing Accounting Curricula on Studentsrsquo Long-Run Careers Recommendations for an Integrated Competency-Based Framework for Accounting Educationrdquo in the May 2014 edition of Issues in Accounting Education)
A glance at Figure 1 reveals three levels of competencies foundational competencies (communication ability to leverage technology and analytical thinking and problem solving among others) broad management competencies (including leadership ethics and social responsibility and process management and
Proposed Competencies-based Framework for Accounting Education
FOUNDATIONALCOMPETENCIES
ACCOUNTING COMPETENCIES
BROAD MANAGEMENT COMPETENCIES
leadership
ExternalReportingamp Analysis
PlanningAnalysis
amp Control
TaxationComplianceamp Planning
InformationSystems
Assuranceamp InternalControl
ProfessionalValues Ethics
amp Attitudes
Communication
Quantitative
Interpersonal
Technological
Analytical Thinking ampProblem Solving
Ethics amp SocialResponsibility
ProcessManagement ampImprovement
GovernanceRisk amp
Compliance
AdditionalCore BusinessCompetencies
Although you may agree with us that therersquos a competency crisis within the account-ing profes-sion you may bewondering What does this haveto do with me
A practice partner should be or become a CMAreg (Certified Management Accountant) maintain professional certification by completing required Continuing Professional Education (CPE) hours and regularly read the IMA publications Strategic Finance and Management Accounting Quarterly
In addition there are a number of excellent resources that deal with topics covered in this article and that IMA makes available to its members
Strategic Finance PowerPacks(wwwimanetorg SFPowerPacks) These are resources focused on contemporary topics similar to those discussed earlier Current offerings include Risk Management Strategic Planning IT Skills amp Software and Internal Controls Each PowerPack includes a combination of resources such as research studies articles and links to webinars
Statements on Management Accounting (SMAs)(wwwimanetorgresources and_publicationsresearch_ studies_resourcesstatements on_management_accounting aspx) SMAs represent monographs classified into one of the following six categories Leadership Strategies and Ethics Technology Enablement Strategic Cost Management Business Performance Management Finance Governance Risk and Compliance and the Practice of Management Accounting Multiple items are available within each category For example the Practice of Management Accounting category includes (among other items)
49wwwthecfomecom
the Definition of Management Accounting and Implementing Shared Service Centres
Research Studies (wwwimanetorgresources_and_publicationsResearch_Studies_and_ResourcesAll_reportsaspx) The ldquoThoughtLeadershiprdquo section of IMArsquos website includes research covering a broad range of issues classified into seven categories For example under the ldquoGlobal Business Environmentrdquo category the following two research reports are available ldquoKey Differences Between IFRS and US GAAP Impact on Financial Reportingrdquo and ldquoCosting Methodologies and Cost Management Practices in the Peoplersquos Republic of Chinardquo
IMA Leadership Academy (www imanetorgprograms_events leadership_academyaspx) As described on the IMA website this programme is designed to assess a memberrsquos leadership status enhance that individualrsquos skills (principally through monthly webinars) and recognise leadership achievements These benefits are free to members
How You Can Make a Bigger Impact In addition to attending local regional and national IMA meetings consider inviting a small group of students to each chapter meeting This could be a wonderful (and relatively low-cost) option for mentoring aspiring accountants and finance professionals providing networking opportunities and introducing students to cutting-edge issues regarding the practice of management accounting Joining a university accounting
advisory group may be another way to influence the development of EPM in that institutionrsquos curriculum design
Other methods to enhance EPM in your organisation include (1) forming user groups within your company your local IMA chapter or your industry to review and share EPM experiences (2) encouraging advancement in the firm to be linked to EPM proficiency (3) focusing your companyrsquos recruiting efforts on candidates who display a background in andor understanding of EPM and (4) organising cross training within your company to enhance a mutual understanding of each otherrsquos respective roles
Finally visit the Competency CrisisTM website (http competencycrisisorg) set up by IMA to unite the accounting and finance constituencies professionals students employers academics and professorsmdashand explore competency issues through the lens of each stakeholder group The site is designed to ldquoencourage a discourse spur action and create a community dedicated to resolving the serious crisis of competency present in the professionrdquo Special sections of the website are devoted to educators students and employers professionals
Our Partners in Education Much like a practice partner an academic partner should be or become a CMA maintain professional accreditation by completing CPE hours and regularly read IMArsquos publications
Academic members of IMA can pursue and actively promote the CMA programme at their respective institutions
50 wwwthecfomecom
IMArsquos website contains helpful resources including an exam content overview content specification outlines for each of the two parts of the CMA exam and learning outcome statements The current exam covers some of the professional competencies represented in Figure 1 A summary of changes to exam content which will be effective in January 2015 is provided on the IMA website in News amp Media Relations which is located under ldquoAbout IMArdquo (See the press release dated March 24 2014) Other helpful resources include ldquoICMA Announces CMA Exam Content Changesrdquo in the April 2014 issue of Strategic Finance as well as ldquoManagement Accounting Career Readiness Shaping YOUR Curriculumrdquo
These forthcoming changes are based on the most recent IMA study of the knowledge and skills needed by management accountants from the view of CFOs controllers and other accountingfinance professionals from around the world
Also consider taking a group of your students to the IMA Student Leadership Conference held each November The Conference provides excellent networking opportunities for you your students and practicing professionals Students can learn firsthand from Conference presenters the challenges and opportunities facing finance and accounting professionals today
Moreover if your institution doesnrsquot currently have an IMA Student Chapter consider forming one One of the authors of this article David Stout reinstituted the student chapter at his school (Youngstown State University) after travelling with a group of his students to the IMA
Student Leadership Conference in Cleveland Ohio Through an IMA Student Chapter on campus students are able to work closely with a sponsoring local IMA chapter and bring to campus speakers who are experts in a wide range of topics including those discussed earlier in this article Each year student chapters compete for an Award of Excellence (AOE) and recognition as an Outstanding Student Chapter In addition IMA student members are able to engage in networking activities leadership training mentoring and community service programmesmdashall through their local chapter
You also might consider volunteering to serve as a Campus Advocate In this role yoursquoll represent IMA in all major matters of interest to your students (scholarship opportunities starting a student chapter mentoring and the like) and to your institution (for example leveraging IMA resources to advance the relevancy of the accounting curriculum use of educational case studies published in the IMA Educational Case Journal and access to IMArsquos ethics curriculum)
And if you havenrsquot yet done this ask IMA to endorse your accounting programme (information is available at www imanetorgeducator_resources indexaspx) This programme is designed to identify business curricula that meet the quality educational standards required to prepare students to earn the CMA designation Endorsement is based on an analysis of the curriculum and topics covered on the two-part CMA exam Currently 12 programmes have been endorsed
Finally if your school has an IMA Student Chapter consider participating in the annual IMA Student Case Competition where students are asked to propose a solution to a real world problem (Cases are solicited each year by Raef Lawson IMA VP of Research and Policy and IMA Professor in-Residence) Finalists make their presentations at IMArsquos Annual Conference amp Exposition before a set of judges consisting of accounting faculty members and practitioners Each year a new case is published in the August issue of Strategic Finance for students to use for that yearrsquos competition
Working TogetherIn this article we have summarised the changes that have affected the accounting profession and provided a competencies-based framework for guiding accounting educators in responding productively to those changes As a management accountant you know that implementing change in any organisation let alone within an entire profession never comes easily To be successful in overcoming our professionrsquos competency crisis IMArsquos practice and academic partners will need to assume leadership roles in defining enterprise performance management as the cornerstone of the accounting professionrsquos value proposition
This article was orginally published in the August 2014 issue of Strategic Finance It appears here with the permission of The Association of Accountants and financial professionals in Business
We need to educate ourselvesand future generations of account-ants so that as a collec-tive group we can deliver theexpanding set of com-petenciesdemanded in todayrsquos dynamicorgani-sational contexts
THE POWERFUL AND THRIFTY OFFICE ALL-ROUNDERS
The new ECOSYS M3560idn series will astound you With their print speeds of up to 60 pages per minute they are among the most productive A4 bw multifunctionals on the market We nevertheless managed to keep their ecological footprint and total cost of ownership impressively low by using our well-known ECOSYS technology and equipping the devices with our renowned long-life components The result Not only less waste and lower maintenance costs but also less hassle for you and all your colleagues You will also greatly appreciate the many customisation possibilities of the devices equipped with KYOCERArsquos open solution platform HyPAStrade as it allows you to tailor the device to your needs So yes we are proud of our new range of MFPs and can hardly wait to share their numerous benefits with you
For more information please contactKYOCERA Document Solutions Middle East | PB Box 500817 DubaiUAE | Tel +9714 4330 412 | Fax +9714 4231 944KYOCERA Document Solutions Europe BV - wwwkyoceradocumentsolutionseuKYOCERA Document Solutions Inc - wwwkyoceradocumentsolutionscom
52
ACCAINTERVIEW
wwwthecfomecom
GLOBAL By ASSOCIATION
across the region from our key employers and learning provider partners to our active and growing student and member base I want to understand their challenges and priorities and how ACCA can work with them to help support the economic success of the region
What can a CFO gain from working with ACCAThe ACCA qualification is about complete finance professionals For CFOs it brings the technical knowledge vital to business success complemented with the strategic management skills and ethical competence crucial to an organisationrsquos success As an organization ACCA in the UAE brings CFOs access to that local and global network of peers and expertise along with our leading research and insights that help them to keep up to date on the issues that matter most
Are there any initiatives in place to leverage the recently announced partnership with AAA
How are the ACCArsquos many years of activity being applied to the Middle EastACCA has now had a presence in the UAE for well over a decade During that time we have established strong relationships across the Middle East epitomised by the recent signing of our Strategic Partnership with AAA As a national body in choosing to partner with ACCA they recognised the local and global perspective we bring We are continuing to work with students members and employers across the Middle East to build their networks knowledge and business success through events research and insights and access to a growing number of online resources
Which initial priorities are among your key aims upon joining the organisationrsquos efforts in the UAEIn the first few months I hope to build on the success of the team in the UAE My priority will be to meet as many of our key stakeholders
The Association for Chartered Certified Accountants (ACCA) provides its services across a number of international borders The recent announcement of Lindsay Degouve de Nuncques as the new head of the Associationrsquos UAE chapter further exemplifies the ACCArsquos reach based on her previous work in the UK Nuncques shares here what she brings to the Middle East and just how globalisation has driven her ascent
53
ACCAINTERVIEW
wwwthecfomecom
The strategic partnership with AAA is the first of its kind in the region Students who complete the UAECA qualification will be entitled to both the AAA and ACCA designations and ACCA members in the UAE will also be eligible to apply for AAA membership This is a very exciting development in the market and together AAA and ACCA will be working to deliver maximum value to all our stakeholders from this partnership As we launch the UAECA qualification this activity will start in earnest
Which key industries will you be spotlighting in the Middle East in the months aheadOur experience of working across all sectors and levels of organisations globally gives ACCA a unique insight into all types of industries We will continue to be working with employers across the spectrum in the months ahead to help them gain the insight and make the connections that drive businesses to succeed at whatever they do
ldquoThe ACCA qualification is about complete finance professionals For CFOs it brings the technical knowledge vital to business success complemented with the strategic management skillsrdquo
54
Islamic FinanceMARKET OUTLOOK
wwwthecfomecom
In its 10th instalment the Forum is hosted in Dubai as a direct result of the UAErsquos increasing importance in the world of global Islamic finance
THE WORLD ISLAmIC ECONOmIC FORUm LANDS IN DUBAI
In Dubairsquos continued quest for leading the world across a range of spectrums the Emirate accelerated its desire to become the worldrsquos leading hub for Islamic finance by hosting the 10th installment of the World Islamic Economic Forum (WIEF) Delegates from dozens of countries attended to take part in a three-day event held at Madinat Jumeirah which rests alongside Dubairsquos gleaming coastline Held under the patronage of His Highness Sheikh Mohammed Bin Rashid Al Maktoum the
Vice President and Prime Minister of the UAE and Ruler of Dubai key speakers included The Honorary Dr Zeti Akhtar Aziz Governor of the Central Bank of Malaysia HE Kairat Kelimbetov Governor of the National Bank of Kazakhstan The Honorary Datorsquo Sri Mohd Najib Tun Abdul Razal Prime Minister of Malaysia and HE Xavier Bettel Prime Minister of the Grand Duchy of Luxembourg
Launched in 2006 in Malaysia WIEF has grown in tandem with the increased
Delegates from dozens of countries attended WIEF to take part in the three-day event
sophistication and reach of Islamic finance After a successful event in London in 2013 amidst increased interest in Islamic finance across Europe WIEF relocated to Dubai where the local business structure is keen to host halal finance
Said Hamad Buamim President and CEO Dubai Chamber of Commerce and Industry co-organisers of the event ldquo[The forum] is the start of a new chapter of cooperation between Dubai and the world as part of
55
Islamic FinanceMARKET OUTLOOK
wwwthecfomecom
Dubai Capital of Islamic Economy visionhellipestablishing a unified regulatory authority to provide the framework for standards across halal industries will significantly accelerate growth Likewise we need to see increased cooperation and partnership between the public and private sectors This is already happening with great success here in Dubairdquo
The order of global cooperation needed to facilitate growth across the Islamic finance world was more than apparent at WIEF based on how many differing nations were represented at the event The exhibitorrsquos hall was populated with a number of key Malaysian stands representative of the Southeast Asianrsquos ranking as the global leader in Islamic finance Also present were companies from Saudi Arabia also a key locality in the worldrsquos halal industries An interesting yet prescient presence was of attendees from South Korea a nation which is eager to participate in Islamic finance and will be hosting the WIEF Pyeongchang Roundtable in December 2014
ldquoGangwon is a province located in Korea which is very interested in new business opportunities Wersquove realised the strength of the Islamic economy and have come here with many different companies The first type is based in real estate investment We also have companies which want to export their products to the Islamic economy based on their halal qualities And Gangwon will also be hosting the Winter
ldquoKorea is very interested in the strength of the Islamic economy and wants to export its products based on their halal qualitiesrdquo
56 wwwthecfomecom
$247trillionProjected value of halal products industry in lsquo18
125Muslim percentage of global tourism expenditure
STAT FACTSOlympics in 2018 and are presently seeking investments for this as wellrdquo said Seong-hun Kim a member of Gangwon Province Governmentrsquos Export Support Team
Dubai proved to be an excellent place for the event considering how well the UAE is able to so regularly corral international cooperation A key sign of this was witnessed recently when Luxembourg now considered the third most important base for Islamic finance globally opened a finance office in Dubai International Finance Centre The European nation also opened a euro200 sukuk earlier this year which was quickly oversubscribed
The prime minister of Luxembourg offered the WIEF audience a riveting speech which detailed just how international the Forum has become whilst encouraging more of the world to support the growing influence of Islamic finance
Said Bettel ldquoWe need to innovate more economic partnerships for growth We sometimes need to reengineer relationships but also have to make sure these relationships remain sustainable Growth in one country also brings growth to others as long as this is guided by free market initiatives Free trade and free flow of capital combined with innovation leads to prosperity We have all gathered here in Dubai to explore the future of Islamic finance and Luxembourg is also a pioneer of Islamic finance in Europe The Islamic financial sector has a major role to play in continued global growthrdquo
The Islamic Corporation for the Development of the Private Sector (ICD) is based in the Kingdom of Saudi Arabia where it manages an international fund worth $2 billion half of which is available for subscription With shareholders in more than 50 countries and a sovereign sukuk fund recently launched in West Africa the ICDrsquos CEO Khaled M Al Aboodi attended WIEF this year excited to participate in the global event
How does the ICD approach its attendance at the World Islamic Economic ForumI think the Forum is one of the best places for discussing the financial issues of the OEC member countries It has been around for ten years and has grown to become a very important platform for discussion Wersquore here to attend and listen but also to network Itrsquos a great networking platform and a place to share views whilst letting everyone know what we have to offer
How has Islamic finance changed over the yearsOf course itrsquos growing in a large scale Some of it actually needs more support particularly with respect to regulatory frameworks Wersquore trying to partner with many international organisations like the IMF to try to provide support to countries to adapt regulation for Islamic finance Sukuk issuance is one of the biggest issues that needs to be addressed because there is a huge amount of liquidity in this arena Due to issues related to regulation sukuk issuance can be costly But with the regulation we are confident it will be on a level playing field with other forms of finance Compliance is a major area where more work can be done The Forum started with a roundtable on sukuk which shows how helpful WIEF has been over the years
What type of work does ICD do internationallyICD helped the government of Senegal to issue the first sovereign sukuk This was successfully issued last summer Progressing in this manner is something wersquod like to see continue across West Africa in order to utilise its resources with aiding development in the region in mind
QampA WITH KHALED M AL ABOODI CEO OF ICD
Islamic FinanceMARKET OUTLOOK
OFFICIAL SPONSORS
ENDORSED BY OFFICIAL HOST OFFICIAL
COMMUNICATIONS PARTNER
MEYDAN HOTEL DUBAI UAE19 - 20 NOVEMBER 2014
WOMENOMICSthe next emerging market
TAKE PART in making change happen UNITE with business and through leaders from across the globe
PARTICIPATE to the expansion of a modern and inclusive economy
58
Gautam PradhanINTERVIEW
wwwthecfomecom
SUCCESS BEyOND BOUNDARIES
in other management roles such as strategic decision making mentoring and leading efficiency and productivity across a range of other departments and functions as well as a being a catalyst in ensuring that the boardrsquos vision for the organisation is achieved
A significant percentage of NMDCrsquos shares are owned publicly Does the CFO play a role in balancing the interests of the shareholdersAs a CFO balancing the shareholdersrsquo interests is definitely part of my responsibility In order to achieve this goal there needs to be a careful evaluation of each decision while keeping the short-term and long-term goals of the company in mind At NMDC we actively implement a system where we utilise a balance scorecard as a method of ensuring that all our primary objectives are met yet at the same time continuously enhance our relationships with our shareholders
NMDC has completed various projects across the Emirates Are there plans to move abroadAs NMDC moves towards becoming an international player our strategic expansion plans are focused in areas within the GCC region and India In line with this strategy we opened
How has a company with such a unique set of deliverables grown so consistently over the yearsOur organisation strongly believes that the core to our strength is the people process and equipment A strategic decision led by our Board of Directors and the senior management has been implemented that required us to consistently invest in these three aspects to help expand our business beyond the territorial boundaries of the UAE and at the same time enhance what we can offer which is relevant to these segments We attribute our success to the efforts which every employee contributes We also strongly believe in the ldquoWe can make it happenrdquo principle The management raises the index of performance while setting SMART objectives within the organisation and encouraging the employees to achieve them
How has your position as the CFO changed over NMDCrsquos 35 years of operationAs the market evolves and business dynamics change my role as the CFO has become complex and more challenging A few years back I was mainly focused on bookkeeping accounting and other financial responsibilities such as arranging bank facilities But moving forward I became more involved
The UAE is progressively becoming a hub for world-class infrastructure The country has duly impressed the rest of the globe with noteworthy land developments showcased across the emirates Among the remarkable landscapes found in Abu Dhabi are the Corniche Beach Yas Island and Sir Baniyas Island Behind these successful projects is NMDC the dredging division of Abu Dhabi National Oil Company (ADNOC)
In an interview with CFO Magazine Gautam Pradhan Chief Financial Officer NMDC shares an exclusive look into the companyrsquos international blueprint for growth and his dynamic role as a strategic leader of one of the best in dredging and marine construction in the Middle East
59
Gautam PradhanINTERVIEW
wwwthecfomecom
branches in Qatar Bahrain Oman and India This has paid rich dividends recently as projects of strategic importance are bagged in Qatar and Bahrain Furthermore NMDC (UAE) has recently played a key role as a leader of an international consortium with Royal Boskalis Westminister (Netherlands) and Jan De Nul Group (Belgium) for the awarding of the Suez Canal Dredging project in Egypt Moving forward we have devised a strategic approach that will enable us to play a key role in the development of Indiarsquos marine infrastructure
What are the global strategies that are part of the CFOrsquos responsibilitiesAs CFO understanding the macro economic scenario risk analysis and mitigating those risks are all a part of my responsibilities I also have to have a proper comprehension
ldquoA few years back I was mainly focused on financial responsibilities moving forward I became more involved in strategic decision making mentoring and leading productivityrdquo
Gautam PradhanINTERVIEW
60 wwwthecfomecom
of the challenges faced by the company in terms of dealing with foreign contracts direct and indirect taxes and hedging and managing the integration process These are essential to enhance shareholders wealth and mitigate undue risk
How significant is accountancy for NMDC in its operations Why exactlyAccountancy is the lifeline of any company it does not only record the finances it also reflects the health of the organisation The MIS reports analysis trends and statistical information go a long way toward effectively providing
the diagnostic approach essential for the company
How have NMDCrsquos environmental activities helped the companyrsquos bottom lineNMDCrsquos work is well-synchronised with our environmental activities and specifically with nature Our activities are closely linked to sand and water and we view such activities with strategic importance Projects such as increasing water supply to mangroves and beach nourishment help us support the environmental activities while adding to our bottom line
ldquoAccountancy is the lifeline of any company it does not only record the finances it also reflects the health of the organisationrdquo
A burgeoning slice of Abu Dhabi coastline
The largest business awards
in the GCC30th November Dubai
nominate now at wwwstarsofbusinessawardscom
Stars of Business has become an iconic awards brand like no other in the region It recognizes the very best SMEs across 26 business categories Itrsquos universally respected as scientifically assessed and unimpeachably judged
327000 SMEs across the UAE$234 billion estimated total revenue of the SME sector4974 Awards entries in 20131856 Individual company applicants
Presenting Partner Strategic SME Partner Gold Sponsor Gold Sponsor VIP Hospitality Partner Supporting Partner
Trade Facilitator PartnerTrade Credit PartnerLogistics Partner
Institutional Partner Institutional Partner Event Partner
OrganiserPublisherMedia Partner Media PartnerPort Authority Partner
62
David Allen INTERVIEW
wwwthecfomecom
What went into completing your bestseller ndash Getting Things Done (GTD)After twenty years of researching developing and implementing a methodology for achieving stress-free productivity based upon
thousands of hours spent desk-side with
some of the best brightest and busiest people in the world I decided to write the manual for it Thatrsquos what Getting Things Done is
What are the five phases of mastering workflowIn order to get
any situation under control so
you can focus you will utilise these five
steps Whether yoursquore managing your kitchen
or your company you will need to collect and capture what has your attention clarify what if anything to do about it organise it according to what it means to you review and reflect upon it in relation to
Todayrsquos evolving CFO is often caught between the world of business set-up generating revenue managing employees and building strong company infrastructure When can things actually get done What can one do to boost productivity and master workflow World-renowned business coach David Allen has the answers
PRODUCTIvITy PRINCIPLES WITH
DAvID ALLEN
63
David Allen INTERVIEW
wwwthecfomecom
those are greatly subvertedHow does one maintain a fair balance between the time spent planning and actually getting things doneYou simply need to spend just the amount of time you need to to trust that what you are getting done is the right thing to be getting done in the moment It takes as long as it takes to get to that point Why would you do anything less
How can one apply your core productivity and workflow principles to todayrsquos technologically driven environmentThe principles and their techniques are system-independent Whether you have meaningful input from the Internet your smartphone or a conversation in the hall you must engage with it equally Technology has simply increased the flow of input and ease of distraction in your world
There is a lot of talk about how connected wersquove become and how connectivity is driving tremendous business growth Does connectivity actually come with its fair share of downsides
Connectivity is obviously a two-edged sword We can have intimate productive and creative interaction instantly with someone on the other side of the world and we can just as easily be distracted and seduced into those engagements when they may not be the best use of our attention and resources Donrsquot shoot the medium Itrsquos all simply bringing attention to your clarity of direction and priorities or lack thereof
Could you share a few quick tips with our readers to instantly boost productivityWrite everything down that has your attention Decide the very next actions required to get closure on all of them Any next actions that require less than two minutes do instantly Park reminders of everything else somewhere that yoursquoll see when you can do something about them
We are currently facing a massive information overload What are some basic principles you could suggest to mentally organise such large amounts of dataConstantly ask yourself Where am I going Whatrsquos important and rewarding to me Is this information
the whole and then engage your resources with intuitive trust
As a CFO how can you transfer efficient workflow management skills to your employees Itrsquos very difficult to legislate processes for individuals ndash you can really only hold them accountable for their results But if you are managing your own commitments and intersections with them with integrity and rigour it will automatically force your team to ldquostep up to the platerdquo in their own behaviours in order to meet your standards If you request their complete list of their company projects and they canrsquot produce it thatrsquos a sign theyrsquore not in control If they make a commitment to you that they havenrsquot kept thatrsquos data about their performance GTD is simply about good operational business practices
With so many planning and organising activities in your methodology is there a risk of losing spontaneity as a strategistThe reason for these best practices is to optimise freedom creativity and spontaneity Without them
ldquoBut if you are manag-ing your own com-mitments and intersec-tions with them with integrity and rigour it will automatical-ly force them to ldquostep up to the platerdquo in their own behaviours in order to meet your standardsrdquo
64 wwwthecfomecom
supporting that Park whatever you find potentially meaningful somewhere that is easy to access when needed
Being an entrepreneur is a non-stop job How do you ensure that you have an adequate work-life balance Pay attention to what has your attentionmdashwith regard to anything Your health relationships career finances etc Notice when something might be ldquooffrdquo and make good decisions about what you need to do to get it back ldquoonrdquo again
Does your work teach people to be efficient or effective In essence they are the same thing Effective choices are generated by efficiency on a higher level If you want to implement strategy most effectively it demands utilising your resources optimally which is efficiency
Does motivation actually improve quality of work or purely quantityDepends on the focus of the motivation You can be motivated to work harder and you can be motivated to work smarter
What is your favourite productivity mantra that
you implement in your day-to-day lifeUsing my own in-basket and note-taking devices to capture potentially meaningful and valuable ideas and soon afterwards clearing all of them out by deciding what to do about them if anything
Your books seminars and other work inspires many individuals and businesses Who is your personal inspiration or role model I have many about many different aspects of my life The only person though that I ultimately trust as my best guide is my higher self which I try to access as frequently and clearly as I can
Finally what advice would you give to current business owners and aspiring entrepreneurs looking to gain complete control of their life and businessCapture what has your attention clarify what you need to do about it to get it off your mind organise the inventory of all your commitments at all levels review and reflect on all of that regularly relax and trust your inner wisdom to engage with the most appropriate thing in the moment
ldquoIf you want to implement strategy most effectively it demands utilising your resources optimallyrdquo
David Allen INTERVIEW
APPSTECH TALK
wwwthecfomecom 65
mAxImISE BUSINESS lsquoON-THE-GOrsquo WITH THESE HANDy APPS
ipAd SpECIAL
SAMSUNG UNvEILS GALAxY NOTE EDGE
Network
AP
Display
OS
Camera
Video
Audio
Additional Features
GoogleMobile Services
Connectivity
Sensor
Memory
Dimension
Battery
The availability of service may differ by country All functionality features specifications and other product information provided in this document including but not limited to the benefits design pricing components performance availability and capabilities of the product are subject to change without notice or obligation
Samsung Galaxy Note Edge Product Specifications
25G (GSM GPRS EDGE) 850 900 1800 1900 MHz3G (HSPA + 42Mbps) 850 900 1900 2100 MHz4G (LTE Cat 4 15050Mbps) or 4G(LTE Cat 6 30050Mbps)May differ by country and carrier
27 GHz Quad-Core Processor
56 inch (1419mm) Quad HD+ Super AMOLED (2560 x 1440 + 160)
Android 44 (KitKat)
Rear Facing 16 Mega pixel Auto Focus camera with Smart OISFront Facing 37 Mega pixel camera with f19Rear Facing Camera HDR (Rich tone) Selective Focus Rear-cam Selfie Beauty face Virtual Tour Shot ShotampMore Dual CameraFront Facing Camera Selfie Wide Selfie
Codec H264 MPEG-4 H263 VC-1 WMV7 WMV8 Sorenson Spark MP43 VP8 Recording amp Playback up to UHD
Codec MP3 AACAAC+eAAC+ WMA AMR-NBWB Vorbis FLAC()() Ultra High Quality Audio (~192KHz 24 bit) support
Multi WindowUltra Power Saving ModeVoice Recorder (Normal Mode Interview Mode Meeting Mode Voice Memo)Download BoosterS Health 35Dynamic Lock ScreenBriefingEdge screen UX Revolving Interaction Immersive apps(Camera Video S Note)Ticker board Express me Quick Tools Night Clock etc
Chrome Drive Photos Gmail Google Google+ Google Settings Hangouts Maps Play Books Play Games Play Newsstand Play Movie amp TV Play Music Play Store Voice Search YouTube
WiFi 80211 abgnac (HT80) MIMO PCIeGPS GLONASS BeidouNFC Bluetoothreg v 41 (BLE ANT+)IR LED (Remote Control) USB20 MHL 30
Gesture Accelerometer Geo-magnetic Gyroscope RGB IR-LEDProximity Barometer Hall Sensor Finger Scanner UV Heart Rate Monitoring SpO2 (Dependent on market)
32 64 GB Internal memory + microSD slot (up to 128GB)3GB RAM
1513 x 824 x 83mm 174g
Standard battery Li-ion 3000 mAh Fast Charging (Adaptive Fast Charging amp QC20)
wwwthecfomecom66
APPSTECH TALK
AIR DISPLAY
SQUARE REGISTER
Using this app you can connect your iPad to your computer and use it as an additional screen While working on an important presentation or sales proposal you can extend or mirror your computer screen on your iPad This app is compatible with both Mac and Windows computers Note that to use this feature you have to install Air Display on your iPad and a separate free app on your computer The computer and iPad also need to be on the same Wi-Fi network in order to work in-sync
For Mac users the app allows you to connect to up to four screens ndash all at the same time
Apart from the ability to convert your iPad into a wireless display whatrsquos also attractive about this app is that it allows you to control your computer wirelessly using your iPad
This fantastic application can serve as a mobile point of sale for your business It allows you to accept credit card payments ndash including Visa MasterCard Discover and American Express A transaction fee of 275 is charged for every time you swipe a card The sale amount is transferred to your account within two working days
Once you download the app you can sign up and register for a unique card reader solution called the lsquoSquare Readerrsquo (this is free) Square Reader encrypts all card details and ensures that the transaction is secure Once you receive your Square Reader you can connect it to your device and are all set
The application also offers added features such as transaction history connecting to a receipt printer creating employee logins and more
AED 3699
PRICE
Free
PRICE
wwwthecfomecom 67
APPSTECH TALK
DOCUSIGNHave you ever been in a situation where your employees need you to urgently sign a contract but arenrsquot able to physically reach you in time DocuSign solves this problem with its easy-to-use eSignature feature In three easy steps you can sign important documents and securely send them to your intended recipient
First you have to import the document to your device ndash this could be from Dropbox Google Drive or another select applications You then place your signature or any other important legal information you need to include such as initials Once you have finished working on the document send it back via e-mail
Whatrsquos particularly great about DocuSign is the great emphasis it puts on security ndash so that users donrsquot have to worry about getting into any legal trouble
Use DocuSign and never miss a deadline again
Free for basic version
PRICE
MPAYAn initiative by the Dubai eGovernment Department mPay is a simple application that allows you to make important payments Once yoursquove signed up and entered your payment details you are good to go You can pay your Dubai Electricity and Water Authority (DEWA) bills Etisalat utility bills Dubai Police fines Recharge SALIK and much more
A handy feature is its lsquoauto-rechargersquo option which you can use to set automatic payments
Free
PRICE
Opinion CIMAPERSONALITIES
wwwthecfomecom68
NEW HORIZONSBy geetu Ahuja Head of gCC at CIMA
The days of the traditional accountant working within a small community in a small town in a small market have long gone CFOs are now being referred to as Chief Frontier Officers as they travel from market to market overseeing their offices overseas This new expanded role has distinct advantages for both the company and the CFO who gain new skills and new insights from foreign branches a single hand at the helm of many markets provides business perspectives on a global scale and benchmarks across the board
On a personal level working abroad also has huge importance Robert Walters the specialist professional recruitment consultancy recently conducted a survey
of almost 2200 employees across a variety of professions exploring a number of topics which ranged from working practices and attitudes to careers The results highlighted some notable trends particularly for finance professionals
In career progression for example the survey showed that 50 of all accountants see working abroad as either lsquoessentialrsquo or lsquoextremely usefulrsquo to furthering their prospects more than banking professionals lawyers and IT workers ndash a strong indication of how accounting professionals are thinking about their future either within their existing company or with opportunities elsewhere
Accountants with globally recognised qualifications obviously have a greater chance of gaining some experience abroad and the lsquoGen Yrsquo professionals in particular seem ready to pack their bags In a CIMA study conducted in the UK last year over a third of those seeking employment in the
next two years will prioritise opportunities abroad over those in their home countries many of them enticed by the career incentives offered by the Middle East
How quickly can they land what seems to be their dream job What are the realities It may be that the move is simply from one branch to another and the only significant difference is a view from the window but for those expanding rather than changing their roles we have seen a very real need for a depth and breadth of knowledge never needed before
As geographical boundaries are pushed ever-wider a CFOrsquos responsibilities are pushed with them For many finance executives the understanding of their own patch of land is no longer enough they now have to be aware of foreign markets up to speed with foreign trends and au fait with foreign laws There is a need for a new commercial awareness in geography as well as philosophy
As geographical boundaries are pushed ever-wider a CFOrsquos responsibilities are pushed with them
John vargheseQampA
wwwthecfomecom 69
BUSINESSSET UP YOUR
IN THE UNITED ARAB EMIRATES
TO
WAREHOUSESOFFICES INDUSTRIAL LANDFLEXI
Quick and easy company set-up
Less than an hour drive from Dubai
Complete cost-effective packages including licences and facilities
100 foreign ownership
Zero income and corporate taxes
Eligibility for UAE Residence Visa
BUSINESS SET-UP SOLUTIONS STARTING FROM AED 15000 (USD 4000)
RAK FREE TRADE ZONE PROVIDES
RAK Free Trade Zone Authority - Government of Ras Al KhaimahUAE (Ras Al Khaimah) Tel +971 7 2041111 (Dubai) Tel +971 4 7041875 (Abu Dhabi) Tel +971 2 6994888
Germany (Cologne) - Turkey (Istanbul) - India (Mumbai)
Call +971 7 204 1111 Visit wwwrakftzcom Join rakftz
38
ERPANALyTICS
wwwthecfomecom
Faster more nuanced IT solutions are available to the modern day CFO Whilst Chief Financial Officers are called upon to analyse data across a number of spectrums the digital tools on hand are likewise being expanded to aid in focusing more squarely on the bottom line
ExCELLING WITH ERP
The global landscape is today firmly entrenched within a digital model As a result CFOs whom are called upon to take a larger role in a number of variables must also increase their abilities with respect to utilising the many upsides which tech innovations offer a business When surveyed about their most pressing concerns CFOs generally return a varying collection of responses Revenue growth regulatory changes and meeting quarterly goals are among the chief concerns Virtually every obstacle can be hurdled by way of maintaining the order of financial reporting and data which has long been
synonymous with the Chief Financial Officerrsquos remit A widening berth of ERP solutions is making this data all the easier to come by
Despite how sophisticated the market is today it was not long ago that ERP departments once spent days processing business reports
Said Rohan Tejura Assistant Vice President Focus Softnet ldquoTraditional ERP systems were solely data repositories Moreover these repositories werenrsquot real time and were incredibly dependent upon locational connectivity With the emergence of smarter development platforms more versatile devices and
39
ERPANALyTICS
wwwthecfomecom
more intuitive designs of system development the overall experience of the ERP now extends from data warehousing to reporting analysis trend mapping business intelligence and governance oriented capabilities Yet these solutions amazingly execute all of these deliverables via portable handheld devices and through cloud environmentsrdquo
New generation ERP systems must now be on the go whilst including up to the minute analytics to provide deeper insight into the business ERP Analytics tools use historical data captured from various business functions to provide valuable information for efficiency and business performance each incredibly priceless to a leading CFO
Finesse is an ERP provider which is continually addressing the transformation of output which the ERP industry is offering the equally transitioning role of CFO
ldquoWe provide end-to-end business management solutions to SMEs and Enterprises Our approach to ERP is much more than providing simply an operational management systemrdquo said Finesse COO Sunil Paul
ldquoWe believe that todayrsquos businesses need much more than integrating sales with inventory accounting and manufacturing but also to have seamless integration with all their sales channels including the point of sales ecommerce and inbound sales solutionsrdquo
A major im-petus of the ERP-cen-tered growth is based on how effec-tive com-prehensive real-time data proves to be for the CFO
40 wwwthecfomecom
before thereby creating new global benchmarks for overall economic growth
Microsoft Arabia CFO Sadrul Khan offered insight into just how far the knowledge economy has influenced regional financial leadership by explaining how one of the most prioritised technologies by CFOs in the region is social platform monitoring
ldquoOne of the five technology choices that CFOs tend to prioritise in boosting productivity efficiencies and faster decision making in the fast paced business environment which include a social platform that monitors trends customer sentiments and helps process mashable data for customer centricity and business growthrdquo said Khan
A major impetus of the ERP-centered growth is based on how effective comprehensive real-time data proves to be for the CFO Whether employed as on-premise ERP software-as-a-service or cloud-based solutions a nearly identical ethos is being utilised Allowing the CFO to quickly access the performance of all facets of a business is paying dividends in the boardroom a reality which is showing itself increasingly in the Middle East
The technologically-charged relationship between ERP solutions and the regionrsquos CFOs is expanding and as a result has catalysed what many see as GCC economic performance outstripping that of many economies outside of the region as a result
In order to compete in todayrsquos fiercely competitive environment organisations need to think both innovatively and out of the box They require more insights about their business and their customers and need to ensure that they are able to meet the expectations of their internal as well as external stakeholders Enormous amounts of data both structured and unstructured is continuously being generated within the internal and external systems of the organisation which if analysed can be of immense value both to the business and subsequently the stakeholders associated with the organisation
With the the era of CFOs labouring over spreadsheets now in the past given how many business frontiers have become so dependent on mobile options such as the cloud more and more tech companies are providing the regionrsquos CFOs with information technology that converts traditional internal and external data into rich visual insights This information is then used for faster decision making and provides the ability for a CFO to assess manage and control risks Regional CFOs have grown enabled to drive corporate strategy accordingly demonstrating how the knowledge economy is now in full force amongst the Gulfrsquos corporates
Given that advanced IT has now become a regular CFO tool the regionrsquos CFOs are subsequently making faster decisions and driving internal growth models with greater speed and agility than ever
Tech companies are providing the regionrsquos CFOs with information technology that converts traditional internal and external data into rich visual insights
ERPANALyTICS
Donrsquot discoveritrsquos counterfeittoner afteritrsquos too lateOriginal HP Toner works first time every time1 unlike cheap toners which fail over half of the people who try it2 Non-HP toner can compromise your printerrsquos performance to give you streaked blotchy or faded prints Only original HP Toner cartridges deliver unmatched quality for the most professional-looking prints 100 of the time1
1 A QualityLogic 2010 study commissioned by HP comparing original HP LaserJet Monochrome print cartridges with nine brands of non-HP toner cartridges available in Europe Middle East and Africa for the HP LaserJet P1505 and P4015 printers HP 36A and 64A For details see wwwqualitylogiccomEMEAmonotonertestpdf 2 From a 2012 EMEA Lyra Research study commissioned by HP Results based on a total of 1050 HP Color LaserJet users who have used both original HP and non-HP toner cartridges of whom 552 experienced problems with non-HP cartridges
copy 2014 Hewlett-Packard Development Company LP
42
Private Equity ANALyTICS
wwwthecfomecom
The rise of PE-backed acquisitions is forcing CFOs to develop an entirely new set of skills
THE PRIvATE EQUITy CFO
The CFOrsquos utility in the world of private equity is without question on the rise The once-held belief of the CFO existing solely as the ldquoaccounting guyrdquo has been abandoned Over the last 20 years the role of CFO has become more demanding - requiring not just finance and accounting acumen but also a financial literacy in corporate planning risk management MampA assetliability management and regulation This evolution has been driven by a number of
key factors Yet the private equity industry which is now reshaping the corporate landscape through active ownership is by far the most significant factor driving change within the role of the CFO
PE-backed buyers today represent a larger percentage of overall buyers in the corporate acquisition marketplace than ever before Data provider Prequin estimates that as of June 2014 the capital raised by PE funds that
has not yet been deployed amounts to $114 trillion globally The result of this ldquodry powderrdquo is that a vast quantity of corporate acquisitions in the coming years will be undertaken by the private equity industry As such CFOs will be more accountable to demanding ldquosmart moneyrdquo shareholders than at any point in recent history Budgeting accounting and financial reporting will no longer exist as sole priorities but as a core competency among a
ldquoBy effec-tively using real-time data CFOs can create a dynamic process that proac-tively drives performance account-ability and value crea-tionrdquo
By Aaron Heidari
43
Private Equity ANALyTICS
wwwthecfomecom
robust set of complimentary and required skills Most of all the bar for CFOs is rising as PE investors will only accept above-average performance from their management teams
CFOs were once more reactive in function setting budgets based on other executivesrsquo plans and managing the flow of reporting to shareholders on a quarterly and yearly basis Today CFOs are required to become proactive managers of their respective businesses alongside their C-suite compatriots using a granular data-driven approach to aggregate analyse implement and report on every aspect of a companyrsquos operations
An important tool to drive this value creation process are KPIs Yet KPI structures including both aggregation and output are generally not up to the standards required of private equity investors prior to an investment being made
ldquoThe benefits of using KPIs and monthly reporting packages are significant By effectively using real-time data that is actionable and by partnering with functional area leaders within the organisation company CFOs can create a dynamic process that proactively drives performance accountability and value creationrdquo said Amanda Robinson Vice President of Accordion International in Dubai a consulting firm which is comprised of former private equity and investment banking professionals who
MENA region Cumulative Funds Under Management Since 2008
Source Zawya private Equity Monitor
19 636 20 36321 586
22 64323 506 24 250
-
5000
10000
15000
20000
25000
2008 2009 2010 2011 2012 2013
Cu
mu
lati
ve f
un
ds
($ m
)
$15mAverage MENA PE investment size in lsquo13
50Percentage of investment in IT and energy sectors
STAT FACTS
44 wwwthecfomecom
work with companies to deliver cost-effective project execution services
Active shareholders whose money it is being spent will typically require a data-driven justification before approving any budgets capital expenditures or new acquisitions Furthermore in many private equity backed companies the use of debt and the matching of shorter-term bank financing with longer-term investments will only be considered after a robust analysis is conducted to understand the companyrsquos ability to service that debt in the future This evaluation is not simply to identify revenues expenses and profits Itrsquos about drilling down into every transaction and rooting out data processing and reporting At least that is the expectation
The most valuable CFOs are those who have the ability not just to scrutinise and understand the financials but all also possess a wider grasp of the underlying data which truly comprise the business As an investor who has just acquired a stake in a new business I want a CFO who can manage the transition and stay ahead of my expectations Most of all a CFO should impress upon the companyrsquos shareholders a new way of doing business The first 100 days of an acquisition are said to be the most important During this period the CFOrsquos worth will be established when the new financial plan is due and the platform for the next five years of growth is presented
A CFO should man-age the tran-sition stay ahead of expectations and impress upon the companyrsquos shareholders a new way of doing business
Investment Volume By Sector Since 2006
Investment Volume By Sector in 2013
Source Zawya private Equity Monitor
1
3
30
17
3
28
3
4
6
4
6
5
17
9
9
6
9
5
8
6
6
2
3
10
Education
Education
Information Technology
Information Technology
Other
Other
Telecoms
Telecoms
Media
Media
Transport
Transport
Oil amp Gas
Oil amp Gas
Healthcare
Healthcare
Consumer goods
Consumer goods
Food amp Beverages
Food amp Beverages
Leisure
Leisure
Manufacturing
Manufacturing
ANALyTICS
Private Equity
2000857 NBAD ratibi mag ad 200x268 Finalindd 1 92514 1017 AM
46 wwwthecfomecom
THE FUTURE OFACCOUNTING EDUCATIONAddRESSINg THECOMpETENCY CRISIS
Have you ever stopped to think about how the accounting profession has changed since you graduated from college Recent graduates can answer this question by reflecting on the last two or three years whereas for other more seasoned professionals answering this question requires a bit more thought and memory searching Indeed we can all think of ways that the field of accounting is remarkably different today from the one we likely envisioned during our college daysmdashregardless of which decade we each donned our cap and gown This gradual transformation of the accounting profession leads to two important questions related to competencies bull Which competencies are important for success inaccounting todaybull Were these competencies consciously developed as partof your accounting degree programme
We suspect that more than a few of you would answer ldquonordquo to the second question Put another way our profession may be facingmdashmore so than at any time in the pastmdasha ldquocompetency crisisrdquo that is a gap between the competencies needed for professional success and those taught in our college classrooms today We propose a three-pronged strategy or ldquogame planrdquo for overcoming this competency crisis and in turn better preparing accounting graduates for the challenging world they will face First all of us accountants need to understand the changes that have already taken place in our profession and perhaps more importantly anticipate the changes that are on the horizon Second we need to educate ourselves and future generations of accountants so that as a collective group we can deliver the expanding set of competencies demanded in todayrsquos dynamic organisational
contexts Third as professional organisations and as individuals we need to think beyond ourselves by asking How can I (or we) help the accounting profession address the competency crisis
A Shift Toward Integrated ThinkingMany articles and white papers have been written that describe in detail the changes that have occurred in our profession over the last few decades but for our purposes wersquod like to distill these changes down to one crucial idea How does the accounting function add value to an organisation Accountants have evolved from support-oriented personnel who hand off information to others who actually make decisions into business partners who ldquohave a seat at the tablerdquo with managers
By peter C Brewer James E Sorensen CpA CgMA and david E Stout
47wwwthecfomecom
1048576bull What regulatory risks mayaccompany the proposal
1048576bull What social and environmentalfactors will we face if for example the proposal requires investing in overseas operations
1048576bull What types of employeeresistance may arise if we implement the proposal and how will we overcome the root causes of any such resistance
1048576bull Can and how should we valuefuture options associated with the proposal such as expanding or contracting the investment over time as new information becomes available
1048576bull Should we use debt or equity tofund the proposal
In short accountants have evolved to become integrated thinkers who enable EPM by partnering with managers across the organisation to add value Yet as EPM has gradually become the centrepiece of our professionrsquos value proposition accounting education hasnrsquot done enough to embrace it To overcome this gap wersquod like to further suggest that the concepts of competency integration and EPM need to come ldquofront and centrerdquo as we move forward in educating the next generation of successful accounting practitioners
Accounting Education No Longer on the SidelinesRecently a task force consisting of members of IMAreg (Institute of Management Accountants) and members of the Management Accounting Section (MAS) of the American Accounting Association (AAA) addressed the competency issue How should accounting education change fundamentally to help close the competencies gap The efforts of the task force led to
cash flows and how to apply discounted cash flow (DCF) decision models such as net present value (NPV) is of foundationalmdashsome might say critical mdash importance But integrated thinkers draw on an understanding of organisational strategy coupled with a broader set of competencies (beyond what might be considered technical or foundational knowledge) when making these types of decisions For example they consider how behavioural issues may influence the capital investment decision-making process Perhaps the financial estimates contained in the NPV analysis are too optimistic because the manager who prepared the numbers has a vested interest in seeing the project approved Decision makers also need to consider issues such as leasing vs buying a capital asset and the corresponding impacts on the financial statements and ratios that are tracked by investors and lenders What nonfinancial factors are associated with the proposed investment Add in the tax consequences of capital investment decisions coupled with the need to maintain internal control over any new business processes tied to these decisions and the need to think in an integrated fashion across a variety of accounting competencies becomes apparent
Furthermore becoming a true business partner with managers across the organisation requires more than simply integrating various accounting competencies It also means thinking like a business manager or a chief executive officer (CEO) Returning to the capital budgeting example an integrated thinker will ask questions such as
across the organisation Together they formulate and plan strategies then participate in collaborative decision-making processes that execute those strategies in a manner that adds stakeholder value Said another way accountants have evolved to become enterprise performance managers This shift in our orientation from a support function to an enterprise performance management (EPM) role has enormous implications for defining the determinants of success within our profession the most important of which involves becoming collaborators and ldquointegrated thinkersrdquo Take for example a common but important business decision process capital investment analysis Certainly technical knowledge regarding how to estimate relevant after-tax
48 wwwthecfomecom
expanding capital budgeting discussions to include financial statement impacts tax consequences and internal control issues integrates topical coverage across the External Reporting and Analysis Taxation Compliance and Planning and Assurance and Internal Control competencies shown in Figure 1
Third accounting curricula can incorporate a broader set of management competencies For example evaluating capital investment proposals from the perspectives of change management (Leadership) social and environmental issues (Ethics and Social Responsibility) regulatory concerns (Governance Risk and Compliance) and capital structure (Additional Core Business Competencies) brings a CEOrsquos perspective to the decision-making process
Fourth accounting curricula should include foundational competencies such as proficiency with spreadsheets and written and oral communication In the context of capital budgeting this may include asking students to use Microsoft Excel to perform a sensitivity analysis and then to present their findings to the entire class
Working to Fix the ProblemAt this point although you may agree with us that therersquos a competency crisis within the accounting profession you may be wondering What does this have to do with me What can my organisation do to help address this so-called competency crisis The answer a lot Practice partners and academic partners can help the accounting profession overcome the competency crisis That said letrsquos take a closer look at the role of practice partners first
improvement) and accounting competencies (external reporting and analysis planning analysis and control taxation compliance and planning information systems assurance and internal control and professional values ethics and attitudes) Of critical importance to the framework is the assumption that the set of competencies contained in Figure 1 would be developed and integrated over time through a blend of formal education (including continuing education) training and job experience
What levels of integrationmdashon the road to developing integrated thinkers in accountingmdashare possible First accounting educators can integrate within a single accounting competency So referring back to our capital budgeting discussion teaching computational models such as NPV analysis coupled with a review of various behavioural issues associated with capital investment decisions would be an example of integrating within the Planning Analysis and Control competency listed in Figure 1
Second professors can integrate across accounting competencies For example
a recently published article that contains a proposed framework for accounting education reproduced here as Figure 1 The framework is general in the sense that itrsquos meant to apply to all accounting students not subgroups based on career specialisation such as tax assurance services corporate finance and the like Itrsquos based on the idea that accounting educators can better prepare students to deliver our professionrsquos EPM value proposition through integrated competency-oriented curricula (For more see ldquoFocusing Accounting Curricula on Studentsrsquo Long-Run Careers Recommendations for an Integrated Competency-Based Framework for Accounting Educationrdquo in the May 2014 edition of Issues in Accounting Education)
A glance at Figure 1 reveals three levels of competencies foundational competencies (communication ability to leverage technology and analytical thinking and problem solving among others) broad management competencies (including leadership ethics and social responsibility and process management and
Proposed Competencies-based Framework for Accounting Education
FOUNDATIONALCOMPETENCIES
ACCOUNTING COMPETENCIES
BROAD MANAGEMENT COMPETENCIES
leadership
ExternalReportingamp Analysis
PlanningAnalysis
amp Control
TaxationComplianceamp Planning
InformationSystems
Assuranceamp InternalControl
ProfessionalValues Ethics
amp Attitudes
Communication
Quantitative
Interpersonal
Technological
Analytical Thinking ampProblem Solving
Ethics amp SocialResponsibility
ProcessManagement ampImprovement
GovernanceRisk amp
Compliance
AdditionalCore BusinessCompetencies
Although you may agree with us that therersquos a competency crisis within the account-ing profes-sion you may bewondering What does this haveto do with me
A practice partner should be or become a CMAreg (Certified Management Accountant) maintain professional certification by completing required Continuing Professional Education (CPE) hours and regularly read the IMA publications Strategic Finance and Management Accounting Quarterly
In addition there are a number of excellent resources that deal with topics covered in this article and that IMA makes available to its members
Strategic Finance PowerPacks(wwwimanetorg SFPowerPacks) These are resources focused on contemporary topics similar to those discussed earlier Current offerings include Risk Management Strategic Planning IT Skills amp Software and Internal Controls Each PowerPack includes a combination of resources such as research studies articles and links to webinars
Statements on Management Accounting (SMAs)(wwwimanetorgresources and_publicationsresearch_ studies_resourcesstatements on_management_accounting aspx) SMAs represent monographs classified into one of the following six categories Leadership Strategies and Ethics Technology Enablement Strategic Cost Management Business Performance Management Finance Governance Risk and Compliance and the Practice of Management Accounting Multiple items are available within each category For example the Practice of Management Accounting category includes (among other items)
49wwwthecfomecom
the Definition of Management Accounting and Implementing Shared Service Centres
Research Studies (wwwimanetorgresources_and_publicationsResearch_Studies_and_ResourcesAll_reportsaspx) The ldquoThoughtLeadershiprdquo section of IMArsquos website includes research covering a broad range of issues classified into seven categories For example under the ldquoGlobal Business Environmentrdquo category the following two research reports are available ldquoKey Differences Between IFRS and US GAAP Impact on Financial Reportingrdquo and ldquoCosting Methodologies and Cost Management Practices in the Peoplersquos Republic of Chinardquo
IMA Leadership Academy (www imanetorgprograms_events leadership_academyaspx) As described on the IMA website this programme is designed to assess a memberrsquos leadership status enhance that individualrsquos skills (principally through monthly webinars) and recognise leadership achievements These benefits are free to members
How You Can Make a Bigger Impact In addition to attending local regional and national IMA meetings consider inviting a small group of students to each chapter meeting This could be a wonderful (and relatively low-cost) option for mentoring aspiring accountants and finance professionals providing networking opportunities and introducing students to cutting-edge issues regarding the practice of management accounting Joining a university accounting
advisory group may be another way to influence the development of EPM in that institutionrsquos curriculum design
Other methods to enhance EPM in your organisation include (1) forming user groups within your company your local IMA chapter or your industry to review and share EPM experiences (2) encouraging advancement in the firm to be linked to EPM proficiency (3) focusing your companyrsquos recruiting efforts on candidates who display a background in andor understanding of EPM and (4) organising cross training within your company to enhance a mutual understanding of each otherrsquos respective roles
Finally visit the Competency CrisisTM website (http competencycrisisorg) set up by IMA to unite the accounting and finance constituencies professionals students employers academics and professorsmdashand explore competency issues through the lens of each stakeholder group The site is designed to ldquoencourage a discourse spur action and create a community dedicated to resolving the serious crisis of competency present in the professionrdquo Special sections of the website are devoted to educators students and employers professionals
Our Partners in Education Much like a practice partner an academic partner should be or become a CMA maintain professional accreditation by completing CPE hours and regularly read IMArsquos publications
Academic members of IMA can pursue and actively promote the CMA programme at their respective institutions
50 wwwthecfomecom
IMArsquos website contains helpful resources including an exam content overview content specification outlines for each of the two parts of the CMA exam and learning outcome statements The current exam covers some of the professional competencies represented in Figure 1 A summary of changes to exam content which will be effective in January 2015 is provided on the IMA website in News amp Media Relations which is located under ldquoAbout IMArdquo (See the press release dated March 24 2014) Other helpful resources include ldquoICMA Announces CMA Exam Content Changesrdquo in the April 2014 issue of Strategic Finance as well as ldquoManagement Accounting Career Readiness Shaping YOUR Curriculumrdquo
These forthcoming changes are based on the most recent IMA study of the knowledge and skills needed by management accountants from the view of CFOs controllers and other accountingfinance professionals from around the world
Also consider taking a group of your students to the IMA Student Leadership Conference held each November The Conference provides excellent networking opportunities for you your students and practicing professionals Students can learn firsthand from Conference presenters the challenges and opportunities facing finance and accounting professionals today
Moreover if your institution doesnrsquot currently have an IMA Student Chapter consider forming one One of the authors of this article David Stout reinstituted the student chapter at his school (Youngstown State University) after travelling with a group of his students to the IMA
Student Leadership Conference in Cleveland Ohio Through an IMA Student Chapter on campus students are able to work closely with a sponsoring local IMA chapter and bring to campus speakers who are experts in a wide range of topics including those discussed earlier in this article Each year student chapters compete for an Award of Excellence (AOE) and recognition as an Outstanding Student Chapter In addition IMA student members are able to engage in networking activities leadership training mentoring and community service programmesmdashall through their local chapter
You also might consider volunteering to serve as a Campus Advocate In this role yoursquoll represent IMA in all major matters of interest to your students (scholarship opportunities starting a student chapter mentoring and the like) and to your institution (for example leveraging IMA resources to advance the relevancy of the accounting curriculum use of educational case studies published in the IMA Educational Case Journal and access to IMArsquos ethics curriculum)
And if you havenrsquot yet done this ask IMA to endorse your accounting programme (information is available at www imanetorgeducator_resources indexaspx) This programme is designed to identify business curricula that meet the quality educational standards required to prepare students to earn the CMA designation Endorsement is based on an analysis of the curriculum and topics covered on the two-part CMA exam Currently 12 programmes have been endorsed
Finally if your school has an IMA Student Chapter consider participating in the annual IMA Student Case Competition where students are asked to propose a solution to a real world problem (Cases are solicited each year by Raef Lawson IMA VP of Research and Policy and IMA Professor in-Residence) Finalists make their presentations at IMArsquos Annual Conference amp Exposition before a set of judges consisting of accounting faculty members and practitioners Each year a new case is published in the August issue of Strategic Finance for students to use for that yearrsquos competition
Working TogetherIn this article we have summarised the changes that have affected the accounting profession and provided a competencies-based framework for guiding accounting educators in responding productively to those changes As a management accountant you know that implementing change in any organisation let alone within an entire profession never comes easily To be successful in overcoming our professionrsquos competency crisis IMArsquos practice and academic partners will need to assume leadership roles in defining enterprise performance management as the cornerstone of the accounting professionrsquos value proposition
This article was orginally published in the August 2014 issue of Strategic Finance It appears here with the permission of The Association of Accountants and financial professionals in Business
We need to educate ourselvesand future generations of account-ants so that as a collec-tive group we can deliver theexpanding set of com-petenciesdemanded in todayrsquos dynamicorgani-sational contexts
THE POWERFUL AND THRIFTY OFFICE ALL-ROUNDERS
The new ECOSYS M3560idn series will astound you With their print speeds of up to 60 pages per minute they are among the most productive A4 bw multifunctionals on the market We nevertheless managed to keep their ecological footprint and total cost of ownership impressively low by using our well-known ECOSYS technology and equipping the devices with our renowned long-life components The result Not only less waste and lower maintenance costs but also less hassle for you and all your colleagues You will also greatly appreciate the many customisation possibilities of the devices equipped with KYOCERArsquos open solution platform HyPAStrade as it allows you to tailor the device to your needs So yes we are proud of our new range of MFPs and can hardly wait to share their numerous benefits with you
For more information please contactKYOCERA Document Solutions Middle East | PB Box 500817 DubaiUAE | Tel +9714 4330 412 | Fax +9714 4231 944KYOCERA Document Solutions Europe BV - wwwkyoceradocumentsolutionseuKYOCERA Document Solutions Inc - wwwkyoceradocumentsolutionscom
52
ACCAINTERVIEW
wwwthecfomecom
GLOBAL By ASSOCIATION
across the region from our key employers and learning provider partners to our active and growing student and member base I want to understand their challenges and priorities and how ACCA can work with them to help support the economic success of the region
What can a CFO gain from working with ACCAThe ACCA qualification is about complete finance professionals For CFOs it brings the technical knowledge vital to business success complemented with the strategic management skills and ethical competence crucial to an organisationrsquos success As an organization ACCA in the UAE brings CFOs access to that local and global network of peers and expertise along with our leading research and insights that help them to keep up to date on the issues that matter most
Are there any initiatives in place to leverage the recently announced partnership with AAA
How are the ACCArsquos many years of activity being applied to the Middle EastACCA has now had a presence in the UAE for well over a decade During that time we have established strong relationships across the Middle East epitomised by the recent signing of our Strategic Partnership with AAA As a national body in choosing to partner with ACCA they recognised the local and global perspective we bring We are continuing to work with students members and employers across the Middle East to build their networks knowledge and business success through events research and insights and access to a growing number of online resources
Which initial priorities are among your key aims upon joining the organisationrsquos efforts in the UAEIn the first few months I hope to build on the success of the team in the UAE My priority will be to meet as many of our key stakeholders
The Association for Chartered Certified Accountants (ACCA) provides its services across a number of international borders The recent announcement of Lindsay Degouve de Nuncques as the new head of the Associationrsquos UAE chapter further exemplifies the ACCArsquos reach based on her previous work in the UK Nuncques shares here what she brings to the Middle East and just how globalisation has driven her ascent
53
ACCAINTERVIEW
wwwthecfomecom
The strategic partnership with AAA is the first of its kind in the region Students who complete the UAECA qualification will be entitled to both the AAA and ACCA designations and ACCA members in the UAE will also be eligible to apply for AAA membership This is a very exciting development in the market and together AAA and ACCA will be working to deliver maximum value to all our stakeholders from this partnership As we launch the UAECA qualification this activity will start in earnest
Which key industries will you be spotlighting in the Middle East in the months aheadOur experience of working across all sectors and levels of organisations globally gives ACCA a unique insight into all types of industries We will continue to be working with employers across the spectrum in the months ahead to help them gain the insight and make the connections that drive businesses to succeed at whatever they do
ldquoThe ACCA qualification is about complete finance professionals For CFOs it brings the technical knowledge vital to business success complemented with the strategic management skillsrdquo
54
Islamic FinanceMARKET OUTLOOK
wwwthecfomecom
In its 10th instalment the Forum is hosted in Dubai as a direct result of the UAErsquos increasing importance in the world of global Islamic finance
THE WORLD ISLAmIC ECONOmIC FORUm LANDS IN DUBAI
In Dubairsquos continued quest for leading the world across a range of spectrums the Emirate accelerated its desire to become the worldrsquos leading hub for Islamic finance by hosting the 10th installment of the World Islamic Economic Forum (WIEF) Delegates from dozens of countries attended to take part in a three-day event held at Madinat Jumeirah which rests alongside Dubairsquos gleaming coastline Held under the patronage of His Highness Sheikh Mohammed Bin Rashid Al Maktoum the
Vice President and Prime Minister of the UAE and Ruler of Dubai key speakers included The Honorary Dr Zeti Akhtar Aziz Governor of the Central Bank of Malaysia HE Kairat Kelimbetov Governor of the National Bank of Kazakhstan The Honorary Datorsquo Sri Mohd Najib Tun Abdul Razal Prime Minister of Malaysia and HE Xavier Bettel Prime Minister of the Grand Duchy of Luxembourg
Launched in 2006 in Malaysia WIEF has grown in tandem with the increased
Delegates from dozens of countries attended WIEF to take part in the three-day event
sophistication and reach of Islamic finance After a successful event in London in 2013 amidst increased interest in Islamic finance across Europe WIEF relocated to Dubai where the local business structure is keen to host halal finance
Said Hamad Buamim President and CEO Dubai Chamber of Commerce and Industry co-organisers of the event ldquo[The forum] is the start of a new chapter of cooperation between Dubai and the world as part of
55
Islamic FinanceMARKET OUTLOOK
wwwthecfomecom
Dubai Capital of Islamic Economy visionhellipestablishing a unified regulatory authority to provide the framework for standards across halal industries will significantly accelerate growth Likewise we need to see increased cooperation and partnership between the public and private sectors This is already happening with great success here in Dubairdquo
The order of global cooperation needed to facilitate growth across the Islamic finance world was more than apparent at WIEF based on how many differing nations were represented at the event The exhibitorrsquos hall was populated with a number of key Malaysian stands representative of the Southeast Asianrsquos ranking as the global leader in Islamic finance Also present were companies from Saudi Arabia also a key locality in the worldrsquos halal industries An interesting yet prescient presence was of attendees from South Korea a nation which is eager to participate in Islamic finance and will be hosting the WIEF Pyeongchang Roundtable in December 2014
ldquoGangwon is a province located in Korea which is very interested in new business opportunities Wersquove realised the strength of the Islamic economy and have come here with many different companies The first type is based in real estate investment We also have companies which want to export their products to the Islamic economy based on their halal qualities And Gangwon will also be hosting the Winter
ldquoKorea is very interested in the strength of the Islamic economy and wants to export its products based on their halal qualitiesrdquo
56 wwwthecfomecom
$247trillionProjected value of halal products industry in lsquo18
125Muslim percentage of global tourism expenditure
STAT FACTSOlympics in 2018 and are presently seeking investments for this as wellrdquo said Seong-hun Kim a member of Gangwon Province Governmentrsquos Export Support Team
Dubai proved to be an excellent place for the event considering how well the UAE is able to so regularly corral international cooperation A key sign of this was witnessed recently when Luxembourg now considered the third most important base for Islamic finance globally opened a finance office in Dubai International Finance Centre The European nation also opened a euro200 sukuk earlier this year which was quickly oversubscribed
The prime minister of Luxembourg offered the WIEF audience a riveting speech which detailed just how international the Forum has become whilst encouraging more of the world to support the growing influence of Islamic finance
Said Bettel ldquoWe need to innovate more economic partnerships for growth We sometimes need to reengineer relationships but also have to make sure these relationships remain sustainable Growth in one country also brings growth to others as long as this is guided by free market initiatives Free trade and free flow of capital combined with innovation leads to prosperity We have all gathered here in Dubai to explore the future of Islamic finance and Luxembourg is also a pioneer of Islamic finance in Europe The Islamic financial sector has a major role to play in continued global growthrdquo
The Islamic Corporation for the Development of the Private Sector (ICD) is based in the Kingdom of Saudi Arabia where it manages an international fund worth $2 billion half of which is available for subscription With shareholders in more than 50 countries and a sovereign sukuk fund recently launched in West Africa the ICDrsquos CEO Khaled M Al Aboodi attended WIEF this year excited to participate in the global event
How does the ICD approach its attendance at the World Islamic Economic ForumI think the Forum is one of the best places for discussing the financial issues of the OEC member countries It has been around for ten years and has grown to become a very important platform for discussion Wersquore here to attend and listen but also to network Itrsquos a great networking platform and a place to share views whilst letting everyone know what we have to offer
How has Islamic finance changed over the yearsOf course itrsquos growing in a large scale Some of it actually needs more support particularly with respect to regulatory frameworks Wersquore trying to partner with many international organisations like the IMF to try to provide support to countries to adapt regulation for Islamic finance Sukuk issuance is one of the biggest issues that needs to be addressed because there is a huge amount of liquidity in this arena Due to issues related to regulation sukuk issuance can be costly But with the regulation we are confident it will be on a level playing field with other forms of finance Compliance is a major area where more work can be done The Forum started with a roundtable on sukuk which shows how helpful WIEF has been over the years
What type of work does ICD do internationallyICD helped the government of Senegal to issue the first sovereign sukuk This was successfully issued last summer Progressing in this manner is something wersquod like to see continue across West Africa in order to utilise its resources with aiding development in the region in mind
QampA WITH KHALED M AL ABOODI CEO OF ICD
Islamic FinanceMARKET OUTLOOK
OFFICIAL SPONSORS
ENDORSED BY OFFICIAL HOST OFFICIAL
COMMUNICATIONS PARTNER
MEYDAN HOTEL DUBAI UAE19 - 20 NOVEMBER 2014
WOMENOMICSthe next emerging market
TAKE PART in making change happen UNITE with business and through leaders from across the globe
PARTICIPATE to the expansion of a modern and inclusive economy
58
Gautam PradhanINTERVIEW
wwwthecfomecom
SUCCESS BEyOND BOUNDARIES
in other management roles such as strategic decision making mentoring and leading efficiency and productivity across a range of other departments and functions as well as a being a catalyst in ensuring that the boardrsquos vision for the organisation is achieved
A significant percentage of NMDCrsquos shares are owned publicly Does the CFO play a role in balancing the interests of the shareholdersAs a CFO balancing the shareholdersrsquo interests is definitely part of my responsibility In order to achieve this goal there needs to be a careful evaluation of each decision while keeping the short-term and long-term goals of the company in mind At NMDC we actively implement a system where we utilise a balance scorecard as a method of ensuring that all our primary objectives are met yet at the same time continuously enhance our relationships with our shareholders
NMDC has completed various projects across the Emirates Are there plans to move abroadAs NMDC moves towards becoming an international player our strategic expansion plans are focused in areas within the GCC region and India In line with this strategy we opened
How has a company with such a unique set of deliverables grown so consistently over the yearsOur organisation strongly believes that the core to our strength is the people process and equipment A strategic decision led by our Board of Directors and the senior management has been implemented that required us to consistently invest in these three aspects to help expand our business beyond the territorial boundaries of the UAE and at the same time enhance what we can offer which is relevant to these segments We attribute our success to the efforts which every employee contributes We also strongly believe in the ldquoWe can make it happenrdquo principle The management raises the index of performance while setting SMART objectives within the organisation and encouraging the employees to achieve them
How has your position as the CFO changed over NMDCrsquos 35 years of operationAs the market evolves and business dynamics change my role as the CFO has become complex and more challenging A few years back I was mainly focused on bookkeeping accounting and other financial responsibilities such as arranging bank facilities But moving forward I became more involved
The UAE is progressively becoming a hub for world-class infrastructure The country has duly impressed the rest of the globe with noteworthy land developments showcased across the emirates Among the remarkable landscapes found in Abu Dhabi are the Corniche Beach Yas Island and Sir Baniyas Island Behind these successful projects is NMDC the dredging division of Abu Dhabi National Oil Company (ADNOC)
In an interview with CFO Magazine Gautam Pradhan Chief Financial Officer NMDC shares an exclusive look into the companyrsquos international blueprint for growth and his dynamic role as a strategic leader of one of the best in dredging and marine construction in the Middle East
59
Gautam PradhanINTERVIEW
wwwthecfomecom
branches in Qatar Bahrain Oman and India This has paid rich dividends recently as projects of strategic importance are bagged in Qatar and Bahrain Furthermore NMDC (UAE) has recently played a key role as a leader of an international consortium with Royal Boskalis Westminister (Netherlands) and Jan De Nul Group (Belgium) for the awarding of the Suez Canal Dredging project in Egypt Moving forward we have devised a strategic approach that will enable us to play a key role in the development of Indiarsquos marine infrastructure
What are the global strategies that are part of the CFOrsquos responsibilitiesAs CFO understanding the macro economic scenario risk analysis and mitigating those risks are all a part of my responsibilities I also have to have a proper comprehension
ldquoA few years back I was mainly focused on financial responsibilities moving forward I became more involved in strategic decision making mentoring and leading productivityrdquo
Gautam PradhanINTERVIEW
60 wwwthecfomecom
of the challenges faced by the company in terms of dealing with foreign contracts direct and indirect taxes and hedging and managing the integration process These are essential to enhance shareholders wealth and mitigate undue risk
How significant is accountancy for NMDC in its operations Why exactlyAccountancy is the lifeline of any company it does not only record the finances it also reflects the health of the organisation The MIS reports analysis trends and statistical information go a long way toward effectively providing
the diagnostic approach essential for the company
How have NMDCrsquos environmental activities helped the companyrsquos bottom lineNMDCrsquos work is well-synchronised with our environmental activities and specifically with nature Our activities are closely linked to sand and water and we view such activities with strategic importance Projects such as increasing water supply to mangroves and beach nourishment help us support the environmental activities while adding to our bottom line
ldquoAccountancy is the lifeline of any company it does not only record the finances it also reflects the health of the organisationrdquo
A burgeoning slice of Abu Dhabi coastline
The largest business awards
in the GCC30th November Dubai
nominate now at wwwstarsofbusinessawardscom
Stars of Business has become an iconic awards brand like no other in the region It recognizes the very best SMEs across 26 business categories Itrsquos universally respected as scientifically assessed and unimpeachably judged
327000 SMEs across the UAE$234 billion estimated total revenue of the SME sector4974 Awards entries in 20131856 Individual company applicants
Presenting Partner Strategic SME Partner Gold Sponsor Gold Sponsor VIP Hospitality Partner Supporting Partner
Trade Facilitator PartnerTrade Credit PartnerLogistics Partner
Institutional Partner Institutional Partner Event Partner
OrganiserPublisherMedia Partner Media PartnerPort Authority Partner
62
David Allen INTERVIEW
wwwthecfomecom
What went into completing your bestseller ndash Getting Things Done (GTD)After twenty years of researching developing and implementing a methodology for achieving stress-free productivity based upon
thousands of hours spent desk-side with
some of the best brightest and busiest people in the world I decided to write the manual for it Thatrsquos what Getting Things Done is
What are the five phases of mastering workflowIn order to get
any situation under control so
you can focus you will utilise these five
steps Whether yoursquore managing your kitchen
or your company you will need to collect and capture what has your attention clarify what if anything to do about it organise it according to what it means to you review and reflect upon it in relation to
Todayrsquos evolving CFO is often caught between the world of business set-up generating revenue managing employees and building strong company infrastructure When can things actually get done What can one do to boost productivity and master workflow World-renowned business coach David Allen has the answers
PRODUCTIvITy PRINCIPLES WITH
DAvID ALLEN
63
David Allen INTERVIEW
wwwthecfomecom
those are greatly subvertedHow does one maintain a fair balance between the time spent planning and actually getting things doneYou simply need to spend just the amount of time you need to to trust that what you are getting done is the right thing to be getting done in the moment It takes as long as it takes to get to that point Why would you do anything less
How can one apply your core productivity and workflow principles to todayrsquos technologically driven environmentThe principles and their techniques are system-independent Whether you have meaningful input from the Internet your smartphone or a conversation in the hall you must engage with it equally Technology has simply increased the flow of input and ease of distraction in your world
There is a lot of talk about how connected wersquove become and how connectivity is driving tremendous business growth Does connectivity actually come with its fair share of downsides
Connectivity is obviously a two-edged sword We can have intimate productive and creative interaction instantly with someone on the other side of the world and we can just as easily be distracted and seduced into those engagements when they may not be the best use of our attention and resources Donrsquot shoot the medium Itrsquos all simply bringing attention to your clarity of direction and priorities or lack thereof
Could you share a few quick tips with our readers to instantly boost productivityWrite everything down that has your attention Decide the very next actions required to get closure on all of them Any next actions that require less than two minutes do instantly Park reminders of everything else somewhere that yoursquoll see when you can do something about them
We are currently facing a massive information overload What are some basic principles you could suggest to mentally organise such large amounts of dataConstantly ask yourself Where am I going Whatrsquos important and rewarding to me Is this information
the whole and then engage your resources with intuitive trust
As a CFO how can you transfer efficient workflow management skills to your employees Itrsquos very difficult to legislate processes for individuals ndash you can really only hold them accountable for their results But if you are managing your own commitments and intersections with them with integrity and rigour it will automatically force your team to ldquostep up to the platerdquo in their own behaviours in order to meet your standards If you request their complete list of their company projects and they canrsquot produce it thatrsquos a sign theyrsquore not in control If they make a commitment to you that they havenrsquot kept thatrsquos data about their performance GTD is simply about good operational business practices
With so many planning and organising activities in your methodology is there a risk of losing spontaneity as a strategistThe reason for these best practices is to optimise freedom creativity and spontaneity Without them
ldquoBut if you are manag-ing your own com-mitments and intersec-tions with them with integrity and rigour it will automatical-ly force them to ldquostep up to the platerdquo in their own behaviours in order to meet your standardsrdquo
64 wwwthecfomecom
supporting that Park whatever you find potentially meaningful somewhere that is easy to access when needed
Being an entrepreneur is a non-stop job How do you ensure that you have an adequate work-life balance Pay attention to what has your attentionmdashwith regard to anything Your health relationships career finances etc Notice when something might be ldquooffrdquo and make good decisions about what you need to do to get it back ldquoonrdquo again
Does your work teach people to be efficient or effective In essence they are the same thing Effective choices are generated by efficiency on a higher level If you want to implement strategy most effectively it demands utilising your resources optimally which is efficiency
Does motivation actually improve quality of work or purely quantityDepends on the focus of the motivation You can be motivated to work harder and you can be motivated to work smarter
What is your favourite productivity mantra that
you implement in your day-to-day lifeUsing my own in-basket and note-taking devices to capture potentially meaningful and valuable ideas and soon afterwards clearing all of them out by deciding what to do about them if anything
Your books seminars and other work inspires many individuals and businesses Who is your personal inspiration or role model I have many about many different aspects of my life The only person though that I ultimately trust as my best guide is my higher self which I try to access as frequently and clearly as I can
Finally what advice would you give to current business owners and aspiring entrepreneurs looking to gain complete control of their life and businessCapture what has your attention clarify what you need to do about it to get it off your mind organise the inventory of all your commitments at all levels review and reflect on all of that regularly relax and trust your inner wisdom to engage with the most appropriate thing in the moment
ldquoIf you want to implement strategy most effectively it demands utilising your resources optimallyrdquo
David Allen INTERVIEW
APPSTECH TALK
wwwthecfomecom 65
mAxImISE BUSINESS lsquoON-THE-GOrsquo WITH THESE HANDy APPS
ipAd SpECIAL
SAMSUNG UNvEILS GALAxY NOTE EDGE
Network
AP
Display
OS
Camera
Video
Audio
Additional Features
GoogleMobile Services
Connectivity
Sensor
Memory
Dimension
Battery
The availability of service may differ by country All functionality features specifications and other product information provided in this document including but not limited to the benefits design pricing components performance availability and capabilities of the product are subject to change without notice or obligation
Samsung Galaxy Note Edge Product Specifications
25G (GSM GPRS EDGE) 850 900 1800 1900 MHz3G (HSPA + 42Mbps) 850 900 1900 2100 MHz4G (LTE Cat 4 15050Mbps) or 4G(LTE Cat 6 30050Mbps)May differ by country and carrier
27 GHz Quad-Core Processor
56 inch (1419mm) Quad HD+ Super AMOLED (2560 x 1440 + 160)
Android 44 (KitKat)
Rear Facing 16 Mega pixel Auto Focus camera with Smart OISFront Facing 37 Mega pixel camera with f19Rear Facing Camera HDR (Rich tone) Selective Focus Rear-cam Selfie Beauty face Virtual Tour Shot ShotampMore Dual CameraFront Facing Camera Selfie Wide Selfie
Codec H264 MPEG-4 H263 VC-1 WMV7 WMV8 Sorenson Spark MP43 VP8 Recording amp Playback up to UHD
Codec MP3 AACAAC+eAAC+ WMA AMR-NBWB Vorbis FLAC()() Ultra High Quality Audio (~192KHz 24 bit) support
Multi WindowUltra Power Saving ModeVoice Recorder (Normal Mode Interview Mode Meeting Mode Voice Memo)Download BoosterS Health 35Dynamic Lock ScreenBriefingEdge screen UX Revolving Interaction Immersive apps(Camera Video S Note)Ticker board Express me Quick Tools Night Clock etc
Chrome Drive Photos Gmail Google Google+ Google Settings Hangouts Maps Play Books Play Games Play Newsstand Play Movie amp TV Play Music Play Store Voice Search YouTube
WiFi 80211 abgnac (HT80) MIMO PCIeGPS GLONASS BeidouNFC Bluetoothreg v 41 (BLE ANT+)IR LED (Remote Control) USB20 MHL 30
Gesture Accelerometer Geo-magnetic Gyroscope RGB IR-LEDProximity Barometer Hall Sensor Finger Scanner UV Heart Rate Monitoring SpO2 (Dependent on market)
32 64 GB Internal memory + microSD slot (up to 128GB)3GB RAM
1513 x 824 x 83mm 174g
Standard battery Li-ion 3000 mAh Fast Charging (Adaptive Fast Charging amp QC20)
wwwthecfomecom66
APPSTECH TALK
AIR DISPLAY
SQUARE REGISTER
Using this app you can connect your iPad to your computer and use it as an additional screen While working on an important presentation or sales proposal you can extend or mirror your computer screen on your iPad This app is compatible with both Mac and Windows computers Note that to use this feature you have to install Air Display on your iPad and a separate free app on your computer The computer and iPad also need to be on the same Wi-Fi network in order to work in-sync
For Mac users the app allows you to connect to up to four screens ndash all at the same time
Apart from the ability to convert your iPad into a wireless display whatrsquos also attractive about this app is that it allows you to control your computer wirelessly using your iPad
This fantastic application can serve as a mobile point of sale for your business It allows you to accept credit card payments ndash including Visa MasterCard Discover and American Express A transaction fee of 275 is charged for every time you swipe a card The sale amount is transferred to your account within two working days
Once you download the app you can sign up and register for a unique card reader solution called the lsquoSquare Readerrsquo (this is free) Square Reader encrypts all card details and ensures that the transaction is secure Once you receive your Square Reader you can connect it to your device and are all set
The application also offers added features such as transaction history connecting to a receipt printer creating employee logins and more
AED 3699
PRICE
Free
PRICE
wwwthecfomecom 67
APPSTECH TALK
DOCUSIGNHave you ever been in a situation where your employees need you to urgently sign a contract but arenrsquot able to physically reach you in time DocuSign solves this problem with its easy-to-use eSignature feature In three easy steps you can sign important documents and securely send them to your intended recipient
First you have to import the document to your device ndash this could be from Dropbox Google Drive or another select applications You then place your signature or any other important legal information you need to include such as initials Once you have finished working on the document send it back via e-mail
Whatrsquos particularly great about DocuSign is the great emphasis it puts on security ndash so that users donrsquot have to worry about getting into any legal trouble
Use DocuSign and never miss a deadline again
Free for basic version
PRICE
MPAYAn initiative by the Dubai eGovernment Department mPay is a simple application that allows you to make important payments Once yoursquove signed up and entered your payment details you are good to go You can pay your Dubai Electricity and Water Authority (DEWA) bills Etisalat utility bills Dubai Police fines Recharge SALIK and much more
A handy feature is its lsquoauto-rechargersquo option which you can use to set automatic payments
Free
PRICE
Opinion CIMAPERSONALITIES
wwwthecfomecom68
NEW HORIZONSBy geetu Ahuja Head of gCC at CIMA
The days of the traditional accountant working within a small community in a small town in a small market have long gone CFOs are now being referred to as Chief Frontier Officers as they travel from market to market overseeing their offices overseas This new expanded role has distinct advantages for both the company and the CFO who gain new skills and new insights from foreign branches a single hand at the helm of many markets provides business perspectives on a global scale and benchmarks across the board
On a personal level working abroad also has huge importance Robert Walters the specialist professional recruitment consultancy recently conducted a survey
of almost 2200 employees across a variety of professions exploring a number of topics which ranged from working practices and attitudes to careers The results highlighted some notable trends particularly for finance professionals
In career progression for example the survey showed that 50 of all accountants see working abroad as either lsquoessentialrsquo or lsquoextremely usefulrsquo to furthering their prospects more than banking professionals lawyers and IT workers ndash a strong indication of how accounting professionals are thinking about their future either within their existing company or with opportunities elsewhere
Accountants with globally recognised qualifications obviously have a greater chance of gaining some experience abroad and the lsquoGen Yrsquo professionals in particular seem ready to pack their bags In a CIMA study conducted in the UK last year over a third of those seeking employment in the
next two years will prioritise opportunities abroad over those in their home countries many of them enticed by the career incentives offered by the Middle East
How quickly can they land what seems to be their dream job What are the realities It may be that the move is simply from one branch to another and the only significant difference is a view from the window but for those expanding rather than changing their roles we have seen a very real need for a depth and breadth of knowledge never needed before
As geographical boundaries are pushed ever-wider a CFOrsquos responsibilities are pushed with them For many finance executives the understanding of their own patch of land is no longer enough they now have to be aware of foreign markets up to speed with foreign trends and au fait with foreign laws There is a need for a new commercial awareness in geography as well as philosophy
As geographical boundaries are pushed ever-wider a CFOrsquos responsibilities are pushed with them
John vargheseQampA
wwwthecfomecom 69
BUSINESSSET UP YOUR
IN THE UNITED ARAB EMIRATES
TO
WAREHOUSESOFFICES INDUSTRIAL LANDFLEXI
Quick and easy company set-up
Less than an hour drive from Dubai
Complete cost-effective packages including licences and facilities
100 foreign ownership
Zero income and corporate taxes
Eligibility for UAE Residence Visa
BUSINESS SET-UP SOLUTIONS STARTING FROM AED 15000 (USD 4000)
RAK FREE TRADE ZONE PROVIDES
RAK Free Trade Zone Authority - Government of Ras Al KhaimahUAE (Ras Al Khaimah) Tel +971 7 2041111 (Dubai) Tel +971 4 7041875 (Abu Dhabi) Tel +971 2 6994888
Germany (Cologne) - Turkey (Istanbul) - India (Mumbai)
Call +971 7 204 1111 Visit wwwrakftzcom Join rakftz
39
ERPANALyTICS
wwwthecfomecom
more intuitive designs of system development the overall experience of the ERP now extends from data warehousing to reporting analysis trend mapping business intelligence and governance oriented capabilities Yet these solutions amazingly execute all of these deliverables via portable handheld devices and through cloud environmentsrdquo
New generation ERP systems must now be on the go whilst including up to the minute analytics to provide deeper insight into the business ERP Analytics tools use historical data captured from various business functions to provide valuable information for efficiency and business performance each incredibly priceless to a leading CFO
Finesse is an ERP provider which is continually addressing the transformation of output which the ERP industry is offering the equally transitioning role of CFO
ldquoWe provide end-to-end business management solutions to SMEs and Enterprises Our approach to ERP is much more than providing simply an operational management systemrdquo said Finesse COO Sunil Paul
ldquoWe believe that todayrsquos businesses need much more than integrating sales with inventory accounting and manufacturing but also to have seamless integration with all their sales channels including the point of sales ecommerce and inbound sales solutionsrdquo
A major im-petus of the ERP-cen-tered growth is based on how effec-tive com-prehensive real-time data proves to be for the CFO
40 wwwthecfomecom
before thereby creating new global benchmarks for overall economic growth
Microsoft Arabia CFO Sadrul Khan offered insight into just how far the knowledge economy has influenced regional financial leadership by explaining how one of the most prioritised technologies by CFOs in the region is social platform monitoring
ldquoOne of the five technology choices that CFOs tend to prioritise in boosting productivity efficiencies and faster decision making in the fast paced business environment which include a social platform that monitors trends customer sentiments and helps process mashable data for customer centricity and business growthrdquo said Khan
A major impetus of the ERP-centered growth is based on how effective comprehensive real-time data proves to be for the CFO Whether employed as on-premise ERP software-as-a-service or cloud-based solutions a nearly identical ethos is being utilised Allowing the CFO to quickly access the performance of all facets of a business is paying dividends in the boardroom a reality which is showing itself increasingly in the Middle East
The technologically-charged relationship between ERP solutions and the regionrsquos CFOs is expanding and as a result has catalysed what many see as GCC economic performance outstripping that of many economies outside of the region as a result
In order to compete in todayrsquos fiercely competitive environment organisations need to think both innovatively and out of the box They require more insights about their business and their customers and need to ensure that they are able to meet the expectations of their internal as well as external stakeholders Enormous amounts of data both structured and unstructured is continuously being generated within the internal and external systems of the organisation which if analysed can be of immense value both to the business and subsequently the stakeholders associated with the organisation
With the the era of CFOs labouring over spreadsheets now in the past given how many business frontiers have become so dependent on mobile options such as the cloud more and more tech companies are providing the regionrsquos CFOs with information technology that converts traditional internal and external data into rich visual insights This information is then used for faster decision making and provides the ability for a CFO to assess manage and control risks Regional CFOs have grown enabled to drive corporate strategy accordingly demonstrating how the knowledge economy is now in full force amongst the Gulfrsquos corporates
Given that advanced IT has now become a regular CFO tool the regionrsquos CFOs are subsequently making faster decisions and driving internal growth models with greater speed and agility than ever
Tech companies are providing the regionrsquos CFOs with information technology that converts traditional internal and external data into rich visual insights
ERPANALyTICS
Donrsquot discoveritrsquos counterfeittoner afteritrsquos too lateOriginal HP Toner works first time every time1 unlike cheap toners which fail over half of the people who try it2 Non-HP toner can compromise your printerrsquos performance to give you streaked blotchy or faded prints Only original HP Toner cartridges deliver unmatched quality for the most professional-looking prints 100 of the time1
1 A QualityLogic 2010 study commissioned by HP comparing original HP LaserJet Monochrome print cartridges with nine brands of non-HP toner cartridges available in Europe Middle East and Africa for the HP LaserJet P1505 and P4015 printers HP 36A and 64A For details see wwwqualitylogiccomEMEAmonotonertestpdf 2 From a 2012 EMEA Lyra Research study commissioned by HP Results based on a total of 1050 HP Color LaserJet users who have used both original HP and non-HP toner cartridges of whom 552 experienced problems with non-HP cartridges
copy 2014 Hewlett-Packard Development Company LP
42
Private Equity ANALyTICS
wwwthecfomecom
The rise of PE-backed acquisitions is forcing CFOs to develop an entirely new set of skills
THE PRIvATE EQUITy CFO
The CFOrsquos utility in the world of private equity is without question on the rise The once-held belief of the CFO existing solely as the ldquoaccounting guyrdquo has been abandoned Over the last 20 years the role of CFO has become more demanding - requiring not just finance and accounting acumen but also a financial literacy in corporate planning risk management MampA assetliability management and regulation This evolution has been driven by a number of
key factors Yet the private equity industry which is now reshaping the corporate landscape through active ownership is by far the most significant factor driving change within the role of the CFO
PE-backed buyers today represent a larger percentage of overall buyers in the corporate acquisition marketplace than ever before Data provider Prequin estimates that as of June 2014 the capital raised by PE funds that
has not yet been deployed amounts to $114 trillion globally The result of this ldquodry powderrdquo is that a vast quantity of corporate acquisitions in the coming years will be undertaken by the private equity industry As such CFOs will be more accountable to demanding ldquosmart moneyrdquo shareholders than at any point in recent history Budgeting accounting and financial reporting will no longer exist as sole priorities but as a core competency among a
ldquoBy effec-tively using real-time data CFOs can create a dynamic process that proac-tively drives performance account-ability and value crea-tionrdquo
By Aaron Heidari
43
Private Equity ANALyTICS
wwwthecfomecom
robust set of complimentary and required skills Most of all the bar for CFOs is rising as PE investors will only accept above-average performance from their management teams
CFOs were once more reactive in function setting budgets based on other executivesrsquo plans and managing the flow of reporting to shareholders on a quarterly and yearly basis Today CFOs are required to become proactive managers of their respective businesses alongside their C-suite compatriots using a granular data-driven approach to aggregate analyse implement and report on every aspect of a companyrsquos operations
An important tool to drive this value creation process are KPIs Yet KPI structures including both aggregation and output are generally not up to the standards required of private equity investors prior to an investment being made
ldquoThe benefits of using KPIs and monthly reporting packages are significant By effectively using real-time data that is actionable and by partnering with functional area leaders within the organisation company CFOs can create a dynamic process that proactively drives performance accountability and value creationrdquo said Amanda Robinson Vice President of Accordion International in Dubai a consulting firm which is comprised of former private equity and investment banking professionals who
MENA region Cumulative Funds Under Management Since 2008
Source Zawya private Equity Monitor
19 636 20 36321 586
22 64323 506 24 250
-
5000
10000
15000
20000
25000
2008 2009 2010 2011 2012 2013
Cu
mu
lati
ve f
un
ds
($ m
)
$15mAverage MENA PE investment size in lsquo13
50Percentage of investment in IT and energy sectors
STAT FACTS
44 wwwthecfomecom
work with companies to deliver cost-effective project execution services
Active shareholders whose money it is being spent will typically require a data-driven justification before approving any budgets capital expenditures or new acquisitions Furthermore in many private equity backed companies the use of debt and the matching of shorter-term bank financing with longer-term investments will only be considered after a robust analysis is conducted to understand the companyrsquos ability to service that debt in the future This evaluation is not simply to identify revenues expenses and profits Itrsquos about drilling down into every transaction and rooting out data processing and reporting At least that is the expectation
The most valuable CFOs are those who have the ability not just to scrutinise and understand the financials but all also possess a wider grasp of the underlying data which truly comprise the business As an investor who has just acquired a stake in a new business I want a CFO who can manage the transition and stay ahead of my expectations Most of all a CFO should impress upon the companyrsquos shareholders a new way of doing business The first 100 days of an acquisition are said to be the most important During this period the CFOrsquos worth will be established when the new financial plan is due and the platform for the next five years of growth is presented
A CFO should man-age the tran-sition stay ahead of expectations and impress upon the companyrsquos shareholders a new way of doing business
Investment Volume By Sector Since 2006
Investment Volume By Sector in 2013
Source Zawya private Equity Monitor
1
3
30
17
3
28
3
4
6
4
6
5
17
9
9
6
9
5
8
6
6
2
3
10
Education
Education
Information Technology
Information Technology
Other
Other
Telecoms
Telecoms
Media
Media
Transport
Transport
Oil amp Gas
Oil amp Gas
Healthcare
Healthcare
Consumer goods
Consumer goods
Food amp Beverages
Food amp Beverages
Leisure
Leisure
Manufacturing
Manufacturing
ANALyTICS
Private Equity
2000857 NBAD ratibi mag ad 200x268 Finalindd 1 92514 1017 AM
46 wwwthecfomecom
THE FUTURE OFACCOUNTING EDUCATIONAddRESSINg THECOMpETENCY CRISIS
Have you ever stopped to think about how the accounting profession has changed since you graduated from college Recent graduates can answer this question by reflecting on the last two or three years whereas for other more seasoned professionals answering this question requires a bit more thought and memory searching Indeed we can all think of ways that the field of accounting is remarkably different today from the one we likely envisioned during our college daysmdashregardless of which decade we each donned our cap and gown This gradual transformation of the accounting profession leads to two important questions related to competencies bull Which competencies are important for success inaccounting todaybull Were these competencies consciously developed as partof your accounting degree programme
We suspect that more than a few of you would answer ldquonordquo to the second question Put another way our profession may be facingmdashmore so than at any time in the pastmdasha ldquocompetency crisisrdquo that is a gap between the competencies needed for professional success and those taught in our college classrooms today We propose a three-pronged strategy or ldquogame planrdquo for overcoming this competency crisis and in turn better preparing accounting graduates for the challenging world they will face First all of us accountants need to understand the changes that have already taken place in our profession and perhaps more importantly anticipate the changes that are on the horizon Second we need to educate ourselves and future generations of accountants so that as a collective group we can deliver the expanding set of competencies demanded in todayrsquos dynamic organisational
contexts Third as professional organisations and as individuals we need to think beyond ourselves by asking How can I (or we) help the accounting profession address the competency crisis
A Shift Toward Integrated ThinkingMany articles and white papers have been written that describe in detail the changes that have occurred in our profession over the last few decades but for our purposes wersquod like to distill these changes down to one crucial idea How does the accounting function add value to an organisation Accountants have evolved from support-oriented personnel who hand off information to others who actually make decisions into business partners who ldquohave a seat at the tablerdquo with managers
By peter C Brewer James E Sorensen CpA CgMA and david E Stout
47wwwthecfomecom
1048576bull What regulatory risks mayaccompany the proposal
1048576bull What social and environmentalfactors will we face if for example the proposal requires investing in overseas operations
1048576bull What types of employeeresistance may arise if we implement the proposal and how will we overcome the root causes of any such resistance
1048576bull Can and how should we valuefuture options associated with the proposal such as expanding or contracting the investment over time as new information becomes available
1048576bull Should we use debt or equity tofund the proposal
In short accountants have evolved to become integrated thinkers who enable EPM by partnering with managers across the organisation to add value Yet as EPM has gradually become the centrepiece of our professionrsquos value proposition accounting education hasnrsquot done enough to embrace it To overcome this gap wersquod like to further suggest that the concepts of competency integration and EPM need to come ldquofront and centrerdquo as we move forward in educating the next generation of successful accounting practitioners
Accounting Education No Longer on the SidelinesRecently a task force consisting of members of IMAreg (Institute of Management Accountants) and members of the Management Accounting Section (MAS) of the American Accounting Association (AAA) addressed the competency issue How should accounting education change fundamentally to help close the competencies gap The efforts of the task force led to
cash flows and how to apply discounted cash flow (DCF) decision models such as net present value (NPV) is of foundationalmdashsome might say critical mdash importance But integrated thinkers draw on an understanding of organisational strategy coupled with a broader set of competencies (beyond what might be considered technical or foundational knowledge) when making these types of decisions For example they consider how behavioural issues may influence the capital investment decision-making process Perhaps the financial estimates contained in the NPV analysis are too optimistic because the manager who prepared the numbers has a vested interest in seeing the project approved Decision makers also need to consider issues such as leasing vs buying a capital asset and the corresponding impacts on the financial statements and ratios that are tracked by investors and lenders What nonfinancial factors are associated with the proposed investment Add in the tax consequences of capital investment decisions coupled with the need to maintain internal control over any new business processes tied to these decisions and the need to think in an integrated fashion across a variety of accounting competencies becomes apparent
Furthermore becoming a true business partner with managers across the organisation requires more than simply integrating various accounting competencies It also means thinking like a business manager or a chief executive officer (CEO) Returning to the capital budgeting example an integrated thinker will ask questions such as
across the organisation Together they formulate and plan strategies then participate in collaborative decision-making processes that execute those strategies in a manner that adds stakeholder value Said another way accountants have evolved to become enterprise performance managers This shift in our orientation from a support function to an enterprise performance management (EPM) role has enormous implications for defining the determinants of success within our profession the most important of which involves becoming collaborators and ldquointegrated thinkersrdquo Take for example a common but important business decision process capital investment analysis Certainly technical knowledge regarding how to estimate relevant after-tax
48 wwwthecfomecom
expanding capital budgeting discussions to include financial statement impacts tax consequences and internal control issues integrates topical coverage across the External Reporting and Analysis Taxation Compliance and Planning and Assurance and Internal Control competencies shown in Figure 1
Third accounting curricula can incorporate a broader set of management competencies For example evaluating capital investment proposals from the perspectives of change management (Leadership) social and environmental issues (Ethics and Social Responsibility) regulatory concerns (Governance Risk and Compliance) and capital structure (Additional Core Business Competencies) brings a CEOrsquos perspective to the decision-making process
Fourth accounting curricula should include foundational competencies such as proficiency with spreadsheets and written and oral communication In the context of capital budgeting this may include asking students to use Microsoft Excel to perform a sensitivity analysis and then to present their findings to the entire class
Working to Fix the ProblemAt this point although you may agree with us that therersquos a competency crisis within the accounting profession you may be wondering What does this have to do with me What can my organisation do to help address this so-called competency crisis The answer a lot Practice partners and academic partners can help the accounting profession overcome the competency crisis That said letrsquos take a closer look at the role of practice partners first
improvement) and accounting competencies (external reporting and analysis planning analysis and control taxation compliance and planning information systems assurance and internal control and professional values ethics and attitudes) Of critical importance to the framework is the assumption that the set of competencies contained in Figure 1 would be developed and integrated over time through a blend of formal education (including continuing education) training and job experience
What levels of integrationmdashon the road to developing integrated thinkers in accountingmdashare possible First accounting educators can integrate within a single accounting competency So referring back to our capital budgeting discussion teaching computational models such as NPV analysis coupled with a review of various behavioural issues associated with capital investment decisions would be an example of integrating within the Planning Analysis and Control competency listed in Figure 1
Second professors can integrate across accounting competencies For example
a recently published article that contains a proposed framework for accounting education reproduced here as Figure 1 The framework is general in the sense that itrsquos meant to apply to all accounting students not subgroups based on career specialisation such as tax assurance services corporate finance and the like Itrsquos based on the idea that accounting educators can better prepare students to deliver our professionrsquos EPM value proposition through integrated competency-oriented curricula (For more see ldquoFocusing Accounting Curricula on Studentsrsquo Long-Run Careers Recommendations for an Integrated Competency-Based Framework for Accounting Educationrdquo in the May 2014 edition of Issues in Accounting Education)
A glance at Figure 1 reveals three levels of competencies foundational competencies (communication ability to leverage technology and analytical thinking and problem solving among others) broad management competencies (including leadership ethics and social responsibility and process management and
Proposed Competencies-based Framework for Accounting Education
FOUNDATIONALCOMPETENCIES
ACCOUNTING COMPETENCIES
BROAD MANAGEMENT COMPETENCIES
leadership
ExternalReportingamp Analysis
PlanningAnalysis
amp Control
TaxationComplianceamp Planning
InformationSystems
Assuranceamp InternalControl
ProfessionalValues Ethics
amp Attitudes
Communication
Quantitative
Interpersonal
Technological
Analytical Thinking ampProblem Solving
Ethics amp SocialResponsibility
ProcessManagement ampImprovement
GovernanceRisk amp
Compliance
AdditionalCore BusinessCompetencies
Although you may agree with us that therersquos a competency crisis within the account-ing profes-sion you may bewondering What does this haveto do with me
A practice partner should be or become a CMAreg (Certified Management Accountant) maintain professional certification by completing required Continuing Professional Education (CPE) hours and regularly read the IMA publications Strategic Finance and Management Accounting Quarterly
In addition there are a number of excellent resources that deal with topics covered in this article and that IMA makes available to its members
Strategic Finance PowerPacks(wwwimanetorg SFPowerPacks) These are resources focused on contemporary topics similar to those discussed earlier Current offerings include Risk Management Strategic Planning IT Skills amp Software and Internal Controls Each PowerPack includes a combination of resources such as research studies articles and links to webinars
Statements on Management Accounting (SMAs)(wwwimanetorgresources and_publicationsresearch_ studies_resourcesstatements on_management_accounting aspx) SMAs represent monographs classified into one of the following six categories Leadership Strategies and Ethics Technology Enablement Strategic Cost Management Business Performance Management Finance Governance Risk and Compliance and the Practice of Management Accounting Multiple items are available within each category For example the Practice of Management Accounting category includes (among other items)
49wwwthecfomecom
the Definition of Management Accounting and Implementing Shared Service Centres
Research Studies (wwwimanetorgresources_and_publicationsResearch_Studies_and_ResourcesAll_reportsaspx) The ldquoThoughtLeadershiprdquo section of IMArsquos website includes research covering a broad range of issues classified into seven categories For example under the ldquoGlobal Business Environmentrdquo category the following two research reports are available ldquoKey Differences Between IFRS and US GAAP Impact on Financial Reportingrdquo and ldquoCosting Methodologies and Cost Management Practices in the Peoplersquos Republic of Chinardquo
IMA Leadership Academy (www imanetorgprograms_events leadership_academyaspx) As described on the IMA website this programme is designed to assess a memberrsquos leadership status enhance that individualrsquos skills (principally through monthly webinars) and recognise leadership achievements These benefits are free to members
How You Can Make a Bigger Impact In addition to attending local regional and national IMA meetings consider inviting a small group of students to each chapter meeting This could be a wonderful (and relatively low-cost) option for mentoring aspiring accountants and finance professionals providing networking opportunities and introducing students to cutting-edge issues regarding the practice of management accounting Joining a university accounting
advisory group may be another way to influence the development of EPM in that institutionrsquos curriculum design
Other methods to enhance EPM in your organisation include (1) forming user groups within your company your local IMA chapter or your industry to review and share EPM experiences (2) encouraging advancement in the firm to be linked to EPM proficiency (3) focusing your companyrsquos recruiting efforts on candidates who display a background in andor understanding of EPM and (4) organising cross training within your company to enhance a mutual understanding of each otherrsquos respective roles
Finally visit the Competency CrisisTM website (http competencycrisisorg) set up by IMA to unite the accounting and finance constituencies professionals students employers academics and professorsmdashand explore competency issues through the lens of each stakeholder group The site is designed to ldquoencourage a discourse spur action and create a community dedicated to resolving the serious crisis of competency present in the professionrdquo Special sections of the website are devoted to educators students and employers professionals
Our Partners in Education Much like a practice partner an academic partner should be or become a CMA maintain professional accreditation by completing CPE hours and regularly read IMArsquos publications
Academic members of IMA can pursue and actively promote the CMA programme at their respective institutions
50 wwwthecfomecom
IMArsquos website contains helpful resources including an exam content overview content specification outlines for each of the two parts of the CMA exam and learning outcome statements The current exam covers some of the professional competencies represented in Figure 1 A summary of changes to exam content which will be effective in January 2015 is provided on the IMA website in News amp Media Relations which is located under ldquoAbout IMArdquo (See the press release dated March 24 2014) Other helpful resources include ldquoICMA Announces CMA Exam Content Changesrdquo in the April 2014 issue of Strategic Finance as well as ldquoManagement Accounting Career Readiness Shaping YOUR Curriculumrdquo
These forthcoming changes are based on the most recent IMA study of the knowledge and skills needed by management accountants from the view of CFOs controllers and other accountingfinance professionals from around the world
Also consider taking a group of your students to the IMA Student Leadership Conference held each November The Conference provides excellent networking opportunities for you your students and practicing professionals Students can learn firsthand from Conference presenters the challenges and opportunities facing finance and accounting professionals today
Moreover if your institution doesnrsquot currently have an IMA Student Chapter consider forming one One of the authors of this article David Stout reinstituted the student chapter at his school (Youngstown State University) after travelling with a group of his students to the IMA
Student Leadership Conference in Cleveland Ohio Through an IMA Student Chapter on campus students are able to work closely with a sponsoring local IMA chapter and bring to campus speakers who are experts in a wide range of topics including those discussed earlier in this article Each year student chapters compete for an Award of Excellence (AOE) and recognition as an Outstanding Student Chapter In addition IMA student members are able to engage in networking activities leadership training mentoring and community service programmesmdashall through their local chapter
You also might consider volunteering to serve as a Campus Advocate In this role yoursquoll represent IMA in all major matters of interest to your students (scholarship opportunities starting a student chapter mentoring and the like) and to your institution (for example leveraging IMA resources to advance the relevancy of the accounting curriculum use of educational case studies published in the IMA Educational Case Journal and access to IMArsquos ethics curriculum)
And if you havenrsquot yet done this ask IMA to endorse your accounting programme (information is available at www imanetorgeducator_resources indexaspx) This programme is designed to identify business curricula that meet the quality educational standards required to prepare students to earn the CMA designation Endorsement is based on an analysis of the curriculum and topics covered on the two-part CMA exam Currently 12 programmes have been endorsed
Finally if your school has an IMA Student Chapter consider participating in the annual IMA Student Case Competition where students are asked to propose a solution to a real world problem (Cases are solicited each year by Raef Lawson IMA VP of Research and Policy and IMA Professor in-Residence) Finalists make their presentations at IMArsquos Annual Conference amp Exposition before a set of judges consisting of accounting faculty members and practitioners Each year a new case is published in the August issue of Strategic Finance for students to use for that yearrsquos competition
Working TogetherIn this article we have summarised the changes that have affected the accounting profession and provided a competencies-based framework for guiding accounting educators in responding productively to those changes As a management accountant you know that implementing change in any organisation let alone within an entire profession never comes easily To be successful in overcoming our professionrsquos competency crisis IMArsquos practice and academic partners will need to assume leadership roles in defining enterprise performance management as the cornerstone of the accounting professionrsquos value proposition
This article was orginally published in the August 2014 issue of Strategic Finance It appears here with the permission of The Association of Accountants and financial professionals in Business
We need to educate ourselvesand future generations of account-ants so that as a collec-tive group we can deliver theexpanding set of com-petenciesdemanded in todayrsquos dynamicorgani-sational contexts
THE POWERFUL AND THRIFTY OFFICE ALL-ROUNDERS
The new ECOSYS M3560idn series will astound you With their print speeds of up to 60 pages per minute they are among the most productive A4 bw multifunctionals on the market We nevertheless managed to keep their ecological footprint and total cost of ownership impressively low by using our well-known ECOSYS technology and equipping the devices with our renowned long-life components The result Not only less waste and lower maintenance costs but also less hassle for you and all your colleagues You will also greatly appreciate the many customisation possibilities of the devices equipped with KYOCERArsquos open solution platform HyPAStrade as it allows you to tailor the device to your needs So yes we are proud of our new range of MFPs and can hardly wait to share their numerous benefits with you
For more information please contactKYOCERA Document Solutions Middle East | PB Box 500817 DubaiUAE | Tel +9714 4330 412 | Fax +9714 4231 944KYOCERA Document Solutions Europe BV - wwwkyoceradocumentsolutionseuKYOCERA Document Solutions Inc - wwwkyoceradocumentsolutionscom
52
ACCAINTERVIEW
wwwthecfomecom
GLOBAL By ASSOCIATION
across the region from our key employers and learning provider partners to our active and growing student and member base I want to understand their challenges and priorities and how ACCA can work with them to help support the economic success of the region
What can a CFO gain from working with ACCAThe ACCA qualification is about complete finance professionals For CFOs it brings the technical knowledge vital to business success complemented with the strategic management skills and ethical competence crucial to an organisationrsquos success As an organization ACCA in the UAE brings CFOs access to that local and global network of peers and expertise along with our leading research and insights that help them to keep up to date on the issues that matter most
Are there any initiatives in place to leverage the recently announced partnership with AAA
How are the ACCArsquos many years of activity being applied to the Middle EastACCA has now had a presence in the UAE for well over a decade During that time we have established strong relationships across the Middle East epitomised by the recent signing of our Strategic Partnership with AAA As a national body in choosing to partner with ACCA they recognised the local and global perspective we bring We are continuing to work with students members and employers across the Middle East to build their networks knowledge and business success through events research and insights and access to a growing number of online resources
Which initial priorities are among your key aims upon joining the organisationrsquos efforts in the UAEIn the first few months I hope to build on the success of the team in the UAE My priority will be to meet as many of our key stakeholders
The Association for Chartered Certified Accountants (ACCA) provides its services across a number of international borders The recent announcement of Lindsay Degouve de Nuncques as the new head of the Associationrsquos UAE chapter further exemplifies the ACCArsquos reach based on her previous work in the UK Nuncques shares here what she brings to the Middle East and just how globalisation has driven her ascent
53
ACCAINTERVIEW
wwwthecfomecom
The strategic partnership with AAA is the first of its kind in the region Students who complete the UAECA qualification will be entitled to both the AAA and ACCA designations and ACCA members in the UAE will also be eligible to apply for AAA membership This is a very exciting development in the market and together AAA and ACCA will be working to deliver maximum value to all our stakeholders from this partnership As we launch the UAECA qualification this activity will start in earnest
Which key industries will you be spotlighting in the Middle East in the months aheadOur experience of working across all sectors and levels of organisations globally gives ACCA a unique insight into all types of industries We will continue to be working with employers across the spectrum in the months ahead to help them gain the insight and make the connections that drive businesses to succeed at whatever they do
ldquoThe ACCA qualification is about complete finance professionals For CFOs it brings the technical knowledge vital to business success complemented with the strategic management skillsrdquo
54
Islamic FinanceMARKET OUTLOOK
wwwthecfomecom
In its 10th instalment the Forum is hosted in Dubai as a direct result of the UAErsquos increasing importance in the world of global Islamic finance
THE WORLD ISLAmIC ECONOmIC FORUm LANDS IN DUBAI
In Dubairsquos continued quest for leading the world across a range of spectrums the Emirate accelerated its desire to become the worldrsquos leading hub for Islamic finance by hosting the 10th installment of the World Islamic Economic Forum (WIEF) Delegates from dozens of countries attended to take part in a three-day event held at Madinat Jumeirah which rests alongside Dubairsquos gleaming coastline Held under the patronage of His Highness Sheikh Mohammed Bin Rashid Al Maktoum the
Vice President and Prime Minister of the UAE and Ruler of Dubai key speakers included The Honorary Dr Zeti Akhtar Aziz Governor of the Central Bank of Malaysia HE Kairat Kelimbetov Governor of the National Bank of Kazakhstan The Honorary Datorsquo Sri Mohd Najib Tun Abdul Razal Prime Minister of Malaysia and HE Xavier Bettel Prime Minister of the Grand Duchy of Luxembourg
Launched in 2006 in Malaysia WIEF has grown in tandem with the increased
Delegates from dozens of countries attended WIEF to take part in the three-day event
sophistication and reach of Islamic finance After a successful event in London in 2013 amidst increased interest in Islamic finance across Europe WIEF relocated to Dubai where the local business structure is keen to host halal finance
Said Hamad Buamim President and CEO Dubai Chamber of Commerce and Industry co-organisers of the event ldquo[The forum] is the start of a new chapter of cooperation between Dubai and the world as part of
55
Islamic FinanceMARKET OUTLOOK
wwwthecfomecom
Dubai Capital of Islamic Economy visionhellipestablishing a unified regulatory authority to provide the framework for standards across halal industries will significantly accelerate growth Likewise we need to see increased cooperation and partnership between the public and private sectors This is already happening with great success here in Dubairdquo
The order of global cooperation needed to facilitate growth across the Islamic finance world was more than apparent at WIEF based on how many differing nations were represented at the event The exhibitorrsquos hall was populated with a number of key Malaysian stands representative of the Southeast Asianrsquos ranking as the global leader in Islamic finance Also present were companies from Saudi Arabia also a key locality in the worldrsquos halal industries An interesting yet prescient presence was of attendees from South Korea a nation which is eager to participate in Islamic finance and will be hosting the WIEF Pyeongchang Roundtable in December 2014
ldquoGangwon is a province located in Korea which is very interested in new business opportunities Wersquove realised the strength of the Islamic economy and have come here with many different companies The first type is based in real estate investment We also have companies which want to export their products to the Islamic economy based on their halal qualities And Gangwon will also be hosting the Winter
ldquoKorea is very interested in the strength of the Islamic economy and wants to export its products based on their halal qualitiesrdquo
56 wwwthecfomecom
$247trillionProjected value of halal products industry in lsquo18
125Muslim percentage of global tourism expenditure
STAT FACTSOlympics in 2018 and are presently seeking investments for this as wellrdquo said Seong-hun Kim a member of Gangwon Province Governmentrsquos Export Support Team
Dubai proved to be an excellent place for the event considering how well the UAE is able to so regularly corral international cooperation A key sign of this was witnessed recently when Luxembourg now considered the third most important base for Islamic finance globally opened a finance office in Dubai International Finance Centre The European nation also opened a euro200 sukuk earlier this year which was quickly oversubscribed
The prime minister of Luxembourg offered the WIEF audience a riveting speech which detailed just how international the Forum has become whilst encouraging more of the world to support the growing influence of Islamic finance
Said Bettel ldquoWe need to innovate more economic partnerships for growth We sometimes need to reengineer relationships but also have to make sure these relationships remain sustainable Growth in one country also brings growth to others as long as this is guided by free market initiatives Free trade and free flow of capital combined with innovation leads to prosperity We have all gathered here in Dubai to explore the future of Islamic finance and Luxembourg is also a pioneer of Islamic finance in Europe The Islamic financial sector has a major role to play in continued global growthrdquo
The Islamic Corporation for the Development of the Private Sector (ICD) is based in the Kingdom of Saudi Arabia where it manages an international fund worth $2 billion half of which is available for subscription With shareholders in more than 50 countries and a sovereign sukuk fund recently launched in West Africa the ICDrsquos CEO Khaled M Al Aboodi attended WIEF this year excited to participate in the global event
How does the ICD approach its attendance at the World Islamic Economic ForumI think the Forum is one of the best places for discussing the financial issues of the OEC member countries It has been around for ten years and has grown to become a very important platform for discussion Wersquore here to attend and listen but also to network Itrsquos a great networking platform and a place to share views whilst letting everyone know what we have to offer
How has Islamic finance changed over the yearsOf course itrsquos growing in a large scale Some of it actually needs more support particularly with respect to regulatory frameworks Wersquore trying to partner with many international organisations like the IMF to try to provide support to countries to adapt regulation for Islamic finance Sukuk issuance is one of the biggest issues that needs to be addressed because there is a huge amount of liquidity in this arena Due to issues related to regulation sukuk issuance can be costly But with the regulation we are confident it will be on a level playing field with other forms of finance Compliance is a major area where more work can be done The Forum started with a roundtable on sukuk which shows how helpful WIEF has been over the years
What type of work does ICD do internationallyICD helped the government of Senegal to issue the first sovereign sukuk This was successfully issued last summer Progressing in this manner is something wersquod like to see continue across West Africa in order to utilise its resources with aiding development in the region in mind
QampA WITH KHALED M AL ABOODI CEO OF ICD
Islamic FinanceMARKET OUTLOOK
OFFICIAL SPONSORS
ENDORSED BY OFFICIAL HOST OFFICIAL
COMMUNICATIONS PARTNER
MEYDAN HOTEL DUBAI UAE19 - 20 NOVEMBER 2014
WOMENOMICSthe next emerging market
TAKE PART in making change happen UNITE with business and through leaders from across the globe
PARTICIPATE to the expansion of a modern and inclusive economy
58
Gautam PradhanINTERVIEW
wwwthecfomecom
SUCCESS BEyOND BOUNDARIES
in other management roles such as strategic decision making mentoring and leading efficiency and productivity across a range of other departments and functions as well as a being a catalyst in ensuring that the boardrsquos vision for the organisation is achieved
A significant percentage of NMDCrsquos shares are owned publicly Does the CFO play a role in balancing the interests of the shareholdersAs a CFO balancing the shareholdersrsquo interests is definitely part of my responsibility In order to achieve this goal there needs to be a careful evaluation of each decision while keeping the short-term and long-term goals of the company in mind At NMDC we actively implement a system where we utilise a balance scorecard as a method of ensuring that all our primary objectives are met yet at the same time continuously enhance our relationships with our shareholders
NMDC has completed various projects across the Emirates Are there plans to move abroadAs NMDC moves towards becoming an international player our strategic expansion plans are focused in areas within the GCC region and India In line with this strategy we opened
How has a company with such a unique set of deliverables grown so consistently over the yearsOur organisation strongly believes that the core to our strength is the people process and equipment A strategic decision led by our Board of Directors and the senior management has been implemented that required us to consistently invest in these three aspects to help expand our business beyond the territorial boundaries of the UAE and at the same time enhance what we can offer which is relevant to these segments We attribute our success to the efforts which every employee contributes We also strongly believe in the ldquoWe can make it happenrdquo principle The management raises the index of performance while setting SMART objectives within the organisation and encouraging the employees to achieve them
How has your position as the CFO changed over NMDCrsquos 35 years of operationAs the market evolves and business dynamics change my role as the CFO has become complex and more challenging A few years back I was mainly focused on bookkeeping accounting and other financial responsibilities such as arranging bank facilities But moving forward I became more involved
The UAE is progressively becoming a hub for world-class infrastructure The country has duly impressed the rest of the globe with noteworthy land developments showcased across the emirates Among the remarkable landscapes found in Abu Dhabi are the Corniche Beach Yas Island and Sir Baniyas Island Behind these successful projects is NMDC the dredging division of Abu Dhabi National Oil Company (ADNOC)
In an interview with CFO Magazine Gautam Pradhan Chief Financial Officer NMDC shares an exclusive look into the companyrsquos international blueprint for growth and his dynamic role as a strategic leader of one of the best in dredging and marine construction in the Middle East
59
Gautam PradhanINTERVIEW
wwwthecfomecom
branches in Qatar Bahrain Oman and India This has paid rich dividends recently as projects of strategic importance are bagged in Qatar and Bahrain Furthermore NMDC (UAE) has recently played a key role as a leader of an international consortium with Royal Boskalis Westminister (Netherlands) and Jan De Nul Group (Belgium) for the awarding of the Suez Canal Dredging project in Egypt Moving forward we have devised a strategic approach that will enable us to play a key role in the development of Indiarsquos marine infrastructure
What are the global strategies that are part of the CFOrsquos responsibilitiesAs CFO understanding the macro economic scenario risk analysis and mitigating those risks are all a part of my responsibilities I also have to have a proper comprehension
ldquoA few years back I was mainly focused on financial responsibilities moving forward I became more involved in strategic decision making mentoring and leading productivityrdquo
Gautam PradhanINTERVIEW
60 wwwthecfomecom
of the challenges faced by the company in terms of dealing with foreign contracts direct and indirect taxes and hedging and managing the integration process These are essential to enhance shareholders wealth and mitigate undue risk
How significant is accountancy for NMDC in its operations Why exactlyAccountancy is the lifeline of any company it does not only record the finances it also reflects the health of the organisation The MIS reports analysis trends and statistical information go a long way toward effectively providing
the diagnostic approach essential for the company
How have NMDCrsquos environmental activities helped the companyrsquos bottom lineNMDCrsquos work is well-synchronised with our environmental activities and specifically with nature Our activities are closely linked to sand and water and we view such activities with strategic importance Projects such as increasing water supply to mangroves and beach nourishment help us support the environmental activities while adding to our bottom line
ldquoAccountancy is the lifeline of any company it does not only record the finances it also reflects the health of the organisationrdquo
A burgeoning slice of Abu Dhabi coastline
The largest business awards
in the GCC30th November Dubai
nominate now at wwwstarsofbusinessawardscom
Stars of Business has become an iconic awards brand like no other in the region It recognizes the very best SMEs across 26 business categories Itrsquos universally respected as scientifically assessed and unimpeachably judged
327000 SMEs across the UAE$234 billion estimated total revenue of the SME sector4974 Awards entries in 20131856 Individual company applicants
Presenting Partner Strategic SME Partner Gold Sponsor Gold Sponsor VIP Hospitality Partner Supporting Partner
Trade Facilitator PartnerTrade Credit PartnerLogistics Partner
Institutional Partner Institutional Partner Event Partner
OrganiserPublisherMedia Partner Media PartnerPort Authority Partner
62
David Allen INTERVIEW
wwwthecfomecom
What went into completing your bestseller ndash Getting Things Done (GTD)After twenty years of researching developing and implementing a methodology for achieving stress-free productivity based upon
thousands of hours spent desk-side with
some of the best brightest and busiest people in the world I decided to write the manual for it Thatrsquos what Getting Things Done is
What are the five phases of mastering workflowIn order to get
any situation under control so
you can focus you will utilise these five
steps Whether yoursquore managing your kitchen
or your company you will need to collect and capture what has your attention clarify what if anything to do about it organise it according to what it means to you review and reflect upon it in relation to
Todayrsquos evolving CFO is often caught between the world of business set-up generating revenue managing employees and building strong company infrastructure When can things actually get done What can one do to boost productivity and master workflow World-renowned business coach David Allen has the answers
PRODUCTIvITy PRINCIPLES WITH
DAvID ALLEN
63
David Allen INTERVIEW
wwwthecfomecom
those are greatly subvertedHow does one maintain a fair balance between the time spent planning and actually getting things doneYou simply need to spend just the amount of time you need to to trust that what you are getting done is the right thing to be getting done in the moment It takes as long as it takes to get to that point Why would you do anything less
How can one apply your core productivity and workflow principles to todayrsquos technologically driven environmentThe principles and their techniques are system-independent Whether you have meaningful input from the Internet your smartphone or a conversation in the hall you must engage with it equally Technology has simply increased the flow of input and ease of distraction in your world
There is a lot of talk about how connected wersquove become and how connectivity is driving tremendous business growth Does connectivity actually come with its fair share of downsides
Connectivity is obviously a two-edged sword We can have intimate productive and creative interaction instantly with someone on the other side of the world and we can just as easily be distracted and seduced into those engagements when they may not be the best use of our attention and resources Donrsquot shoot the medium Itrsquos all simply bringing attention to your clarity of direction and priorities or lack thereof
Could you share a few quick tips with our readers to instantly boost productivityWrite everything down that has your attention Decide the very next actions required to get closure on all of them Any next actions that require less than two minutes do instantly Park reminders of everything else somewhere that yoursquoll see when you can do something about them
We are currently facing a massive information overload What are some basic principles you could suggest to mentally organise such large amounts of dataConstantly ask yourself Where am I going Whatrsquos important and rewarding to me Is this information
the whole and then engage your resources with intuitive trust
As a CFO how can you transfer efficient workflow management skills to your employees Itrsquos very difficult to legislate processes for individuals ndash you can really only hold them accountable for their results But if you are managing your own commitments and intersections with them with integrity and rigour it will automatically force your team to ldquostep up to the platerdquo in their own behaviours in order to meet your standards If you request their complete list of their company projects and they canrsquot produce it thatrsquos a sign theyrsquore not in control If they make a commitment to you that they havenrsquot kept thatrsquos data about their performance GTD is simply about good operational business practices
With so many planning and organising activities in your methodology is there a risk of losing spontaneity as a strategistThe reason for these best practices is to optimise freedom creativity and spontaneity Without them
ldquoBut if you are manag-ing your own com-mitments and intersec-tions with them with integrity and rigour it will automatical-ly force them to ldquostep up to the platerdquo in their own behaviours in order to meet your standardsrdquo
64 wwwthecfomecom
supporting that Park whatever you find potentially meaningful somewhere that is easy to access when needed
Being an entrepreneur is a non-stop job How do you ensure that you have an adequate work-life balance Pay attention to what has your attentionmdashwith regard to anything Your health relationships career finances etc Notice when something might be ldquooffrdquo and make good decisions about what you need to do to get it back ldquoonrdquo again
Does your work teach people to be efficient or effective In essence they are the same thing Effective choices are generated by efficiency on a higher level If you want to implement strategy most effectively it demands utilising your resources optimally which is efficiency
Does motivation actually improve quality of work or purely quantityDepends on the focus of the motivation You can be motivated to work harder and you can be motivated to work smarter
What is your favourite productivity mantra that
you implement in your day-to-day lifeUsing my own in-basket and note-taking devices to capture potentially meaningful and valuable ideas and soon afterwards clearing all of them out by deciding what to do about them if anything
Your books seminars and other work inspires many individuals and businesses Who is your personal inspiration or role model I have many about many different aspects of my life The only person though that I ultimately trust as my best guide is my higher self which I try to access as frequently and clearly as I can
Finally what advice would you give to current business owners and aspiring entrepreneurs looking to gain complete control of their life and businessCapture what has your attention clarify what you need to do about it to get it off your mind organise the inventory of all your commitments at all levels review and reflect on all of that regularly relax and trust your inner wisdom to engage with the most appropriate thing in the moment
ldquoIf you want to implement strategy most effectively it demands utilising your resources optimallyrdquo
David Allen INTERVIEW
APPSTECH TALK
wwwthecfomecom 65
mAxImISE BUSINESS lsquoON-THE-GOrsquo WITH THESE HANDy APPS
ipAd SpECIAL
SAMSUNG UNvEILS GALAxY NOTE EDGE
Network
AP
Display
OS
Camera
Video
Audio
Additional Features
GoogleMobile Services
Connectivity
Sensor
Memory
Dimension
Battery
The availability of service may differ by country All functionality features specifications and other product information provided in this document including but not limited to the benefits design pricing components performance availability and capabilities of the product are subject to change without notice or obligation
Samsung Galaxy Note Edge Product Specifications
25G (GSM GPRS EDGE) 850 900 1800 1900 MHz3G (HSPA + 42Mbps) 850 900 1900 2100 MHz4G (LTE Cat 4 15050Mbps) or 4G(LTE Cat 6 30050Mbps)May differ by country and carrier
27 GHz Quad-Core Processor
56 inch (1419mm) Quad HD+ Super AMOLED (2560 x 1440 + 160)
Android 44 (KitKat)
Rear Facing 16 Mega pixel Auto Focus camera with Smart OISFront Facing 37 Mega pixel camera with f19Rear Facing Camera HDR (Rich tone) Selective Focus Rear-cam Selfie Beauty face Virtual Tour Shot ShotampMore Dual CameraFront Facing Camera Selfie Wide Selfie
Codec H264 MPEG-4 H263 VC-1 WMV7 WMV8 Sorenson Spark MP43 VP8 Recording amp Playback up to UHD
Codec MP3 AACAAC+eAAC+ WMA AMR-NBWB Vorbis FLAC()() Ultra High Quality Audio (~192KHz 24 bit) support
Multi WindowUltra Power Saving ModeVoice Recorder (Normal Mode Interview Mode Meeting Mode Voice Memo)Download BoosterS Health 35Dynamic Lock ScreenBriefingEdge screen UX Revolving Interaction Immersive apps(Camera Video S Note)Ticker board Express me Quick Tools Night Clock etc
Chrome Drive Photos Gmail Google Google+ Google Settings Hangouts Maps Play Books Play Games Play Newsstand Play Movie amp TV Play Music Play Store Voice Search YouTube
WiFi 80211 abgnac (HT80) MIMO PCIeGPS GLONASS BeidouNFC Bluetoothreg v 41 (BLE ANT+)IR LED (Remote Control) USB20 MHL 30
Gesture Accelerometer Geo-magnetic Gyroscope RGB IR-LEDProximity Barometer Hall Sensor Finger Scanner UV Heart Rate Monitoring SpO2 (Dependent on market)
32 64 GB Internal memory + microSD slot (up to 128GB)3GB RAM
1513 x 824 x 83mm 174g
Standard battery Li-ion 3000 mAh Fast Charging (Adaptive Fast Charging amp QC20)
wwwthecfomecom66
APPSTECH TALK
AIR DISPLAY
SQUARE REGISTER
Using this app you can connect your iPad to your computer and use it as an additional screen While working on an important presentation or sales proposal you can extend or mirror your computer screen on your iPad This app is compatible with both Mac and Windows computers Note that to use this feature you have to install Air Display on your iPad and a separate free app on your computer The computer and iPad also need to be on the same Wi-Fi network in order to work in-sync
For Mac users the app allows you to connect to up to four screens ndash all at the same time
Apart from the ability to convert your iPad into a wireless display whatrsquos also attractive about this app is that it allows you to control your computer wirelessly using your iPad
This fantastic application can serve as a mobile point of sale for your business It allows you to accept credit card payments ndash including Visa MasterCard Discover and American Express A transaction fee of 275 is charged for every time you swipe a card The sale amount is transferred to your account within two working days
Once you download the app you can sign up and register for a unique card reader solution called the lsquoSquare Readerrsquo (this is free) Square Reader encrypts all card details and ensures that the transaction is secure Once you receive your Square Reader you can connect it to your device and are all set
The application also offers added features such as transaction history connecting to a receipt printer creating employee logins and more
AED 3699
PRICE
Free
PRICE
wwwthecfomecom 67
APPSTECH TALK
DOCUSIGNHave you ever been in a situation where your employees need you to urgently sign a contract but arenrsquot able to physically reach you in time DocuSign solves this problem with its easy-to-use eSignature feature In three easy steps you can sign important documents and securely send them to your intended recipient
First you have to import the document to your device ndash this could be from Dropbox Google Drive or another select applications You then place your signature or any other important legal information you need to include such as initials Once you have finished working on the document send it back via e-mail
Whatrsquos particularly great about DocuSign is the great emphasis it puts on security ndash so that users donrsquot have to worry about getting into any legal trouble
Use DocuSign and never miss a deadline again
Free for basic version
PRICE
MPAYAn initiative by the Dubai eGovernment Department mPay is a simple application that allows you to make important payments Once yoursquove signed up and entered your payment details you are good to go You can pay your Dubai Electricity and Water Authority (DEWA) bills Etisalat utility bills Dubai Police fines Recharge SALIK and much more
A handy feature is its lsquoauto-rechargersquo option which you can use to set automatic payments
Free
PRICE
Opinion CIMAPERSONALITIES
wwwthecfomecom68
NEW HORIZONSBy geetu Ahuja Head of gCC at CIMA
The days of the traditional accountant working within a small community in a small town in a small market have long gone CFOs are now being referred to as Chief Frontier Officers as they travel from market to market overseeing their offices overseas This new expanded role has distinct advantages for both the company and the CFO who gain new skills and new insights from foreign branches a single hand at the helm of many markets provides business perspectives on a global scale and benchmarks across the board
On a personal level working abroad also has huge importance Robert Walters the specialist professional recruitment consultancy recently conducted a survey
of almost 2200 employees across a variety of professions exploring a number of topics which ranged from working practices and attitudes to careers The results highlighted some notable trends particularly for finance professionals
In career progression for example the survey showed that 50 of all accountants see working abroad as either lsquoessentialrsquo or lsquoextremely usefulrsquo to furthering their prospects more than banking professionals lawyers and IT workers ndash a strong indication of how accounting professionals are thinking about their future either within their existing company or with opportunities elsewhere
Accountants with globally recognised qualifications obviously have a greater chance of gaining some experience abroad and the lsquoGen Yrsquo professionals in particular seem ready to pack their bags In a CIMA study conducted in the UK last year over a third of those seeking employment in the
next two years will prioritise opportunities abroad over those in their home countries many of them enticed by the career incentives offered by the Middle East
How quickly can they land what seems to be their dream job What are the realities It may be that the move is simply from one branch to another and the only significant difference is a view from the window but for those expanding rather than changing their roles we have seen a very real need for a depth and breadth of knowledge never needed before
As geographical boundaries are pushed ever-wider a CFOrsquos responsibilities are pushed with them For many finance executives the understanding of their own patch of land is no longer enough they now have to be aware of foreign markets up to speed with foreign trends and au fait with foreign laws There is a need for a new commercial awareness in geography as well as philosophy
As geographical boundaries are pushed ever-wider a CFOrsquos responsibilities are pushed with them
John vargheseQampA
wwwthecfomecom 69
BUSINESSSET UP YOUR
IN THE UNITED ARAB EMIRATES
TO
WAREHOUSESOFFICES INDUSTRIAL LANDFLEXI
Quick and easy company set-up
Less than an hour drive from Dubai
Complete cost-effective packages including licences and facilities
100 foreign ownership
Zero income and corporate taxes
Eligibility for UAE Residence Visa
BUSINESS SET-UP SOLUTIONS STARTING FROM AED 15000 (USD 4000)
RAK FREE TRADE ZONE PROVIDES
RAK Free Trade Zone Authority - Government of Ras Al KhaimahUAE (Ras Al Khaimah) Tel +971 7 2041111 (Dubai) Tel +971 4 7041875 (Abu Dhabi) Tel +971 2 6994888
Germany (Cologne) - Turkey (Istanbul) - India (Mumbai)
Call +971 7 204 1111 Visit wwwrakftzcom Join rakftz
40 wwwthecfomecom
before thereby creating new global benchmarks for overall economic growth
Microsoft Arabia CFO Sadrul Khan offered insight into just how far the knowledge economy has influenced regional financial leadership by explaining how one of the most prioritised technologies by CFOs in the region is social platform monitoring
ldquoOne of the five technology choices that CFOs tend to prioritise in boosting productivity efficiencies and faster decision making in the fast paced business environment which include a social platform that monitors trends customer sentiments and helps process mashable data for customer centricity and business growthrdquo said Khan
A major impetus of the ERP-centered growth is based on how effective comprehensive real-time data proves to be for the CFO Whether employed as on-premise ERP software-as-a-service or cloud-based solutions a nearly identical ethos is being utilised Allowing the CFO to quickly access the performance of all facets of a business is paying dividends in the boardroom a reality which is showing itself increasingly in the Middle East
The technologically-charged relationship between ERP solutions and the regionrsquos CFOs is expanding and as a result has catalysed what many see as GCC economic performance outstripping that of many economies outside of the region as a result
In order to compete in todayrsquos fiercely competitive environment organisations need to think both innovatively and out of the box They require more insights about their business and their customers and need to ensure that they are able to meet the expectations of their internal as well as external stakeholders Enormous amounts of data both structured and unstructured is continuously being generated within the internal and external systems of the organisation which if analysed can be of immense value both to the business and subsequently the stakeholders associated with the organisation
With the the era of CFOs labouring over spreadsheets now in the past given how many business frontiers have become so dependent on mobile options such as the cloud more and more tech companies are providing the regionrsquos CFOs with information technology that converts traditional internal and external data into rich visual insights This information is then used for faster decision making and provides the ability for a CFO to assess manage and control risks Regional CFOs have grown enabled to drive corporate strategy accordingly demonstrating how the knowledge economy is now in full force amongst the Gulfrsquos corporates
Given that advanced IT has now become a regular CFO tool the regionrsquos CFOs are subsequently making faster decisions and driving internal growth models with greater speed and agility than ever
Tech companies are providing the regionrsquos CFOs with information technology that converts traditional internal and external data into rich visual insights
ERPANALyTICS
Donrsquot discoveritrsquos counterfeittoner afteritrsquos too lateOriginal HP Toner works first time every time1 unlike cheap toners which fail over half of the people who try it2 Non-HP toner can compromise your printerrsquos performance to give you streaked blotchy or faded prints Only original HP Toner cartridges deliver unmatched quality for the most professional-looking prints 100 of the time1
1 A QualityLogic 2010 study commissioned by HP comparing original HP LaserJet Monochrome print cartridges with nine brands of non-HP toner cartridges available in Europe Middle East and Africa for the HP LaserJet P1505 and P4015 printers HP 36A and 64A For details see wwwqualitylogiccomEMEAmonotonertestpdf 2 From a 2012 EMEA Lyra Research study commissioned by HP Results based on a total of 1050 HP Color LaserJet users who have used both original HP and non-HP toner cartridges of whom 552 experienced problems with non-HP cartridges
copy 2014 Hewlett-Packard Development Company LP
42
Private Equity ANALyTICS
wwwthecfomecom
The rise of PE-backed acquisitions is forcing CFOs to develop an entirely new set of skills
THE PRIvATE EQUITy CFO
The CFOrsquos utility in the world of private equity is without question on the rise The once-held belief of the CFO existing solely as the ldquoaccounting guyrdquo has been abandoned Over the last 20 years the role of CFO has become more demanding - requiring not just finance and accounting acumen but also a financial literacy in corporate planning risk management MampA assetliability management and regulation This evolution has been driven by a number of
key factors Yet the private equity industry which is now reshaping the corporate landscape through active ownership is by far the most significant factor driving change within the role of the CFO
PE-backed buyers today represent a larger percentage of overall buyers in the corporate acquisition marketplace than ever before Data provider Prequin estimates that as of June 2014 the capital raised by PE funds that
has not yet been deployed amounts to $114 trillion globally The result of this ldquodry powderrdquo is that a vast quantity of corporate acquisitions in the coming years will be undertaken by the private equity industry As such CFOs will be more accountable to demanding ldquosmart moneyrdquo shareholders than at any point in recent history Budgeting accounting and financial reporting will no longer exist as sole priorities but as a core competency among a
ldquoBy effec-tively using real-time data CFOs can create a dynamic process that proac-tively drives performance account-ability and value crea-tionrdquo
By Aaron Heidari
43
Private Equity ANALyTICS
wwwthecfomecom
robust set of complimentary and required skills Most of all the bar for CFOs is rising as PE investors will only accept above-average performance from their management teams
CFOs were once more reactive in function setting budgets based on other executivesrsquo plans and managing the flow of reporting to shareholders on a quarterly and yearly basis Today CFOs are required to become proactive managers of their respective businesses alongside their C-suite compatriots using a granular data-driven approach to aggregate analyse implement and report on every aspect of a companyrsquos operations
An important tool to drive this value creation process are KPIs Yet KPI structures including both aggregation and output are generally not up to the standards required of private equity investors prior to an investment being made
ldquoThe benefits of using KPIs and monthly reporting packages are significant By effectively using real-time data that is actionable and by partnering with functional area leaders within the organisation company CFOs can create a dynamic process that proactively drives performance accountability and value creationrdquo said Amanda Robinson Vice President of Accordion International in Dubai a consulting firm which is comprised of former private equity and investment banking professionals who
MENA region Cumulative Funds Under Management Since 2008
Source Zawya private Equity Monitor
19 636 20 36321 586
22 64323 506 24 250
-
5000
10000
15000
20000
25000
2008 2009 2010 2011 2012 2013
Cu
mu
lati
ve f
un
ds
($ m
)
$15mAverage MENA PE investment size in lsquo13
50Percentage of investment in IT and energy sectors
STAT FACTS
44 wwwthecfomecom
work with companies to deliver cost-effective project execution services
Active shareholders whose money it is being spent will typically require a data-driven justification before approving any budgets capital expenditures or new acquisitions Furthermore in many private equity backed companies the use of debt and the matching of shorter-term bank financing with longer-term investments will only be considered after a robust analysis is conducted to understand the companyrsquos ability to service that debt in the future This evaluation is not simply to identify revenues expenses and profits Itrsquos about drilling down into every transaction and rooting out data processing and reporting At least that is the expectation
The most valuable CFOs are those who have the ability not just to scrutinise and understand the financials but all also possess a wider grasp of the underlying data which truly comprise the business As an investor who has just acquired a stake in a new business I want a CFO who can manage the transition and stay ahead of my expectations Most of all a CFO should impress upon the companyrsquos shareholders a new way of doing business The first 100 days of an acquisition are said to be the most important During this period the CFOrsquos worth will be established when the new financial plan is due and the platform for the next five years of growth is presented
A CFO should man-age the tran-sition stay ahead of expectations and impress upon the companyrsquos shareholders a new way of doing business
Investment Volume By Sector Since 2006
Investment Volume By Sector in 2013
Source Zawya private Equity Monitor
1
3
30
17
3
28
3
4
6
4
6
5
17
9
9
6
9
5
8
6
6
2
3
10
Education
Education
Information Technology
Information Technology
Other
Other
Telecoms
Telecoms
Media
Media
Transport
Transport
Oil amp Gas
Oil amp Gas
Healthcare
Healthcare
Consumer goods
Consumer goods
Food amp Beverages
Food amp Beverages
Leisure
Leisure
Manufacturing
Manufacturing
ANALyTICS
Private Equity
2000857 NBAD ratibi mag ad 200x268 Finalindd 1 92514 1017 AM
46 wwwthecfomecom
THE FUTURE OFACCOUNTING EDUCATIONAddRESSINg THECOMpETENCY CRISIS
Have you ever stopped to think about how the accounting profession has changed since you graduated from college Recent graduates can answer this question by reflecting on the last two or three years whereas for other more seasoned professionals answering this question requires a bit more thought and memory searching Indeed we can all think of ways that the field of accounting is remarkably different today from the one we likely envisioned during our college daysmdashregardless of which decade we each donned our cap and gown This gradual transformation of the accounting profession leads to two important questions related to competencies bull Which competencies are important for success inaccounting todaybull Were these competencies consciously developed as partof your accounting degree programme
We suspect that more than a few of you would answer ldquonordquo to the second question Put another way our profession may be facingmdashmore so than at any time in the pastmdasha ldquocompetency crisisrdquo that is a gap between the competencies needed for professional success and those taught in our college classrooms today We propose a three-pronged strategy or ldquogame planrdquo for overcoming this competency crisis and in turn better preparing accounting graduates for the challenging world they will face First all of us accountants need to understand the changes that have already taken place in our profession and perhaps more importantly anticipate the changes that are on the horizon Second we need to educate ourselves and future generations of accountants so that as a collective group we can deliver the expanding set of competencies demanded in todayrsquos dynamic organisational
contexts Third as professional organisations and as individuals we need to think beyond ourselves by asking How can I (or we) help the accounting profession address the competency crisis
A Shift Toward Integrated ThinkingMany articles and white papers have been written that describe in detail the changes that have occurred in our profession over the last few decades but for our purposes wersquod like to distill these changes down to one crucial idea How does the accounting function add value to an organisation Accountants have evolved from support-oriented personnel who hand off information to others who actually make decisions into business partners who ldquohave a seat at the tablerdquo with managers
By peter C Brewer James E Sorensen CpA CgMA and david E Stout
47wwwthecfomecom
1048576bull What regulatory risks mayaccompany the proposal
1048576bull What social and environmentalfactors will we face if for example the proposal requires investing in overseas operations
1048576bull What types of employeeresistance may arise if we implement the proposal and how will we overcome the root causes of any such resistance
1048576bull Can and how should we valuefuture options associated with the proposal such as expanding or contracting the investment over time as new information becomes available
1048576bull Should we use debt or equity tofund the proposal
In short accountants have evolved to become integrated thinkers who enable EPM by partnering with managers across the organisation to add value Yet as EPM has gradually become the centrepiece of our professionrsquos value proposition accounting education hasnrsquot done enough to embrace it To overcome this gap wersquod like to further suggest that the concepts of competency integration and EPM need to come ldquofront and centrerdquo as we move forward in educating the next generation of successful accounting practitioners
Accounting Education No Longer on the SidelinesRecently a task force consisting of members of IMAreg (Institute of Management Accountants) and members of the Management Accounting Section (MAS) of the American Accounting Association (AAA) addressed the competency issue How should accounting education change fundamentally to help close the competencies gap The efforts of the task force led to
cash flows and how to apply discounted cash flow (DCF) decision models such as net present value (NPV) is of foundationalmdashsome might say critical mdash importance But integrated thinkers draw on an understanding of organisational strategy coupled with a broader set of competencies (beyond what might be considered technical or foundational knowledge) when making these types of decisions For example they consider how behavioural issues may influence the capital investment decision-making process Perhaps the financial estimates contained in the NPV analysis are too optimistic because the manager who prepared the numbers has a vested interest in seeing the project approved Decision makers also need to consider issues such as leasing vs buying a capital asset and the corresponding impacts on the financial statements and ratios that are tracked by investors and lenders What nonfinancial factors are associated with the proposed investment Add in the tax consequences of capital investment decisions coupled with the need to maintain internal control over any new business processes tied to these decisions and the need to think in an integrated fashion across a variety of accounting competencies becomes apparent
Furthermore becoming a true business partner with managers across the organisation requires more than simply integrating various accounting competencies It also means thinking like a business manager or a chief executive officer (CEO) Returning to the capital budgeting example an integrated thinker will ask questions such as
across the organisation Together they formulate and plan strategies then participate in collaborative decision-making processes that execute those strategies in a manner that adds stakeholder value Said another way accountants have evolved to become enterprise performance managers This shift in our orientation from a support function to an enterprise performance management (EPM) role has enormous implications for defining the determinants of success within our profession the most important of which involves becoming collaborators and ldquointegrated thinkersrdquo Take for example a common but important business decision process capital investment analysis Certainly technical knowledge regarding how to estimate relevant after-tax
48 wwwthecfomecom
expanding capital budgeting discussions to include financial statement impacts tax consequences and internal control issues integrates topical coverage across the External Reporting and Analysis Taxation Compliance and Planning and Assurance and Internal Control competencies shown in Figure 1
Third accounting curricula can incorporate a broader set of management competencies For example evaluating capital investment proposals from the perspectives of change management (Leadership) social and environmental issues (Ethics and Social Responsibility) regulatory concerns (Governance Risk and Compliance) and capital structure (Additional Core Business Competencies) brings a CEOrsquos perspective to the decision-making process
Fourth accounting curricula should include foundational competencies such as proficiency with spreadsheets and written and oral communication In the context of capital budgeting this may include asking students to use Microsoft Excel to perform a sensitivity analysis and then to present their findings to the entire class
Working to Fix the ProblemAt this point although you may agree with us that therersquos a competency crisis within the accounting profession you may be wondering What does this have to do with me What can my organisation do to help address this so-called competency crisis The answer a lot Practice partners and academic partners can help the accounting profession overcome the competency crisis That said letrsquos take a closer look at the role of practice partners first
improvement) and accounting competencies (external reporting and analysis planning analysis and control taxation compliance and planning information systems assurance and internal control and professional values ethics and attitudes) Of critical importance to the framework is the assumption that the set of competencies contained in Figure 1 would be developed and integrated over time through a blend of formal education (including continuing education) training and job experience
What levels of integrationmdashon the road to developing integrated thinkers in accountingmdashare possible First accounting educators can integrate within a single accounting competency So referring back to our capital budgeting discussion teaching computational models such as NPV analysis coupled with a review of various behavioural issues associated with capital investment decisions would be an example of integrating within the Planning Analysis and Control competency listed in Figure 1
Second professors can integrate across accounting competencies For example
a recently published article that contains a proposed framework for accounting education reproduced here as Figure 1 The framework is general in the sense that itrsquos meant to apply to all accounting students not subgroups based on career specialisation such as tax assurance services corporate finance and the like Itrsquos based on the idea that accounting educators can better prepare students to deliver our professionrsquos EPM value proposition through integrated competency-oriented curricula (For more see ldquoFocusing Accounting Curricula on Studentsrsquo Long-Run Careers Recommendations for an Integrated Competency-Based Framework for Accounting Educationrdquo in the May 2014 edition of Issues in Accounting Education)
A glance at Figure 1 reveals three levels of competencies foundational competencies (communication ability to leverage technology and analytical thinking and problem solving among others) broad management competencies (including leadership ethics and social responsibility and process management and
Proposed Competencies-based Framework for Accounting Education
FOUNDATIONALCOMPETENCIES
ACCOUNTING COMPETENCIES
BROAD MANAGEMENT COMPETENCIES
leadership
ExternalReportingamp Analysis
PlanningAnalysis
amp Control
TaxationComplianceamp Planning
InformationSystems
Assuranceamp InternalControl
ProfessionalValues Ethics
amp Attitudes
Communication
Quantitative
Interpersonal
Technological
Analytical Thinking ampProblem Solving
Ethics amp SocialResponsibility
ProcessManagement ampImprovement
GovernanceRisk amp
Compliance
AdditionalCore BusinessCompetencies
Although you may agree with us that therersquos a competency crisis within the account-ing profes-sion you may bewondering What does this haveto do with me
A practice partner should be or become a CMAreg (Certified Management Accountant) maintain professional certification by completing required Continuing Professional Education (CPE) hours and regularly read the IMA publications Strategic Finance and Management Accounting Quarterly
In addition there are a number of excellent resources that deal with topics covered in this article and that IMA makes available to its members
Strategic Finance PowerPacks(wwwimanetorg SFPowerPacks) These are resources focused on contemporary topics similar to those discussed earlier Current offerings include Risk Management Strategic Planning IT Skills amp Software and Internal Controls Each PowerPack includes a combination of resources such as research studies articles and links to webinars
Statements on Management Accounting (SMAs)(wwwimanetorgresources and_publicationsresearch_ studies_resourcesstatements on_management_accounting aspx) SMAs represent monographs classified into one of the following six categories Leadership Strategies and Ethics Technology Enablement Strategic Cost Management Business Performance Management Finance Governance Risk and Compliance and the Practice of Management Accounting Multiple items are available within each category For example the Practice of Management Accounting category includes (among other items)
49wwwthecfomecom
the Definition of Management Accounting and Implementing Shared Service Centres
Research Studies (wwwimanetorgresources_and_publicationsResearch_Studies_and_ResourcesAll_reportsaspx) The ldquoThoughtLeadershiprdquo section of IMArsquos website includes research covering a broad range of issues classified into seven categories For example under the ldquoGlobal Business Environmentrdquo category the following two research reports are available ldquoKey Differences Between IFRS and US GAAP Impact on Financial Reportingrdquo and ldquoCosting Methodologies and Cost Management Practices in the Peoplersquos Republic of Chinardquo
IMA Leadership Academy (www imanetorgprograms_events leadership_academyaspx) As described on the IMA website this programme is designed to assess a memberrsquos leadership status enhance that individualrsquos skills (principally through monthly webinars) and recognise leadership achievements These benefits are free to members
How You Can Make a Bigger Impact In addition to attending local regional and national IMA meetings consider inviting a small group of students to each chapter meeting This could be a wonderful (and relatively low-cost) option for mentoring aspiring accountants and finance professionals providing networking opportunities and introducing students to cutting-edge issues regarding the practice of management accounting Joining a university accounting
advisory group may be another way to influence the development of EPM in that institutionrsquos curriculum design
Other methods to enhance EPM in your organisation include (1) forming user groups within your company your local IMA chapter or your industry to review and share EPM experiences (2) encouraging advancement in the firm to be linked to EPM proficiency (3) focusing your companyrsquos recruiting efforts on candidates who display a background in andor understanding of EPM and (4) organising cross training within your company to enhance a mutual understanding of each otherrsquos respective roles
Finally visit the Competency CrisisTM website (http competencycrisisorg) set up by IMA to unite the accounting and finance constituencies professionals students employers academics and professorsmdashand explore competency issues through the lens of each stakeholder group The site is designed to ldquoencourage a discourse spur action and create a community dedicated to resolving the serious crisis of competency present in the professionrdquo Special sections of the website are devoted to educators students and employers professionals
Our Partners in Education Much like a practice partner an academic partner should be or become a CMA maintain professional accreditation by completing CPE hours and regularly read IMArsquos publications
Academic members of IMA can pursue and actively promote the CMA programme at their respective institutions
50 wwwthecfomecom
IMArsquos website contains helpful resources including an exam content overview content specification outlines for each of the two parts of the CMA exam and learning outcome statements The current exam covers some of the professional competencies represented in Figure 1 A summary of changes to exam content which will be effective in January 2015 is provided on the IMA website in News amp Media Relations which is located under ldquoAbout IMArdquo (See the press release dated March 24 2014) Other helpful resources include ldquoICMA Announces CMA Exam Content Changesrdquo in the April 2014 issue of Strategic Finance as well as ldquoManagement Accounting Career Readiness Shaping YOUR Curriculumrdquo
These forthcoming changes are based on the most recent IMA study of the knowledge and skills needed by management accountants from the view of CFOs controllers and other accountingfinance professionals from around the world
Also consider taking a group of your students to the IMA Student Leadership Conference held each November The Conference provides excellent networking opportunities for you your students and practicing professionals Students can learn firsthand from Conference presenters the challenges and opportunities facing finance and accounting professionals today
Moreover if your institution doesnrsquot currently have an IMA Student Chapter consider forming one One of the authors of this article David Stout reinstituted the student chapter at his school (Youngstown State University) after travelling with a group of his students to the IMA
Student Leadership Conference in Cleveland Ohio Through an IMA Student Chapter on campus students are able to work closely with a sponsoring local IMA chapter and bring to campus speakers who are experts in a wide range of topics including those discussed earlier in this article Each year student chapters compete for an Award of Excellence (AOE) and recognition as an Outstanding Student Chapter In addition IMA student members are able to engage in networking activities leadership training mentoring and community service programmesmdashall through their local chapter
You also might consider volunteering to serve as a Campus Advocate In this role yoursquoll represent IMA in all major matters of interest to your students (scholarship opportunities starting a student chapter mentoring and the like) and to your institution (for example leveraging IMA resources to advance the relevancy of the accounting curriculum use of educational case studies published in the IMA Educational Case Journal and access to IMArsquos ethics curriculum)
And if you havenrsquot yet done this ask IMA to endorse your accounting programme (information is available at www imanetorgeducator_resources indexaspx) This programme is designed to identify business curricula that meet the quality educational standards required to prepare students to earn the CMA designation Endorsement is based on an analysis of the curriculum and topics covered on the two-part CMA exam Currently 12 programmes have been endorsed
Finally if your school has an IMA Student Chapter consider participating in the annual IMA Student Case Competition where students are asked to propose a solution to a real world problem (Cases are solicited each year by Raef Lawson IMA VP of Research and Policy and IMA Professor in-Residence) Finalists make their presentations at IMArsquos Annual Conference amp Exposition before a set of judges consisting of accounting faculty members and practitioners Each year a new case is published in the August issue of Strategic Finance for students to use for that yearrsquos competition
Working TogetherIn this article we have summarised the changes that have affected the accounting profession and provided a competencies-based framework for guiding accounting educators in responding productively to those changes As a management accountant you know that implementing change in any organisation let alone within an entire profession never comes easily To be successful in overcoming our professionrsquos competency crisis IMArsquos practice and academic partners will need to assume leadership roles in defining enterprise performance management as the cornerstone of the accounting professionrsquos value proposition
This article was orginally published in the August 2014 issue of Strategic Finance It appears here with the permission of The Association of Accountants and financial professionals in Business
We need to educate ourselvesand future generations of account-ants so that as a collec-tive group we can deliver theexpanding set of com-petenciesdemanded in todayrsquos dynamicorgani-sational contexts
THE POWERFUL AND THRIFTY OFFICE ALL-ROUNDERS
The new ECOSYS M3560idn series will astound you With their print speeds of up to 60 pages per minute they are among the most productive A4 bw multifunctionals on the market We nevertheless managed to keep their ecological footprint and total cost of ownership impressively low by using our well-known ECOSYS technology and equipping the devices with our renowned long-life components The result Not only less waste and lower maintenance costs but also less hassle for you and all your colleagues You will also greatly appreciate the many customisation possibilities of the devices equipped with KYOCERArsquos open solution platform HyPAStrade as it allows you to tailor the device to your needs So yes we are proud of our new range of MFPs and can hardly wait to share their numerous benefits with you
For more information please contactKYOCERA Document Solutions Middle East | PB Box 500817 DubaiUAE | Tel +9714 4330 412 | Fax +9714 4231 944KYOCERA Document Solutions Europe BV - wwwkyoceradocumentsolutionseuKYOCERA Document Solutions Inc - wwwkyoceradocumentsolutionscom
52
ACCAINTERVIEW
wwwthecfomecom
GLOBAL By ASSOCIATION
across the region from our key employers and learning provider partners to our active and growing student and member base I want to understand their challenges and priorities and how ACCA can work with them to help support the economic success of the region
What can a CFO gain from working with ACCAThe ACCA qualification is about complete finance professionals For CFOs it brings the technical knowledge vital to business success complemented with the strategic management skills and ethical competence crucial to an organisationrsquos success As an organization ACCA in the UAE brings CFOs access to that local and global network of peers and expertise along with our leading research and insights that help them to keep up to date on the issues that matter most
Are there any initiatives in place to leverage the recently announced partnership with AAA
How are the ACCArsquos many years of activity being applied to the Middle EastACCA has now had a presence in the UAE for well over a decade During that time we have established strong relationships across the Middle East epitomised by the recent signing of our Strategic Partnership with AAA As a national body in choosing to partner with ACCA they recognised the local and global perspective we bring We are continuing to work with students members and employers across the Middle East to build their networks knowledge and business success through events research and insights and access to a growing number of online resources
Which initial priorities are among your key aims upon joining the organisationrsquos efforts in the UAEIn the first few months I hope to build on the success of the team in the UAE My priority will be to meet as many of our key stakeholders
The Association for Chartered Certified Accountants (ACCA) provides its services across a number of international borders The recent announcement of Lindsay Degouve de Nuncques as the new head of the Associationrsquos UAE chapter further exemplifies the ACCArsquos reach based on her previous work in the UK Nuncques shares here what she brings to the Middle East and just how globalisation has driven her ascent
53
ACCAINTERVIEW
wwwthecfomecom
The strategic partnership with AAA is the first of its kind in the region Students who complete the UAECA qualification will be entitled to both the AAA and ACCA designations and ACCA members in the UAE will also be eligible to apply for AAA membership This is a very exciting development in the market and together AAA and ACCA will be working to deliver maximum value to all our stakeholders from this partnership As we launch the UAECA qualification this activity will start in earnest
Which key industries will you be spotlighting in the Middle East in the months aheadOur experience of working across all sectors and levels of organisations globally gives ACCA a unique insight into all types of industries We will continue to be working with employers across the spectrum in the months ahead to help them gain the insight and make the connections that drive businesses to succeed at whatever they do
ldquoThe ACCA qualification is about complete finance professionals For CFOs it brings the technical knowledge vital to business success complemented with the strategic management skillsrdquo
54
Islamic FinanceMARKET OUTLOOK
wwwthecfomecom
In its 10th instalment the Forum is hosted in Dubai as a direct result of the UAErsquos increasing importance in the world of global Islamic finance
THE WORLD ISLAmIC ECONOmIC FORUm LANDS IN DUBAI
In Dubairsquos continued quest for leading the world across a range of spectrums the Emirate accelerated its desire to become the worldrsquos leading hub for Islamic finance by hosting the 10th installment of the World Islamic Economic Forum (WIEF) Delegates from dozens of countries attended to take part in a three-day event held at Madinat Jumeirah which rests alongside Dubairsquos gleaming coastline Held under the patronage of His Highness Sheikh Mohammed Bin Rashid Al Maktoum the
Vice President and Prime Minister of the UAE and Ruler of Dubai key speakers included The Honorary Dr Zeti Akhtar Aziz Governor of the Central Bank of Malaysia HE Kairat Kelimbetov Governor of the National Bank of Kazakhstan The Honorary Datorsquo Sri Mohd Najib Tun Abdul Razal Prime Minister of Malaysia and HE Xavier Bettel Prime Minister of the Grand Duchy of Luxembourg
Launched in 2006 in Malaysia WIEF has grown in tandem with the increased
Delegates from dozens of countries attended WIEF to take part in the three-day event
sophistication and reach of Islamic finance After a successful event in London in 2013 amidst increased interest in Islamic finance across Europe WIEF relocated to Dubai where the local business structure is keen to host halal finance
Said Hamad Buamim President and CEO Dubai Chamber of Commerce and Industry co-organisers of the event ldquo[The forum] is the start of a new chapter of cooperation between Dubai and the world as part of
55
Islamic FinanceMARKET OUTLOOK
wwwthecfomecom
Dubai Capital of Islamic Economy visionhellipestablishing a unified regulatory authority to provide the framework for standards across halal industries will significantly accelerate growth Likewise we need to see increased cooperation and partnership between the public and private sectors This is already happening with great success here in Dubairdquo
The order of global cooperation needed to facilitate growth across the Islamic finance world was more than apparent at WIEF based on how many differing nations were represented at the event The exhibitorrsquos hall was populated with a number of key Malaysian stands representative of the Southeast Asianrsquos ranking as the global leader in Islamic finance Also present were companies from Saudi Arabia also a key locality in the worldrsquos halal industries An interesting yet prescient presence was of attendees from South Korea a nation which is eager to participate in Islamic finance and will be hosting the WIEF Pyeongchang Roundtable in December 2014
ldquoGangwon is a province located in Korea which is very interested in new business opportunities Wersquove realised the strength of the Islamic economy and have come here with many different companies The first type is based in real estate investment We also have companies which want to export their products to the Islamic economy based on their halal qualities And Gangwon will also be hosting the Winter
ldquoKorea is very interested in the strength of the Islamic economy and wants to export its products based on their halal qualitiesrdquo
56 wwwthecfomecom
$247trillionProjected value of halal products industry in lsquo18
125Muslim percentage of global tourism expenditure
STAT FACTSOlympics in 2018 and are presently seeking investments for this as wellrdquo said Seong-hun Kim a member of Gangwon Province Governmentrsquos Export Support Team
Dubai proved to be an excellent place for the event considering how well the UAE is able to so regularly corral international cooperation A key sign of this was witnessed recently when Luxembourg now considered the third most important base for Islamic finance globally opened a finance office in Dubai International Finance Centre The European nation also opened a euro200 sukuk earlier this year which was quickly oversubscribed
The prime minister of Luxembourg offered the WIEF audience a riveting speech which detailed just how international the Forum has become whilst encouraging more of the world to support the growing influence of Islamic finance
Said Bettel ldquoWe need to innovate more economic partnerships for growth We sometimes need to reengineer relationships but also have to make sure these relationships remain sustainable Growth in one country also brings growth to others as long as this is guided by free market initiatives Free trade and free flow of capital combined with innovation leads to prosperity We have all gathered here in Dubai to explore the future of Islamic finance and Luxembourg is also a pioneer of Islamic finance in Europe The Islamic financial sector has a major role to play in continued global growthrdquo
The Islamic Corporation for the Development of the Private Sector (ICD) is based in the Kingdom of Saudi Arabia where it manages an international fund worth $2 billion half of which is available for subscription With shareholders in more than 50 countries and a sovereign sukuk fund recently launched in West Africa the ICDrsquos CEO Khaled M Al Aboodi attended WIEF this year excited to participate in the global event
How does the ICD approach its attendance at the World Islamic Economic ForumI think the Forum is one of the best places for discussing the financial issues of the OEC member countries It has been around for ten years and has grown to become a very important platform for discussion Wersquore here to attend and listen but also to network Itrsquos a great networking platform and a place to share views whilst letting everyone know what we have to offer
How has Islamic finance changed over the yearsOf course itrsquos growing in a large scale Some of it actually needs more support particularly with respect to regulatory frameworks Wersquore trying to partner with many international organisations like the IMF to try to provide support to countries to adapt regulation for Islamic finance Sukuk issuance is one of the biggest issues that needs to be addressed because there is a huge amount of liquidity in this arena Due to issues related to regulation sukuk issuance can be costly But with the regulation we are confident it will be on a level playing field with other forms of finance Compliance is a major area where more work can be done The Forum started with a roundtable on sukuk which shows how helpful WIEF has been over the years
What type of work does ICD do internationallyICD helped the government of Senegal to issue the first sovereign sukuk This was successfully issued last summer Progressing in this manner is something wersquod like to see continue across West Africa in order to utilise its resources with aiding development in the region in mind
QampA WITH KHALED M AL ABOODI CEO OF ICD
Islamic FinanceMARKET OUTLOOK
OFFICIAL SPONSORS
ENDORSED BY OFFICIAL HOST OFFICIAL
COMMUNICATIONS PARTNER
MEYDAN HOTEL DUBAI UAE19 - 20 NOVEMBER 2014
WOMENOMICSthe next emerging market
TAKE PART in making change happen UNITE with business and through leaders from across the globe
PARTICIPATE to the expansion of a modern and inclusive economy
58
Gautam PradhanINTERVIEW
wwwthecfomecom
SUCCESS BEyOND BOUNDARIES
in other management roles such as strategic decision making mentoring and leading efficiency and productivity across a range of other departments and functions as well as a being a catalyst in ensuring that the boardrsquos vision for the organisation is achieved
A significant percentage of NMDCrsquos shares are owned publicly Does the CFO play a role in balancing the interests of the shareholdersAs a CFO balancing the shareholdersrsquo interests is definitely part of my responsibility In order to achieve this goal there needs to be a careful evaluation of each decision while keeping the short-term and long-term goals of the company in mind At NMDC we actively implement a system where we utilise a balance scorecard as a method of ensuring that all our primary objectives are met yet at the same time continuously enhance our relationships with our shareholders
NMDC has completed various projects across the Emirates Are there plans to move abroadAs NMDC moves towards becoming an international player our strategic expansion plans are focused in areas within the GCC region and India In line with this strategy we opened
How has a company with such a unique set of deliverables grown so consistently over the yearsOur organisation strongly believes that the core to our strength is the people process and equipment A strategic decision led by our Board of Directors and the senior management has been implemented that required us to consistently invest in these three aspects to help expand our business beyond the territorial boundaries of the UAE and at the same time enhance what we can offer which is relevant to these segments We attribute our success to the efforts which every employee contributes We also strongly believe in the ldquoWe can make it happenrdquo principle The management raises the index of performance while setting SMART objectives within the organisation and encouraging the employees to achieve them
How has your position as the CFO changed over NMDCrsquos 35 years of operationAs the market evolves and business dynamics change my role as the CFO has become complex and more challenging A few years back I was mainly focused on bookkeeping accounting and other financial responsibilities such as arranging bank facilities But moving forward I became more involved
The UAE is progressively becoming a hub for world-class infrastructure The country has duly impressed the rest of the globe with noteworthy land developments showcased across the emirates Among the remarkable landscapes found in Abu Dhabi are the Corniche Beach Yas Island and Sir Baniyas Island Behind these successful projects is NMDC the dredging division of Abu Dhabi National Oil Company (ADNOC)
In an interview with CFO Magazine Gautam Pradhan Chief Financial Officer NMDC shares an exclusive look into the companyrsquos international blueprint for growth and his dynamic role as a strategic leader of one of the best in dredging and marine construction in the Middle East
59
Gautam PradhanINTERVIEW
wwwthecfomecom
branches in Qatar Bahrain Oman and India This has paid rich dividends recently as projects of strategic importance are bagged in Qatar and Bahrain Furthermore NMDC (UAE) has recently played a key role as a leader of an international consortium with Royal Boskalis Westminister (Netherlands) and Jan De Nul Group (Belgium) for the awarding of the Suez Canal Dredging project in Egypt Moving forward we have devised a strategic approach that will enable us to play a key role in the development of Indiarsquos marine infrastructure
What are the global strategies that are part of the CFOrsquos responsibilitiesAs CFO understanding the macro economic scenario risk analysis and mitigating those risks are all a part of my responsibilities I also have to have a proper comprehension
ldquoA few years back I was mainly focused on financial responsibilities moving forward I became more involved in strategic decision making mentoring and leading productivityrdquo
Gautam PradhanINTERVIEW
60 wwwthecfomecom
of the challenges faced by the company in terms of dealing with foreign contracts direct and indirect taxes and hedging and managing the integration process These are essential to enhance shareholders wealth and mitigate undue risk
How significant is accountancy for NMDC in its operations Why exactlyAccountancy is the lifeline of any company it does not only record the finances it also reflects the health of the organisation The MIS reports analysis trends and statistical information go a long way toward effectively providing
the diagnostic approach essential for the company
How have NMDCrsquos environmental activities helped the companyrsquos bottom lineNMDCrsquos work is well-synchronised with our environmental activities and specifically with nature Our activities are closely linked to sand and water and we view such activities with strategic importance Projects such as increasing water supply to mangroves and beach nourishment help us support the environmental activities while adding to our bottom line
ldquoAccountancy is the lifeline of any company it does not only record the finances it also reflects the health of the organisationrdquo
A burgeoning slice of Abu Dhabi coastline
The largest business awards
in the GCC30th November Dubai
nominate now at wwwstarsofbusinessawardscom
Stars of Business has become an iconic awards brand like no other in the region It recognizes the very best SMEs across 26 business categories Itrsquos universally respected as scientifically assessed and unimpeachably judged
327000 SMEs across the UAE$234 billion estimated total revenue of the SME sector4974 Awards entries in 20131856 Individual company applicants
Presenting Partner Strategic SME Partner Gold Sponsor Gold Sponsor VIP Hospitality Partner Supporting Partner
Trade Facilitator PartnerTrade Credit PartnerLogistics Partner
Institutional Partner Institutional Partner Event Partner
OrganiserPublisherMedia Partner Media PartnerPort Authority Partner
62
David Allen INTERVIEW
wwwthecfomecom
What went into completing your bestseller ndash Getting Things Done (GTD)After twenty years of researching developing and implementing a methodology for achieving stress-free productivity based upon
thousands of hours spent desk-side with
some of the best brightest and busiest people in the world I decided to write the manual for it Thatrsquos what Getting Things Done is
What are the five phases of mastering workflowIn order to get
any situation under control so
you can focus you will utilise these five
steps Whether yoursquore managing your kitchen
or your company you will need to collect and capture what has your attention clarify what if anything to do about it organise it according to what it means to you review and reflect upon it in relation to
Todayrsquos evolving CFO is often caught between the world of business set-up generating revenue managing employees and building strong company infrastructure When can things actually get done What can one do to boost productivity and master workflow World-renowned business coach David Allen has the answers
PRODUCTIvITy PRINCIPLES WITH
DAvID ALLEN
63
David Allen INTERVIEW
wwwthecfomecom
those are greatly subvertedHow does one maintain a fair balance between the time spent planning and actually getting things doneYou simply need to spend just the amount of time you need to to trust that what you are getting done is the right thing to be getting done in the moment It takes as long as it takes to get to that point Why would you do anything less
How can one apply your core productivity and workflow principles to todayrsquos technologically driven environmentThe principles and their techniques are system-independent Whether you have meaningful input from the Internet your smartphone or a conversation in the hall you must engage with it equally Technology has simply increased the flow of input and ease of distraction in your world
There is a lot of talk about how connected wersquove become and how connectivity is driving tremendous business growth Does connectivity actually come with its fair share of downsides
Connectivity is obviously a two-edged sword We can have intimate productive and creative interaction instantly with someone on the other side of the world and we can just as easily be distracted and seduced into those engagements when they may not be the best use of our attention and resources Donrsquot shoot the medium Itrsquos all simply bringing attention to your clarity of direction and priorities or lack thereof
Could you share a few quick tips with our readers to instantly boost productivityWrite everything down that has your attention Decide the very next actions required to get closure on all of them Any next actions that require less than two minutes do instantly Park reminders of everything else somewhere that yoursquoll see when you can do something about them
We are currently facing a massive information overload What are some basic principles you could suggest to mentally organise such large amounts of dataConstantly ask yourself Where am I going Whatrsquos important and rewarding to me Is this information
the whole and then engage your resources with intuitive trust
As a CFO how can you transfer efficient workflow management skills to your employees Itrsquos very difficult to legislate processes for individuals ndash you can really only hold them accountable for their results But if you are managing your own commitments and intersections with them with integrity and rigour it will automatically force your team to ldquostep up to the platerdquo in their own behaviours in order to meet your standards If you request their complete list of their company projects and they canrsquot produce it thatrsquos a sign theyrsquore not in control If they make a commitment to you that they havenrsquot kept thatrsquos data about their performance GTD is simply about good operational business practices
With so many planning and organising activities in your methodology is there a risk of losing spontaneity as a strategistThe reason for these best practices is to optimise freedom creativity and spontaneity Without them
ldquoBut if you are manag-ing your own com-mitments and intersec-tions with them with integrity and rigour it will automatical-ly force them to ldquostep up to the platerdquo in their own behaviours in order to meet your standardsrdquo
64 wwwthecfomecom
supporting that Park whatever you find potentially meaningful somewhere that is easy to access when needed
Being an entrepreneur is a non-stop job How do you ensure that you have an adequate work-life balance Pay attention to what has your attentionmdashwith regard to anything Your health relationships career finances etc Notice when something might be ldquooffrdquo and make good decisions about what you need to do to get it back ldquoonrdquo again
Does your work teach people to be efficient or effective In essence they are the same thing Effective choices are generated by efficiency on a higher level If you want to implement strategy most effectively it demands utilising your resources optimally which is efficiency
Does motivation actually improve quality of work or purely quantityDepends on the focus of the motivation You can be motivated to work harder and you can be motivated to work smarter
What is your favourite productivity mantra that
you implement in your day-to-day lifeUsing my own in-basket and note-taking devices to capture potentially meaningful and valuable ideas and soon afterwards clearing all of them out by deciding what to do about them if anything
Your books seminars and other work inspires many individuals and businesses Who is your personal inspiration or role model I have many about many different aspects of my life The only person though that I ultimately trust as my best guide is my higher self which I try to access as frequently and clearly as I can
Finally what advice would you give to current business owners and aspiring entrepreneurs looking to gain complete control of their life and businessCapture what has your attention clarify what you need to do about it to get it off your mind organise the inventory of all your commitments at all levels review and reflect on all of that regularly relax and trust your inner wisdom to engage with the most appropriate thing in the moment
ldquoIf you want to implement strategy most effectively it demands utilising your resources optimallyrdquo
David Allen INTERVIEW
APPSTECH TALK
wwwthecfomecom 65
mAxImISE BUSINESS lsquoON-THE-GOrsquo WITH THESE HANDy APPS
ipAd SpECIAL
SAMSUNG UNvEILS GALAxY NOTE EDGE
Network
AP
Display
OS
Camera
Video
Audio
Additional Features
GoogleMobile Services
Connectivity
Sensor
Memory
Dimension
Battery
The availability of service may differ by country All functionality features specifications and other product information provided in this document including but not limited to the benefits design pricing components performance availability and capabilities of the product are subject to change without notice or obligation
Samsung Galaxy Note Edge Product Specifications
25G (GSM GPRS EDGE) 850 900 1800 1900 MHz3G (HSPA + 42Mbps) 850 900 1900 2100 MHz4G (LTE Cat 4 15050Mbps) or 4G(LTE Cat 6 30050Mbps)May differ by country and carrier
27 GHz Quad-Core Processor
56 inch (1419mm) Quad HD+ Super AMOLED (2560 x 1440 + 160)
Android 44 (KitKat)
Rear Facing 16 Mega pixel Auto Focus camera with Smart OISFront Facing 37 Mega pixel camera with f19Rear Facing Camera HDR (Rich tone) Selective Focus Rear-cam Selfie Beauty face Virtual Tour Shot ShotampMore Dual CameraFront Facing Camera Selfie Wide Selfie
Codec H264 MPEG-4 H263 VC-1 WMV7 WMV8 Sorenson Spark MP43 VP8 Recording amp Playback up to UHD
Codec MP3 AACAAC+eAAC+ WMA AMR-NBWB Vorbis FLAC()() Ultra High Quality Audio (~192KHz 24 bit) support
Multi WindowUltra Power Saving ModeVoice Recorder (Normal Mode Interview Mode Meeting Mode Voice Memo)Download BoosterS Health 35Dynamic Lock ScreenBriefingEdge screen UX Revolving Interaction Immersive apps(Camera Video S Note)Ticker board Express me Quick Tools Night Clock etc
Chrome Drive Photos Gmail Google Google+ Google Settings Hangouts Maps Play Books Play Games Play Newsstand Play Movie amp TV Play Music Play Store Voice Search YouTube
WiFi 80211 abgnac (HT80) MIMO PCIeGPS GLONASS BeidouNFC Bluetoothreg v 41 (BLE ANT+)IR LED (Remote Control) USB20 MHL 30
Gesture Accelerometer Geo-magnetic Gyroscope RGB IR-LEDProximity Barometer Hall Sensor Finger Scanner UV Heart Rate Monitoring SpO2 (Dependent on market)
32 64 GB Internal memory + microSD slot (up to 128GB)3GB RAM
1513 x 824 x 83mm 174g
Standard battery Li-ion 3000 mAh Fast Charging (Adaptive Fast Charging amp QC20)
wwwthecfomecom66
APPSTECH TALK
AIR DISPLAY
SQUARE REGISTER
Using this app you can connect your iPad to your computer and use it as an additional screen While working on an important presentation or sales proposal you can extend or mirror your computer screen on your iPad This app is compatible with both Mac and Windows computers Note that to use this feature you have to install Air Display on your iPad and a separate free app on your computer The computer and iPad also need to be on the same Wi-Fi network in order to work in-sync
For Mac users the app allows you to connect to up to four screens ndash all at the same time
Apart from the ability to convert your iPad into a wireless display whatrsquos also attractive about this app is that it allows you to control your computer wirelessly using your iPad
This fantastic application can serve as a mobile point of sale for your business It allows you to accept credit card payments ndash including Visa MasterCard Discover and American Express A transaction fee of 275 is charged for every time you swipe a card The sale amount is transferred to your account within two working days
Once you download the app you can sign up and register for a unique card reader solution called the lsquoSquare Readerrsquo (this is free) Square Reader encrypts all card details and ensures that the transaction is secure Once you receive your Square Reader you can connect it to your device and are all set
The application also offers added features such as transaction history connecting to a receipt printer creating employee logins and more
AED 3699
PRICE
Free
PRICE
wwwthecfomecom 67
APPSTECH TALK
DOCUSIGNHave you ever been in a situation where your employees need you to urgently sign a contract but arenrsquot able to physically reach you in time DocuSign solves this problem with its easy-to-use eSignature feature In three easy steps you can sign important documents and securely send them to your intended recipient
First you have to import the document to your device ndash this could be from Dropbox Google Drive or another select applications You then place your signature or any other important legal information you need to include such as initials Once you have finished working on the document send it back via e-mail
Whatrsquos particularly great about DocuSign is the great emphasis it puts on security ndash so that users donrsquot have to worry about getting into any legal trouble
Use DocuSign and never miss a deadline again
Free for basic version
PRICE
MPAYAn initiative by the Dubai eGovernment Department mPay is a simple application that allows you to make important payments Once yoursquove signed up and entered your payment details you are good to go You can pay your Dubai Electricity and Water Authority (DEWA) bills Etisalat utility bills Dubai Police fines Recharge SALIK and much more
A handy feature is its lsquoauto-rechargersquo option which you can use to set automatic payments
Free
PRICE
Opinion CIMAPERSONALITIES
wwwthecfomecom68
NEW HORIZONSBy geetu Ahuja Head of gCC at CIMA
The days of the traditional accountant working within a small community in a small town in a small market have long gone CFOs are now being referred to as Chief Frontier Officers as they travel from market to market overseeing their offices overseas This new expanded role has distinct advantages for both the company and the CFO who gain new skills and new insights from foreign branches a single hand at the helm of many markets provides business perspectives on a global scale and benchmarks across the board
On a personal level working abroad also has huge importance Robert Walters the specialist professional recruitment consultancy recently conducted a survey
of almost 2200 employees across a variety of professions exploring a number of topics which ranged from working practices and attitudes to careers The results highlighted some notable trends particularly for finance professionals
In career progression for example the survey showed that 50 of all accountants see working abroad as either lsquoessentialrsquo or lsquoextremely usefulrsquo to furthering their prospects more than banking professionals lawyers and IT workers ndash a strong indication of how accounting professionals are thinking about their future either within their existing company or with opportunities elsewhere
Accountants with globally recognised qualifications obviously have a greater chance of gaining some experience abroad and the lsquoGen Yrsquo professionals in particular seem ready to pack their bags In a CIMA study conducted in the UK last year over a third of those seeking employment in the
next two years will prioritise opportunities abroad over those in their home countries many of them enticed by the career incentives offered by the Middle East
How quickly can they land what seems to be their dream job What are the realities It may be that the move is simply from one branch to another and the only significant difference is a view from the window but for those expanding rather than changing their roles we have seen a very real need for a depth and breadth of knowledge never needed before
As geographical boundaries are pushed ever-wider a CFOrsquos responsibilities are pushed with them For many finance executives the understanding of their own patch of land is no longer enough they now have to be aware of foreign markets up to speed with foreign trends and au fait with foreign laws There is a need for a new commercial awareness in geography as well as philosophy
As geographical boundaries are pushed ever-wider a CFOrsquos responsibilities are pushed with them
John vargheseQampA
wwwthecfomecom 69
BUSINESSSET UP YOUR
IN THE UNITED ARAB EMIRATES
TO
WAREHOUSESOFFICES INDUSTRIAL LANDFLEXI
Quick and easy company set-up
Less than an hour drive from Dubai
Complete cost-effective packages including licences and facilities
100 foreign ownership
Zero income and corporate taxes
Eligibility for UAE Residence Visa
BUSINESS SET-UP SOLUTIONS STARTING FROM AED 15000 (USD 4000)
RAK FREE TRADE ZONE PROVIDES
RAK Free Trade Zone Authority - Government of Ras Al KhaimahUAE (Ras Al Khaimah) Tel +971 7 2041111 (Dubai) Tel +971 4 7041875 (Abu Dhabi) Tel +971 2 6994888
Germany (Cologne) - Turkey (Istanbul) - India (Mumbai)
Call +971 7 204 1111 Visit wwwrakftzcom Join rakftz
Donrsquot discoveritrsquos counterfeittoner afteritrsquos too lateOriginal HP Toner works first time every time1 unlike cheap toners which fail over half of the people who try it2 Non-HP toner can compromise your printerrsquos performance to give you streaked blotchy or faded prints Only original HP Toner cartridges deliver unmatched quality for the most professional-looking prints 100 of the time1
1 A QualityLogic 2010 study commissioned by HP comparing original HP LaserJet Monochrome print cartridges with nine brands of non-HP toner cartridges available in Europe Middle East and Africa for the HP LaserJet P1505 and P4015 printers HP 36A and 64A For details see wwwqualitylogiccomEMEAmonotonertestpdf 2 From a 2012 EMEA Lyra Research study commissioned by HP Results based on a total of 1050 HP Color LaserJet users who have used both original HP and non-HP toner cartridges of whom 552 experienced problems with non-HP cartridges
copy 2014 Hewlett-Packard Development Company LP
42
Private Equity ANALyTICS
wwwthecfomecom
The rise of PE-backed acquisitions is forcing CFOs to develop an entirely new set of skills
THE PRIvATE EQUITy CFO
The CFOrsquos utility in the world of private equity is without question on the rise The once-held belief of the CFO existing solely as the ldquoaccounting guyrdquo has been abandoned Over the last 20 years the role of CFO has become more demanding - requiring not just finance and accounting acumen but also a financial literacy in corporate planning risk management MampA assetliability management and regulation This evolution has been driven by a number of
key factors Yet the private equity industry which is now reshaping the corporate landscape through active ownership is by far the most significant factor driving change within the role of the CFO
PE-backed buyers today represent a larger percentage of overall buyers in the corporate acquisition marketplace than ever before Data provider Prequin estimates that as of June 2014 the capital raised by PE funds that
has not yet been deployed amounts to $114 trillion globally The result of this ldquodry powderrdquo is that a vast quantity of corporate acquisitions in the coming years will be undertaken by the private equity industry As such CFOs will be more accountable to demanding ldquosmart moneyrdquo shareholders than at any point in recent history Budgeting accounting and financial reporting will no longer exist as sole priorities but as a core competency among a
ldquoBy effec-tively using real-time data CFOs can create a dynamic process that proac-tively drives performance account-ability and value crea-tionrdquo
By Aaron Heidari
43
Private Equity ANALyTICS
wwwthecfomecom
robust set of complimentary and required skills Most of all the bar for CFOs is rising as PE investors will only accept above-average performance from their management teams
CFOs were once more reactive in function setting budgets based on other executivesrsquo plans and managing the flow of reporting to shareholders on a quarterly and yearly basis Today CFOs are required to become proactive managers of their respective businesses alongside their C-suite compatriots using a granular data-driven approach to aggregate analyse implement and report on every aspect of a companyrsquos operations
An important tool to drive this value creation process are KPIs Yet KPI structures including both aggregation and output are generally not up to the standards required of private equity investors prior to an investment being made
ldquoThe benefits of using KPIs and monthly reporting packages are significant By effectively using real-time data that is actionable and by partnering with functional area leaders within the organisation company CFOs can create a dynamic process that proactively drives performance accountability and value creationrdquo said Amanda Robinson Vice President of Accordion International in Dubai a consulting firm which is comprised of former private equity and investment banking professionals who
MENA region Cumulative Funds Under Management Since 2008
Source Zawya private Equity Monitor
19 636 20 36321 586
22 64323 506 24 250
-
5000
10000
15000
20000
25000
2008 2009 2010 2011 2012 2013
Cu
mu
lati
ve f
un
ds
($ m
)
$15mAverage MENA PE investment size in lsquo13
50Percentage of investment in IT and energy sectors
STAT FACTS
44 wwwthecfomecom
work with companies to deliver cost-effective project execution services
Active shareholders whose money it is being spent will typically require a data-driven justification before approving any budgets capital expenditures or new acquisitions Furthermore in many private equity backed companies the use of debt and the matching of shorter-term bank financing with longer-term investments will only be considered after a robust analysis is conducted to understand the companyrsquos ability to service that debt in the future This evaluation is not simply to identify revenues expenses and profits Itrsquos about drilling down into every transaction and rooting out data processing and reporting At least that is the expectation
The most valuable CFOs are those who have the ability not just to scrutinise and understand the financials but all also possess a wider grasp of the underlying data which truly comprise the business As an investor who has just acquired a stake in a new business I want a CFO who can manage the transition and stay ahead of my expectations Most of all a CFO should impress upon the companyrsquos shareholders a new way of doing business The first 100 days of an acquisition are said to be the most important During this period the CFOrsquos worth will be established when the new financial plan is due and the platform for the next five years of growth is presented
A CFO should man-age the tran-sition stay ahead of expectations and impress upon the companyrsquos shareholders a new way of doing business
Investment Volume By Sector Since 2006
Investment Volume By Sector in 2013
Source Zawya private Equity Monitor
1
3
30
17
3
28
3
4
6
4
6
5
17
9
9
6
9
5
8
6
6
2
3
10
Education
Education
Information Technology
Information Technology
Other
Other
Telecoms
Telecoms
Media
Media
Transport
Transport
Oil amp Gas
Oil amp Gas
Healthcare
Healthcare
Consumer goods
Consumer goods
Food amp Beverages
Food amp Beverages
Leisure
Leisure
Manufacturing
Manufacturing
ANALyTICS
Private Equity
2000857 NBAD ratibi mag ad 200x268 Finalindd 1 92514 1017 AM
46 wwwthecfomecom
THE FUTURE OFACCOUNTING EDUCATIONAddRESSINg THECOMpETENCY CRISIS
Have you ever stopped to think about how the accounting profession has changed since you graduated from college Recent graduates can answer this question by reflecting on the last two or three years whereas for other more seasoned professionals answering this question requires a bit more thought and memory searching Indeed we can all think of ways that the field of accounting is remarkably different today from the one we likely envisioned during our college daysmdashregardless of which decade we each donned our cap and gown This gradual transformation of the accounting profession leads to two important questions related to competencies bull Which competencies are important for success inaccounting todaybull Were these competencies consciously developed as partof your accounting degree programme
We suspect that more than a few of you would answer ldquonordquo to the second question Put another way our profession may be facingmdashmore so than at any time in the pastmdasha ldquocompetency crisisrdquo that is a gap between the competencies needed for professional success and those taught in our college classrooms today We propose a three-pronged strategy or ldquogame planrdquo for overcoming this competency crisis and in turn better preparing accounting graduates for the challenging world they will face First all of us accountants need to understand the changes that have already taken place in our profession and perhaps more importantly anticipate the changes that are on the horizon Second we need to educate ourselves and future generations of accountants so that as a collective group we can deliver the expanding set of competencies demanded in todayrsquos dynamic organisational
contexts Third as professional organisations and as individuals we need to think beyond ourselves by asking How can I (or we) help the accounting profession address the competency crisis
A Shift Toward Integrated ThinkingMany articles and white papers have been written that describe in detail the changes that have occurred in our profession over the last few decades but for our purposes wersquod like to distill these changes down to one crucial idea How does the accounting function add value to an organisation Accountants have evolved from support-oriented personnel who hand off information to others who actually make decisions into business partners who ldquohave a seat at the tablerdquo with managers
By peter C Brewer James E Sorensen CpA CgMA and david E Stout
47wwwthecfomecom
1048576bull What regulatory risks mayaccompany the proposal
1048576bull What social and environmentalfactors will we face if for example the proposal requires investing in overseas operations
1048576bull What types of employeeresistance may arise if we implement the proposal and how will we overcome the root causes of any such resistance
1048576bull Can and how should we valuefuture options associated with the proposal such as expanding or contracting the investment over time as new information becomes available
1048576bull Should we use debt or equity tofund the proposal
In short accountants have evolved to become integrated thinkers who enable EPM by partnering with managers across the organisation to add value Yet as EPM has gradually become the centrepiece of our professionrsquos value proposition accounting education hasnrsquot done enough to embrace it To overcome this gap wersquod like to further suggest that the concepts of competency integration and EPM need to come ldquofront and centrerdquo as we move forward in educating the next generation of successful accounting practitioners
Accounting Education No Longer on the SidelinesRecently a task force consisting of members of IMAreg (Institute of Management Accountants) and members of the Management Accounting Section (MAS) of the American Accounting Association (AAA) addressed the competency issue How should accounting education change fundamentally to help close the competencies gap The efforts of the task force led to
cash flows and how to apply discounted cash flow (DCF) decision models such as net present value (NPV) is of foundationalmdashsome might say critical mdash importance But integrated thinkers draw on an understanding of organisational strategy coupled with a broader set of competencies (beyond what might be considered technical or foundational knowledge) when making these types of decisions For example they consider how behavioural issues may influence the capital investment decision-making process Perhaps the financial estimates contained in the NPV analysis are too optimistic because the manager who prepared the numbers has a vested interest in seeing the project approved Decision makers also need to consider issues such as leasing vs buying a capital asset and the corresponding impacts on the financial statements and ratios that are tracked by investors and lenders What nonfinancial factors are associated with the proposed investment Add in the tax consequences of capital investment decisions coupled with the need to maintain internal control over any new business processes tied to these decisions and the need to think in an integrated fashion across a variety of accounting competencies becomes apparent
Furthermore becoming a true business partner with managers across the organisation requires more than simply integrating various accounting competencies It also means thinking like a business manager or a chief executive officer (CEO) Returning to the capital budgeting example an integrated thinker will ask questions such as
across the organisation Together they formulate and plan strategies then participate in collaborative decision-making processes that execute those strategies in a manner that adds stakeholder value Said another way accountants have evolved to become enterprise performance managers This shift in our orientation from a support function to an enterprise performance management (EPM) role has enormous implications for defining the determinants of success within our profession the most important of which involves becoming collaborators and ldquointegrated thinkersrdquo Take for example a common but important business decision process capital investment analysis Certainly technical knowledge regarding how to estimate relevant after-tax
48 wwwthecfomecom
expanding capital budgeting discussions to include financial statement impacts tax consequences and internal control issues integrates topical coverage across the External Reporting and Analysis Taxation Compliance and Planning and Assurance and Internal Control competencies shown in Figure 1
Third accounting curricula can incorporate a broader set of management competencies For example evaluating capital investment proposals from the perspectives of change management (Leadership) social and environmental issues (Ethics and Social Responsibility) regulatory concerns (Governance Risk and Compliance) and capital structure (Additional Core Business Competencies) brings a CEOrsquos perspective to the decision-making process
Fourth accounting curricula should include foundational competencies such as proficiency with spreadsheets and written and oral communication In the context of capital budgeting this may include asking students to use Microsoft Excel to perform a sensitivity analysis and then to present their findings to the entire class
Working to Fix the ProblemAt this point although you may agree with us that therersquos a competency crisis within the accounting profession you may be wondering What does this have to do with me What can my organisation do to help address this so-called competency crisis The answer a lot Practice partners and academic partners can help the accounting profession overcome the competency crisis That said letrsquos take a closer look at the role of practice partners first
improvement) and accounting competencies (external reporting and analysis planning analysis and control taxation compliance and planning information systems assurance and internal control and professional values ethics and attitudes) Of critical importance to the framework is the assumption that the set of competencies contained in Figure 1 would be developed and integrated over time through a blend of formal education (including continuing education) training and job experience
What levels of integrationmdashon the road to developing integrated thinkers in accountingmdashare possible First accounting educators can integrate within a single accounting competency So referring back to our capital budgeting discussion teaching computational models such as NPV analysis coupled with a review of various behavioural issues associated with capital investment decisions would be an example of integrating within the Planning Analysis and Control competency listed in Figure 1
Second professors can integrate across accounting competencies For example
a recently published article that contains a proposed framework for accounting education reproduced here as Figure 1 The framework is general in the sense that itrsquos meant to apply to all accounting students not subgroups based on career specialisation such as tax assurance services corporate finance and the like Itrsquos based on the idea that accounting educators can better prepare students to deliver our professionrsquos EPM value proposition through integrated competency-oriented curricula (For more see ldquoFocusing Accounting Curricula on Studentsrsquo Long-Run Careers Recommendations for an Integrated Competency-Based Framework for Accounting Educationrdquo in the May 2014 edition of Issues in Accounting Education)
A glance at Figure 1 reveals three levels of competencies foundational competencies (communication ability to leverage technology and analytical thinking and problem solving among others) broad management competencies (including leadership ethics and social responsibility and process management and
Proposed Competencies-based Framework for Accounting Education
FOUNDATIONALCOMPETENCIES
ACCOUNTING COMPETENCIES
BROAD MANAGEMENT COMPETENCIES
leadership
ExternalReportingamp Analysis
PlanningAnalysis
amp Control
TaxationComplianceamp Planning
InformationSystems
Assuranceamp InternalControl
ProfessionalValues Ethics
amp Attitudes
Communication
Quantitative
Interpersonal
Technological
Analytical Thinking ampProblem Solving
Ethics amp SocialResponsibility
ProcessManagement ampImprovement
GovernanceRisk amp
Compliance
AdditionalCore BusinessCompetencies
Although you may agree with us that therersquos a competency crisis within the account-ing profes-sion you may bewondering What does this haveto do with me
A practice partner should be or become a CMAreg (Certified Management Accountant) maintain professional certification by completing required Continuing Professional Education (CPE) hours and regularly read the IMA publications Strategic Finance and Management Accounting Quarterly
In addition there are a number of excellent resources that deal with topics covered in this article and that IMA makes available to its members
Strategic Finance PowerPacks(wwwimanetorg SFPowerPacks) These are resources focused on contemporary topics similar to those discussed earlier Current offerings include Risk Management Strategic Planning IT Skills amp Software and Internal Controls Each PowerPack includes a combination of resources such as research studies articles and links to webinars
Statements on Management Accounting (SMAs)(wwwimanetorgresources and_publicationsresearch_ studies_resourcesstatements on_management_accounting aspx) SMAs represent monographs classified into one of the following six categories Leadership Strategies and Ethics Technology Enablement Strategic Cost Management Business Performance Management Finance Governance Risk and Compliance and the Practice of Management Accounting Multiple items are available within each category For example the Practice of Management Accounting category includes (among other items)
49wwwthecfomecom
the Definition of Management Accounting and Implementing Shared Service Centres
Research Studies (wwwimanetorgresources_and_publicationsResearch_Studies_and_ResourcesAll_reportsaspx) The ldquoThoughtLeadershiprdquo section of IMArsquos website includes research covering a broad range of issues classified into seven categories For example under the ldquoGlobal Business Environmentrdquo category the following two research reports are available ldquoKey Differences Between IFRS and US GAAP Impact on Financial Reportingrdquo and ldquoCosting Methodologies and Cost Management Practices in the Peoplersquos Republic of Chinardquo
IMA Leadership Academy (www imanetorgprograms_events leadership_academyaspx) As described on the IMA website this programme is designed to assess a memberrsquos leadership status enhance that individualrsquos skills (principally through monthly webinars) and recognise leadership achievements These benefits are free to members
How You Can Make a Bigger Impact In addition to attending local regional and national IMA meetings consider inviting a small group of students to each chapter meeting This could be a wonderful (and relatively low-cost) option for mentoring aspiring accountants and finance professionals providing networking opportunities and introducing students to cutting-edge issues regarding the practice of management accounting Joining a university accounting
advisory group may be another way to influence the development of EPM in that institutionrsquos curriculum design
Other methods to enhance EPM in your organisation include (1) forming user groups within your company your local IMA chapter or your industry to review and share EPM experiences (2) encouraging advancement in the firm to be linked to EPM proficiency (3) focusing your companyrsquos recruiting efforts on candidates who display a background in andor understanding of EPM and (4) organising cross training within your company to enhance a mutual understanding of each otherrsquos respective roles
Finally visit the Competency CrisisTM website (http competencycrisisorg) set up by IMA to unite the accounting and finance constituencies professionals students employers academics and professorsmdashand explore competency issues through the lens of each stakeholder group The site is designed to ldquoencourage a discourse spur action and create a community dedicated to resolving the serious crisis of competency present in the professionrdquo Special sections of the website are devoted to educators students and employers professionals
Our Partners in Education Much like a practice partner an academic partner should be or become a CMA maintain professional accreditation by completing CPE hours and regularly read IMArsquos publications
Academic members of IMA can pursue and actively promote the CMA programme at their respective institutions
50 wwwthecfomecom
IMArsquos website contains helpful resources including an exam content overview content specification outlines for each of the two parts of the CMA exam and learning outcome statements The current exam covers some of the professional competencies represented in Figure 1 A summary of changes to exam content which will be effective in January 2015 is provided on the IMA website in News amp Media Relations which is located under ldquoAbout IMArdquo (See the press release dated March 24 2014) Other helpful resources include ldquoICMA Announces CMA Exam Content Changesrdquo in the April 2014 issue of Strategic Finance as well as ldquoManagement Accounting Career Readiness Shaping YOUR Curriculumrdquo
These forthcoming changes are based on the most recent IMA study of the knowledge and skills needed by management accountants from the view of CFOs controllers and other accountingfinance professionals from around the world
Also consider taking a group of your students to the IMA Student Leadership Conference held each November The Conference provides excellent networking opportunities for you your students and practicing professionals Students can learn firsthand from Conference presenters the challenges and opportunities facing finance and accounting professionals today
Moreover if your institution doesnrsquot currently have an IMA Student Chapter consider forming one One of the authors of this article David Stout reinstituted the student chapter at his school (Youngstown State University) after travelling with a group of his students to the IMA
Student Leadership Conference in Cleveland Ohio Through an IMA Student Chapter on campus students are able to work closely with a sponsoring local IMA chapter and bring to campus speakers who are experts in a wide range of topics including those discussed earlier in this article Each year student chapters compete for an Award of Excellence (AOE) and recognition as an Outstanding Student Chapter In addition IMA student members are able to engage in networking activities leadership training mentoring and community service programmesmdashall through their local chapter
You also might consider volunteering to serve as a Campus Advocate In this role yoursquoll represent IMA in all major matters of interest to your students (scholarship opportunities starting a student chapter mentoring and the like) and to your institution (for example leveraging IMA resources to advance the relevancy of the accounting curriculum use of educational case studies published in the IMA Educational Case Journal and access to IMArsquos ethics curriculum)
And if you havenrsquot yet done this ask IMA to endorse your accounting programme (information is available at www imanetorgeducator_resources indexaspx) This programme is designed to identify business curricula that meet the quality educational standards required to prepare students to earn the CMA designation Endorsement is based on an analysis of the curriculum and topics covered on the two-part CMA exam Currently 12 programmes have been endorsed
Finally if your school has an IMA Student Chapter consider participating in the annual IMA Student Case Competition where students are asked to propose a solution to a real world problem (Cases are solicited each year by Raef Lawson IMA VP of Research and Policy and IMA Professor in-Residence) Finalists make their presentations at IMArsquos Annual Conference amp Exposition before a set of judges consisting of accounting faculty members and practitioners Each year a new case is published in the August issue of Strategic Finance for students to use for that yearrsquos competition
Working TogetherIn this article we have summarised the changes that have affected the accounting profession and provided a competencies-based framework for guiding accounting educators in responding productively to those changes As a management accountant you know that implementing change in any organisation let alone within an entire profession never comes easily To be successful in overcoming our professionrsquos competency crisis IMArsquos practice and academic partners will need to assume leadership roles in defining enterprise performance management as the cornerstone of the accounting professionrsquos value proposition
This article was orginally published in the August 2014 issue of Strategic Finance It appears here with the permission of The Association of Accountants and financial professionals in Business
We need to educate ourselvesand future generations of account-ants so that as a collec-tive group we can deliver theexpanding set of com-petenciesdemanded in todayrsquos dynamicorgani-sational contexts
THE POWERFUL AND THRIFTY OFFICE ALL-ROUNDERS
The new ECOSYS M3560idn series will astound you With their print speeds of up to 60 pages per minute they are among the most productive A4 bw multifunctionals on the market We nevertheless managed to keep their ecological footprint and total cost of ownership impressively low by using our well-known ECOSYS technology and equipping the devices with our renowned long-life components The result Not only less waste and lower maintenance costs but also less hassle for you and all your colleagues You will also greatly appreciate the many customisation possibilities of the devices equipped with KYOCERArsquos open solution platform HyPAStrade as it allows you to tailor the device to your needs So yes we are proud of our new range of MFPs and can hardly wait to share their numerous benefits with you
For more information please contactKYOCERA Document Solutions Middle East | PB Box 500817 DubaiUAE | Tel +9714 4330 412 | Fax +9714 4231 944KYOCERA Document Solutions Europe BV - wwwkyoceradocumentsolutionseuKYOCERA Document Solutions Inc - wwwkyoceradocumentsolutionscom
52
ACCAINTERVIEW
wwwthecfomecom
GLOBAL By ASSOCIATION
across the region from our key employers and learning provider partners to our active and growing student and member base I want to understand their challenges and priorities and how ACCA can work with them to help support the economic success of the region
What can a CFO gain from working with ACCAThe ACCA qualification is about complete finance professionals For CFOs it brings the technical knowledge vital to business success complemented with the strategic management skills and ethical competence crucial to an organisationrsquos success As an organization ACCA in the UAE brings CFOs access to that local and global network of peers and expertise along with our leading research and insights that help them to keep up to date on the issues that matter most
Are there any initiatives in place to leverage the recently announced partnership with AAA
How are the ACCArsquos many years of activity being applied to the Middle EastACCA has now had a presence in the UAE for well over a decade During that time we have established strong relationships across the Middle East epitomised by the recent signing of our Strategic Partnership with AAA As a national body in choosing to partner with ACCA they recognised the local and global perspective we bring We are continuing to work with students members and employers across the Middle East to build their networks knowledge and business success through events research and insights and access to a growing number of online resources
Which initial priorities are among your key aims upon joining the organisationrsquos efforts in the UAEIn the first few months I hope to build on the success of the team in the UAE My priority will be to meet as many of our key stakeholders
The Association for Chartered Certified Accountants (ACCA) provides its services across a number of international borders The recent announcement of Lindsay Degouve de Nuncques as the new head of the Associationrsquos UAE chapter further exemplifies the ACCArsquos reach based on her previous work in the UK Nuncques shares here what she brings to the Middle East and just how globalisation has driven her ascent
53
ACCAINTERVIEW
wwwthecfomecom
The strategic partnership with AAA is the first of its kind in the region Students who complete the UAECA qualification will be entitled to both the AAA and ACCA designations and ACCA members in the UAE will also be eligible to apply for AAA membership This is a very exciting development in the market and together AAA and ACCA will be working to deliver maximum value to all our stakeholders from this partnership As we launch the UAECA qualification this activity will start in earnest
Which key industries will you be spotlighting in the Middle East in the months aheadOur experience of working across all sectors and levels of organisations globally gives ACCA a unique insight into all types of industries We will continue to be working with employers across the spectrum in the months ahead to help them gain the insight and make the connections that drive businesses to succeed at whatever they do
ldquoThe ACCA qualification is about complete finance professionals For CFOs it brings the technical knowledge vital to business success complemented with the strategic management skillsrdquo
54
Islamic FinanceMARKET OUTLOOK
wwwthecfomecom
In its 10th instalment the Forum is hosted in Dubai as a direct result of the UAErsquos increasing importance in the world of global Islamic finance
THE WORLD ISLAmIC ECONOmIC FORUm LANDS IN DUBAI
In Dubairsquos continued quest for leading the world across a range of spectrums the Emirate accelerated its desire to become the worldrsquos leading hub for Islamic finance by hosting the 10th installment of the World Islamic Economic Forum (WIEF) Delegates from dozens of countries attended to take part in a three-day event held at Madinat Jumeirah which rests alongside Dubairsquos gleaming coastline Held under the patronage of His Highness Sheikh Mohammed Bin Rashid Al Maktoum the
Vice President and Prime Minister of the UAE and Ruler of Dubai key speakers included The Honorary Dr Zeti Akhtar Aziz Governor of the Central Bank of Malaysia HE Kairat Kelimbetov Governor of the National Bank of Kazakhstan The Honorary Datorsquo Sri Mohd Najib Tun Abdul Razal Prime Minister of Malaysia and HE Xavier Bettel Prime Minister of the Grand Duchy of Luxembourg
Launched in 2006 in Malaysia WIEF has grown in tandem with the increased
Delegates from dozens of countries attended WIEF to take part in the three-day event
sophistication and reach of Islamic finance After a successful event in London in 2013 amidst increased interest in Islamic finance across Europe WIEF relocated to Dubai where the local business structure is keen to host halal finance
Said Hamad Buamim President and CEO Dubai Chamber of Commerce and Industry co-organisers of the event ldquo[The forum] is the start of a new chapter of cooperation between Dubai and the world as part of
55
Islamic FinanceMARKET OUTLOOK
wwwthecfomecom
Dubai Capital of Islamic Economy visionhellipestablishing a unified regulatory authority to provide the framework for standards across halal industries will significantly accelerate growth Likewise we need to see increased cooperation and partnership between the public and private sectors This is already happening with great success here in Dubairdquo
The order of global cooperation needed to facilitate growth across the Islamic finance world was more than apparent at WIEF based on how many differing nations were represented at the event The exhibitorrsquos hall was populated with a number of key Malaysian stands representative of the Southeast Asianrsquos ranking as the global leader in Islamic finance Also present were companies from Saudi Arabia also a key locality in the worldrsquos halal industries An interesting yet prescient presence was of attendees from South Korea a nation which is eager to participate in Islamic finance and will be hosting the WIEF Pyeongchang Roundtable in December 2014
ldquoGangwon is a province located in Korea which is very interested in new business opportunities Wersquove realised the strength of the Islamic economy and have come here with many different companies The first type is based in real estate investment We also have companies which want to export their products to the Islamic economy based on their halal qualities And Gangwon will also be hosting the Winter
ldquoKorea is very interested in the strength of the Islamic economy and wants to export its products based on their halal qualitiesrdquo
56 wwwthecfomecom
$247trillionProjected value of halal products industry in lsquo18
125Muslim percentage of global tourism expenditure
STAT FACTSOlympics in 2018 and are presently seeking investments for this as wellrdquo said Seong-hun Kim a member of Gangwon Province Governmentrsquos Export Support Team
Dubai proved to be an excellent place for the event considering how well the UAE is able to so regularly corral international cooperation A key sign of this was witnessed recently when Luxembourg now considered the third most important base for Islamic finance globally opened a finance office in Dubai International Finance Centre The European nation also opened a euro200 sukuk earlier this year which was quickly oversubscribed
The prime minister of Luxembourg offered the WIEF audience a riveting speech which detailed just how international the Forum has become whilst encouraging more of the world to support the growing influence of Islamic finance
Said Bettel ldquoWe need to innovate more economic partnerships for growth We sometimes need to reengineer relationships but also have to make sure these relationships remain sustainable Growth in one country also brings growth to others as long as this is guided by free market initiatives Free trade and free flow of capital combined with innovation leads to prosperity We have all gathered here in Dubai to explore the future of Islamic finance and Luxembourg is also a pioneer of Islamic finance in Europe The Islamic financial sector has a major role to play in continued global growthrdquo
The Islamic Corporation for the Development of the Private Sector (ICD) is based in the Kingdom of Saudi Arabia where it manages an international fund worth $2 billion half of which is available for subscription With shareholders in more than 50 countries and a sovereign sukuk fund recently launched in West Africa the ICDrsquos CEO Khaled M Al Aboodi attended WIEF this year excited to participate in the global event
How does the ICD approach its attendance at the World Islamic Economic ForumI think the Forum is one of the best places for discussing the financial issues of the OEC member countries It has been around for ten years and has grown to become a very important platform for discussion Wersquore here to attend and listen but also to network Itrsquos a great networking platform and a place to share views whilst letting everyone know what we have to offer
How has Islamic finance changed over the yearsOf course itrsquos growing in a large scale Some of it actually needs more support particularly with respect to regulatory frameworks Wersquore trying to partner with many international organisations like the IMF to try to provide support to countries to adapt regulation for Islamic finance Sukuk issuance is one of the biggest issues that needs to be addressed because there is a huge amount of liquidity in this arena Due to issues related to regulation sukuk issuance can be costly But with the regulation we are confident it will be on a level playing field with other forms of finance Compliance is a major area where more work can be done The Forum started with a roundtable on sukuk which shows how helpful WIEF has been over the years
What type of work does ICD do internationallyICD helped the government of Senegal to issue the first sovereign sukuk This was successfully issued last summer Progressing in this manner is something wersquod like to see continue across West Africa in order to utilise its resources with aiding development in the region in mind
QampA WITH KHALED M AL ABOODI CEO OF ICD
Islamic FinanceMARKET OUTLOOK
OFFICIAL SPONSORS
ENDORSED BY OFFICIAL HOST OFFICIAL
COMMUNICATIONS PARTNER
MEYDAN HOTEL DUBAI UAE19 - 20 NOVEMBER 2014
WOMENOMICSthe next emerging market
TAKE PART in making change happen UNITE with business and through leaders from across the globe
PARTICIPATE to the expansion of a modern and inclusive economy
58
Gautam PradhanINTERVIEW
wwwthecfomecom
SUCCESS BEyOND BOUNDARIES
in other management roles such as strategic decision making mentoring and leading efficiency and productivity across a range of other departments and functions as well as a being a catalyst in ensuring that the boardrsquos vision for the organisation is achieved
A significant percentage of NMDCrsquos shares are owned publicly Does the CFO play a role in balancing the interests of the shareholdersAs a CFO balancing the shareholdersrsquo interests is definitely part of my responsibility In order to achieve this goal there needs to be a careful evaluation of each decision while keeping the short-term and long-term goals of the company in mind At NMDC we actively implement a system where we utilise a balance scorecard as a method of ensuring that all our primary objectives are met yet at the same time continuously enhance our relationships with our shareholders
NMDC has completed various projects across the Emirates Are there plans to move abroadAs NMDC moves towards becoming an international player our strategic expansion plans are focused in areas within the GCC region and India In line with this strategy we opened
How has a company with such a unique set of deliverables grown so consistently over the yearsOur organisation strongly believes that the core to our strength is the people process and equipment A strategic decision led by our Board of Directors and the senior management has been implemented that required us to consistently invest in these three aspects to help expand our business beyond the territorial boundaries of the UAE and at the same time enhance what we can offer which is relevant to these segments We attribute our success to the efforts which every employee contributes We also strongly believe in the ldquoWe can make it happenrdquo principle The management raises the index of performance while setting SMART objectives within the organisation and encouraging the employees to achieve them
How has your position as the CFO changed over NMDCrsquos 35 years of operationAs the market evolves and business dynamics change my role as the CFO has become complex and more challenging A few years back I was mainly focused on bookkeeping accounting and other financial responsibilities such as arranging bank facilities But moving forward I became more involved
The UAE is progressively becoming a hub for world-class infrastructure The country has duly impressed the rest of the globe with noteworthy land developments showcased across the emirates Among the remarkable landscapes found in Abu Dhabi are the Corniche Beach Yas Island and Sir Baniyas Island Behind these successful projects is NMDC the dredging division of Abu Dhabi National Oil Company (ADNOC)
In an interview with CFO Magazine Gautam Pradhan Chief Financial Officer NMDC shares an exclusive look into the companyrsquos international blueprint for growth and his dynamic role as a strategic leader of one of the best in dredging and marine construction in the Middle East
59
Gautam PradhanINTERVIEW
wwwthecfomecom
branches in Qatar Bahrain Oman and India This has paid rich dividends recently as projects of strategic importance are bagged in Qatar and Bahrain Furthermore NMDC (UAE) has recently played a key role as a leader of an international consortium with Royal Boskalis Westminister (Netherlands) and Jan De Nul Group (Belgium) for the awarding of the Suez Canal Dredging project in Egypt Moving forward we have devised a strategic approach that will enable us to play a key role in the development of Indiarsquos marine infrastructure
What are the global strategies that are part of the CFOrsquos responsibilitiesAs CFO understanding the macro economic scenario risk analysis and mitigating those risks are all a part of my responsibilities I also have to have a proper comprehension
ldquoA few years back I was mainly focused on financial responsibilities moving forward I became more involved in strategic decision making mentoring and leading productivityrdquo
Gautam PradhanINTERVIEW
60 wwwthecfomecom
of the challenges faced by the company in terms of dealing with foreign contracts direct and indirect taxes and hedging and managing the integration process These are essential to enhance shareholders wealth and mitigate undue risk
How significant is accountancy for NMDC in its operations Why exactlyAccountancy is the lifeline of any company it does not only record the finances it also reflects the health of the organisation The MIS reports analysis trends and statistical information go a long way toward effectively providing
the diagnostic approach essential for the company
How have NMDCrsquos environmental activities helped the companyrsquos bottom lineNMDCrsquos work is well-synchronised with our environmental activities and specifically with nature Our activities are closely linked to sand and water and we view such activities with strategic importance Projects such as increasing water supply to mangroves and beach nourishment help us support the environmental activities while adding to our bottom line
ldquoAccountancy is the lifeline of any company it does not only record the finances it also reflects the health of the organisationrdquo
A burgeoning slice of Abu Dhabi coastline
The largest business awards
in the GCC30th November Dubai
nominate now at wwwstarsofbusinessawardscom
Stars of Business has become an iconic awards brand like no other in the region It recognizes the very best SMEs across 26 business categories Itrsquos universally respected as scientifically assessed and unimpeachably judged
327000 SMEs across the UAE$234 billion estimated total revenue of the SME sector4974 Awards entries in 20131856 Individual company applicants
Presenting Partner Strategic SME Partner Gold Sponsor Gold Sponsor VIP Hospitality Partner Supporting Partner
Trade Facilitator PartnerTrade Credit PartnerLogistics Partner
Institutional Partner Institutional Partner Event Partner
OrganiserPublisherMedia Partner Media PartnerPort Authority Partner
62
David Allen INTERVIEW
wwwthecfomecom
What went into completing your bestseller ndash Getting Things Done (GTD)After twenty years of researching developing and implementing a methodology for achieving stress-free productivity based upon
thousands of hours spent desk-side with
some of the best brightest and busiest people in the world I decided to write the manual for it Thatrsquos what Getting Things Done is
What are the five phases of mastering workflowIn order to get
any situation under control so
you can focus you will utilise these five
steps Whether yoursquore managing your kitchen
or your company you will need to collect and capture what has your attention clarify what if anything to do about it organise it according to what it means to you review and reflect upon it in relation to
Todayrsquos evolving CFO is often caught between the world of business set-up generating revenue managing employees and building strong company infrastructure When can things actually get done What can one do to boost productivity and master workflow World-renowned business coach David Allen has the answers
PRODUCTIvITy PRINCIPLES WITH
DAvID ALLEN
63
David Allen INTERVIEW
wwwthecfomecom
those are greatly subvertedHow does one maintain a fair balance between the time spent planning and actually getting things doneYou simply need to spend just the amount of time you need to to trust that what you are getting done is the right thing to be getting done in the moment It takes as long as it takes to get to that point Why would you do anything less
How can one apply your core productivity and workflow principles to todayrsquos technologically driven environmentThe principles and their techniques are system-independent Whether you have meaningful input from the Internet your smartphone or a conversation in the hall you must engage with it equally Technology has simply increased the flow of input and ease of distraction in your world
There is a lot of talk about how connected wersquove become and how connectivity is driving tremendous business growth Does connectivity actually come with its fair share of downsides
Connectivity is obviously a two-edged sword We can have intimate productive and creative interaction instantly with someone on the other side of the world and we can just as easily be distracted and seduced into those engagements when they may not be the best use of our attention and resources Donrsquot shoot the medium Itrsquos all simply bringing attention to your clarity of direction and priorities or lack thereof
Could you share a few quick tips with our readers to instantly boost productivityWrite everything down that has your attention Decide the very next actions required to get closure on all of them Any next actions that require less than two minutes do instantly Park reminders of everything else somewhere that yoursquoll see when you can do something about them
We are currently facing a massive information overload What are some basic principles you could suggest to mentally organise such large amounts of dataConstantly ask yourself Where am I going Whatrsquos important and rewarding to me Is this information
the whole and then engage your resources with intuitive trust
As a CFO how can you transfer efficient workflow management skills to your employees Itrsquos very difficult to legislate processes for individuals ndash you can really only hold them accountable for their results But if you are managing your own commitments and intersections with them with integrity and rigour it will automatically force your team to ldquostep up to the platerdquo in their own behaviours in order to meet your standards If you request their complete list of their company projects and they canrsquot produce it thatrsquos a sign theyrsquore not in control If they make a commitment to you that they havenrsquot kept thatrsquos data about their performance GTD is simply about good operational business practices
With so many planning and organising activities in your methodology is there a risk of losing spontaneity as a strategistThe reason for these best practices is to optimise freedom creativity and spontaneity Without them
ldquoBut if you are manag-ing your own com-mitments and intersec-tions with them with integrity and rigour it will automatical-ly force them to ldquostep up to the platerdquo in their own behaviours in order to meet your standardsrdquo
64 wwwthecfomecom
supporting that Park whatever you find potentially meaningful somewhere that is easy to access when needed
Being an entrepreneur is a non-stop job How do you ensure that you have an adequate work-life balance Pay attention to what has your attentionmdashwith regard to anything Your health relationships career finances etc Notice when something might be ldquooffrdquo and make good decisions about what you need to do to get it back ldquoonrdquo again
Does your work teach people to be efficient or effective In essence they are the same thing Effective choices are generated by efficiency on a higher level If you want to implement strategy most effectively it demands utilising your resources optimally which is efficiency
Does motivation actually improve quality of work or purely quantityDepends on the focus of the motivation You can be motivated to work harder and you can be motivated to work smarter
What is your favourite productivity mantra that
you implement in your day-to-day lifeUsing my own in-basket and note-taking devices to capture potentially meaningful and valuable ideas and soon afterwards clearing all of them out by deciding what to do about them if anything
Your books seminars and other work inspires many individuals and businesses Who is your personal inspiration or role model I have many about many different aspects of my life The only person though that I ultimately trust as my best guide is my higher self which I try to access as frequently and clearly as I can
Finally what advice would you give to current business owners and aspiring entrepreneurs looking to gain complete control of their life and businessCapture what has your attention clarify what you need to do about it to get it off your mind organise the inventory of all your commitments at all levels review and reflect on all of that regularly relax and trust your inner wisdom to engage with the most appropriate thing in the moment
ldquoIf you want to implement strategy most effectively it demands utilising your resources optimallyrdquo
David Allen INTERVIEW
APPSTECH TALK
wwwthecfomecom 65
mAxImISE BUSINESS lsquoON-THE-GOrsquo WITH THESE HANDy APPS
ipAd SpECIAL
SAMSUNG UNvEILS GALAxY NOTE EDGE
Network
AP
Display
OS
Camera
Video
Audio
Additional Features
GoogleMobile Services
Connectivity
Sensor
Memory
Dimension
Battery
The availability of service may differ by country All functionality features specifications and other product information provided in this document including but not limited to the benefits design pricing components performance availability and capabilities of the product are subject to change without notice or obligation
Samsung Galaxy Note Edge Product Specifications
25G (GSM GPRS EDGE) 850 900 1800 1900 MHz3G (HSPA + 42Mbps) 850 900 1900 2100 MHz4G (LTE Cat 4 15050Mbps) or 4G(LTE Cat 6 30050Mbps)May differ by country and carrier
27 GHz Quad-Core Processor
56 inch (1419mm) Quad HD+ Super AMOLED (2560 x 1440 + 160)
Android 44 (KitKat)
Rear Facing 16 Mega pixel Auto Focus camera with Smart OISFront Facing 37 Mega pixel camera with f19Rear Facing Camera HDR (Rich tone) Selective Focus Rear-cam Selfie Beauty face Virtual Tour Shot ShotampMore Dual CameraFront Facing Camera Selfie Wide Selfie
Codec H264 MPEG-4 H263 VC-1 WMV7 WMV8 Sorenson Spark MP43 VP8 Recording amp Playback up to UHD
Codec MP3 AACAAC+eAAC+ WMA AMR-NBWB Vorbis FLAC()() Ultra High Quality Audio (~192KHz 24 bit) support
Multi WindowUltra Power Saving ModeVoice Recorder (Normal Mode Interview Mode Meeting Mode Voice Memo)Download BoosterS Health 35Dynamic Lock ScreenBriefingEdge screen UX Revolving Interaction Immersive apps(Camera Video S Note)Ticker board Express me Quick Tools Night Clock etc
Chrome Drive Photos Gmail Google Google+ Google Settings Hangouts Maps Play Books Play Games Play Newsstand Play Movie amp TV Play Music Play Store Voice Search YouTube
WiFi 80211 abgnac (HT80) MIMO PCIeGPS GLONASS BeidouNFC Bluetoothreg v 41 (BLE ANT+)IR LED (Remote Control) USB20 MHL 30
Gesture Accelerometer Geo-magnetic Gyroscope RGB IR-LEDProximity Barometer Hall Sensor Finger Scanner UV Heart Rate Monitoring SpO2 (Dependent on market)
32 64 GB Internal memory + microSD slot (up to 128GB)3GB RAM
1513 x 824 x 83mm 174g
Standard battery Li-ion 3000 mAh Fast Charging (Adaptive Fast Charging amp QC20)
wwwthecfomecom66
APPSTECH TALK
AIR DISPLAY
SQUARE REGISTER
Using this app you can connect your iPad to your computer and use it as an additional screen While working on an important presentation or sales proposal you can extend or mirror your computer screen on your iPad This app is compatible with both Mac and Windows computers Note that to use this feature you have to install Air Display on your iPad and a separate free app on your computer The computer and iPad also need to be on the same Wi-Fi network in order to work in-sync
For Mac users the app allows you to connect to up to four screens ndash all at the same time
Apart from the ability to convert your iPad into a wireless display whatrsquos also attractive about this app is that it allows you to control your computer wirelessly using your iPad
This fantastic application can serve as a mobile point of sale for your business It allows you to accept credit card payments ndash including Visa MasterCard Discover and American Express A transaction fee of 275 is charged for every time you swipe a card The sale amount is transferred to your account within two working days
Once you download the app you can sign up and register for a unique card reader solution called the lsquoSquare Readerrsquo (this is free) Square Reader encrypts all card details and ensures that the transaction is secure Once you receive your Square Reader you can connect it to your device and are all set
The application also offers added features such as transaction history connecting to a receipt printer creating employee logins and more
AED 3699
PRICE
Free
PRICE
wwwthecfomecom 67
APPSTECH TALK
DOCUSIGNHave you ever been in a situation where your employees need you to urgently sign a contract but arenrsquot able to physically reach you in time DocuSign solves this problem with its easy-to-use eSignature feature In three easy steps you can sign important documents and securely send them to your intended recipient
First you have to import the document to your device ndash this could be from Dropbox Google Drive or another select applications You then place your signature or any other important legal information you need to include such as initials Once you have finished working on the document send it back via e-mail
Whatrsquos particularly great about DocuSign is the great emphasis it puts on security ndash so that users donrsquot have to worry about getting into any legal trouble
Use DocuSign and never miss a deadline again
Free for basic version
PRICE
MPAYAn initiative by the Dubai eGovernment Department mPay is a simple application that allows you to make important payments Once yoursquove signed up and entered your payment details you are good to go You can pay your Dubai Electricity and Water Authority (DEWA) bills Etisalat utility bills Dubai Police fines Recharge SALIK and much more
A handy feature is its lsquoauto-rechargersquo option which you can use to set automatic payments
Free
PRICE
Opinion CIMAPERSONALITIES
wwwthecfomecom68
NEW HORIZONSBy geetu Ahuja Head of gCC at CIMA
The days of the traditional accountant working within a small community in a small town in a small market have long gone CFOs are now being referred to as Chief Frontier Officers as they travel from market to market overseeing their offices overseas This new expanded role has distinct advantages for both the company and the CFO who gain new skills and new insights from foreign branches a single hand at the helm of many markets provides business perspectives on a global scale and benchmarks across the board
On a personal level working abroad also has huge importance Robert Walters the specialist professional recruitment consultancy recently conducted a survey
of almost 2200 employees across a variety of professions exploring a number of topics which ranged from working practices and attitudes to careers The results highlighted some notable trends particularly for finance professionals
In career progression for example the survey showed that 50 of all accountants see working abroad as either lsquoessentialrsquo or lsquoextremely usefulrsquo to furthering their prospects more than banking professionals lawyers and IT workers ndash a strong indication of how accounting professionals are thinking about their future either within their existing company or with opportunities elsewhere
Accountants with globally recognised qualifications obviously have a greater chance of gaining some experience abroad and the lsquoGen Yrsquo professionals in particular seem ready to pack their bags In a CIMA study conducted in the UK last year over a third of those seeking employment in the
next two years will prioritise opportunities abroad over those in their home countries many of them enticed by the career incentives offered by the Middle East
How quickly can they land what seems to be their dream job What are the realities It may be that the move is simply from one branch to another and the only significant difference is a view from the window but for those expanding rather than changing their roles we have seen a very real need for a depth and breadth of knowledge never needed before
As geographical boundaries are pushed ever-wider a CFOrsquos responsibilities are pushed with them For many finance executives the understanding of their own patch of land is no longer enough they now have to be aware of foreign markets up to speed with foreign trends and au fait with foreign laws There is a need for a new commercial awareness in geography as well as philosophy
As geographical boundaries are pushed ever-wider a CFOrsquos responsibilities are pushed with them
John vargheseQampA
wwwthecfomecom 69
BUSINESSSET UP YOUR
IN THE UNITED ARAB EMIRATES
TO
WAREHOUSESOFFICES INDUSTRIAL LANDFLEXI
Quick and easy company set-up
Less than an hour drive from Dubai
Complete cost-effective packages including licences and facilities
100 foreign ownership
Zero income and corporate taxes
Eligibility for UAE Residence Visa
BUSINESS SET-UP SOLUTIONS STARTING FROM AED 15000 (USD 4000)
RAK FREE TRADE ZONE PROVIDES
RAK Free Trade Zone Authority - Government of Ras Al KhaimahUAE (Ras Al Khaimah) Tel +971 7 2041111 (Dubai) Tel +971 4 7041875 (Abu Dhabi) Tel +971 2 6994888
Germany (Cologne) - Turkey (Istanbul) - India (Mumbai)
Call +971 7 204 1111 Visit wwwrakftzcom Join rakftz
42
Private Equity ANALyTICS
wwwthecfomecom
The rise of PE-backed acquisitions is forcing CFOs to develop an entirely new set of skills
THE PRIvATE EQUITy CFO
The CFOrsquos utility in the world of private equity is without question on the rise The once-held belief of the CFO existing solely as the ldquoaccounting guyrdquo has been abandoned Over the last 20 years the role of CFO has become more demanding - requiring not just finance and accounting acumen but also a financial literacy in corporate planning risk management MampA assetliability management and regulation This evolution has been driven by a number of
key factors Yet the private equity industry which is now reshaping the corporate landscape through active ownership is by far the most significant factor driving change within the role of the CFO
PE-backed buyers today represent a larger percentage of overall buyers in the corporate acquisition marketplace than ever before Data provider Prequin estimates that as of June 2014 the capital raised by PE funds that
has not yet been deployed amounts to $114 trillion globally The result of this ldquodry powderrdquo is that a vast quantity of corporate acquisitions in the coming years will be undertaken by the private equity industry As such CFOs will be more accountable to demanding ldquosmart moneyrdquo shareholders than at any point in recent history Budgeting accounting and financial reporting will no longer exist as sole priorities but as a core competency among a
ldquoBy effec-tively using real-time data CFOs can create a dynamic process that proac-tively drives performance account-ability and value crea-tionrdquo
By Aaron Heidari
43
Private Equity ANALyTICS
wwwthecfomecom
robust set of complimentary and required skills Most of all the bar for CFOs is rising as PE investors will only accept above-average performance from their management teams
CFOs were once more reactive in function setting budgets based on other executivesrsquo plans and managing the flow of reporting to shareholders on a quarterly and yearly basis Today CFOs are required to become proactive managers of their respective businesses alongside their C-suite compatriots using a granular data-driven approach to aggregate analyse implement and report on every aspect of a companyrsquos operations
An important tool to drive this value creation process are KPIs Yet KPI structures including both aggregation and output are generally not up to the standards required of private equity investors prior to an investment being made
ldquoThe benefits of using KPIs and monthly reporting packages are significant By effectively using real-time data that is actionable and by partnering with functional area leaders within the organisation company CFOs can create a dynamic process that proactively drives performance accountability and value creationrdquo said Amanda Robinson Vice President of Accordion International in Dubai a consulting firm which is comprised of former private equity and investment banking professionals who
MENA region Cumulative Funds Under Management Since 2008
Source Zawya private Equity Monitor
19 636 20 36321 586
22 64323 506 24 250
-
5000
10000
15000
20000
25000
2008 2009 2010 2011 2012 2013
Cu
mu
lati
ve f
un
ds
($ m
)
$15mAverage MENA PE investment size in lsquo13
50Percentage of investment in IT and energy sectors
STAT FACTS
44 wwwthecfomecom
work with companies to deliver cost-effective project execution services
Active shareholders whose money it is being spent will typically require a data-driven justification before approving any budgets capital expenditures or new acquisitions Furthermore in many private equity backed companies the use of debt and the matching of shorter-term bank financing with longer-term investments will only be considered after a robust analysis is conducted to understand the companyrsquos ability to service that debt in the future This evaluation is not simply to identify revenues expenses and profits Itrsquos about drilling down into every transaction and rooting out data processing and reporting At least that is the expectation
The most valuable CFOs are those who have the ability not just to scrutinise and understand the financials but all also possess a wider grasp of the underlying data which truly comprise the business As an investor who has just acquired a stake in a new business I want a CFO who can manage the transition and stay ahead of my expectations Most of all a CFO should impress upon the companyrsquos shareholders a new way of doing business The first 100 days of an acquisition are said to be the most important During this period the CFOrsquos worth will be established when the new financial plan is due and the platform for the next five years of growth is presented
A CFO should man-age the tran-sition stay ahead of expectations and impress upon the companyrsquos shareholders a new way of doing business
Investment Volume By Sector Since 2006
Investment Volume By Sector in 2013
Source Zawya private Equity Monitor
1
3
30
17
3
28
3
4
6
4
6
5
17
9
9
6
9
5
8
6
6
2
3
10
Education
Education
Information Technology
Information Technology
Other
Other
Telecoms
Telecoms
Media
Media
Transport
Transport
Oil amp Gas
Oil amp Gas
Healthcare
Healthcare
Consumer goods
Consumer goods
Food amp Beverages
Food amp Beverages
Leisure
Leisure
Manufacturing
Manufacturing
ANALyTICS
Private Equity
2000857 NBAD ratibi mag ad 200x268 Finalindd 1 92514 1017 AM
46 wwwthecfomecom
THE FUTURE OFACCOUNTING EDUCATIONAddRESSINg THECOMpETENCY CRISIS
Have you ever stopped to think about how the accounting profession has changed since you graduated from college Recent graduates can answer this question by reflecting on the last two or three years whereas for other more seasoned professionals answering this question requires a bit more thought and memory searching Indeed we can all think of ways that the field of accounting is remarkably different today from the one we likely envisioned during our college daysmdashregardless of which decade we each donned our cap and gown This gradual transformation of the accounting profession leads to two important questions related to competencies bull Which competencies are important for success inaccounting todaybull Were these competencies consciously developed as partof your accounting degree programme
We suspect that more than a few of you would answer ldquonordquo to the second question Put another way our profession may be facingmdashmore so than at any time in the pastmdasha ldquocompetency crisisrdquo that is a gap between the competencies needed for professional success and those taught in our college classrooms today We propose a three-pronged strategy or ldquogame planrdquo for overcoming this competency crisis and in turn better preparing accounting graduates for the challenging world they will face First all of us accountants need to understand the changes that have already taken place in our profession and perhaps more importantly anticipate the changes that are on the horizon Second we need to educate ourselves and future generations of accountants so that as a collective group we can deliver the expanding set of competencies demanded in todayrsquos dynamic organisational
contexts Third as professional organisations and as individuals we need to think beyond ourselves by asking How can I (or we) help the accounting profession address the competency crisis
A Shift Toward Integrated ThinkingMany articles and white papers have been written that describe in detail the changes that have occurred in our profession over the last few decades but for our purposes wersquod like to distill these changes down to one crucial idea How does the accounting function add value to an organisation Accountants have evolved from support-oriented personnel who hand off information to others who actually make decisions into business partners who ldquohave a seat at the tablerdquo with managers
By peter C Brewer James E Sorensen CpA CgMA and david E Stout
47wwwthecfomecom
1048576bull What regulatory risks mayaccompany the proposal
1048576bull What social and environmentalfactors will we face if for example the proposal requires investing in overseas operations
1048576bull What types of employeeresistance may arise if we implement the proposal and how will we overcome the root causes of any such resistance
1048576bull Can and how should we valuefuture options associated with the proposal such as expanding or contracting the investment over time as new information becomes available
1048576bull Should we use debt or equity tofund the proposal
In short accountants have evolved to become integrated thinkers who enable EPM by partnering with managers across the organisation to add value Yet as EPM has gradually become the centrepiece of our professionrsquos value proposition accounting education hasnrsquot done enough to embrace it To overcome this gap wersquod like to further suggest that the concepts of competency integration and EPM need to come ldquofront and centrerdquo as we move forward in educating the next generation of successful accounting practitioners
Accounting Education No Longer on the SidelinesRecently a task force consisting of members of IMAreg (Institute of Management Accountants) and members of the Management Accounting Section (MAS) of the American Accounting Association (AAA) addressed the competency issue How should accounting education change fundamentally to help close the competencies gap The efforts of the task force led to
cash flows and how to apply discounted cash flow (DCF) decision models such as net present value (NPV) is of foundationalmdashsome might say critical mdash importance But integrated thinkers draw on an understanding of organisational strategy coupled with a broader set of competencies (beyond what might be considered technical or foundational knowledge) when making these types of decisions For example they consider how behavioural issues may influence the capital investment decision-making process Perhaps the financial estimates contained in the NPV analysis are too optimistic because the manager who prepared the numbers has a vested interest in seeing the project approved Decision makers also need to consider issues such as leasing vs buying a capital asset and the corresponding impacts on the financial statements and ratios that are tracked by investors and lenders What nonfinancial factors are associated with the proposed investment Add in the tax consequences of capital investment decisions coupled with the need to maintain internal control over any new business processes tied to these decisions and the need to think in an integrated fashion across a variety of accounting competencies becomes apparent
Furthermore becoming a true business partner with managers across the organisation requires more than simply integrating various accounting competencies It also means thinking like a business manager or a chief executive officer (CEO) Returning to the capital budgeting example an integrated thinker will ask questions such as
across the organisation Together they formulate and plan strategies then participate in collaborative decision-making processes that execute those strategies in a manner that adds stakeholder value Said another way accountants have evolved to become enterprise performance managers This shift in our orientation from a support function to an enterprise performance management (EPM) role has enormous implications for defining the determinants of success within our profession the most important of which involves becoming collaborators and ldquointegrated thinkersrdquo Take for example a common but important business decision process capital investment analysis Certainly technical knowledge regarding how to estimate relevant after-tax
48 wwwthecfomecom
expanding capital budgeting discussions to include financial statement impacts tax consequences and internal control issues integrates topical coverage across the External Reporting and Analysis Taxation Compliance and Planning and Assurance and Internal Control competencies shown in Figure 1
Third accounting curricula can incorporate a broader set of management competencies For example evaluating capital investment proposals from the perspectives of change management (Leadership) social and environmental issues (Ethics and Social Responsibility) regulatory concerns (Governance Risk and Compliance) and capital structure (Additional Core Business Competencies) brings a CEOrsquos perspective to the decision-making process
Fourth accounting curricula should include foundational competencies such as proficiency with spreadsheets and written and oral communication In the context of capital budgeting this may include asking students to use Microsoft Excel to perform a sensitivity analysis and then to present their findings to the entire class
Working to Fix the ProblemAt this point although you may agree with us that therersquos a competency crisis within the accounting profession you may be wondering What does this have to do with me What can my organisation do to help address this so-called competency crisis The answer a lot Practice partners and academic partners can help the accounting profession overcome the competency crisis That said letrsquos take a closer look at the role of practice partners first
improvement) and accounting competencies (external reporting and analysis planning analysis and control taxation compliance and planning information systems assurance and internal control and professional values ethics and attitudes) Of critical importance to the framework is the assumption that the set of competencies contained in Figure 1 would be developed and integrated over time through a blend of formal education (including continuing education) training and job experience
What levels of integrationmdashon the road to developing integrated thinkers in accountingmdashare possible First accounting educators can integrate within a single accounting competency So referring back to our capital budgeting discussion teaching computational models such as NPV analysis coupled with a review of various behavioural issues associated with capital investment decisions would be an example of integrating within the Planning Analysis and Control competency listed in Figure 1
Second professors can integrate across accounting competencies For example
a recently published article that contains a proposed framework for accounting education reproduced here as Figure 1 The framework is general in the sense that itrsquos meant to apply to all accounting students not subgroups based on career specialisation such as tax assurance services corporate finance and the like Itrsquos based on the idea that accounting educators can better prepare students to deliver our professionrsquos EPM value proposition through integrated competency-oriented curricula (For more see ldquoFocusing Accounting Curricula on Studentsrsquo Long-Run Careers Recommendations for an Integrated Competency-Based Framework for Accounting Educationrdquo in the May 2014 edition of Issues in Accounting Education)
A glance at Figure 1 reveals three levels of competencies foundational competencies (communication ability to leverage technology and analytical thinking and problem solving among others) broad management competencies (including leadership ethics and social responsibility and process management and
Proposed Competencies-based Framework for Accounting Education
FOUNDATIONALCOMPETENCIES
ACCOUNTING COMPETENCIES
BROAD MANAGEMENT COMPETENCIES
leadership
ExternalReportingamp Analysis
PlanningAnalysis
amp Control
TaxationComplianceamp Planning
InformationSystems
Assuranceamp InternalControl
ProfessionalValues Ethics
amp Attitudes
Communication
Quantitative
Interpersonal
Technological
Analytical Thinking ampProblem Solving
Ethics amp SocialResponsibility
ProcessManagement ampImprovement
GovernanceRisk amp
Compliance
AdditionalCore BusinessCompetencies
Although you may agree with us that therersquos a competency crisis within the account-ing profes-sion you may bewondering What does this haveto do with me
A practice partner should be or become a CMAreg (Certified Management Accountant) maintain professional certification by completing required Continuing Professional Education (CPE) hours and regularly read the IMA publications Strategic Finance and Management Accounting Quarterly
In addition there are a number of excellent resources that deal with topics covered in this article and that IMA makes available to its members
Strategic Finance PowerPacks(wwwimanetorg SFPowerPacks) These are resources focused on contemporary topics similar to those discussed earlier Current offerings include Risk Management Strategic Planning IT Skills amp Software and Internal Controls Each PowerPack includes a combination of resources such as research studies articles and links to webinars
Statements on Management Accounting (SMAs)(wwwimanetorgresources and_publicationsresearch_ studies_resourcesstatements on_management_accounting aspx) SMAs represent monographs classified into one of the following six categories Leadership Strategies and Ethics Technology Enablement Strategic Cost Management Business Performance Management Finance Governance Risk and Compliance and the Practice of Management Accounting Multiple items are available within each category For example the Practice of Management Accounting category includes (among other items)
49wwwthecfomecom
the Definition of Management Accounting and Implementing Shared Service Centres
Research Studies (wwwimanetorgresources_and_publicationsResearch_Studies_and_ResourcesAll_reportsaspx) The ldquoThoughtLeadershiprdquo section of IMArsquos website includes research covering a broad range of issues classified into seven categories For example under the ldquoGlobal Business Environmentrdquo category the following two research reports are available ldquoKey Differences Between IFRS and US GAAP Impact on Financial Reportingrdquo and ldquoCosting Methodologies and Cost Management Practices in the Peoplersquos Republic of Chinardquo
IMA Leadership Academy (www imanetorgprograms_events leadership_academyaspx) As described on the IMA website this programme is designed to assess a memberrsquos leadership status enhance that individualrsquos skills (principally through monthly webinars) and recognise leadership achievements These benefits are free to members
How You Can Make a Bigger Impact In addition to attending local regional and national IMA meetings consider inviting a small group of students to each chapter meeting This could be a wonderful (and relatively low-cost) option for mentoring aspiring accountants and finance professionals providing networking opportunities and introducing students to cutting-edge issues regarding the practice of management accounting Joining a university accounting
advisory group may be another way to influence the development of EPM in that institutionrsquos curriculum design
Other methods to enhance EPM in your organisation include (1) forming user groups within your company your local IMA chapter or your industry to review and share EPM experiences (2) encouraging advancement in the firm to be linked to EPM proficiency (3) focusing your companyrsquos recruiting efforts on candidates who display a background in andor understanding of EPM and (4) organising cross training within your company to enhance a mutual understanding of each otherrsquos respective roles
Finally visit the Competency CrisisTM website (http competencycrisisorg) set up by IMA to unite the accounting and finance constituencies professionals students employers academics and professorsmdashand explore competency issues through the lens of each stakeholder group The site is designed to ldquoencourage a discourse spur action and create a community dedicated to resolving the serious crisis of competency present in the professionrdquo Special sections of the website are devoted to educators students and employers professionals
Our Partners in Education Much like a practice partner an academic partner should be or become a CMA maintain professional accreditation by completing CPE hours and regularly read IMArsquos publications
Academic members of IMA can pursue and actively promote the CMA programme at their respective institutions
50 wwwthecfomecom
IMArsquos website contains helpful resources including an exam content overview content specification outlines for each of the two parts of the CMA exam and learning outcome statements The current exam covers some of the professional competencies represented in Figure 1 A summary of changes to exam content which will be effective in January 2015 is provided on the IMA website in News amp Media Relations which is located under ldquoAbout IMArdquo (See the press release dated March 24 2014) Other helpful resources include ldquoICMA Announces CMA Exam Content Changesrdquo in the April 2014 issue of Strategic Finance as well as ldquoManagement Accounting Career Readiness Shaping YOUR Curriculumrdquo
These forthcoming changes are based on the most recent IMA study of the knowledge and skills needed by management accountants from the view of CFOs controllers and other accountingfinance professionals from around the world
Also consider taking a group of your students to the IMA Student Leadership Conference held each November The Conference provides excellent networking opportunities for you your students and practicing professionals Students can learn firsthand from Conference presenters the challenges and opportunities facing finance and accounting professionals today
Moreover if your institution doesnrsquot currently have an IMA Student Chapter consider forming one One of the authors of this article David Stout reinstituted the student chapter at his school (Youngstown State University) after travelling with a group of his students to the IMA
Student Leadership Conference in Cleveland Ohio Through an IMA Student Chapter on campus students are able to work closely with a sponsoring local IMA chapter and bring to campus speakers who are experts in a wide range of topics including those discussed earlier in this article Each year student chapters compete for an Award of Excellence (AOE) and recognition as an Outstanding Student Chapter In addition IMA student members are able to engage in networking activities leadership training mentoring and community service programmesmdashall through their local chapter
You also might consider volunteering to serve as a Campus Advocate In this role yoursquoll represent IMA in all major matters of interest to your students (scholarship opportunities starting a student chapter mentoring and the like) and to your institution (for example leveraging IMA resources to advance the relevancy of the accounting curriculum use of educational case studies published in the IMA Educational Case Journal and access to IMArsquos ethics curriculum)
And if you havenrsquot yet done this ask IMA to endorse your accounting programme (information is available at www imanetorgeducator_resources indexaspx) This programme is designed to identify business curricula that meet the quality educational standards required to prepare students to earn the CMA designation Endorsement is based on an analysis of the curriculum and topics covered on the two-part CMA exam Currently 12 programmes have been endorsed
Finally if your school has an IMA Student Chapter consider participating in the annual IMA Student Case Competition where students are asked to propose a solution to a real world problem (Cases are solicited each year by Raef Lawson IMA VP of Research and Policy and IMA Professor in-Residence) Finalists make their presentations at IMArsquos Annual Conference amp Exposition before a set of judges consisting of accounting faculty members and practitioners Each year a new case is published in the August issue of Strategic Finance for students to use for that yearrsquos competition
Working TogetherIn this article we have summarised the changes that have affected the accounting profession and provided a competencies-based framework for guiding accounting educators in responding productively to those changes As a management accountant you know that implementing change in any organisation let alone within an entire profession never comes easily To be successful in overcoming our professionrsquos competency crisis IMArsquos practice and academic partners will need to assume leadership roles in defining enterprise performance management as the cornerstone of the accounting professionrsquos value proposition
This article was orginally published in the August 2014 issue of Strategic Finance It appears here with the permission of The Association of Accountants and financial professionals in Business
We need to educate ourselvesand future generations of account-ants so that as a collec-tive group we can deliver theexpanding set of com-petenciesdemanded in todayrsquos dynamicorgani-sational contexts
THE POWERFUL AND THRIFTY OFFICE ALL-ROUNDERS
The new ECOSYS M3560idn series will astound you With their print speeds of up to 60 pages per minute they are among the most productive A4 bw multifunctionals on the market We nevertheless managed to keep their ecological footprint and total cost of ownership impressively low by using our well-known ECOSYS technology and equipping the devices with our renowned long-life components The result Not only less waste and lower maintenance costs but also less hassle for you and all your colleagues You will also greatly appreciate the many customisation possibilities of the devices equipped with KYOCERArsquos open solution platform HyPAStrade as it allows you to tailor the device to your needs So yes we are proud of our new range of MFPs and can hardly wait to share their numerous benefits with you
For more information please contactKYOCERA Document Solutions Middle East | PB Box 500817 DubaiUAE | Tel +9714 4330 412 | Fax +9714 4231 944KYOCERA Document Solutions Europe BV - wwwkyoceradocumentsolutionseuKYOCERA Document Solutions Inc - wwwkyoceradocumentsolutionscom
52
ACCAINTERVIEW
wwwthecfomecom
GLOBAL By ASSOCIATION
across the region from our key employers and learning provider partners to our active and growing student and member base I want to understand their challenges and priorities and how ACCA can work with them to help support the economic success of the region
What can a CFO gain from working with ACCAThe ACCA qualification is about complete finance professionals For CFOs it brings the technical knowledge vital to business success complemented with the strategic management skills and ethical competence crucial to an organisationrsquos success As an organization ACCA in the UAE brings CFOs access to that local and global network of peers and expertise along with our leading research and insights that help them to keep up to date on the issues that matter most
Are there any initiatives in place to leverage the recently announced partnership with AAA
How are the ACCArsquos many years of activity being applied to the Middle EastACCA has now had a presence in the UAE for well over a decade During that time we have established strong relationships across the Middle East epitomised by the recent signing of our Strategic Partnership with AAA As a national body in choosing to partner with ACCA they recognised the local and global perspective we bring We are continuing to work with students members and employers across the Middle East to build their networks knowledge and business success through events research and insights and access to a growing number of online resources
Which initial priorities are among your key aims upon joining the organisationrsquos efforts in the UAEIn the first few months I hope to build on the success of the team in the UAE My priority will be to meet as many of our key stakeholders
The Association for Chartered Certified Accountants (ACCA) provides its services across a number of international borders The recent announcement of Lindsay Degouve de Nuncques as the new head of the Associationrsquos UAE chapter further exemplifies the ACCArsquos reach based on her previous work in the UK Nuncques shares here what she brings to the Middle East and just how globalisation has driven her ascent
53
ACCAINTERVIEW
wwwthecfomecom
The strategic partnership with AAA is the first of its kind in the region Students who complete the UAECA qualification will be entitled to both the AAA and ACCA designations and ACCA members in the UAE will also be eligible to apply for AAA membership This is a very exciting development in the market and together AAA and ACCA will be working to deliver maximum value to all our stakeholders from this partnership As we launch the UAECA qualification this activity will start in earnest
Which key industries will you be spotlighting in the Middle East in the months aheadOur experience of working across all sectors and levels of organisations globally gives ACCA a unique insight into all types of industries We will continue to be working with employers across the spectrum in the months ahead to help them gain the insight and make the connections that drive businesses to succeed at whatever they do
ldquoThe ACCA qualification is about complete finance professionals For CFOs it brings the technical knowledge vital to business success complemented with the strategic management skillsrdquo
54
Islamic FinanceMARKET OUTLOOK
wwwthecfomecom
In its 10th instalment the Forum is hosted in Dubai as a direct result of the UAErsquos increasing importance in the world of global Islamic finance
THE WORLD ISLAmIC ECONOmIC FORUm LANDS IN DUBAI
In Dubairsquos continued quest for leading the world across a range of spectrums the Emirate accelerated its desire to become the worldrsquos leading hub for Islamic finance by hosting the 10th installment of the World Islamic Economic Forum (WIEF) Delegates from dozens of countries attended to take part in a three-day event held at Madinat Jumeirah which rests alongside Dubairsquos gleaming coastline Held under the patronage of His Highness Sheikh Mohammed Bin Rashid Al Maktoum the
Vice President and Prime Minister of the UAE and Ruler of Dubai key speakers included The Honorary Dr Zeti Akhtar Aziz Governor of the Central Bank of Malaysia HE Kairat Kelimbetov Governor of the National Bank of Kazakhstan The Honorary Datorsquo Sri Mohd Najib Tun Abdul Razal Prime Minister of Malaysia and HE Xavier Bettel Prime Minister of the Grand Duchy of Luxembourg
Launched in 2006 in Malaysia WIEF has grown in tandem with the increased
Delegates from dozens of countries attended WIEF to take part in the three-day event
sophistication and reach of Islamic finance After a successful event in London in 2013 amidst increased interest in Islamic finance across Europe WIEF relocated to Dubai where the local business structure is keen to host halal finance
Said Hamad Buamim President and CEO Dubai Chamber of Commerce and Industry co-organisers of the event ldquo[The forum] is the start of a new chapter of cooperation between Dubai and the world as part of
55
Islamic FinanceMARKET OUTLOOK
wwwthecfomecom
Dubai Capital of Islamic Economy visionhellipestablishing a unified regulatory authority to provide the framework for standards across halal industries will significantly accelerate growth Likewise we need to see increased cooperation and partnership between the public and private sectors This is already happening with great success here in Dubairdquo
The order of global cooperation needed to facilitate growth across the Islamic finance world was more than apparent at WIEF based on how many differing nations were represented at the event The exhibitorrsquos hall was populated with a number of key Malaysian stands representative of the Southeast Asianrsquos ranking as the global leader in Islamic finance Also present were companies from Saudi Arabia also a key locality in the worldrsquos halal industries An interesting yet prescient presence was of attendees from South Korea a nation which is eager to participate in Islamic finance and will be hosting the WIEF Pyeongchang Roundtable in December 2014
ldquoGangwon is a province located in Korea which is very interested in new business opportunities Wersquove realised the strength of the Islamic economy and have come here with many different companies The first type is based in real estate investment We also have companies which want to export their products to the Islamic economy based on their halal qualities And Gangwon will also be hosting the Winter
ldquoKorea is very interested in the strength of the Islamic economy and wants to export its products based on their halal qualitiesrdquo
56 wwwthecfomecom
$247trillionProjected value of halal products industry in lsquo18
125Muslim percentage of global tourism expenditure
STAT FACTSOlympics in 2018 and are presently seeking investments for this as wellrdquo said Seong-hun Kim a member of Gangwon Province Governmentrsquos Export Support Team
Dubai proved to be an excellent place for the event considering how well the UAE is able to so regularly corral international cooperation A key sign of this was witnessed recently when Luxembourg now considered the third most important base for Islamic finance globally opened a finance office in Dubai International Finance Centre The European nation also opened a euro200 sukuk earlier this year which was quickly oversubscribed
The prime minister of Luxembourg offered the WIEF audience a riveting speech which detailed just how international the Forum has become whilst encouraging more of the world to support the growing influence of Islamic finance
Said Bettel ldquoWe need to innovate more economic partnerships for growth We sometimes need to reengineer relationships but also have to make sure these relationships remain sustainable Growth in one country also brings growth to others as long as this is guided by free market initiatives Free trade and free flow of capital combined with innovation leads to prosperity We have all gathered here in Dubai to explore the future of Islamic finance and Luxembourg is also a pioneer of Islamic finance in Europe The Islamic financial sector has a major role to play in continued global growthrdquo
The Islamic Corporation for the Development of the Private Sector (ICD) is based in the Kingdom of Saudi Arabia where it manages an international fund worth $2 billion half of which is available for subscription With shareholders in more than 50 countries and a sovereign sukuk fund recently launched in West Africa the ICDrsquos CEO Khaled M Al Aboodi attended WIEF this year excited to participate in the global event
How does the ICD approach its attendance at the World Islamic Economic ForumI think the Forum is one of the best places for discussing the financial issues of the OEC member countries It has been around for ten years and has grown to become a very important platform for discussion Wersquore here to attend and listen but also to network Itrsquos a great networking platform and a place to share views whilst letting everyone know what we have to offer
How has Islamic finance changed over the yearsOf course itrsquos growing in a large scale Some of it actually needs more support particularly with respect to regulatory frameworks Wersquore trying to partner with many international organisations like the IMF to try to provide support to countries to adapt regulation for Islamic finance Sukuk issuance is one of the biggest issues that needs to be addressed because there is a huge amount of liquidity in this arena Due to issues related to regulation sukuk issuance can be costly But with the regulation we are confident it will be on a level playing field with other forms of finance Compliance is a major area where more work can be done The Forum started with a roundtable on sukuk which shows how helpful WIEF has been over the years
What type of work does ICD do internationallyICD helped the government of Senegal to issue the first sovereign sukuk This was successfully issued last summer Progressing in this manner is something wersquod like to see continue across West Africa in order to utilise its resources with aiding development in the region in mind
QampA WITH KHALED M AL ABOODI CEO OF ICD
Islamic FinanceMARKET OUTLOOK
OFFICIAL SPONSORS
ENDORSED BY OFFICIAL HOST OFFICIAL
COMMUNICATIONS PARTNER
MEYDAN HOTEL DUBAI UAE19 - 20 NOVEMBER 2014
WOMENOMICSthe next emerging market
TAKE PART in making change happen UNITE with business and through leaders from across the globe
PARTICIPATE to the expansion of a modern and inclusive economy
58
Gautam PradhanINTERVIEW
wwwthecfomecom
SUCCESS BEyOND BOUNDARIES
in other management roles such as strategic decision making mentoring and leading efficiency and productivity across a range of other departments and functions as well as a being a catalyst in ensuring that the boardrsquos vision for the organisation is achieved
A significant percentage of NMDCrsquos shares are owned publicly Does the CFO play a role in balancing the interests of the shareholdersAs a CFO balancing the shareholdersrsquo interests is definitely part of my responsibility In order to achieve this goal there needs to be a careful evaluation of each decision while keeping the short-term and long-term goals of the company in mind At NMDC we actively implement a system where we utilise a balance scorecard as a method of ensuring that all our primary objectives are met yet at the same time continuously enhance our relationships with our shareholders
NMDC has completed various projects across the Emirates Are there plans to move abroadAs NMDC moves towards becoming an international player our strategic expansion plans are focused in areas within the GCC region and India In line with this strategy we opened
How has a company with such a unique set of deliverables grown so consistently over the yearsOur organisation strongly believes that the core to our strength is the people process and equipment A strategic decision led by our Board of Directors and the senior management has been implemented that required us to consistently invest in these three aspects to help expand our business beyond the territorial boundaries of the UAE and at the same time enhance what we can offer which is relevant to these segments We attribute our success to the efforts which every employee contributes We also strongly believe in the ldquoWe can make it happenrdquo principle The management raises the index of performance while setting SMART objectives within the organisation and encouraging the employees to achieve them
How has your position as the CFO changed over NMDCrsquos 35 years of operationAs the market evolves and business dynamics change my role as the CFO has become complex and more challenging A few years back I was mainly focused on bookkeeping accounting and other financial responsibilities such as arranging bank facilities But moving forward I became more involved
The UAE is progressively becoming a hub for world-class infrastructure The country has duly impressed the rest of the globe with noteworthy land developments showcased across the emirates Among the remarkable landscapes found in Abu Dhabi are the Corniche Beach Yas Island and Sir Baniyas Island Behind these successful projects is NMDC the dredging division of Abu Dhabi National Oil Company (ADNOC)
In an interview with CFO Magazine Gautam Pradhan Chief Financial Officer NMDC shares an exclusive look into the companyrsquos international blueprint for growth and his dynamic role as a strategic leader of one of the best in dredging and marine construction in the Middle East
59
Gautam PradhanINTERVIEW
wwwthecfomecom
branches in Qatar Bahrain Oman and India This has paid rich dividends recently as projects of strategic importance are bagged in Qatar and Bahrain Furthermore NMDC (UAE) has recently played a key role as a leader of an international consortium with Royal Boskalis Westminister (Netherlands) and Jan De Nul Group (Belgium) for the awarding of the Suez Canal Dredging project in Egypt Moving forward we have devised a strategic approach that will enable us to play a key role in the development of Indiarsquos marine infrastructure
What are the global strategies that are part of the CFOrsquos responsibilitiesAs CFO understanding the macro economic scenario risk analysis and mitigating those risks are all a part of my responsibilities I also have to have a proper comprehension
ldquoA few years back I was mainly focused on financial responsibilities moving forward I became more involved in strategic decision making mentoring and leading productivityrdquo
Gautam PradhanINTERVIEW
60 wwwthecfomecom
of the challenges faced by the company in terms of dealing with foreign contracts direct and indirect taxes and hedging and managing the integration process These are essential to enhance shareholders wealth and mitigate undue risk
How significant is accountancy for NMDC in its operations Why exactlyAccountancy is the lifeline of any company it does not only record the finances it also reflects the health of the organisation The MIS reports analysis trends and statistical information go a long way toward effectively providing
the diagnostic approach essential for the company
How have NMDCrsquos environmental activities helped the companyrsquos bottom lineNMDCrsquos work is well-synchronised with our environmental activities and specifically with nature Our activities are closely linked to sand and water and we view such activities with strategic importance Projects such as increasing water supply to mangroves and beach nourishment help us support the environmental activities while adding to our bottom line
ldquoAccountancy is the lifeline of any company it does not only record the finances it also reflects the health of the organisationrdquo
A burgeoning slice of Abu Dhabi coastline
The largest business awards
in the GCC30th November Dubai
nominate now at wwwstarsofbusinessawardscom
Stars of Business has become an iconic awards brand like no other in the region It recognizes the very best SMEs across 26 business categories Itrsquos universally respected as scientifically assessed and unimpeachably judged
327000 SMEs across the UAE$234 billion estimated total revenue of the SME sector4974 Awards entries in 20131856 Individual company applicants
Presenting Partner Strategic SME Partner Gold Sponsor Gold Sponsor VIP Hospitality Partner Supporting Partner
Trade Facilitator PartnerTrade Credit PartnerLogistics Partner
Institutional Partner Institutional Partner Event Partner
OrganiserPublisherMedia Partner Media PartnerPort Authority Partner
62
David Allen INTERVIEW
wwwthecfomecom
What went into completing your bestseller ndash Getting Things Done (GTD)After twenty years of researching developing and implementing a methodology for achieving stress-free productivity based upon
thousands of hours spent desk-side with
some of the best brightest and busiest people in the world I decided to write the manual for it Thatrsquos what Getting Things Done is
What are the five phases of mastering workflowIn order to get
any situation under control so
you can focus you will utilise these five
steps Whether yoursquore managing your kitchen
or your company you will need to collect and capture what has your attention clarify what if anything to do about it organise it according to what it means to you review and reflect upon it in relation to
Todayrsquos evolving CFO is often caught between the world of business set-up generating revenue managing employees and building strong company infrastructure When can things actually get done What can one do to boost productivity and master workflow World-renowned business coach David Allen has the answers
PRODUCTIvITy PRINCIPLES WITH
DAvID ALLEN
63
David Allen INTERVIEW
wwwthecfomecom
those are greatly subvertedHow does one maintain a fair balance between the time spent planning and actually getting things doneYou simply need to spend just the amount of time you need to to trust that what you are getting done is the right thing to be getting done in the moment It takes as long as it takes to get to that point Why would you do anything less
How can one apply your core productivity and workflow principles to todayrsquos technologically driven environmentThe principles and their techniques are system-independent Whether you have meaningful input from the Internet your smartphone or a conversation in the hall you must engage with it equally Technology has simply increased the flow of input and ease of distraction in your world
There is a lot of talk about how connected wersquove become and how connectivity is driving tremendous business growth Does connectivity actually come with its fair share of downsides
Connectivity is obviously a two-edged sword We can have intimate productive and creative interaction instantly with someone on the other side of the world and we can just as easily be distracted and seduced into those engagements when they may not be the best use of our attention and resources Donrsquot shoot the medium Itrsquos all simply bringing attention to your clarity of direction and priorities or lack thereof
Could you share a few quick tips with our readers to instantly boost productivityWrite everything down that has your attention Decide the very next actions required to get closure on all of them Any next actions that require less than two minutes do instantly Park reminders of everything else somewhere that yoursquoll see when you can do something about them
We are currently facing a massive information overload What are some basic principles you could suggest to mentally organise such large amounts of dataConstantly ask yourself Where am I going Whatrsquos important and rewarding to me Is this information
the whole and then engage your resources with intuitive trust
As a CFO how can you transfer efficient workflow management skills to your employees Itrsquos very difficult to legislate processes for individuals ndash you can really only hold them accountable for their results But if you are managing your own commitments and intersections with them with integrity and rigour it will automatically force your team to ldquostep up to the platerdquo in their own behaviours in order to meet your standards If you request their complete list of their company projects and they canrsquot produce it thatrsquos a sign theyrsquore not in control If they make a commitment to you that they havenrsquot kept thatrsquos data about their performance GTD is simply about good operational business practices
With so many planning and organising activities in your methodology is there a risk of losing spontaneity as a strategistThe reason for these best practices is to optimise freedom creativity and spontaneity Without them
ldquoBut if you are manag-ing your own com-mitments and intersec-tions with them with integrity and rigour it will automatical-ly force them to ldquostep up to the platerdquo in their own behaviours in order to meet your standardsrdquo
64 wwwthecfomecom
supporting that Park whatever you find potentially meaningful somewhere that is easy to access when needed
Being an entrepreneur is a non-stop job How do you ensure that you have an adequate work-life balance Pay attention to what has your attentionmdashwith regard to anything Your health relationships career finances etc Notice when something might be ldquooffrdquo and make good decisions about what you need to do to get it back ldquoonrdquo again
Does your work teach people to be efficient or effective In essence they are the same thing Effective choices are generated by efficiency on a higher level If you want to implement strategy most effectively it demands utilising your resources optimally which is efficiency
Does motivation actually improve quality of work or purely quantityDepends on the focus of the motivation You can be motivated to work harder and you can be motivated to work smarter
What is your favourite productivity mantra that
you implement in your day-to-day lifeUsing my own in-basket and note-taking devices to capture potentially meaningful and valuable ideas and soon afterwards clearing all of them out by deciding what to do about them if anything
Your books seminars and other work inspires many individuals and businesses Who is your personal inspiration or role model I have many about many different aspects of my life The only person though that I ultimately trust as my best guide is my higher self which I try to access as frequently and clearly as I can
Finally what advice would you give to current business owners and aspiring entrepreneurs looking to gain complete control of their life and businessCapture what has your attention clarify what you need to do about it to get it off your mind organise the inventory of all your commitments at all levels review and reflect on all of that regularly relax and trust your inner wisdom to engage with the most appropriate thing in the moment
ldquoIf you want to implement strategy most effectively it demands utilising your resources optimallyrdquo
David Allen INTERVIEW
APPSTECH TALK
wwwthecfomecom 65
mAxImISE BUSINESS lsquoON-THE-GOrsquo WITH THESE HANDy APPS
ipAd SpECIAL
SAMSUNG UNvEILS GALAxY NOTE EDGE
Network
AP
Display
OS
Camera
Video
Audio
Additional Features
GoogleMobile Services
Connectivity
Sensor
Memory
Dimension
Battery
The availability of service may differ by country All functionality features specifications and other product information provided in this document including but not limited to the benefits design pricing components performance availability and capabilities of the product are subject to change without notice or obligation
Samsung Galaxy Note Edge Product Specifications
25G (GSM GPRS EDGE) 850 900 1800 1900 MHz3G (HSPA + 42Mbps) 850 900 1900 2100 MHz4G (LTE Cat 4 15050Mbps) or 4G(LTE Cat 6 30050Mbps)May differ by country and carrier
27 GHz Quad-Core Processor
56 inch (1419mm) Quad HD+ Super AMOLED (2560 x 1440 + 160)
Android 44 (KitKat)
Rear Facing 16 Mega pixel Auto Focus camera with Smart OISFront Facing 37 Mega pixel camera with f19Rear Facing Camera HDR (Rich tone) Selective Focus Rear-cam Selfie Beauty face Virtual Tour Shot ShotampMore Dual CameraFront Facing Camera Selfie Wide Selfie
Codec H264 MPEG-4 H263 VC-1 WMV7 WMV8 Sorenson Spark MP43 VP8 Recording amp Playback up to UHD
Codec MP3 AACAAC+eAAC+ WMA AMR-NBWB Vorbis FLAC()() Ultra High Quality Audio (~192KHz 24 bit) support
Multi WindowUltra Power Saving ModeVoice Recorder (Normal Mode Interview Mode Meeting Mode Voice Memo)Download BoosterS Health 35Dynamic Lock ScreenBriefingEdge screen UX Revolving Interaction Immersive apps(Camera Video S Note)Ticker board Express me Quick Tools Night Clock etc
Chrome Drive Photos Gmail Google Google+ Google Settings Hangouts Maps Play Books Play Games Play Newsstand Play Movie amp TV Play Music Play Store Voice Search YouTube
WiFi 80211 abgnac (HT80) MIMO PCIeGPS GLONASS BeidouNFC Bluetoothreg v 41 (BLE ANT+)IR LED (Remote Control) USB20 MHL 30
Gesture Accelerometer Geo-magnetic Gyroscope RGB IR-LEDProximity Barometer Hall Sensor Finger Scanner UV Heart Rate Monitoring SpO2 (Dependent on market)
32 64 GB Internal memory + microSD slot (up to 128GB)3GB RAM
1513 x 824 x 83mm 174g
Standard battery Li-ion 3000 mAh Fast Charging (Adaptive Fast Charging amp QC20)
wwwthecfomecom66
APPSTECH TALK
AIR DISPLAY
SQUARE REGISTER
Using this app you can connect your iPad to your computer and use it as an additional screen While working on an important presentation or sales proposal you can extend or mirror your computer screen on your iPad This app is compatible with both Mac and Windows computers Note that to use this feature you have to install Air Display on your iPad and a separate free app on your computer The computer and iPad also need to be on the same Wi-Fi network in order to work in-sync
For Mac users the app allows you to connect to up to four screens ndash all at the same time
Apart from the ability to convert your iPad into a wireless display whatrsquos also attractive about this app is that it allows you to control your computer wirelessly using your iPad
This fantastic application can serve as a mobile point of sale for your business It allows you to accept credit card payments ndash including Visa MasterCard Discover and American Express A transaction fee of 275 is charged for every time you swipe a card The sale amount is transferred to your account within two working days
Once you download the app you can sign up and register for a unique card reader solution called the lsquoSquare Readerrsquo (this is free) Square Reader encrypts all card details and ensures that the transaction is secure Once you receive your Square Reader you can connect it to your device and are all set
The application also offers added features such as transaction history connecting to a receipt printer creating employee logins and more
AED 3699
PRICE
Free
PRICE
wwwthecfomecom 67
APPSTECH TALK
DOCUSIGNHave you ever been in a situation where your employees need you to urgently sign a contract but arenrsquot able to physically reach you in time DocuSign solves this problem with its easy-to-use eSignature feature In three easy steps you can sign important documents and securely send them to your intended recipient
First you have to import the document to your device ndash this could be from Dropbox Google Drive or another select applications You then place your signature or any other important legal information you need to include such as initials Once you have finished working on the document send it back via e-mail
Whatrsquos particularly great about DocuSign is the great emphasis it puts on security ndash so that users donrsquot have to worry about getting into any legal trouble
Use DocuSign and never miss a deadline again
Free for basic version
PRICE
MPAYAn initiative by the Dubai eGovernment Department mPay is a simple application that allows you to make important payments Once yoursquove signed up and entered your payment details you are good to go You can pay your Dubai Electricity and Water Authority (DEWA) bills Etisalat utility bills Dubai Police fines Recharge SALIK and much more
A handy feature is its lsquoauto-rechargersquo option which you can use to set automatic payments
Free
PRICE
Opinion CIMAPERSONALITIES
wwwthecfomecom68
NEW HORIZONSBy geetu Ahuja Head of gCC at CIMA
The days of the traditional accountant working within a small community in a small town in a small market have long gone CFOs are now being referred to as Chief Frontier Officers as they travel from market to market overseeing their offices overseas This new expanded role has distinct advantages for both the company and the CFO who gain new skills and new insights from foreign branches a single hand at the helm of many markets provides business perspectives on a global scale and benchmarks across the board
On a personal level working abroad also has huge importance Robert Walters the specialist professional recruitment consultancy recently conducted a survey
of almost 2200 employees across a variety of professions exploring a number of topics which ranged from working practices and attitudes to careers The results highlighted some notable trends particularly for finance professionals
In career progression for example the survey showed that 50 of all accountants see working abroad as either lsquoessentialrsquo or lsquoextremely usefulrsquo to furthering their prospects more than banking professionals lawyers and IT workers ndash a strong indication of how accounting professionals are thinking about their future either within their existing company or with opportunities elsewhere
Accountants with globally recognised qualifications obviously have a greater chance of gaining some experience abroad and the lsquoGen Yrsquo professionals in particular seem ready to pack their bags In a CIMA study conducted in the UK last year over a third of those seeking employment in the
next two years will prioritise opportunities abroad over those in their home countries many of them enticed by the career incentives offered by the Middle East
How quickly can they land what seems to be their dream job What are the realities It may be that the move is simply from one branch to another and the only significant difference is a view from the window but for those expanding rather than changing their roles we have seen a very real need for a depth and breadth of knowledge never needed before
As geographical boundaries are pushed ever-wider a CFOrsquos responsibilities are pushed with them For many finance executives the understanding of their own patch of land is no longer enough they now have to be aware of foreign markets up to speed with foreign trends and au fait with foreign laws There is a need for a new commercial awareness in geography as well as philosophy
As geographical boundaries are pushed ever-wider a CFOrsquos responsibilities are pushed with them
John vargheseQampA
wwwthecfomecom 69
BUSINESSSET UP YOUR
IN THE UNITED ARAB EMIRATES
TO
WAREHOUSESOFFICES INDUSTRIAL LANDFLEXI
Quick and easy company set-up
Less than an hour drive from Dubai
Complete cost-effective packages including licences and facilities
100 foreign ownership
Zero income and corporate taxes
Eligibility for UAE Residence Visa
BUSINESS SET-UP SOLUTIONS STARTING FROM AED 15000 (USD 4000)
RAK FREE TRADE ZONE PROVIDES
RAK Free Trade Zone Authority - Government of Ras Al KhaimahUAE (Ras Al Khaimah) Tel +971 7 2041111 (Dubai) Tel +971 4 7041875 (Abu Dhabi) Tel +971 2 6994888
Germany (Cologne) - Turkey (Istanbul) - India (Mumbai)
Call +971 7 204 1111 Visit wwwrakftzcom Join rakftz
43
Private Equity ANALyTICS
wwwthecfomecom
robust set of complimentary and required skills Most of all the bar for CFOs is rising as PE investors will only accept above-average performance from their management teams
CFOs were once more reactive in function setting budgets based on other executivesrsquo plans and managing the flow of reporting to shareholders on a quarterly and yearly basis Today CFOs are required to become proactive managers of their respective businesses alongside their C-suite compatriots using a granular data-driven approach to aggregate analyse implement and report on every aspect of a companyrsquos operations
An important tool to drive this value creation process are KPIs Yet KPI structures including both aggregation and output are generally not up to the standards required of private equity investors prior to an investment being made
ldquoThe benefits of using KPIs and monthly reporting packages are significant By effectively using real-time data that is actionable and by partnering with functional area leaders within the organisation company CFOs can create a dynamic process that proactively drives performance accountability and value creationrdquo said Amanda Robinson Vice President of Accordion International in Dubai a consulting firm which is comprised of former private equity and investment banking professionals who
MENA region Cumulative Funds Under Management Since 2008
Source Zawya private Equity Monitor
19 636 20 36321 586
22 64323 506 24 250
-
5000
10000
15000
20000
25000
2008 2009 2010 2011 2012 2013
Cu
mu
lati
ve f
un
ds
($ m
)
$15mAverage MENA PE investment size in lsquo13
50Percentage of investment in IT and energy sectors
STAT FACTS
44 wwwthecfomecom
work with companies to deliver cost-effective project execution services
Active shareholders whose money it is being spent will typically require a data-driven justification before approving any budgets capital expenditures or new acquisitions Furthermore in many private equity backed companies the use of debt and the matching of shorter-term bank financing with longer-term investments will only be considered after a robust analysis is conducted to understand the companyrsquos ability to service that debt in the future This evaluation is not simply to identify revenues expenses and profits Itrsquos about drilling down into every transaction and rooting out data processing and reporting At least that is the expectation
The most valuable CFOs are those who have the ability not just to scrutinise and understand the financials but all also possess a wider grasp of the underlying data which truly comprise the business As an investor who has just acquired a stake in a new business I want a CFO who can manage the transition and stay ahead of my expectations Most of all a CFO should impress upon the companyrsquos shareholders a new way of doing business The first 100 days of an acquisition are said to be the most important During this period the CFOrsquos worth will be established when the new financial plan is due and the platform for the next five years of growth is presented
A CFO should man-age the tran-sition stay ahead of expectations and impress upon the companyrsquos shareholders a new way of doing business
Investment Volume By Sector Since 2006
Investment Volume By Sector in 2013
Source Zawya private Equity Monitor
1
3
30
17
3
28
3
4
6
4
6
5
17
9
9
6
9
5
8
6
6
2
3
10
Education
Education
Information Technology
Information Technology
Other
Other
Telecoms
Telecoms
Media
Media
Transport
Transport
Oil amp Gas
Oil amp Gas
Healthcare
Healthcare
Consumer goods
Consumer goods
Food amp Beverages
Food amp Beverages
Leisure
Leisure
Manufacturing
Manufacturing
ANALyTICS
Private Equity
2000857 NBAD ratibi mag ad 200x268 Finalindd 1 92514 1017 AM
46 wwwthecfomecom
THE FUTURE OFACCOUNTING EDUCATIONAddRESSINg THECOMpETENCY CRISIS
Have you ever stopped to think about how the accounting profession has changed since you graduated from college Recent graduates can answer this question by reflecting on the last two or three years whereas for other more seasoned professionals answering this question requires a bit more thought and memory searching Indeed we can all think of ways that the field of accounting is remarkably different today from the one we likely envisioned during our college daysmdashregardless of which decade we each donned our cap and gown This gradual transformation of the accounting profession leads to two important questions related to competencies bull Which competencies are important for success inaccounting todaybull Were these competencies consciously developed as partof your accounting degree programme
We suspect that more than a few of you would answer ldquonordquo to the second question Put another way our profession may be facingmdashmore so than at any time in the pastmdasha ldquocompetency crisisrdquo that is a gap between the competencies needed for professional success and those taught in our college classrooms today We propose a three-pronged strategy or ldquogame planrdquo for overcoming this competency crisis and in turn better preparing accounting graduates for the challenging world they will face First all of us accountants need to understand the changes that have already taken place in our profession and perhaps more importantly anticipate the changes that are on the horizon Second we need to educate ourselves and future generations of accountants so that as a collective group we can deliver the expanding set of competencies demanded in todayrsquos dynamic organisational
contexts Third as professional organisations and as individuals we need to think beyond ourselves by asking How can I (or we) help the accounting profession address the competency crisis
A Shift Toward Integrated ThinkingMany articles and white papers have been written that describe in detail the changes that have occurred in our profession over the last few decades but for our purposes wersquod like to distill these changes down to one crucial idea How does the accounting function add value to an organisation Accountants have evolved from support-oriented personnel who hand off information to others who actually make decisions into business partners who ldquohave a seat at the tablerdquo with managers
By peter C Brewer James E Sorensen CpA CgMA and david E Stout
47wwwthecfomecom
1048576bull What regulatory risks mayaccompany the proposal
1048576bull What social and environmentalfactors will we face if for example the proposal requires investing in overseas operations
1048576bull What types of employeeresistance may arise if we implement the proposal and how will we overcome the root causes of any such resistance
1048576bull Can and how should we valuefuture options associated with the proposal such as expanding or contracting the investment over time as new information becomes available
1048576bull Should we use debt or equity tofund the proposal
In short accountants have evolved to become integrated thinkers who enable EPM by partnering with managers across the organisation to add value Yet as EPM has gradually become the centrepiece of our professionrsquos value proposition accounting education hasnrsquot done enough to embrace it To overcome this gap wersquod like to further suggest that the concepts of competency integration and EPM need to come ldquofront and centrerdquo as we move forward in educating the next generation of successful accounting practitioners
Accounting Education No Longer on the SidelinesRecently a task force consisting of members of IMAreg (Institute of Management Accountants) and members of the Management Accounting Section (MAS) of the American Accounting Association (AAA) addressed the competency issue How should accounting education change fundamentally to help close the competencies gap The efforts of the task force led to
cash flows and how to apply discounted cash flow (DCF) decision models such as net present value (NPV) is of foundationalmdashsome might say critical mdash importance But integrated thinkers draw on an understanding of organisational strategy coupled with a broader set of competencies (beyond what might be considered technical or foundational knowledge) when making these types of decisions For example they consider how behavioural issues may influence the capital investment decision-making process Perhaps the financial estimates contained in the NPV analysis are too optimistic because the manager who prepared the numbers has a vested interest in seeing the project approved Decision makers also need to consider issues such as leasing vs buying a capital asset and the corresponding impacts on the financial statements and ratios that are tracked by investors and lenders What nonfinancial factors are associated with the proposed investment Add in the tax consequences of capital investment decisions coupled with the need to maintain internal control over any new business processes tied to these decisions and the need to think in an integrated fashion across a variety of accounting competencies becomes apparent
Furthermore becoming a true business partner with managers across the organisation requires more than simply integrating various accounting competencies It also means thinking like a business manager or a chief executive officer (CEO) Returning to the capital budgeting example an integrated thinker will ask questions such as
across the organisation Together they formulate and plan strategies then participate in collaborative decision-making processes that execute those strategies in a manner that adds stakeholder value Said another way accountants have evolved to become enterprise performance managers This shift in our orientation from a support function to an enterprise performance management (EPM) role has enormous implications for defining the determinants of success within our profession the most important of which involves becoming collaborators and ldquointegrated thinkersrdquo Take for example a common but important business decision process capital investment analysis Certainly technical knowledge regarding how to estimate relevant after-tax
48 wwwthecfomecom
expanding capital budgeting discussions to include financial statement impacts tax consequences and internal control issues integrates topical coverage across the External Reporting and Analysis Taxation Compliance and Planning and Assurance and Internal Control competencies shown in Figure 1
Third accounting curricula can incorporate a broader set of management competencies For example evaluating capital investment proposals from the perspectives of change management (Leadership) social and environmental issues (Ethics and Social Responsibility) regulatory concerns (Governance Risk and Compliance) and capital structure (Additional Core Business Competencies) brings a CEOrsquos perspective to the decision-making process
Fourth accounting curricula should include foundational competencies such as proficiency with spreadsheets and written and oral communication In the context of capital budgeting this may include asking students to use Microsoft Excel to perform a sensitivity analysis and then to present their findings to the entire class
Working to Fix the ProblemAt this point although you may agree with us that therersquos a competency crisis within the accounting profession you may be wondering What does this have to do with me What can my organisation do to help address this so-called competency crisis The answer a lot Practice partners and academic partners can help the accounting profession overcome the competency crisis That said letrsquos take a closer look at the role of practice partners first
improvement) and accounting competencies (external reporting and analysis planning analysis and control taxation compliance and planning information systems assurance and internal control and professional values ethics and attitudes) Of critical importance to the framework is the assumption that the set of competencies contained in Figure 1 would be developed and integrated over time through a blend of formal education (including continuing education) training and job experience
What levels of integrationmdashon the road to developing integrated thinkers in accountingmdashare possible First accounting educators can integrate within a single accounting competency So referring back to our capital budgeting discussion teaching computational models such as NPV analysis coupled with a review of various behavioural issues associated with capital investment decisions would be an example of integrating within the Planning Analysis and Control competency listed in Figure 1
Second professors can integrate across accounting competencies For example
a recently published article that contains a proposed framework for accounting education reproduced here as Figure 1 The framework is general in the sense that itrsquos meant to apply to all accounting students not subgroups based on career specialisation such as tax assurance services corporate finance and the like Itrsquos based on the idea that accounting educators can better prepare students to deliver our professionrsquos EPM value proposition through integrated competency-oriented curricula (For more see ldquoFocusing Accounting Curricula on Studentsrsquo Long-Run Careers Recommendations for an Integrated Competency-Based Framework for Accounting Educationrdquo in the May 2014 edition of Issues in Accounting Education)
A glance at Figure 1 reveals three levels of competencies foundational competencies (communication ability to leverage technology and analytical thinking and problem solving among others) broad management competencies (including leadership ethics and social responsibility and process management and
Proposed Competencies-based Framework for Accounting Education
FOUNDATIONALCOMPETENCIES
ACCOUNTING COMPETENCIES
BROAD MANAGEMENT COMPETENCIES
leadership
ExternalReportingamp Analysis
PlanningAnalysis
amp Control
TaxationComplianceamp Planning
InformationSystems
Assuranceamp InternalControl
ProfessionalValues Ethics
amp Attitudes
Communication
Quantitative
Interpersonal
Technological
Analytical Thinking ampProblem Solving
Ethics amp SocialResponsibility
ProcessManagement ampImprovement
GovernanceRisk amp
Compliance
AdditionalCore BusinessCompetencies
Although you may agree with us that therersquos a competency crisis within the account-ing profes-sion you may bewondering What does this haveto do with me
A practice partner should be or become a CMAreg (Certified Management Accountant) maintain professional certification by completing required Continuing Professional Education (CPE) hours and regularly read the IMA publications Strategic Finance and Management Accounting Quarterly
In addition there are a number of excellent resources that deal with topics covered in this article and that IMA makes available to its members
Strategic Finance PowerPacks(wwwimanetorg SFPowerPacks) These are resources focused on contemporary topics similar to those discussed earlier Current offerings include Risk Management Strategic Planning IT Skills amp Software and Internal Controls Each PowerPack includes a combination of resources such as research studies articles and links to webinars
Statements on Management Accounting (SMAs)(wwwimanetorgresources and_publicationsresearch_ studies_resourcesstatements on_management_accounting aspx) SMAs represent monographs classified into one of the following six categories Leadership Strategies and Ethics Technology Enablement Strategic Cost Management Business Performance Management Finance Governance Risk and Compliance and the Practice of Management Accounting Multiple items are available within each category For example the Practice of Management Accounting category includes (among other items)
49wwwthecfomecom
the Definition of Management Accounting and Implementing Shared Service Centres
Research Studies (wwwimanetorgresources_and_publicationsResearch_Studies_and_ResourcesAll_reportsaspx) The ldquoThoughtLeadershiprdquo section of IMArsquos website includes research covering a broad range of issues classified into seven categories For example under the ldquoGlobal Business Environmentrdquo category the following two research reports are available ldquoKey Differences Between IFRS and US GAAP Impact on Financial Reportingrdquo and ldquoCosting Methodologies and Cost Management Practices in the Peoplersquos Republic of Chinardquo
IMA Leadership Academy (www imanetorgprograms_events leadership_academyaspx) As described on the IMA website this programme is designed to assess a memberrsquos leadership status enhance that individualrsquos skills (principally through monthly webinars) and recognise leadership achievements These benefits are free to members
How You Can Make a Bigger Impact In addition to attending local regional and national IMA meetings consider inviting a small group of students to each chapter meeting This could be a wonderful (and relatively low-cost) option for mentoring aspiring accountants and finance professionals providing networking opportunities and introducing students to cutting-edge issues regarding the practice of management accounting Joining a university accounting
advisory group may be another way to influence the development of EPM in that institutionrsquos curriculum design
Other methods to enhance EPM in your organisation include (1) forming user groups within your company your local IMA chapter or your industry to review and share EPM experiences (2) encouraging advancement in the firm to be linked to EPM proficiency (3) focusing your companyrsquos recruiting efforts on candidates who display a background in andor understanding of EPM and (4) organising cross training within your company to enhance a mutual understanding of each otherrsquos respective roles
Finally visit the Competency CrisisTM website (http competencycrisisorg) set up by IMA to unite the accounting and finance constituencies professionals students employers academics and professorsmdashand explore competency issues through the lens of each stakeholder group The site is designed to ldquoencourage a discourse spur action and create a community dedicated to resolving the serious crisis of competency present in the professionrdquo Special sections of the website are devoted to educators students and employers professionals
Our Partners in Education Much like a practice partner an academic partner should be or become a CMA maintain professional accreditation by completing CPE hours and regularly read IMArsquos publications
Academic members of IMA can pursue and actively promote the CMA programme at their respective institutions
50 wwwthecfomecom
IMArsquos website contains helpful resources including an exam content overview content specification outlines for each of the two parts of the CMA exam and learning outcome statements The current exam covers some of the professional competencies represented in Figure 1 A summary of changes to exam content which will be effective in January 2015 is provided on the IMA website in News amp Media Relations which is located under ldquoAbout IMArdquo (See the press release dated March 24 2014) Other helpful resources include ldquoICMA Announces CMA Exam Content Changesrdquo in the April 2014 issue of Strategic Finance as well as ldquoManagement Accounting Career Readiness Shaping YOUR Curriculumrdquo
These forthcoming changes are based on the most recent IMA study of the knowledge and skills needed by management accountants from the view of CFOs controllers and other accountingfinance professionals from around the world
Also consider taking a group of your students to the IMA Student Leadership Conference held each November The Conference provides excellent networking opportunities for you your students and practicing professionals Students can learn firsthand from Conference presenters the challenges and opportunities facing finance and accounting professionals today
Moreover if your institution doesnrsquot currently have an IMA Student Chapter consider forming one One of the authors of this article David Stout reinstituted the student chapter at his school (Youngstown State University) after travelling with a group of his students to the IMA
Student Leadership Conference in Cleveland Ohio Through an IMA Student Chapter on campus students are able to work closely with a sponsoring local IMA chapter and bring to campus speakers who are experts in a wide range of topics including those discussed earlier in this article Each year student chapters compete for an Award of Excellence (AOE) and recognition as an Outstanding Student Chapter In addition IMA student members are able to engage in networking activities leadership training mentoring and community service programmesmdashall through their local chapter
You also might consider volunteering to serve as a Campus Advocate In this role yoursquoll represent IMA in all major matters of interest to your students (scholarship opportunities starting a student chapter mentoring and the like) and to your institution (for example leveraging IMA resources to advance the relevancy of the accounting curriculum use of educational case studies published in the IMA Educational Case Journal and access to IMArsquos ethics curriculum)
And if you havenrsquot yet done this ask IMA to endorse your accounting programme (information is available at www imanetorgeducator_resources indexaspx) This programme is designed to identify business curricula that meet the quality educational standards required to prepare students to earn the CMA designation Endorsement is based on an analysis of the curriculum and topics covered on the two-part CMA exam Currently 12 programmes have been endorsed
Finally if your school has an IMA Student Chapter consider participating in the annual IMA Student Case Competition where students are asked to propose a solution to a real world problem (Cases are solicited each year by Raef Lawson IMA VP of Research and Policy and IMA Professor in-Residence) Finalists make their presentations at IMArsquos Annual Conference amp Exposition before a set of judges consisting of accounting faculty members and practitioners Each year a new case is published in the August issue of Strategic Finance for students to use for that yearrsquos competition
Working TogetherIn this article we have summarised the changes that have affected the accounting profession and provided a competencies-based framework for guiding accounting educators in responding productively to those changes As a management accountant you know that implementing change in any organisation let alone within an entire profession never comes easily To be successful in overcoming our professionrsquos competency crisis IMArsquos practice and academic partners will need to assume leadership roles in defining enterprise performance management as the cornerstone of the accounting professionrsquos value proposition
This article was orginally published in the August 2014 issue of Strategic Finance It appears here with the permission of The Association of Accountants and financial professionals in Business
We need to educate ourselvesand future generations of account-ants so that as a collec-tive group we can deliver theexpanding set of com-petenciesdemanded in todayrsquos dynamicorgani-sational contexts
THE POWERFUL AND THRIFTY OFFICE ALL-ROUNDERS
The new ECOSYS M3560idn series will astound you With their print speeds of up to 60 pages per minute they are among the most productive A4 bw multifunctionals on the market We nevertheless managed to keep their ecological footprint and total cost of ownership impressively low by using our well-known ECOSYS technology and equipping the devices with our renowned long-life components The result Not only less waste and lower maintenance costs but also less hassle for you and all your colleagues You will also greatly appreciate the many customisation possibilities of the devices equipped with KYOCERArsquos open solution platform HyPAStrade as it allows you to tailor the device to your needs So yes we are proud of our new range of MFPs and can hardly wait to share their numerous benefits with you
For more information please contactKYOCERA Document Solutions Middle East | PB Box 500817 DubaiUAE | Tel +9714 4330 412 | Fax +9714 4231 944KYOCERA Document Solutions Europe BV - wwwkyoceradocumentsolutionseuKYOCERA Document Solutions Inc - wwwkyoceradocumentsolutionscom
52
ACCAINTERVIEW
wwwthecfomecom
GLOBAL By ASSOCIATION
across the region from our key employers and learning provider partners to our active and growing student and member base I want to understand their challenges and priorities and how ACCA can work with them to help support the economic success of the region
What can a CFO gain from working with ACCAThe ACCA qualification is about complete finance professionals For CFOs it brings the technical knowledge vital to business success complemented with the strategic management skills and ethical competence crucial to an organisationrsquos success As an organization ACCA in the UAE brings CFOs access to that local and global network of peers and expertise along with our leading research and insights that help them to keep up to date on the issues that matter most
Are there any initiatives in place to leverage the recently announced partnership with AAA
How are the ACCArsquos many years of activity being applied to the Middle EastACCA has now had a presence in the UAE for well over a decade During that time we have established strong relationships across the Middle East epitomised by the recent signing of our Strategic Partnership with AAA As a national body in choosing to partner with ACCA they recognised the local and global perspective we bring We are continuing to work with students members and employers across the Middle East to build their networks knowledge and business success through events research and insights and access to a growing number of online resources
Which initial priorities are among your key aims upon joining the organisationrsquos efforts in the UAEIn the first few months I hope to build on the success of the team in the UAE My priority will be to meet as many of our key stakeholders
The Association for Chartered Certified Accountants (ACCA) provides its services across a number of international borders The recent announcement of Lindsay Degouve de Nuncques as the new head of the Associationrsquos UAE chapter further exemplifies the ACCArsquos reach based on her previous work in the UK Nuncques shares here what she brings to the Middle East and just how globalisation has driven her ascent
53
ACCAINTERVIEW
wwwthecfomecom
The strategic partnership with AAA is the first of its kind in the region Students who complete the UAECA qualification will be entitled to both the AAA and ACCA designations and ACCA members in the UAE will also be eligible to apply for AAA membership This is a very exciting development in the market and together AAA and ACCA will be working to deliver maximum value to all our stakeholders from this partnership As we launch the UAECA qualification this activity will start in earnest
Which key industries will you be spotlighting in the Middle East in the months aheadOur experience of working across all sectors and levels of organisations globally gives ACCA a unique insight into all types of industries We will continue to be working with employers across the spectrum in the months ahead to help them gain the insight and make the connections that drive businesses to succeed at whatever they do
ldquoThe ACCA qualification is about complete finance professionals For CFOs it brings the technical knowledge vital to business success complemented with the strategic management skillsrdquo
54
Islamic FinanceMARKET OUTLOOK
wwwthecfomecom
In its 10th instalment the Forum is hosted in Dubai as a direct result of the UAErsquos increasing importance in the world of global Islamic finance
THE WORLD ISLAmIC ECONOmIC FORUm LANDS IN DUBAI
In Dubairsquos continued quest for leading the world across a range of spectrums the Emirate accelerated its desire to become the worldrsquos leading hub for Islamic finance by hosting the 10th installment of the World Islamic Economic Forum (WIEF) Delegates from dozens of countries attended to take part in a three-day event held at Madinat Jumeirah which rests alongside Dubairsquos gleaming coastline Held under the patronage of His Highness Sheikh Mohammed Bin Rashid Al Maktoum the
Vice President and Prime Minister of the UAE and Ruler of Dubai key speakers included The Honorary Dr Zeti Akhtar Aziz Governor of the Central Bank of Malaysia HE Kairat Kelimbetov Governor of the National Bank of Kazakhstan The Honorary Datorsquo Sri Mohd Najib Tun Abdul Razal Prime Minister of Malaysia and HE Xavier Bettel Prime Minister of the Grand Duchy of Luxembourg
Launched in 2006 in Malaysia WIEF has grown in tandem with the increased
Delegates from dozens of countries attended WIEF to take part in the three-day event
sophistication and reach of Islamic finance After a successful event in London in 2013 amidst increased interest in Islamic finance across Europe WIEF relocated to Dubai where the local business structure is keen to host halal finance
Said Hamad Buamim President and CEO Dubai Chamber of Commerce and Industry co-organisers of the event ldquo[The forum] is the start of a new chapter of cooperation between Dubai and the world as part of
55
Islamic FinanceMARKET OUTLOOK
wwwthecfomecom
Dubai Capital of Islamic Economy visionhellipestablishing a unified regulatory authority to provide the framework for standards across halal industries will significantly accelerate growth Likewise we need to see increased cooperation and partnership between the public and private sectors This is already happening with great success here in Dubairdquo
The order of global cooperation needed to facilitate growth across the Islamic finance world was more than apparent at WIEF based on how many differing nations were represented at the event The exhibitorrsquos hall was populated with a number of key Malaysian stands representative of the Southeast Asianrsquos ranking as the global leader in Islamic finance Also present were companies from Saudi Arabia also a key locality in the worldrsquos halal industries An interesting yet prescient presence was of attendees from South Korea a nation which is eager to participate in Islamic finance and will be hosting the WIEF Pyeongchang Roundtable in December 2014
ldquoGangwon is a province located in Korea which is very interested in new business opportunities Wersquove realised the strength of the Islamic economy and have come here with many different companies The first type is based in real estate investment We also have companies which want to export their products to the Islamic economy based on their halal qualities And Gangwon will also be hosting the Winter
ldquoKorea is very interested in the strength of the Islamic economy and wants to export its products based on their halal qualitiesrdquo
56 wwwthecfomecom
$247trillionProjected value of halal products industry in lsquo18
125Muslim percentage of global tourism expenditure
STAT FACTSOlympics in 2018 and are presently seeking investments for this as wellrdquo said Seong-hun Kim a member of Gangwon Province Governmentrsquos Export Support Team
Dubai proved to be an excellent place for the event considering how well the UAE is able to so regularly corral international cooperation A key sign of this was witnessed recently when Luxembourg now considered the third most important base for Islamic finance globally opened a finance office in Dubai International Finance Centre The European nation also opened a euro200 sukuk earlier this year which was quickly oversubscribed
The prime minister of Luxembourg offered the WIEF audience a riveting speech which detailed just how international the Forum has become whilst encouraging more of the world to support the growing influence of Islamic finance
Said Bettel ldquoWe need to innovate more economic partnerships for growth We sometimes need to reengineer relationships but also have to make sure these relationships remain sustainable Growth in one country also brings growth to others as long as this is guided by free market initiatives Free trade and free flow of capital combined with innovation leads to prosperity We have all gathered here in Dubai to explore the future of Islamic finance and Luxembourg is also a pioneer of Islamic finance in Europe The Islamic financial sector has a major role to play in continued global growthrdquo
The Islamic Corporation for the Development of the Private Sector (ICD) is based in the Kingdom of Saudi Arabia where it manages an international fund worth $2 billion half of which is available for subscription With shareholders in more than 50 countries and a sovereign sukuk fund recently launched in West Africa the ICDrsquos CEO Khaled M Al Aboodi attended WIEF this year excited to participate in the global event
How does the ICD approach its attendance at the World Islamic Economic ForumI think the Forum is one of the best places for discussing the financial issues of the OEC member countries It has been around for ten years and has grown to become a very important platform for discussion Wersquore here to attend and listen but also to network Itrsquos a great networking platform and a place to share views whilst letting everyone know what we have to offer
How has Islamic finance changed over the yearsOf course itrsquos growing in a large scale Some of it actually needs more support particularly with respect to regulatory frameworks Wersquore trying to partner with many international organisations like the IMF to try to provide support to countries to adapt regulation for Islamic finance Sukuk issuance is one of the biggest issues that needs to be addressed because there is a huge amount of liquidity in this arena Due to issues related to regulation sukuk issuance can be costly But with the regulation we are confident it will be on a level playing field with other forms of finance Compliance is a major area where more work can be done The Forum started with a roundtable on sukuk which shows how helpful WIEF has been over the years
What type of work does ICD do internationallyICD helped the government of Senegal to issue the first sovereign sukuk This was successfully issued last summer Progressing in this manner is something wersquod like to see continue across West Africa in order to utilise its resources with aiding development in the region in mind
QampA WITH KHALED M AL ABOODI CEO OF ICD
Islamic FinanceMARKET OUTLOOK
OFFICIAL SPONSORS
ENDORSED BY OFFICIAL HOST OFFICIAL
COMMUNICATIONS PARTNER
MEYDAN HOTEL DUBAI UAE19 - 20 NOVEMBER 2014
WOMENOMICSthe next emerging market
TAKE PART in making change happen UNITE with business and through leaders from across the globe
PARTICIPATE to the expansion of a modern and inclusive economy
58
Gautam PradhanINTERVIEW
wwwthecfomecom
SUCCESS BEyOND BOUNDARIES
in other management roles such as strategic decision making mentoring and leading efficiency and productivity across a range of other departments and functions as well as a being a catalyst in ensuring that the boardrsquos vision for the organisation is achieved
A significant percentage of NMDCrsquos shares are owned publicly Does the CFO play a role in balancing the interests of the shareholdersAs a CFO balancing the shareholdersrsquo interests is definitely part of my responsibility In order to achieve this goal there needs to be a careful evaluation of each decision while keeping the short-term and long-term goals of the company in mind At NMDC we actively implement a system where we utilise a balance scorecard as a method of ensuring that all our primary objectives are met yet at the same time continuously enhance our relationships with our shareholders
NMDC has completed various projects across the Emirates Are there plans to move abroadAs NMDC moves towards becoming an international player our strategic expansion plans are focused in areas within the GCC region and India In line with this strategy we opened
How has a company with such a unique set of deliverables grown so consistently over the yearsOur organisation strongly believes that the core to our strength is the people process and equipment A strategic decision led by our Board of Directors and the senior management has been implemented that required us to consistently invest in these three aspects to help expand our business beyond the territorial boundaries of the UAE and at the same time enhance what we can offer which is relevant to these segments We attribute our success to the efforts which every employee contributes We also strongly believe in the ldquoWe can make it happenrdquo principle The management raises the index of performance while setting SMART objectives within the organisation and encouraging the employees to achieve them
How has your position as the CFO changed over NMDCrsquos 35 years of operationAs the market evolves and business dynamics change my role as the CFO has become complex and more challenging A few years back I was mainly focused on bookkeeping accounting and other financial responsibilities such as arranging bank facilities But moving forward I became more involved
The UAE is progressively becoming a hub for world-class infrastructure The country has duly impressed the rest of the globe with noteworthy land developments showcased across the emirates Among the remarkable landscapes found in Abu Dhabi are the Corniche Beach Yas Island and Sir Baniyas Island Behind these successful projects is NMDC the dredging division of Abu Dhabi National Oil Company (ADNOC)
In an interview with CFO Magazine Gautam Pradhan Chief Financial Officer NMDC shares an exclusive look into the companyrsquos international blueprint for growth and his dynamic role as a strategic leader of one of the best in dredging and marine construction in the Middle East
59
Gautam PradhanINTERVIEW
wwwthecfomecom
branches in Qatar Bahrain Oman and India This has paid rich dividends recently as projects of strategic importance are bagged in Qatar and Bahrain Furthermore NMDC (UAE) has recently played a key role as a leader of an international consortium with Royal Boskalis Westminister (Netherlands) and Jan De Nul Group (Belgium) for the awarding of the Suez Canal Dredging project in Egypt Moving forward we have devised a strategic approach that will enable us to play a key role in the development of Indiarsquos marine infrastructure
What are the global strategies that are part of the CFOrsquos responsibilitiesAs CFO understanding the macro economic scenario risk analysis and mitigating those risks are all a part of my responsibilities I also have to have a proper comprehension
ldquoA few years back I was mainly focused on financial responsibilities moving forward I became more involved in strategic decision making mentoring and leading productivityrdquo
Gautam PradhanINTERVIEW
60 wwwthecfomecom
of the challenges faced by the company in terms of dealing with foreign contracts direct and indirect taxes and hedging and managing the integration process These are essential to enhance shareholders wealth and mitigate undue risk
How significant is accountancy for NMDC in its operations Why exactlyAccountancy is the lifeline of any company it does not only record the finances it also reflects the health of the organisation The MIS reports analysis trends and statistical information go a long way toward effectively providing
the diagnostic approach essential for the company
How have NMDCrsquos environmental activities helped the companyrsquos bottom lineNMDCrsquos work is well-synchronised with our environmental activities and specifically with nature Our activities are closely linked to sand and water and we view such activities with strategic importance Projects such as increasing water supply to mangroves and beach nourishment help us support the environmental activities while adding to our bottom line
ldquoAccountancy is the lifeline of any company it does not only record the finances it also reflects the health of the organisationrdquo
A burgeoning slice of Abu Dhabi coastline
The largest business awards
in the GCC30th November Dubai
nominate now at wwwstarsofbusinessawardscom
Stars of Business has become an iconic awards brand like no other in the region It recognizes the very best SMEs across 26 business categories Itrsquos universally respected as scientifically assessed and unimpeachably judged
327000 SMEs across the UAE$234 billion estimated total revenue of the SME sector4974 Awards entries in 20131856 Individual company applicants
Presenting Partner Strategic SME Partner Gold Sponsor Gold Sponsor VIP Hospitality Partner Supporting Partner
Trade Facilitator PartnerTrade Credit PartnerLogistics Partner
Institutional Partner Institutional Partner Event Partner
OrganiserPublisherMedia Partner Media PartnerPort Authority Partner
62
David Allen INTERVIEW
wwwthecfomecom
What went into completing your bestseller ndash Getting Things Done (GTD)After twenty years of researching developing and implementing a methodology for achieving stress-free productivity based upon
thousands of hours spent desk-side with
some of the best brightest and busiest people in the world I decided to write the manual for it Thatrsquos what Getting Things Done is
What are the five phases of mastering workflowIn order to get
any situation under control so
you can focus you will utilise these five
steps Whether yoursquore managing your kitchen
or your company you will need to collect and capture what has your attention clarify what if anything to do about it organise it according to what it means to you review and reflect upon it in relation to
Todayrsquos evolving CFO is often caught between the world of business set-up generating revenue managing employees and building strong company infrastructure When can things actually get done What can one do to boost productivity and master workflow World-renowned business coach David Allen has the answers
PRODUCTIvITy PRINCIPLES WITH
DAvID ALLEN
63
David Allen INTERVIEW
wwwthecfomecom
those are greatly subvertedHow does one maintain a fair balance between the time spent planning and actually getting things doneYou simply need to spend just the amount of time you need to to trust that what you are getting done is the right thing to be getting done in the moment It takes as long as it takes to get to that point Why would you do anything less
How can one apply your core productivity and workflow principles to todayrsquos technologically driven environmentThe principles and their techniques are system-independent Whether you have meaningful input from the Internet your smartphone or a conversation in the hall you must engage with it equally Technology has simply increased the flow of input and ease of distraction in your world
There is a lot of talk about how connected wersquove become and how connectivity is driving tremendous business growth Does connectivity actually come with its fair share of downsides
Connectivity is obviously a two-edged sword We can have intimate productive and creative interaction instantly with someone on the other side of the world and we can just as easily be distracted and seduced into those engagements when they may not be the best use of our attention and resources Donrsquot shoot the medium Itrsquos all simply bringing attention to your clarity of direction and priorities or lack thereof
Could you share a few quick tips with our readers to instantly boost productivityWrite everything down that has your attention Decide the very next actions required to get closure on all of them Any next actions that require less than two minutes do instantly Park reminders of everything else somewhere that yoursquoll see when you can do something about them
We are currently facing a massive information overload What are some basic principles you could suggest to mentally organise such large amounts of dataConstantly ask yourself Where am I going Whatrsquos important and rewarding to me Is this information
the whole and then engage your resources with intuitive trust
As a CFO how can you transfer efficient workflow management skills to your employees Itrsquos very difficult to legislate processes for individuals ndash you can really only hold them accountable for their results But if you are managing your own commitments and intersections with them with integrity and rigour it will automatically force your team to ldquostep up to the platerdquo in their own behaviours in order to meet your standards If you request their complete list of their company projects and they canrsquot produce it thatrsquos a sign theyrsquore not in control If they make a commitment to you that they havenrsquot kept thatrsquos data about their performance GTD is simply about good operational business practices
With so many planning and organising activities in your methodology is there a risk of losing spontaneity as a strategistThe reason for these best practices is to optimise freedom creativity and spontaneity Without them
ldquoBut if you are manag-ing your own com-mitments and intersec-tions with them with integrity and rigour it will automatical-ly force them to ldquostep up to the platerdquo in their own behaviours in order to meet your standardsrdquo
64 wwwthecfomecom
supporting that Park whatever you find potentially meaningful somewhere that is easy to access when needed
Being an entrepreneur is a non-stop job How do you ensure that you have an adequate work-life balance Pay attention to what has your attentionmdashwith regard to anything Your health relationships career finances etc Notice when something might be ldquooffrdquo and make good decisions about what you need to do to get it back ldquoonrdquo again
Does your work teach people to be efficient or effective In essence they are the same thing Effective choices are generated by efficiency on a higher level If you want to implement strategy most effectively it demands utilising your resources optimally which is efficiency
Does motivation actually improve quality of work or purely quantityDepends on the focus of the motivation You can be motivated to work harder and you can be motivated to work smarter
What is your favourite productivity mantra that
you implement in your day-to-day lifeUsing my own in-basket and note-taking devices to capture potentially meaningful and valuable ideas and soon afterwards clearing all of them out by deciding what to do about them if anything
Your books seminars and other work inspires many individuals and businesses Who is your personal inspiration or role model I have many about many different aspects of my life The only person though that I ultimately trust as my best guide is my higher self which I try to access as frequently and clearly as I can
Finally what advice would you give to current business owners and aspiring entrepreneurs looking to gain complete control of their life and businessCapture what has your attention clarify what you need to do about it to get it off your mind organise the inventory of all your commitments at all levels review and reflect on all of that regularly relax and trust your inner wisdom to engage with the most appropriate thing in the moment
ldquoIf you want to implement strategy most effectively it demands utilising your resources optimallyrdquo
David Allen INTERVIEW
APPSTECH TALK
wwwthecfomecom 65
mAxImISE BUSINESS lsquoON-THE-GOrsquo WITH THESE HANDy APPS
ipAd SpECIAL
SAMSUNG UNvEILS GALAxY NOTE EDGE
Network
AP
Display
OS
Camera
Video
Audio
Additional Features
GoogleMobile Services
Connectivity
Sensor
Memory
Dimension
Battery
The availability of service may differ by country All functionality features specifications and other product information provided in this document including but not limited to the benefits design pricing components performance availability and capabilities of the product are subject to change without notice or obligation
Samsung Galaxy Note Edge Product Specifications
25G (GSM GPRS EDGE) 850 900 1800 1900 MHz3G (HSPA + 42Mbps) 850 900 1900 2100 MHz4G (LTE Cat 4 15050Mbps) or 4G(LTE Cat 6 30050Mbps)May differ by country and carrier
27 GHz Quad-Core Processor
56 inch (1419mm) Quad HD+ Super AMOLED (2560 x 1440 + 160)
Android 44 (KitKat)
Rear Facing 16 Mega pixel Auto Focus camera with Smart OISFront Facing 37 Mega pixel camera with f19Rear Facing Camera HDR (Rich tone) Selective Focus Rear-cam Selfie Beauty face Virtual Tour Shot ShotampMore Dual CameraFront Facing Camera Selfie Wide Selfie
Codec H264 MPEG-4 H263 VC-1 WMV7 WMV8 Sorenson Spark MP43 VP8 Recording amp Playback up to UHD
Codec MP3 AACAAC+eAAC+ WMA AMR-NBWB Vorbis FLAC()() Ultra High Quality Audio (~192KHz 24 bit) support
Multi WindowUltra Power Saving ModeVoice Recorder (Normal Mode Interview Mode Meeting Mode Voice Memo)Download BoosterS Health 35Dynamic Lock ScreenBriefingEdge screen UX Revolving Interaction Immersive apps(Camera Video S Note)Ticker board Express me Quick Tools Night Clock etc
Chrome Drive Photos Gmail Google Google+ Google Settings Hangouts Maps Play Books Play Games Play Newsstand Play Movie amp TV Play Music Play Store Voice Search YouTube
WiFi 80211 abgnac (HT80) MIMO PCIeGPS GLONASS BeidouNFC Bluetoothreg v 41 (BLE ANT+)IR LED (Remote Control) USB20 MHL 30
Gesture Accelerometer Geo-magnetic Gyroscope RGB IR-LEDProximity Barometer Hall Sensor Finger Scanner UV Heart Rate Monitoring SpO2 (Dependent on market)
32 64 GB Internal memory + microSD slot (up to 128GB)3GB RAM
1513 x 824 x 83mm 174g
Standard battery Li-ion 3000 mAh Fast Charging (Adaptive Fast Charging amp QC20)
wwwthecfomecom66
APPSTECH TALK
AIR DISPLAY
SQUARE REGISTER
Using this app you can connect your iPad to your computer and use it as an additional screen While working on an important presentation or sales proposal you can extend or mirror your computer screen on your iPad This app is compatible with both Mac and Windows computers Note that to use this feature you have to install Air Display on your iPad and a separate free app on your computer The computer and iPad also need to be on the same Wi-Fi network in order to work in-sync
For Mac users the app allows you to connect to up to four screens ndash all at the same time
Apart from the ability to convert your iPad into a wireless display whatrsquos also attractive about this app is that it allows you to control your computer wirelessly using your iPad
This fantastic application can serve as a mobile point of sale for your business It allows you to accept credit card payments ndash including Visa MasterCard Discover and American Express A transaction fee of 275 is charged for every time you swipe a card The sale amount is transferred to your account within two working days
Once you download the app you can sign up and register for a unique card reader solution called the lsquoSquare Readerrsquo (this is free) Square Reader encrypts all card details and ensures that the transaction is secure Once you receive your Square Reader you can connect it to your device and are all set
The application also offers added features such as transaction history connecting to a receipt printer creating employee logins and more
AED 3699
PRICE
Free
PRICE
wwwthecfomecom 67
APPSTECH TALK
DOCUSIGNHave you ever been in a situation where your employees need you to urgently sign a contract but arenrsquot able to physically reach you in time DocuSign solves this problem with its easy-to-use eSignature feature In three easy steps you can sign important documents and securely send them to your intended recipient
First you have to import the document to your device ndash this could be from Dropbox Google Drive or another select applications You then place your signature or any other important legal information you need to include such as initials Once you have finished working on the document send it back via e-mail
Whatrsquos particularly great about DocuSign is the great emphasis it puts on security ndash so that users donrsquot have to worry about getting into any legal trouble
Use DocuSign and never miss a deadline again
Free for basic version
PRICE
MPAYAn initiative by the Dubai eGovernment Department mPay is a simple application that allows you to make important payments Once yoursquove signed up and entered your payment details you are good to go You can pay your Dubai Electricity and Water Authority (DEWA) bills Etisalat utility bills Dubai Police fines Recharge SALIK and much more
A handy feature is its lsquoauto-rechargersquo option which you can use to set automatic payments
Free
PRICE
Opinion CIMAPERSONALITIES
wwwthecfomecom68
NEW HORIZONSBy geetu Ahuja Head of gCC at CIMA
The days of the traditional accountant working within a small community in a small town in a small market have long gone CFOs are now being referred to as Chief Frontier Officers as they travel from market to market overseeing their offices overseas This new expanded role has distinct advantages for both the company and the CFO who gain new skills and new insights from foreign branches a single hand at the helm of many markets provides business perspectives on a global scale and benchmarks across the board
On a personal level working abroad also has huge importance Robert Walters the specialist professional recruitment consultancy recently conducted a survey
of almost 2200 employees across a variety of professions exploring a number of topics which ranged from working practices and attitudes to careers The results highlighted some notable trends particularly for finance professionals
In career progression for example the survey showed that 50 of all accountants see working abroad as either lsquoessentialrsquo or lsquoextremely usefulrsquo to furthering their prospects more than banking professionals lawyers and IT workers ndash a strong indication of how accounting professionals are thinking about their future either within their existing company or with opportunities elsewhere
Accountants with globally recognised qualifications obviously have a greater chance of gaining some experience abroad and the lsquoGen Yrsquo professionals in particular seem ready to pack their bags In a CIMA study conducted in the UK last year over a third of those seeking employment in the
next two years will prioritise opportunities abroad over those in their home countries many of them enticed by the career incentives offered by the Middle East
How quickly can they land what seems to be their dream job What are the realities It may be that the move is simply from one branch to another and the only significant difference is a view from the window but for those expanding rather than changing their roles we have seen a very real need for a depth and breadth of knowledge never needed before
As geographical boundaries are pushed ever-wider a CFOrsquos responsibilities are pushed with them For many finance executives the understanding of their own patch of land is no longer enough they now have to be aware of foreign markets up to speed with foreign trends and au fait with foreign laws There is a need for a new commercial awareness in geography as well as philosophy
As geographical boundaries are pushed ever-wider a CFOrsquos responsibilities are pushed with them
John vargheseQampA
wwwthecfomecom 69
BUSINESSSET UP YOUR
IN THE UNITED ARAB EMIRATES
TO
WAREHOUSESOFFICES INDUSTRIAL LANDFLEXI
Quick and easy company set-up
Less than an hour drive from Dubai
Complete cost-effective packages including licences and facilities
100 foreign ownership
Zero income and corporate taxes
Eligibility for UAE Residence Visa
BUSINESS SET-UP SOLUTIONS STARTING FROM AED 15000 (USD 4000)
RAK FREE TRADE ZONE PROVIDES
RAK Free Trade Zone Authority - Government of Ras Al KhaimahUAE (Ras Al Khaimah) Tel +971 7 2041111 (Dubai) Tel +971 4 7041875 (Abu Dhabi) Tel +971 2 6994888
Germany (Cologne) - Turkey (Istanbul) - India (Mumbai)
Call +971 7 204 1111 Visit wwwrakftzcom Join rakftz
44 wwwthecfomecom
work with companies to deliver cost-effective project execution services
Active shareholders whose money it is being spent will typically require a data-driven justification before approving any budgets capital expenditures or new acquisitions Furthermore in many private equity backed companies the use of debt and the matching of shorter-term bank financing with longer-term investments will only be considered after a robust analysis is conducted to understand the companyrsquos ability to service that debt in the future This evaluation is not simply to identify revenues expenses and profits Itrsquos about drilling down into every transaction and rooting out data processing and reporting At least that is the expectation
The most valuable CFOs are those who have the ability not just to scrutinise and understand the financials but all also possess a wider grasp of the underlying data which truly comprise the business As an investor who has just acquired a stake in a new business I want a CFO who can manage the transition and stay ahead of my expectations Most of all a CFO should impress upon the companyrsquos shareholders a new way of doing business The first 100 days of an acquisition are said to be the most important During this period the CFOrsquos worth will be established when the new financial plan is due and the platform for the next five years of growth is presented
A CFO should man-age the tran-sition stay ahead of expectations and impress upon the companyrsquos shareholders a new way of doing business
Investment Volume By Sector Since 2006
Investment Volume By Sector in 2013
Source Zawya private Equity Monitor
1
3
30
17
3
28
3
4
6
4
6
5
17
9
9
6
9
5
8
6
6
2
3
10
Education
Education
Information Technology
Information Technology
Other
Other
Telecoms
Telecoms
Media
Media
Transport
Transport
Oil amp Gas
Oil amp Gas
Healthcare
Healthcare
Consumer goods
Consumer goods
Food amp Beverages
Food amp Beverages
Leisure
Leisure
Manufacturing
Manufacturing
ANALyTICS
Private Equity
2000857 NBAD ratibi mag ad 200x268 Finalindd 1 92514 1017 AM
46 wwwthecfomecom
THE FUTURE OFACCOUNTING EDUCATIONAddRESSINg THECOMpETENCY CRISIS
Have you ever stopped to think about how the accounting profession has changed since you graduated from college Recent graduates can answer this question by reflecting on the last two or three years whereas for other more seasoned professionals answering this question requires a bit more thought and memory searching Indeed we can all think of ways that the field of accounting is remarkably different today from the one we likely envisioned during our college daysmdashregardless of which decade we each donned our cap and gown This gradual transformation of the accounting profession leads to two important questions related to competencies bull Which competencies are important for success inaccounting todaybull Were these competencies consciously developed as partof your accounting degree programme
We suspect that more than a few of you would answer ldquonordquo to the second question Put another way our profession may be facingmdashmore so than at any time in the pastmdasha ldquocompetency crisisrdquo that is a gap between the competencies needed for professional success and those taught in our college classrooms today We propose a three-pronged strategy or ldquogame planrdquo for overcoming this competency crisis and in turn better preparing accounting graduates for the challenging world they will face First all of us accountants need to understand the changes that have already taken place in our profession and perhaps more importantly anticipate the changes that are on the horizon Second we need to educate ourselves and future generations of accountants so that as a collective group we can deliver the expanding set of competencies demanded in todayrsquos dynamic organisational
contexts Third as professional organisations and as individuals we need to think beyond ourselves by asking How can I (or we) help the accounting profession address the competency crisis
A Shift Toward Integrated ThinkingMany articles and white papers have been written that describe in detail the changes that have occurred in our profession over the last few decades but for our purposes wersquod like to distill these changes down to one crucial idea How does the accounting function add value to an organisation Accountants have evolved from support-oriented personnel who hand off information to others who actually make decisions into business partners who ldquohave a seat at the tablerdquo with managers
By peter C Brewer James E Sorensen CpA CgMA and david E Stout
47wwwthecfomecom
1048576bull What regulatory risks mayaccompany the proposal
1048576bull What social and environmentalfactors will we face if for example the proposal requires investing in overseas operations
1048576bull What types of employeeresistance may arise if we implement the proposal and how will we overcome the root causes of any such resistance
1048576bull Can and how should we valuefuture options associated with the proposal such as expanding or contracting the investment over time as new information becomes available
1048576bull Should we use debt or equity tofund the proposal
In short accountants have evolved to become integrated thinkers who enable EPM by partnering with managers across the organisation to add value Yet as EPM has gradually become the centrepiece of our professionrsquos value proposition accounting education hasnrsquot done enough to embrace it To overcome this gap wersquod like to further suggest that the concepts of competency integration and EPM need to come ldquofront and centrerdquo as we move forward in educating the next generation of successful accounting practitioners
Accounting Education No Longer on the SidelinesRecently a task force consisting of members of IMAreg (Institute of Management Accountants) and members of the Management Accounting Section (MAS) of the American Accounting Association (AAA) addressed the competency issue How should accounting education change fundamentally to help close the competencies gap The efforts of the task force led to
cash flows and how to apply discounted cash flow (DCF) decision models such as net present value (NPV) is of foundationalmdashsome might say critical mdash importance But integrated thinkers draw on an understanding of organisational strategy coupled with a broader set of competencies (beyond what might be considered technical or foundational knowledge) when making these types of decisions For example they consider how behavioural issues may influence the capital investment decision-making process Perhaps the financial estimates contained in the NPV analysis are too optimistic because the manager who prepared the numbers has a vested interest in seeing the project approved Decision makers also need to consider issues such as leasing vs buying a capital asset and the corresponding impacts on the financial statements and ratios that are tracked by investors and lenders What nonfinancial factors are associated with the proposed investment Add in the tax consequences of capital investment decisions coupled with the need to maintain internal control over any new business processes tied to these decisions and the need to think in an integrated fashion across a variety of accounting competencies becomes apparent
Furthermore becoming a true business partner with managers across the organisation requires more than simply integrating various accounting competencies It also means thinking like a business manager or a chief executive officer (CEO) Returning to the capital budgeting example an integrated thinker will ask questions such as
across the organisation Together they formulate and plan strategies then participate in collaborative decision-making processes that execute those strategies in a manner that adds stakeholder value Said another way accountants have evolved to become enterprise performance managers This shift in our orientation from a support function to an enterprise performance management (EPM) role has enormous implications for defining the determinants of success within our profession the most important of which involves becoming collaborators and ldquointegrated thinkersrdquo Take for example a common but important business decision process capital investment analysis Certainly technical knowledge regarding how to estimate relevant after-tax
48 wwwthecfomecom
expanding capital budgeting discussions to include financial statement impacts tax consequences and internal control issues integrates topical coverage across the External Reporting and Analysis Taxation Compliance and Planning and Assurance and Internal Control competencies shown in Figure 1
Third accounting curricula can incorporate a broader set of management competencies For example evaluating capital investment proposals from the perspectives of change management (Leadership) social and environmental issues (Ethics and Social Responsibility) regulatory concerns (Governance Risk and Compliance) and capital structure (Additional Core Business Competencies) brings a CEOrsquos perspective to the decision-making process
Fourth accounting curricula should include foundational competencies such as proficiency with spreadsheets and written and oral communication In the context of capital budgeting this may include asking students to use Microsoft Excel to perform a sensitivity analysis and then to present their findings to the entire class
Working to Fix the ProblemAt this point although you may agree with us that therersquos a competency crisis within the accounting profession you may be wondering What does this have to do with me What can my organisation do to help address this so-called competency crisis The answer a lot Practice partners and academic partners can help the accounting profession overcome the competency crisis That said letrsquos take a closer look at the role of practice partners first
improvement) and accounting competencies (external reporting and analysis planning analysis and control taxation compliance and planning information systems assurance and internal control and professional values ethics and attitudes) Of critical importance to the framework is the assumption that the set of competencies contained in Figure 1 would be developed and integrated over time through a blend of formal education (including continuing education) training and job experience
What levels of integrationmdashon the road to developing integrated thinkers in accountingmdashare possible First accounting educators can integrate within a single accounting competency So referring back to our capital budgeting discussion teaching computational models such as NPV analysis coupled with a review of various behavioural issues associated with capital investment decisions would be an example of integrating within the Planning Analysis and Control competency listed in Figure 1
Second professors can integrate across accounting competencies For example
a recently published article that contains a proposed framework for accounting education reproduced here as Figure 1 The framework is general in the sense that itrsquos meant to apply to all accounting students not subgroups based on career specialisation such as tax assurance services corporate finance and the like Itrsquos based on the idea that accounting educators can better prepare students to deliver our professionrsquos EPM value proposition through integrated competency-oriented curricula (For more see ldquoFocusing Accounting Curricula on Studentsrsquo Long-Run Careers Recommendations for an Integrated Competency-Based Framework for Accounting Educationrdquo in the May 2014 edition of Issues in Accounting Education)
A glance at Figure 1 reveals three levels of competencies foundational competencies (communication ability to leverage technology and analytical thinking and problem solving among others) broad management competencies (including leadership ethics and social responsibility and process management and
Proposed Competencies-based Framework for Accounting Education
FOUNDATIONALCOMPETENCIES
ACCOUNTING COMPETENCIES
BROAD MANAGEMENT COMPETENCIES
leadership
ExternalReportingamp Analysis
PlanningAnalysis
amp Control
TaxationComplianceamp Planning
InformationSystems
Assuranceamp InternalControl
ProfessionalValues Ethics
amp Attitudes
Communication
Quantitative
Interpersonal
Technological
Analytical Thinking ampProblem Solving
Ethics amp SocialResponsibility
ProcessManagement ampImprovement
GovernanceRisk amp
Compliance
AdditionalCore BusinessCompetencies
Although you may agree with us that therersquos a competency crisis within the account-ing profes-sion you may bewondering What does this haveto do with me
A practice partner should be or become a CMAreg (Certified Management Accountant) maintain professional certification by completing required Continuing Professional Education (CPE) hours and regularly read the IMA publications Strategic Finance and Management Accounting Quarterly
In addition there are a number of excellent resources that deal with topics covered in this article and that IMA makes available to its members
Strategic Finance PowerPacks(wwwimanetorg SFPowerPacks) These are resources focused on contemporary topics similar to those discussed earlier Current offerings include Risk Management Strategic Planning IT Skills amp Software and Internal Controls Each PowerPack includes a combination of resources such as research studies articles and links to webinars
Statements on Management Accounting (SMAs)(wwwimanetorgresources and_publicationsresearch_ studies_resourcesstatements on_management_accounting aspx) SMAs represent monographs classified into one of the following six categories Leadership Strategies and Ethics Technology Enablement Strategic Cost Management Business Performance Management Finance Governance Risk and Compliance and the Practice of Management Accounting Multiple items are available within each category For example the Practice of Management Accounting category includes (among other items)
49wwwthecfomecom
the Definition of Management Accounting and Implementing Shared Service Centres
Research Studies (wwwimanetorgresources_and_publicationsResearch_Studies_and_ResourcesAll_reportsaspx) The ldquoThoughtLeadershiprdquo section of IMArsquos website includes research covering a broad range of issues classified into seven categories For example under the ldquoGlobal Business Environmentrdquo category the following two research reports are available ldquoKey Differences Between IFRS and US GAAP Impact on Financial Reportingrdquo and ldquoCosting Methodologies and Cost Management Practices in the Peoplersquos Republic of Chinardquo
IMA Leadership Academy (www imanetorgprograms_events leadership_academyaspx) As described on the IMA website this programme is designed to assess a memberrsquos leadership status enhance that individualrsquos skills (principally through monthly webinars) and recognise leadership achievements These benefits are free to members
How You Can Make a Bigger Impact In addition to attending local regional and national IMA meetings consider inviting a small group of students to each chapter meeting This could be a wonderful (and relatively low-cost) option for mentoring aspiring accountants and finance professionals providing networking opportunities and introducing students to cutting-edge issues regarding the practice of management accounting Joining a university accounting
advisory group may be another way to influence the development of EPM in that institutionrsquos curriculum design
Other methods to enhance EPM in your organisation include (1) forming user groups within your company your local IMA chapter or your industry to review and share EPM experiences (2) encouraging advancement in the firm to be linked to EPM proficiency (3) focusing your companyrsquos recruiting efforts on candidates who display a background in andor understanding of EPM and (4) organising cross training within your company to enhance a mutual understanding of each otherrsquos respective roles
Finally visit the Competency CrisisTM website (http competencycrisisorg) set up by IMA to unite the accounting and finance constituencies professionals students employers academics and professorsmdashand explore competency issues through the lens of each stakeholder group The site is designed to ldquoencourage a discourse spur action and create a community dedicated to resolving the serious crisis of competency present in the professionrdquo Special sections of the website are devoted to educators students and employers professionals
Our Partners in Education Much like a practice partner an academic partner should be or become a CMA maintain professional accreditation by completing CPE hours and regularly read IMArsquos publications
Academic members of IMA can pursue and actively promote the CMA programme at their respective institutions
50 wwwthecfomecom
IMArsquos website contains helpful resources including an exam content overview content specification outlines for each of the two parts of the CMA exam and learning outcome statements The current exam covers some of the professional competencies represented in Figure 1 A summary of changes to exam content which will be effective in January 2015 is provided on the IMA website in News amp Media Relations which is located under ldquoAbout IMArdquo (See the press release dated March 24 2014) Other helpful resources include ldquoICMA Announces CMA Exam Content Changesrdquo in the April 2014 issue of Strategic Finance as well as ldquoManagement Accounting Career Readiness Shaping YOUR Curriculumrdquo
These forthcoming changes are based on the most recent IMA study of the knowledge and skills needed by management accountants from the view of CFOs controllers and other accountingfinance professionals from around the world
Also consider taking a group of your students to the IMA Student Leadership Conference held each November The Conference provides excellent networking opportunities for you your students and practicing professionals Students can learn firsthand from Conference presenters the challenges and opportunities facing finance and accounting professionals today
Moreover if your institution doesnrsquot currently have an IMA Student Chapter consider forming one One of the authors of this article David Stout reinstituted the student chapter at his school (Youngstown State University) after travelling with a group of his students to the IMA
Student Leadership Conference in Cleveland Ohio Through an IMA Student Chapter on campus students are able to work closely with a sponsoring local IMA chapter and bring to campus speakers who are experts in a wide range of topics including those discussed earlier in this article Each year student chapters compete for an Award of Excellence (AOE) and recognition as an Outstanding Student Chapter In addition IMA student members are able to engage in networking activities leadership training mentoring and community service programmesmdashall through their local chapter
You also might consider volunteering to serve as a Campus Advocate In this role yoursquoll represent IMA in all major matters of interest to your students (scholarship opportunities starting a student chapter mentoring and the like) and to your institution (for example leveraging IMA resources to advance the relevancy of the accounting curriculum use of educational case studies published in the IMA Educational Case Journal and access to IMArsquos ethics curriculum)
And if you havenrsquot yet done this ask IMA to endorse your accounting programme (information is available at www imanetorgeducator_resources indexaspx) This programme is designed to identify business curricula that meet the quality educational standards required to prepare students to earn the CMA designation Endorsement is based on an analysis of the curriculum and topics covered on the two-part CMA exam Currently 12 programmes have been endorsed
Finally if your school has an IMA Student Chapter consider participating in the annual IMA Student Case Competition where students are asked to propose a solution to a real world problem (Cases are solicited each year by Raef Lawson IMA VP of Research and Policy and IMA Professor in-Residence) Finalists make their presentations at IMArsquos Annual Conference amp Exposition before a set of judges consisting of accounting faculty members and practitioners Each year a new case is published in the August issue of Strategic Finance for students to use for that yearrsquos competition
Working TogetherIn this article we have summarised the changes that have affected the accounting profession and provided a competencies-based framework for guiding accounting educators in responding productively to those changes As a management accountant you know that implementing change in any organisation let alone within an entire profession never comes easily To be successful in overcoming our professionrsquos competency crisis IMArsquos practice and academic partners will need to assume leadership roles in defining enterprise performance management as the cornerstone of the accounting professionrsquos value proposition
This article was orginally published in the August 2014 issue of Strategic Finance It appears here with the permission of The Association of Accountants and financial professionals in Business
We need to educate ourselvesand future generations of account-ants so that as a collec-tive group we can deliver theexpanding set of com-petenciesdemanded in todayrsquos dynamicorgani-sational contexts
THE POWERFUL AND THRIFTY OFFICE ALL-ROUNDERS
The new ECOSYS M3560idn series will astound you With their print speeds of up to 60 pages per minute they are among the most productive A4 bw multifunctionals on the market We nevertheless managed to keep their ecological footprint and total cost of ownership impressively low by using our well-known ECOSYS technology and equipping the devices with our renowned long-life components The result Not only less waste and lower maintenance costs but also less hassle for you and all your colleagues You will also greatly appreciate the many customisation possibilities of the devices equipped with KYOCERArsquos open solution platform HyPAStrade as it allows you to tailor the device to your needs So yes we are proud of our new range of MFPs and can hardly wait to share their numerous benefits with you
For more information please contactKYOCERA Document Solutions Middle East | PB Box 500817 DubaiUAE | Tel +9714 4330 412 | Fax +9714 4231 944KYOCERA Document Solutions Europe BV - wwwkyoceradocumentsolutionseuKYOCERA Document Solutions Inc - wwwkyoceradocumentsolutionscom
52
ACCAINTERVIEW
wwwthecfomecom
GLOBAL By ASSOCIATION
across the region from our key employers and learning provider partners to our active and growing student and member base I want to understand their challenges and priorities and how ACCA can work with them to help support the economic success of the region
What can a CFO gain from working with ACCAThe ACCA qualification is about complete finance professionals For CFOs it brings the technical knowledge vital to business success complemented with the strategic management skills and ethical competence crucial to an organisationrsquos success As an organization ACCA in the UAE brings CFOs access to that local and global network of peers and expertise along with our leading research and insights that help them to keep up to date on the issues that matter most
Are there any initiatives in place to leverage the recently announced partnership with AAA
How are the ACCArsquos many years of activity being applied to the Middle EastACCA has now had a presence in the UAE for well over a decade During that time we have established strong relationships across the Middle East epitomised by the recent signing of our Strategic Partnership with AAA As a national body in choosing to partner with ACCA they recognised the local and global perspective we bring We are continuing to work with students members and employers across the Middle East to build their networks knowledge and business success through events research and insights and access to a growing number of online resources
Which initial priorities are among your key aims upon joining the organisationrsquos efforts in the UAEIn the first few months I hope to build on the success of the team in the UAE My priority will be to meet as many of our key stakeholders
The Association for Chartered Certified Accountants (ACCA) provides its services across a number of international borders The recent announcement of Lindsay Degouve de Nuncques as the new head of the Associationrsquos UAE chapter further exemplifies the ACCArsquos reach based on her previous work in the UK Nuncques shares here what she brings to the Middle East and just how globalisation has driven her ascent
53
ACCAINTERVIEW
wwwthecfomecom
The strategic partnership with AAA is the first of its kind in the region Students who complete the UAECA qualification will be entitled to both the AAA and ACCA designations and ACCA members in the UAE will also be eligible to apply for AAA membership This is a very exciting development in the market and together AAA and ACCA will be working to deliver maximum value to all our stakeholders from this partnership As we launch the UAECA qualification this activity will start in earnest
Which key industries will you be spotlighting in the Middle East in the months aheadOur experience of working across all sectors and levels of organisations globally gives ACCA a unique insight into all types of industries We will continue to be working with employers across the spectrum in the months ahead to help them gain the insight and make the connections that drive businesses to succeed at whatever they do
ldquoThe ACCA qualification is about complete finance professionals For CFOs it brings the technical knowledge vital to business success complemented with the strategic management skillsrdquo
54
Islamic FinanceMARKET OUTLOOK
wwwthecfomecom
In its 10th instalment the Forum is hosted in Dubai as a direct result of the UAErsquos increasing importance in the world of global Islamic finance
THE WORLD ISLAmIC ECONOmIC FORUm LANDS IN DUBAI
In Dubairsquos continued quest for leading the world across a range of spectrums the Emirate accelerated its desire to become the worldrsquos leading hub for Islamic finance by hosting the 10th installment of the World Islamic Economic Forum (WIEF) Delegates from dozens of countries attended to take part in a three-day event held at Madinat Jumeirah which rests alongside Dubairsquos gleaming coastline Held under the patronage of His Highness Sheikh Mohammed Bin Rashid Al Maktoum the
Vice President and Prime Minister of the UAE and Ruler of Dubai key speakers included The Honorary Dr Zeti Akhtar Aziz Governor of the Central Bank of Malaysia HE Kairat Kelimbetov Governor of the National Bank of Kazakhstan The Honorary Datorsquo Sri Mohd Najib Tun Abdul Razal Prime Minister of Malaysia and HE Xavier Bettel Prime Minister of the Grand Duchy of Luxembourg
Launched in 2006 in Malaysia WIEF has grown in tandem with the increased
Delegates from dozens of countries attended WIEF to take part in the three-day event
sophistication and reach of Islamic finance After a successful event in London in 2013 amidst increased interest in Islamic finance across Europe WIEF relocated to Dubai where the local business structure is keen to host halal finance
Said Hamad Buamim President and CEO Dubai Chamber of Commerce and Industry co-organisers of the event ldquo[The forum] is the start of a new chapter of cooperation between Dubai and the world as part of
55
Islamic FinanceMARKET OUTLOOK
wwwthecfomecom
Dubai Capital of Islamic Economy visionhellipestablishing a unified regulatory authority to provide the framework for standards across halal industries will significantly accelerate growth Likewise we need to see increased cooperation and partnership between the public and private sectors This is already happening with great success here in Dubairdquo
The order of global cooperation needed to facilitate growth across the Islamic finance world was more than apparent at WIEF based on how many differing nations were represented at the event The exhibitorrsquos hall was populated with a number of key Malaysian stands representative of the Southeast Asianrsquos ranking as the global leader in Islamic finance Also present were companies from Saudi Arabia also a key locality in the worldrsquos halal industries An interesting yet prescient presence was of attendees from South Korea a nation which is eager to participate in Islamic finance and will be hosting the WIEF Pyeongchang Roundtable in December 2014
ldquoGangwon is a province located in Korea which is very interested in new business opportunities Wersquove realised the strength of the Islamic economy and have come here with many different companies The first type is based in real estate investment We also have companies which want to export their products to the Islamic economy based on their halal qualities And Gangwon will also be hosting the Winter
ldquoKorea is very interested in the strength of the Islamic economy and wants to export its products based on their halal qualitiesrdquo
56 wwwthecfomecom
$247trillionProjected value of halal products industry in lsquo18
125Muslim percentage of global tourism expenditure
STAT FACTSOlympics in 2018 and are presently seeking investments for this as wellrdquo said Seong-hun Kim a member of Gangwon Province Governmentrsquos Export Support Team
Dubai proved to be an excellent place for the event considering how well the UAE is able to so regularly corral international cooperation A key sign of this was witnessed recently when Luxembourg now considered the third most important base for Islamic finance globally opened a finance office in Dubai International Finance Centre The European nation also opened a euro200 sukuk earlier this year which was quickly oversubscribed
The prime minister of Luxembourg offered the WIEF audience a riveting speech which detailed just how international the Forum has become whilst encouraging more of the world to support the growing influence of Islamic finance
Said Bettel ldquoWe need to innovate more economic partnerships for growth We sometimes need to reengineer relationships but also have to make sure these relationships remain sustainable Growth in one country also brings growth to others as long as this is guided by free market initiatives Free trade and free flow of capital combined with innovation leads to prosperity We have all gathered here in Dubai to explore the future of Islamic finance and Luxembourg is also a pioneer of Islamic finance in Europe The Islamic financial sector has a major role to play in continued global growthrdquo
The Islamic Corporation for the Development of the Private Sector (ICD) is based in the Kingdom of Saudi Arabia where it manages an international fund worth $2 billion half of which is available for subscription With shareholders in more than 50 countries and a sovereign sukuk fund recently launched in West Africa the ICDrsquos CEO Khaled M Al Aboodi attended WIEF this year excited to participate in the global event
How does the ICD approach its attendance at the World Islamic Economic ForumI think the Forum is one of the best places for discussing the financial issues of the OEC member countries It has been around for ten years and has grown to become a very important platform for discussion Wersquore here to attend and listen but also to network Itrsquos a great networking platform and a place to share views whilst letting everyone know what we have to offer
How has Islamic finance changed over the yearsOf course itrsquos growing in a large scale Some of it actually needs more support particularly with respect to regulatory frameworks Wersquore trying to partner with many international organisations like the IMF to try to provide support to countries to adapt regulation for Islamic finance Sukuk issuance is one of the biggest issues that needs to be addressed because there is a huge amount of liquidity in this arena Due to issues related to regulation sukuk issuance can be costly But with the regulation we are confident it will be on a level playing field with other forms of finance Compliance is a major area where more work can be done The Forum started with a roundtable on sukuk which shows how helpful WIEF has been over the years
What type of work does ICD do internationallyICD helped the government of Senegal to issue the first sovereign sukuk This was successfully issued last summer Progressing in this manner is something wersquod like to see continue across West Africa in order to utilise its resources with aiding development in the region in mind
QampA WITH KHALED M AL ABOODI CEO OF ICD
Islamic FinanceMARKET OUTLOOK
OFFICIAL SPONSORS
ENDORSED BY OFFICIAL HOST OFFICIAL
COMMUNICATIONS PARTNER
MEYDAN HOTEL DUBAI UAE19 - 20 NOVEMBER 2014
WOMENOMICSthe next emerging market
TAKE PART in making change happen UNITE with business and through leaders from across the globe
PARTICIPATE to the expansion of a modern and inclusive economy
58
Gautam PradhanINTERVIEW
wwwthecfomecom
SUCCESS BEyOND BOUNDARIES
in other management roles such as strategic decision making mentoring and leading efficiency and productivity across a range of other departments and functions as well as a being a catalyst in ensuring that the boardrsquos vision for the organisation is achieved
A significant percentage of NMDCrsquos shares are owned publicly Does the CFO play a role in balancing the interests of the shareholdersAs a CFO balancing the shareholdersrsquo interests is definitely part of my responsibility In order to achieve this goal there needs to be a careful evaluation of each decision while keeping the short-term and long-term goals of the company in mind At NMDC we actively implement a system where we utilise a balance scorecard as a method of ensuring that all our primary objectives are met yet at the same time continuously enhance our relationships with our shareholders
NMDC has completed various projects across the Emirates Are there plans to move abroadAs NMDC moves towards becoming an international player our strategic expansion plans are focused in areas within the GCC region and India In line with this strategy we opened
How has a company with such a unique set of deliverables grown so consistently over the yearsOur organisation strongly believes that the core to our strength is the people process and equipment A strategic decision led by our Board of Directors and the senior management has been implemented that required us to consistently invest in these three aspects to help expand our business beyond the territorial boundaries of the UAE and at the same time enhance what we can offer which is relevant to these segments We attribute our success to the efforts which every employee contributes We also strongly believe in the ldquoWe can make it happenrdquo principle The management raises the index of performance while setting SMART objectives within the organisation and encouraging the employees to achieve them
How has your position as the CFO changed over NMDCrsquos 35 years of operationAs the market evolves and business dynamics change my role as the CFO has become complex and more challenging A few years back I was mainly focused on bookkeeping accounting and other financial responsibilities such as arranging bank facilities But moving forward I became more involved
The UAE is progressively becoming a hub for world-class infrastructure The country has duly impressed the rest of the globe with noteworthy land developments showcased across the emirates Among the remarkable landscapes found in Abu Dhabi are the Corniche Beach Yas Island and Sir Baniyas Island Behind these successful projects is NMDC the dredging division of Abu Dhabi National Oil Company (ADNOC)
In an interview with CFO Magazine Gautam Pradhan Chief Financial Officer NMDC shares an exclusive look into the companyrsquos international blueprint for growth and his dynamic role as a strategic leader of one of the best in dredging and marine construction in the Middle East
59
Gautam PradhanINTERVIEW
wwwthecfomecom
branches in Qatar Bahrain Oman and India This has paid rich dividends recently as projects of strategic importance are bagged in Qatar and Bahrain Furthermore NMDC (UAE) has recently played a key role as a leader of an international consortium with Royal Boskalis Westminister (Netherlands) and Jan De Nul Group (Belgium) for the awarding of the Suez Canal Dredging project in Egypt Moving forward we have devised a strategic approach that will enable us to play a key role in the development of Indiarsquos marine infrastructure
What are the global strategies that are part of the CFOrsquos responsibilitiesAs CFO understanding the macro economic scenario risk analysis and mitigating those risks are all a part of my responsibilities I also have to have a proper comprehension
ldquoA few years back I was mainly focused on financial responsibilities moving forward I became more involved in strategic decision making mentoring and leading productivityrdquo
Gautam PradhanINTERVIEW
60 wwwthecfomecom
of the challenges faced by the company in terms of dealing with foreign contracts direct and indirect taxes and hedging and managing the integration process These are essential to enhance shareholders wealth and mitigate undue risk
How significant is accountancy for NMDC in its operations Why exactlyAccountancy is the lifeline of any company it does not only record the finances it also reflects the health of the organisation The MIS reports analysis trends and statistical information go a long way toward effectively providing
the diagnostic approach essential for the company
How have NMDCrsquos environmental activities helped the companyrsquos bottom lineNMDCrsquos work is well-synchronised with our environmental activities and specifically with nature Our activities are closely linked to sand and water and we view such activities with strategic importance Projects such as increasing water supply to mangroves and beach nourishment help us support the environmental activities while adding to our bottom line
ldquoAccountancy is the lifeline of any company it does not only record the finances it also reflects the health of the organisationrdquo
A burgeoning slice of Abu Dhabi coastline
The largest business awards
in the GCC30th November Dubai
nominate now at wwwstarsofbusinessawardscom
Stars of Business has become an iconic awards brand like no other in the region It recognizes the very best SMEs across 26 business categories Itrsquos universally respected as scientifically assessed and unimpeachably judged
327000 SMEs across the UAE$234 billion estimated total revenue of the SME sector4974 Awards entries in 20131856 Individual company applicants
Presenting Partner Strategic SME Partner Gold Sponsor Gold Sponsor VIP Hospitality Partner Supporting Partner
Trade Facilitator PartnerTrade Credit PartnerLogistics Partner
Institutional Partner Institutional Partner Event Partner
OrganiserPublisherMedia Partner Media PartnerPort Authority Partner
62
David Allen INTERVIEW
wwwthecfomecom
What went into completing your bestseller ndash Getting Things Done (GTD)After twenty years of researching developing and implementing a methodology for achieving stress-free productivity based upon
thousands of hours spent desk-side with
some of the best brightest and busiest people in the world I decided to write the manual for it Thatrsquos what Getting Things Done is
What are the five phases of mastering workflowIn order to get
any situation under control so
you can focus you will utilise these five
steps Whether yoursquore managing your kitchen
or your company you will need to collect and capture what has your attention clarify what if anything to do about it organise it according to what it means to you review and reflect upon it in relation to
Todayrsquos evolving CFO is often caught between the world of business set-up generating revenue managing employees and building strong company infrastructure When can things actually get done What can one do to boost productivity and master workflow World-renowned business coach David Allen has the answers
PRODUCTIvITy PRINCIPLES WITH
DAvID ALLEN
63
David Allen INTERVIEW
wwwthecfomecom
those are greatly subvertedHow does one maintain a fair balance between the time spent planning and actually getting things doneYou simply need to spend just the amount of time you need to to trust that what you are getting done is the right thing to be getting done in the moment It takes as long as it takes to get to that point Why would you do anything less
How can one apply your core productivity and workflow principles to todayrsquos technologically driven environmentThe principles and their techniques are system-independent Whether you have meaningful input from the Internet your smartphone or a conversation in the hall you must engage with it equally Technology has simply increased the flow of input and ease of distraction in your world
There is a lot of talk about how connected wersquove become and how connectivity is driving tremendous business growth Does connectivity actually come with its fair share of downsides
Connectivity is obviously a two-edged sword We can have intimate productive and creative interaction instantly with someone on the other side of the world and we can just as easily be distracted and seduced into those engagements when they may not be the best use of our attention and resources Donrsquot shoot the medium Itrsquos all simply bringing attention to your clarity of direction and priorities or lack thereof
Could you share a few quick tips with our readers to instantly boost productivityWrite everything down that has your attention Decide the very next actions required to get closure on all of them Any next actions that require less than two minutes do instantly Park reminders of everything else somewhere that yoursquoll see when you can do something about them
We are currently facing a massive information overload What are some basic principles you could suggest to mentally organise such large amounts of dataConstantly ask yourself Where am I going Whatrsquos important and rewarding to me Is this information
the whole and then engage your resources with intuitive trust
As a CFO how can you transfer efficient workflow management skills to your employees Itrsquos very difficult to legislate processes for individuals ndash you can really only hold them accountable for their results But if you are managing your own commitments and intersections with them with integrity and rigour it will automatically force your team to ldquostep up to the platerdquo in their own behaviours in order to meet your standards If you request their complete list of their company projects and they canrsquot produce it thatrsquos a sign theyrsquore not in control If they make a commitment to you that they havenrsquot kept thatrsquos data about their performance GTD is simply about good operational business practices
With so many planning and organising activities in your methodology is there a risk of losing spontaneity as a strategistThe reason for these best practices is to optimise freedom creativity and spontaneity Without them
ldquoBut if you are manag-ing your own com-mitments and intersec-tions with them with integrity and rigour it will automatical-ly force them to ldquostep up to the platerdquo in their own behaviours in order to meet your standardsrdquo
64 wwwthecfomecom
supporting that Park whatever you find potentially meaningful somewhere that is easy to access when needed
Being an entrepreneur is a non-stop job How do you ensure that you have an adequate work-life balance Pay attention to what has your attentionmdashwith regard to anything Your health relationships career finances etc Notice when something might be ldquooffrdquo and make good decisions about what you need to do to get it back ldquoonrdquo again
Does your work teach people to be efficient or effective In essence they are the same thing Effective choices are generated by efficiency on a higher level If you want to implement strategy most effectively it demands utilising your resources optimally which is efficiency
Does motivation actually improve quality of work or purely quantityDepends on the focus of the motivation You can be motivated to work harder and you can be motivated to work smarter
What is your favourite productivity mantra that
you implement in your day-to-day lifeUsing my own in-basket and note-taking devices to capture potentially meaningful and valuable ideas and soon afterwards clearing all of them out by deciding what to do about them if anything
Your books seminars and other work inspires many individuals and businesses Who is your personal inspiration or role model I have many about many different aspects of my life The only person though that I ultimately trust as my best guide is my higher self which I try to access as frequently and clearly as I can
Finally what advice would you give to current business owners and aspiring entrepreneurs looking to gain complete control of their life and businessCapture what has your attention clarify what you need to do about it to get it off your mind organise the inventory of all your commitments at all levels review and reflect on all of that regularly relax and trust your inner wisdom to engage with the most appropriate thing in the moment
ldquoIf you want to implement strategy most effectively it demands utilising your resources optimallyrdquo
David Allen INTERVIEW
APPSTECH TALK
wwwthecfomecom 65
mAxImISE BUSINESS lsquoON-THE-GOrsquo WITH THESE HANDy APPS
ipAd SpECIAL
SAMSUNG UNvEILS GALAxY NOTE EDGE
Network
AP
Display
OS
Camera
Video
Audio
Additional Features
GoogleMobile Services
Connectivity
Sensor
Memory
Dimension
Battery
The availability of service may differ by country All functionality features specifications and other product information provided in this document including but not limited to the benefits design pricing components performance availability and capabilities of the product are subject to change without notice or obligation
Samsung Galaxy Note Edge Product Specifications
25G (GSM GPRS EDGE) 850 900 1800 1900 MHz3G (HSPA + 42Mbps) 850 900 1900 2100 MHz4G (LTE Cat 4 15050Mbps) or 4G(LTE Cat 6 30050Mbps)May differ by country and carrier
27 GHz Quad-Core Processor
56 inch (1419mm) Quad HD+ Super AMOLED (2560 x 1440 + 160)
Android 44 (KitKat)
Rear Facing 16 Mega pixel Auto Focus camera with Smart OISFront Facing 37 Mega pixel camera with f19Rear Facing Camera HDR (Rich tone) Selective Focus Rear-cam Selfie Beauty face Virtual Tour Shot ShotampMore Dual CameraFront Facing Camera Selfie Wide Selfie
Codec H264 MPEG-4 H263 VC-1 WMV7 WMV8 Sorenson Spark MP43 VP8 Recording amp Playback up to UHD
Codec MP3 AACAAC+eAAC+ WMA AMR-NBWB Vorbis FLAC()() Ultra High Quality Audio (~192KHz 24 bit) support
Multi WindowUltra Power Saving ModeVoice Recorder (Normal Mode Interview Mode Meeting Mode Voice Memo)Download BoosterS Health 35Dynamic Lock ScreenBriefingEdge screen UX Revolving Interaction Immersive apps(Camera Video S Note)Ticker board Express me Quick Tools Night Clock etc
Chrome Drive Photos Gmail Google Google+ Google Settings Hangouts Maps Play Books Play Games Play Newsstand Play Movie amp TV Play Music Play Store Voice Search YouTube
WiFi 80211 abgnac (HT80) MIMO PCIeGPS GLONASS BeidouNFC Bluetoothreg v 41 (BLE ANT+)IR LED (Remote Control) USB20 MHL 30
Gesture Accelerometer Geo-magnetic Gyroscope RGB IR-LEDProximity Barometer Hall Sensor Finger Scanner UV Heart Rate Monitoring SpO2 (Dependent on market)
32 64 GB Internal memory + microSD slot (up to 128GB)3GB RAM
1513 x 824 x 83mm 174g
Standard battery Li-ion 3000 mAh Fast Charging (Adaptive Fast Charging amp QC20)
wwwthecfomecom66
APPSTECH TALK
AIR DISPLAY
SQUARE REGISTER
Using this app you can connect your iPad to your computer and use it as an additional screen While working on an important presentation or sales proposal you can extend or mirror your computer screen on your iPad This app is compatible with both Mac and Windows computers Note that to use this feature you have to install Air Display on your iPad and a separate free app on your computer The computer and iPad also need to be on the same Wi-Fi network in order to work in-sync
For Mac users the app allows you to connect to up to four screens ndash all at the same time
Apart from the ability to convert your iPad into a wireless display whatrsquos also attractive about this app is that it allows you to control your computer wirelessly using your iPad
This fantastic application can serve as a mobile point of sale for your business It allows you to accept credit card payments ndash including Visa MasterCard Discover and American Express A transaction fee of 275 is charged for every time you swipe a card The sale amount is transferred to your account within two working days
Once you download the app you can sign up and register for a unique card reader solution called the lsquoSquare Readerrsquo (this is free) Square Reader encrypts all card details and ensures that the transaction is secure Once you receive your Square Reader you can connect it to your device and are all set
The application also offers added features such as transaction history connecting to a receipt printer creating employee logins and more
AED 3699
PRICE
Free
PRICE
wwwthecfomecom 67
APPSTECH TALK
DOCUSIGNHave you ever been in a situation where your employees need you to urgently sign a contract but arenrsquot able to physically reach you in time DocuSign solves this problem with its easy-to-use eSignature feature In three easy steps you can sign important documents and securely send them to your intended recipient
First you have to import the document to your device ndash this could be from Dropbox Google Drive or another select applications You then place your signature or any other important legal information you need to include such as initials Once you have finished working on the document send it back via e-mail
Whatrsquos particularly great about DocuSign is the great emphasis it puts on security ndash so that users donrsquot have to worry about getting into any legal trouble
Use DocuSign and never miss a deadline again
Free for basic version
PRICE
MPAYAn initiative by the Dubai eGovernment Department mPay is a simple application that allows you to make important payments Once yoursquove signed up and entered your payment details you are good to go You can pay your Dubai Electricity and Water Authority (DEWA) bills Etisalat utility bills Dubai Police fines Recharge SALIK and much more
A handy feature is its lsquoauto-rechargersquo option which you can use to set automatic payments
Free
PRICE
Opinion CIMAPERSONALITIES
wwwthecfomecom68
NEW HORIZONSBy geetu Ahuja Head of gCC at CIMA
The days of the traditional accountant working within a small community in a small town in a small market have long gone CFOs are now being referred to as Chief Frontier Officers as they travel from market to market overseeing their offices overseas This new expanded role has distinct advantages for both the company and the CFO who gain new skills and new insights from foreign branches a single hand at the helm of many markets provides business perspectives on a global scale and benchmarks across the board
On a personal level working abroad also has huge importance Robert Walters the specialist professional recruitment consultancy recently conducted a survey
of almost 2200 employees across a variety of professions exploring a number of topics which ranged from working practices and attitudes to careers The results highlighted some notable trends particularly for finance professionals
In career progression for example the survey showed that 50 of all accountants see working abroad as either lsquoessentialrsquo or lsquoextremely usefulrsquo to furthering their prospects more than banking professionals lawyers and IT workers ndash a strong indication of how accounting professionals are thinking about their future either within their existing company or with opportunities elsewhere
Accountants with globally recognised qualifications obviously have a greater chance of gaining some experience abroad and the lsquoGen Yrsquo professionals in particular seem ready to pack their bags In a CIMA study conducted in the UK last year over a third of those seeking employment in the
next two years will prioritise opportunities abroad over those in their home countries many of them enticed by the career incentives offered by the Middle East
How quickly can they land what seems to be their dream job What are the realities It may be that the move is simply from one branch to another and the only significant difference is a view from the window but for those expanding rather than changing their roles we have seen a very real need for a depth and breadth of knowledge never needed before
As geographical boundaries are pushed ever-wider a CFOrsquos responsibilities are pushed with them For many finance executives the understanding of their own patch of land is no longer enough they now have to be aware of foreign markets up to speed with foreign trends and au fait with foreign laws There is a need for a new commercial awareness in geography as well as philosophy
As geographical boundaries are pushed ever-wider a CFOrsquos responsibilities are pushed with them
John vargheseQampA
wwwthecfomecom 69
BUSINESSSET UP YOUR
IN THE UNITED ARAB EMIRATES
TO
WAREHOUSESOFFICES INDUSTRIAL LANDFLEXI
Quick and easy company set-up
Less than an hour drive from Dubai
Complete cost-effective packages including licences and facilities
100 foreign ownership
Zero income and corporate taxes
Eligibility for UAE Residence Visa
BUSINESS SET-UP SOLUTIONS STARTING FROM AED 15000 (USD 4000)
RAK FREE TRADE ZONE PROVIDES
RAK Free Trade Zone Authority - Government of Ras Al KhaimahUAE (Ras Al Khaimah) Tel +971 7 2041111 (Dubai) Tel +971 4 7041875 (Abu Dhabi) Tel +971 2 6994888
Germany (Cologne) - Turkey (Istanbul) - India (Mumbai)
Call +971 7 204 1111 Visit wwwrakftzcom Join rakftz
2000857 NBAD ratibi mag ad 200x268 Finalindd 1 92514 1017 AM
46 wwwthecfomecom
THE FUTURE OFACCOUNTING EDUCATIONAddRESSINg THECOMpETENCY CRISIS
Have you ever stopped to think about how the accounting profession has changed since you graduated from college Recent graduates can answer this question by reflecting on the last two or three years whereas for other more seasoned professionals answering this question requires a bit more thought and memory searching Indeed we can all think of ways that the field of accounting is remarkably different today from the one we likely envisioned during our college daysmdashregardless of which decade we each donned our cap and gown This gradual transformation of the accounting profession leads to two important questions related to competencies bull Which competencies are important for success inaccounting todaybull Were these competencies consciously developed as partof your accounting degree programme
We suspect that more than a few of you would answer ldquonordquo to the second question Put another way our profession may be facingmdashmore so than at any time in the pastmdasha ldquocompetency crisisrdquo that is a gap between the competencies needed for professional success and those taught in our college classrooms today We propose a three-pronged strategy or ldquogame planrdquo for overcoming this competency crisis and in turn better preparing accounting graduates for the challenging world they will face First all of us accountants need to understand the changes that have already taken place in our profession and perhaps more importantly anticipate the changes that are on the horizon Second we need to educate ourselves and future generations of accountants so that as a collective group we can deliver the expanding set of competencies demanded in todayrsquos dynamic organisational
contexts Third as professional organisations and as individuals we need to think beyond ourselves by asking How can I (or we) help the accounting profession address the competency crisis
A Shift Toward Integrated ThinkingMany articles and white papers have been written that describe in detail the changes that have occurred in our profession over the last few decades but for our purposes wersquod like to distill these changes down to one crucial idea How does the accounting function add value to an organisation Accountants have evolved from support-oriented personnel who hand off information to others who actually make decisions into business partners who ldquohave a seat at the tablerdquo with managers
By peter C Brewer James E Sorensen CpA CgMA and david E Stout
47wwwthecfomecom
1048576bull What regulatory risks mayaccompany the proposal
1048576bull What social and environmentalfactors will we face if for example the proposal requires investing in overseas operations
1048576bull What types of employeeresistance may arise if we implement the proposal and how will we overcome the root causes of any such resistance
1048576bull Can and how should we valuefuture options associated with the proposal such as expanding or contracting the investment over time as new information becomes available
1048576bull Should we use debt or equity tofund the proposal
In short accountants have evolved to become integrated thinkers who enable EPM by partnering with managers across the organisation to add value Yet as EPM has gradually become the centrepiece of our professionrsquos value proposition accounting education hasnrsquot done enough to embrace it To overcome this gap wersquod like to further suggest that the concepts of competency integration and EPM need to come ldquofront and centrerdquo as we move forward in educating the next generation of successful accounting practitioners
Accounting Education No Longer on the SidelinesRecently a task force consisting of members of IMAreg (Institute of Management Accountants) and members of the Management Accounting Section (MAS) of the American Accounting Association (AAA) addressed the competency issue How should accounting education change fundamentally to help close the competencies gap The efforts of the task force led to
cash flows and how to apply discounted cash flow (DCF) decision models such as net present value (NPV) is of foundationalmdashsome might say critical mdash importance But integrated thinkers draw on an understanding of organisational strategy coupled with a broader set of competencies (beyond what might be considered technical or foundational knowledge) when making these types of decisions For example they consider how behavioural issues may influence the capital investment decision-making process Perhaps the financial estimates contained in the NPV analysis are too optimistic because the manager who prepared the numbers has a vested interest in seeing the project approved Decision makers also need to consider issues such as leasing vs buying a capital asset and the corresponding impacts on the financial statements and ratios that are tracked by investors and lenders What nonfinancial factors are associated with the proposed investment Add in the tax consequences of capital investment decisions coupled with the need to maintain internal control over any new business processes tied to these decisions and the need to think in an integrated fashion across a variety of accounting competencies becomes apparent
Furthermore becoming a true business partner with managers across the organisation requires more than simply integrating various accounting competencies It also means thinking like a business manager or a chief executive officer (CEO) Returning to the capital budgeting example an integrated thinker will ask questions such as
across the organisation Together they formulate and plan strategies then participate in collaborative decision-making processes that execute those strategies in a manner that adds stakeholder value Said another way accountants have evolved to become enterprise performance managers This shift in our orientation from a support function to an enterprise performance management (EPM) role has enormous implications for defining the determinants of success within our profession the most important of which involves becoming collaborators and ldquointegrated thinkersrdquo Take for example a common but important business decision process capital investment analysis Certainly technical knowledge regarding how to estimate relevant after-tax
48 wwwthecfomecom
expanding capital budgeting discussions to include financial statement impacts tax consequences and internal control issues integrates topical coverage across the External Reporting and Analysis Taxation Compliance and Planning and Assurance and Internal Control competencies shown in Figure 1
Third accounting curricula can incorporate a broader set of management competencies For example evaluating capital investment proposals from the perspectives of change management (Leadership) social and environmental issues (Ethics and Social Responsibility) regulatory concerns (Governance Risk and Compliance) and capital structure (Additional Core Business Competencies) brings a CEOrsquos perspective to the decision-making process
Fourth accounting curricula should include foundational competencies such as proficiency with spreadsheets and written and oral communication In the context of capital budgeting this may include asking students to use Microsoft Excel to perform a sensitivity analysis and then to present their findings to the entire class
Working to Fix the ProblemAt this point although you may agree with us that therersquos a competency crisis within the accounting profession you may be wondering What does this have to do with me What can my organisation do to help address this so-called competency crisis The answer a lot Practice partners and academic partners can help the accounting profession overcome the competency crisis That said letrsquos take a closer look at the role of practice partners first
improvement) and accounting competencies (external reporting and analysis planning analysis and control taxation compliance and planning information systems assurance and internal control and professional values ethics and attitudes) Of critical importance to the framework is the assumption that the set of competencies contained in Figure 1 would be developed and integrated over time through a blend of formal education (including continuing education) training and job experience
What levels of integrationmdashon the road to developing integrated thinkers in accountingmdashare possible First accounting educators can integrate within a single accounting competency So referring back to our capital budgeting discussion teaching computational models such as NPV analysis coupled with a review of various behavioural issues associated with capital investment decisions would be an example of integrating within the Planning Analysis and Control competency listed in Figure 1
Second professors can integrate across accounting competencies For example
a recently published article that contains a proposed framework for accounting education reproduced here as Figure 1 The framework is general in the sense that itrsquos meant to apply to all accounting students not subgroups based on career specialisation such as tax assurance services corporate finance and the like Itrsquos based on the idea that accounting educators can better prepare students to deliver our professionrsquos EPM value proposition through integrated competency-oriented curricula (For more see ldquoFocusing Accounting Curricula on Studentsrsquo Long-Run Careers Recommendations for an Integrated Competency-Based Framework for Accounting Educationrdquo in the May 2014 edition of Issues in Accounting Education)
A glance at Figure 1 reveals three levels of competencies foundational competencies (communication ability to leverage technology and analytical thinking and problem solving among others) broad management competencies (including leadership ethics and social responsibility and process management and
Proposed Competencies-based Framework for Accounting Education
FOUNDATIONALCOMPETENCIES
ACCOUNTING COMPETENCIES
BROAD MANAGEMENT COMPETENCIES
leadership
ExternalReportingamp Analysis
PlanningAnalysis
amp Control
TaxationComplianceamp Planning
InformationSystems
Assuranceamp InternalControl
ProfessionalValues Ethics
amp Attitudes
Communication
Quantitative
Interpersonal
Technological
Analytical Thinking ampProblem Solving
Ethics amp SocialResponsibility
ProcessManagement ampImprovement
GovernanceRisk amp
Compliance
AdditionalCore BusinessCompetencies
Although you may agree with us that therersquos a competency crisis within the account-ing profes-sion you may bewondering What does this haveto do with me
A practice partner should be or become a CMAreg (Certified Management Accountant) maintain professional certification by completing required Continuing Professional Education (CPE) hours and regularly read the IMA publications Strategic Finance and Management Accounting Quarterly
In addition there are a number of excellent resources that deal with topics covered in this article and that IMA makes available to its members
Strategic Finance PowerPacks(wwwimanetorg SFPowerPacks) These are resources focused on contemporary topics similar to those discussed earlier Current offerings include Risk Management Strategic Planning IT Skills amp Software and Internal Controls Each PowerPack includes a combination of resources such as research studies articles and links to webinars
Statements on Management Accounting (SMAs)(wwwimanetorgresources and_publicationsresearch_ studies_resourcesstatements on_management_accounting aspx) SMAs represent monographs classified into one of the following six categories Leadership Strategies and Ethics Technology Enablement Strategic Cost Management Business Performance Management Finance Governance Risk and Compliance and the Practice of Management Accounting Multiple items are available within each category For example the Practice of Management Accounting category includes (among other items)
49wwwthecfomecom
the Definition of Management Accounting and Implementing Shared Service Centres
Research Studies (wwwimanetorgresources_and_publicationsResearch_Studies_and_ResourcesAll_reportsaspx) The ldquoThoughtLeadershiprdquo section of IMArsquos website includes research covering a broad range of issues classified into seven categories For example under the ldquoGlobal Business Environmentrdquo category the following two research reports are available ldquoKey Differences Between IFRS and US GAAP Impact on Financial Reportingrdquo and ldquoCosting Methodologies and Cost Management Practices in the Peoplersquos Republic of Chinardquo
IMA Leadership Academy (www imanetorgprograms_events leadership_academyaspx) As described on the IMA website this programme is designed to assess a memberrsquos leadership status enhance that individualrsquos skills (principally through monthly webinars) and recognise leadership achievements These benefits are free to members
How You Can Make a Bigger Impact In addition to attending local regional and national IMA meetings consider inviting a small group of students to each chapter meeting This could be a wonderful (and relatively low-cost) option for mentoring aspiring accountants and finance professionals providing networking opportunities and introducing students to cutting-edge issues regarding the practice of management accounting Joining a university accounting
advisory group may be another way to influence the development of EPM in that institutionrsquos curriculum design
Other methods to enhance EPM in your organisation include (1) forming user groups within your company your local IMA chapter or your industry to review and share EPM experiences (2) encouraging advancement in the firm to be linked to EPM proficiency (3) focusing your companyrsquos recruiting efforts on candidates who display a background in andor understanding of EPM and (4) organising cross training within your company to enhance a mutual understanding of each otherrsquos respective roles
Finally visit the Competency CrisisTM website (http competencycrisisorg) set up by IMA to unite the accounting and finance constituencies professionals students employers academics and professorsmdashand explore competency issues through the lens of each stakeholder group The site is designed to ldquoencourage a discourse spur action and create a community dedicated to resolving the serious crisis of competency present in the professionrdquo Special sections of the website are devoted to educators students and employers professionals
Our Partners in Education Much like a practice partner an academic partner should be or become a CMA maintain professional accreditation by completing CPE hours and regularly read IMArsquos publications
Academic members of IMA can pursue and actively promote the CMA programme at their respective institutions
50 wwwthecfomecom
IMArsquos website contains helpful resources including an exam content overview content specification outlines for each of the two parts of the CMA exam and learning outcome statements The current exam covers some of the professional competencies represented in Figure 1 A summary of changes to exam content which will be effective in January 2015 is provided on the IMA website in News amp Media Relations which is located under ldquoAbout IMArdquo (See the press release dated March 24 2014) Other helpful resources include ldquoICMA Announces CMA Exam Content Changesrdquo in the April 2014 issue of Strategic Finance as well as ldquoManagement Accounting Career Readiness Shaping YOUR Curriculumrdquo
These forthcoming changes are based on the most recent IMA study of the knowledge and skills needed by management accountants from the view of CFOs controllers and other accountingfinance professionals from around the world
Also consider taking a group of your students to the IMA Student Leadership Conference held each November The Conference provides excellent networking opportunities for you your students and practicing professionals Students can learn firsthand from Conference presenters the challenges and opportunities facing finance and accounting professionals today
Moreover if your institution doesnrsquot currently have an IMA Student Chapter consider forming one One of the authors of this article David Stout reinstituted the student chapter at his school (Youngstown State University) after travelling with a group of his students to the IMA
Student Leadership Conference in Cleveland Ohio Through an IMA Student Chapter on campus students are able to work closely with a sponsoring local IMA chapter and bring to campus speakers who are experts in a wide range of topics including those discussed earlier in this article Each year student chapters compete for an Award of Excellence (AOE) and recognition as an Outstanding Student Chapter In addition IMA student members are able to engage in networking activities leadership training mentoring and community service programmesmdashall through their local chapter
You also might consider volunteering to serve as a Campus Advocate In this role yoursquoll represent IMA in all major matters of interest to your students (scholarship opportunities starting a student chapter mentoring and the like) and to your institution (for example leveraging IMA resources to advance the relevancy of the accounting curriculum use of educational case studies published in the IMA Educational Case Journal and access to IMArsquos ethics curriculum)
And if you havenrsquot yet done this ask IMA to endorse your accounting programme (information is available at www imanetorgeducator_resources indexaspx) This programme is designed to identify business curricula that meet the quality educational standards required to prepare students to earn the CMA designation Endorsement is based on an analysis of the curriculum and topics covered on the two-part CMA exam Currently 12 programmes have been endorsed
Finally if your school has an IMA Student Chapter consider participating in the annual IMA Student Case Competition where students are asked to propose a solution to a real world problem (Cases are solicited each year by Raef Lawson IMA VP of Research and Policy and IMA Professor in-Residence) Finalists make their presentations at IMArsquos Annual Conference amp Exposition before a set of judges consisting of accounting faculty members and practitioners Each year a new case is published in the August issue of Strategic Finance for students to use for that yearrsquos competition
Working TogetherIn this article we have summarised the changes that have affected the accounting profession and provided a competencies-based framework for guiding accounting educators in responding productively to those changes As a management accountant you know that implementing change in any organisation let alone within an entire profession never comes easily To be successful in overcoming our professionrsquos competency crisis IMArsquos practice and academic partners will need to assume leadership roles in defining enterprise performance management as the cornerstone of the accounting professionrsquos value proposition
This article was orginally published in the August 2014 issue of Strategic Finance It appears here with the permission of The Association of Accountants and financial professionals in Business
We need to educate ourselvesand future generations of account-ants so that as a collec-tive group we can deliver theexpanding set of com-petenciesdemanded in todayrsquos dynamicorgani-sational contexts
THE POWERFUL AND THRIFTY OFFICE ALL-ROUNDERS
The new ECOSYS M3560idn series will astound you With their print speeds of up to 60 pages per minute they are among the most productive A4 bw multifunctionals on the market We nevertheless managed to keep their ecological footprint and total cost of ownership impressively low by using our well-known ECOSYS technology and equipping the devices with our renowned long-life components The result Not only less waste and lower maintenance costs but also less hassle for you and all your colleagues You will also greatly appreciate the many customisation possibilities of the devices equipped with KYOCERArsquos open solution platform HyPAStrade as it allows you to tailor the device to your needs So yes we are proud of our new range of MFPs and can hardly wait to share their numerous benefits with you
For more information please contactKYOCERA Document Solutions Middle East | PB Box 500817 DubaiUAE | Tel +9714 4330 412 | Fax +9714 4231 944KYOCERA Document Solutions Europe BV - wwwkyoceradocumentsolutionseuKYOCERA Document Solutions Inc - wwwkyoceradocumentsolutionscom
52
ACCAINTERVIEW
wwwthecfomecom
GLOBAL By ASSOCIATION
across the region from our key employers and learning provider partners to our active and growing student and member base I want to understand their challenges and priorities and how ACCA can work with them to help support the economic success of the region
What can a CFO gain from working with ACCAThe ACCA qualification is about complete finance professionals For CFOs it brings the technical knowledge vital to business success complemented with the strategic management skills and ethical competence crucial to an organisationrsquos success As an organization ACCA in the UAE brings CFOs access to that local and global network of peers and expertise along with our leading research and insights that help them to keep up to date on the issues that matter most
Are there any initiatives in place to leverage the recently announced partnership with AAA
How are the ACCArsquos many years of activity being applied to the Middle EastACCA has now had a presence in the UAE for well over a decade During that time we have established strong relationships across the Middle East epitomised by the recent signing of our Strategic Partnership with AAA As a national body in choosing to partner with ACCA they recognised the local and global perspective we bring We are continuing to work with students members and employers across the Middle East to build their networks knowledge and business success through events research and insights and access to a growing number of online resources
Which initial priorities are among your key aims upon joining the organisationrsquos efforts in the UAEIn the first few months I hope to build on the success of the team in the UAE My priority will be to meet as many of our key stakeholders
The Association for Chartered Certified Accountants (ACCA) provides its services across a number of international borders The recent announcement of Lindsay Degouve de Nuncques as the new head of the Associationrsquos UAE chapter further exemplifies the ACCArsquos reach based on her previous work in the UK Nuncques shares here what she brings to the Middle East and just how globalisation has driven her ascent
53
ACCAINTERVIEW
wwwthecfomecom
The strategic partnership with AAA is the first of its kind in the region Students who complete the UAECA qualification will be entitled to both the AAA and ACCA designations and ACCA members in the UAE will also be eligible to apply for AAA membership This is a very exciting development in the market and together AAA and ACCA will be working to deliver maximum value to all our stakeholders from this partnership As we launch the UAECA qualification this activity will start in earnest
Which key industries will you be spotlighting in the Middle East in the months aheadOur experience of working across all sectors and levels of organisations globally gives ACCA a unique insight into all types of industries We will continue to be working with employers across the spectrum in the months ahead to help them gain the insight and make the connections that drive businesses to succeed at whatever they do
ldquoThe ACCA qualification is about complete finance professionals For CFOs it brings the technical knowledge vital to business success complemented with the strategic management skillsrdquo
54
Islamic FinanceMARKET OUTLOOK
wwwthecfomecom
In its 10th instalment the Forum is hosted in Dubai as a direct result of the UAErsquos increasing importance in the world of global Islamic finance
THE WORLD ISLAmIC ECONOmIC FORUm LANDS IN DUBAI
In Dubairsquos continued quest for leading the world across a range of spectrums the Emirate accelerated its desire to become the worldrsquos leading hub for Islamic finance by hosting the 10th installment of the World Islamic Economic Forum (WIEF) Delegates from dozens of countries attended to take part in a three-day event held at Madinat Jumeirah which rests alongside Dubairsquos gleaming coastline Held under the patronage of His Highness Sheikh Mohammed Bin Rashid Al Maktoum the
Vice President and Prime Minister of the UAE and Ruler of Dubai key speakers included The Honorary Dr Zeti Akhtar Aziz Governor of the Central Bank of Malaysia HE Kairat Kelimbetov Governor of the National Bank of Kazakhstan The Honorary Datorsquo Sri Mohd Najib Tun Abdul Razal Prime Minister of Malaysia and HE Xavier Bettel Prime Minister of the Grand Duchy of Luxembourg
Launched in 2006 in Malaysia WIEF has grown in tandem with the increased
Delegates from dozens of countries attended WIEF to take part in the three-day event
sophistication and reach of Islamic finance After a successful event in London in 2013 amidst increased interest in Islamic finance across Europe WIEF relocated to Dubai where the local business structure is keen to host halal finance
Said Hamad Buamim President and CEO Dubai Chamber of Commerce and Industry co-organisers of the event ldquo[The forum] is the start of a new chapter of cooperation between Dubai and the world as part of
55
Islamic FinanceMARKET OUTLOOK
wwwthecfomecom
Dubai Capital of Islamic Economy visionhellipestablishing a unified regulatory authority to provide the framework for standards across halal industries will significantly accelerate growth Likewise we need to see increased cooperation and partnership between the public and private sectors This is already happening with great success here in Dubairdquo
The order of global cooperation needed to facilitate growth across the Islamic finance world was more than apparent at WIEF based on how many differing nations were represented at the event The exhibitorrsquos hall was populated with a number of key Malaysian stands representative of the Southeast Asianrsquos ranking as the global leader in Islamic finance Also present were companies from Saudi Arabia also a key locality in the worldrsquos halal industries An interesting yet prescient presence was of attendees from South Korea a nation which is eager to participate in Islamic finance and will be hosting the WIEF Pyeongchang Roundtable in December 2014
ldquoGangwon is a province located in Korea which is very interested in new business opportunities Wersquove realised the strength of the Islamic economy and have come here with many different companies The first type is based in real estate investment We also have companies which want to export their products to the Islamic economy based on their halal qualities And Gangwon will also be hosting the Winter
ldquoKorea is very interested in the strength of the Islamic economy and wants to export its products based on their halal qualitiesrdquo
56 wwwthecfomecom
$247trillionProjected value of halal products industry in lsquo18
125Muslim percentage of global tourism expenditure
STAT FACTSOlympics in 2018 and are presently seeking investments for this as wellrdquo said Seong-hun Kim a member of Gangwon Province Governmentrsquos Export Support Team
Dubai proved to be an excellent place for the event considering how well the UAE is able to so regularly corral international cooperation A key sign of this was witnessed recently when Luxembourg now considered the third most important base for Islamic finance globally opened a finance office in Dubai International Finance Centre The European nation also opened a euro200 sukuk earlier this year which was quickly oversubscribed
The prime minister of Luxembourg offered the WIEF audience a riveting speech which detailed just how international the Forum has become whilst encouraging more of the world to support the growing influence of Islamic finance
Said Bettel ldquoWe need to innovate more economic partnerships for growth We sometimes need to reengineer relationships but also have to make sure these relationships remain sustainable Growth in one country also brings growth to others as long as this is guided by free market initiatives Free trade and free flow of capital combined with innovation leads to prosperity We have all gathered here in Dubai to explore the future of Islamic finance and Luxembourg is also a pioneer of Islamic finance in Europe The Islamic financial sector has a major role to play in continued global growthrdquo
The Islamic Corporation for the Development of the Private Sector (ICD) is based in the Kingdom of Saudi Arabia where it manages an international fund worth $2 billion half of which is available for subscription With shareholders in more than 50 countries and a sovereign sukuk fund recently launched in West Africa the ICDrsquos CEO Khaled M Al Aboodi attended WIEF this year excited to participate in the global event
How does the ICD approach its attendance at the World Islamic Economic ForumI think the Forum is one of the best places for discussing the financial issues of the OEC member countries It has been around for ten years and has grown to become a very important platform for discussion Wersquore here to attend and listen but also to network Itrsquos a great networking platform and a place to share views whilst letting everyone know what we have to offer
How has Islamic finance changed over the yearsOf course itrsquos growing in a large scale Some of it actually needs more support particularly with respect to regulatory frameworks Wersquore trying to partner with many international organisations like the IMF to try to provide support to countries to adapt regulation for Islamic finance Sukuk issuance is one of the biggest issues that needs to be addressed because there is a huge amount of liquidity in this arena Due to issues related to regulation sukuk issuance can be costly But with the regulation we are confident it will be on a level playing field with other forms of finance Compliance is a major area where more work can be done The Forum started with a roundtable on sukuk which shows how helpful WIEF has been over the years
What type of work does ICD do internationallyICD helped the government of Senegal to issue the first sovereign sukuk This was successfully issued last summer Progressing in this manner is something wersquod like to see continue across West Africa in order to utilise its resources with aiding development in the region in mind
QampA WITH KHALED M AL ABOODI CEO OF ICD
Islamic FinanceMARKET OUTLOOK
OFFICIAL SPONSORS
ENDORSED BY OFFICIAL HOST OFFICIAL
COMMUNICATIONS PARTNER
MEYDAN HOTEL DUBAI UAE19 - 20 NOVEMBER 2014
WOMENOMICSthe next emerging market
TAKE PART in making change happen UNITE with business and through leaders from across the globe
PARTICIPATE to the expansion of a modern and inclusive economy
58
Gautam PradhanINTERVIEW
wwwthecfomecom
SUCCESS BEyOND BOUNDARIES
in other management roles such as strategic decision making mentoring and leading efficiency and productivity across a range of other departments and functions as well as a being a catalyst in ensuring that the boardrsquos vision for the organisation is achieved
A significant percentage of NMDCrsquos shares are owned publicly Does the CFO play a role in balancing the interests of the shareholdersAs a CFO balancing the shareholdersrsquo interests is definitely part of my responsibility In order to achieve this goal there needs to be a careful evaluation of each decision while keeping the short-term and long-term goals of the company in mind At NMDC we actively implement a system where we utilise a balance scorecard as a method of ensuring that all our primary objectives are met yet at the same time continuously enhance our relationships with our shareholders
NMDC has completed various projects across the Emirates Are there plans to move abroadAs NMDC moves towards becoming an international player our strategic expansion plans are focused in areas within the GCC region and India In line with this strategy we opened
How has a company with such a unique set of deliverables grown so consistently over the yearsOur organisation strongly believes that the core to our strength is the people process and equipment A strategic decision led by our Board of Directors and the senior management has been implemented that required us to consistently invest in these three aspects to help expand our business beyond the territorial boundaries of the UAE and at the same time enhance what we can offer which is relevant to these segments We attribute our success to the efforts which every employee contributes We also strongly believe in the ldquoWe can make it happenrdquo principle The management raises the index of performance while setting SMART objectives within the organisation and encouraging the employees to achieve them
How has your position as the CFO changed over NMDCrsquos 35 years of operationAs the market evolves and business dynamics change my role as the CFO has become complex and more challenging A few years back I was mainly focused on bookkeeping accounting and other financial responsibilities such as arranging bank facilities But moving forward I became more involved
The UAE is progressively becoming a hub for world-class infrastructure The country has duly impressed the rest of the globe with noteworthy land developments showcased across the emirates Among the remarkable landscapes found in Abu Dhabi are the Corniche Beach Yas Island and Sir Baniyas Island Behind these successful projects is NMDC the dredging division of Abu Dhabi National Oil Company (ADNOC)
In an interview with CFO Magazine Gautam Pradhan Chief Financial Officer NMDC shares an exclusive look into the companyrsquos international blueprint for growth and his dynamic role as a strategic leader of one of the best in dredging and marine construction in the Middle East
59
Gautam PradhanINTERVIEW
wwwthecfomecom
branches in Qatar Bahrain Oman and India This has paid rich dividends recently as projects of strategic importance are bagged in Qatar and Bahrain Furthermore NMDC (UAE) has recently played a key role as a leader of an international consortium with Royal Boskalis Westminister (Netherlands) and Jan De Nul Group (Belgium) for the awarding of the Suez Canal Dredging project in Egypt Moving forward we have devised a strategic approach that will enable us to play a key role in the development of Indiarsquos marine infrastructure
What are the global strategies that are part of the CFOrsquos responsibilitiesAs CFO understanding the macro economic scenario risk analysis and mitigating those risks are all a part of my responsibilities I also have to have a proper comprehension
ldquoA few years back I was mainly focused on financial responsibilities moving forward I became more involved in strategic decision making mentoring and leading productivityrdquo
Gautam PradhanINTERVIEW
60 wwwthecfomecom
of the challenges faced by the company in terms of dealing with foreign contracts direct and indirect taxes and hedging and managing the integration process These are essential to enhance shareholders wealth and mitigate undue risk
How significant is accountancy for NMDC in its operations Why exactlyAccountancy is the lifeline of any company it does not only record the finances it also reflects the health of the organisation The MIS reports analysis trends and statistical information go a long way toward effectively providing
the diagnostic approach essential for the company
How have NMDCrsquos environmental activities helped the companyrsquos bottom lineNMDCrsquos work is well-synchronised with our environmental activities and specifically with nature Our activities are closely linked to sand and water and we view such activities with strategic importance Projects such as increasing water supply to mangroves and beach nourishment help us support the environmental activities while adding to our bottom line
ldquoAccountancy is the lifeline of any company it does not only record the finances it also reflects the health of the organisationrdquo
A burgeoning slice of Abu Dhabi coastline
The largest business awards
in the GCC30th November Dubai
nominate now at wwwstarsofbusinessawardscom
Stars of Business has become an iconic awards brand like no other in the region It recognizes the very best SMEs across 26 business categories Itrsquos universally respected as scientifically assessed and unimpeachably judged
327000 SMEs across the UAE$234 billion estimated total revenue of the SME sector4974 Awards entries in 20131856 Individual company applicants
Presenting Partner Strategic SME Partner Gold Sponsor Gold Sponsor VIP Hospitality Partner Supporting Partner
Trade Facilitator PartnerTrade Credit PartnerLogistics Partner
Institutional Partner Institutional Partner Event Partner
OrganiserPublisherMedia Partner Media PartnerPort Authority Partner
62
David Allen INTERVIEW
wwwthecfomecom
What went into completing your bestseller ndash Getting Things Done (GTD)After twenty years of researching developing and implementing a methodology for achieving stress-free productivity based upon
thousands of hours spent desk-side with
some of the best brightest and busiest people in the world I decided to write the manual for it Thatrsquos what Getting Things Done is
What are the five phases of mastering workflowIn order to get
any situation under control so
you can focus you will utilise these five
steps Whether yoursquore managing your kitchen
or your company you will need to collect and capture what has your attention clarify what if anything to do about it organise it according to what it means to you review and reflect upon it in relation to
Todayrsquos evolving CFO is often caught between the world of business set-up generating revenue managing employees and building strong company infrastructure When can things actually get done What can one do to boost productivity and master workflow World-renowned business coach David Allen has the answers
PRODUCTIvITy PRINCIPLES WITH
DAvID ALLEN
63
David Allen INTERVIEW
wwwthecfomecom
those are greatly subvertedHow does one maintain a fair balance between the time spent planning and actually getting things doneYou simply need to spend just the amount of time you need to to trust that what you are getting done is the right thing to be getting done in the moment It takes as long as it takes to get to that point Why would you do anything less
How can one apply your core productivity and workflow principles to todayrsquos technologically driven environmentThe principles and their techniques are system-independent Whether you have meaningful input from the Internet your smartphone or a conversation in the hall you must engage with it equally Technology has simply increased the flow of input and ease of distraction in your world
There is a lot of talk about how connected wersquove become and how connectivity is driving tremendous business growth Does connectivity actually come with its fair share of downsides
Connectivity is obviously a two-edged sword We can have intimate productive and creative interaction instantly with someone on the other side of the world and we can just as easily be distracted and seduced into those engagements when they may not be the best use of our attention and resources Donrsquot shoot the medium Itrsquos all simply bringing attention to your clarity of direction and priorities or lack thereof
Could you share a few quick tips with our readers to instantly boost productivityWrite everything down that has your attention Decide the very next actions required to get closure on all of them Any next actions that require less than two minutes do instantly Park reminders of everything else somewhere that yoursquoll see when you can do something about them
We are currently facing a massive information overload What are some basic principles you could suggest to mentally organise such large amounts of dataConstantly ask yourself Where am I going Whatrsquos important and rewarding to me Is this information
the whole and then engage your resources with intuitive trust
As a CFO how can you transfer efficient workflow management skills to your employees Itrsquos very difficult to legislate processes for individuals ndash you can really only hold them accountable for their results But if you are managing your own commitments and intersections with them with integrity and rigour it will automatically force your team to ldquostep up to the platerdquo in their own behaviours in order to meet your standards If you request their complete list of their company projects and they canrsquot produce it thatrsquos a sign theyrsquore not in control If they make a commitment to you that they havenrsquot kept thatrsquos data about their performance GTD is simply about good operational business practices
With so many planning and organising activities in your methodology is there a risk of losing spontaneity as a strategistThe reason for these best practices is to optimise freedom creativity and spontaneity Without them
ldquoBut if you are manag-ing your own com-mitments and intersec-tions with them with integrity and rigour it will automatical-ly force them to ldquostep up to the platerdquo in their own behaviours in order to meet your standardsrdquo
64 wwwthecfomecom
supporting that Park whatever you find potentially meaningful somewhere that is easy to access when needed
Being an entrepreneur is a non-stop job How do you ensure that you have an adequate work-life balance Pay attention to what has your attentionmdashwith regard to anything Your health relationships career finances etc Notice when something might be ldquooffrdquo and make good decisions about what you need to do to get it back ldquoonrdquo again
Does your work teach people to be efficient or effective In essence they are the same thing Effective choices are generated by efficiency on a higher level If you want to implement strategy most effectively it demands utilising your resources optimally which is efficiency
Does motivation actually improve quality of work or purely quantityDepends on the focus of the motivation You can be motivated to work harder and you can be motivated to work smarter
What is your favourite productivity mantra that
you implement in your day-to-day lifeUsing my own in-basket and note-taking devices to capture potentially meaningful and valuable ideas and soon afterwards clearing all of them out by deciding what to do about them if anything
Your books seminars and other work inspires many individuals and businesses Who is your personal inspiration or role model I have many about many different aspects of my life The only person though that I ultimately trust as my best guide is my higher self which I try to access as frequently and clearly as I can
Finally what advice would you give to current business owners and aspiring entrepreneurs looking to gain complete control of their life and businessCapture what has your attention clarify what you need to do about it to get it off your mind organise the inventory of all your commitments at all levels review and reflect on all of that regularly relax and trust your inner wisdom to engage with the most appropriate thing in the moment
ldquoIf you want to implement strategy most effectively it demands utilising your resources optimallyrdquo
David Allen INTERVIEW
APPSTECH TALK
wwwthecfomecom 65
mAxImISE BUSINESS lsquoON-THE-GOrsquo WITH THESE HANDy APPS
ipAd SpECIAL
SAMSUNG UNvEILS GALAxY NOTE EDGE
Network
AP
Display
OS
Camera
Video
Audio
Additional Features
GoogleMobile Services
Connectivity
Sensor
Memory
Dimension
Battery
The availability of service may differ by country All functionality features specifications and other product information provided in this document including but not limited to the benefits design pricing components performance availability and capabilities of the product are subject to change without notice or obligation
Samsung Galaxy Note Edge Product Specifications
25G (GSM GPRS EDGE) 850 900 1800 1900 MHz3G (HSPA + 42Mbps) 850 900 1900 2100 MHz4G (LTE Cat 4 15050Mbps) or 4G(LTE Cat 6 30050Mbps)May differ by country and carrier
27 GHz Quad-Core Processor
56 inch (1419mm) Quad HD+ Super AMOLED (2560 x 1440 + 160)
Android 44 (KitKat)
Rear Facing 16 Mega pixel Auto Focus camera with Smart OISFront Facing 37 Mega pixel camera with f19Rear Facing Camera HDR (Rich tone) Selective Focus Rear-cam Selfie Beauty face Virtual Tour Shot ShotampMore Dual CameraFront Facing Camera Selfie Wide Selfie
Codec H264 MPEG-4 H263 VC-1 WMV7 WMV8 Sorenson Spark MP43 VP8 Recording amp Playback up to UHD
Codec MP3 AACAAC+eAAC+ WMA AMR-NBWB Vorbis FLAC()() Ultra High Quality Audio (~192KHz 24 bit) support
Multi WindowUltra Power Saving ModeVoice Recorder (Normal Mode Interview Mode Meeting Mode Voice Memo)Download BoosterS Health 35Dynamic Lock ScreenBriefingEdge screen UX Revolving Interaction Immersive apps(Camera Video S Note)Ticker board Express me Quick Tools Night Clock etc
Chrome Drive Photos Gmail Google Google+ Google Settings Hangouts Maps Play Books Play Games Play Newsstand Play Movie amp TV Play Music Play Store Voice Search YouTube
WiFi 80211 abgnac (HT80) MIMO PCIeGPS GLONASS BeidouNFC Bluetoothreg v 41 (BLE ANT+)IR LED (Remote Control) USB20 MHL 30
Gesture Accelerometer Geo-magnetic Gyroscope RGB IR-LEDProximity Barometer Hall Sensor Finger Scanner UV Heart Rate Monitoring SpO2 (Dependent on market)
32 64 GB Internal memory + microSD slot (up to 128GB)3GB RAM
1513 x 824 x 83mm 174g
Standard battery Li-ion 3000 mAh Fast Charging (Adaptive Fast Charging amp QC20)
wwwthecfomecom66
APPSTECH TALK
AIR DISPLAY
SQUARE REGISTER
Using this app you can connect your iPad to your computer and use it as an additional screen While working on an important presentation or sales proposal you can extend or mirror your computer screen on your iPad This app is compatible with both Mac and Windows computers Note that to use this feature you have to install Air Display on your iPad and a separate free app on your computer The computer and iPad also need to be on the same Wi-Fi network in order to work in-sync
For Mac users the app allows you to connect to up to four screens ndash all at the same time
Apart from the ability to convert your iPad into a wireless display whatrsquos also attractive about this app is that it allows you to control your computer wirelessly using your iPad
This fantastic application can serve as a mobile point of sale for your business It allows you to accept credit card payments ndash including Visa MasterCard Discover and American Express A transaction fee of 275 is charged for every time you swipe a card The sale amount is transferred to your account within two working days
Once you download the app you can sign up and register for a unique card reader solution called the lsquoSquare Readerrsquo (this is free) Square Reader encrypts all card details and ensures that the transaction is secure Once you receive your Square Reader you can connect it to your device and are all set
The application also offers added features such as transaction history connecting to a receipt printer creating employee logins and more
AED 3699
PRICE
Free
PRICE
wwwthecfomecom 67
APPSTECH TALK
DOCUSIGNHave you ever been in a situation where your employees need you to urgently sign a contract but arenrsquot able to physically reach you in time DocuSign solves this problem with its easy-to-use eSignature feature In three easy steps you can sign important documents and securely send them to your intended recipient
First you have to import the document to your device ndash this could be from Dropbox Google Drive or another select applications You then place your signature or any other important legal information you need to include such as initials Once you have finished working on the document send it back via e-mail
Whatrsquos particularly great about DocuSign is the great emphasis it puts on security ndash so that users donrsquot have to worry about getting into any legal trouble
Use DocuSign and never miss a deadline again
Free for basic version
PRICE
MPAYAn initiative by the Dubai eGovernment Department mPay is a simple application that allows you to make important payments Once yoursquove signed up and entered your payment details you are good to go You can pay your Dubai Electricity and Water Authority (DEWA) bills Etisalat utility bills Dubai Police fines Recharge SALIK and much more
A handy feature is its lsquoauto-rechargersquo option which you can use to set automatic payments
Free
PRICE
Opinion CIMAPERSONALITIES
wwwthecfomecom68
NEW HORIZONSBy geetu Ahuja Head of gCC at CIMA
The days of the traditional accountant working within a small community in a small town in a small market have long gone CFOs are now being referred to as Chief Frontier Officers as they travel from market to market overseeing their offices overseas This new expanded role has distinct advantages for both the company and the CFO who gain new skills and new insights from foreign branches a single hand at the helm of many markets provides business perspectives on a global scale and benchmarks across the board
On a personal level working abroad also has huge importance Robert Walters the specialist professional recruitment consultancy recently conducted a survey
of almost 2200 employees across a variety of professions exploring a number of topics which ranged from working practices and attitudes to careers The results highlighted some notable trends particularly for finance professionals
In career progression for example the survey showed that 50 of all accountants see working abroad as either lsquoessentialrsquo or lsquoextremely usefulrsquo to furthering their prospects more than banking professionals lawyers and IT workers ndash a strong indication of how accounting professionals are thinking about their future either within their existing company or with opportunities elsewhere
Accountants with globally recognised qualifications obviously have a greater chance of gaining some experience abroad and the lsquoGen Yrsquo professionals in particular seem ready to pack their bags In a CIMA study conducted in the UK last year over a third of those seeking employment in the
next two years will prioritise opportunities abroad over those in their home countries many of them enticed by the career incentives offered by the Middle East
How quickly can they land what seems to be their dream job What are the realities It may be that the move is simply from one branch to another and the only significant difference is a view from the window but for those expanding rather than changing their roles we have seen a very real need for a depth and breadth of knowledge never needed before
As geographical boundaries are pushed ever-wider a CFOrsquos responsibilities are pushed with them For many finance executives the understanding of their own patch of land is no longer enough they now have to be aware of foreign markets up to speed with foreign trends and au fait with foreign laws There is a need for a new commercial awareness in geography as well as philosophy
As geographical boundaries are pushed ever-wider a CFOrsquos responsibilities are pushed with them
John vargheseQampA
wwwthecfomecom 69
BUSINESSSET UP YOUR
IN THE UNITED ARAB EMIRATES
TO
WAREHOUSESOFFICES INDUSTRIAL LANDFLEXI
Quick and easy company set-up
Less than an hour drive from Dubai
Complete cost-effective packages including licences and facilities
100 foreign ownership
Zero income and corporate taxes
Eligibility for UAE Residence Visa
BUSINESS SET-UP SOLUTIONS STARTING FROM AED 15000 (USD 4000)
RAK FREE TRADE ZONE PROVIDES
RAK Free Trade Zone Authority - Government of Ras Al KhaimahUAE (Ras Al Khaimah) Tel +971 7 2041111 (Dubai) Tel +971 4 7041875 (Abu Dhabi) Tel +971 2 6994888
Germany (Cologne) - Turkey (Istanbul) - India (Mumbai)
Call +971 7 204 1111 Visit wwwrakftzcom Join rakftz
46 wwwthecfomecom
THE FUTURE OFACCOUNTING EDUCATIONAddRESSINg THECOMpETENCY CRISIS
Have you ever stopped to think about how the accounting profession has changed since you graduated from college Recent graduates can answer this question by reflecting on the last two or three years whereas for other more seasoned professionals answering this question requires a bit more thought and memory searching Indeed we can all think of ways that the field of accounting is remarkably different today from the one we likely envisioned during our college daysmdashregardless of which decade we each donned our cap and gown This gradual transformation of the accounting profession leads to two important questions related to competencies bull Which competencies are important for success inaccounting todaybull Were these competencies consciously developed as partof your accounting degree programme
We suspect that more than a few of you would answer ldquonordquo to the second question Put another way our profession may be facingmdashmore so than at any time in the pastmdasha ldquocompetency crisisrdquo that is a gap between the competencies needed for professional success and those taught in our college classrooms today We propose a three-pronged strategy or ldquogame planrdquo for overcoming this competency crisis and in turn better preparing accounting graduates for the challenging world they will face First all of us accountants need to understand the changes that have already taken place in our profession and perhaps more importantly anticipate the changes that are on the horizon Second we need to educate ourselves and future generations of accountants so that as a collective group we can deliver the expanding set of competencies demanded in todayrsquos dynamic organisational
contexts Third as professional organisations and as individuals we need to think beyond ourselves by asking How can I (or we) help the accounting profession address the competency crisis
A Shift Toward Integrated ThinkingMany articles and white papers have been written that describe in detail the changes that have occurred in our profession over the last few decades but for our purposes wersquod like to distill these changes down to one crucial idea How does the accounting function add value to an organisation Accountants have evolved from support-oriented personnel who hand off information to others who actually make decisions into business partners who ldquohave a seat at the tablerdquo with managers
By peter C Brewer James E Sorensen CpA CgMA and david E Stout
47wwwthecfomecom
1048576bull What regulatory risks mayaccompany the proposal
1048576bull What social and environmentalfactors will we face if for example the proposal requires investing in overseas operations
1048576bull What types of employeeresistance may arise if we implement the proposal and how will we overcome the root causes of any such resistance
1048576bull Can and how should we valuefuture options associated with the proposal such as expanding or contracting the investment over time as new information becomes available
1048576bull Should we use debt or equity tofund the proposal
In short accountants have evolved to become integrated thinkers who enable EPM by partnering with managers across the organisation to add value Yet as EPM has gradually become the centrepiece of our professionrsquos value proposition accounting education hasnrsquot done enough to embrace it To overcome this gap wersquod like to further suggest that the concepts of competency integration and EPM need to come ldquofront and centrerdquo as we move forward in educating the next generation of successful accounting practitioners
Accounting Education No Longer on the SidelinesRecently a task force consisting of members of IMAreg (Institute of Management Accountants) and members of the Management Accounting Section (MAS) of the American Accounting Association (AAA) addressed the competency issue How should accounting education change fundamentally to help close the competencies gap The efforts of the task force led to
cash flows and how to apply discounted cash flow (DCF) decision models such as net present value (NPV) is of foundationalmdashsome might say critical mdash importance But integrated thinkers draw on an understanding of organisational strategy coupled with a broader set of competencies (beyond what might be considered technical or foundational knowledge) when making these types of decisions For example they consider how behavioural issues may influence the capital investment decision-making process Perhaps the financial estimates contained in the NPV analysis are too optimistic because the manager who prepared the numbers has a vested interest in seeing the project approved Decision makers also need to consider issues such as leasing vs buying a capital asset and the corresponding impacts on the financial statements and ratios that are tracked by investors and lenders What nonfinancial factors are associated with the proposed investment Add in the tax consequences of capital investment decisions coupled with the need to maintain internal control over any new business processes tied to these decisions and the need to think in an integrated fashion across a variety of accounting competencies becomes apparent
Furthermore becoming a true business partner with managers across the organisation requires more than simply integrating various accounting competencies It also means thinking like a business manager or a chief executive officer (CEO) Returning to the capital budgeting example an integrated thinker will ask questions such as
across the organisation Together they formulate and plan strategies then participate in collaborative decision-making processes that execute those strategies in a manner that adds stakeholder value Said another way accountants have evolved to become enterprise performance managers This shift in our orientation from a support function to an enterprise performance management (EPM) role has enormous implications for defining the determinants of success within our profession the most important of which involves becoming collaborators and ldquointegrated thinkersrdquo Take for example a common but important business decision process capital investment analysis Certainly technical knowledge regarding how to estimate relevant after-tax
48 wwwthecfomecom
expanding capital budgeting discussions to include financial statement impacts tax consequences and internal control issues integrates topical coverage across the External Reporting and Analysis Taxation Compliance and Planning and Assurance and Internal Control competencies shown in Figure 1
Third accounting curricula can incorporate a broader set of management competencies For example evaluating capital investment proposals from the perspectives of change management (Leadership) social and environmental issues (Ethics and Social Responsibility) regulatory concerns (Governance Risk and Compliance) and capital structure (Additional Core Business Competencies) brings a CEOrsquos perspective to the decision-making process
Fourth accounting curricula should include foundational competencies such as proficiency with spreadsheets and written and oral communication In the context of capital budgeting this may include asking students to use Microsoft Excel to perform a sensitivity analysis and then to present their findings to the entire class
Working to Fix the ProblemAt this point although you may agree with us that therersquos a competency crisis within the accounting profession you may be wondering What does this have to do with me What can my organisation do to help address this so-called competency crisis The answer a lot Practice partners and academic partners can help the accounting profession overcome the competency crisis That said letrsquos take a closer look at the role of practice partners first
improvement) and accounting competencies (external reporting and analysis planning analysis and control taxation compliance and planning information systems assurance and internal control and professional values ethics and attitudes) Of critical importance to the framework is the assumption that the set of competencies contained in Figure 1 would be developed and integrated over time through a blend of formal education (including continuing education) training and job experience
What levels of integrationmdashon the road to developing integrated thinkers in accountingmdashare possible First accounting educators can integrate within a single accounting competency So referring back to our capital budgeting discussion teaching computational models such as NPV analysis coupled with a review of various behavioural issues associated with capital investment decisions would be an example of integrating within the Planning Analysis and Control competency listed in Figure 1
Second professors can integrate across accounting competencies For example
a recently published article that contains a proposed framework for accounting education reproduced here as Figure 1 The framework is general in the sense that itrsquos meant to apply to all accounting students not subgroups based on career specialisation such as tax assurance services corporate finance and the like Itrsquos based on the idea that accounting educators can better prepare students to deliver our professionrsquos EPM value proposition through integrated competency-oriented curricula (For more see ldquoFocusing Accounting Curricula on Studentsrsquo Long-Run Careers Recommendations for an Integrated Competency-Based Framework for Accounting Educationrdquo in the May 2014 edition of Issues in Accounting Education)
A glance at Figure 1 reveals three levels of competencies foundational competencies (communication ability to leverage technology and analytical thinking and problem solving among others) broad management competencies (including leadership ethics and social responsibility and process management and
Proposed Competencies-based Framework for Accounting Education
FOUNDATIONALCOMPETENCIES
ACCOUNTING COMPETENCIES
BROAD MANAGEMENT COMPETENCIES
leadership
ExternalReportingamp Analysis
PlanningAnalysis
amp Control
TaxationComplianceamp Planning
InformationSystems
Assuranceamp InternalControl
ProfessionalValues Ethics
amp Attitudes
Communication
Quantitative
Interpersonal
Technological
Analytical Thinking ampProblem Solving
Ethics amp SocialResponsibility
ProcessManagement ampImprovement
GovernanceRisk amp
Compliance
AdditionalCore BusinessCompetencies
Although you may agree with us that therersquos a competency crisis within the account-ing profes-sion you may bewondering What does this haveto do with me
A practice partner should be or become a CMAreg (Certified Management Accountant) maintain professional certification by completing required Continuing Professional Education (CPE) hours and regularly read the IMA publications Strategic Finance and Management Accounting Quarterly
In addition there are a number of excellent resources that deal with topics covered in this article and that IMA makes available to its members
Strategic Finance PowerPacks(wwwimanetorg SFPowerPacks) These are resources focused on contemporary topics similar to those discussed earlier Current offerings include Risk Management Strategic Planning IT Skills amp Software and Internal Controls Each PowerPack includes a combination of resources such as research studies articles and links to webinars
Statements on Management Accounting (SMAs)(wwwimanetorgresources and_publicationsresearch_ studies_resourcesstatements on_management_accounting aspx) SMAs represent monographs classified into one of the following six categories Leadership Strategies and Ethics Technology Enablement Strategic Cost Management Business Performance Management Finance Governance Risk and Compliance and the Practice of Management Accounting Multiple items are available within each category For example the Practice of Management Accounting category includes (among other items)
49wwwthecfomecom
the Definition of Management Accounting and Implementing Shared Service Centres
Research Studies (wwwimanetorgresources_and_publicationsResearch_Studies_and_ResourcesAll_reportsaspx) The ldquoThoughtLeadershiprdquo section of IMArsquos website includes research covering a broad range of issues classified into seven categories For example under the ldquoGlobal Business Environmentrdquo category the following two research reports are available ldquoKey Differences Between IFRS and US GAAP Impact on Financial Reportingrdquo and ldquoCosting Methodologies and Cost Management Practices in the Peoplersquos Republic of Chinardquo
IMA Leadership Academy (www imanetorgprograms_events leadership_academyaspx) As described on the IMA website this programme is designed to assess a memberrsquos leadership status enhance that individualrsquos skills (principally through monthly webinars) and recognise leadership achievements These benefits are free to members
How You Can Make a Bigger Impact In addition to attending local regional and national IMA meetings consider inviting a small group of students to each chapter meeting This could be a wonderful (and relatively low-cost) option for mentoring aspiring accountants and finance professionals providing networking opportunities and introducing students to cutting-edge issues regarding the practice of management accounting Joining a university accounting
advisory group may be another way to influence the development of EPM in that institutionrsquos curriculum design
Other methods to enhance EPM in your organisation include (1) forming user groups within your company your local IMA chapter or your industry to review and share EPM experiences (2) encouraging advancement in the firm to be linked to EPM proficiency (3) focusing your companyrsquos recruiting efforts on candidates who display a background in andor understanding of EPM and (4) organising cross training within your company to enhance a mutual understanding of each otherrsquos respective roles
Finally visit the Competency CrisisTM website (http competencycrisisorg) set up by IMA to unite the accounting and finance constituencies professionals students employers academics and professorsmdashand explore competency issues through the lens of each stakeholder group The site is designed to ldquoencourage a discourse spur action and create a community dedicated to resolving the serious crisis of competency present in the professionrdquo Special sections of the website are devoted to educators students and employers professionals
Our Partners in Education Much like a practice partner an academic partner should be or become a CMA maintain professional accreditation by completing CPE hours and regularly read IMArsquos publications
Academic members of IMA can pursue and actively promote the CMA programme at their respective institutions
50 wwwthecfomecom
IMArsquos website contains helpful resources including an exam content overview content specification outlines for each of the two parts of the CMA exam and learning outcome statements The current exam covers some of the professional competencies represented in Figure 1 A summary of changes to exam content which will be effective in January 2015 is provided on the IMA website in News amp Media Relations which is located under ldquoAbout IMArdquo (See the press release dated March 24 2014) Other helpful resources include ldquoICMA Announces CMA Exam Content Changesrdquo in the April 2014 issue of Strategic Finance as well as ldquoManagement Accounting Career Readiness Shaping YOUR Curriculumrdquo
These forthcoming changes are based on the most recent IMA study of the knowledge and skills needed by management accountants from the view of CFOs controllers and other accountingfinance professionals from around the world
Also consider taking a group of your students to the IMA Student Leadership Conference held each November The Conference provides excellent networking opportunities for you your students and practicing professionals Students can learn firsthand from Conference presenters the challenges and opportunities facing finance and accounting professionals today
Moreover if your institution doesnrsquot currently have an IMA Student Chapter consider forming one One of the authors of this article David Stout reinstituted the student chapter at his school (Youngstown State University) after travelling with a group of his students to the IMA
Student Leadership Conference in Cleveland Ohio Through an IMA Student Chapter on campus students are able to work closely with a sponsoring local IMA chapter and bring to campus speakers who are experts in a wide range of topics including those discussed earlier in this article Each year student chapters compete for an Award of Excellence (AOE) and recognition as an Outstanding Student Chapter In addition IMA student members are able to engage in networking activities leadership training mentoring and community service programmesmdashall through their local chapter
You also might consider volunteering to serve as a Campus Advocate In this role yoursquoll represent IMA in all major matters of interest to your students (scholarship opportunities starting a student chapter mentoring and the like) and to your institution (for example leveraging IMA resources to advance the relevancy of the accounting curriculum use of educational case studies published in the IMA Educational Case Journal and access to IMArsquos ethics curriculum)
And if you havenrsquot yet done this ask IMA to endorse your accounting programme (information is available at www imanetorgeducator_resources indexaspx) This programme is designed to identify business curricula that meet the quality educational standards required to prepare students to earn the CMA designation Endorsement is based on an analysis of the curriculum and topics covered on the two-part CMA exam Currently 12 programmes have been endorsed
Finally if your school has an IMA Student Chapter consider participating in the annual IMA Student Case Competition where students are asked to propose a solution to a real world problem (Cases are solicited each year by Raef Lawson IMA VP of Research and Policy and IMA Professor in-Residence) Finalists make their presentations at IMArsquos Annual Conference amp Exposition before a set of judges consisting of accounting faculty members and practitioners Each year a new case is published in the August issue of Strategic Finance for students to use for that yearrsquos competition
Working TogetherIn this article we have summarised the changes that have affected the accounting profession and provided a competencies-based framework for guiding accounting educators in responding productively to those changes As a management accountant you know that implementing change in any organisation let alone within an entire profession never comes easily To be successful in overcoming our professionrsquos competency crisis IMArsquos practice and academic partners will need to assume leadership roles in defining enterprise performance management as the cornerstone of the accounting professionrsquos value proposition
This article was orginally published in the August 2014 issue of Strategic Finance It appears here with the permission of The Association of Accountants and financial professionals in Business
We need to educate ourselvesand future generations of account-ants so that as a collec-tive group we can deliver theexpanding set of com-petenciesdemanded in todayrsquos dynamicorgani-sational contexts
THE POWERFUL AND THRIFTY OFFICE ALL-ROUNDERS
The new ECOSYS M3560idn series will astound you With their print speeds of up to 60 pages per minute they are among the most productive A4 bw multifunctionals on the market We nevertheless managed to keep their ecological footprint and total cost of ownership impressively low by using our well-known ECOSYS technology and equipping the devices with our renowned long-life components The result Not only less waste and lower maintenance costs but also less hassle for you and all your colleagues You will also greatly appreciate the many customisation possibilities of the devices equipped with KYOCERArsquos open solution platform HyPAStrade as it allows you to tailor the device to your needs So yes we are proud of our new range of MFPs and can hardly wait to share their numerous benefits with you
For more information please contactKYOCERA Document Solutions Middle East | PB Box 500817 DubaiUAE | Tel +9714 4330 412 | Fax +9714 4231 944KYOCERA Document Solutions Europe BV - wwwkyoceradocumentsolutionseuKYOCERA Document Solutions Inc - wwwkyoceradocumentsolutionscom
52
ACCAINTERVIEW
wwwthecfomecom
GLOBAL By ASSOCIATION
across the region from our key employers and learning provider partners to our active and growing student and member base I want to understand their challenges and priorities and how ACCA can work with them to help support the economic success of the region
What can a CFO gain from working with ACCAThe ACCA qualification is about complete finance professionals For CFOs it brings the technical knowledge vital to business success complemented with the strategic management skills and ethical competence crucial to an organisationrsquos success As an organization ACCA in the UAE brings CFOs access to that local and global network of peers and expertise along with our leading research and insights that help them to keep up to date on the issues that matter most
Are there any initiatives in place to leverage the recently announced partnership with AAA
How are the ACCArsquos many years of activity being applied to the Middle EastACCA has now had a presence in the UAE for well over a decade During that time we have established strong relationships across the Middle East epitomised by the recent signing of our Strategic Partnership with AAA As a national body in choosing to partner with ACCA they recognised the local and global perspective we bring We are continuing to work with students members and employers across the Middle East to build their networks knowledge and business success through events research and insights and access to a growing number of online resources
Which initial priorities are among your key aims upon joining the organisationrsquos efforts in the UAEIn the first few months I hope to build on the success of the team in the UAE My priority will be to meet as many of our key stakeholders
The Association for Chartered Certified Accountants (ACCA) provides its services across a number of international borders The recent announcement of Lindsay Degouve de Nuncques as the new head of the Associationrsquos UAE chapter further exemplifies the ACCArsquos reach based on her previous work in the UK Nuncques shares here what she brings to the Middle East and just how globalisation has driven her ascent
53
ACCAINTERVIEW
wwwthecfomecom
The strategic partnership with AAA is the first of its kind in the region Students who complete the UAECA qualification will be entitled to both the AAA and ACCA designations and ACCA members in the UAE will also be eligible to apply for AAA membership This is a very exciting development in the market and together AAA and ACCA will be working to deliver maximum value to all our stakeholders from this partnership As we launch the UAECA qualification this activity will start in earnest
Which key industries will you be spotlighting in the Middle East in the months aheadOur experience of working across all sectors and levels of organisations globally gives ACCA a unique insight into all types of industries We will continue to be working with employers across the spectrum in the months ahead to help them gain the insight and make the connections that drive businesses to succeed at whatever they do
ldquoThe ACCA qualification is about complete finance professionals For CFOs it brings the technical knowledge vital to business success complemented with the strategic management skillsrdquo
54
Islamic FinanceMARKET OUTLOOK
wwwthecfomecom
In its 10th instalment the Forum is hosted in Dubai as a direct result of the UAErsquos increasing importance in the world of global Islamic finance
THE WORLD ISLAmIC ECONOmIC FORUm LANDS IN DUBAI
In Dubairsquos continued quest for leading the world across a range of spectrums the Emirate accelerated its desire to become the worldrsquos leading hub for Islamic finance by hosting the 10th installment of the World Islamic Economic Forum (WIEF) Delegates from dozens of countries attended to take part in a three-day event held at Madinat Jumeirah which rests alongside Dubairsquos gleaming coastline Held under the patronage of His Highness Sheikh Mohammed Bin Rashid Al Maktoum the
Vice President and Prime Minister of the UAE and Ruler of Dubai key speakers included The Honorary Dr Zeti Akhtar Aziz Governor of the Central Bank of Malaysia HE Kairat Kelimbetov Governor of the National Bank of Kazakhstan The Honorary Datorsquo Sri Mohd Najib Tun Abdul Razal Prime Minister of Malaysia and HE Xavier Bettel Prime Minister of the Grand Duchy of Luxembourg
Launched in 2006 in Malaysia WIEF has grown in tandem with the increased
Delegates from dozens of countries attended WIEF to take part in the three-day event
sophistication and reach of Islamic finance After a successful event in London in 2013 amidst increased interest in Islamic finance across Europe WIEF relocated to Dubai where the local business structure is keen to host halal finance
Said Hamad Buamim President and CEO Dubai Chamber of Commerce and Industry co-organisers of the event ldquo[The forum] is the start of a new chapter of cooperation between Dubai and the world as part of
55
Islamic FinanceMARKET OUTLOOK
wwwthecfomecom
Dubai Capital of Islamic Economy visionhellipestablishing a unified regulatory authority to provide the framework for standards across halal industries will significantly accelerate growth Likewise we need to see increased cooperation and partnership between the public and private sectors This is already happening with great success here in Dubairdquo
The order of global cooperation needed to facilitate growth across the Islamic finance world was more than apparent at WIEF based on how many differing nations were represented at the event The exhibitorrsquos hall was populated with a number of key Malaysian stands representative of the Southeast Asianrsquos ranking as the global leader in Islamic finance Also present were companies from Saudi Arabia also a key locality in the worldrsquos halal industries An interesting yet prescient presence was of attendees from South Korea a nation which is eager to participate in Islamic finance and will be hosting the WIEF Pyeongchang Roundtable in December 2014
ldquoGangwon is a province located in Korea which is very interested in new business opportunities Wersquove realised the strength of the Islamic economy and have come here with many different companies The first type is based in real estate investment We also have companies which want to export their products to the Islamic economy based on their halal qualities And Gangwon will also be hosting the Winter
ldquoKorea is very interested in the strength of the Islamic economy and wants to export its products based on their halal qualitiesrdquo
56 wwwthecfomecom
$247trillionProjected value of halal products industry in lsquo18
125Muslim percentage of global tourism expenditure
STAT FACTSOlympics in 2018 and are presently seeking investments for this as wellrdquo said Seong-hun Kim a member of Gangwon Province Governmentrsquos Export Support Team
Dubai proved to be an excellent place for the event considering how well the UAE is able to so regularly corral international cooperation A key sign of this was witnessed recently when Luxembourg now considered the third most important base for Islamic finance globally opened a finance office in Dubai International Finance Centre The European nation also opened a euro200 sukuk earlier this year which was quickly oversubscribed
The prime minister of Luxembourg offered the WIEF audience a riveting speech which detailed just how international the Forum has become whilst encouraging more of the world to support the growing influence of Islamic finance
Said Bettel ldquoWe need to innovate more economic partnerships for growth We sometimes need to reengineer relationships but also have to make sure these relationships remain sustainable Growth in one country also brings growth to others as long as this is guided by free market initiatives Free trade and free flow of capital combined with innovation leads to prosperity We have all gathered here in Dubai to explore the future of Islamic finance and Luxembourg is also a pioneer of Islamic finance in Europe The Islamic financial sector has a major role to play in continued global growthrdquo
The Islamic Corporation for the Development of the Private Sector (ICD) is based in the Kingdom of Saudi Arabia where it manages an international fund worth $2 billion half of which is available for subscription With shareholders in more than 50 countries and a sovereign sukuk fund recently launched in West Africa the ICDrsquos CEO Khaled M Al Aboodi attended WIEF this year excited to participate in the global event
How does the ICD approach its attendance at the World Islamic Economic ForumI think the Forum is one of the best places for discussing the financial issues of the OEC member countries It has been around for ten years and has grown to become a very important platform for discussion Wersquore here to attend and listen but also to network Itrsquos a great networking platform and a place to share views whilst letting everyone know what we have to offer
How has Islamic finance changed over the yearsOf course itrsquos growing in a large scale Some of it actually needs more support particularly with respect to regulatory frameworks Wersquore trying to partner with many international organisations like the IMF to try to provide support to countries to adapt regulation for Islamic finance Sukuk issuance is one of the biggest issues that needs to be addressed because there is a huge amount of liquidity in this arena Due to issues related to regulation sukuk issuance can be costly But with the regulation we are confident it will be on a level playing field with other forms of finance Compliance is a major area where more work can be done The Forum started with a roundtable on sukuk which shows how helpful WIEF has been over the years
What type of work does ICD do internationallyICD helped the government of Senegal to issue the first sovereign sukuk This was successfully issued last summer Progressing in this manner is something wersquod like to see continue across West Africa in order to utilise its resources with aiding development in the region in mind
QampA WITH KHALED M AL ABOODI CEO OF ICD
Islamic FinanceMARKET OUTLOOK
OFFICIAL SPONSORS
ENDORSED BY OFFICIAL HOST OFFICIAL
COMMUNICATIONS PARTNER
MEYDAN HOTEL DUBAI UAE19 - 20 NOVEMBER 2014
WOMENOMICSthe next emerging market
TAKE PART in making change happen UNITE with business and through leaders from across the globe
PARTICIPATE to the expansion of a modern and inclusive economy
58
Gautam PradhanINTERVIEW
wwwthecfomecom
SUCCESS BEyOND BOUNDARIES
in other management roles such as strategic decision making mentoring and leading efficiency and productivity across a range of other departments and functions as well as a being a catalyst in ensuring that the boardrsquos vision for the organisation is achieved
A significant percentage of NMDCrsquos shares are owned publicly Does the CFO play a role in balancing the interests of the shareholdersAs a CFO balancing the shareholdersrsquo interests is definitely part of my responsibility In order to achieve this goal there needs to be a careful evaluation of each decision while keeping the short-term and long-term goals of the company in mind At NMDC we actively implement a system where we utilise a balance scorecard as a method of ensuring that all our primary objectives are met yet at the same time continuously enhance our relationships with our shareholders
NMDC has completed various projects across the Emirates Are there plans to move abroadAs NMDC moves towards becoming an international player our strategic expansion plans are focused in areas within the GCC region and India In line with this strategy we opened
How has a company with such a unique set of deliverables grown so consistently over the yearsOur organisation strongly believes that the core to our strength is the people process and equipment A strategic decision led by our Board of Directors and the senior management has been implemented that required us to consistently invest in these three aspects to help expand our business beyond the territorial boundaries of the UAE and at the same time enhance what we can offer which is relevant to these segments We attribute our success to the efforts which every employee contributes We also strongly believe in the ldquoWe can make it happenrdquo principle The management raises the index of performance while setting SMART objectives within the organisation and encouraging the employees to achieve them
How has your position as the CFO changed over NMDCrsquos 35 years of operationAs the market evolves and business dynamics change my role as the CFO has become complex and more challenging A few years back I was mainly focused on bookkeeping accounting and other financial responsibilities such as arranging bank facilities But moving forward I became more involved
The UAE is progressively becoming a hub for world-class infrastructure The country has duly impressed the rest of the globe with noteworthy land developments showcased across the emirates Among the remarkable landscapes found in Abu Dhabi are the Corniche Beach Yas Island and Sir Baniyas Island Behind these successful projects is NMDC the dredging division of Abu Dhabi National Oil Company (ADNOC)
In an interview with CFO Magazine Gautam Pradhan Chief Financial Officer NMDC shares an exclusive look into the companyrsquos international blueprint for growth and his dynamic role as a strategic leader of one of the best in dredging and marine construction in the Middle East
59
Gautam PradhanINTERVIEW
wwwthecfomecom
branches in Qatar Bahrain Oman and India This has paid rich dividends recently as projects of strategic importance are bagged in Qatar and Bahrain Furthermore NMDC (UAE) has recently played a key role as a leader of an international consortium with Royal Boskalis Westminister (Netherlands) and Jan De Nul Group (Belgium) for the awarding of the Suez Canal Dredging project in Egypt Moving forward we have devised a strategic approach that will enable us to play a key role in the development of Indiarsquos marine infrastructure
What are the global strategies that are part of the CFOrsquos responsibilitiesAs CFO understanding the macro economic scenario risk analysis and mitigating those risks are all a part of my responsibilities I also have to have a proper comprehension
ldquoA few years back I was mainly focused on financial responsibilities moving forward I became more involved in strategic decision making mentoring and leading productivityrdquo
Gautam PradhanINTERVIEW
60 wwwthecfomecom
of the challenges faced by the company in terms of dealing with foreign contracts direct and indirect taxes and hedging and managing the integration process These are essential to enhance shareholders wealth and mitigate undue risk
How significant is accountancy for NMDC in its operations Why exactlyAccountancy is the lifeline of any company it does not only record the finances it also reflects the health of the organisation The MIS reports analysis trends and statistical information go a long way toward effectively providing
the diagnostic approach essential for the company
How have NMDCrsquos environmental activities helped the companyrsquos bottom lineNMDCrsquos work is well-synchronised with our environmental activities and specifically with nature Our activities are closely linked to sand and water and we view such activities with strategic importance Projects such as increasing water supply to mangroves and beach nourishment help us support the environmental activities while adding to our bottom line
ldquoAccountancy is the lifeline of any company it does not only record the finances it also reflects the health of the organisationrdquo
A burgeoning slice of Abu Dhabi coastline
The largest business awards
in the GCC30th November Dubai
nominate now at wwwstarsofbusinessawardscom
Stars of Business has become an iconic awards brand like no other in the region It recognizes the very best SMEs across 26 business categories Itrsquos universally respected as scientifically assessed and unimpeachably judged
327000 SMEs across the UAE$234 billion estimated total revenue of the SME sector4974 Awards entries in 20131856 Individual company applicants
Presenting Partner Strategic SME Partner Gold Sponsor Gold Sponsor VIP Hospitality Partner Supporting Partner
Trade Facilitator PartnerTrade Credit PartnerLogistics Partner
Institutional Partner Institutional Partner Event Partner
OrganiserPublisherMedia Partner Media PartnerPort Authority Partner
62
David Allen INTERVIEW
wwwthecfomecom
What went into completing your bestseller ndash Getting Things Done (GTD)After twenty years of researching developing and implementing a methodology for achieving stress-free productivity based upon
thousands of hours spent desk-side with
some of the best brightest and busiest people in the world I decided to write the manual for it Thatrsquos what Getting Things Done is
What are the five phases of mastering workflowIn order to get
any situation under control so
you can focus you will utilise these five
steps Whether yoursquore managing your kitchen
or your company you will need to collect and capture what has your attention clarify what if anything to do about it organise it according to what it means to you review and reflect upon it in relation to
Todayrsquos evolving CFO is often caught between the world of business set-up generating revenue managing employees and building strong company infrastructure When can things actually get done What can one do to boost productivity and master workflow World-renowned business coach David Allen has the answers
PRODUCTIvITy PRINCIPLES WITH
DAvID ALLEN
63
David Allen INTERVIEW
wwwthecfomecom
those are greatly subvertedHow does one maintain a fair balance between the time spent planning and actually getting things doneYou simply need to spend just the amount of time you need to to trust that what you are getting done is the right thing to be getting done in the moment It takes as long as it takes to get to that point Why would you do anything less
How can one apply your core productivity and workflow principles to todayrsquos technologically driven environmentThe principles and their techniques are system-independent Whether you have meaningful input from the Internet your smartphone or a conversation in the hall you must engage with it equally Technology has simply increased the flow of input and ease of distraction in your world
There is a lot of talk about how connected wersquove become and how connectivity is driving tremendous business growth Does connectivity actually come with its fair share of downsides
Connectivity is obviously a two-edged sword We can have intimate productive and creative interaction instantly with someone on the other side of the world and we can just as easily be distracted and seduced into those engagements when they may not be the best use of our attention and resources Donrsquot shoot the medium Itrsquos all simply bringing attention to your clarity of direction and priorities or lack thereof
Could you share a few quick tips with our readers to instantly boost productivityWrite everything down that has your attention Decide the very next actions required to get closure on all of them Any next actions that require less than two minutes do instantly Park reminders of everything else somewhere that yoursquoll see when you can do something about them
We are currently facing a massive information overload What are some basic principles you could suggest to mentally organise such large amounts of dataConstantly ask yourself Where am I going Whatrsquos important and rewarding to me Is this information
the whole and then engage your resources with intuitive trust
As a CFO how can you transfer efficient workflow management skills to your employees Itrsquos very difficult to legislate processes for individuals ndash you can really only hold them accountable for their results But if you are managing your own commitments and intersections with them with integrity and rigour it will automatically force your team to ldquostep up to the platerdquo in their own behaviours in order to meet your standards If you request their complete list of their company projects and they canrsquot produce it thatrsquos a sign theyrsquore not in control If they make a commitment to you that they havenrsquot kept thatrsquos data about their performance GTD is simply about good operational business practices
With so many planning and organising activities in your methodology is there a risk of losing spontaneity as a strategistThe reason for these best practices is to optimise freedom creativity and spontaneity Without them
ldquoBut if you are manag-ing your own com-mitments and intersec-tions with them with integrity and rigour it will automatical-ly force them to ldquostep up to the platerdquo in their own behaviours in order to meet your standardsrdquo
64 wwwthecfomecom
supporting that Park whatever you find potentially meaningful somewhere that is easy to access when needed
Being an entrepreneur is a non-stop job How do you ensure that you have an adequate work-life balance Pay attention to what has your attentionmdashwith regard to anything Your health relationships career finances etc Notice when something might be ldquooffrdquo and make good decisions about what you need to do to get it back ldquoonrdquo again
Does your work teach people to be efficient or effective In essence they are the same thing Effective choices are generated by efficiency on a higher level If you want to implement strategy most effectively it demands utilising your resources optimally which is efficiency
Does motivation actually improve quality of work or purely quantityDepends on the focus of the motivation You can be motivated to work harder and you can be motivated to work smarter
What is your favourite productivity mantra that
you implement in your day-to-day lifeUsing my own in-basket and note-taking devices to capture potentially meaningful and valuable ideas and soon afterwards clearing all of them out by deciding what to do about them if anything
Your books seminars and other work inspires many individuals and businesses Who is your personal inspiration or role model I have many about many different aspects of my life The only person though that I ultimately trust as my best guide is my higher self which I try to access as frequently and clearly as I can
Finally what advice would you give to current business owners and aspiring entrepreneurs looking to gain complete control of their life and businessCapture what has your attention clarify what you need to do about it to get it off your mind organise the inventory of all your commitments at all levels review and reflect on all of that regularly relax and trust your inner wisdom to engage with the most appropriate thing in the moment
ldquoIf you want to implement strategy most effectively it demands utilising your resources optimallyrdquo
David Allen INTERVIEW
APPSTECH TALK
wwwthecfomecom 65
mAxImISE BUSINESS lsquoON-THE-GOrsquo WITH THESE HANDy APPS
ipAd SpECIAL
SAMSUNG UNvEILS GALAxY NOTE EDGE
Network
AP
Display
OS
Camera
Video
Audio
Additional Features
GoogleMobile Services
Connectivity
Sensor
Memory
Dimension
Battery
The availability of service may differ by country All functionality features specifications and other product information provided in this document including but not limited to the benefits design pricing components performance availability and capabilities of the product are subject to change without notice or obligation
Samsung Galaxy Note Edge Product Specifications
25G (GSM GPRS EDGE) 850 900 1800 1900 MHz3G (HSPA + 42Mbps) 850 900 1900 2100 MHz4G (LTE Cat 4 15050Mbps) or 4G(LTE Cat 6 30050Mbps)May differ by country and carrier
27 GHz Quad-Core Processor
56 inch (1419mm) Quad HD+ Super AMOLED (2560 x 1440 + 160)
Android 44 (KitKat)
Rear Facing 16 Mega pixel Auto Focus camera with Smart OISFront Facing 37 Mega pixel camera with f19Rear Facing Camera HDR (Rich tone) Selective Focus Rear-cam Selfie Beauty face Virtual Tour Shot ShotampMore Dual CameraFront Facing Camera Selfie Wide Selfie
Codec H264 MPEG-4 H263 VC-1 WMV7 WMV8 Sorenson Spark MP43 VP8 Recording amp Playback up to UHD
Codec MP3 AACAAC+eAAC+ WMA AMR-NBWB Vorbis FLAC()() Ultra High Quality Audio (~192KHz 24 bit) support
Multi WindowUltra Power Saving ModeVoice Recorder (Normal Mode Interview Mode Meeting Mode Voice Memo)Download BoosterS Health 35Dynamic Lock ScreenBriefingEdge screen UX Revolving Interaction Immersive apps(Camera Video S Note)Ticker board Express me Quick Tools Night Clock etc
Chrome Drive Photos Gmail Google Google+ Google Settings Hangouts Maps Play Books Play Games Play Newsstand Play Movie amp TV Play Music Play Store Voice Search YouTube
WiFi 80211 abgnac (HT80) MIMO PCIeGPS GLONASS BeidouNFC Bluetoothreg v 41 (BLE ANT+)IR LED (Remote Control) USB20 MHL 30
Gesture Accelerometer Geo-magnetic Gyroscope RGB IR-LEDProximity Barometer Hall Sensor Finger Scanner UV Heart Rate Monitoring SpO2 (Dependent on market)
32 64 GB Internal memory + microSD slot (up to 128GB)3GB RAM
1513 x 824 x 83mm 174g
Standard battery Li-ion 3000 mAh Fast Charging (Adaptive Fast Charging amp QC20)
wwwthecfomecom66
APPSTECH TALK
AIR DISPLAY
SQUARE REGISTER
Using this app you can connect your iPad to your computer and use it as an additional screen While working on an important presentation or sales proposal you can extend or mirror your computer screen on your iPad This app is compatible with both Mac and Windows computers Note that to use this feature you have to install Air Display on your iPad and a separate free app on your computer The computer and iPad also need to be on the same Wi-Fi network in order to work in-sync
For Mac users the app allows you to connect to up to four screens ndash all at the same time
Apart from the ability to convert your iPad into a wireless display whatrsquos also attractive about this app is that it allows you to control your computer wirelessly using your iPad
This fantastic application can serve as a mobile point of sale for your business It allows you to accept credit card payments ndash including Visa MasterCard Discover and American Express A transaction fee of 275 is charged for every time you swipe a card The sale amount is transferred to your account within two working days
Once you download the app you can sign up and register for a unique card reader solution called the lsquoSquare Readerrsquo (this is free) Square Reader encrypts all card details and ensures that the transaction is secure Once you receive your Square Reader you can connect it to your device and are all set
The application also offers added features such as transaction history connecting to a receipt printer creating employee logins and more
AED 3699
PRICE
Free
PRICE
wwwthecfomecom 67
APPSTECH TALK
DOCUSIGNHave you ever been in a situation where your employees need you to urgently sign a contract but arenrsquot able to physically reach you in time DocuSign solves this problem with its easy-to-use eSignature feature In three easy steps you can sign important documents and securely send them to your intended recipient
First you have to import the document to your device ndash this could be from Dropbox Google Drive or another select applications You then place your signature or any other important legal information you need to include such as initials Once you have finished working on the document send it back via e-mail
Whatrsquos particularly great about DocuSign is the great emphasis it puts on security ndash so that users donrsquot have to worry about getting into any legal trouble
Use DocuSign and never miss a deadline again
Free for basic version
PRICE
MPAYAn initiative by the Dubai eGovernment Department mPay is a simple application that allows you to make important payments Once yoursquove signed up and entered your payment details you are good to go You can pay your Dubai Electricity and Water Authority (DEWA) bills Etisalat utility bills Dubai Police fines Recharge SALIK and much more
A handy feature is its lsquoauto-rechargersquo option which you can use to set automatic payments
Free
PRICE
Opinion CIMAPERSONALITIES
wwwthecfomecom68
NEW HORIZONSBy geetu Ahuja Head of gCC at CIMA
The days of the traditional accountant working within a small community in a small town in a small market have long gone CFOs are now being referred to as Chief Frontier Officers as they travel from market to market overseeing their offices overseas This new expanded role has distinct advantages for both the company and the CFO who gain new skills and new insights from foreign branches a single hand at the helm of many markets provides business perspectives on a global scale and benchmarks across the board
On a personal level working abroad also has huge importance Robert Walters the specialist professional recruitment consultancy recently conducted a survey
of almost 2200 employees across a variety of professions exploring a number of topics which ranged from working practices and attitudes to careers The results highlighted some notable trends particularly for finance professionals
In career progression for example the survey showed that 50 of all accountants see working abroad as either lsquoessentialrsquo or lsquoextremely usefulrsquo to furthering their prospects more than banking professionals lawyers and IT workers ndash a strong indication of how accounting professionals are thinking about their future either within their existing company or with opportunities elsewhere
Accountants with globally recognised qualifications obviously have a greater chance of gaining some experience abroad and the lsquoGen Yrsquo professionals in particular seem ready to pack their bags In a CIMA study conducted in the UK last year over a third of those seeking employment in the
next two years will prioritise opportunities abroad over those in their home countries many of them enticed by the career incentives offered by the Middle East
How quickly can they land what seems to be their dream job What are the realities It may be that the move is simply from one branch to another and the only significant difference is a view from the window but for those expanding rather than changing their roles we have seen a very real need for a depth and breadth of knowledge never needed before
As geographical boundaries are pushed ever-wider a CFOrsquos responsibilities are pushed with them For many finance executives the understanding of their own patch of land is no longer enough they now have to be aware of foreign markets up to speed with foreign trends and au fait with foreign laws There is a need for a new commercial awareness in geography as well as philosophy
As geographical boundaries are pushed ever-wider a CFOrsquos responsibilities are pushed with them
John vargheseQampA
wwwthecfomecom 69
BUSINESSSET UP YOUR
IN THE UNITED ARAB EMIRATES
TO
WAREHOUSESOFFICES INDUSTRIAL LANDFLEXI
Quick and easy company set-up
Less than an hour drive from Dubai
Complete cost-effective packages including licences and facilities
100 foreign ownership
Zero income and corporate taxes
Eligibility for UAE Residence Visa
BUSINESS SET-UP SOLUTIONS STARTING FROM AED 15000 (USD 4000)
RAK FREE TRADE ZONE PROVIDES
RAK Free Trade Zone Authority - Government of Ras Al KhaimahUAE (Ras Al Khaimah) Tel +971 7 2041111 (Dubai) Tel +971 4 7041875 (Abu Dhabi) Tel +971 2 6994888
Germany (Cologne) - Turkey (Istanbul) - India (Mumbai)
Call +971 7 204 1111 Visit wwwrakftzcom Join rakftz
47wwwthecfomecom
1048576bull What regulatory risks mayaccompany the proposal
1048576bull What social and environmentalfactors will we face if for example the proposal requires investing in overseas operations
1048576bull What types of employeeresistance may arise if we implement the proposal and how will we overcome the root causes of any such resistance
1048576bull Can and how should we valuefuture options associated with the proposal such as expanding or contracting the investment over time as new information becomes available
1048576bull Should we use debt or equity tofund the proposal
In short accountants have evolved to become integrated thinkers who enable EPM by partnering with managers across the organisation to add value Yet as EPM has gradually become the centrepiece of our professionrsquos value proposition accounting education hasnrsquot done enough to embrace it To overcome this gap wersquod like to further suggest that the concepts of competency integration and EPM need to come ldquofront and centrerdquo as we move forward in educating the next generation of successful accounting practitioners
Accounting Education No Longer on the SidelinesRecently a task force consisting of members of IMAreg (Institute of Management Accountants) and members of the Management Accounting Section (MAS) of the American Accounting Association (AAA) addressed the competency issue How should accounting education change fundamentally to help close the competencies gap The efforts of the task force led to
cash flows and how to apply discounted cash flow (DCF) decision models such as net present value (NPV) is of foundationalmdashsome might say critical mdash importance But integrated thinkers draw on an understanding of organisational strategy coupled with a broader set of competencies (beyond what might be considered technical or foundational knowledge) when making these types of decisions For example they consider how behavioural issues may influence the capital investment decision-making process Perhaps the financial estimates contained in the NPV analysis are too optimistic because the manager who prepared the numbers has a vested interest in seeing the project approved Decision makers also need to consider issues such as leasing vs buying a capital asset and the corresponding impacts on the financial statements and ratios that are tracked by investors and lenders What nonfinancial factors are associated with the proposed investment Add in the tax consequences of capital investment decisions coupled with the need to maintain internal control over any new business processes tied to these decisions and the need to think in an integrated fashion across a variety of accounting competencies becomes apparent
Furthermore becoming a true business partner with managers across the organisation requires more than simply integrating various accounting competencies It also means thinking like a business manager or a chief executive officer (CEO) Returning to the capital budgeting example an integrated thinker will ask questions such as
across the organisation Together they formulate and plan strategies then participate in collaborative decision-making processes that execute those strategies in a manner that adds stakeholder value Said another way accountants have evolved to become enterprise performance managers This shift in our orientation from a support function to an enterprise performance management (EPM) role has enormous implications for defining the determinants of success within our profession the most important of which involves becoming collaborators and ldquointegrated thinkersrdquo Take for example a common but important business decision process capital investment analysis Certainly technical knowledge regarding how to estimate relevant after-tax
48 wwwthecfomecom
expanding capital budgeting discussions to include financial statement impacts tax consequences and internal control issues integrates topical coverage across the External Reporting and Analysis Taxation Compliance and Planning and Assurance and Internal Control competencies shown in Figure 1
Third accounting curricula can incorporate a broader set of management competencies For example evaluating capital investment proposals from the perspectives of change management (Leadership) social and environmental issues (Ethics and Social Responsibility) regulatory concerns (Governance Risk and Compliance) and capital structure (Additional Core Business Competencies) brings a CEOrsquos perspective to the decision-making process
Fourth accounting curricula should include foundational competencies such as proficiency with spreadsheets and written and oral communication In the context of capital budgeting this may include asking students to use Microsoft Excel to perform a sensitivity analysis and then to present their findings to the entire class
Working to Fix the ProblemAt this point although you may agree with us that therersquos a competency crisis within the accounting profession you may be wondering What does this have to do with me What can my organisation do to help address this so-called competency crisis The answer a lot Practice partners and academic partners can help the accounting profession overcome the competency crisis That said letrsquos take a closer look at the role of practice partners first
improvement) and accounting competencies (external reporting and analysis planning analysis and control taxation compliance and planning information systems assurance and internal control and professional values ethics and attitudes) Of critical importance to the framework is the assumption that the set of competencies contained in Figure 1 would be developed and integrated over time through a blend of formal education (including continuing education) training and job experience
What levels of integrationmdashon the road to developing integrated thinkers in accountingmdashare possible First accounting educators can integrate within a single accounting competency So referring back to our capital budgeting discussion teaching computational models such as NPV analysis coupled with a review of various behavioural issues associated with capital investment decisions would be an example of integrating within the Planning Analysis and Control competency listed in Figure 1
Second professors can integrate across accounting competencies For example
a recently published article that contains a proposed framework for accounting education reproduced here as Figure 1 The framework is general in the sense that itrsquos meant to apply to all accounting students not subgroups based on career specialisation such as tax assurance services corporate finance and the like Itrsquos based on the idea that accounting educators can better prepare students to deliver our professionrsquos EPM value proposition through integrated competency-oriented curricula (For more see ldquoFocusing Accounting Curricula on Studentsrsquo Long-Run Careers Recommendations for an Integrated Competency-Based Framework for Accounting Educationrdquo in the May 2014 edition of Issues in Accounting Education)
A glance at Figure 1 reveals three levels of competencies foundational competencies (communication ability to leverage technology and analytical thinking and problem solving among others) broad management competencies (including leadership ethics and social responsibility and process management and
Proposed Competencies-based Framework for Accounting Education
FOUNDATIONALCOMPETENCIES
ACCOUNTING COMPETENCIES
BROAD MANAGEMENT COMPETENCIES
leadership
ExternalReportingamp Analysis
PlanningAnalysis
amp Control
TaxationComplianceamp Planning
InformationSystems
Assuranceamp InternalControl
ProfessionalValues Ethics
amp Attitudes
Communication
Quantitative
Interpersonal
Technological
Analytical Thinking ampProblem Solving
Ethics amp SocialResponsibility
ProcessManagement ampImprovement
GovernanceRisk amp
Compliance
AdditionalCore BusinessCompetencies
Although you may agree with us that therersquos a competency crisis within the account-ing profes-sion you may bewondering What does this haveto do with me
A practice partner should be or become a CMAreg (Certified Management Accountant) maintain professional certification by completing required Continuing Professional Education (CPE) hours and regularly read the IMA publications Strategic Finance and Management Accounting Quarterly
In addition there are a number of excellent resources that deal with topics covered in this article and that IMA makes available to its members
Strategic Finance PowerPacks(wwwimanetorg SFPowerPacks) These are resources focused on contemporary topics similar to those discussed earlier Current offerings include Risk Management Strategic Planning IT Skills amp Software and Internal Controls Each PowerPack includes a combination of resources such as research studies articles and links to webinars
Statements on Management Accounting (SMAs)(wwwimanetorgresources and_publicationsresearch_ studies_resourcesstatements on_management_accounting aspx) SMAs represent monographs classified into one of the following six categories Leadership Strategies and Ethics Technology Enablement Strategic Cost Management Business Performance Management Finance Governance Risk and Compliance and the Practice of Management Accounting Multiple items are available within each category For example the Practice of Management Accounting category includes (among other items)
49wwwthecfomecom
the Definition of Management Accounting and Implementing Shared Service Centres
Research Studies (wwwimanetorgresources_and_publicationsResearch_Studies_and_ResourcesAll_reportsaspx) The ldquoThoughtLeadershiprdquo section of IMArsquos website includes research covering a broad range of issues classified into seven categories For example under the ldquoGlobal Business Environmentrdquo category the following two research reports are available ldquoKey Differences Between IFRS and US GAAP Impact on Financial Reportingrdquo and ldquoCosting Methodologies and Cost Management Practices in the Peoplersquos Republic of Chinardquo
IMA Leadership Academy (www imanetorgprograms_events leadership_academyaspx) As described on the IMA website this programme is designed to assess a memberrsquos leadership status enhance that individualrsquos skills (principally through monthly webinars) and recognise leadership achievements These benefits are free to members
How You Can Make a Bigger Impact In addition to attending local regional and national IMA meetings consider inviting a small group of students to each chapter meeting This could be a wonderful (and relatively low-cost) option for mentoring aspiring accountants and finance professionals providing networking opportunities and introducing students to cutting-edge issues regarding the practice of management accounting Joining a university accounting
advisory group may be another way to influence the development of EPM in that institutionrsquos curriculum design
Other methods to enhance EPM in your organisation include (1) forming user groups within your company your local IMA chapter or your industry to review and share EPM experiences (2) encouraging advancement in the firm to be linked to EPM proficiency (3) focusing your companyrsquos recruiting efforts on candidates who display a background in andor understanding of EPM and (4) organising cross training within your company to enhance a mutual understanding of each otherrsquos respective roles
Finally visit the Competency CrisisTM website (http competencycrisisorg) set up by IMA to unite the accounting and finance constituencies professionals students employers academics and professorsmdashand explore competency issues through the lens of each stakeholder group The site is designed to ldquoencourage a discourse spur action and create a community dedicated to resolving the serious crisis of competency present in the professionrdquo Special sections of the website are devoted to educators students and employers professionals
Our Partners in Education Much like a practice partner an academic partner should be or become a CMA maintain professional accreditation by completing CPE hours and regularly read IMArsquos publications
Academic members of IMA can pursue and actively promote the CMA programme at their respective institutions
50 wwwthecfomecom
IMArsquos website contains helpful resources including an exam content overview content specification outlines for each of the two parts of the CMA exam and learning outcome statements The current exam covers some of the professional competencies represented in Figure 1 A summary of changes to exam content which will be effective in January 2015 is provided on the IMA website in News amp Media Relations which is located under ldquoAbout IMArdquo (See the press release dated March 24 2014) Other helpful resources include ldquoICMA Announces CMA Exam Content Changesrdquo in the April 2014 issue of Strategic Finance as well as ldquoManagement Accounting Career Readiness Shaping YOUR Curriculumrdquo
These forthcoming changes are based on the most recent IMA study of the knowledge and skills needed by management accountants from the view of CFOs controllers and other accountingfinance professionals from around the world
Also consider taking a group of your students to the IMA Student Leadership Conference held each November The Conference provides excellent networking opportunities for you your students and practicing professionals Students can learn firsthand from Conference presenters the challenges and opportunities facing finance and accounting professionals today
Moreover if your institution doesnrsquot currently have an IMA Student Chapter consider forming one One of the authors of this article David Stout reinstituted the student chapter at his school (Youngstown State University) after travelling with a group of his students to the IMA
Student Leadership Conference in Cleveland Ohio Through an IMA Student Chapter on campus students are able to work closely with a sponsoring local IMA chapter and bring to campus speakers who are experts in a wide range of topics including those discussed earlier in this article Each year student chapters compete for an Award of Excellence (AOE) and recognition as an Outstanding Student Chapter In addition IMA student members are able to engage in networking activities leadership training mentoring and community service programmesmdashall through their local chapter
You also might consider volunteering to serve as a Campus Advocate In this role yoursquoll represent IMA in all major matters of interest to your students (scholarship opportunities starting a student chapter mentoring and the like) and to your institution (for example leveraging IMA resources to advance the relevancy of the accounting curriculum use of educational case studies published in the IMA Educational Case Journal and access to IMArsquos ethics curriculum)
And if you havenrsquot yet done this ask IMA to endorse your accounting programme (information is available at www imanetorgeducator_resources indexaspx) This programme is designed to identify business curricula that meet the quality educational standards required to prepare students to earn the CMA designation Endorsement is based on an analysis of the curriculum and topics covered on the two-part CMA exam Currently 12 programmes have been endorsed
Finally if your school has an IMA Student Chapter consider participating in the annual IMA Student Case Competition where students are asked to propose a solution to a real world problem (Cases are solicited each year by Raef Lawson IMA VP of Research and Policy and IMA Professor in-Residence) Finalists make their presentations at IMArsquos Annual Conference amp Exposition before a set of judges consisting of accounting faculty members and practitioners Each year a new case is published in the August issue of Strategic Finance for students to use for that yearrsquos competition
Working TogetherIn this article we have summarised the changes that have affected the accounting profession and provided a competencies-based framework for guiding accounting educators in responding productively to those changes As a management accountant you know that implementing change in any organisation let alone within an entire profession never comes easily To be successful in overcoming our professionrsquos competency crisis IMArsquos practice and academic partners will need to assume leadership roles in defining enterprise performance management as the cornerstone of the accounting professionrsquos value proposition
This article was orginally published in the August 2014 issue of Strategic Finance It appears here with the permission of The Association of Accountants and financial professionals in Business
We need to educate ourselvesand future generations of account-ants so that as a collec-tive group we can deliver theexpanding set of com-petenciesdemanded in todayrsquos dynamicorgani-sational contexts
THE POWERFUL AND THRIFTY OFFICE ALL-ROUNDERS
The new ECOSYS M3560idn series will astound you With their print speeds of up to 60 pages per minute they are among the most productive A4 bw multifunctionals on the market We nevertheless managed to keep their ecological footprint and total cost of ownership impressively low by using our well-known ECOSYS technology and equipping the devices with our renowned long-life components The result Not only less waste and lower maintenance costs but also less hassle for you and all your colleagues You will also greatly appreciate the many customisation possibilities of the devices equipped with KYOCERArsquos open solution platform HyPAStrade as it allows you to tailor the device to your needs So yes we are proud of our new range of MFPs and can hardly wait to share their numerous benefits with you
For more information please contactKYOCERA Document Solutions Middle East | PB Box 500817 DubaiUAE | Tel +9714 4330 412 | Fax +9714 4231 944KYOCERA Document Solutions Europe BV - wwwkyoceradocumentsolutionseuKYOCERA Document Solutions Inc - wwwkyoceradocumentsolutionscom
52
ACCAINTERVIEW
wwwthecfomecom
GLOBAL By ASSOCIATION
across the region from our key employers and learning provider partners to our active and growing student and member base I want to understand their challenges and priorities and how ACCA can work with them to help support the economic success of the region
What can a CFO gain from working with ACCAThe ACCA qualification is about complete finance professionals For CFOs it brings the technical knowledge vital to business success complemented with the strategic management skills and ethical competence crucial to an organisationrsquos success As an organization ACCA in the UAE brings CFOs access to that local and global network of peers and expertise along with our leading research and insights that help them to keep up to date on the issues that matter most
Are there any initiatives in place to leverage the recently announced partnership with AAA
How are the ACCArsquos many years of activity being applied to the Middle EastACCA has now had a presence in the UAE for well over a decade During that time we have established strong relationships across the Middle East epitomised by the recent signing of our Strategic Partnership with AAA As a national body in choosing to partner with ACCA they recognised the local and global perspective we bring We are continuing to work with students members and employers across the Middle East to build their networks knowledge and business success through events research and insights and access to a growing number of online resources
Which initial priorities are among your key aims upon joining the organisationrsquos efforts in the UAEIn the first few months I hope to build on the success of the team in the UAE My priority will be to meet as many of our key stakeholders
The Association for Chartered Certified Accountants (ACCA) provides its services across a number of international borders The recent announcement of Lindsay Degouve de Nuncques as the new head of the Associationrsquos UAE chapter further exemplifies the ACCArsquos reach based on her previous work in the UK Nuncques shares here what she brings to the Middle East and just how globalisation has driven her ascent
53
ACCAINTERVIEW
wwwthecfomecom
The strategic partnership with AAA is the first of its kind in the region Students who complete the UAECA qualification will be entitled to both the AAA and ACCA designations and ACCA members in the UAE will also be eligible to apply for AAA membership This is a very exciting development in the market and together AAA and ACCA will be working to deliver maximum value to all our stakeholders from this partnership As we launch the UAECA qualification this activity will start in earnest
Which key industries will you be spotlighting in the Middle East in the months aheadOur experience of working across all sectors and levels of organisations globally gives ACCA a unique insight into all types of industries We will continue to be working with employers across the spectrum in the months ahead to help them gain the insight and make the connections that drive businesses to succeed at whatever they do
ldquoThe ACCA qualification is about complete finance professionals For CFOs it brings the technical knowledge vital to business success complemented with the strategic management skillsrdquo
54
Islamic FinanceMARKET OUTLOOK
wwwthecfomecom
In its 10th instalment the Forum is hosted in Dubai as a direct result of the UAErsquos increasing importance in the world of global Islamic finance
THE WORLD ISLAmIC ECONOmIC FORUm LANDS IN DUBAI
In Dubairsquos continued quest for leading the world across a range of spectrums the Emirate accelerated its desire to become the worldrsquos leading hub for Islamic finance by hosting the 10th installment of the World Islamic Economic Forum (WIEF) Delegates from dozens of countries attended to take part in a three-day event held at Madinat Jumeirah which rests alongside Dubairsquos gleaming coastline Held under the patronage of His Highness Sheikh Mohammed Bin Rashid Al Maktoum the
Vice President and Prime Minister of the UAE and Ruler of Dubai key speakers included The Honorary Dr Zeti Akhtar Aziz Governor of the Central Bank of Malaysia HE Kairat Kelimbetov Governor of the National Bank of Kazakhstan The Honorary Datorsquo Sri Mohd Najib Tun Abdul Razal Prime Minister of Malaysia and HE Xavier Bettel Prime Minister of the Grand Duchy of Luxembourg
Launched in 2006 in Malaysia WIEF has grown in tandem with the increased
Delegates from dozens of countries attended WIEF to take part in the three-day event
sophistication and reach of Islamic finance After a successful event in London in 2013 amidst increased interest in Islamic finance across Europe WIEF relocated to Dubai where the local business structure is keen to host halal finance
Said Hamad Buamim President and CEO Dubai Chamber of Commerce and Industry co-organisers of the event ldquo[The forum] is the start of a new chapter of cooperation between Dubai and the world as part of
55
Islamic FinanceMARKET OUTLOOK
wwwthecfomecom
Dubai Capital of Islamic Economy visionhellipestablishing a unified regulatory authority to provide the framework for standards across halal industries will significantly accelerate growth Likewise we need to see increased cooperation and partnership between the public and private sectors This is already happening with great success here in Dubairdquo
The order of global cooperation needed to facilitate growth across the Islamic finance world was more than apparent at WIEF based on how many differing nations were represented at the event The exhibitorrsquos hall was populated with a number of key Malaysian stands representative of the Southeast Asianrsquos ranking as the global leader in Islamic finance Also present were companies from Saudi Arabia also a key locality in the worldrsquos halal industries An interesting yet prescient presence was of attendees from South Korea a nation which is eager to participate in Islamic finance and will be hosting the WIEF Pyeongchang Roundtable in December 2014
ldquoGangwon is a province located in Korea which is very interested in new business opportunities Wersquove realised the strength of the Islamic economy and have come here with many different companies The first type is based in real estate investment We also have companies which want to export their products to the Islamic economy based on their halal qualities And Gangwon will also be hosting the Winter
ldquoKorea is very interested in the strength of the Islamic economy and wants to export its products based on their halal qualitiesrdquo
56 wwwthecfomecom
$247trillionProjected value of halal products industry in lsquo18
125Muslim percentage of global tourism expenditure
STAT FACTSOlympics in 2018 and are presently seeking investments for this as wellrdquo said Seong-hun Kim a member of Gangwon Province Governmentrsquos Export Support Team
Dubai proved to be an excellent place for the event considering how well the UAE is able to so regularly corral international cooperation A key sign of this was witnessed recently when Luxembourg now considered the third most important base for Islamic finance globally opened a finance office in Dubai International Finance Centre The European nation also opened a euro200 sukuk earlier this year which was quickly oversubscribed
The prime minister of Luxembourg offered the WIEF audience a riveting speech which detailed just how international the Forum has become whilst encouraging more of the world to support the growing influence of Islamic finance
Said Bettel ldquoWe need to innovate more economic partnerships for growth We sometimes need to reengineer relationships but also have to make sure these relationships remain sustainable Growth in one country also brings growth to others as long as this is guided by free market initiatives Free trade and free flow of capital combined with innovation leads to prosperity We have all gathered here in Dubai to explore the future of Islamic finance and Luxembourg is also a pioneer of Islamic finance in Europe The Islamic financial sector has a major role to play in continued global growthrdquo
The Islamic Corporation for the Development of the Private Sector (ICD) is based in the Kingdom of Saudi Arabia where it manages an international fund worth $2 billion half of which is available for subscription With shareholders in more than 50 countries and a sovereign sukuk fund recently launched in West Africa the ICDrsquos CEO Khaled M Al Aboodi attended WIEF this year excited to participate in the global event
How does the ICD approach its attendance at the World Islamic Economic ForumI think the Forum is one of the best places for discussing the financial issues of the OEC member countries It has been around for ten years and has grown to become a very important platform for discussion Wersquore here to attend and listen but also to network Itrsquos a great networking platform and a place to share views whilst letting everyone know what we have to offer
How has Islamic finance changed over the yearsOf course itrsquos growing in a large scale Some of it actually needs more support particularly with respect to regulatory frameworks Wersquore trying to partner with many international organisations like the IMF to try to provide support to countries to adapt regulation for Islamic finance Sukuk issuance is one of the biggest issues that needs to be addressed because there is a huge amount of liquidity in this arena Due to issues related to regulation sukuk issuance can be costly But with the regulation we are confident it will be on a level playing field with other forms of finance Compliance is a major area where more work can be done The Forum started with a roundtable on sukuk which shows how helpful WIEF has been over the years
What type of work does ICD do internationallyICD helped the government of Senegal to issue the first sovereign sukuk This was successfully issued last summer Progressing in this manner is something wersquod like to see continue across West Africa in order to utilise its resources with aiding development in the region in mind
QampA WITH KHALED M AL ABOODI CEO OF ICD
Islamic FinanceMARKET OUTLOOK
OFFICIAL SPONSORS
ENDORSED BY OFFICIAL HOST OFFICIAL
COMMUNICATIONS PARTNER
MEYDAN HOTEL DUBAI UAE19 - 20 NOVEMBER 2014
WOMENOMICSthe next emerging market
TAKE PART in making change happen UNITE with business and through leaders from across the globe
PARTICIPATE to the expansion of a modern and inclusive economy
58
Gautam PradhanINTERVIEW
wwwthecfomecom
SUCCESS BEyOND BOUNDARIES
in other management roles such as strategic decision making mentoring and leading efficiency and productivity across a range of other departments and functions as well as a being a catalyst in ensuring that the boardrsquos vision for the organisation is achieved
A significant percentage of NMDCrsquos shares are owned publicly Does the CFO play a role in balancing the interests of the shareholdersAs a CFO balancing the shareholdersrsquo interests is definitely part of my responsibility In order to achieve this goal there needs to be a careful evaluation of each decision while keeping the short-term and long-term goals of the company in mind At NMDC we actively implement a system where we utilise a balance scorecard as a method of ensuring that all our primary objectives are met yet at the same time continuously enhance our relationships with our shareholders
NMDC has completed various projects across the Emirates Are there plans to move abroadAs NMDC moves towards becoming an international player our strategic expansion plans are focused in areas within the GCC region and India In line with this strategy we opened
How has a company with such a unique set of deliverables grown so consistently over the yearsOur organisation strongly believes that the core to our strength is the people process and equipment A strategic decision led by our Board of Directors and the senior management has been implemented that required us to consistently invest in these three aspects to help expand our business beyond the territorial boundaries of the UAE and at the same time enhance what we can offer which is relevant to these segments We attribute our success to the efforts which every employee contributes We also strongly believe in the ldquoWe can make it happenrdquo principle The management raises the index of performance while setting SMART objectives within the organisation and encouraging the employees to achieve them
How has your position as the CFO changed over NMDCrsquos 35 years of operationAs the market evolves and business dynamics change my role as the CFO has become complex and more challenging A few years back I was mainly focused on bookkeeping accounting and other financial responsibilities such as arranging bank facilities But moving forward I became more involved
The UAE is progressively becoming a hub for world-class infrastructure The country has duly impressed the rest of the globe with noteworthy land developments showcased across the emirates Among the remarkable landscapes found in Abu Dhabi are the Corniche Beach Yas Island and Sir Baniyas Island Behind these successful projects is NMDC the dredging division of Abu Dhabi National Oil Company (ADNOC)
In an interview with CFO Magazine Gautam Pradhan Chief Financial Officer NMDC shares an exclusive look into the companyrsquos international blueprint for growth and his dynamic role as a strategic leader of one of the best in dredging and marine construction in the Middle East
59
Gautam PradhanINTERVIEW
wwwthecfomecom
branches in Qatar Bahrain Oman and India This has paid rich dividends recently as projects of strategic importance are bagged in Qatar and Bahrain Furthermore NMDC (UAE) has recently played a key role as a leader of an international consortium with Royal Boskalis Westminister (Netherlands) and Jan De Nul Group (Belgium) for the awarding of the Suez Canal Dredging project in Egypt Moving forward we have devised a strategic approach that will enable us to play a key role in the development of Indiarsquos marine infrastructure
What are the global strategies that are part of the CFOrsquos responsibilitiesAs CFO understanding the macro economic scenario risk analysis and mitigating those risks are all a part of my responsibilities I also have to have a proper comprehension
ldquoA few years back I was mainly focused on financial responsibilities moving forward I became more involved in strategic decision making mentoring and leading productivityrdquo
Gautam PradhanINTERVIEW
60 wwwthecfomecom
of the challenges faced by the company in terms of dealing with foreign contracts direct and indirect taxes and hedging and managing the integration process These are essential to enhance shareholders wealth and mitigate undue risk
How significant is accountancy for NMDC in its operations Why exactlyAccountancy is the lifeline of any company it does not only record the finances it also reflects the health of the organisation The MIS reports analysis trends and statistical information go a long way toward effectively providing
the diagnostic approach essential for the company
How have NMDCrsquos environmental activities helped the companyrsquos bottom lineNMDCrsquos work is well-synchronised with our environmental activities and specifically with nature Our activities are closely linked to sand and water and we view such activities with strategic importance Projects such as increasing water supply to mangroves and beach nourishment help us support the environmental activities while adding to our bottom line
ldquoAccountancy is the lifeline of any company it does not only record the finances it also reflects the health of the organisationrdquo
A burgeoning slice of Abu Dhabi coastline
The largest business awards
in the GCC30th November Dubai
nominate now at wwwstarsofbusinessawardscom
Stars of Business has become an iconic awards brand like no other in the region It recognizes the very best SMEs across 26 business categories Itrsquos universally respected as scientifically assessed and unimpeachably judged
327000 SMEs across the UAE$234 billion estimated total revenue of the SME sector4974 Awards entries in 20131856 Individual company applicants
Presenting Partner Strategic SME Partner Gold Sponsor Gold Sponsor VIP Hospitality Partner Supporting Partner
Trade Facilitator PartnerTrade Credit PartnerLogistics Partner
Institutional Partner Institutional Partner Event Partner
OrganiserPublisherMedia Partner Media PartnerPort Authority Partner
62
David Allen INTERVIEW
wwwthecfomecom
What went into completing your bestseller ndash Getting Things Done (GTD)After twenty years of researching developing and implementing a methodology for achieving stress-free productivity based upon
thousands of hours spent desk-side with
some of the best brightest and busiest people in the world I decided to write the manual for it Thatrsquos what Getting Things Done is
What are the five phases of mastering workflowIn order to get
any situation under control so
you can focus you will utilise these five
steps Whether yoursquore managing your kitchen
or your company you will need to collect and capture what has your attention clarify what if anything to do about it organise it according to what it means to you review and reflect upon it in relation to
Todayrsquos evolving CFO is often caught between the world of business set-up generating revenue managing employees and building strong company infrastructure When can things actually get done What can one do to boost productivity and master workflow World-renowned business coach David Allen has the answers
PRODUCTIvITy PRINCIPLES WITH
DAvID ALLEN
63
David Allen INTERVIEW
wwwthecfomecom
those are greatly subvertedHow does one maintain a fair balance between the time spent planning and actually getting things doneYou simply need to spend just the amount of time you need to to trust that what you are getting done is the right thing to be getting done in the moment It takes as long as it takes to get to that point Why would you do anything less
How can one apply your core productivity and workflow principles to todayrsquos technologically driven environmentThe principles and their techniques are system-independent Whether you have meaningful input from the Internet your smartphone or a conversation in the hall you must engage with it equally Technology has simply increased the flow of input and ease of distraction in your world
There is a lot of talk about how connected wersquove become and how connectivity is driving tremendous business growth Does connectivity actually come with its fair share of downsides
Connectivity is obviously a two-edged sword We can have intimate productive and creative interaction instantly with someone on the other side of the world and we can just as easily be distracted and seduced into those engagements when they may not be the best use of our attention and resources Donrsquot shoot the medium Itrsquos all simply bringing attention to your clarity of direction and priorities or lack thereof
Could you share a few quick tips with our readers to instantly boost productivityWrite everything down that has your attention Decide the very next actions required to get closure on all of them Any next actions that require less than two minutes do instantly Park reminders of everything else somewhere that yoursquoll see when you can do something about them
We are currently facing a massive information overload What are some basic principles you could suggest to mentally organise such large amounts of dataConstantly ask yourself Where am I going Whatrsquos important and rewarding to me Is this information
the whole and then engage your resources with intuitive trust
As a CFO how can you transfer efficient workflow management skills to your employees Itrsquos very difficult to legislate processes for individuals ndash you can really only hold them accountable for their results But if you are managing your own commitments and intersections with them with integrity and rigour it will automatically force your team to ldquostep up to the platerdquo in their own behaviours in order to meet your standards If you request their complete list of their company projects and they canrsquot produce it thatrsquos a sign theyrsquore not in control If they make a commitment to you that they havenrsquot kept thatrsquos data about their performance GTD is simply about good operational business practices
With so many planning and organising activities in your methodology is there a risk of losing spontaneity as a strategistThe reason for these best practices is to optimise freedom creativity and spontaneity Without them
ldquoBut if you are manag-ing your own com-mitments and intersec-tions with them with integrity and rigour it will automatical-ly force them to ldquostep up to the platerdquo in their own behaviours in order to meet your standardsrdquo
64 wwwthecfomecom
supporting that Park whatever you find potentially meaningful somewhere that is easy to access when needed
Being an entrepreneur is a non-stop job How do you ensure that you have an adequate work-life balance Pay attention to what has your attentionmdashwith regard to anything Your health relationships career finances etc Notice when something might be ldquooffrdquo and make good decisions about what you need to do to get it back ldquoonrdquo again
Does your work teach people to be efficient or effective In essence they are the same thing Effective choices are generated by efficiency on a higher level If you want to implement strategy most effectively it demands utilising your resources optimally which is efficiency
Does motivation actually improve quality of work or purely quantityDepends on the focus of the motivation You can be motivated to work harder and you can be motivated to work smarter
What is your favourite productivity mantra that
you implement in your day-to-day lifeUsing my own in-basket and note-taking devices to capture potentially meaningful and valuable ideas and soon afterwards clearing all of them out by deciding what to do about them if anything
Your books seminars and other work inspires many individuals and businesses Who is your personal inspiration or role model I have many about many different aspects of my life The only person though that I ultimately trust as my best guide is my higher self which I try to access as frequently and clearly as I can
Finally what advice would you give to current business owners and aspiring entrepreneurs looking to gain complete control of their life and businessCapture what has your attention clarify what you need to do about it to get it off your mind organise the inventory of all your commitments at all levels review and reflect on all of that regularly relax and trust your inner wisdom to engage with the most appropriate thing in the moment
ldquoIf you want to implement strategy most effectively it demands utilising your resources optimallyrdquo
David Allen INTERVIEW
APPSTECH TALK
wwwthecfomecom 65
mAxImISE BUSINESS lsquoON-THE-GOrsquo WITH THESE HANDy APPS
ipAd SpECIAL
SAMSUNG UNvEILS GALAxY NOTE EDGE
Network
AP
Display
OS
Camera
Video
Audio
Additional Features
GoogleMobile Services
Connectivity
Sensor
Memory
Dimension
Battery
The availability of service may differ by country All functionality features specifications and other product information provided in this document including but not limited to the benefits design pricing components performance availability and capabilities of the product are subject to change without notice or obligation
Samsung Galaxy Note Edge Product Specifications
25G (GSM GPRS EDGE) 850 900 1800 1900 MHz3G (HSPA + 42Mbps) 850 900 1900 2100 MHz4G (LTE Cat 4 15050Mbps) or 4G(LTE Cat 6 30050Mbps)May differ by country and carrier
27 GHz Quad-Core Processor
56 inch (1419mm) Quad HD+ Super AMOLED (2560 x 1440 + 160)
Android 44 (KitKat)
Rear Facing 16 Mega pixel Auto Focus camera with Smart OISFront Facing 37 Mega pixel camera with f19Rear Facing Camera HDR (Rich tone) Selective Focus Rear-cam Selfie Beauty face Virtual Tour Shot ShotampMore Dual CameraFront Facing Camera Selfie Wide Selfie
Codec H264 MPEG-4 H263 VC-1 WMV7 WMV8 Sorenson Spark MP43 VP8 Recording amp Playback up to UHD
Codec MP3 AACAAC+eAAC+ WMA AMR-NBWB Vorbis FLAC()() Ultra High Quality Audio (~192KHz 24 bit) support
Multi WindowUltra Power Saving ModeVoice Recorder (Normal Mode Interview Mode Meeting Mode Voice Memo)Download BoosterS Health 35Dynamic Lock ScreenBriefingEdge screen UX Revolving Interaction Immersive apps(Camera Video S Note)Ticker board Express me Quick Tools Night Clock etc
Chrome Drive Photos Gmail Google Google+ Google Settings Hangouts Maps Play Books Play Games Play Newsstand Play Movie amp TV Play Music Play Store Voice Search YouTube
WiFi 80211 abgnac (HT80) MIMO PCIeGPS GLONASS BeidouNFC Bluetoothreg v 41 (BLE ANT+)IR LED (Remote Control) USB20 MHL 30
Gesture Accelerometer Geo-magnetic Gyroscope RGB IR-LEDProximity Barometer Hall Sensor Finger Scanner UV Heart Rate Monitoring SpO2 (Dependent on market)
32 64 GB Internal memory + microSD slot (up to 128GB)3GB RAM
1513 x 824 x 83mm 174g
Standard battery Li-ion 3000 mAh Fast Charging (Adaptive Fast Charging amp QC20)
wwwthecfomecom66
APPSTECH TALK
AIR DISPLAY
SQUARE REGISTER
Using this app you can connect your iPad to your computer and use it as an additional screen While working on an important presentation or sales proposal you can extend or mirror your computer screen on your iPad This app is compatible with both Mac and Windows computers Note that to use this feature you have to install Air Display on your iPad and a separate free app on your computer The computer and iPad also need to be on the same Wi-Fi network in order to work in-sync
For Mac users the app allows you to connect to up to four screens ndash all at the same time
Apart from the ability to convert your iPad into a wireless display whatrsquos also attractive about this app is that it allows you to control your computer wirelessly using your iPad
This fantastic application can serve as a mobile point of sale for your business It allows you to accept credit card payments ndash including Visa MasterCard Discover and American Express A transaction fee of 275 is charged for every time you swipe a card The sale amount is transferred to your account within two working days
Once you download the app you can sign up and register for a unique card reader solution called the lsquoSquare Readerrsquo (this is free) Square Reader encrypts all card details and ensures that the transaction is secure Once you receive your Square Reader you can connect it to your device and are all set
The application also offers added features such as transaction history connecting to a receipt printer creating employee logins and more
AED 3699
PRICE
Free
PRICE
wwwthecfomecom 67
APPSTECH TALK
DOCUSIGNHave you ever been in a situation where your employees need you to urgently sign a contract but arenrsquot able to physically reach you in time DocuSign solves this problem with its easy-to-use eSignature feature In three easy steps you can sign important documents and securely send them to your intended recipient
First you have to import the document to your device ndash this could be from Dropbox Google Drive or another select applications You then place your signature or any other important legal information you need to include such as initials Once you have finished working on the document send it back via e-mail
Whatrsquos particularly great about DocuSign is the great emphasis it puts on security ndash so that users donrsquot have to worry about getting into any legal trouble
Use DocuSign and never miss a deadline again
Free for basic version
PRICE
MPAYAn initiative by the Dubai eGovernment Department mPay is a simple application that allows you to make important payments Once yoursquove signed up and entered your payment details you are good to go You can pay your Dubai Electricity and Water Authority (DEWA) bills Etisalat utility bills Dubai Police fines Recharge SALIK and much more
A handy feature is its lsquoauto-rechargersquo option which you can use to set automatic payments
Free
PRICE
Opinion CIMAPERSONALITIES
wwwthecfomecom68
NEW HORIZONSBy geetu Ahuja Head of gCC at CIMA
The days of the traditional accountant working within a small community in a small town in a small market have long gone CFOs are now being referred to as Chief Frontier Officers as they travel from market to market overseeing their offices overseas This new expanded role has distinct advantages for both the company and the CFO who gain new skills and new insights from foreign branches a single hand at the helm of many markets provides business perspectives on a global scale and benchmarks across the board
On a personal level working abroad also has huge importance Robert Walters the specialist professional recruitment consultancy recently conducted a survey
of almost 2200 employees across a variety of professions exploring a number of topics which ranged from working practices and attitudes to careers The results highlighted some notable trends particularly for finance professionals
In career progression for example the survey showed that 50 of all accountants see working abroad as either lsquoessentialrsquo or lsquoextremely usefulrsquo to furthering their prospects more than banking professionals lawyers and IT workers ndash a strong indication of how accounting professionals are thinking about their future either within their existing company or with opportunities elsewhere
Accountants with globally recognised qualifications obviously have a greater chance of gaining some experience abroad and the lsquoGen Yrsquo professionals in particular seem ready to pack their bags In a CIMA study conducted in the UK last year over a third of those seeking employment in the
next two years will prioritise opportunities abroad over those in their home countries many of them enticed by the career incentives offered by the Middle East
How quickly can they land what seems to be their dream job What are the realities It may be that the move is simply from one branch to another and the only significant difference is a view from the window but for those expanding rather than changing their roles we have seen a very real need for a depth and breadth of knowledge never needed before
As geographical boundaries are pushed ever-wider a CFOrsquos responsibilities are pushed with them For many finance executives the understanding of their own patch of land is no longer enough they now have to be aware of foreign markets up to speed with foreign trends and au fait with foreign laws There is a need for a new commercial awareness in geography as well as philosophy
As geographical boundaries are pushed ever-wider a CFOrsquos responsibilities are pushed with them
John vargheseQampA
wwwthecfomecom 69
BUSINESSSET UP YOUR
IN THE UNITED ARAB EMIRATES
TO
WAREHOUSESOFFICES INDUSTRIAL LANDFLEXI
Quick and easy company set-up
Less than an hour drive from Dubai
Complete cost-effective packages including licences and facilities
100 foreign ownership
Zero income and corporate taxes
Eligibility for UAE Residence Visa
BUSINESS SET-UP SOLUTIONS STARTING FROM AED 15000 (USD 4000)
RAK FREE TRADE ZONE PROVIDES
RAK Free Trade Zone Authority - Government of Ras Al KhaimahUAE (Ras Al Khaimah) Tel +971 7 2041111 (Dubai) Tel +971 4 7041875 (Abu Dhabi) Tel +971 2 6994888
Germany (Cologne) - Turkey (Istanbul) - India (Mumbai)
Call +971 7 204 1111 Visit wwwrakftzcom Join rakftz
48 wwwthecfomecom
expanding capital budgeting discussions to include financial statement impacts tax consequences and internal control issues integrates topical coverage across the External Reporting and Analysis Taxation Compliance and Planning and Assurance and Internal Control competencies shown in Figure 1
Third accounting curricula can incorporate a broader set of management competencies For example evaluating capital investment proposals from the perspectives of change management (Leadership) social and environmental issues (Ethics and Social Responsibility) regulatory concerns (Governance Risk and Compliance) and capital structure (Additional Core Business Competencies) brings a CEOrsquos perspective to the decision-making process
Fourth accounting curricula should include foundational competencies such as proficiency with spreadsheets and written and oral communication In the context of capital budgeting this may include asking students to use Microsoft Excel to perform a sensitivity analysis and then to present their findings to the entire class
Working to Fix the ProblemAt this point although you may agree with us that therersquos a competency crisis within the accounting profession you may be wondering What does this have to do with me What can my organisation do to help address this so-called competency crisis The answer a lot Practice partners and academic partners can help the accounting profession overcome the competency crisis That said letrsquos take a closer look at the role of practice partners first
improvement) and accounting competencies (external reporting and analysis planning analysis and control taxation compliance and planning information systems assurance and internal control and professional values ethics and attitudes) Of critical importance to the framework is the assumption that the set of competencies contained in Figure 1 would be developed and integrated over time through a blend of formal education (including continuing education) training and job experience
What levels of integrationmdashon the road to developing integrated thinkers in accountingmdashare possible First accounting educators can integrate within a single accounting competency So referring back to our capital budgeting discussion teaching computational models such as NPV analysis coupled with a review of various behavioural issues associated with capital investment decisions would be an example of integrating within the Planning Analysis and Control competency listed in Figure 1
Second professors can integrate across accounting competencies For example
a recently published article that contains a proposed framework for accounting education reproduced here as Figure 1 The framework is general in the sense that itrsquos meant to apply to all accounting students not subgroups based on career specialisation such as tax assurance services corporate finance and the like Itrsquos based on the idea that accounting educators can better prepare students to deliver our professionrsquos EPM value proposition through integrated competency-oriented curricula (For more see ldquoFocusing Accounting Curricula on Studentsrsquo Long-Run Careers Recommendations for an Integrated Competency-Based Framework for Accounting Educationrdquo in the May 2014 edition of Issues in Accounting Education)
A glance at Figure 1 reveals three levels of competencies foundational competencies (communication ability to leverage technology and analytical thinking and problem solving among others) broad management competencies (including leadership ethics and social responsibility and process management and
Proposed Competencies-based Framework for Accounting Education
FOUNDATIONALCOMPETENCIES
ACCOUNTING COMPETENCIES
BROAD MANAGEMENT COMPETENCIES
leadership
ExternalReportingamp Analysis
PlanningAnalysis
amp Control
TaxationComplianceamp Planning
InformationSystems
Assuranceamp InternalControl
ProfessionalValues Ethics
amp Attitudes
Communication
Quantitative
Interpersonal
Technological
Analytical Thinking ampProblem Solving
Ethics amp SocialResponsibility
ProcessManagement ampImprovement
GovernanceRisk amp
Compliance
AdditionalCore BusinessCompetencies
Although you may agree with us that therersquos a competency crisis within the account-ing profes-sion you may bewondering What does this haveto do with me
A practice partner should be or become a CMAreg (Certified Management Accountant) maintain professional certification by completing required Continuing Professional Education (CPE) hours and regularly read the IMA publications Strategic Finance and Management Accounting Quarterly
In addition there are a number of excellent resources that deal with topics covered in this article and that IMA makes available to its members
Strategic Finance PowerPacks(wwwimanetorg SFPowerPacks) These are resources focused on contemporary topics similar to those discussed earlier Current offerings include Risk Management Strategic Planning IT Skills amp Software and Internal Controls Each PowerPack includes a combination of resources such as research studies articles and links to webinars
Statements on Management Accounting (SMAs)(wwwimanetorgresources and_publicationsresearch_ studies_resourcesstatements on_management_accounting aspx) SMAs represent monographs classified into one of the following six categories Leadership Strategies and Ethics Technology Enablement Strategic Cost Management Business Performance Management Finance Governance Risk and Compliance and the Practice of Management Accounting Multiple items are available within each category For example the Practice of Management Accounting category includes (among other items)
49wwwthecfomecom
the Definition of Management Accounting and Implementing Shared Service Centres
Research Studies (wwwimanetorgresources_and_publicationsResearch_Studies_and_ResourcesAll_reportsaspx) The ldquoThoughtLeadershiprdquo section of IMArsquos website includes research covering a broad range of issues classified into seven categories For example under the ldquoGlobal Business Environmentrdquo category the following two research reports are available ldquoKey Differences Between IFRS and US GAAP Impact on Financial Reportingrdquo and ldquoCosting Methodologies and Cost Management Practices in the Peoplersquos Republic of Chinardquo
IMA Leadership Academy (www imanetorgprograms_events leadership_academyaspx) As described on the IMA website this programme is designed to assess a memberrsquos leadership status enhance that individualrsquos skills (principally through monthly webinars) and recognise leadership achievements These benefits are free to members
How You Can Make a Bigger Impact In addition to attending local regional and national IMA meetings consider inviting a small group of students to each chapter meeting This could be a wonderful (and relatively low-cost) option for mentoring aspiring accountants and finance professionals providing networking opportunities and introducing students to cutting-edge issues regarding the practice of management accounting Joining a university accounting
advisory group may be another way to influence the development of EPM in that institutionrsquos curriculum design
Other methods to enhance EPM in your organisation include (1) forming user groups within your company your local IMA chapter or your industry to review and share EPM experiences (2) encouraging advancement in the firm to be linked to EPM proficiency (3) focusing your companyrsquos recruiting efforts on candidates who display a background in andor understanding of EPM and (4) organising cross training within your company to enhance a mutual understanding of each otherrsquos respective roles
Finally visit the Competency CrisisTM website (http competencycrisisorg) set up by IMA to unite the accounting and finance constituencies professionals students employers academics and professorsmdashand explore competency issues through the lens of each stakeholder group The site is designed to ldquoencourage a discourse spur action and create a community dedicated to resolving the serious crisis of competency present in the professionrdquo Special sections of the website are devoted to educators students and employers professionals
Our Partners in Education Much like a practice partner an academic partner should be or become a CMA maintain professional accreditation by completing CPE hours and regularly read IMArsquos publications
Academic members of IMA can pursue and actively promote the CMA programme at their respective institutions
50 wwwthecfomecom
IMArsquos website contains helpful resources including an exam content overview content specification outlines for each of the two parts of the CMA exam and learning outcome statements The current exam covers some of the professional competencies represented in Figure 1 A summary of changes to exam content which will be effective in January 2015 is provided on the IMA website in News amp Media Relations which is located under ldquoAbout IMArdquo (See the press release dated March 24 2014) Other helpful resources include ldquoICMA Announces CMA Exam Content Changesrdquo in the April 2014 issue of Strategic Finance as well as ldquoManagement Accounting Career Readiness Shaping YOUR Curriculumrdquo
These forthcoming changes are based on the most recent IMA study of the knowledge and skills needed by management accountants from the view of CFOs controllers and other accountingfinance professionals from around the world
Also consider taking a group of your students to the IMA Student Leadership Conference held each November The Conference provides excellent networking opportunities for you your students and practicing professionals Students can learn firsthand from Conference presenters the challenges and opportunities facing finance and accounting professionals today
Moreover if your institution doesnrsquot currently have an IMA Student Chapter consider forming one One of the authors of this article David Stout reinstituted the student chapter at his school (Youngstown State University) after travelling with a group of his students to the IMA
Student Leadership Conference in Cleveland Ohio Through an IMA Student Chapter on campus students are able to work closely with a sponsoring local IMA chapter and bring to campus speakers who are experts in a wide range of topics including those discussed earlier in this article Each year student chapters compete for an Award of Excellence (AOE) and recognition as an Outstanding Student Chapter In addition IMA student members are able to engage in networking activities leadership training mentoring and community service programmesmdashall through their local chapter
You also might consider volunteering to serve as a Campus Advocate In this role yoursquoll represent IMA in all major matters of interest to your students (scholarship opportunities starting a student chapter mentoring and the like) and to your institution (for example leveraging IMA resources to advance the relevancy of the accounting curriculum use of educational case studies published in the IMA Educational Case Journal and access to IMArsquos ethics curriculum)
And if you havenrsquot yet done this ask IMA to endorse your accounting programme (information is available at www imanetorgeducator_resources indexaspx) This programme is designed to identify business curricula that meet the quality educational standards required to prepare students to earn the CMA designation Endorsement is based on an analysis of the curriculum and topics covered on the two-part CMA exam Currently 12 programmes have been endorsed
Finally if your school has an IMA Student Chapter consider participating in the annual IMA Student Case Competition where students are asked to propose a solution to a real world problem (Cases are solicited each year by Raef Lawson IMA VP of Research and Policy and IMA Professor in-Residence) Finalists make their presentations at IMArsquos Annual Conference amp Exposition before a set of judges consisting of accounting faculty members and practitioners Each year a new case is published in the August issue of Strategic Finance for students to use for that yearrsquos competition
Working TogetherIn this article we have summarised the changes that have affected the accounting profession and provided a competencies-based framework for guiding accounting educators in responding productively to those changes As a management accountant you know that implementing change in any organisation let alone within an entire profession never comes easily To be successful in overcoming our professionrsquos competency crisis IMArsquos practice and academic partners will need to assume leadership roles in defining enterprise performance management as the cornerstone of the accounting professionrsquos value proposition
This article was orginally published in the August 2014 issue of Strategic Finance It appears here with the permission of The Association of Accountants and financial professionals in Business
We need to educate ourselvesand future generations of account-ants so that as a collec-tive group we can deliver theexpanding set of com-petenciesdemanded in todayrsquos dynamicorgani-sational contexts
THE POWERFUL AND THRIFTY OFFICE ALL-ROUNDERS
The new ECOSYS M3560idn series will astound you With their print speeds of up to 60 pages per minute they are among the most productive A4 bw multifunctionals on the market We nevertheless managed to keep their ecological footprint and total cost of ownership impressively low by using our well-known ECOSYS technology and equipping the devices with our renowned long-life components The result Not only less waste and lower maintenance costs but also less hassle for you and all your colleagues You will also greatly appreciate the many customisation possibilities of the devices equipped with KYOCERArsquos open solution platform HyPAStrade as it allows you to tailor the device to your needs So yes we are proud of our new range of MFPs and can hardly wait to share their numerous benefits with you
For more information please contactKYOCERA Document Solutions Middle East | PB Box 500817 DubaiUAE | Tel +9714 4330 412 | Fax +9714 4231 944KYOCERA Document Solutions Europe BV - wwwkyoceradocumentsolutionseuKYOCERA Document Solutions Inc - wwwkyoceradocumentsolutionscom
52
ACCAINTERVIEW
wwwthecfomecom
GLOBAL By ASSOCIATION
across the region from our key employers and learning provider partners to our active and growing student and member base I want to understand their challenges and priorities and how ACCA can work with them to help support the economic success of the region
What can a CFO gain from working with ACCAThe ACCA qualification is about complete finance professionals For CFOs it brings the technical knowledge vital to business success complemented with the strategic management skills and ethical competence crucial to an organisationrsquos success As an organization ACCA in the UAE brings CFOs access to that local and global network of peers and expertise along with our leading research and insights that help them to keep up to date on the issues that matter most
Are there any initiatives in place to leverage the recently announced partnership with AAA
How are the ACCArsquos many years of activity being applied to the Middle EastACCA has now had a presence in the UAE for well over a decade During that time we have established strong relationships across the Middle East epitomised by the recent signing of our Strategic Partnership with AAA As a national body in choosing to partner with ACCA they recognised the local and global perspective we bring We are continuing to work with students members and employers across the Middle East to build their networks knowledge and business success through events research and insights and access to a growing number of online resources
Which initial priorities are among your key aims upon joining the organisationrsquos efforts in the UAEIn the first few months I hope to build on the success of the team in the UAE My priority will be to meet as many of our key stakeholders
The Association for Chartered Certified Accountants (ACCA) provides its services across a number of international borders The recent announcement of Lindsay Degouve de Nuncques as the new head of the Associationrsquos UAE chapter further exemplifies the ACCArsquos reach based on her previous work in the UK Nuncques shares here what she brings to the Middle East and just how globalisation has driven her ascent
53
ACCAINTERVIEW
wwwthecfomecom
The strategic partnership with AAA is the first of its kind in the region Students who complete the UAECA qualification will be entitled to both the AAA and ACCA designations and ACCA members in the UAE will also be eligible to apply for AAA membership This is a very exciting development in the market and together AAA and ACCA will be working to deliver maximum value to all our stakeholders from this partnership As we launch the UAECA qualification this activity will start in earnest
Which key industries will you be spotlighting in the Middle East in the months aheadOur experience of working across all sectors and levels of organisations globally gives ACCA a unique insight into all types of industries We will continue to be working with employers across the spectrum in the months ahead to help them gain the insight and make the connections that drive businesses to succeed at whatever they do
ldquoThe ACCA qualification is about complete finance professionals For CFOs it brings the technical knowledge vital to business success complemented with the strategic management skillsrdquo
54
Islamic FinanceMARKET OUTLOOK
wwwthecfomecom
In its 10th instalment the Forum is hosted in Dubai as a direct result of the UAErsquos increasing importance in the world of global Islamic finance
THE WORLD ISLAmIC ECONOmIC FORUm LANDS IN DUBAI
In Dubairsquos continued quest for leading the world across a range of spectrums the Emirate accelerated its desire to become the worldrsquos leading hub for Islamic finance by hosting the 10th installment of the World Islamic Economic Forum (WIEF) Delegates from dozens of countries attended to take part in a three-day event held at Madinat Jumeirah which rests alongside Dubairsquos gleaming coastline Held under the patronage of His Highness Sheikh Mohammed Bin Rashid Al Maktoum the
Vice President and Prime Minister of the UAE and Ruler of Dubai key speakers included The Honorary Dr Zeti Akhtar Aziz Governor of the Central Bank of Malaysia HE Kairat Kelimbetov Governor of the National Bank of Kazakhstan The Honorary Datorsquo Sri Mohd Najib Tun Abdul Razal Prime Minister of Malaysia and HE Xavier Bettel Prime Minister of the Grand Duchy of Luxembourg
Launched in 2006 in Malaysia WIEF has grown in tandem with the increased
Delegates from dozens of countries attended WIEF to take part in the three-day event
sophistication and reach of Islamic finance After a successful event in London in 2013 amidst increased interest in Islamic finance across Europe WIEF relocated to Dubai where the local business structure is keen to host halal finance
Said Hamad Buamim President and CEO Dubai Chamber of Commerce and Industry co-organisers of the event ldquo[The forum] is the start of a new chapter of cooperation between Dubai and the world as part of
55
Islamic FinanceMARKET OUTLOOK
wwwthecfomecom
Dubai Capital of Islamic Economy visionhellipestablishing a unified regulatory authority to provide the framework for standards across halal industries will significantly accelerate growth Likewise we need to see increased cooperation and partnership between the public and private sectors This is already happening with great success here in Dubairdquo
The order of global cooperation needed to facilitate growth across the Islamic finance world was more than apparent at WIEF based on how many differing nations were represented at the event The exhibitorrsquos hall was populated with a number of key Malaysian stands representative of the Southeast Asianrsquos ranking as the global leader in Islamic finance Also present were companies from Saudi Arabia also a key locality in the worldrsquos halal industries An interesting yet prescient presence was of attendees from South Korea a nation which is eager to participate in Islamic finance and will be hosting the WIEF Pyeongchang Roundtable in December 2014
ldquoGangwon is a province located in Korea which is very interested in new business opportunities Wersquove realised the strength of the Islamic economy and have come here with many different companies The first type is based in real estate investment We also have companies which want to export their products to the Islamic economy based on their halal qualities And Gangwon will also be hosting the Winter
ldquoKorea is very interested in the strength of the Islamic economy and wants to export its products based on their halal qualitiesrdquo
56 wwwthecfomecom
$247trillionProjected value of halal products industry in lsquo18
125Muslim percentage of global tourism expenditure
STAT FACTSOlympics in 2018 and are presently seeking investments for this as wellrdquo said Seong-hun Kim a member of Gangwon Province Governmentrsquos Export Support Team
Dubai proved to be an excellent place for the event considering how well the UAE is able to so regularly corral international cooperation A key sign of this was witnessed recently when Luxembourg now considered the third most important base for Islamic finance globally opened a finance office in Dubai International Finance Centre The European nation also opened a euro200 sukuk earlier this year which was quickly oversubscribed
The prime minister of Luxembourg offered the WIEF audience a riveting speech which detailed just how international the Forum has become whilst encouraging more of the world to support the growing influence of Islamic finance
Said Bettel ldquoWe need to innovate more economic partnerships for growth We sometimes need to reengineer relationships but also have to make sure these relationships remain sustainable Growth in one country also brings growth to others as long as this is guided by free market initiatives Free trade and free flow of capital combined with innovation leads to prosperity We have all gathered here in Dubai to explore the future of Islamic finance and Luxembourg is also a pioneer of Islamic finance in Europe The Islamic financial sector has a major role to play in continued global growthrdquo
The Islamic Corporation for the Development of the Private Sector (ICD) is based in the Kingdom of Saudi Arabia where it manages an international fund worth $2 billion half of which is available for subscription With shareholders in more than 50 countries and a sovereign sukuk fund recently launched in West Africa the ICDrsquos CEO Khaled M Al Aboodi attended WIEF this year excited to participate in the global event
How does the ICD approach its attendance at the World Islamic Economic ForumI think the Forum is one of the best places for discussing the financial issues of the OEC member countries It has been around for ten years and has grown to become a very important platform for discussion Wersquore here to attend and listen but also to network Itrsquos a great networking platform and a place to share views whilst letting everyone know what we have to offer
How has Islamic finance changed over the yearsOf course itrsquos growing in a large scale Some of it actually needs more support particularly with respect to regulatory frameworks Wersquore trying to partner with many international organisations like the IMF to try to provide support to countries to adapt regulation for Islamic finance Sukuk issuance is one of the biggest issues that needs to be addressed because there is a huge amount of liquidity in this arena Due to issues related to regulation sukuk issuance can be costly But with the regulation we are confident it will be on a level playing field with other forms of finance Compliance is a major area where more work can be done The Forum started with a roundtable on sukuk which shows how helpful WIEF has been over the years
What type of work does ICD do internationallyICD helped the government of Senegal to issue the first sovereign sukuk This was successfully issued last summer Progressing in this manner is something wersquod like to see continue across West Africa in order to utilise its resources with aiding development in the region in mind
QampA WITH KHALED M AL ABOODI CEO OF ICD
Islamic FinanceMARKET OUTLOOK
OFFICIAL SPONSORS
ENDORSED BY OFFICIAL HOST OFFICIAL
COMMUNICATIONS PARTNER
MEYDAN HOTEL DUBAI UAE19 - 20 NOVEMBER 2014
WOMENOMICSthe next emerging market
TAKE PART in making change happen UNITE with business and through leaders from across the globe
PARTICIPATE to the expansion of a modern and inclusive economy
58
Gautam PradhanINTERVIEW
wwwthecfomecom
SUCCESS BEyOND BOUNDARIES
in other management roles such as strategic decision making mentoring and leading efficiency and productivity across a range of other departments and functions as well as a being a catalyst in ensuring that the boardrsquos vision for the organisation is achieved
A significant percentage of NMDCrsquos shares are owned publicly Does the CFO play a role in balancing the interests of the shareholdersAs a CFO balancing the shareholdersrsquo interests is definitely part of my responsibility In order to achieve this goal there needs to be a careful evaluation of each decision while keeping the short-term and long-term goals of the company in mind At NMDC we actively implement a system where we utilise a balance scorecard as a method of ensuring that all our primary objectives are met yet at the same time continuously enhance our relationships with our shareholders
NMDC has completed various projects across the Emirates Are there plans to move abroadAs NMDC moves towards becoming an international player our strategic expansion plans are focused in areas within the GCC region and India In line with this strategy we opened
How has a company with such a unique set of deliverables grown so consistently over the yearsOur organisation strongly believes that the core to our strength is the people process and equipment A strategic decision led by our Board of Directors and the senior management has been implemented that required us to consistently invest in these three aspects to help expand our business beyond the territorial boundaries of the UAE and at the same time enhance what we can offer which is relevant to these segments We attribute our success to the efforts which every employee contributes We also strongly believe in the ldquoWe can make it happenrdquo principle The management raises the index of performance while setting SMART objectives within the organisation and encouraging the employees to achieve them
How has your position as the CFO changed over NMDCrsquos 35 years of operationAs the market evolves and business dynamics change my role as the CFO has become complex and more challenging A few years back I was mainly focused on bookkeeping accounting and other financial responsibilities such as arranging bank facilities But moving forward I became more involved
The UAE is progressively becoming a hub for world-class infrastructure The country has duly impressed the rest of the globe with noteworthy land developments showcased across the emirates Among the remarkable landscapes found in Abu Dhabi are the Corniche Beach Yas Island and Sir Baniyas Island Behind these successful projects is NMDC the dredging division of Abu Dhabi National Oil Company (ADNOC)
In an interview with CFO Magazine Gautam Pradhan Chief Financial Officer NMDC shares an exclusive look into the companyrsquos international blueprint for growth and his dynamic role as a strategic leader of one of the best in dredging and marine construction in the Middle East
59
Gautam PradhanINTERVIEW
wwwthecfomecom
branches in Qatar Bahrain Oman and India This has paid rich dividends recently as projects of strategic importance are bagged in Qatar and Bahrain Furthermore NMDC (UAE) has recently played a key role as a leader of an international consortium with Royal Boskalis Westminister (Netherlands) and Jan De Nul Group (Belgium) for the awarding of the Suez Canal Dredging project in Egypt Moving forward we have devised a strategic approach that will enable us to play a key role in the development of Indiarsquos marine infrastructure
What are the global strategies that are part of the CFOrsquos responsibilitiesAs CFO understanding the macro economic scenario risk analysis and mitigating those risks are all a part of my responsibilities I also have to have a proper comprehension
ldquoA few years back I was mainly focused on financial responsibilities moving forward I became more involved in strategic decision making mentoring and leading productivityrdquo
Gautam PradhanINTERVIEW
60 wwwthecfomecom
of the challenges faced by the company in terms of dealing with foreign contracts direct and indirect taxes and hedging and managing the integration process These are essential to enhance shareholders wealth and mitigate undue risk
How significant is accountancy for NMDC in its operations Why exactlyAccountancy is the lifeline of any company it does not only record the finances it also reflects the health of the organisation The MIS reports analysis trends and statistical information go a long way toward effectively providing
the diagnostic approach essential for the company
How have NMDCrsquos environmental activities helped the companyrsquos bottom lineNMDCrsquos work is well-synchronised with our environmental activities and specifically with nature Our activities are closely linked to sand and water and we view such activities with strategic importance Projects such as increasing water supply to mangroves and beach nourishment help us support the environmental activities while adding to our bottom line
ldquoAccountancy is the lifeline of any company it does not only record the finances it also reflects the health of the organisationrdquo
A burgeoning slice of Abu Dhabi coastline
The largest business awards
in the GCC30th November Dubai
nominate now at wwwstarsofbusinessawardscom
Stars of Business has become an iconic awards brand like no other in the region It recognizes the very best SMEs across 26 business categories Itrsquos universally respected as scientifically assessed and unimpeachably judged
327000 SMEs across the UAE$234 billion estimated total revenue of the SME sector4974 Awards entries in 20131856 Individual company applicants
Presenting Partner Strategic SME Partner Gold Sponsor Gold Sponsor VIP Hospitality Partner Supporting Partner
Trade Facilitator PartnerTrade Credit PartnerLogistics Partner
Institutional Partner Institutional Partner Event Partner
OrganiserPublisherMedia Partner Media PartnerPort Authority Partner
62
David Allen INTERVIEW
wwwthecfomecom
What went into completing your bestseller ndash Getting Things Done (GTD)After twenty years of researching developing and implementing a methodology for achieving stress-free productivity based upon
thousands of hours spent desk-side with
some of the best brightest and busiest people in the world I decided to write the manual for it Thatrsquos what Getting Things Done is
What are the five phases of mastering workflowIn order to get
any situation under control so
you can focus you will utilise these five
steps Whether yoursquore managing your kitchen
or your company you will need to collect and capture what has your attention clarify what if anything to do about it organise it according to what it means to you review and reflect upon it in relation to
Todayrsquos evolving CFO is often caught between the world of business set-up generating revenue managing employees and building strong company infrastructure When can things actually get done What can one do to boost productivity and master workflow World-renowned business coach David Allen has the answers
PRODUCTIvITy PRINCIPLES WITH
DAvID ALLEN
63
David Allen INTERVIEW
wwwthecfomecom
those are greatly subvertedHow does one maintain a fair balance between the time spent planning and actually getting things doneYou simply need to spend just the amount of time you need to to trust that what you are getting done is the right thing to be getting done in the moment It takes as long as it takes to get to that point Why would you do anything less
How can one apply your core productivity and workflow principles to todayrsquos technologically driven environmentThe principles and their techniques are system-independent Whether you have meaningful input from the Internet your smartphone or a conversation in the hall you must engage with it equally Technology has simply increased the flow of input and ease of distraction in your world
There is a lot of talk about how connected wersquove become and how connectivity is driving tremendous business growth Does connectivity actually come with its fair share of downsides
Connectivity is obviously a two-edged sword We can have intimate productive and creative interaction instantly with someone on the other side of the world and we can just as easily be distracted and seduced into those engagements when they may not be the best use of our attention and resources Donrsquot shoot the medium Itrsquos all simply bringing attention to your clarity of direction and priorities or lack thereof
Could you share a few quick tips with our readers to instantly boost productivityWrite everything down that has your attention Decide the very next actions required to get closure on all of them Any next actions that require less than two minutes do instantly Park reminders of everything else somewhere that yoursquoll see when you can do something about them
We are currently facing a massive information overload What are some basic principles you could suggest to mentally organise such large amounts of dataConstantly ask yourself Where am I going Whatrsquos important and rewarding to me Is this information
the whole and then engage your resources with intuitive trust
As a CFO how can you transfer efficient workflow management skills to your employees Itrsquos very difficult to legislate processes for individuals ndash you can really only hold them accountable for their results But if you are managing your own commitments and intersections with them with integrity and rigour it will automatically force your team to ldquostep up to the platerdquo in their own behaviours in order to meet your standards If you request their complete list of their company projects and they canrsquot produce it thatrsquos a sign theyrsquore not in control If they make a commitment to you that they havenrsquot kept thatrsquos data about their performance GTD is simply about good operational business practices
With so many planning and organising activities in your methodology is there a risk of losing spontaneity as a strategistThe reason for these best practices is to optimise freedom creativity and spontaneity Without them
ldquoBut if you are manag-ing your own com-mitments and intersec-tions with them with integrity and rigour it will automatical-ly force them to ldquostep up to the platerdquo in their own behaviours in order to meet your standardsrdquo
64 wwwthecfomecom
supporting that Park whatever you find potentially meaningful somewhere that is easy to access when needed
Being an entrepreneur is a non-stop job How do you ensure that you have an adequate work-life balance Pay attention to what has your attentionmdashwith regard to anything Your health relationships career finances etc Notice when something might be ldquooffrdquo and make good decisions about what you need to do to get it back ldquoonrdquo again
Does your work teach people to be efficient or effective In essence they are the same thing Effective choices are generated by efficiency on a higher level If you want to implement strategy most effectively it demands utilising your resources optimally which is efficiency
Does motivation actually improve quality of work or purely quantityDepends on the focus of the motivation You can be motivated to work harder and you can be motivated to work smarter
What is your favourite productivity mantra that
you implement in your day-to-day lifeUsing my own in-basket and note-taking devices to capture potentially meaningful and valuable ideas and soon afterwards clearing all of them out by deciding what to do about them if anything
Your books seminars and other work inspires many individuals and businesses Who is your personal inspiration or role model I have many about many different aspects of my life The only person though that I ultimately trust as my best guide is my higher self which I try to access as frequently and clearly as I can
Finally what advice would you give to current business owners and aspiring entrepreneurs looking to gain complete control of their life and businessCapture what has your attention clarify what you need to do about it to get it off your mind organise the inventory of all your commitments at all levels review and reflect on all of that regularly relax and trust your inner wisdom to engage with the most appropriate thing in the moment
ldquoIf you want to implement strategy most effectively it demands utilising your resources optimallyrdquo
David Allen INTERVIEW
APPSTECH TALK
wwwthecfomecom 65
mAxImISE BUSINESS lsquoON-THE-GOrsquo WITH THESE HANDy APPS
ipAd SpECIAL
SAMSUNG UNvEILS GALAxY NOTE EDGE
Network
AP
Display
OS
Camera
Video
Audio
Additional Features
GoogleMobile Services
Connectivity
Sensor
Memory
Dimension
Battery
The availability of service may differ by country All functionality features specifications and other product information provided in this document including but not limited to the benefits design pricing components performance availability and capabilities of the product are subject to change without notice or obligation
Samsung Galaxy Note Edge Product Specifications
25G (GSM GPRS EDGE) 850 900 1800 1900 MHz3G (HSPA + 42Mbps) 850 900 1900 2100 MHz4G (LTE Cat 4 15050Mbps) or 4G(LTE Cat 6 30050Mbps)May differ by country and carrier
27 GHz Quad-Core Processor
56 inch (1419mm) Quad HD+ Super AMOLED (2560 x 1440 + 160)
Android 44 (KitKat)
Rear Facing 16 Mega pixel Auto Focus camera with Smart OISFront Facing 37 Mega pixel camera with f19Rear Facing Camera HDR (Rich tone) Selective Focus Rear-cam Selfie Beauty face Virtual Tour Shot ShotampMore Dual CameraFront Facing Camera Selfie Wide Selfie
Codec H264 MPEG-4 H263 VC-1 WMV7 WMV8 Sorenson Spark MP43 VP8 Recording amp Playback up to UHD
Codec MP3 AACAAC+eAAC+ WMA AMR-NBWB Vorbis FLAC()() Ultra High Quality Audio (~192KHz 24 bit) support
Multi WindowUltra Power Saving ModeVoice Recorder (Normal Mode Interview Mode Meeting Mode Voice Memo)Download BoosterS Health 35Dynamic Lock ScreenBriefingEdge screen UX Revolving Interaction Immersive apps(Camera Video S Note)Ticker board Express me Quick Tools Night Clock etc
Chrome Drive Photos Gmail Google Google+ Google Settings Hangouts Maps Play Books Play Games Play Newsstand Play Movie amp TV Play Music Play Store Voice Search YouTube
WiFi 80211 abgnac (HT80) MIMO PCIeGPS GLONASS BeidouNFC Bluetoothreg v 41 (BLE ANT+)IR LED (Remote Control) USB20 MHL 30
Gesture Accelerometer Geo-magnetic Gyroscope RGB IR-LEDProximity Barometer Hall Sensor Finger Scanner UV Heart Rate Monitoring SpO2 (Dependent on market)
32 64 GB Internal memory + microSD slot (up to 128GB)3GB RAM
1513 x 824 x 83mm 174g
Standard battery Li-ion 3000 mAh Fast Charging (Adaptive Fast Charging amp QC20)
wwwthecfomecom66
APPSTECH TALK
AIR DISPLAY
SQUARE REGISTER
Using this app you can connect your iPad to your computer and use it as an additional screen While working on an important presentation or sales proposal you can extend or mirror your computer screen on your iPad This app is compatible with both Mac and Windows computers Note that to use this feature you have to install Air Display on your iPad and a separate free app on your computer The computer and iPad also need to be on the same Wi-Fi network in order to work in-sync
For Mac users the app allows you to connect to up to four screens ndash all at the same time
Apart from the ability to convert your iPad into a wireless display whatrsquos also attractive about this app is that it allows you to control your computer wirelessly using your iPad
This fantastic application can serve as a mobile point of sale for your business It allows you to accept credit card payments ndash including Visa MasterCard Discover and American Express A transaction fee of 275 is charged for every time you swipe a card The sale amount is transferred to your account within two working days
Once you download the app you can sign up and register for a unique card reader solution called the lsquoSquare Readerrsquo (this is free) Square Reader encrypts all card details and ensures that the transaction is secure Once you receive your Square Reader you can connect it to your device and are all set
The application also offers added features such as transaction history connecting to a receipt printer creating employee logins and more
AED 3699
PRICE
Free
PRICE
wwwthecfomecom 67
APPSTECH TALK
DOCUSIGNHave you ever been in a situation where your employees need you to urgently sign a contract but arenrsquot able to physically reach you in time DocuSign solves this problem with its easy-to-use eSignature feature In three easy steps you can sign important documents and securely send them to your intended recipient
First you have to import the document to your device ndash this could be from Dropbox Google Drive or another select applications You then place your signature or any other important legal information you need to include such as initials Once you have finished working on the document send it back via e-mail
Whatrsquos particularly great about DocuSign is the great emphasis it puts on security ndash so that users donrsquot have to worry about getting into any legal trouble
Use DocuSign and never miss a deadline again
Free for basic version
PRICE
MPAYAn initiative by the Dubai eGovernment Department mPay is a simple application that allows you to make important payments Once yoursquove signed up and entered your payment details you are good to go You can pay your Dubai Electricity and Water Authority (DEWA) bills Etisalat utility bills Dubai Police fines Recharge SALIK and much more
A handy feature is its lsquoauto-rechargersquo option which you can use to set automatic payments
Free
PRICE
Opinion CIMAPERSONALITIES
wwwthecfomecom68
NEW HORIZONSBy geetu Ahuja Head of gCC at CIMA
The days of the traditional accountant working within a small community in a small town in a small market have long gone CFOs are now being referred to as Chief Frontier Officers as they travel from market to market overseeing their offices overseas This new expanded role has distinct advantages for both the company and the CFO who gain new skills and new insights from foreign branches a single hand at the helm of many markets provides business perspectives on a global scale and benchmarks across the board
On a personal level working abroad also has huge importance Robert Walters the specialist professional recruitment consultancy recently conducted a survey
of almost 2200 employees across a variety of professions exploring a number of topics which ranged from working practices and attitudes to careers The results highlighted some notable trends particularly for finance professionals
In career progression for example the survey showed that 50 of all accountants see working abroad as either lsquoessentialrsquo or lsquoextremely usefulrsquo to furthering their prospects more than banking professionals lawyers and IT workers ndash a strong indication of how accounting professionals are thinking about their future either within their existing company or with opportunities elsewhere
Accountants with globally recognised qualifications obviously have a greater chance of gaining some experience abroad and the lsquoGen Yrsquo professionals in particular seem ready to pack their bags In a CIMA study conducted in the UK last year over a third of those seeking employment in the
next two years will prioritise opportunities abroad over those in their home countries many of them enticed by the career incentives offered by the Middle East
How quickly can they land what seems to be their dream job What are the realities It may be that the move is simply from one branch to another and the only significant difference is a view from the window but for those expanding rather than changing their roles we have seen a very real need for a depth and breadth of knowledge never needed before
As geographical boundaries are pushed ever-wider a CFOrsquos responsibilities are pushed with them For many finance executives the understanding of their own patch of land is no longer enough they now have to be aware of foreign markets up to speed with foreign trends and au fait with foreign laws There is a need for a new commercial awareness in geography as well as philosophy
As geographical boundaries are pushed ever-wider a CFOrsquos responsibilities are pushed with them
John vargheseQampA
wwwthecfomecom 69
BUSINESSSET UP YOUR
IN THE UNITED ARAB EMIRATES
TO
WAREHOUSESOFFICES INDUSTRIAL LANDFLEXI
Quick and easy company set-up
Less than an hour drive from Dubai
Complete cost-effective packages including licences and facilities
100 foreign ownership
Zero income and corporate taxes
Eligibility for UAE Residence Visa
BUSINESS SET-UP SOLUTIONS STARTING FROM AED 15000 (USD 4000)
RAK FREE TRADE ZONE PROVIDES
RAK Free Trade Zone Authority - Government of Ras Al KhaimahUAE (Ras Al Khaimah) Tel +971 7 2041111 (Dubai) Tel +971 4 7041875 (Abu Dhabi) Tel +971 2 6994888
Germany (Cologne) - Turkey (Istanbul) - India (Mumbai)
Call +971 7 204 1111 Visit wwwrakftzcom Join rakftz
Although you may agree with us that therersquos a competency crisis within the account-ing profes-sion you may bewondering What does this haveto do with me
A practice partner should be or become a CMAreg (Certified Management Accountant) maintain professional certification by completing required Continuing Professional Education (CPE) hours and regularly read the IMA publications Strategic Finance and Management Accounting Quarterly
In addition there are a number of excellent resources that deal with topics covered in this article and that IMA makes available to its members
Strategic Finance PowerPacks(wwwimanetorg SFPowerPacks) These are resources focused on contemporary topics similar to those discussed earlier Current offerings include Risk Management Strategic Planning IT Skills amp Software and Internal Controls Each PowerPack includes a combination of resources such as research studies articles and links to webinars
Statements on Management Accounting (SMAs)(wwwimanetorgresources and_publicationsresearch_ studies_resourcesstatements on_management_accounting aspx) SMAs represent monographs classified into one of the following six categories Leadership Strategies and Ethics Technology Enablement Strategic Cost Management Business Performance Management Finance Governance Risk and Compliance and the Practice of Management Accounting Multiple items are available within each category For example the Practice of Management Accounting category includes (among other items)
49wwwthecfomecom
the Definition of Management Accounting and Implementing Shared Service Centres
Research Studies (wwwimanetorgresources_and_publicationsResearch_Studies_and_ResourcesAll_reportsaspx) The ldquoThoughtLeadershiprdquo section of IMArsquos website includes research covering a broad range of issues classified into seven categories For example under the ldquoGlobal Business Environmentrdquo category the following two research reports are available ldquoKey Differences Between IFRS and US GAAP Impact on Financial Reportingrdquo and ldquoCosting Methodologies and Cost Management Practices in the Peoplersquos Republic of Chinardquo
IMA Leadership Academy (www imanetorgprograms_events leadership_academyaspx) As described on the IMA website this programme is designed to assess a memberrsquos leadership status enhance that individualrsquos skills (principally through monthly webinars) and recognise leadership achievements These benefits are free to members
How You Can Make a Bigger Impact In addition to attending local regional and national IMA meetings consider inviting a small group of students to each chapter meeting This could be a wonderful (and relatively low-cost) option for mentoring aspiring accountants and finance professionals providing networking opportunities and introducing students to cutting-edge issues regarding the practice of management accounting Joining a university accounting
advisory group may be another way to influence the development of EPM in that institutionrsquos curriculum design
Other methods to enhance EPM in your organisation include (1) forming user groups within your company your local IMA chapter or your industry to review and share EPM experiences (2) encouraging advancement in the firm to be linked to EPM proficiency (3) focusing your companyrsquos recruiting efforts on candidates who display a background in andor understanding of EPM and (4) organising cross training within your company to enhance a mutual understanding of each otherrsquos respective roles
Finally visit the Competency CrisisTM website (http competencycrisisorg) set up by IMA to unite the accounting and finance constituencies professionals students employers academics and professorsmdashand explore competency issues through the lens of each stakeholder group The site is designed to ldquoencourage a discourse spur action and create a community dedicated to resolving the serious crisis of competency present in the professionrdquo Special sections of the website are devoted to educators students and employers professionals
Our Partners in Education Much like a practice partner an academic partner should be or become a CMA maintain professional accreditation by completing CPE hours and regularly read IMArsquos publications
Academic members of IMA can pursue and actively promote the CMA programme at their respective institutions
50 wwwthecfomecom
IMArsquos website contains helpful resources including an exam content overview content specification outlines for each of the two parts of the CMA exam and learning outcome statements The current exam covers some of the professional competencies represented in Figure 1 A summary of changes to exam content which will be effective in January 2015 is provided on the IMA website in News amp Media Relations which is located under ldquoAbout IMArdquo (See the press release dated March 24 2014) Other helpful resources include ldquoICMA Announces CMA Exam Content Changesrdquo in the April 2014 issue of Strategic Finance as well as ldquoManagement Accounting Career Readiness Shaping YOUR Curriculumrdquo
These forthcoming changes are based on the most recent IMA study of the knowledge and skills needed by management accountants from the view of CFOs controllers and other accountingfinance professionals from around the world
Also consider taking a group of your students to the IMA Student Leadership Conference held each November The Conference provides excellent networking opportunities for you your students and practicing professionals Students can learn firsthand from Conference presenters the challenges and opportunities facing finance and accounting professionals today
Moreover if your institution doesnrsquot currently have an IMA Student Chapter consider forming one One of the authors of this article David Stout reinstituted the student chapter at his school (Youngstown State University) after travelling with a group of his students to the IMA
Student Leadership Conference in Cleveland Ohio Through an IMA Student Chapter on campus students are able to work closely with a sponsoring local IMA chapter and bring to campus speakers who are experts in a wide range of topics including those discussed earlier in this article Each year student chapters compete for an Award of Excellence (AOE) and recognition as an Outstanding Student Chapter In addition IMA student members are able to engage in networking activities leadership training mentoring and community service programmesmdashall through their local chapter
You also might consider volunteering to serve as a Campus Advocate In this role yoursquoll represent IMA in all major matters of interest to your students (scholarship opportunities starting a student chapter mentoring and the like) and to your institution (for example leveraging IMA resources to advance the relevancy of the accounting curriculum use of educational case studies published in the IMA Educational Case Journal and access to IMArsquos ethics curriculum)
And if you havenrsquot yet done this ask IMA to endorse your accounting programme (information is available at www imanetorgeducator_resources indexaspx) This programme is designed to identify business curricula that meet the quality educational standards required to prepare students to earn the CMA designation Endorsement is based on an analysis of the curriculum and topics covered on the two-part CMA exam Currently 12 programmes have been endorsed
Finally if your school has an IMA Student Chapter consider participating in the annual IMA Student Case Competition where students are asked to propose a solution to a real world problem (Cases are solicited each year by Raef Lawson IMA VP of Research and Policy and IMA Professor in-Residence) Finalists make their presentations at IMArsquos Annual Conference amp Exposition before a set of judges consisting of accounting faculty members and practitioners Each year a new case is published in the August issue of Strategic Finance for students to use for that yearrsquos competition
Working TogetherIn this article we have summarised the changes that have affected the accounting profession and provided a competencies-based framework for guiding accounting educators in responding productively to those changes As a management accountant you know that implementing change in any organisation let alone within an entire profession never comes easily To be successful in overcoming our professionrsquos competency crisis IMArsquos practice and academic partners will need to assume leadership roles in defining enterprise performance management as the cornerstone of the accounting professionrsquos value proposition
This article was orginally published in the August 2014 issue of Strategic Finance It appears here with the permission of The Association of Accountants and financial professionals in Business
We need to educate ourselvesand future generations of account-ants so that as a collec-tive group we can deliver theexpanding set of com-petenciesdemanded in todayrsquos dynamicorgani-sational contexts
THE POWERFUL AND THRIFTY OFFICE ALL-ROUNDERS
The new ECOSYS M3560idn series will astound you With their print speeds of up to 60 pages per minute they are among the most productive A4 bw multifunctionals on the market We nevertheless managed to keep their ecological footprint and total cost of ownership impressively low by using our well-known ECOSYS technology and equipping the devices with our renowned long-life components The result Not only less waste and lower maintenance costs but also less hassle for you and all your colleagues You will also greatly appreciate the many customisation possibilities of the devices equipped with KYOCERArsquos open solution platform HyPAStrade as it allows you to tailor the device to your needs So yes we are proud of our new range of MFPs and can hardly wait to share their numerous benefits with you
For more information please contactKYOCERA Document Solutions Middle East | PB Box 500817 DubaiUAE | Tel +9714 4330 412 | Fax +9714 4231 944KYOCERA Document Solutions Europe BV - wwwkyoceradocumentsolutionseuKYOCERA Document Solutions Inc - wwwkyoceradocumentsolutionscom
52
ACCAINTERVIEW
wwwthecfomecom
GLOBAL By ASSOCIATION
across the region from our key employers and learning provider partners to our active and growing student and member base I want to understand their challenges and priorities and how ACCA can work with them to help support the economic success of the region
What can a CFO gain from working with ACCAThe ACCA qualification is about complete finance professionals For CFOs it brings the technical knowledge vital to business success complemented with the strategic management skills and ethical competence crucial to an organisationrsquos success As an organization ACCA in the UAE brings CFOs access to that local and global network of peers and expertise along with our leading research and insights that help them to keep up to date on the issues that matter most
Are there any initiatives in place to leverage the recently announced partnership with AAA
How are the ACCArsquos many years of activity being applied to the Middle EastACCA has now had a presence in the UAE for well over a decade During that time we have established strong relationships across the Middle East epitomised by the recent signing of our Strategic Partnership with AAA As a national body in choosing to partner with ACCA they recognised the local and global perspective we bring We are continuing to work with students members and employers across the Middle East to build their networks knowledge and business success through events research and insights and access to a growing number of online resources
Which initial priorities are among your key aims upon joining the organisationrsquos efforts in the UAEIn the first few months I hope to build on the success of the team in the UAE My priority will be to meet as many of our key stakeholders
The Association for Chartered Certified Accountants (ACCA) provides its services across a number of international borders The recent announcement of Lindsay Degouve de Nuncques as the new head of the Associationrsquos UAE chapter further exemplifies the ACCArsquos reach based on her previous work in the UK Nuncques shares here what she brings to the Middle East and just how globalisation has driven her ascent
53
ACCAINTERVIEW
wwwthecfomecom
The strategic partnership with AAA is the first of its kind in the region Students who complete the UAECA qualification will be entitled to both the AAA and ACCA designations and ACCA members in the UAE will also be eligible to apply for AAA membership This is a very exciting development in the market and together AAA and ACCA will be working to deliver maximum value to all our stakeholders from this partnership As we launch the UAECA qualification this activity will start in earnest
Which key industries will you be spotlighting in the Middle East in the months aheadOur experience of working across all sectors and levels of organisations globally gives ACCA a unique insight into all types of industries We will continue to be working with employers across the spectrum in the months ahead to help them gain the insight and make the connections that drive businesses to succeed at whatever they do
ldquoThe ACCA qualification is about complete finance professionals For CFOs it brings the technical knowledge vital to business success complemented with the strategic management skillsrdquo
54
Islamic FinanceMARKET OUTLOOK
wwwthecfomecom
In its 10th instalment the Forum is hosted in Dubai as a direct result of the UAErsquos increasing importance in the world of global Islamic finance
THE WORLD ISLAmIC ECONOmIC FORUm LANDS IN DUBAI
In Dubairsquos continued quest for leading the world across a range of spectrums the Emirate accelerated its desire to become the worldrsquos leading hub for Islamic finance by hosting the 10th installment of the World Islamic Economic Forum (WIEF) Delegates from dozens of countries attended to take part in a three-day event held at Madinat Jumeirah which rests alongside Dubairsquos gleaming coastline Held under the patronage of His Highness Sheikh Mohammed Bin Rashid Al Maktoum the
Vice President and Prime Minister of the UAE and Ruler of Dubai key speakers included The Honorary Dr Zeti Akhtar Aziz Governor of the Central Bank of Malaysia HE Kairat Kelimbetov Governor of the National Bank of Kazakhstan The Honorary Datorsquo Sri Mohd Najib Tun Abdul Razal Prime Minister of Malaysia and HE Xavier Bettel Prime Minister of the Grand Duchy of Luxembourg
Launched in 2006 in Malaysia WIEF has grown in tandem with the increased
Delegates from dozens of countries attended WIEF to take part in the three-day event
sophistication and reach of Islamic finance After a successful event in London in 2013 amidst increased interest in Islamic finance across Europe WIEF relocated to Dubai where the local business structure is keen to host halal finance
Said Hamad Buamim President and CEO Dubai Chamber of Commerce and Industry co-organisers of the event ldquo[The forum] is the start of a new chapter of cooperation between Dubai and the world as part of
55
Islamic FinanceMARKET OUTLOOK
wwwthecfomecom
Dubai Capital of Islamic Economy visionhellipestablishing a unified regulatory authority to provide the framework for standards across halal industries will significantly accelerate growth Likewise we need to see increased cooperation and partnership between the public and private sectors This is already happening with great success here in Dubairdquo
The order of global cooperation needed to facilitate growth across the Islamic finance world was more than apparent at WIEF based on how many differing nations were represented at the event The exhibitorrsquos hall was populated with a number of key Malaysian stands representative of the Southeast Asianrsquos ranking as the global leader in Islamic finance Also present were companies from Saudi Arabia also a key locality in the worldrsquos halal industries An interesting yet prescient presence was of attendees from South Korea a nation which is eager to participate in Islamic finance and will be hosting the WIEF Pyeongchang Roundtable in December 2014
ldquoGangwon is a province located in Korea which is very interested in new business opportunities Wersquove realised the strength of the Islamic economy and have come here with many different companies The first type is based in real estate investment We also have companies which want to export their products to the Islamic economy based on their halal qualities And Gangwon will also be hosting the Winter
ldquoKorea is very interested in the strength of the Islamic economy and wants to export its products based on their halal qualitiesrdquo
56 wwwthecfomecom
$247trillionProjected value of halal products industry in lsquo18
125Muslim percentage of global tourism expenditure
STAT FACTSOlympics in 2018 and are presently seeking investments for this as wellrdquo said Seong-hun Kim a member of Gangwon Province Governmentrsquos Export Support Team
Dubai proved to be an excellent place for the event considering how well the UAE is able to so regularly corral international cooperation A key sign of this was witnessed recently when Luxembourg now considered the third most important base for Islamic finance globally opened a finance office in Dubai International Finance Centre The European nation also opened a euro200 sukuk earlier this year which was quickly oversubscribed
The prime minister of Luxembourg offered the WIEF audience a riveting speech which detailed just how international the Forum has become whilst encouraging more of the world to support the growing influence of Islamic finance
Said Bettel ldquoWe need to innovate more economic partnerships for growth We sometimes need to reengineer relationships but also have to make sure these relationships remain sustainable Growth in one country also brings growth to others as long as this is guided by free market initiatives Free trade and free flow of capital combined with innovation leads to prosperity We have all gathered here in Dubai to explore the future of Islamic finance and Luxembourg is also a pioneer of Islamic finance in Europe The Islamic financial sector has a major role to play in continued global growthrdquo
The Islamic Corporation for the Development of the Private Sector (ICD) is based in the Kingdom of Saudi Arabia where it manages an international fund worth $2 billion half of which is available for subscription With shareholders in more than 50 countries and a sovereign sukuk fund recently launched in West Africa the ICDrsquos CEO Khaled M Al Aboodi attended WIEF this year excited to participate in the global event
How does the ICD approach its attendance at the World Islamic Economic ForumI think the Forum is one of the best places for discussing the financial issues of the OEC member countries It has been around for ten years and has grown to become a very important platform for discussion Wersquore here to attend and listen but also to network Itrsquos a great networking platform and a place to share views whilst letting everyone know what we have to offer
How has Islamic finance changed over the yearsOf course itrsquos growing in a large scale Some of it actually needs more support particularly with respect to regulatory frameworks Wersquore trying to partner with many international organisations like the IMF to try to provide support to countries to adapt regulation for Islamic finance Sukuk issuance is one of the biggest issues that needs to be addressed because there is a huge amount of liquidity in this arena Due to issues related to regulation sukuk issuance can be costly But with the regulation we are confident it will be on a level playing field with other forms of finance Compliance is a major area where more work can be done The Forum started with a roundtable on sukuk which shows how helpful WIEF has been over the years
What type of work does ICD do internationallyICD helped the government of Senegal to issue the first sovereign sukuk This was successfully issued last summer Progressing in this manner is something wersquod like to see continue across West Africa in order to utilise its resources with aiding development in the region in mind
QampA WITH KHALED M AL ABOODI CEO OF ICD
Islamic FinanceMARKET OUTLOOK
OFFICIAL SPONSORS
ENDORSED BY OFFICIAL HOST OFFICIAL
COMMUNICATIONS PARTNER
MEYDAN HOTEL DUBAI UAE19 - 20 NOVEMBER 2014
WOMENOMICSthe next emerging market
TAKE PART in making change happen UNITE with business and through leaders from across the globe
PARTICIPATE to the expansion of a modern and inclusive economy
58
Gautam PradhanINTERVIEW
wwwthecfomecom
SUCCESS BEyOND BOUNDARIES
in other management roles such as strategic decision making mentoring and leading efficiency and productivity across a range of other departments and functions as well as a being a catalyst in ensuring that the boardrsquos vision for the organisation is achieved
A significant percentage of NMDCrsquos shares are owned publicly Does the CFO play a role in balancing the interests of the shareholdersAs a CFO balancing the shareholdersrsquo interests is definitely part of my responsibility In order to achieve this goal there needs to be a careful evaluation of each decision while keeping the short-term and long-term goals of the company in mind At NMDC we actively implement a system where we utilise a balance scorecard as a method of ensuring that all our primary objectives are met yet at the same time continuously enhance our relationships with our shareholders
NMDC has completed various projects across the Emirates Are there plans to move abroadAs NMDC moves towards becoming an international player our strategic expansion plans are focused in areas within the GCC region and India In line with this strategy we opened
How has a company with such a unique set of deliverables grown so consistently over the yearsOur organisation strongly believes that the core to our strength is the people process and equipment A strategic decision led by our Board of Directors and the senior management has been implemented that required us to consistently invest in these three aspects to help expand our business beyond the territorial boundaries of the UAE and at the same time enhance what we can offer which is relevant to these segments We attribute our success to the efforts which every employee contributes We also strongly believe in the ldquoWe can make it happenrdquo principle The management raises the index of performance while setting SMART objectives within the organisation and encouraging the employees to achieve them
How has your position as the CFO changed over NMDCrsquos 35 years of operationAs the market evolves and business dynamics change my role as the CFO has become complex and more challenging A few years back I was mainly focused on bookkeeping accounting and other financial responsibilities such as arranging bank facilities But moving forward I became more involved
The UAE is progressively becoming a hub for world-class infrastructure The country has duly impressed the rest of the globe with noteworthy land developments showcased across the emirates Among the remarkable landscapes found in Abu Dhabi are the Corniche Beach Yas Island and Sir Baniyas Island Behind these successful projects is NMDC the dredging division of Abu Dhabi National Oil Company (ADNOC)
In an interview with CFO Magazine Gautam Pradhan Chief Financial Officer NMDC shares an exclusive look into the companyrsquos international blueprint for growth and his dynamic role as a strategic leader of one of the best in dredging and marine construction in the Middle East
59
Gautam PradhanINTERVIEW
wwwthecfomecom
branches in Qatar Bahrain Oman and India This has paid rich dividends recently as projects of strategic importance are bagged in Qatar and Bahrain Furthermore NMDC (UAE) has recently played a key role as a leader of an international consortium with Royal Boskalis Westminister (Netherlands) and Jan De Nul Group (Belgium) for the awarding of the Suez Canal Dredging project in Egypt Moving forward we have devised a strategic approach that will enable us to play a key role in the development of Indiarsquos marine infrastructure
What are the global strategies that are part of the CFOrsquos responsibilitiesAs CFO understanding the macro economic scenario risk analysis and mitigating those risks are all a part of my responsibilities I also have to have a proper comprehension
ldquoA few years back I was mainly focused on financial responsibilities moving forward I became more involved in strategic decision making mentoring and leading productivityrdquo
Gautam PradhanINTERVIEW
60 wwwthecfomecom
of the challenges faced by the company in terms of dealing with foreign contracts direct and indirect taxes and hedging and managing the integration process These are essential to enhance shareholders wealth and mitigate undue risk
How significant is accountancy for NMDC in its operations Why exactlyAccountancy is the lifeline of any company it does not only record the finances it also reflects the health of the organisation The MIS reports analysis trends and statistical information go a long way toward effectively providing
the diagnostic approach essential for the company
How have NMDCrsquos environmental activities helped the companyrsquos bottom lineNMDCrsquos work is well-synchronised with our environmental activities and specifically with nature Our activities are closely linked to sand and water and we view such activities with strategic importance Projects such as increasing water supply to mangroves and beach nourishment help us support the environmental activities while adding to our bottom line
ldquoAccountancy is the lifeline of any company it does not only record the finances it also reflects the health of the organisationrdquo
A burgeoning slice of Abu Dhabi coastline
The largest business awards
in the GCC30th November Dubai
nominate now at wwwstarsofbusinessawardscom
Stars of Business has become an iconic awards brand like no other in the region It recognizes the very best SMEs across 26 business categories Itrsquos universally respected as scientifically assessed and unimpeachably judged
327000 SMEs across the UAE$234 billion estimated total revenue of the SME sector4974 Awards entries in 20131856 Individual company applicants
Presenting Partner Strategic SME Partner Gold Sponsor Gold Sponsor VIP Hospitality Partner Supporting Partner
Trade Facilitator PartnerTrade Credit PartnerLogistics Partner
Institutional Partner Institutional Partner Event Partner
OrganiserPublisherMedia Partner Media PartnerPort Authority Partner
62
David Allen INTERVIEW
wwwthecfomecom
What went into completing your bestseller ndash Getting Things Done (GTD)After twenty years of researching developing and implementing a methodology for achieving stress-free productivity based upon
thousands of hours spent desk-side with
some of the best brightest and busiest people in the world I decided to write the manual for it Thatrsquos what Getting Things Done is
What are the five phases of mastering workflowIn order to get
any situation under control so
you can focus you will utilise these five
steps Whether yoursquore managing your kitchen
or your company you will need to collect and capture what has your attention clarify what if anything to do about it organise it according to what it means to you review and reflect upon it in relation to
Todayrsquos evolving CFO is often caught between the world of business set-up generating revenue managing employees and building strong company infrastructure When can things actually get done What can one do to boost productivity and master workflow World-renowned business coach David Allen has the answers
PRODUCTIvITy PRINCIPLES WITH
DAvID ALLEN
63
David Allen INTERVIEW
wwwthecfomecom
those are greatly subvertedHow does one maintain a fair balance between the time spent planning and actually getting things doneYou simply need to spend just the amount of time you need to to trust that what you are getting done is the right thing to be getting done in the moment It takes as long as it takes to get to that point Why would you do anything less
How can one apply your core productivity and workflow principles to todayrsquos technologically driven environmentThe principles and their techniques are system-independent Whether you have meaningful input from the Internet your smartphone or a conversation in the hall you must engage with it equally Technology has simply increased the flow of input and ease of distraction in your world
There is a lot of talk about how connected wersquove become and how connectivity is driving tremendous business growth Does connectivity actually come with its fair share of downsides
Connectivity is obviously a two-edged sword We can have intimate productive and creative interaction instantly with someone on the other side of the world and we can just as easily be distracted and seduced into those engagements when they may not be the best use of our attention and resources Donrsquot shoot the medium Itrsquos all simply bringing attention to your clarity of direction and priorities or lack thereof
Could you share a few quick tips with our readers to instantly boost productivityWrite everything down that has your attention Decide the very next actions required to get closure on all of them Any next actions that require less than two minutes do instantly Park reminders of everything else somewhere that yoursquoll see when you can do something about them
We are currently facing a massive information overload What are some basic principles you could suggest to mentally organise such large amounts of dataConstantly ask yourself Where am I going Whatrsquos important and rewarding to me Is this information
the whole and then engage your resources with intuitive trust
As a CFO how can you transfer efficient workflow management skills to your employees Itrsquos very difficult to legislate processes for individuals ndash you can really only hold them accountable for their results But if you are managing your own commitments and intersections with them with integrity and rigour it will automatically force your team to ldquostep up to the platerdquo in their own behaviours in order to meet your standards If you request their complete list of their company projects and they canrsquot produce it thatrsquos a sign theyrsquore not in control If they make a commitment to you that they havenrsquot kept thatrsquos data about their performance GTD is simply about good operational business practices
With so many planning and organising activities in your methodology is there a risk of losing spontaneity as a strategistThe reason for these best practices is to optimise freedom creativity and spontaneity Without them
ldquoBut if you are manag-ing your own com-mitments and intersec-tions with them with integrity and rigour it will automatical-ly force them to ldquostep up to the platerdquo in their own behaviours in order to meet your standardsrdquo
64 wwwthecfomecom
supporting that Park whatever you find potentially meaningful somewhere that is easy to access when needed
Being an entrepreneur is a non-stop job How do you ensure that you have an adequate work-life balance Pay attention to what has your attentionmdashwith regard to anything Your health relationships career finances etc Notice when something might be ldquooffrdquo and make good decisions about what you need to do to get it back ldquoonrdquo again
Does your work teach people to be efficient or effective In essence they are the same thing Effective choices are generated by efficiency on a higher level If you want to implement strategy most effectively it demands utilising your resources optimally which is efficiency
Does motivation actually improve quality of work or purely quantityDepends on the focus of the motivation You can be motivated to work harder and you can be motivated to work smarter
What is your favourite productivity mantra that
you implement in your day-to-day lifeUsing my own in-basket and note-taking devices to capture potentially meaningful and valuable ideas and soon afterwards clearing all of them out by deciding what to do about them if anything
Your books seminars and other work inspires many individuals and businesses Who is your personal inspiration or role model I have many about many different aspects of my life The only person though that I ultimately trust as my best guide is my higher self which I try to access as frequently and clearly as I can
Finally what advice would you give to current business owners and aspiring entrepreneurs looking to gain complete control of their life and businessCapture what has your attention clarify what you need to do about it to get it off your mind organise the inventory of all your commitments at all levels review and reflect on all of that regularly relax and trust your inner wisdom to engage with the most appropriate thing in the moment
ldquoIf you want to implement strategy most effectively it demands utilising your resources optimallyrdquo
David Allen INTERVIEW
APPSTECH TALK
wwwthecfomecom 65
mAxImISE BUSINESS lsquoON-THE-GOrsquo WITH THESE HANDy APPS
ipAd SpECIAL
SAMSUNG UNvEILS GALAxY NOTE EDGE
Network
AP
Display
OS
Camera
Video
Audio
Additional Features
GoogleMobile Services
Connectivity
Sensor
Memory
Dimension
Battery
The availability of service may differ by country All functionality features specifications and other product information provided in this document including but not limited to the benefits design pricing components performance availability and capabilities of the product are subject to change without notice or obligation
Samsung Galaxy Note Edge Product Specifications
25G (GSM GPRS EDGE) 850 900 1800 1900 MHz3G (HSPA + 42Mbps) 850 900 1900 2100 MHz4G (LTE Cat 4 15050Mbps) or 4G(LTE Cat 6 30050Mbps)May differ by country and carrier
27 GHz Quad-Core Processor
56 inch (1419mm) Quad HD+ Super AMOLED (2560 x 1440 + 160)
Android 44 (KitKat)
Rear Facing 16 Mega pixel Auto Focus camera with Smart OISFront Facing 37 Mega pixel camera with f19Rear Facing Camera HDR (Rich tone) Selective Focus Rear-cam Selfie Beauty face Virtual Tour Shot ShotampMore Dual CameraFront Facing Camera Selfie Wide Selfie
Codec H264 MPEG-4 H263 VC-1 WMV7 WMV8 Sorenson Spark MP43 VP8 Recording amp Playback up to UHD
Codec MP3 AACAAC+eAAC+ WMA AMR-NBWB Vorbis FLAC()() Ultra High Quality Audio (~192KHz 24 bit) support
Multi WindowUltra Power Saving ModeVoice Recorder (Normal Mode Interview Mode Meeting Mode Voice Memo)Download BoosterS Health 35Dynamic Lock ScreenBriefingEdge screen UX Revolving Interaction Immersive apps(Camera Video S Note)Ticker board Express me Quick Tools Night Clock etc
Chrome Drive Photos Gmail Google Google+ Google Settings Hangouts Maps Play Books Play Games Play Newsstand Play Movie amp TV Play Music Play Store Voice Search YouTube
WiFi 80211 abgnac (HT80) MIMO PCIeGPS GLONASS BeidouNFC Bluetoothreg v 41 (BLE ANT+)IR LED (Remote Control) USB20 MHL 30
Gesture Accelerometer Geo-magnetic Gyroscope RGB IR-LEDProximity Barometer Hall Sensor Finger Scanner UV Heart Rate Monitoring SpO2 (Dependent on market)
32 64 GB Internal memory + microSD slot (up to 128GB)3GB RAM
1513 x 824 x 83mm 174g
Standard battery Li-ion 3000 mAh Fast Charging (Adaptive Fast Charging amp QC20)
wwwthecfomecom66
APPSTECH TALK
AIR DISPLAY
SQUARE REGISTER
Using this app you can connect your iPad to your computer and use it as an additional screen While working on an important presentation or sales proposal you can extend or mirror your computer screen on your iPad This app is compatible with both Mac and Windows computers Note that to use this feature you have to install Air Display on your iPad and a separate free app on your computer The computer and iPad also need to be on the same Wi-Fi network in order to work in-sync
For Mac users the app allows you to connect to up to four screens ndash all at the same time
Apart from the ability to convert your iPad into a wireless display whatrsquos also attractive about this app is that it allows you to control your computer wirelessly using your iPad
This fantastic application can serve as a mobile point of sale for your business It allows you to accept credit card payments ndash including Visa MasterCard Discover and American Express A transaction fee of 275 is charged for every time you swipe a card The sale amount is transferred to your account within two working days
Once you download the app you can sign up and register for a unique card reader solution called the lsquoSquare Readerrsquo (this is free) Square Reader encrypts all card details and ensures that the transaction is secure Once you receive your Square Reader you can connect it to your device and are all set
The application also offers added features such as transaction history connecting to a receipt printer creating employee logins and more
AED 3699
PRICE
Free
PRICE
wwwthecfomecom 67
APPSTECH TALK
DOCUSIGNHave you ever been in a situation where your employees need you to urgently sign a contract but arenrsquot able to physically reach you in time DocuSign solves this problem with its easy-to-use eSignature feature In three easy steps you can sign important documents and securely send them to your intended recipient
First you have to import the document to your device ndash this could be from Dropbox Google Drive or another select applications You then place your signature or any other important legal information you need to include such as initials Once you have finished working on the document send it back via e-mail
Whatrsquos particularly great about DocuSign is the great emphasis it puts on security ndash so that users donrsquot have to worry about getting into any legal trouble
Use DocuSign and never miss a deadline again
Free for basic version
PRICE
MPAYAn initiative by the Dubai eGovernment Department mPay is a simple application that allows you to make important payments Once yoursquove signed up and entered your payment details you are good to go You can pay your Dubai Electricity and Water Authority (DEWA) bills Etisalat utility bills Dubai Police fines Recharge SALIK and much more
A handy feature is its lsquoauto-rechargersquo option which you can use to set automatic payments
Free
PRICE
Opinion CIMAPERSONALITIES
wwwthecfomecom68
NEW HORIZONSBy geetu Ahuja Head of gCC at CIMA
The days of the traditional accountant working within a small community in a small town in a small market have long gone CFOs are now being referred to as Chief Frontier Officers as they travel from market to market overseeing their offices overseas This new expanded role has distinct advantages for both the company and the CFO who gain new skills and new insights from foreign branches a single hand at the helm of many markets provides business perspectives on a global scale and benchmarks across the board
On a personal level working abroad also has huge importance Robert Walters the specialist professional recruitment consultancy recently conducted a survey
of almost 2200 employees across a variety of professions exploring a number of topics which ranged from working practices and attitudes to careers The results highlighted some notable trends particularly for finance professionals
In career progression for example the survey showed that 50 of all accountants see working abroad as either lsquoessentialrsquo or lsquoextremely usefulrsquo to furthering their prospects more than banking professionals lawyers and IT workers ndash a strong indication of how accounting professionals are thinking about their future either within their existing company or with opportunities elsewhere
Accountants with globally recognised qualifications obviously have a greater chance of gaining some experience abroad and the lsquoGen Yrsquo professionals in particular seem ready to pack their bags In a CIMA study conducted in the UK last year over a third of those seeking employment in the
next two years will prioritise opportunities abroad over those in their home countries many of them enticed by the career incentives offered by the Middle East
How quickly can they land what seems to be their dream job What are the realities It may be that the move is simply from one branch to another and the only significant difference is a view from the window but for those expanding rather than changing their roles we have seen a very real need for a depth and breadth of knowledge never needed before
As geographical boundaries are pushed ever-wider a CFOrsquos responsibilities are pushed with them For many finance executives the understanding of their own patch of land is no longer enough they now have to be aware of foreign markets up to speed with foreign trends and au fait with foreign laws There is a need for a new commercial awareness in geography as well as philosophy
As geographical boundaries are pushed ever-wider a CFOrsquos responsibilities are pushed with them
John vargheseQampA
wwwthecfomecom 69
BUSINESSSET UP YOUR
IN THE UNITED ARAB EMIRATES
TO
WAREHOUSESOFFICES INDUSTRIAL LANDFLEXI
Quick and easy company set-up
Less than an hour drive from Dubai
Complete cost-effective packages including licences and facilities
100 foreign ownership
Zero income and corporate taxes
Eligibility for UAE Residence Visa
BUSINESS SET-UP SOLUTIONS STARTING FROM AED 15000 (USD 4000)
RAK FREE TRADE ZONE PROVIDES
RAK Free Trade Zone Authority - Government of Ras Al KhaimahUAE (Ras Al Khaimah) Tel +971 7 2041111 (Dubai) Tel +971 4 7041875 (Abu Dhabi) Tel +971 2 6994888
Germany (Cologne) - Turkey (Istanbul) - India (Mumbai)
Call +971 7 204 1111 Visit wwwrakftzcom Join rakftz
50 wwwthecfomecom
IMArsquos website contains helpful resources including an exam content overview content specification outlines for each of the two parts of the CMA exam and learning outcome statements The current exam covers some of the professional competencies represented in Figure 1 A summary of changes to exam content which will be effective in January 2015 is provided on the IMA website in News amp Media Relations which is located under ldquoAbout IMArdquo (See the press release dated March 24 2014) Other helpful resources include ldquoICMA Announces CMA Exam Content Changesrdquo in the April 2014 issue of Strategic Finance as well as ldquoManagement Accounting Career Readiness Shaping YOUR Curriculumrdquo
These forthcoming changes are based on the most recent IMA study of the knowledge and skills needed by management accountants from the view of CFOs controllers and other accountingfinance professionals from around the world
Also consider taking a group of your students to the IMA Student Leadership Conference held each November The Conference provides excellent networking opportunities for you your students and practicing professionals Students can learn firsthand from Conference presenters the challenges and opportunities facing finance and accounting professionals today
Moreover if your institution doesnrsquot currently have an IMA Student Chapter consider forming one One of the authors of this article David Stout reinstituted the student chapter at his school (Youngstown State University) after travelling with a group of his students to the IMA
Student Leadership Conference in Cleveland Ohio Through an IMA Student Chapter on campus students are able to work closely with a sponsoring local IMA chapter and bring to campus speakers who are experts in a wide range of topics including those discussed earlier in this article Each year student chapters compete for an Award of Excellence (AOE) and recognition as an Outstanding Student Chapter In addition IMA student members are able to engage in networking activities leadership training mentoring and community service programmesmdashall through their local chapter
You also might consider volunteering to serve as a Campus Advocate In this role yoursquoll represent IMA in all major matters of interest to your students (scholarship opportunities starting a student chapter mentoring and the like) and to your institution (for example leveraging IMA resources to advance the relevancy of the accounting curriculum use of educational case studies published in the IMA Educational Case Journal and access to IMArsquos ethics curriculum)
And if you havenrsquot yet done this ask IMA to endorse your accounting programme (information is available at www imanetorgeducator_resources indexaspx) This programme is designed to identify business curricula that meet the quality educational standards required to prepare students to earn the CMA designation Endorsement is based on an analysis of the curriculum and topics covered on the two-part CMA exam Currently 12 programmes have been endorsed
Finally if your school has an IMA Student Chapter consider participating in the annual IMA Student Case Competition where students are asked to propose a solution to a real world problem (Cases are solicited each year by Raef Lawson IMA VP of Research and Policy and IMA Professor in-Residence) Finalists make their presentations at IMArsquos Annual Conference amp Exposition before a set of judges consisting of accounting faculty members and practitioners Each year a new case is published in the August issue of Strategic Finance for students to use for that yearrsquos competition
Working TogetherIn this article we have summarised the changes that have affected the accounting profession and provided a competencies-based framework for guiding accounting educators in responding productively to those changes As a management accountant you know that implementing change in any organisation let alone within an entire profession never comes easily To be successful in overcoming our professionrsquos competency crisis IMArsquos practice and academic partners will need to assume leadership roles in defining enterprise performance management as the cornerstone of the accounting professionrsquos value proposition
This article was orginally published in the August 2014 issue of Strategic Finance It appears here with the permission of The Association of Accountants and financial professionals in Business
We need to educate ourselvesand future generations of account-ants so that as a collec-tive group we can deliver theexpanding set of com-petenciesdemanded in todayrsquos dynamicorgani-sational contexts
THE POWERFUL AND THRIFTY OFFICE ALL-ROUNDERS
The new ECOSYS M3560idn series will astound you With their print speeds of up to 60 pages per minute they are among the most productive A4 bw multifunctionals on the market We nevertheless managed to keep their ecological footprint and total cost of ownership impressively low by using our well-known ECOSYS technology and equipping the devices with our renowned long-life components The result Not only less waste and lower maintenance costs but also less hassle for you and all your colleagues You will also greatly appreciate the many customisation possibilities of the devices equipped with KYOCERArsquos open solution platform HyPAStrade as it allows you to tailor the device to your needs So yes we are proud of our new range of MFPs and can hardly wait to share their numerous benefits with you
For more information please contactKYOCERA Document Solutions Middle East | PB Box 500817 DubaiUAE | Tel +9714 4330 412 | Fax +9714 4231 944KYOCERA Document Solutions Europe BV - wwwkyoceradocumentsolutionseuKYOCERA Document Solutions Inc - wwwkyoceradocumentsolutionscom
52
ACCAINTERVIEW
wwwthecfomecom
GLOBAL By ASSOCIATION
across the region from our key employers and learning provider partners to our active and growing student and member base I want to understand their challenges and priorities and how ACCA can work with them to help support the economic success of the region
What can a CFO gain from working with ACCAThe ACCA qualification is about complete finance professionals For CFOs it brings the technical knowledge vital to business success complemented with the strategic management skills and ethical competence crucial to an organisationrsquos success As an organization ACCA in the UAE brings CFOs access to that local and global network of peers and expertise along with our leading research and insights that help them to keep up to date on the issues that matter most
Are there any initiatives in place to leverage the recently announced partnership with AAA
How are the ACCArsquos many years of activity being applied to the Middle EastACCA has now had a presence in the UAE for well over a decade During that time we have established strong relationships across the Middle East epitomised by the recent signing of our Strategic Partnership with AAA As a national body in choosing to partner with ACCA they recognised the local and global perspective we bring We are continuing to work with students members and employers across the Middle East to build their networks knowledge and business success through events research and insights and access to a growing number of online resources
Which initial priorities are among your key aims upon joining the organisationrsquos efforts in the UAEIn the first few months I hope to build on the success of the team in the UAE My priority will be to meet as many of our key stakeholders
The Association for Chartered Certified Accountants (ACCA) provides its services across a number of international borders The recent announcement of Lindsay Degouve de Nuncques as the new head of the Associationrsquos UAE chapter further exemplifies the ACCArsquos reach based on her previous work in the UK Nuncques shares here what she brings to the Middle East and just how globalisation has driven her ascent
53
ACCAINTERVIEW
wwwthecfomecom
The strategic partnership with AAA is the first of its kind in the region Students who complete the UAECA qualification will be entitled to both the AAA and ACCA designations and ACCA members in the UAE will also be eligible to apply for AAA membership This is a very exciting development in the market and together AAA and ACCA will be working to deliver maximum value to all our stakeholders from this partnership As we launch the UAECA qualification this activity will start in earnest
Which key industries will you be spotlighting in the Middle East in the months aheadOur experience of working across all sectors and levels of organisations globally gives ACCA a unique insight into all types of industries We will continue to be working with employers across the spectrum in the months ahead to help them gain the insight and make the connections that drive businesses to succeed at whatever they do
ldquoThe ACCA qualification is about complete finance professionals For CFOs it brings the technical knowledge vital to business success complemented with the strategic management skillsrdquo
54
Islamic FinanceMARKET OUTLOOK
wwwthecfomecom
In its 10th instalment the Forum is hosted in Dubai as a direct result of the UAErsquos increasing importance in the world of global Islamic finance
THE WORLD ISLAmIC ECONOmIC FORUm LANDS IN DUBAI
In Dubairsquos continued quest for leading the world across a range of spectrums the Emirate accelerated its desire to become the worldrsquos leading hub for Islamic finance by hosting the 10th installment of the World Islamic Economic Forum (WIEF) Delegates from dozens of countries attended to take part in a three-day event held at Madinat Jumeirah which rests alongside Dubairsquos gleaming coastline Held under the patronage of His Highness Sheikh Mohammed Bin Rashid Al Maktoum the
Vice President and Prime Minister of the UAE and Ruler of Dubai key speakers included The Honorary Dr Zeti Akhtar Aziz Governor of the Central Bank of Malaysia HE Kairat Kelimbetov Governor of the National Bank of Kazakhstan The Honorary Datorsquo Sri Mohd Najib Tun Abdul Razal Prime Minister of Malaysia and HE Xavier Bettel Prime Minister of the Grand Duchy of Luxembourg
Launched in 2006 in Malaysia WIEF has grown in tandem with the increased
Delegates from dozens of countries attended WIEF to take part in the three-day event
sophistication and reach of Islamic finance After a successful event in London in 2013 amidst increased interest in Islamic finance across Europe WIEF relocated to Dubai where the local business structure is keen to host halal finance
Said Hamad Buamim President and CEO Dubai Chamber of Commerce and Industry co-organisers of the event ldquo[The forum] is the start of a new chapter of cooperation between Dubai and the world as part of
55
Islamic FinanceMARKET OUTLOOK
wwwthecfomecom
Dubai Capital of Islamic Economy visionhellipestablishing a unified regulatory authority to provide the framework for standards across halal industries will significantly accelerate growth Likewise we need to see increased cooperation and partnership between the public and private sectors This is already happening with great success here in Dubairdquo
The order of global cooperation needed to facilitate growth across the Islamic finance world was more than apparent at WIEF based on how many differing nations were represented at the event The exhibitorrsquos hall was populated with a number of key Malaysian stands representative of the Southeast Asianrsquos ranking as the global leader in Islamic finance Also present were companies from Saudi Arabia also a key locality in the worldrsquos halal industries An interesting yet prescient presence was of attendees from South Korea a nation which is eager to participate in Islamic finance and will be hosting the WIEF Pyeongchang Roundtable in December 2014
ldquoGangwon is a province located in Korea which is very interested in new business opportunities Wersquove realised the strength of the Islamic economy and have come here with many different companies The first type is based in real estate investment We also have companies which want to export their products to the Islamic economy based on their halal qualities And Gangwon will also be hosting the Winter
ldquoKorea is very interested in the strength of the Islamic economy and wants to export its products based on their halal qualitiesrdquo
56 wwwthecfomecom
$247trillionProjected value of halal products industry in lsquo18
125Muslim percentage of global tourism expenditure
STAT FACTSOlympics in 2018 and are presently seeking investments for this as wellrdquo said Seong-hun Kim a member of Gangwon Province Governmentrsquos Export Support Team
Dubai proved to be an excellent place for the event considering how well the UAE is able to so regularly corral international cooperation A key sign of this was witnessed recently when Luxembourg now considered the third most important base for Islamic finance globally opened a finance office in Dubai International Finance Centre The European nation also opened a euro200 sukuk earlier this year which was quickly oversubscribed
The prime minister of Luxembourg offered the WIEF audience a riveting speech which detailed just how international the Forum has become whilst encouraging more of the world to support the growing influence of Islamic finance
Said Bettel ldquoWe need to innovate more economic partnerships for growth We sometimes need to reengineer relationships but also have to make sure these relationships remain sustainable Growth in one country also brings growth to others as long as this is guided by free market initiatives Free trade and free flow of capital combined with innovation leads to prosperity We have all gathered here in Dubai to explore the future of Islamic finance and Luxembourg is also a pioneer of Islamic finance in Europe The Islamic financial sector has a major role to play in continued global growthrdquo
The Islamic Corporation for the Development of the Private Sector (ICD) is based in the Kingdom of Saudi Arabia where it manages an international fund worth $2 billion half of which is available for subscription With shareholders in more than 50 countries and a sovereign sukuk fund recently launched in West Africa the ICDrsquos CEO Khaled M Al Aboodi attended WIEF this year excited to participate in the global event
How does the ICD approach its attendance at the World Islamic Economic ForumI think the Forum is one of the best places for discussing the financial issues of the OEC member countries It has been around for ten years and has grown to become a very important platform for discussion Wersquore here to attend and listen but also to network Itrsquos a great networking platform and a place to share views whilst letting everyone know what we have to offer
How has Islamic finance changed over the yearsOf course itrsquos growing in a large scale Some of it actually needs more support particularly with respect to regulatory frameworks Wersquore trying to partner with many international organisations like the IMF to try to provide support to countries to adapt regulation for Islamic finance Sukuk issuance is one of the biggest issues that needs to be addressed because there is a huge amount of liquidity in this arena Due to issues related to regulation sukuk issuance can be costly But with the regulation we are confident it will be on a level playing field with other forms of finance Compliance is a major area where more work can be done The Forum started with a roundtable on sukuk which shows how helpful WIEF has been over the years
What type of work does ICD do internationallyICD helped the government of Senegal to issue the first sovereign sukuk This was successfully issued last summer Progressing in this manner is something wersquod like to see continue across West Africa in order to utilise its resources with aiding development in the region in mind
QampA WITH KHALED M AL ABOODI CEO OF ICD
Islamic FinanceMARKET OUTLOOK
OFFICIAL SPONSORS
ENDORSED BY OFFICIAL HOST OFFICIAL
COMMUNICATIONS PARTNER
MEYDAN HOTEL DUBAI UAE19 - 20 NOVEMBER 2014
WOMENOMICSthe next emerging market
TAKE PART in making change happen UNITE with business and through leaders from across the globe
PARTICIPATE to the expansion of a modern and inclusive economy
58
Gautam PradhanINTERVIEW
wwwthecfomecom
SUCCESS BEyOND BOUNDARIES
in other management roles such as strategic decision making mentoring and leading efficiency and productivity across a range of other departments and functions as well as a being a catalyst in ensuring that the boardrsquos vision for the organisation is achieved
A significant percentage of NMDCrsquos shares are owned publicly Does the CFO play a role in balancing the interests of the shareholdersAs a CFO balancing the shareholdersrsquo interests is definitely part of my responsibility In order to achieve this goal there needs to be a careful evaluation of each decision while keeping the short-term and long-term goals of the company in mind At NMDC we actively implement a system where we utilise a balance scorecard as a method of ensuring that all our primary objectives are met yet at the same time continuously enhance our relationships with our shareholders
NMDC has completed various projects across the Emirates Are there plans to move abroadAs NMDC moves towards becoming an international player our strategic expansion plans are focused in areas within the GCC region and India In line with this strategy we opened
How has a company with such a unique set of deliverables grown so consistently over the yearsOur organisation strongly believes that the core to our strength is the people process and equipment A strategic decision led by our Board of Directors and the senior management has been implemented that required us to consistently invest in these three aspects to help expand our business beyond the territorial boundaries of the UAE and at the same time enhance what we can offer which is relevant to these segments We attribute our success to the efforts which every employee contributes We also strongly believe in the ldquoWe can make it happenrdquo principle The management raises the index of performance while setting SMART objectives within the organisation and encouraging the employees to achieve them
How has your position as the CFO changed over NMDCrsquos 35 years of operationAs the market evolves and business dynamics change my role as the CFO has become complex and more challenging A few years back I was mainly focused on bookkeeping accounting and other financial responsibilities such as arranging bank facilities But moving forward I became more involved
The UAE is progressively becoming a hub for world-class infrastructure The country has duly impressed the rest of the globe with noteworthy land developments showcased across the emirates Among the remarkable landscapes found in Abu Dhabi are the Corniche Beach Yas Island and Sir Baniyas Island Behind these successful projects is NMDC the dredging division of Abu Dhabi National Oil Company (ADNOC)
In an interview with CFO Magazine Gautam Pradhan Chief Financial Officer NMDC shares an exclusive look into the companyrsquos international blueprint for growth and his dynamic role as a strategic leader of one of the best in dredging and marine construction in the Middle East
59
Gautam PradhanINTERVIEW
wwwthecfomecom
branches in Qatar Bahrain Oman and India This has paid rich dividends recently as projects of strategic importance are bagged in Qatar and Bahrain Furthermore NMDC (UAE) has recently played a key role as a leader of an international consortium with Royal Boskalis Westminister (Netherlands) and Jan De Nul Group (Belgium) for the awarding of the Suez Canal Dredging project in Egypt Moving forward we have devised a strategic approach that will enable us to play a key role in the development of Indiarsquos marine infrastructure
What are the global strategies that are part of the CFOrsquos responsibilitiesAs CFO understanding the macro economic scenario risk analysis and mitigating those risks are all a part of my responsibilities I also have to have a proper comprehension
ldquoA few years back I was mainly focused on financial responsibilities moving forward I became more involved in strategic decision making mentoring and leading productivityrdquo
Gautam PradhanINTERVIEW
60 wwwthecfomecom
of the challenges faced by the company in terms of dealing with foreign contracts direct and indirect taxes and hedging and managing the integration process These are essential to enhance shareholders wealth and mitigate undue risk
How significant is accountancy for NMDC in its operations Why exactlyAccountancy is the lifeline of any company it does not only record the finances it also reflects the health of the organisation The MIS reports analysis trends and statistical information go a long way toward effectively providing
the diagnostic approach essential for the company
How have NMDCrsquos environmental activities helped the companyrsquos bottom lineNMDCrsquos work is well-synchronised with our environmental activities and specifically with nature Our activities are closely linked to sand and water and we view such activities with strategic importance Projects such as increasing water supply to mangroves and beach nourishment help us support the environmental activities while adding to our bottom line
ldquoAccountancy is the lifeline of any company it does not only record the finances it also reflects the health of the organisationrdquo
A burgeoning slice of Abu Dhabi coastline
The largest business awards
in the GCC30th November Dubai
nominate now at wwwstarsofbusinessawardscom
Stars of Business has become an iconic awards brand like no other in the region It recognizes the very best SMEs across 26 business categories Itrsquos universally respected as scientifically assessed and unimpeachably judged
327000 SMEs across the UAE$234 billion estimated total revenue of the SME sector4974 Awards entries in 20131856 Individual company applicants
Presenting Partner Strategic SME Partner Gold Sponsor Gold Sponsor VIP Hospitality Partner Supporting Partner
Trade Facilitator PartnerTrade Credit PartnerLogistics Partner
Institutional Partner Institutional Partner Event Partner
OrganiserPublisherMedia Partner Media PartnerPort Authority Partner
62
David Allen INTERVIEW
wwwthecfomecom
What went into completing your bestseller ndash Getting Things Done (GTD)After twenty years of researching developing and implementing a methodology for achieving stress-free productivity based upon
thousands of hours spent desk-side with
some of the best brightest and busiest people in the world I decided to write the manual for it Thatrsquos what Getting Things Done is
What are the five phases of mastering workflowIn order to get
any situation under control so
you can focus you will utilise these five
steps Whether yoursquore managing your kitchen
or your company you will need to collect and capture what has your attention clarify what if anything to do about it organise it according to what it means to you review and reflect upon it in relation to
Todayrsquos evolving CFO is often caught between the world of business set-up generating revenue managing employees and building strong company infrastructure When can things actually get done What can one do to boost productivity and master workflow World-renowned business coach David Allen has the answers
PRODUCTIvITy PRINCIPLES WITH
DAvID ALLEN
63
David Allen INTERVIEW
wwwthecfomecom
those are greatly subvertedHow does one maintain a fair balance between the time spent planning and actually getting things doneYou simply need to spend just the amount of time you need to to trust that what you are getting done is the right thing to be getting done in the moment It takes as long as it takes to get to that point Why would you do anything less
How can one apply your core productivity and workflow principles to todayrsquos technologically driven environmentThe principles and their techniques are system-independent Whether you have meaningful input from the Internet your smartphone or a conversation in the hall you must engage with it equally Technology has simply increased the flow of input and ease of distraction in your world
There is a lot of talk about how connected wersquove become and how connectivity is driving tremendous business growth Does connectivity actually come with its fair share of downsides
Connectivity is obviously a two-edged sword We can have intimate productive and creative interaction instantly with someone on the other side of the world and we can just as easily be distracted and seduced into those engagements when they may not be the best use of our attention and resources Donrsquot shoot the medium Itrsquos all simply bringing attention to your clarity of direction and priorities or lack thereof
Could you share a few quick tips with our readers to instantly boost productivityWrite everything down that has your attention Decide the very next actions required to get closure on all of them Any next actions that require less than two minutes do instantly Park reminders of everything else somewhere that yoursquoll see when you can do something about them
We are currently facing a massive information overload What are some basic principles you could suggest to mentally organise such large amounts of dataConstantly ask yourself Where am I going Whatrsquos important and rewarding to me Is this information
the whole and then engage your resources with intuitive trust
As a CFO how can you transfer efficient workflow management skills to your employees Itrsquos very difficult to legislate processes for individuals ndash you can really only hold them accountable for their results But if you are managing your own commitments and intersections with them with integrity and rigour it will automatically force your team to ldquostep up to the platerdquo in their own behaviours in order to meet your standards If you request their complete list of their company projects and they canrsquot produce it thatrsquos a sign theyrsquore not in control If they make a commitment to you that they havenrsquot kept thatrsquos data about their performance GTD is simply about good operational business practices
With so many planning and organising activities in your methodology is there a risk of losing spontaneity as a strategistThe reason for these best practices is to optimise freedom creativity and spontaneity Without them
ldquoBut if you are manag-ing your own com-mitments and intersec-tions with them with integrity and rigour it will automatical-ly force them to ldquostep up to the platerdquo in their own behaviours in order to meet your standardsrdquo
64 wwwthecfomecom
supporting that Park whatever you find potentially meaningful somewhere that is easy to access when needed
Being an entrepreneur is a non-stop job How do you ensure that you have an adequate work-life balance Pay attention to what has your attentionmdashwith regard to anything Your health relationships career finances etc Notice when something might be ldquooffrdquo and make good decisions about what you need to do to get it back ldquoonrdquo again
Does your work teach people to be efficient or effective In essence they are the same thing Effective choices are generated by efficiency on a higher level If you want to implement strategy most effectively it demands utilising your resources optimally which is efficiency
Does motivation actually improve quality of work or purely quantityDepends on the focus of the motivation You can be motivated to work harder and you can be motivated to work smarter
What is your favourite productivity mantra that
you implement in your day-to-day lifeUsing my own in-basket and note-taking devices to capture potentially meaningful and valuable ideas and soon afterwards clearing all of them out by deciding what to do about them if anything
Your books seminars and other work inspires many individuals and businesses Who is your personal inspiration or role model I have many about many different aspects of my life The only person though that I ultimately trust as my best guide is my higher self which I try to access as frequently and clearly as I can
Finally what advice would you give to current business owners and aspiring entrepreneurs looking to gain complete control of their life and businessCapture what has your attention clarify what you need to do about it to get it off your mind organise the inventory of all your commitments at all levels review and reflect on all of that regularly relax and trust your inner wisdom to engage with the most appropriate thing in the moment
ldquoIf you want to implement strategy most effectively it demands utilising your resources optimallyrdquo
David Allen INTERVIEW
APPSTECH TALK
wwwthecfomecom 65
mAxImISE BUSINESS lsquoON-THE-GOrsquo WITH THESE HANDy APPS
ipAd SpECIAL
SAMSUNG UNvEILS GALAxY NOTE EDGE
Network
AP
Display
OS
Camera
Video
Audio
Additional Features
GoogleMobile Services
Connectivity
Sensor
Memory
Dimension
Battery
The availability of service may differ by country All functionality features specifications and other product information provided in this document including but not limited to the benefits design pricing components performance availability and capabilities of the product are subject to change without notice or obligation
Samsung Galaxy Note Edge Product Specifications
25G (GSM GPRS EDGE) 850 900 1800 1900 MHz3G (HSPA + 42Mbps) 850 900 1900 2100 MHz4G (LTE Cat 4 15050Mbps) or 4G(LTE Cat 6 30050Mbps)May differ by country and carrier
27 GHz Quad-Core Processor
56 inch (1419mm) Quad HD+ Super AMOLED (2560 x 1440 + 160)
Android 44 (KitKat)
Rear Facing 16 Mega pixel Auto Focus camera with Smart OISFront Facing 37 Mega pixel camera with f19Rear Facing Camera HDR (Rich tone) Selective Focus Rear-cam Selfie Beauty face Virtual Tour Shot ShotampMore Dual CameraFront Facing Camera Selfie Wide Selfie
Codec H264 MPEG-4 H263 VC-1 WMV7 WMV8 Sorenson Spark MP43 VP8 Recording amp Playback up to UHD
Codec MP3 AACAAC+eAAC+ WMA AMR-NBWB Vorbis FLAC()() Ultra High Quality Audio (~192KHz 24 bit) support
Multi WindowUltra Power Saving ModeVoice Recorder (Normal Mode Interview Mode Meeting Mode Voice Memo)Download BoosterS Health 35Dynamic Lock ScreenBriefingEdge screen UX Revolving Interaction Immersive apps(Camera Video S Note)Ticker board Express me Quick Tools Night Clock etc
Chrome Drive Photos Gmail Google Google+ Google Settings Hangouts Maps Play Books Play Games Play Newsstand Play Movie amp TV Play Music Play Store Voice Search YouTube
WiFi 80211 abgnac (HT80) MIMO PCIeGPS GLONASS BeidouNFC Bluetoothreg v 41 (BLE ANT+)IR LED (Remote Control) USB20 MHL 30
Gesture Accelerometer Geo-magnetic Gyroscope RGB IR-LEDProximity Barometer Hall Sensor Finger Scanner UV Heart Rate Monitoring SpO2 (Dependent on market)
32 64 GB Internal memory + microSD slot (up to 128GB)3GB RAM
1513 x 824 x 83mm 174g
Standard battery Li-ion 3000 mAh Fast Charging (Adaptive Fast Charging amp QC20)
wwwthecfomecom66
APPSTECH TALK
AIR DISPLAY
SQUARE REGISTER
Using this app you can connect your iPad to your computer and use it as an additional screen While working on an important presentation or sales proposal you can extend or mirror your computer screen on your iPad This app is compatible with both Mac and Windows computers Note that to use this feature you have to install Air Display on your iPad and a separate free app on your computer The computer and iPad also need to be on the same Wi-Fi network in order to work in-sync
For Mac users the app allows you to connect to up to four screens ndash all at the same time
Apart from the ability to convert your iPad into a wireless display whatrsquos also attractive about this app is that it allows you to control your computer wirelessly using your iPad
This fantastic application can serve as a mobile point of sale for your business It allows you to accept credit card payments ndash including Visa MasterCard Discover and American Express A transaction fee of 275 is charged for every time you swipe a card The sale amount is transferred to your account within two working days
Once you download the app you can sign up and register for a unique card reader solution called the lsquoSquare Readerrsquo (this is free) Square Reader encrypts all card details and ensures that the transaction is secure Once you receive your Square Reader you can connect it to your device and are all set
The application also offers added features such as transaction history connecting to a receipt printer creating employee logins and more
AED 3699
PRICE
Free
PRICE
wwwthecfomecom 67
APPSTECH TALK
DOCUSIGNHave you ever been in a situation where your employees need you to urgently sign a contract but arenrsquot able to physically reach you in time DocuSign solves this problem with its easy-to-use eSignature feature In three easy steps you can sign important documents and securely send them to your intended recipient
First you have to import the document to your device ndash this could be from Dropbox Google Drive or another select applications You then place your signature or any other important legal information you need to include such as initials Once you have finished working on the document send it back via e-mail
Whatrsquos particularly great about DocuSign is the great emphasis it puts on security ndash so that users donrsquot have to worry about getting into any legal trouble
Use DocuSign and never miss a deadline again
Free for basic version
PRICE
MPAYAn initiative by the Dubai eGovernment Department mPay is a simple application that allows you to make important payments Once yoursquove signed up and entered your payment details you are good to go You can pay your Dubai Electricity and Water Authority (DEWA) bills Etisalat utility bills Dubai Police fines Recharge SALIK and much more
A handy feature is its lsquoauto-rechargersquo option which you can use to set automatic payments
Free
PRICE
Opinion CIMAPERSONALITIES
wwwthecfomecom68
NEW HORIZONSBy geetu Ahuja Head of gCC at CIMA
The days of the traditional accountant working within a small community in a small town in a small market have long gone CFOs are now being referred to as Chief Frontier Officers as they travel from market to market overseeing their offices overseas This new expanded role has distinct advantages for both the company and the CFO who gain new skills and new insights from foreign branches a single hand at the helm of many markets provides business perspectives on a global scale and benchmarks across the board
On a personal level working abroad also has huge importance Robert Walters the specialist professional recruitment consultancy recently conducted a survey
of almost 2200 employees across a variety of professions exploring a number of topics which ranged from working practices and attitudes to careers The results highlighted some notable trends particularly for finance professionals
In career progression for example the survey showed that 50 of all accountants see working abroad as either lsquoessentialrsquo or lsquoextremely usefulrsquo to furthering their prospects more than banking professionals lawyers and IT workers ndash a strong indication of how accounting professionals are thinking about their future either within their existing company or with opportunities elsewhere
Accountants with globally recognised qualifications obviously have a greater chance of gaining some experience abroad and the lsquoGen Yrsquo professionals in particular seem ready to pack their bags In a CIMA study conducted in the UK last year over a third of those seeking employment in the
next two years will prioritise opportunities abroad over those in their home countries many of them enticed by the career incentives offered by the Middle East
How quickly can they land what seems to be their dream job What are the realities It may be that the move is simply from one branch to another and the only significant difference is a view from the window but for those expanding rather than changing their roles we have seen a very real need for a depth and breadth of knowledge never needed before
As geographical boundaries are pushed ever-wider a CFOrsquos responsibilities are pushed with them For many finance executives the understanding of their own patch of land is no longer enough they now have to be aware of foreign markets up to speed with foreign trends and au fait with foreign laws There is a need for a new commercial awareness in geography as well as philosophy
As geographical boundaries are pushed ever-wider a CFOrsquos responsibilities are pushed with them
John vargheseQampA
wwwthecfomecom 69
BUSINESSSET UP YOUR
IN THE UNITED ARAB EMIRATES
TO
WAREHOUSESOFFICES INDUSTRIAL LANDFLEXI
Quick and easy company set-up
Less than an hour drive from Dubai
Complete cost-effective packages including licences and facilities
100 foreign ownership
Zero income and corporate taxes
Eligibility for UAE Residence Visa
BUSINESS SET-UP SOLUTIONS STARTING FROM AED 15000 (USD 4000)
RAK FREE TRADE ZONE PROVIDES
RAK Free Trade Zone Authority - Government of Ras Al KhaimahUAE (Ras Al Khaimah) Tel +971 7 2041111 (Dubai) Tel +971 4 7041875 (Abu Dhabi) Tel +971 2 6994888
Germany (Cologne) - Turkey (Istanbul) - India (Mumbai)
Call +971 7 204 1111 Visit wwwrakftzcom Join rakftz
THE POWERFUL AND THRIFTY OFFICE ALL-ROUNDERS
The new ECOSYS M3560idn series will astound you With their print speeds of up to 60 pages per minute they are among the most productive A4 bw multifunctionals on the market We nevertheless managed to keep their ecological footprint and total cost of ownership impressively low by using our well-known ECOSYS technology and equipping the devices with our renowned long-life components The result Not only less waste and lower maintenance costs but also less hassle for you and all your colleagues You will also greatly appreciate the many customisation possibilities of the devices equipped with KYOCERArsquos open solution platform HyPAStrade as it allows you to tailor the device to your needs So yes we are proud of our new range of MFPs and can hardly wait to share their numerous benefits with you
For more information please contactKYOCERA Document Solutions Middle East | PB Box 500817 DubaiUAE | Tel +9714 4330 412 | Fax +9714 4231 944KYOCERA Document Solutions Europe BV - wwwkyoceradocumentsolutionseuKYOCERA Document Solutions Inc - wwwkyoceradocumentsolutionscom
52
ACCAINTERVIEW
wwwthecfomecom
GLOBAL By ASSOCIATION
across the region from our key employers and learning provider partners to our active and growing student and member base I want to understand their challenges and priorities and how ACCA can work with them to help support the economic success of the region
What can a CFO gain from working with ACCAThe ACCA qualification is about complete finance professionals For CFOs it brings the technical knowledge vital to business success complemented with the strategic management skills and ethical competence crucial to an organisationrsquos success As an organization ACCA in the UAE brings CFOs access to that local and global network of peers and expertise along with our leading research and insights that help them to keep up to date on the issues that matter most
Are there any initiatives in place to leverage the recently announced partnership with AAA
How are the ACCArsquos many years of activity being applied to the Middle EastACCA has now had a presence in the UAE for well over a decade During that time we have established strong relationships across the Middle East epitomised by the recent signing of our Strategic Partnership with AAA As a national body in choosing to partner with ACCA they recognised the local and global perspective we bring We are continuing to work with students members and employers across the Middle East to build their networks knowledge and business success through events research and insights and access to a growing number of online resources
Which initial priorities are among your key aims upon joining the organisationrsquos efforts in the UAEIn the first few months I hope to build on the success of the team in the UAE My priority will be to meet as many of our key stakeholders
The Association for Chartered Certified Accountants (ACCA) provides its services across a number of international borders The recent announcement of Lindsay Degouve de Nuncques as the new head of the Associationrsquos UAE chapter further exemplifies the ACCArsquos reach based on her previous work in the UK Nuncques shares here what she brings to the Middle East and just how globalisation has driven her ascent
53
ACCAINTERVIEW
wwwthecfomecom
The strategic partnership with AAA is the first of its kind in the region Students who complete the UAECA qualification will be entitled to both the AAA and ACCA designations and ACCA members in the UAE will also be eligible to apply for AAA membership This is a very exciting development in the market and together AAA and ACCA will be working to deliver maximum value to all our stakeholders from this partnership As we launch the UAECA qualification this activity will start in earnest
Which key industries will you be spotlighting in the Middle East in the months aheadOur experience of working across all sectors and levels of organisations globally gives ACCA a unique insight into all types of industries We will continue to be working with employers across the spectrum in the months ahead to help them gain the insight and make the connections that drive businesses to succeed at whatever they do
ldquoThe ACCA qualification is about complete finance professionals For CFOs it brings the technical knowledge vital to business success complemented with the strategic management skillsrdquo
54
Islamic FinanceMARKET OUTLOOK
wwwthecfomecom
In its 10th instalment the Forum is hosted in Dubai as a direct result of the UAErsquos increasing importance in the world of global Islamic finance
THE WORLD ISLAmIC ECONOmIC FORUm LANDS IN DUBAI
In Dubairsquos continued quest for leading the world across a range of spectrums the Emirate accelerated its desire to become the worldrsquos leading hub for Islamic finance by hosting the 10th installment of the World Islamic Economic Forum (WIEF) Delegates from dozens of countries attended to take part in a three-day event held at Madinat Jumeirah which rests alongside Dubairsquos gleaming coastline Held under the patronage of His Highness Sheikh Mohammed Bin Rashid Al Maktoum the
Vice President and Prime Minister of the UAE and Ruler of Dubai key speakers included The Honorary Dr Zeti Akhtar Aziz Governor of the Central Bank of Malaysia HE Kairat Kelimbetov Governor of the National Bank of Kazakhstan The Honorary Datorsquo Sri Mohd Najib Tun Abdul Razal Prime Minister of Malaysia and HE Xavier Bettel Prime Minister of the Grand Duchy of Luxembourg
Launched in 2006 in Malaysia WIEF has grown in tandem with the increased
Delegates from dozens of countries attended WIEF to take part in the three-day event
sophistication and reach of Islamic finance After a successful event in London in 2013 amidst increased interest in Islamic finance across Europe WIEF relocated to Dubai where the local business structure is keen to host halal finance
Said Hamad Buamim President and CEO Dubai Chamber of Commerce and Industry co-organisers of the event ldquo[The forum] is the start of a new chapter of cooperation between Dubai and the world as part of
55
Islamic FinanceMARKET OUTLOOK
wwwthecfomecom
Dubai Capital of Islamic Economy visionhellipestablishing a unified regulatory authority to provide the framework for standards across halal industries will significantly accelerate growth Likewise we need to see increased cooperation and partnership between the public and private sectors This is already happening with great success here in Dubairdquo
The order of global cooperation needed to facilitate growth across the Islamic finance world was more than apparent at WIEF based on how many differing nations were represented at the event The exhibitorrsquos hall was populated with a number of key Malaysian stands representative of the Southeast Asianrsquos ranking as the global leader in Islamic finance Also present were companies from Saudi Arabia also a key locality in the worldrsquos halal industries An interesting yet prescient presence was of attendees from South Korea a nation which is eager to participate in Islamic finance and will be hosting the WIEF Pyeongchang Roundtable in December 2014
ldquoGangwon is a province located in Korea which is very interested in new business opportunities Wersquove realised the strength of the Islamic economy and have come here with many different companies The first type is based in real estate investment We also have companies which want to export their products to the Islamic economy based on their halal qualities And Gangwon will also be hosting the Winter
ldquoKorea is very interested in the strength of the Islamic economy and wants to export its products based on their halal qualitiesrdquo
56 wwwthecfomecom
$247trillionProjected value of halal products industry in lsquo18
125Muslim percentage of global tourism expenditure
STAT FACTSOlympics in 2018 and are presently seeking investments for this as wellrdquo said Seong-hun Kim a member of Gangwon Province Governmentrsquos Export Support Team
Dubai proved to be an excellent place for the event considering how well the UAE is able to so regularly corral international cooperation A key sign of this was witnessed recently when Luxembourg now considered the third most important base for Islamic finance globally opened a finance office in Dubai International Finance Centre The European nation also opened a euro200 sukuk earlier this year which was quickly oversubscribed
The prime minister of Luxembourg offered the WIEF audience a riveting speech which detailed just how international the Forum has become whilst encouraging more of the world to support the growing influence of Islamic finance
Said Bettel ldquoWe need to innovate more economic partnerships for growth We sometimes need to reengineer relationships but also have to make sure these relationships remain sustainable Growth in one country also brings growth to others as long as this is guided by free market initiatives Free trade and free flow of capital combined with innovation leads to prosperity We have all gathered here in Dubai to explore the future of Islamic finance and Luxembourg is also a pioneer of Islamic finance in Europe The Islamic financial sector has a major role to play in continued global growthrdquo
The Islamic Corporation for the Development of the Private Sector (ICD) is based in the Kingdom of Saudi Arabia where it manages an international fund worth $2 billion half of which is available for subscription With shareholders in more than 50 countries and a sovereign sukuk fund recently launched in West Africa the ICDrsquos CEO Khaled M Al Aboodi attended WIEF this year excited to participate in the global event
How does the ICD approach its attendance at the World Islamic Economic ForumI think the Forum is one of the best places for discussing the financial issues of the OEC member countries It has been around for ten years and has grown to become a very important platform for discussion Wersquore here to attend and listen but also to network Itrsquos a great networking platform and a place to share views whilst letting everyone know what we have to offer
How has Islamic finance changed over the yearsOf course itrsquos growing in a large scale Some of it actually needs more support particularly with respect to regulatory frameworks Wersquore trying to partner with many international organisations like the IMF to try to provide support to countries to adapt regulation for Islamic finance Sukuk issuance is one of the biggest issues that needs to be addressed because there is a huge amount of liquidity in this arena Due to issues related to regulation sukuk issuance can be costly But with the regulation we are confident it will be on a level playing field with other forms of finance Compliance is a major area where more work can be done The Forum started with a roundtable on sukuk which shows how helpful WIEF has been over the years
What type of work does ICD do internationallyICD helped the government of Senegal to issue the first sovereign sukuk This was successfully issued last summer Progressing in this manner is something wersquod like to see continue across West Africa in order to utilise its resources with aiding development in the region in mind
QampA WITH KHALED M AL ABOODI CEO OF ICD
Islamic FinanceMARKET OUTLOOK
OFFICIAL SPONSORS
ENDORSED BY OFFICIAL HOST OFFICIAL
COMMUNICATIONS PARTNER
MEYDAN HOTEL DUBAI UAE19 - 20 NOVEMBER 2014
WOMENOMICSthe next emerging market
TAKE PART in making change happen UNITE with business and through leaders from across the globe
PARTICIPATE to the expansion of a modern and inclusive economy
58
Gautam PradhanINTERVIEW
wwwthecfomecom
SUCCESS BEyOND BOUNDARIES
in other management roles such as strategic decision making mentoring and leading efficiency and productivity across a range of other departments and functions as well as a being a catalyst in ensuring that the boardrsquos vision for the organisation is achieved
A significant percentage of NMDCrsquos shares are owned publicly Does the CFO play a role in balancing the interests of the shareholdersAs a CFO balancing the shareholdersrsquo interests is definitely part of my responsibility In order to achieve this goal there needs to be a careful evaluation of each decision while keeping the short-term and long-term goals of the company in mind At NMDC we actively implement a system where we utilise a balance scorecard as a method of ensuring that all our primary objectives are met yet at the same time continuously enhance our relationships with our shareholders
NMDC has completed various projects across the Emirates Are there plans to move abroadAs NMDC moves towards becoming an international player our strategic expansion plans are focused in areas within the GCC region and India In line with this strategy we opened
How has a company with such a unique set of deliverables grown so consistently over the yearsOur organisation strongly believes that the core to our strength is the people process and equipment A strategic decision led by our Board of Directors and the senior management has been implemented that required us to consistently invest in these three aspects to help expand our business beyond the territorial boundaries of the UAE and at the same time enhance what we can offer which is relevant to these segments We attribute our success to the efforts which every employee contributes We also strongly believe in the ldquoWe can make it happenrdquo principle The management raises the index of performance while setting SMART objectives within the organisation and encouraging the employees to achieve them
How has your position as the CFO changed over NMDCrsquos 35 years of operationAs the market evolves and business dynamics change my role as the CFO has become complex and more challenging A few years back I was mainly focused on bookkeeping accounting and other financial responsibilities such as arranging bank facilities But moving forward I became more involved
The UAE is progressively becoming a hub for world-class infrastructure The country has duly impressed the rest of the globe with noteworthy land developments showcased across the emirates Among the remarkable landscapes found in Abu Dhabi are the Corniche Beach Yas Island and Sir Baniyas Island Behind these successful projects is NMDC the dredging division of Abu Dhabi National Oil Company (ADNOC)
In an interview with CFO Magazine Gautam Pradhan Chief Financial Officer NMDC shares an exclusive look into the companyrsquos international blueprint for growth and his dynamic role as a strategic leader of one of the best in dredging and marine construction in the Middle East
59
Gautam PradhanINTERVIEW
wwwthecfomecom
branches in Qatar Bahrain Oman and India This has paid rich dividends recently as projects of strategic importance are bagged in Qatar and Bahrain Furthermore NMDC (UAE) has recently played a key role as a leader of an international consortium with Royal Boskalis Westminister (Netherlands) and Jan De Nul Group (Belgium) for the awarding of the Suez Canal Dredging project in Egypt Moving forward we have devised a strategic approach that will enable us to play a key role in the development of Indiarsquos marine infrastructure
What are the global strategies that are part of the CFOrsquos responsibilitiesAs CFO understanding the macro economic scenario risk analysis and mitigating those risks are all a part of my responsibilities I also have to have a proper comprehension
ldquoA few years back I was mainly focused on financial responsibilities moving forward I became more involved in strategic decision making mentoring and leading productivityrdquo
Gautam PradhanINTERVIEW
60 wwwthecfomecom
of the challenges faced by the company in terms of dealing with foreign contracts direct and indirect taxes and hedging and managing the integration process These are essential to enhance shareholders wealth and mitigate undue risk
How significant is accountancy for NMDC in its operations Why exactlyAccountancy is the lifeline of any company it does not only record the finances it also reflects the health of the organisation The MIS reports analysis trends and statistical information go a long way toward effectively providing
the diagnostic approach essential for the company
How have NMDCrsquos environmental activities helped the companyrsquos bottom lineNMDCrsquos work is well-synchronised with our environmental activities and specifically with nature Our activities are closely linked to sand and water and we view such activities with strategic importance Projects such as increasing water supply to mangroves and beach nourishment help us support the environmental activities while adding to our bottom line
ldquoAccountancy is the lifeline of any company it does not only record the finances it also reflects the health of the organisationrdquo
A burgeoning slice of Abu Dhabi coastline
The largest business awards
in the GCC30th November Dubai
nominate now at wwwstarsofbusinessawardscom
Stars of Business has become an iconic awards brand like no other in the region It recognizes the very best SMEs across 26 business categories Itrsquos universally respected as scientifically assessed and unimpeachably judged
327000 SMEs across the UAE$234 billion estimated total revenue of the SME sector4974 Awards entries in 20131856 Individual company applicants
Presenting Partner Strategic SME Partner Gold Sponsor Gold Sponsor VIP Hospitality Partner Supporting Partner
Trade Facilitator PartnerTrade Credit PartnerLogistics Partner
Institutional Partner Institutional Partner Event Partner
OrganiserPublisherMedia Partner Media PartnerPort Authority Partner
62
David Allen INTERVIEW
wwwthecfomecom
What went into completing your bestseller ndash Getting Things Done (GTD)After twenty years of researching developing and implementing a methodology for achieving stress-free productivity based upon
thousands of hours spent desk-side with
some of the best brightest and busiest people in the world I decided to write the manual for it Thatrsquos what Getting Things Done is
What are the five phases of mastering workflowIn order to get
any situation under control so
you can focus you will utilise these five
steps Whether yoursquore managing your kitchen
or your company you will need to collect and capture what has your attention clarify what if anything to do about it organise it according to what it means to you review and reflect upon it in relation to
Todayrsquos evolving CFO is often caught between the world of business set-up generating revenue managing employees and building strong company infrastructure When can things actually get done What can one do to boost productivity and master workflow World-renowned business coach David Allen has the answers
PRODUCTIvITy PRINCIPLES WITH
DAvID ALLEN
63
David Allen INTERVIEW
wwwthecfomecom
those are greatly subvertedHow does one maintain a fair balance between the time spent planning and actually getting things doneYou simply need to spend just the amount of time you need to to trust that what you are getting done is the right thing to be getting done in the moment It takes as long as it takes to get to that point Why would you do anything less
How can one apply your core productivity and workflow principles to todayrsquos technologically driven environmentThe principles and their techniques are system-independent Whether you have meaningful input from the Internet your smartphone or a conversation in the hall you must engage with it equally Technology has simply increased the flow of input and ease of distraction in your world
There is a lot of talk about how connected wersquove become and how connectivity is driving tremendous business growth Does connectivity actually come with its fair share of downsides
Connectivity is obviously a two-edged sword We can have intimate productive and creative interaction instantly with someone on the other side of the world and we can just as easily be distracted and seduced into those engagements when they may not be the best use of our attention and resources Donrsquot shoot the medium Itrsquos all simply bringing attention to your clarity of direction and priorities or lack thereof
Could you share a few quick tips with our readers to instantly boost productivityWrite everything down that has your attention Decide the very next actions required to get closure on all of them Any next actions that require less than two minutes do instantly Park reminders of everything else somewhere that yoursquoll see when you can do something about them
We are currently facing a massive information overload What are some basic principles you could suggest to mentally organise such large amounts of dataConstantly ask yourself Where am I going Whatrsquos important and rewarding to me Is this information
the whole and then engage your resources with intuitive trust
As a CFO how can you transfer efficient workflow management skills to your employees Itrsquos very difficult to legislate processes for individuals ndash you can really only hold them accountable for their results But if you are managing your own commitments and intersections with them with integrity and rigour it will automatically force your team to ldquostep up to the platerdquo in their own behaviours in order to meet your standards If you request their complete list of their company projects and they canrsquot produce it thatrsquos a sign theyrsquore not in control If they make a commitment to you that they havenrsquot kept thatrsquos data about their performance GTD is simply about good operational business practices
With so many planning and organising activities in your methodology is there a risk of losing spontaneity as a strategistThe reason for these best practices is to optimise freedom creativity and spontaneity Without them
ldquoBut if you are manag-ing your own com-mitments and intersec-tions with them with integrity and rigour it will automatical-ly force them to ldquostep up to the platerdquo in their own behaviours in order to meet your standardsrdquo
64 wwwthecfomecom
supporting that Park whatever you find potentially meaningful somewhere that is easy to access when needed
Being an entrepreneur is a non-stop job How do you ensure that you have an adequate work-life balance Pay attention to what has your attentionmdashwith regard to anything Your health relationships career finances etc Notice when something might be ldquooffrdquo and make good decisions about what you need to do to get it back ldquoonrdquo again
Does your work teach people to be efficient or effective In essence they are the same thing Effective choices are generated by efficiency on a higher level If you want to implement strategy most effectively it demands utilising your resources optimally which is efficiency
Does motivation actually improve quality of work or purely quantityDepends on the focus of the motivation You can be motivated to work harder and you can be motivated to work smarter
What is your favourite productivity mantra that
you implement in your day-to-day lifeUsing my own in-basket and note-taking devices to capture potentially meaningful and valuable ideas and soon afterwards clearing all of them out by deciding what to do about them if anything
Your books seminars and other work inspires many individuals and businesses Who is your personal inspiration or role model I have many about many different aspects of my life The only person though that I ultimately trust as my best guide is my higher self which I try to access as frequently and clearly as I can
Finally what advice would you give to current business owners and aspiring entrepreneurs looking to gain complete control of their life and businessCapture what has your attention clarify what you need to do about it to get it off your mind organise the inventory of all your commitments at all levels review and reflect on all of that regularly relax and trust your inner wisdom to engage with the most appropriate thing in the moment
ldquoIf you want to implement strategy most effectively it demands utilising your resources optimallyrdquo
David Allen INTERVIEW
APPSTECH TALK
wwwthecfomecom 65
mAxImISE BUSINESS lsquoON-THE-GOrsquo WITH THESE HANDy APPS
ipAd SpECIAL
SAMSUNG UNvEILS GALAxY NOTE EDGE
Network
AP
Display
OS
Camera
Video
Audio
Additional Features
GoogleMobile Services
Connectivity
Sensor
Memory
Dimension
Battery
The availability of service may differ by country All functionality features specifications and other product information provided in this document including but not limited to the benefits design pricing components performance availability and capabilities of the product are subject to change without notice or obligation
Samsung Galaxy Note Edge Product Specifications
25G (GSM GPRS EDGE) 850 900 1800 1900 MHz3G (HSPA + 42Mbps) 850 900 1900 2100 MHz4G (LTE Cat 4 15050Mbps) or 4G(LTE Cat 6 30050Mbps)May differ by country and carrier
27 GHz Quad-Core Processor
56 inch (1419mm) Quad HD+ Super AMOLED (2560 x 1440 + 160)
Android 44 (KitKat)
Rear Facing 16 Mega pixel Auto Focus camera with Smart OISFront Facing 37 Mega pixel camera with f19Rear Facing Camera HDR (Rich tone) Selective Focus Rear-cam Selfie Beauty face Virtual Tour Shot ShotampMore Dual CameraFront Facing Camera Selfie Wide Selfie
Codec H264 MPEG-4 H263 VC-1 WMV7 WMV8 Sorenson Spark MP43 VP8 Recording amp Playback up to UHD
Codec MP3 AACAAC+eAAC+ WMA AMR-NBWB Vorbis FLAC()() Ultra High Quality Audio (~192KHz 24 bit) support
Multi WindowUltra Power Saving ModeVoice Recorder (Normal Mode Interview Mode Meeting Mode Voice Memo)Download BoosterS Health 35Dynamic Lock ScreenBriefingEdge screen UX Revolving Interaction Immersive apps(Camera Video S Note)Ticker board Express me Quick Tools Night Clock etc
Chrome Drive Photos Gmail Google Google+ Google Settings Hangouts Maps Play Books Play Games Play Newsstand Play Movie amp TV Play Music Play Store Voice Search YouTube
WiFi 80211 abgnac (HT80) MIMO PCIeGPS GLONASS BeidouNFC Bluetoothreg v 41 (BLE ANT+)IR LED (Remote Control) USB20 MHL 30
Gesture Accelerometer Geo-magnetic Gyroscope RGB IR-LEDProximity Barometer Hall Sensor Finger Scanner UV Heart Rate Monitoring SpO2 (Dependent on market)
32 64 GB Internal memory + microSD slot (up to 128GB)3GB RAM
1513 x 824 x 83mm 174g
Standard battery Li-ion 3000 mAh Fast Charging (Adaptive Fast Charging amp QC20)
wwwthecfomecom66
APPSTECH TALK
AIR DISPLAY
SQUARE REGISTER
Using this app you can connect your iPad to your computer and use it as an additional screen While working on an important presentation or sales proposal you can extend or mirror your computer screen on your iPad This app is compatible with both Mac and Windows computers Note that to use this feature you have to install Air Display on your iPad and a separate free app on your computer The computer and iPad also need to be on the same Wi-Fi network in order to work in-sync
For Mac users the app allows you to connect to up to four screens ndash all at the same time
Apart from the ability to convert your iPad into a wireless display whatrsquos also attractive about this app is that it allows you to control your computer wirelessly using your iPad
This fantastic application can serve as a mobile point of sale for your business It allows you to accept credit card payments ndash including Visa MasterCard Discover and American Express A transaction fee of 275 is charged for every time you swipe a card The sale amount is transferred to your account within two working days
Once you download the app you can sign up and register for a unique card reader solution called the lsquoSquare Readerrsquo (this is free) Square Reader encrypts all card details and ensures that the transaction is secure Once you receive your Square Reader you can connect it to your device and are all set
The application also offers added features such as transaction history connecting to a receipt printer creating employee logins and more
AED 3699
PRICE
Free
PRICE
wwwthecfomecom 67
APPSTECH TALK
DOCUSIGNHave you ever been in a situation where your employees need you to urgently sign a contract but arenrsquot able to physically reach you in time DocuSign solves this problem with its easy-to-use eSignature feature In three easy steps you can sign important documents and securely send them to your intended recipient
First you have to import the document to your device ndash this could be from Dropbox Google Drive or another select applications You then place your signature or any other important legal information you need to include such as initials Once you have finished working on the document send it back via e-mail
Whatrsquos particularly great about DocuSign is the great emphasis it puts on security ndash so that users donrsquot have to worry about getting into any legal trouble
Use DocuSign and never miss a deadline again
Free for basic version
PRICE
MPAYAn initiative by the Dubai eGovernment Department mPay is a simple application that allows you to make important payments Once yoursquove signed up and entered your payment details you are good to go You can pay your Dubai Electricity and Water Authority (DEWA) bills Etisalat utility bills Dubai Police fines Recharge SALIK and much more
A handy feature is its lsquoauto-rechargersquo option which you can use to set automatic payments
Free
PRICE
Opinion CIMAPERSONALITIES
wwwthecfomecom68
NEW HORIZONSBy geetu Ahuja Head of gCC at CIMA
The days of the traditional accountant working within a small community in a small town in a small market have long gone CFOs are now being referred to as Chief Frontier Officers as they travel from market to market overseeing their offices overseas This new expanded role has distinct advantages for both the company and the CFO who gain new skills and new insights from foreign branches a single hand at the helm of many markets provides business perspectives on a global scale and benchmarks across the board
On a personal level working abroad also has huge importance Robert Walters the specialist professional recruitment consultancy recently conducted a survey
of almost 2200 employees across a variety of professions exploring a number of topics which ranged from working practices and attitudes to careers The results highlighted some notable trends particularly for finance professionals
In career progression for example the survey showed that 50 of all accountants see working abroad as either lsquoessentialrsquo or lsquoextremely usefulrsquo to furthering their prospects more than banking professionals lawyers and IT workers ndash a strong indication of how accounting professionals are thinking about their future either within their existing company or with opportunities elsewhere
Accountants with globally recognised qualifications obviously have a greater chance of gaining some experience abroad and the lsquoGen Yrsquo professionals in particular seem ready to pack their bags In a CIMA study conducted in the UK last year over a third of those seeking employment in the
next two years will prioritise opportunities abroad over those in their home countries many of them enticed by the career incentives offered by the Middle East
How quickly can they land what seems to be their dream job What are the realities It may be that the move is simply from one branch to another and the only significant difference is a view from the window but for those expanding rather than changing their roles we have seen a very real need for a depth and breadth of knowledge never needed before
As geographical boundaries are pushed ever-wider a CFOrsquos responsibilities are pushed with them For many finance executives the understanding of their own patch of land is no longer enough they now have to be aware of foreign markets up to speed with foreign trends and au fait with foreign laws There is a need for a new commercial awareness in geography as well as philosophy
As geographical boundaries are pushed ever-wider a CFOrsquos responsibilities are pushed with them
John vargheseQampA
wwwthecfomecom 69
BUSINESSSET UP YOUR
IN THE UNITED ARAB EMIRATES
TO
WAREHOUSESOFFICES INDUSTRIAL LANDFLEXI
Quick and easy company set-up
Less than an hour drive from Dubai
Complete cost-effective packages including licences and facilities
100 foreign ownership
Zero income and corporate taxes
Eligibility for UAE Residence Visa
BUSINESS SET-UP SOLUTIONS STARTING FROM AED 15000 (USD 4000)
RAK FREE TRADE ZONE PROVIDES
RAK Free Trade Zone Authority - Government of Ras Al KhaimahUAE (Ras Al Khaimah) Tel +971 7 2041111 (Dubai) Tel +971 4 7041875 (Abu Dhabi) Tel +971 2 6994888
Germany (Cologne) - Turkey (Istanbul) - India (Mumbai)
Call +971 7 204 1111 Visit wwwrakftzcom Join rakftz
52
ACCAINTERVIEW
wwwthecfomecom
GLOBAL By ASSOCIATION
across the region from our key employers and learning provider partners to our active and growing student and member base I want to understand their challenges and priorities and how ACCA can work with them to help support the economic success of the region
What can a CFO gain from working with ACCAThe ACCA qualification is about complete finance professionals For CFOs it brings the technical knowledge vital to business success complemented with the strategic management skills and ethical competence crucial to an organisationrsquos success As an organization ACCA in the UAE brings CFOs access to that local and global network of peers and expertise along with our leading research and insights that help them to keep up to date on the issues that matter most
Are there any initiatives in place to leverage the recently announced partnership with AAA
How are the ACCArsquos many years of activity being applied to the Middle EastACCA has now had a presence in the UAE for well over a decade During that time we have established strong relationships across the Middle East epitomised by the recent signing of our Strategic Partnership with AAA As a national body in choosing to partner with ACCA they recognised the local and global perspective we bring We are continuing to work with students members and employers across the Middle East to build their networks knowledge and business success through events research and insights and access to a growing number of online resources
Which initial priorities are among your key aims upon joining the organisationrsquos efforts in the UAEIn the first few months I hope to build on the success of the team in the UAE My priority will be to meet as many of our key stakeholders
The Association for Chartered Certified Accountants (ACCA) provides its services across a number of international borders The recent announcement of Lindsay Degouve de Nuncques as the new head of the Associationrsquos UAE chapter further exemplifies the ACCArsquos reach based on her previous work in the UK Nuncques shares here what she brings to the Middle East and just how globalisation has driven her ascent
53
ACCAINTERVIEW
wwwthecfomecom
The strategic partnership with AAA is the first of its kind in the region Students who complete the UAECA qualification will be entitled to both the AAA and ACCA designations and ACCA members in the UAE will also be eligible to apply for AAA membership This is a very exciting development in the market and together AAA and ACCA will be working to deliver maximum value to all our stakeholders from this partnership As we launch the UAECA qualification this activity will start in earnest
Which key industries will you be spotlighting in the Middle East in the months aheadOur experience of working across all sectors and levels of organisations globally gives ACCA a unique insight into all types of industries We will continue to be working with employers across the spectrum in the months ahead to help them gain the insight and make the connections that drive businesses to succeed at whatever they do
ldquoThe ACCA qualification is about complete finance professionals For CFOs it brings the technical knowledge vital to business success complemented with the strategic management skillsrdquo
54
Islamic FinanceMARKET OUTLOOK
wwwthecfomecom
In its 10th instalment the Forum is hosted in Dubai as a direct result of the UAErsquos increasing importance in the world of global Islamic finance
THE WORLD ISLAmIC ECONOmIC FORUm LANDS IN DUBAI
In Dubairsquos continued quest for leading the world across a range of spectrums the Emirate accelerated its desire to become the worldrsquos leading hub for Islamic finance by hosting the 10th installment of the World Islamic Economic Forum (WIEF) Delegates from dozens of countries attended to take part in a three-day event held at Madinat Jumeirah which rests alongside Dubairsquos gleaming coastline Held under the patronage of His Highness Sheikh Mohammed Bin Rashid Al Maktoum the
Vice President and Prime Minister of the UAE and Ruler of Dubai key speakers included The Honorary Dr Zeti Akhtar Aziz Governor of the Central Bank of Malaysia HE Kairat Kelimbetov Governor of the National Bank of Kazakhstan The Honorary Datorsquo Sri Mohd Najib Tun Abdul Razal Prime Minister of Malaysia and HE Xavier Bettel Prime Minister of the Grand Duchy of Luxembourg
Launched in 2006 in Malaysia WIEF has grown in tandem with the increased
Delegates from dozens of countries attended WIEF to take part in the three-day event
sophistication and reach of Islamic finance After a successful event in London in 2013 amidst increased interest in Islamic finance across Europe WIEF relocated to Dubai where the local business structure is keen to host halal finance
Said Hamad Buamim President and CEO Dubai Chamber of Commerce and Industry co-organisers of the event ldquo[The forum] is the start of a new chapter of cooperation between Dubai and the world as part of
55
Islamic FinanceMARKET OUTLOOK
wwwthecfomecom
Dubai Capital of Islamic Economy visionhellipestablishing a unified regulatory authority to provide the framework for standards across halal industries will significantly accelerate growth Likewise we need to see increased cooperation and partnership between the public and private sectors This is already happening with great success here in Dubairdquo
The order of global cooperation needed to facilitate growth across the Islamic finance world was more than apparent at WIEF based on how many differing nations were represented at the event The exhibitorrsquos hall was populated with a number of key Malaysian stands representative of the Southeast Asianrsquos ranking as the global leader in Islamic finance Also present were companies from Saudi Arabia also a key locality in the worldrsquos halal industries An interesting yet prescient presence was of attendees from South Korea a nation which is eager to participate in Islamic finance and will be hosting the WIEF Pyeongchang Roundtable in December 2014
ldquoGangwon is a province located in Korea which is very interested in new business opportunities Wersquove realised the strength of the Islamic economy and have come here with many different companies The first type is based in real estate investment We also have companies which want to export their products to the Islamic economy based on their halal qualities And Gangwon will also be hosting the Winter
ldquoKorea is very interested in the strength of the Islamic economy and wants to export its products based on their halal qualitiesrdquo
56 wwwthecfomecom
$247trillionProjected value of halal products industry in lsquo18
125Muslim percentage of global tourism expenditure
STAT FACTSOlympics in 2018 and are presently seeking investments for this as wellrdquo said Seong-hun Kim a member of Gangwon Province Governmentrsquos Export Support Team
Dubai proved to be an excellent place for the event considering how well the UAE is able to so regularly corral international cooperation A key sign of this was witnessed recently when Luxembourg now considered the third most important base for Islamic finance globally opened a finance office in Dubai International Finance Centre The European nation also opened a euro200 sukuk earlier this year which was quickly oversubscribed
The prime minister of Luxembourg offered the WIEF audience a riveting speech which detailed just how international the Forum has become whilst encouraging more of the world to support the growing influence of Islamic finance
Said Bettel ldquoWe need to innovate more economic partnerships for growth We sometimes need to reengineer relationships but also have to make sure these relationships remain sustainable Growth in one country also brings growth to others as long as this is guided by free market initiatives Free trade and free flow of capital combined with innovation leads to prosperity We have all gathered here in Dubai to explore the future of Islamic finance and Luxembourg is also a pioneer of Islamic finance in Europe The Islamic financial sector has a major role to play in continued global growthrdquo
The Islamic Corporation for the Development of the Private Sector (ICD) is based in the Kingdom of Saudi Arabia where it manages an international fund worth $2 billion half of which is available for subscription With shareholders in more than 50 countries and a sovereign sukuk fund recently launched in West Africa the ICDrsquos CEO Khaled M Al Aboodi attended WIEF this year excited to participate in the global event
How does the ICD approach its attendance at the World Islamic Economic ForumI think the Forum is one of the best places for discussing the financial issues of the OEC member countries It has been around for ten years and has grown to become a very important platform for discussion Wersquore here to attend and listen but also to network Itrsquos a great networking platform and a place to share views whilst letting everyone know what we have to offer
How has Islamic finance changed over the yearsOf course itrsquos growing in a large scale Some of it actually needs more support particularly with respect to regulatory frameworks Wersquore trying to partner with many international organisations like the IMF to try to provide support to countries to adapt regulation for Islamic finance Sukuk issuance is one of the biggest issues that needs to be addressed because there is a huge amount of liquidity in this arena Due to issues related to regulation sukuk issuance can be costly But with the regulation we are confident it will be on a level playing field with other forms of finance Compliance is a major area where more work can be done The Forum started with a roundtable on sukuk which shows how helpful WIEF has been over the years
What type of work does ICD do internationallyICD helped the government of Senegal to issue the first sovereign sukuk This was successfully issued last summer Progressing in this manner is something wersquod like to see continue across West Africa in order to utilise its resources with aiding development in the region in mind
QampA WITH KHALED M AL ABOODI CEO OF ICD
Islamic FinanceMARKET OUTLOOK
OFFICIAL SPONSORS
ENDORSED BY OFFICIAL HOST OFFICIAL
COMMUNICATIONS PARTNER
MEYDAN HOTEL DUBAI UAE19 - 20 NOVEMBER 2014
WOMENOMICSthe next emerging market
TAKE PART in making change happen UNITE with business and through leaders from across the globe
PARTICIPATE to the expansion of a modern and inclusive economy
58
Gautam PradhanINTERVIEW
wwwthecfomecom
SUCCESS BEyOND BOUNDARIES
in other management roles such as strategic decision making mentoring and leading efficiency and productivity across a range of other departments and functions as well as a being a catalyst in ensuring that the boardrsquos vision for the organisation is achieved
A significant percentage of NMDCrsquos shares are owned publicly Does the CFO play a role in balancing the interests of the shareholdersAs a CFO balancing the shareholdersrsquo interests is definitely part of my responsibility In order to achieve this goal there needs to be a careful evaluation of each decision while keeping the short-term and long-term goals of the company in mind At NMDC we actively implement a system where we utilise a balance scorecard as a method of ensuring that all our primary objectives are met yet at the same time continuously enhance our relationships with our shareholders
NMDC has completed various projects across the Emirates Are there plans to move abroadAs NMDC moves towards becoming an international player our strategic expansion plans are focused in areas within the GCC region and India In line with this strategy we opened
How has a company with such a unique set of deliverables grown so consistently over the yearsOur organisation strongly believes that the core to our strength is the people process and equipment A strategic decision led by our Board of Directors and the senior management has been implemented that required us to consistently invest in these three aspects to help expand our business beyond the territorial boundaries of the UAE and at the same time enhance what we can offer which is relevant to these segments We attribute our success to the efforts which every employee contributes We also strongly believe in the ldquoWe can make it happenrdquo principle The management raises the index of performance while setting SMART objectives within the organisation and encouraging the employees to achieve them
How has your position as the CFO changed over NMDCrsquos 35 years of operationAs the market evolves and business dynamics change my role as the CFO has become complex and more challenging A few years back I was mainly focused on bookkeeping accounting and other financial responsibilities such as arranging bank facilities But moving forward I became more involved
The UAE is progressively becoming a hub for world-class infrastructure The country has duly impressed the rest of the globe with noteworthy land developments showcased across the emirates Among the remarkable landscapes found in Abu Dhabi are the Corniche Beach Yas Island and Sir Baniyas Island Behind these successful projects is NMDC the dredging division of Abu Dhabi National Oil Company (ADNOC)
In an interview with CFO Magazine Gautam Pradhan Chief Financial Officer NMDC shares an exclusive look into the companyrsquos international blueprint for growth and his dynamic role as a strategic leader of one of the best in dredging and marine construction in the Middle East
59
Gautam PradhanINTERVIEW
wwwthecfomecom
branches in Qatar Bahrain Oman and India This has paid rich dividends recently as projects of strategic importance are bagged in Qatar and Bahrain Furthermore NMDC (UAE) has recently played a key role as a leader of an international consortium with Royal Boskalis Westminister (Netherlands) and Jan De Nul Group (Belgium) for the awarding of the Suez Canal Dredging project in Egypt Moving forward we have devised a strategic approach that will enable us to play a key role in the development of Indiarsquos marine infrastructure
What are the global strategies that are part of the CFOrsquos responsibilitiesAs CFO understanding the macro economic scenario risk analysis and mitigating those risks are all a part of my responsibilities I also have to have a proper comprehension
ldquoA few years back I was mainly focused on financial responsibilities moving forward I became more involved in strategic decision making mentoring and leading productivityrdquo
Gautam PradhanINTERVIEW
60 wwwthecfomecom
of the challenges faced by the company in terms of dealing with foreign contracts direct and indirect taxes and hedging and managing the integration process These are essential to enhance shareholders wealth and mitigate undue risk
How significant is accountancy for NMDC in its operations Why exactlyAccountancy is the lifeline of any company it does not only record the finances it also reflects the health of the organisation The MIS reports analysis trends and statistical information go a long way toward effectively providing
the diagnostic approach essential for the company
How have NMDCrsquos environmental activities helped the companyrsquos bottom lineNMDCrsquos work is well-synchronised with our environmental activities and specifically with nature Our activities are closely linked to sand and water and we view such activities with strategic importance Projects such as increasing water supply to mangroves and beach nourishment help us support the environmental activities while adding to our bottom line
ldquoAccountancy is the lifeline of any company it does not only record the finances it also reflects the health of the organisationrdquo
A burgeoning slice of Abu Dhabi coastline
The largest business awards
in the GCC30th November Dubai
nominate now at wwwstarsofbusinessawardscom
Stars of Business has become an iconic awards brand like no other in the region It recognizes the very best SMEs across 26 business categories Itrsquos universally respected as scientifically assessed and unimpeachably judged
327000 SMEs across the UAE$234 billion estimated total revenue of the SME sector4974 Awards entries in 20131856 Individual company applicants
Presenting Partner Strategic SME Partner Gold Sponsor Gold Sponsor VIP Hospitality Partner Supporting Partner
Trade Facilitator PartnerTrade Credit PartnerLogistics Partner
Institutional Partner Institutional Partner Event Partner
OrganiserPublisherMedia Partner Media PartnerPort Authority Partner
62
David Allen INTERVIEW
wwwthecfomecom
What went into completing your bestseller ndash Getting Things Done (GTD)After twenty years of researching developing and implementing a methodology for achieving stress-free productivity based upon
thousands of hours spent desk-side with
some of the best brightest and busiest people in the world I decided to write the manual for it Thatrsquos what Getting Things Done is
What are the five phases of mastering workflowIn order to get
any situation under control so
you can focus you will utilise these five
steps Whether yoursquore managing your kitchen
or your company you will need to collect and capture what has your attention clarify what if anything to do about it organise it according to what it means to you review and reflect upon it in relation to
Todayrsquos evolving CFO is often caught between the world of business set-up generating revenue managing employees and building strong company infrastructure When can things actually get done What can one do to boost productivity and master workflow World-renowned business coach David Allen has the answers
PRODUCTIvITy PRINCIPLES WITH
DAvID ALLEN
63
David Allen INTERVIEW
wwwthecfomecom
those are greatly subvertedHow does one maintain a fair balance between the time spent planning and actually getting things doneYou simply need to spend just the amount of time you need to to trust that what you are getting done is the right thing to be getting done in the moment It takes as long as it takes to get to that point Why would you do anything less
How can one apply your core productivity and workflow principles to todayrsquos technologically driven environmentThe principles and their techniques are system-independent Whether you have meaningful input from the Internet your smartphone or a conversation in the hall you must engage with it equally Technology has simply increased the flow of input and ease of distraction in your world
There is a lot of talk about how connected wersquove become and how connectivity is driving tremendous business growth Does connectivity actually come with its fair share of downsides
Connectivity is obviously a two-edged sword We can have intimate productive and creative interaction instantly with someone on the other side of the world and we can just as easily be distracted and seduced into those engagements when they may not be the best use of our attention and resources Donrsquot shoot the medium Itrsquos all simply bringing attention to your clarity of direction and priorities or lack thereof
Could you share a few quick tips with our readers to instantly boost productivityWrite everything down that has your attention Decide the very next actions required to get closure on all of them Any next actions that require less than two minutes do instantly Park reminders of everything else somewhere that yoursquoll see when you can do something about them
We are currently facing a massive information overload What are some basic principles you could suggest to mentally organise such large amounts of dataConstantly ask yourself Where am I going Whatrsquos important and rewarding to me Is this information
the whole and then engage your resources with intuitive trust
As a CFO how can you transfer efficient workflow management skills to your employees Itrsquos very difficult to legislate processes for individuals ndash you can really only hold them accountable for their results But if you are managing your own commitments and intersections with them with integrity and rigour it will automatically force your team to ldquostep up to the platerdquo in their own behaviours in order to meet your standards If you request their complete list of their company projects and they canrsquot produce it thatrsquos a sign theyrsquore not in control If they make a commitment to you that they havenrsquot kept thatrsquos data about their performance GTD is simply about good operational business practices
With so many planning and organising activities in your methodology is there a risk of losing spontaneity as a strategistThe reason for these best practices is to optimise freedom creativity and spontaneity Without them
ldquoBut if you are manag-ing your own com-mitments and intersec-tions with them with integrity and rigour it will automatical-ly force them to ldquostep up to the platerdquo in their own behaviours in order to meet your standardsrdquo
64 wwwthecfomecom
supporting that Park whatever you find potentially meaningful somewhere that is easy to access when needed
Being an entrepreneur is a non-stop job How do you ensure that you have an adequate work-life balance Pay attention to what has your attentionmdashwith regard to anything Your health relationships career finances etc Notice when something might be ldquooffrdquo and make good decisions about what you need to do to get it back ldquoonrdquo again
Does your work teach people to be efficient or effective In essence they are the same thing Effective choices are generated by efficiency on a higher level If you want to implement strategy most effectively it demands utilising your resources optimally which is efficiency
Does motivation actually improve quality of work or purely quantityDepends on the focus of the motivation You can be motivated to work harder and you can be motivated to work smarter
What is your favourite productivity mantra that
you implement in your day-to-day lifeUsing my own in-basket and note-taking devices to capture potentially meaningful and valuable ideas and soon afterwards clearing all of them out by deciding what to do about them if anything
Your books seminars and other work inspires many individuals and businesses Who is your personal inspiration or role model I have many about many different aspects of my life The only person though that I ultimately trust as my best guide is my higher self which I try to access as frequently and clearly as I can
Finally what advice would you give to current business owners and aspiring entrepreneurs looking to gain complete control of their life and businessCapture what has your attention clarify what you need to do about it to get it off your mind organise the inventory of all your commitments at all levels review and reflect on all of that regularly relax and trust your inner wisdom to engage with the most appropriate thing in the moment
ldquoIf you want to implement strategy most effectively it demands utilising your resources optimallyrdquo
David Allen INTERVIEW
APPSTECH TALK
wwwthecfomecom 65
mAxImISE BUSINESS lsquoON-THE-GOrsquo WITH THESE HANDy APPS
ipAd SpECIAL
SAMSUNG UNvEILS GALAxY NOTE EDGE
Network
AP
Display
OS
Camera
Video
Audio
Additional Features
GoogleMobile Services
Connectivity
Sensor
Memory
Dimension
Battery
The availability of service may differ by country All functionality features specifications and other product information provided in this document including but not limited to the benefits design pricing components performance availability and capabilities of the product are subject to change without notice or obligation
Samsung Galaxy Note Edge Product Specifications
25G (GSM GPRS EDGE) 850 900 1800 1900 MHz3G (HSPA + 42Mbps) 850 900 1900 2100 MHz4G (LTE Cat 4 15050Mbps) or 4G(LTE Cat 6 30050Mbps)May differ by country and carrier
27 GHz Quad-Core Processor
56 inch (1419mm) Quad HD+ Super AMOLED (2560 x 1440 + 160)
Android 44 (KitKat)
Rear Facing 16 Mega pixel Auto Focus camera with Smart OISFront Facing 37 Mega pixel camera with f19Rear Facing Camera HDR (Rich tone) Selective Focus Rear-cam Selfie Beauty face Virtual Tour Shot ShotampMore Dual CameraFront Facing Camera Selfie Wide Selfie
Codec H264 MPEG-4 H263 VC-1 WMV7 WMV8 Sorenson Spark MP43 VP8 Recording amp Playback up to UHD
Codec MP3 AACAAC+eAAC+ WMA AMR-NBWB Vorbis FLAC()() Ultra High Quality Audio (~192KHz 24 bit) support
Multi WindowUltra Power Saving ModeVoice Recorder (Normal Mode Interview Mode Meeting Mode Voice Memo)Download BoosterS Health 35Dynamic Lock ScreenBriefingEdge screen UX Revolving Interaction Immersive apps(Camera Video S Note)Ticker board Express me Quick Tools Night Clock etc
Chrome Drive Photos Gmail Google Google+ Google Settings Hangouts Maps Play Books Play Games Play Newsstand Play Movie amp TV Play Music Play Store Voice Search YouTube
WiFi 80211 abgnac (HT80) MIMO PCIeGPS GLONASS BeidouNFC Bluetoothreg v 41 (BLE ANT+)IR LED (Remote Control) USB20 MHL 30
Gesture Accelerometer Geo-magnetic Gyroscope RGB IR-LEDProximity Barometer Hall Sensor Finger Scanner UV Heart Rate Monitoring SpO2 (Dependent on market)
32 64 GB Internal memory + microSD slot (up to 128GB)3GB RAM
1513 x 824 x 83mm 174g
Standard battery Li-ion 3000 mAh Fast Charging (Adaptive Fast Charging amp QC20)
wwwthecfomecom66
APPSTECH TALK
AIR DISPLAY
SQUARE REGISTER
Using this app you can connect your iPad to your computer and use it as an additional screen While working on an important presentation or sales proposal you can extend or mirror your computer screen on your iPad This app is compatible with both Mac and Windows computers Note that to use this feature you have to install Air Display on your iPad and a separate free app on your computer The computer and iPad also need to be on the same Wi-Fi network in order to work in-sync
For Mac users the app allows you to connect to up to four screens ndash all at the same time
Apart from the ability to convert your iPad into a wireless display whatrsquos also attractive about this app is that it allows you to control your computer wirelessly using your iPad
This fantastic application can serve as a mobile point of sale for your business It allows you to accept credit card payments ndash including Visa MasterCard Discover and American Express A transaction fee of 275 is charged for every time you swipe a card The sale amount is transferred to your account within two working days
Once you download the app you can sign up and register for a unique card reader solution called the lsquoSquare Readerrsquo (this is free) Square Reader encrypts all card details and ensures that the transaction is secure Once you receive your Square Reader you can connect it to your device and are all set
The application also offers added features such as transaction history connecting to a receipt printer creating employee logins and more
AED 3699
PRICE
Free
PRICE
wwwthecfomecom 67
APPSTECH TALK
DOCUSIGNHave you ever been in a situation where your employees need you to urgently sign a contract but arenrsquot able to physically reach you in time DocuSign solves this problem with its easy-to-use eSignature feature In three easy steps you can sign important documents and securely send them to your intended recipient
First you have to import the document to your device ndash this could be from Dropbox Google Drive or another select applications You then place your signature or any other important legal information you need to include such as initials Once you have finished working on the document send it back via e-mail
Whatrsquos particularly great about DocuSign is the great emphasis it puts on security ndash so that users donrsquot have to worry about getting into any legal trouble
Use DocuSign and never miss a deadline again
Free for basic version
PRICE
MPAYAn initiative by the Dubai eGovernment Department mPay is a simple application that allows you to make important payments Once yoursquove signed up and entered your payment details you are good to go You can pay your Dubai Electricity and Water Authority (DEWA) bills Etisalat utility bills Dubai Police fines Recharge SALIK and much more
A handy feature is its lsquoauto-rechargersquo option which you can use to set automatic payments
Free
PRICE
Opinion CIMAPERSONALITIES
wwwthecfomecom68
NEW HORIZONSBy geetu Ahuja Head of gCC at CIMA
The days of the traditional accountant working within a small community in a small town in a small market have long gone CFOs are now being referred to as Chief Frontier Officers as they travel from market to market overseeing their offices overseas This new expanded role has distinct advantages for both the company and the CFO who gain new skills and new insights from foreign branches a single hand at the helm of many markets provides business perspectives on a global scale and benchmarks across the board
On a personal level working abroad also has huge importance Robert Walters the specialist professional recruitment consultancy recently conducted a survey
of almost 2200 employees across a variety of professions exploring a number of topics which ranged from working practices and attitudes to careers The results highlighted some notable trends particularly for finance professionals
In career progression for example the survey showed that 50 of all accountants see working abroad as either lsquoessentialrsquo or lsquoextremely usefulrsquo to furthering their prospects more than banking professionals lawyers and IT workers ndash a strong indication of how accounting professionals are thinking about their future either within their existing company or with opportunities elsewhere
Accountants with globally recognised qualifications obviously have a greater chance of gaining some experience abroad and the lsquoGen Yrsquo professionals in particular seem ready to pack their bags In a CIMA study conducted in the UK last year over a third of those seeking employment in the
next two years will prioritise opportunities abroad over those in their home countries many of them enticed by the career incentives offered by the Middle East
How quickly can they land what seems to be their dream job What are the realities It may be that the move is simply from one branch to another and the only significant difference is a view from the window but for those expanding rather than changing their roles we have seen a very real need for a depth and breadth of knowledge never needed before
As geographical boundaries are pushed ever-wider a CFOrsquos responsibilities are pushed with them For many finance executives the understanding of their own patch of land is no longer enough they now have to be aware of foreign markets up to speed with foreign trends and au fait with foreign laws There is a need for a new commercial awareness in geography as well as philosophy
As geographical boundaries are pushed ever-wider a CFOrsquos responsibilities are pushed with them
John vargheseQampA
wwwthecfomecom 69
BUSINESSSET UP YOUR
IN THE UNITED ARAB EMIRATES
TO
WAREHOUSESOFFICES INDUSTRIAL LANDFLEXI
Quick and easy company set-up
Less than an hour drive from Dubai
Complete cost-effective packages including licences and facilities
100 foreign ownership
Zero income and corporate taxes
Eligibility for UAE Residence Visa
BUSINESS SET-UP SOLUTIONS STARTING FROM AED 15000 (USD 4000)
RAK FREE TRADE ZONE PROVIDES
RAK Free Trade Zone Authority - Government of Ras Al KhaimahUAE (Ras Al Khaimah) Tel +971 7 2041111 (Dubai) Tel +971 4 7041875 (Abu Dhabi) Tel +971 2 6994888
Germany (Cologne) - Turkey (Istanbul) - India (Mumbai)
Call +971 7 204 1111 Visit wwwrakftzcom Join rakftz
53
ACCAINTERVIEW
wwwthecfomecom
The strategic partnership with AAA is the first of its kind in the region Students who complete the UAECA qualification will be entitled to both the AAA and ACCA designations and ACCA members in the UAE will also be eligible to apply for AAA membership This is a very exciting development in the market and together AAA and ACCA will be working to deliver maximum value to all our stakeholders from this partnership As we launch the UAECA qualification this activity will start in earnest
Which key industries will you be spotlighting in the Middle East in the months aheadOur experience of working across all sectors and levels of organisations globally gives ACCA a unique insight into all types of industries We will continue to be working with employers across the spectrum in the months ahead to help them gain the insight and make the connections that drive businesses to succeed at whatever they do
ldquoThe ACCA qualification is about complete finance professionals For CFOs it brings the technical knowledge vital to business success complemented with the strategic management skillsrdquo
54
Islamic FinanceMARKET OUTLOOK
wwwthecfomecom
In its 10th instalment the Forum is hosted in Dubai as a direct result of the UAErsquos increasing importance in the world of global Islamic finance
THE WORLD ISLAmIC ECONOmIC FORUm LANDS IN DUBAI
In Dubairsquos continued quest for leading the world across a range of spectrums the Emirate accelerated its desire to become the worldrsquos leading hub for Islamic finance by hosting the 10th installment of the World Islamic Economic Forum (WIEF) Delegates from dozens of countries attended to take part in a three-day event held at Madinat Jumeirah which rests alongside Dubairsquos gleaming coastline Held under the patronage of His Highness Sheikh Mohammed Bin Rashid Al Maktoum the
Vice President and Prime Minister of the UAE and Ruler of Dubai key speakers included The Honorary Dr Zeti Akhtar Aziz Governor of the Central Bank of Malaysia HE Kairat Kelimbetov Governor of the National Bank of Kazakhstan The Honorary Datorsquo Sri Mohd Najib Tun Abdul Razal Prime Minister of Malaysia and HE Xavier Bettel Prime Minister of the Grand Duchy of Luxembourg
Launched in 2006 in Malaysia WIEF has grown in tandem with the increased
Delegates from dozens of countries attended WIEF to take part in the three-day event
sophistication and reach of Islamic finance After a successful event in London in 2013 amidst increased interest in Islamic finance across Europe WIEF relocated to Dubai where the local business structure is keen to host halal finance
Said Hamad Buamim President and CEO Dubai Chamber of Commerce and Industry co-organisers of the event ldquo[The forum] is the start of a new chapter of cooperation between Dubai and the world as part of
55
Islamic FinanceMARKET OUTLOOK
wwwthecfomecom
Dubai Capital of Islamic Economy visionhellipestablishing a unified regulatory authority to provide the framework for standards across halal industries will significantly accelerate growth Likewise we need to see increased cooperation and partnership between the public and private sectors This is already happening with great success here in Dubairdquo
The order of global cooperation needed to facilitate growth across the Islamic finance world was more than apparent at WIEF based on how many differing nations were represented at the event The exhibitorrsquos hall was populated with a number of key Malaysian stands representative of the Southeast Asianrsquos ranking as the global leader in Islamic finance Also present were companies from Saudi Arabia also a key locality in the worldrsquos halal industries An interesting yet prescient presence was of attendees from South Korea a nation which is eager to participate in Islamic finance and will be hosting the WIEF Pyeongchang Roundtable in December 2014
ldquoGangwon is a province located in Korea which is very interested in new business opportunities Wersquove realised the strength of the Islamic economy and have come here with many different companies The first type is based in real estate investment We also have companies which want to export their products to the Islamic economy based on their halal qualities And Gangwon will also be hosting the Winter
ldquoKorea is very interested in the strength of the Islamic economy and wants to export its products based on their halal qualitiesrdquo
56 wwwthecfomecom
$247trillionProjected value of halal products industry in lsquo18
125Muslim percentage of global tourism expenditure
STAT FACTSOlympics in 2018 and are presently seeking investments for this as wellrdquo said Seong-hun Kim a member of Gangwon Province Governmentrsquos Export Support Team
Dubai proved to be an excellent place for the event considering how well the UAE is able to so regularly corral international cooperation A key sign of this was witnessed recently when Luxembourg now considered the third most important base for Islamic finance globally opened a finance office in Dubai International Finance Centre The European nation also opened a euro200 sukuk earlier this year which was quickly oversubscribed
The prime minister of Luxembourg offered the WIEF audience a riveting speech which detailed just how international the Forum has become whilst encouraging more of the world to support the growing influence of Islamic finance
Said Bettel ldquoWe need to innovate more economic partnerships for growth We sometimes need to reengineer relationships but also have to make sure these relationships remain sustainable Growth in one country also brings growth to others as long as this is guided by free market initiatives Free trade and free flow of capital combined with innovation leads to prosperity We have all gathered here in Dubai to explore the future of Islamic finance and Luxembourg is also a pioneer of Islamic finance in Europe The Islamic financial sector has a major role to play in continued global growthrdquo
The Islamic Corporation for the Development of the Private Sector (ICD) is based in the Kingdom of Saudi Arabia where it manages an international fund worth $2 billion half of which is available for subscription With shareholders in more than 50 countries and a sovereign sukuk fund recently launched in West Africa the ICDrsquos CEO Khaled M Al Aboodi attended WIEF this year excited to participate in the global event
How does the ICD approach its attendance at the World Islamic Economic ForumI think the Forum is one of the best places for discussing the financial issues of the OEC member countries It has been around for ten years and has grown to become a very important platform for discussion Wersquore here to attend and listen but also to network Itrsquos a great networking platform and a place to share views whilst letting everyone know what we have to offer
How has Islamic finance changed over the yearsOf course itrsquos growing in a large scale Some of it actually needs more support particularly with respect to regulatory frameworks Wersquore trying to partner with many international organisations like the IMF to try to provide support to countries to adapt regulation for Islamic finance Sukuk issuance is one of the biggest issues that needs to be addressed because there is a huge amount of liquidity in this arena Due to issues related to regulation sukuk issuance can be costly But with the regulation we are confident it will be on a level playing field with other forms of finance Compliance is a major area where more work can be done The Forum started with a roundtable on sukuk which shows how helpful WIEF has been over the years
What type of work does ICD do internationallyICD helped the government of Senegal to issue the first sovereign sukuk This was successfully issued last summer Progressing in this manner is something wersquod like to see continue across West Africa in order to utilise its resources with aiding development in the region in mind
QampA WITH KHALED M AL ABOODI CEO OF ICD
Islamic FinanceMARKET OUTLOOK
OFFICIAL SPONSORS
ENDORSED BY OFFICIAL HOST OFFICIAL
COMMUNICATIONS PARTNER
MEYDAN HOTEL DUBAI UAE19 - 20 NOVEMBER 2014
WOMENOMICSthe next emerging market
TAKE PART in making change happen UNITE with business and through leaders from across the globe
PARTICIPATE to the expansion of a modern and inclusive economy
58
Gautam PradhanINTERVIEW
wwwthecfomecom
SUCCESS BEyOND BOUNDARIES
in other management roles such as strategic decision making mentoring and leading efficiency and productivity across a range of other departments and functions as well as a being a catalyst in ensuring that the boardrsquos vision for the organisation is achieved
A significant percentage of NMDCrsquos shares are owned publicly Does the CFO play a role in balancing the interests of the shareholdersAs a CFO balancing the shareholdersrsquo interests is definitely part of my responsibility In order to achieve this goal there needs to be a careful evaluation of each decision while keeping the short-term and long-term goals of the company in mind At NMDC we actively implement a system where we utilise a balance scorecard as a method of ensuring that all our primary objectives are met yet at the same time continuously enhance our relationships with our shareholders
NMDC has completed various projects across the Emirates Are there plans to move abroadAs NMDC moves towards becoming an international player our strategic expansion plans are focused in areas within the GCC region and India In line with this strategy we opened
How has a company with such a unique set of deliverables grown so consistently over the yearsOur organisation strongly believes that the core to our strength is the people process and equipment A strategic decision led by our Board of Directors and the senior management has been implemented that required us to consistently invest in these three aspects to help expand our business beyond the territorial boundaries of the UAE and at the same time enhance what we can offer which is relevant to these segments We attribute our success to the efforts which every employee contributes We also strongly believe in the ldquoWe can make it happenrdquo principle The management raises the index of performance while setting SMART objectives within the organisation and encouraging the employees to achieve them
How has your position as the CFO changed over NMDCrsquos 35 years of operationAs the market evolves and business dynamics change my role as the CFO has become complex and more challenging A few years back I was mainly focused on bookkeeping accounting and other financial responsibilities such as arranging bank facilities But moving forward I became more involved
The UAE is progressively becoming a hub for world-class infrastructure The country has duly impressed the rest of the globe with noteworthy land developments showcased across the emirates Among the remarkable landscapes found in Abu Dhabi are the Corniche Beach Yas Island and Sir Baniyas Island Behind these successful projects is NMDC the dredging division of Abu Dhabi National Oil Company (ADNOC)
In an interview with CFO Magazine Gautam Pradhan Chief Financial Officer NMDC shares an exclusive look into the companyrsquos international blueprint for growth and his dynamic role as a strategic leader of one of the best in dredging and marine construction in the Middle East
59
Gautam PradhanINTERVIEW
wwwthecfomecom
branches in Qatar Bahrain Oman and India This has paid rich dividends recently as projects of strategic importance are bagged in Qatar and Bahrain Furthermore NMDC (UAE) has recently played a key role as a leader of an international consortium with Royal Boskalis Westminister (Netherlands) and Jan De Nul Group (Belgium) for the awarding of the Suez Canal Dredging project in Egypt Moving forward we have devised a strategic approach that will enable us to play a key role in the development of Indiarsquos marine infrastructure
What are the global strategies that are part of the CFOrsquos responsibilitiesAs CFO understanding the macro economic scenario risk analysis and mitigating those risks are all a part of my responsibilities I also have to have a proper comprehension
ldquoA few years back I was mainly focused on financial responsibilities moving forward I became more involved in strategic decision making mentoring and leading productivityrdquo
Gautam PradhanINTERVIEW
60 wwwthecfomecom
of the challenges faced by the company in terms of dealing with foreign contracts direct and indirect taxes and hedging and managing the integration process These are essential to enhance shareholders wealth and mitigate undue risk
How significant is accountancy for NMDC in its operations Why exactlyAccountancy is the lifeline of any company it does not only record the finances it also reflects the health of the organisation The MIS reports analysis trends and statistical information go a long way toward effectively providing
the diagnostic approach essential for the company
How have NMDCrsquos environmental activities helped the companyrsquos bottom lineNMDCrsquos work is well-synchronised with our environmental activities and specifically with nature Our activities are closely linked to sand and water and we view such activities with strategic importance Projects such as increasing water supply to mangroves and beach nourishment help us support the environmental activities while adding to our bottom line
ldquoAccountancy is the lifeline of any company it does not only record the finances it also reflects the health of the organisationrdquo
A burgeoning slice of Abu Dhabi coastline
The largest business awards
in the GCC30th November Dubai
nominate now at wwwstarsofbusinessawardscom
Stars of Business has become an iconic awards brand like no other in the region It recognizes the very best SMEs across 26 business categories Itrsquos universally respected as scientifically assessed and unimpeachably judged
327000 SMEs across the UAE$234 billion estimated total revenue of the SME sector4974 Awards entries in 20131856 Individual company applicants
Presenting Partner Strategic SME Partner Gold Sponsor Gold Sponsor VIP Hospitality Partner Supporting Partner
Trade Facilitator PartnerTrade Credit PartnerLogistics Partner
Institutional Partner Institutional Partner Event Partner
OrganiserPublisherMedia Partner Media PartnerPort Authority Partner
62
David Allen INTERVIEW
wwwthecfomecom
What went into completing your bestseller ndash Getting Things Done (GTD)After twenty years of researching developing and implementing a methodology for achieving stress-free productivity based upon
thousands of hours spent desk-side with
some of the best brightest and busiest people in the world I decided to write the manual for it Thatrsquos what Getting Things Done is
What are the five phases of mastering workflowIn order to get
any situation under control so
you can focus you will utilise these five
steps Whether yoursquore managing your kitchen
or your company you will need to collect and capture what has your attention clarify what if anything to do about it organise it according to what it means to you review and reflect upon it in relation to
Todayrsquos evolving CFO is often caught between the world of business set-up generating revenue managing employees and building strong company infrastructure When can things actually get done What can one do to boost productivity and master workflow World-renowned business coach David Allen has the answers
PRODUCTIvITy PRINCIPLES WITH
DAvID ALLEN
63
David Allen INTERVIEW
wwwthecfomecom
those are greatly subvertedHow does one maintain a fair balance between the time spent planning and actually getting things doneYou simply need to spend just the amount of time you need to to trust that what you are getting done is the right thing to be getting done in the moment It takes as long as it takes to get to that point Why would you do anything less
How can one apply your core productivity and workflow principles to todayrsquos technologically driven environmentThe principles and their techniques are system-independent Whether you have meaningful input from the Internet your smartphone or a conversation in the hall you must engage with it equally Technology has simply increased the flow of input and ease of distraction in your world
There is a lot of talk about how connected wersquove become and how connectivity is driving tremendous business growth Does connectivity actually come with its fair share of downsides
Connectivity is obviously a two-edged sword We can have intimate productive and creative interaction instantly with someone on the other side of the world and we can just as easily be distracted and seduced into those engagements when they may not be the best use of our attention and resources Donrsquot shoot the medium Itrsquos all simply bringing attention to your clarity of direction and priorities or lack thereof
Could you share a few quick tips with our readers to instantly boost productivityWrite everything down that has your attention Decide the very next actions required to get closure on all of them Any next actions that require less than two minutes do instantly Park reminders of everything else somewhere that yoursquoll see when you can do something about them
We are currently facing a massive information overload What are some basic principles you could suggest to mentally organise such large amounts of dataConstantly ask yourself Where am I going Whatrsquos important and rewarding to me Is this information
the whole and then engage your resources with intuitive trust
As a CFO how can you transfer efficient workflow management skills to your employees Itrsquos very difficult to legislate processes for individuals ndash you can really only hold them accountable for their results But if you are managing your own commitments and intersections with them with integrity and rigour it will automatically force your team to ldquostep up to the platerdquo in their own behaviours in order to meet your standards If you request their complete list of their company projects and they canrsquot produce it thatrsquos a sign theyrsquore not in control If they make a commitment to you that they havenrsquot kept thatrsquos data about their performance GTD is simply about good operational business practices
With so many planning and organising activities in your methodology is there a risk of losing spontaneity as a strategistThe reason for these best practices is to optimise freedom creativity and spontaneity Without them
ldquoBut if you are manag-ing your own com-mitments and intersec-tions with them with integrity and rigour it will automatical-ly force them to ldquostep up to the platerdquo in their own behaviours in order to meet your standardsrdquo
64 wwwthecfomecom
supporting that Park whatever you find potentially meaningful somewhere that is easy to access when needed
Being an entrepreneur is a non-stop job How do you ensure that you have an adequate work-life balance Pay attention to what has your attentionmdashwith regard to anything Your health relationships career finances etc Notice when something might be ldquooffrdquo and make good decisions about what you need to do to get it back ldquoonrdquo again
Does your work teach people to be efficient or effective In essence they are the same thing Effective choices are generated by efficiency on a higher level If you want to implement strategy most effectively it demands utilising your resources optimally which is efficiency
Does motivation actually improve quality of work or purely quantityDepends on the focus of the motivation You can be motivated to work harder and you can be motivated to work smarter
What is your favourite productivity mantra that
you implement in your day-to-day lifeUsing my own in-basket and note-taking devices to capture potentially meaningful and valuable ideas and soon afterwards clearing all of them out by deciding what to do about them if anything
Your books seminars and other work inspires many individuals and businesses Who is your personal inspiration or role model I have many about many different aspects of my life The only person though that I ultimately trust as my best guide is my higher self which I try to access as frequently and clearly as I can
Finally what advice would you give to current business owners and aspiring entrepreneurs looking to gain complete control of their life and businessCapture what has your attention clarify what you need to do about it to get it off your mind organise the inventory of all your commitments at all levels review and reflect on all of that regularly relax and trust your inner wisdom to engage with the most appropriate thing in the moment
ldquoIf you want to implement strategy most effectively it demands utilising your resources optimallyrdquo
David Allen INTERVIEW
APPSTECH TALK
wwwthecfomecom 65
mAxImISE BUSINESS lsquoON-THE-GOrsquo WITH THESE HANDy APPS
ipAd SpECIAL
SAMSUNG UNvEILS GALAxY NOTE EDGE
Network
AP
Display
OS
Camera
Video
Audio
Additional Features
GoogleMobile Services
Connectivity
Sensor
Memory
Dimension
Battery
The availability of service may differ by country All functionality features specifications and other product information provided in this document including but not limited to the benefits design pricing components performance availability and capabilities of the product are subject to change without notice or obligation
Samsung Galaxy Note Edge Product Specifications
25G (GSM GPRS EDGE) 850 900 1800 1900 MHz3G (HSPA + 42Mbps) 850 900 1900 2100 MHz4G (LTE Cat 4 15050Mbps) or 4G(LTE Cat 6 30050Mbps)May differ by country and carrier
27 GHz Quad-Core Processor
56 inch (1419mm) Quad HD+ Super AMOLED (2560 x 1440 + 160)
Android 44 (KitKat)
Rear Facing 16 Mega pixel Auto Focus camera with Smart OISFront Facing 37 Mega pixel camera with f19Rear Facing Camera HDR (Rich tone) Selective Focus Rear-cam Selfie Beauty face Virtual Tour Shot ShotampMore Dual CameraFront Facing Camera Selfie Wide Selfie
Codec H264 MPEG-4 H263 VC-1 WMV7 WMV8 Sorenson Spark MP43 VP8 Recording amp Playback up to UHD
Codec MP3 AACAAC+eAAC+ WMA AMR-NBWB Vorbis FLAC()() Ultra High Quality Audio (~192KHz 24 bit) support
Multi WindowUltra Power Saving ModeVoice Recorder (Normal Mode Interview Mode Meeting Mode Voice Memo)Download BoosterS Health 35Dynamic Lock ScreenBriefingEdge screen UX Revolving Interaction Immersive apps(Camera Video S Note)Ticker board Express me Quick Tools Night Clock etc
Chrome Drive Photos Gmail Google Google+ Google Settings Hangouts Maps Play Books Play Games Play Newsstand Play Movie amp TV Play Music Play Store Voice Search YouTube
WiFi 80211 abgnac (HT80) MIMO PCIeGPS GLONASS BeidouNFC Bluetoothreg v 41 (BLE ANT+)IR LED (Remote Control) USB20 MHL 30
Gesture Accelerometer Geo-magnetic Gyroscope RGB IR-LEDProximity Barometer Hall Sensor Finger Scanner UV Heart Rate Monitoring SpO2 (Dependent on market)
32 64 GB Internal memory + microSD slot (up to 128GB)3GB RAM
1513 x 824 x 83mm 174g
Standard battery Li-ion 3000 mAh Fast Charging (Adaptive Fast Charging amp QC20)
wwwthecfomecom66
APPSTECH TALK
AIR DISPLAY
SQUARE REGISTER
Using this app you can connect your iPad to your computer and use it as an additional screen While working on an important presentation or sales proposal you can extend or mirror your computer screen on your iPad This app is compatible with both Mac and Windows computers Note that to use this feature you have to install Air Display on your iPad and a separate free app on your computer The computer and iPad also need to be on the same Wi-Fi network in order to work in-sync
For Mac users the app allows you to connect to up to four screens ndash all at the same time
Apart from the ability to convert your iPad into a wireless display whatrsquos also attractive about this app is that it allows you to control your computer wirelessly using your iPad
This fantastic application can serve as a mobile point of sale for your business It allows you to accept credit card payments ndash including Visa MasterCard Discover and American Express A transaction fee of 275 is charged for every time you swipe a card The sale amount is transferred to your account within two working days
Once you download the app you can sign up and register for a unique card reader solution called the lsquoSquare Readerrsquo (this is free) Square Reader encrypts all card details and ensures that the transaction is secure Once you receive your Square Reader you can connect it to your device and are all set
The application also offers added features such as transaction history connecting to a receipt printer creating employee logins and more
AED 3699
PRICE
Free
PRICE
wwwthecfomecom 67
APPSTECH TALK
DOCUSIGNHave you ever been in a situation where your employees need you to urgently sign a contract but arenrsquot able to physically reach you in time DocuSign solves this problem with its easy-to-use eSignature feature In three easy steps you can sign important documents and securely send them to your intended recipient
First you have to import the document to your device ndash this could be from Dropbox Google Drive or another select applications You then place your signature or any other important legal information you need to include such as initials Once you have finished working on the document send it back via e-mail
Whatrsquos particularly great about DocuSign is the great emphasis it puts on security ndash so that users donrsquot have to worry about getting into any legal trouble
Use DocuSign and never miss a deadline again
Free for basic version
PRICE
MPAYAn initiative by the Dubai eGovernment Department mPay is a simple application that allows you to make important payments Once yoursquove signed up and entered your payment details you are good to go You can pay your Dubai Electricity and Water Authority (DEWA) bills Etisalat utility bills Dubai Police fines Recharge SALIK and much more
A handy feature is its lsquoauto-rechargersquo option which you can use to set automatic payments
Free
PRICE
Opinion CIMAPERSONALITIES
wwwthecfomecom68
NEW HORIZONSBy geetu Ahuja Head of gCC at CIMA
The days of the traditional accountant working within a small community in a small town in a small market have long gone CFOs are now being referred to as Chief Frontier Officers as they travel from market to market overseeing their offices overseas This new expanded role has distinct advantages for both the company and the CFO who gain new skills and new insights from foreign branches a single hand at the helm of many markets provides business perspectives on a global scale and benchmarks across the board
On a personal level working abroad also has huge importance Robert Walters the specialist professional recruitment consultancy recently conducted a survey
of almost 2200 employees across a variety of professions exploring a number of topics which ranged from working practices and attitudes to careers The results highlighted some notable trends particularly for finance professionals
In career progression for example the survey showed that 50 of all accountants see working abroad as either lsquoessentialrsquo or lsquoextremely usefulrsquo to furthering their prospects more than banking professionals lawyers and IT workers ndash a strong indication of how accounting professionals are thinking about their future either within their existing company or with opportunities elsewhere
Accountants with globally recognised qualifications obviously have a greater chance of gaining some experience abroad and the lsquoGen Yrsquo professionals in particular seem ready to pack their bags In a CIMA study conducted in the UK last year over a third of those seeking employment in the
next two years will prioritise opportunities abroad over those in their home countries many of them enticed by the career incentives offered by the Middle East
How quickly can they land what seems to be their dream job What are the realities It may be that the move is simply from one branch to another and the only significant difference is a view from the window but for those expanding rather than changing their roles we have seen a very real need for a depth and breadth of knowledge never needed before
As geographical boundaries are pushed ever-wider a CFOrsquos responsibilities are pushed with them For many finance executives the understanding of their own patch of land is no longer enough they now have to be aware of foreign markets up to speed with foreign trends and au fait with foreign laws There is a need for a new commercial awareness in geography as well as philosophy
As geographical boundaries are pushed ever-wider a CFOrsquos responsibilities are pushed with them
John vargheseQampA
wwwthecfomecom 69
BUSINESSSET UP YOUR
IN THE UNITED ARAB EMIRATES
TO
WAREHOUSESOFFICES INDUSTRIAL LANDFLEXI
Quick and easy company set-up
Less than an hour drive from Dubai
Complete cost-effective packages including licences and facilities
100 foreign ownership
Zero income and corporate taxes
Eligibility for UAE Residence Visa
BUSINESS SET-UP SOLUTIONS STARTING FROM AED 15000 (USD 4000)
RAK FREE TRADE ZONE PROVIDES
RAK Free Trade Zone Authority - Government of Ras Al KhaimahUAE (Ras Al Khaimah) Tel +971 7 2041111 (Dubai) Tel +971 4 7041875 (Abu Dhabi) Tel +971 2 6994888
Germany (Cologne) - Turkey (Istanbul) - India (Mumbai)
Call +971 7 204 1111 Visit wwwrakftzcom Join rakftz
54
Islamic FinanceMARKET OUTLOOK
wwwthecfomecom
In its 10th instalment the Forum is hosted in Dubai as a direct result of the UAErsquos increasing importance in the world of global Islamic finance
THE WORLD ISLAmIC ECONOmIC FORUm LANDS IN DUBAI
In Dubairsquos continued quest for leading the world across a range of spectrums the Emirate accelerated its desire to become the worldrsquos leading hub for Islamic finance by hosting the 10th installment of the World Islamic Economic Forum (WIEF) Delegates from dozens of countries attended to take part in a three-day event held at Madinat Jumeirah which rests alongside Dubairsquos gleaming coastline Held under the patronage of His Highness Sheikh Mohammed Bin Rashid Al Maktoum the
Vice President and Prime Minister of the UAE and Ruler of Dubai key speakers included The Honorary Dr Zeti Akhtar Aziz Governor of the Central Bank of Malaysia HE Kairat Kelimbetov Governor of the National Bank of Kazakhstan The Honorary Datorsquo Sri Mohd Najib Tun Abdul Razal Prime Minister of Malaysia and HE Xavier Bettel Prime Minister of the Grand Duchy of Luxembourg
Launched in 2006 in Malaysia WIEF has grown in tandem with the increased
Delegates from dozens of countries attended WIEF to take part in the three-day event
sophistication and reach of Islamic finance After a successful event in London in 2013 amidst increased interest in Islamic finance across Europe WIEF relocated to Dubai where the local business structure is keen to host halal finance
Said Hamad Buamim President and CEO Dubai Chamber of Commerce and Industry co-organisers of the event ldquo[The forum] is the start of a new chapter of cooperation between Dubai and the world as part of
55
Islamic FinanceMARKET OUTLOOK
wwwthecfomecom
Dubai Capital of Islamic Economy visionhellipestablishing a unified regulatory authority to provide the framework for standards across halal industries will significantly accelerate growth Likewise we need to see increased cooperation and partnership between the public and private sectors This is already happening with great success here in Dubairdquo
The order of global cooperation needed to facilitate growth across the Islamic finance world was more than apparent at WIEF based on how many differing nations were represented at the event The exhibitorrsquos hall was populated with a number of key Malaysian stands representative of the Southeast Asianrsquos ranking as the global leader in Islamic finance Also present were companies from Saudi Arabia also a key locality in the worldrsquos halal industries An interesting yet prescient presence was of attendees from South Korea a nation which is eager to participate in Islamic finance and will be hosting the WIEF Pyeongchang Roundtable in December 2014
ldquoGangwon is a province located in Korea which is very interested in new business opportunities Wersquove realised the strength of the Islamic economy and have come here with many different companies The first type is based in real estate investment We also have companies which want to export their products to the Islamic economy based on their halal qualities And Gangwon will also be hosting the Winter
ldquoKorea is very interested in the strength of the Islamic economy and wants to export its products based on their halal qualitiesrdquo
56 wwwthecfomecom
$247trillionProjected value of halal products industry in lsquo18
125Muslim percentage of global tourism expenditure
STAT FACTSOlympics in 2018 and are presently seeking investments for this as wellrdquo said Seong-hun Kim a member of Gangwon Province Governmentrsquos Export Support Team
Dubai proved to be an excellent place for the event considering how well the UAE is able to so regularly corral international cooperation A key sign of this was witnessed recently when Luxembourg now considered the third most important base for Islamic finance globally opened a finance office in Dubai International Finance Centre The European nation also opened a euro200 sukuk earlier this year which was quickly oversubscribed
The prime minister of Luxembourg offered the WIEF audience a riveting speech which detailed just how international the Forum has become whilst encouraging more of the world to support the growing influence of Islamic finance
Said Bettel ldquoWe need to innovate more economic partnerships for growth We sometimes need to reengineer relationships but also have to make sure these relationships remain sustainable Growth in one country also brings growth to others as long as this is guided by free market initiatives Free trade and free flow of capital combined with innovation leads to prosperity We have all gathered here in Dubai to explore the future of Islamic finance and Luxembourg is also a pioneer of Islamic finance in Europe The Islamic financial sector has a major role to play in continued global growthrdquo
The Islamic Corporation for the Development of the Private Sector (ICD) is based in the Kingdom of Saudi Arabia where it manages an international fund worth $2 billion half of which is available for subscription With shareholders in more than 50 countries and a sovereign sukuk fund recently launched in West Africa the ICDrsquos CEO Khaled M Al Aboodi attended WIEF this year excited to participate in the global event
How does the ICD approach its attendance at the World Islamic Economic ForumI think the Forum is one of the best places for discussing the financial issues of the OEC member countries It has been around for ten years and has grown to become a very important platform for discussion Wersquore here to attend and listen but also to network Itrsquos a great networking platform and a place to share views whilst letting everyone know what we have to offer
How has Islamic finance changed over the yearsOf course itrsquos growing in a large scale Some of it actually needs more support particularly with respect to regulatory frameworks Wersquore trying to partner with many international organisations like the IMF to try to provide support to countries to adapt regulation for Islamic finance Sukuk issuance is one of the biggest issues that needs to be addressed because there is a huge amount of liquidity in this arena Due to issues related to regulation sukuk issuance can be costly But with the regulation we are confident it will be on a level playing field with other forms of finance Compliance is a major area where more work can be done The Forum started with a roundtable on sukuk which shows how helpful WIEF has been over the years
What type of work does ICD do internationallyICD helped the government of Senegal to issue the first sovereign sukuk This was successfully issued last summer Progressing in this manner is something wersquod like to see continue across West Africa in order to utilise its resources with aiding development in the region in mind
QampA WITH KHALED M AL ABOODI CEO OF ICD
Islamic FinanceMARKET OUTLOOK
OFFICIAL SPONSORS
ENDORSED BY OFFICIAL HOST OFFICIAL
COMMUNICATIONS PARTNER
MEYDAN HOTEL DUBAI UAE19 - 20 NOVEMBER 2014
WOMENOMICSthe next emerging market
TAKE PART in making change happen UNITE with business and through leaders from across the globe
PARTICIPATE to the expansion of a modern and inclusive economy
58
Gautam PradhanINTERVIEW
wwwthecfomecom
SUCCESS BEyOND BOUNDARIES
in other management roles such as strategic decision making mentoring and leading efficiency and productivity across a range of other departments and functions as well as a being a catalyst in ensuring that the boardrsquos vision for the organisation is achieved
A significant percentage of NMDCrsquos shares are owned publicly Does the CFO play a role in balancing the interests of the shareholdersAs a CFO balancing the shareholdersrsquo interests is definitely part of my responsibility In order to achieve this goal there needs to be a careful evaluation of each decision while keeping the short-term and long-term goals of the company in mind At NMDC we actively implement a system where we utilise a balance scorecard as a method of ensuring that all our primary objectives are met yet at the same time continuously enhance our relationships with our shareholders
NMDC has completed various projects across the Emirates Are there plans to move abroadAs NMDC moves towards becoming an international player our strategic expansion plans are focused in areas within the GCC region and India In line with this strategy we opened
How has a company with such a unique set of deliverables grown so consistently over the yearsOur organisation strongly believes that the core to our strength is the people process and equipment A strategic decision led by our Board of Directors and the senior management has been implemented that required us to consistently invest in these three aspects to help expand our business beyond the territorial boundaries of the UAE and at the same time enhance what we can offer which is relevant to these segments We attribute our success to the efforts which every employee contributes We also strongly believe in the ldquoWe can make it happenrdquo principle The management raises the index of performance while setting SMART objectives within the organisation and encouraging the employees to achieve them
How has your position as the CFO changed over NMDCrsquos 35 years of operationAs the market evolves and business dynamics change my role as the CFO has become complex and more challenging A few years back I was mainly focused on bookkeeping accounting and other financial responsibilities such as arranging bank facilities But moving forward I became more involved
The UAE is progressively becoming a hub for world-class infrastructure The country has duly impressed the rest of the globe with noteworthy land developments showcased across the emirates Among the remarkable landscapes found in Abu Dhabi are the Corniche Beach Yas Island and Sir Baniyas Island Behind these successful projects is NMDC the dredging division of Abu Dhabi National Oil Company (ADNOC)
In an interview with CFO Magazine Gautam Pradhan Chief Financial Officer NMDC shares an exclusive look into the companyrsquos international blueprint for growth and his dynamic role as a strategic leader of one of the best in dredging and marine construction in the Middle East
59
Gautam PradhanINTERVIEW
wwwthecfomecom
branches in Qatar Bahrain Oman and India This has paid rich dividends recently as projects of strategic importance are bagged in Qatar and Bahrain Furthermore NMDC (UAE) has recently played a key role as a leader of an international consortium with Royal Boskalis Westminister (Netherlands) and Jan De Nul Group (Belgium) for the awarding of the Suez Canal Dredging project in Egypt Moving forward we have devised a strategic approach that will enable us to play a key role in the development of Indiarsquos marine infrastructure
What are the global strategies that are part of the CFOrsquos responsibilitiesAs CFO understanding the macro economic scenario risk analysis and mitigating those risks are all a part of my responsibilities I also have to have a proper comprehension
ldquoA few years back I was mainly focused on financial responsibilities moving forward I became more involved in strategic decision making mentoring and leading productivityrdquo
Gautam PradhanINTERVIEW
60 wwwthecfomecom
of the challenges faced by the company in terms of dealing with foreign contracts direct and indirect taxes and hedging and managing the integration process These are essential to enhance shareholders wealth and mitigate undue risk
How significant is accountancy for NMDC in its operations Why exactlyAccountancy is the lifeline of any company it does not only record the finances it also reflects the health of the organisation The MIS reports analysis trends and statistical information go a long way toward effectively providing
the diagnostic approach essential for the company
How have NMDCrsquos environmental activities helped the companyrsquos bottom lineNMDCrsquos work is well-synchronised with our environmental activities and specifically with nature Our activities are closely linked to sand and water and we view such activities with strategic importance Projects such as increasing water supply to mangroves and beach nourishment help us support the environmental activities while adding to our bottom line
ldquoAccountancy is the lifeline of any company it does not only record the finances it also reflects the health of the organisationrdquo
A burgeoning slice of Abu Dhabi coastline
The largest business awards
in the GCC30th November Dubai
nominate now at wwwstarsofbusinessawardscom
Stars of Business has become an iconic awards brand like no other in the region It recognizes the very best SMEs across 26 business categories Itrsquos universally respected as scientifically assessed and unimpeachably judged
327000 SMEs across the UAE$234 billion estimated total revenue of the SME sector4974 Awards entries in 20131856 Individual company applicants
Presenting Partner Strategic SME Partner Gold Sponsor Gold Sponsor VIP Hospitality Partner Supporting Partner
Trade Facilitator PartnerTrade Credit PartnerLogistics Partner
Institutional Partner Institutional Partner Event Partner
OrganiserPublisherMedia Partner Media PartnerPort Authority Partner
62
David Allen INTERVIEW
wwwthecfomecom
What went into completing your bestseller ndash Getting Things Done (GTD)After twenty years of researching developing and implementing a methodology for achieving stress-free productivity based upon
thousands of hours spent desk-side with
some of the best brightest and busiest people in the world I decided to write the manual for it Thatrsquos what Getting Things Done is
What are the five phases of mastering workflowIn order to get
any situation under control so
you can focus you will utilise these five
steps Whether yoursquore managing your kitchen
or your company you will need to collect and capture what has your attention clarify what if anything to do about it organise it according to what it means to you review and reflect upon it in relation to
Todayrsquos evolving CFO is often caught between the world of business set-up generating revenue managing employees and building strong company infrastructure When can things actually get done What can one do to boost productivity and master workflow World-renowned business coach David Allen has the answers
PRODUCTIvITy PRINCIPLES WITH
DAvID ALLEN
63
David Allen INTERVIEW
wwwthecfomecom
those are greatly subvertedHow does one maintain a fair balance between the time spent planning and actually getting things doneYou simply need to spend just the amount of time you need to to trust that what you are getting done is the right thing to be getting done in the moment It takes as long as it takes to get to that point Why would you do anything less
How can one apply your core productivity and workflow principles to todayrsquos technologically driven environmentThe principles and their techniques are system-independent Whether you have meaningful input from the Internet your smartphone or a conversation in the hall you must engage with it equally Technology has simply increased the flow of input and ease of distraction in your world
There is a lot of talk about how connected wersquove become and how connectivity is driving tremendous business growth Does connectivity actually come with its fair share of downsides
Connectivity is obviously a two-edged sword We can have intimate productive and creative interaction instantly with someone on the other side of the world and we can just as easily be distracted and seduced into those engagements when they may not be the best use of our attention and resources Donrsquot shoot the medium Itrsquos all simply bringing attention to your clarity of direction and priorities or lack thereof
Could you share a few quick tips with our readers to instantly boost productivityWrite everything down that has your attention Decide the very next actions required to get closure on all of them Any next actions that require less than two minutes do instantly Park reminders of everything else somewhere that yoursquoll see when you can do something about them
We are currently facing a massive information overload What are some basic principles you could suggest to mentally organise such large amounts of dataConstantly ask yourself Where am I going Whatrsquos important and rewarding to me Is this information
the whole and then engage your resources with intuitive trust
As a CFO how can you transfer efficient workflow management skills to your employees Itrsquos very difficult to legislate processes for individuals ndash you can really only hold them accountable for their results But if you are managing your own commitments and intersections with them with integrity and rigour it will automatically force your team to ldquostep up to the platerdquo in their own behaviours in order to meet your standards If you request their complete list of their company projects and they canrsquot produce it thatrsquos a sign theyrsquore not in control If they make a commitment to you that they havenrsquot kept thatrsquos data about their performance GTD is simply about good operational business practices
With so many planning and organising activities in your methodology is there a risk of losing spontaneity as a strategistThe reason for these best practices is to optimise freedom creativity and spontaneity Without them
ldquoBut if you are manag-ing your own com-mitments and intersec-tions with them with integrity and rigour it will automatical-ly force them to ldquostep up to the platerdquo in their own behaviours in order to meet your standardsrdquo
64 wwwthecfomecom
supporting that Park whatever you find potentially meaningful somewhere that is easy to access when needed
Being an entrepreneur is a non-stop job How do you ensure that you have an adequate work-life balance Pay attention to what has your attentionmdashwith regard to anything Your health relationships career finances etc Notice when something might be ldquooffrdquo and make good decisions about what you need to do to get it back ldquoonrdquo again
Does your work teach people to be efficient or effective In essence they are the same thing Effective choices are generated by efficiency on a higher level If you want to implement strategy most effectively it demands utilising your resources optimally which is efficiency
Does motivation actually improve quality of work or purely quantityDepends on the focus of the motivation You can be motivated to work harder and you can be motivated to work smarter
What is your favourite productivity mantra that
you implement in your day-to-day lifeUsing my own in-basket and note-taking devices to capture potentially meaningful and valuable ideas and soon afterwards clearing all of them out by deciding what to do about them if anything
Your books seminars and other work inspires many individuals and businesses Who is your personal inspiration or role model I have many about many different aspects of my life The only person though that I ultimately trust as my best guide is my higher self which I try to access as frequently and clearly as I can
Finally what advice would you give to current business owners and aspiring entrepreneurs looking to gain complete control of their life and businessCapture what has your attention clarify what you need to do about it to get it off your mind organise the inventory of all your commitments at all levels review and reflect on all of that regularly relax and trust your inner wisdom to engage with the most appropriate thing in the moment
ldquoIf you want to implement strategy most effectively it demands utilising your resources optimallyrdquo
David Allen INTERVIEW
APPSTECH TALK
wwwthecfomecom 65
mAxImISE BUSINESS lsquoON-THE-GOrsquo WITH THESE HANDy APPS
ipAd SpECIAL
SAMSUNG UNvEILS GALAxY NOTE EDGE
Network
AP
Display
OS
Camera
Video
Audio
Additional Features
GoogleMobile Services
Connectivity
Sensor
Memory
Dimension
Battery
The availability of service may differ by country All functionality features specifications and other product information provided in this document including but not limited to the benefits design pricing components performance availability and capabilities of the product are subject to change without notice or obligation
Samsung Galaxy Note Edge Product Specifications
25G (GSM GPRS EDGE) 850 900 1800 1900 MHz3G (HSPA + 42Mbps) 850 900 1900 2100 MHz4G (LTE Cat 4 15050Mbps) or 4G(LTE Cat 6 30050Mbps)May differ by country and carrier
27 GHz Quad-Core Processor
56 inch (1419mm) Quad HD+ Super AMOLED (2560 x 1440 + 160)
Android 44 (KitKat)
Rear Facing 16 Mega pixel Auto Focus camera with Smart OISFront Facing 37 Mega pixel camera with f19Rear Facing Camera HDR (Rich tone) Selective Focus Rear-cam Selfie Beauty face Virtual Tour Shot ShotampMore Dual CameraFront Facing Camera Selfie Wide Selfie
Codec H264 MPEG-4 H263 VC-1 WMV7 WMV8 Sorenson Spark MP43 VP8 Recording amp Playback up to UHD
Codec MP3 AACAAC+eAAC+ WMA AMR-NBWB Vorbis FLAC()() Ultra High Quality Audio (~192KHz 24 bit) support
Multi WindowUltra Power Saving ModeVoice Recorder (Normal Mode Interview Mode Meeting Mode Voice Memo)Download BoosterS Health 35Dynamic Lock ScreenBriefingEdge screen UX Revolving Interaction Immersive apps(Camera Video S Note)Ticker board Express me Quick Tools Night Clock etc
Chrome Drive Photos Gmail Google Google+ Google Settings Hangouts Maps Play Books Play Games Play Newsstand Play Movie amp TV Play Music Play Store Voice Search YouTube
WiFi 80211 abgnac (HT80) MIMO PCIeGPS GLONASS BeidouNFC Bluetoothreg v 41 (BLE ANT+)IR LED (Remote Control) USB20 MHL 30
Gesture Accelerometer Geo-magnetic Gyroscope RGB IR-LEDProximity Barometer Hall Sensor Finger Scanner UV Heart Rate Monitoring SpO2 (Dependent on market)
32 64 GB Internal memory + microSD slot (up to 128GB)3GB RAM
1513 x 824 x 83mm 174g
Standard battery Li-ion 3000 mAh Fast Charging (Adaptive Fast Charging amp QC20)
wwwthecfomecom66
APPSTECH TALK
AIR DISPLAY
SQUARE REGISTER
Using this app you can connect your iPad to your computer and use it as an additional screen While working on an important presentation or sales proposal you can extend or mirror your computer screen on your iPad This app is compatible with both Mac and Windows computers Note that to use this feature you have to install Air Display on your iPad and a separate free app on your computer The computer and iPad also need to be on the same Wi-Fi network in order to work in-sync
For Mac users the app allows you to connect to up to four screens ndash all at the same time
Apart from the ability to convert your iPad into a wireless display whatrsquos also attractive about this app is that it allows you to control your computer wirelessly using your iPad
This fantastic application can serve as a mobile point of sale for your business It allows you to accept credit card payments ndash including Visa MasterCard Discover and American Express A transaction fee of 275 is charged for every time you swipe a card The sale amount is transferred to your account within two working days
Once you download the app you can sign up and register for a unique card reader solution called the lsquoSquare Readerrsquo (this is free) Square Reader encrypts all card details and ensures that the transaction is secure Once you receive your Square Reader you can connect it to your device and are all set
The application also offers added features such as transaction history connecting to a receipt printer creating employee logins and more
AED 3699
PRICE
Free
PRICE
wwwthecfomecom 67
APPSTECH TALK
DOCUSIGNHave you ever been in a situation where your employees need you to urgently sign a contract but arenrsquot able to physically reach you in time DocuSign solves this problem with its easy-to-use eSignature feature In three easy steps you can sign important documents and securely send them to your intended recipient
First you have to import the document to your device ndash this could be from Dropbox Google Drive or another select applications You then place your signature or any other important legal information you need to include such as initials Once you have finished working on the document send it back via e-mail
Whatrsquos particularly great about DocuSign is the great emphasis it puts on security ndash so that users donrsquot have to worry about getting into any legal trouble
Use DocuSign and never miss a deadline again
Free for basic version
PRICE
MPAYAn initiative by the Dubai eGovernment Department mPay is a simple application that allows you to make important payments Once yoursquove signed up and entered your payment details you are good to go You can pay your Dubai Electricity and Water Authority (DEWA) bills Etisalat utility bills Dubai Police fines Recharge SALIK and much more
A handy feature is its lsquoauto-rechargersquo option which you can use to set automatic payments
Free
PRICE
Opinion CIMAPERSONALITIES
wwwthecfomecom68
NEW HORIZONSBy geetu Ahuja Head of gCC at CIMA
The days of the traditional accountant working within a small community in a small town in a small market have long gone CFOs are now being referred to as Chief Frontier Officers as they travel from market to market overseeing their offices overseas This new expanded role has distinct advantages for both the company and the CFO who gain new skills and new insights from foreign branches a single hand at the helm of many markets provides business perspectives on a global scale and benchmarks across the board
On a personal level working abroad also has huge importance Robert Walters the specialist professional recruitment consultancy recently conducted a survey
of almost 2200 employees across a variety of professions exploring a number of topics which ranged from working practices and attitudes to careers The results highlighted some notable trends particularly for finance professionals
In career progression for example the survey showed that 50 of all accountants see working abroad as either lsquoessentialrsquo or lsquoextremely usefulrsquo to furthering their prospects more than banking professionals lawyers and IT workers ndash a strong indication of how accounting professionals are thinking about their future either within their existing company or with opportunities elsewhere
Accountants with globally recognised qualifications obviously have a greater chance of gaining some experience abroad and the lsquoGen Yrsquo professionals in particular seem ready to pack their bags In a CIMA study conducted in the UK last year over a third of those seeking employment in the
next two years will prioritise opportunities abroad over those in their home countries many of them enticed by the career incentives offered by the Middle East
How quickly can they land what seems to be their dream job What are the realities It may be that the move is simply from one branch to another and the only significant difference is a view from the window but for those expanding rather than changing their roles we have seen a very real need for a depth and breadth of knowledge never needed before
As geographical boundaries are pushed ever-wider a CFOrsquos responsibilities are pushed with them For many finance executives the understanding of their own patch of land is no longer enough they now have to be aware of foreign markets up to speed with foreign trends and au fait with foreign laws There is a need for a new commercial awareness in geography as well as philosophy
As geographical boundaries are pushed ever-wider a CFOrsquos responsibilities are pushed with them
John vargheseQampA
wwwthecfomecom 69
BUSINESSSET UP YOUR
IN THE UNITED ARAB EMIRATES
TO
WAREHOUSESOFFICES INDUSTRIAL LANDFLEXI
Quick and easy company set-up
Less than an hour drive from Dubai
Complete cost-effective packages including licences and facilities
100 foreign ownership
Zero income and corporate taxes
Eligibility for UAE Residence Visa
BUSINESS SET-UP SOLUTIONS STARTING FROM AED 15000 (USD 4000)
RAK FREE TRADE ZONE PROVIDES
RAK Free Trade Zone Authority - Government of Ras Al KhaimahUAE (Ras Al Khaimah) Tel +971 7 2041111 (Dubai) Tel +971 4 7041875 (Abu Dhabi) Tel +971 2 6994888
Germany (Cologne) - Turkey (Istanbul) - India (Mumbai)
Call +971 7 204 1111 Visit wwwrakftzcom Join rakftz
55
Islamic FinanceMARKET OUTLOOK
wwwthecfomecom
Dubai Capital of Islamic Economy visionhellipestablishing a unified regulatory authority to provide the framework for standards across halal industries will significantly accelerate growth Likewise we need to see increased cooperation and partnership between the public and private sectors This is already happening with great success here in Dubairdquo
The order of global cooperation needed to facilitate growth across the Islamic finance world was more than apparent at WIEF based on how many differing nations were represented at the event The exhibitorrsquos hall was populated with a number of key Malaysian stands representative of the Southeast Asianrsquos ranking as the global leader in Islamic finance Also present were companies from Saudi Arabia also a key locality in the worldrsquos halal industries An interesting yet prescient presence was of attendees from South Korea a nation which is eager to participate in Islamic finance and will be hosting the WIEF Pyeongchang Roundtable in December 2014
ldquoGangwon is a province located in Korea which is very interested in new business opportunities Wersquove realised the strength of the Islamic economy and have come here with many different companies The first type is based in real estate investment We also have companies which want to export their products to the Islamic economy based on their halal qualities And Gangwon will also be hosting the Winter
ldquoKorea is very interested in the strength of the Islamic economy and wants to export its products based on their halal qualitiesrdquo
56 wwwthecfomecom
$247trillionProjected value of halal products industry in lsquo18
125Muslim percentage of global tourism expenditure
STAT FACTSOlympics in 2018 and are presently seeking investments for this as wellrdquo said Seong-hun Kim a member of Gangwon Province Governmentrsquos Export Support Team
Dubai proved to be an excellent place for the event considering how well the UAE is able to so regularly corral international cooperation A key sign of this was witnessed recently when Luxembourg now considered the third most important base for Islamic finance globally opened a finance office in Dubai International Finance Centre The European nation also opened a euro200 sukuk earlier this year which was quickly oversubscribed
The prime minister of Luxembourg offered the WIEF audience a riveting speech which detailed just how international the Forum has become whilst encouraging more of the world to support the growing influence of Islamic finance
Said Bettel ldquoWe need to innovate more economic partnerships for growth We sometimes need to reengineer relationships but also have to make sure these relationships remain sustainable Growth in one country also brings growth to others as long as this is guided by free market initiatives Free trade and free flow of capital combined with innovation leads to prosperity We have all gathered here in Dubai to explore the future of Islamic finance and Luxembourg is also a pioneer of Islamic finance in Europe The Islamic financial sector has a major role to play in continued global growthrdquo
The Islamic Corporation for the Development of the Private Sector (ICD) is based in the Kingdom of Saudi Arabia where it manages an international fund worth $2 billion half of which is available for subscription With shareholders in more than 50 countries and a sovereign sukuk fund recently launched in West Africa the ICDrsquos CEO Khaled M Al Aboodi attended WIEF this year excited to participate in the global event
How does the ICD approach its attendance at the World Islamic Economic ForumI think the Forum is one of the best places for discussing the financial issues of the OEC member countries It has been around for ten years and has grown to become a very important platform for discussion Wersquore here to attend and listen but also to network Itrsquos a great networking platform and a place to share views whilst letting everyone know what we have to offer
How has Islamic finance changed over the yearsOf course itrsquos growing in a large scale Some of it actually needs more support particularly with respect to regulatory frameworks Wersquore trying to partner with many international organisations like the IMF to try to provide support to countries to adapt regulation for Islamic finance Sukuk issuance is one of the biggest issues that needs to be addressed because there is a huge amount of liquidity in this arena Due to issues related to regulation sukuk issuance can be costly But with the regulation we are confident it will be on a level playing field with other forms of finance Compliance is a major area where more work can be done The Forum started with a roundtable on sukuk which shows how helpful WIEF has been over the years
What type of work does ICD do internationallyICD helped the government of Senegal to issue the first sovereign sukuk This was successfully issued last summer Progressing in this manner is something wersquod like to see continue across West Africa in order to utilise its resources with aiding development in the region in mind
QampA WITH KHALED M AL ABOODI CEO OF ICD
Islamic FinanceMARKET OUTLOOK
OFFICIAL SPONSORS
ENDORSED BY OFFICIAL HOST OFFICIAL
COMMUNICATIONS PARTNER
MEYDAN HOTEL DUBAI UAE19 - 20 NOVEMBER 2014
WOMENOMICSthe next emerging market
TAKE PART in making change happen UNITE with business and through leaders from across the globe
PARTICIPATE to the expansion of a modern and inclusive economy
58
Gautam PradhanINTERVIEW
wwwthecfomecom
SUCCESS BEyOND BOUNDARIES
in other management roles such as strategic decision making mentoring and leading efficiency and productivity across a range of other departments and functions as well as a being a catalyst in ensuring that the boardrsquos vision for the organisation is achieved
A significant percentage of NMDCrsquos shares are owned publicly Does the CFO play a role in balancing the interests of the shareholdersAs a CFO balancing the shareholdersrsquo interests is definitely part of my responsibility In order to achieve this goal there needs to be a careful evaluation of each decision while keeping the short-term and long-term goals of the company in mind At NMDC we actively implement a system where we utilise a balance scorecard as a method of ensuring that all our primary objectives are met yet at the same time continuously enhance our relationships with our shareholders
NMDC has completed various projects across the Emirates Are there plans to move abroadAs NMDC moves towards becoming an international player our strategic expansion plans are focused in areas within the GCC region and India In line with this strategy we opened
How has a company with such a unique set of deliverables grown so consistently over the yearsOur organisation strongly believes that the core to our strength is the people process and equipment A strategic decision led by our Board of Directors and the senior management has been implemented that required us to consistently invest in these three aspects to help expand our business beyond the territorial boundaries of the UAE and at the same time enhance what we can offer which is relevant to these segments We attribute our success to the efforts which every employee contributes We also strongly believe in the ldquoWe can make it happenrdquo principle The management raises the index of performance while setting SMART objectives within the organisation and encouraging the employees to achieve them
How has your position as the CFO changed over NMDCrsquos 35 years of operationAs the market evolves and business dynamics change my role as the CFO has become complex and more challenging A few years back I was mainly focused on bookkeeping accounting and other financial responsibilities such as arranging bank facilities But moving forward I became more involved
The UAE is progressively becoming a hub for world-class infrastructure The country has duly impressed the rest of the globe with noteworthy land developments showcased across the emirates Among the remarkable landscapes found in Abu Dhabi are the Corniche Beach Yas Island and Sir Baniyas Island Behind these successful projects is NMDC the dredging division of Abu Dhabi National Oil Company (ADNOC)
In an interview with CFO Magazine Gautam Pradhan Chief Financial Officer NMDC shares an exclusive look into the companyrsquos international blueprint for growth and his dynamic role as a strategic leader of one of the best in dredging and marine construction in the Middle East
59
Gautam PradhanINTERVIEW
wwwthecfomecom
branches in Qatar Bahrain Oman and India This has paid rich dividends recently as projects of strategic importance are bagged in Qatar and Bahrain Furthermore NMDC (UAE) has recently played a key role as a leader of an international consortium with Royal Boskalis Westminister (Netherlands) and Jan De Nul Group (Belgium) for the awarding of the Suez Canal Dredging project in Egypt Moving forward we have devised a strategic approach that will enable us to play a key role in the development of Indiarsquos marine infrastructure
What are the global strategies that are part of the CFOrsquos responsibilitiesAs CFO understanding the macro economic scenario risk analysis and mitigating those risks are all a part of my responsibilities I also have to have a proper comprehension
ldquoA few years back I was mainly focused on financial responsibilities moving forward I became more involved in strategic decision making mentoring and leading productivityrdquo
Gautam PradhanINTERVIEW
60 wwwthecfomecom
of the challenges faced by the company in terms of dealing with foreign contracts direct and indirect taxes and hedging and managing the integration process These are essential to enhance shareholders wealth and mitigate undue risk
How significant is accountancy for NMDC in its operations Why exactlyAccountancy is the lifeline of any company it does not only record the finances it also reflects the health of the organisation The MIS reports analysis trends and statistical information go a long way toward effectively providing
the diagnostic approach essential for the company
How have NMDCrsquos environmental activities helped the companyrsquos bottom lineNMDCrsquos work is well-synchronised with our environmental activities and specifically with nature Our activities are closely linked to sand and water and we view such activities with strategic importance Projects such as increasing water supply to mangroves and beach nourishment help us support the environmental activities while adding to our bottom line
ldquoAccountancy is the lifeline of any company it does not only record the finances it also reflects the health of the organisationrdquo
A burgeoning slice of Abu Dhabi coastline
The largest business awards
in the GCC30th November Dubai
nominate now at wwwstarsofbusinessawardscom
Stars of Business has become an iconic awards brand like no other in the region It recognizes the very best SMEs across 26 business categories Itrsquos universally respected as scientifically assessed and unimpeachably judged
327000 SMEs across the UAE$234 billion estimated total revenue of the SME sector4974 Awards entries in 20131856 Individual company applicants
Presenting Partner Strategic SME Partner Gold Sponsor Gold Sponsor VIP Hospitality Partner Supporting Partner
Trade Facilitator PartnerTrade Credit PartnerLogistics Partner
Institutional Partner Institutional Partner Event Partner
OrganiserPublisherMedia Partner Media PartnerPort Authority Partner
62
David Allen INTERVIEW
wwwthecfomecom
What went into completing your bestseller ndash Getting Things Done (GTD)After twenty years of researching developing and implementing a methodology for achieving stress-free productivity based upon
thousands of hours spent desk-side with
some of the best brightest and busiest people in the world I decided to write the manual for it Thatrsquos what Getting Things Done is
What are the five phases of mastering workflowIn order to get
any situation under control so
you can focus you will utilise these five
steps Whether yoursquore managing your kitchen
or your company you will need to collect and capture what has your attention clarify what if anything to do about it organise it according to what it means to you review and reflect upon it in relation to
Todayrsquos evolving CFO is often caught between the world of business set-up generating revenue managing employees and building strong company infrastructure When can things actually get done What can one do to boost productivity and master workflow World-renowned business coach David Allen has the answers
PRODUCTIvITy PRINCIPLES WITH
DAvID ALLEN
63
David Allen INTERVIEW
wwwthecfomecom
those are greatly subvertedHow does one maintain a fair balance between the time spent planning and actually getting things doneYou simply need to spend just the amount of time you need to to trust that what you are getting done is the right thing to be getting done in the moment It takes as long as it takes to get to that point Why would you do anything less
How can one apply your core productivity and workflow principles to todayrsquos technologically driven environmentThe principles and their techniques are system-independent Whether you have meaningful input from the Internet your smartphone or a conversation in the hall you must engage with it equally Technology has simply increased the flow of input and ease of distraction in your world
There is a lot of talk about how connected wersquove become and how connectivity is driving tremendous business growth Does connectivity actually come with its fair share of downsides
Connectivity is obviously a two-edged sword We can have intimate productive and creative interaction instantly with someone on the other side of the world and we can just as easily be distracted and seduced into those engagements when they may not be the best use of our attention and resources Donrsquot shoot the medium Itrsquos all simply bringing attention to your clarity of direction and priorities or lack thereof
Could you share a few quick tips with our readers to instantly boost productivityWrite everything down that has your attention Decide the very next actions required to get closure on all of them Any next actions that require less than two minutes do instantly Park reminders of everything else somewhere that yoursquoll see when you can do something about them
We are currently facing a massive information overload What are some basic principles you could suggest to mentally organise such large amounts of dataConstantly ask yourself Where am I going Whatrsquos important and rewarding to me Is this information
the whole and then engage your resources with intuitive trust
As a CFO how can you transfer efficient workflow management skills to your employees Itrsquos very difficult to legislate processes for individuals ndash you can really only hold them accountable for their results But if you are managing your own commitments and intersections with them with integrity and rigour it will automatically force your team to ldquostep up to the platerdquo in their own behaviours in order to meet your standards If you request their complete list of their company projects and they canrsquot produce it thatrsquos a sign theyrsquore not in control If they make a commitment to you that they havenrsquot kept thatrsquos data about their performance GTD is simply about good operational business practices
With so many planning and organising activities in your methodology is there a risk of losing spontaneity as a strategistThe reason for these best practices is to optimise freedom creativity and spontaneity Without them
ldquoBut if you are manag-ing your own com-mitments and intersec-tions with them with integrity and rigour it will automatical-ly force them to ldquostep up to the platerdquo in their own behaviours in order to meet your standardsrdquo
64 wwwthecfomecom
supporting that Park whatever you find potentially meaningful somewhere that is easy to access when needed
Being an entrepreneur is a non-stop job How do you ensure that you have an adequate work-life balance Pay attention to what has your attentionmdashwith regard to anything Your health relationships career finances etc Notice when something might be ldquooffrdquo and make good decisions about what you need to do to get it back ldquoonrdquo again
Does your work teach people to be efficient or effective In essence they are the same thing Effective choices are generated by efficiency on a higher level If you want to implement strategy most effectively it demands utilising your resources optimally which is efficiency
Does motivation actually improve quality of work or purely quantityDepends on the focus of the motivation You can be motivated to work harder and you can be motivated to work smarter
What is your favourite productivity mantra that
you implement in your day-to-day lifeUsing my own in-basket and note-taking devices to capture potentially meaningful and valuable ideas and soon afterwards clearing all of them out by deciding what to do about them if anything
Your books seminars and other work inspires many individuals and businesses Who is your personal inspiration or role model I have many about many different aspects of my life The only person though that I ultimately trust as my best guide is my higher self which I try to access as frequently and clearly as I can
Finally what advice would you give to current business owners and aspiring entrepreneurs looking to gain complete control of their life and businessCapture what has your attention clarify what you need to do about it to get it off your mind organise the inventory of all your commitments at all levels review and reflect on all of that regularly relax and trust your inner wisdom to engage with the most appropriate thing in the moment
ldquoIf you want to implement strategy most effectively it demands utilising your resources optimallyrdquo
David Allen INTERVIEW
APPSTECH TALK
wwwthecfomecom 65
mAxImISE BUSINESS lsquoON-THE-GOrsquo WITH THESE HANDy APPS
ipAd SpECIAL
SAMSUNG UNvEILS GALAxY NOTE EDGE
Network
AP
Display
OS
Camera
Video
Audio
Additional Features
GoogleMobile Services
Connectivity
Sensor
Memory
Dimension
Battery
The availability of service may differ by country All functionality features specifications and other product information provided in this document including but not limited to the benefits design pricing components performance availability and capabilities of the product are subject to change without notice or obligation
Samsung Galaxy Note Edge Product Specifications
25G (GSM GPRS EDGE) 850 900 1800 1900 MHz3G (HSPA + 42Mbps) 850 900 1900 2100 MHz4G (LTE Cat 4 15050Mbps) or 4G(LTE Cat 6 30050Mbps)May differ by country and carrier
27 GHz Quad-Core Processor
56 inch (1419mm) Quad HD+ Super AMOLED (2560 x 1440 + 160)
Android 44 (KitKat)
Rear Facing 16 Mega pixel Auto Focus camera with Smart OISFront Facing 37 Mega pixel camera with f19Rear Facing Camera HDR (Rich tone) Selective Focus Rear-cam Selfie Beauty face Virtual Tour Shot ShotampMore Dual CameraFront Facing Camera Selfie Wide Selfie
Codec H264 MPEG-4 H263 VC-1 WMV7 WMV8 Sorenson Spark MP43 VP8 Recording amp Playback up to UHD
Codec MP3 AACAAC+eAAC+ WMA AMR-NBWB Vorbis FLAC()() Ultra High Quality Audio (~192KHz 24 bit) support
Multi WindowUltra Power Saving ModeVoice Recorder (Normal Mode Interview Mode Meeting Mode Voice Memo)Download BoosterS Health 35Dynamic Lock ScreenBriefingEdge screen UX Revolving Interaction Immersive apps(Camera Video S Note)Ticker board Express me Quick Tools Night Clock etc
Chrome Drive Photos Gmail Google Google+ Google Settings Hangouts Maps Play Books Play Games Play Newsstand Play Movie amp TV Play Music Play Store Voice Search YouTube
WiFi 80211 abgnac (HT80) MIMO PCIeGPS GLONASS BeidouNFC Bluetoothreg v 41 (BLE ANT+)IR LED (Remote Control) USB20 MHL 30
Gesture Accelerometer Geo-magnetic Gyroscope RGB IR-LEDProximity Barometer Hall Sensor Finger Scanner UV Heart Rate Monitoring SpO2 (Dependent on market)
32 64 GB Internal memory + microSD slot (up to 128GB)3GB RAM
1513 x 824 x 83mm 174g
Standard battery Li-ion 3000 mAh Fast Charging (Adaptive Fast Charging amp QC20)
wwwthecfomecom66
APPSTECH TALK
AIR DISPLAY
SQUARE REGISTER
Using this app you can connect your iPad to your computer and use it as an additional screen While working on an important presentation or sales proposal you can extend or mirror your computer screen on your iPad This app is compatible with both Mac and Windows computers Note that to use this feature you have to install Air Display on your iPad and a separate free app on your computer The computer and iPad also need to be on the same Wi-Fi network in order to work in-sync
For Mac users the app allows you to connect to up to four screens ndash all at the same time
Apart from the ability to convert your iPad into a wireless display whatrsquos also attractive about this app is that it allows you to control your computer wirelessly using your iPad
This fantastic application can serve as a mobile point of sale for your business It allows you to accept credit card payments ndash including Visa MasterCard Discover and American Express A transaction fee of 275 is charged for every time you swipe a card The sale amount is transferred to your account within two working days
Once you download the app you can sign up and register for a unique card reader solution called the lsquoSquare Readerrsquo (this is free) Square Reader encrypts all card details and ensures that the transaction is secure Once you receive your Square Reader you can connect it to your device and are all set
The application also offers added features such as transaction history connecting to a receipt printer creating employee logins and more
AED 3699
PRICE
Free
PRICE
wwwthecfomecom 67
APPSTECH TALK
DOCUSIGNHave you ever been in a situation where your employees need you to urgently sign a contract but arenrsquot able to physically reach you in time DocuSign solves this problem with its easy-to-use eSignature feature In three easy steps you can sign important documents and securely send them to your intended recipient
First you have to import the document to your device ndash this could be from Dropbox Google Drive or another select applications You then place your signature or any other important legal information you need to include such as initials Once you have finished working on the document send it back via e-mail
Whatrsquos particularly great about DocuSign is the great emphasis it puts on security ndash so that users donrsquot have to worry about getting into any legal trouble
Use DocuSign and never miss a deadline again
Free for basic version
PRICE
MPAYAn initiative by the Dubai eGovernment Department mPay is a simple application that allows you to make important payments Once yoursquove signed up and entered your payment details you are good to go You can pay your Dubai Electricity and Water Authority (DEWA) bills Etisalat utility bills Dubai Police fines Recharge SALIK and much more
A handy feature is its lsquoauto-rechargersquo option which you can use to set automatic payments
Free
PRICE
Opinion CIMAPERSONALITIES
wwwthecfomecom68
NEW HORIZONSBy geetu Ahuja Head of gCC at CIMA
The days of the traditional accountant working within a small community in a small town in a small market have long gone CFOs are now being referred to as Chief Frontier Officers as they travel from market to market overseeing their offices overseas This new expanded role has distinct advantages for both the company and the CFO who gain new skills and new insights from foreign branches a single hand at the helm of many markets provides business perspectives on a global scale and benchmarks across the board
On a personal level working abroad also has huge importance Robert Walters the specialist professional recruitment consultancy recently conducted a survey
of almost 2200 employees across a variety of professions exploring a number of topics which ranged from working practices and attitudes to careers The results highlighted some notable trends particularly for finance professionals
In career progression for example the survey showed that 50 of all accountants see working abroad as either lsquoessentialrsquo or lsquoextremely usefulrsquo to furthering their prospects more than banking professionals lawyers and IT workers ndash a strong indication of how accounting professionals are thinking about their future either within their existing company or with opportunities elsewhere
Accountants with globally recognised qualifications obviously have a greater chance of gaining some experience abroad and the lsquoGen Yrsquo professionals in particular seem ready to pack their bags In a CIMA study conducted in the UK last year over a third of those seeking employment in the
next two years will prioritise opportunities abroad over those in their home countries many of them enticed by the career incentives offered by the Middle East
How quickly can they land what seems to be their dream job What are the realities It may be that the move is simply from one branch to another and the only significant difference is a view from the window but for those expanding rather than changing their roles we have seen a very real need for a depth and breadth of knowledge never needed before
As geographical boundaries are pushed ever-wider a CFOrsquos responsibilities are pushed with them For many finance executives the understanding of their own patch of land is no longer enough they now have to be aware of foreign markets up to speed with foreign trends and au fait with foreign laws There is a need for a new commercial awareness in geography as well as philosophy
As geographical boundaries are pushed ever-wider a CFOrsquos responsibilities are pushed with them
John vargheseQampA
wwwthecfomecom 69
BUSINESSSET UP YOUR
IN THE UNITED ARAB EMIRATES
TO
WAREHOUSESOFFICES INDUSTRIAL LANDFLEXI
Quick and easy company set-up
Less than an hour drive from Dubai
Complete cost-effective packages including licences and facilities
100 foreign ownership
Zero income and corporate taxes
Eligibility for UAE Residence Visa
BUSINESS SET-UP SOLUTIONS STARTING FROM AED 15000 (USD 4000)
RAK FREE TRADE ZONE PROVIDES
RAK Free Trade Zone Authority - Government of Ras Al KhaimahUAE (Ras Al Khaimah) Tel +971 7 2041111 (Dubai) Tel +971 4 7041875 (Abu Dhabi) Tel +971 2 6994888
Germany (Cologne) - Turkey (Istanbul) - India (Mumbai)
Call +971 7 204 1111 Visit wwwrakftzcom Join rakftz
56 wwwthecfomecom
$247trillionProjected value of halal products industry in lsquo18
125Muslim percentage of global tourism expenditure
STAT FACTSOlympics in 2018 and are presently seeking investments for this as wellrdquo said Seong-hun Kim a member of Gangwon Province Governmentrsquos Export Support Team
Dubai proved to be an excellent place for the event considering how well the UAE is able to so regularly corral international cooperation A key sign of this was witnessed recently when Luxembourg now considered the third most important base for Islamic finance globally opened a finance office in Dubai International Finance Centre The European nation also opened a euro200 sukuk earlier this year which was quickly oversubscribed
The prime minister of Luxembourg offered the WIEF audience a riveting speech which detailed just how international the Forum has become whilst encouraging more of the world to support the growing influence of Islamic finance
Said Bettel ldquoWe need to innovate more economic partnerships for growth We sometimes need to reengineer relationships but also have to make sure these relationships remain sustainable Growth in one country also brings growth to others as long as this is guided by free market initiatives Free trade and free flow of capital combined with innovation leads to prosperity We have all gathered here in Dubai to explore the future of Islamic finance and Luxembourg is also a pioneer of Islamic finance in Europe The Islamic financial sector has a major role to play in continued global growthrdquo
The Islamic Corporation for the Development of the Private Sector (ICD) is based in the Kingdom of Saudi Arabia where it manages an international fund worth $2 billion half of which is available for subscription With shareholders in more than 50 countries and a sovereign sukuk fund recently launched in West Africa the ICDrsquos CEO Khaled M Al Aboodi attended WIEF this year excited to participate in the global event
How does the ICD approach its attendance at the World Islamic Economic ForumI think the Forum is one of the best places for discussing the financial issues of the OEC member countries It has been around for ten years and has grown to become a very important platform for discussion Wersquore here to attend and listen but also to network Itrsquos a great networking platform and a place to share views whilst letting everyone know what we have to offer
How has Islamic finance changed over the yearsOf course itrsquos growing in a large scale Some of it actually needs more support particularly with respect to regulatory frameworks Wersquore trying to partner with many international organisations like the IMF to try to provide support to countries to adapt regulation for Islamic finance Sukuk issuance is one of the biggest issues that needs to be addressed because there is a huge amount of liquidity in this arena Due to issues related to regulation sukuk issuance can be costly But with the regulation we are confident it will be on a level playing field with other forms of finance Compliance is a major area where more work can be done The Forum started with a roundtable on sukuk which shows how helpful WIEF has been over the years
What type of work does ICD do internationallyICD helped the government of Senegal to issue the first sovereign sukuk This was successfully issued last summer Progressing in this manner is something wersquod like to see continue across West Africa in order to utilise its resources with aiding development in the region in mind
QampA WITH KHALED M AL ABOODI CEO OF ICD
Islamic FinanceMARKET OUTLOOK
OFFICIAL SPONSORS
ENDORSED BY OFFICIAL HOST OFFICIAL
COMMUNICATIONS PARTNER
MEYDAN HOTEL DUBAI UAE19 - 20 NOVEMBER 2014
WOMENOMICSthe next emerging market
TAKE PART in making change happen UNITE with business and through leaders from across the globe
PARTICIPATE to the expansion of a modern and inclusive economy
58
Gautam PradhanINTERVIEW
wwwthecfomecom
SUCCESS BEyOND BOUNDARIES
in other management roles such as strategic decision making mentoring and leading efficiency and productivity across a range of other departments and functions as well as a being a catalyst in ensuring that the boardrsquos vision for the organisation is achieved
A significant percentage of NMDCrsquos shares are owned publicly Does the CFO play a role in balancing the interests of the shareholdersAs a CFO balancing the shareholdersrsquo interests is definitely part of my responsibility In order to achieve this goal there needs to be a careful evaluation of each decision while keeping the short-term and long-term goals of the company in mind At NMDC we actively implement a system where we utilise a balance scorecard as a method of ensuring that all our primary objectives are met yet at the same time continuously enhance our relationships with our shareholders
NMDC has completed various projects across the Emirates Are there plans to move abroadAs NMDC moves towards becoming an international player our strategic expansion plans are focused in areas within the GCC region and India In line with this strategy we opened
How has a company with such a unique set of deliverables grown so consistently over the yearsOur organisation strongly believes that the core to our strength is the people process and equipment A strategic decision led by our Board of Directors and the senior management has been implemented that required us to consistently invest in these three aspects to help expand our business beyond the territorial boundaries of the UAE and at the same time enhance what we can offer which is relevant to these segments We attribute our success to the efforts which every employee contributes We also strongly believe in the ldquoWe can make it happenrdquo principle The management raises the index of performance while setting SMART objectives within the organisation and encouraging the employees to achieve them
How has your position as the CFO changed over NMDCrsquos 35 years of operationAs the market evolves and business dynamics change my role as the CFO has become complex and more challenging A few years back I was mainly focused on bookkeeping accounting and other financial responsibilities such as arranging bank facilities But moving forward I became more involved
The UAE is progressively becoming a hub for world-class infrastructure The country has duly impressed the rest of the globe with noteworthy land developments showcased across the emirates Among the remarkable landscapes found in Abu Dhabi are the Corniche Beach Yas Island and Sir Baniyas Island Behind these successful projects is NMDC the dredging division of Abu Dhabi National Oil Company (ADNOC)
In an interview with CFO Magazine Gautam Pradhan Chief Financial Officer NMDC shares an exclusive look into the companyrsquos international blueprint for growth and his dynamic role as a strategic leader of one of the best in dredging and marine construction in the Middle East
59
Gautam PradhanINTERVIEW
wwwthecfomecom
branches in Qatar Bahrain Oman and India This has paid rich dividends recently as projects of strategic importance are bagged in Qatar and Bahrain Furthermore NMDC (UAE) has recently played a key role as a leader of an international consortium with Royal Boskalis Westminister (Netherlands) and Jan De Nul Group (Belgium) for the awarding of the Suez Canal Dredging project in Egypt Moving forward we have devised a strategic approach that will enable us to play a key role in the development of Indiarsquos marine infrastructure
What are the global strategies that are part of the CFOrsquos responsibilitiesAs CFO understanding the macro economic scenario risk analysis and mitigating those risks are all a part of my responsibilities I also have to have a proper comprehension
ldquoA few years back I was mainly focused on financial responsibilities moving forward I became more involved in strategic decision making mentoring and leading productivityrdquo
Gautam PradhanINTERVIEW
60 wwwthecfomecom
of the challenges faced by the company in terms of dealing with foreign contracts direct and indirect taxes and hedging and managing the integration process These are essential to enhance shareholders wealth and mitigate undue risk
How significant is accountancy for NMDC in its operations Why exactlyAccountancy is the lifeline of any company it does not only record the finances it also reflects the health of the organisation The MIS reports analysis trends and statistical information go a long way toward effectively providing
the diagnostic approach essential for the company
How have NMDCrsquos environmental activities helped the companyrsquos bottom lineNMDCrsquos work is well-synchronised with our environmental activities and specifically with nature Our activities are closely linked to sand and water and we view such activities with strategic importance Projects such as increasing water supply to mangroves and beach nourishment help us support the environmental activities while adding to our bottom line
ldquoAccountancy is the lifeline of any company it does not only record the finances it also reflects the health of the organisationrdquo
A burgeoning slice of Abu Dhabi coastline
The largest business awards
in the GCC30th November Dubai
nominate now at wwwstarsofbusinessawardscom
Stars of Business has become an iconic awards brand like no other in the region It recognizes the very best SMEs across 26 business categories Itrsquos universally respected as scientifically assessed and unimpeachably judged
327000 SMEs across the UAE$234 billion estimated total revenue of the SME sector4974 Awards entries in 20131856 Individual company applicants
Presenting Partner Strategic SME Partner Gold Sponsor Gold Sponsor VIP Hospitality Partner Supporting Partner
Trade Facilitator PartnerTrade Credit PartnerLogistics Partner
Institutional Partner Institutional Partner Event Partner
OrganiserPublisherMedia Partner Media PartnerPort Authority Partner
62
David Allen INTERVIEW
wwwthecfomecom
What went into completing your bestseller ndash Getting Things Done (GTD)After twenty years of researching developing and implementing a methodology for achieving stress-free productivity based upon
thousands of hours spent desk-side with
some of the best brightest and busiest people in the world I decided to write the manual for it Thatrsquos what Getting Things Done is
What are the five phases of mastering workflowIn order to get
any situation under control so
you can focus you will utilise these five
steps Whether yoursquore managing your kitchen
or your company you will need to collect and capture what has your attention clarify what if anything to do about it organise it according to what it means to you review and reflect upon it in relation to
Todayrsquos evolving CFO is often caught between the world of business set-up generating revenue managing employees and building strong company infrastructure When can things actually get done What can one do to boost productivity and master workflow World-renowned business coach David Allen has the answers
PRODUCTIvITy PRINCIPLES WITH
DAvID ALLEN
63
David Allen INTERVIEW
wwwthecfomecom
those are greatly subvertedHow does one maintain a fair balance between the time spent planning and actually getting things doneYou simply need to spend just the amount of time you need to to trust that what you are getting done is the right thing to be getting done in the moment It takes as long as it takes to get to that point Why would you do anything less
How can one apply your core productivity and workflow principles to todayrsquos technologically driven environmentThe principles and their techniques are system-independent Whether you have meaningful input from the Internet your smartphone or a conversation in the hall you must engage with it equally Technology has simply increased the flow of input and ease of distraction in your world
There is a lot of talk about how connected wersquove become and how connectivity is driving tremendous business growth Does connectivity actually come with its fair share of downsides
Connectivity is obviously a two-edged sword We can have intimate productive and creative interaction instantly with someone on the other side of the world and we can just as easily be distracted and seduced into those engagements when they may not be the best use of our attention and resources Donrsquot shoot the medium Itrsquos all simply bringing attention to your clarity of direction and priorities or lack thereof
Could you share a few quick tips with our readers to instantly boost productivityWrite everything down that has your attention Decide the very next actions required to get closure on all of them Any next actions that require less than two minutes do instantly Park reminders of everything else somewhere that yoursquoll see when you can do something about them
We are currently facing a massive information overload What are some basic principles you could suggest to mentally organise such large amounts of dataConstantly ask yourself Where am I going Whatrsquos important and rewarding to me Is this information
the whole and then engage your resources with intuitive trust
As a CFO how can you transfer efficient workflow management skills to your employees Itrsquos very difficult to legislate processes for individuals ndash you can really only hold them accountable for their results But if you are managing your own commitments and intersections with them with integrity and rigour it will automatically force your team to ldquostep up to the platerdquo in their own behaviours in order to meet your standards If you request their complete list of their company projects and they canrsquot produce it thatrsquos a sign theyrsquore not in control If they make a commitment to you that they havenrsquot kept thatrsquos data about their performance GTD is simply about good operational business practices
With so many planning and organising activities in your methodology is there a risk of losing spontaneity as a strategistThe reason for these best practices is to optimise freedom creativity and spontaneity Without them
ldquoBut if you are manag-ing your own com-mitments and intersec-tions with them with integrity and rigour it will automatical-ly force them to ldquostep up to the platerdquo in their own behaviours in order to meet your standardsrdquo
64 wwwthecfomecom
supporting that Park whatever you find potentially meaningful somewhere that is easy to access when needed
Being an entrepreneur is a non-stop job How do you ensure that you have an adequate work-life balance Pay attention to what has your attentionmdashwith regard to anything Your health relationships career finances etc Notice when something might be ldquooffrdquo and make good decisions about what you need to do to get it back ldquoonrdquo again
Does your work teach people to be efficient or effective In essence they are the same thing Effective choices are generated by efficiency on a higher level If you want to implement strategy most effectively it demands utilising your resources optimally which is efficiency
Does motivation actually improve quality of work or purely quantityDepends on the focus of the motivation You can be motivated to work harder and you can be motivated to work smarter
What is your favourite productivity mantra that
you implement in your day-to-day lifeUsing my own in-basket and note-taking devices to capture potentially meaningful and valuable ideas and soon afterwards clearing all of them out by deciding what to do about them if anything
Your books seminars and other work inspires many individuals and businesses Who is your personal inspiration or role model I have many about many different aspects of my life The only person though that I ultimately trust as my best guide is my higher self which I try to access as frequently and clearly as I can
Finally what advice would you give to current business owners and aspiring entrepreneurs looking to gain complete control of their life and businessCapture what has your attention clarify what you need to do about it to get it off your mind organise the inventory of all your commitments at all levels review and reflect on all of that regularly relax and trust your inner wisdom to engage with the most appropriate thing in the moment
ldquoIf you want to implement strategy most effectively it demands utilising your resources optimallyrdquo
David Allen INTERVIEW
APPSTECH TALK
wwwthecfomecom 65
mAxImISE BUSINESS lsquoON-THE-GOrsquo WITH THESE HANDy APPS
ipAd SpECIAL
SAMSUNG UNvEILS GALAxY NOTE EDGE
Network
AP
Display
OS
Camera
Video
Audio
Additional Features
GoogleMobile Services
Connectivity
Sensor
Memory
Dimension
Battery
The availability of service may differ by country All functionality features specifications and other product information provided in this document including but not limited to the benefits design pricing components performance availability and capabilities of the product are subject to change without notice or obligation
Samsung Galaxy Note Edge Product Specifications
25G (GSM GPRS EDGE) 850 900 1800 1900 MHz3G (HSPA + 42Mbps) 850 900 1900 2100 MHz4G (LTE Cat 4 15050Mbps) or 4G(LTE Cat 6 30050Mbps)May differ by country and carrier
27 GHz Quad-Core Processor
56 inch (1419mm) Quad HD+ Super AMOLED (2560 x 1440 + 160)
Android 44 (KitKat)
Rear Facing 16 Mega pixel Auto Focus camera with Smart OISFront Facing 37 Mega pixel camera with f19Rear Facing Camera HDR (Rich tone) Selective Focus Rear-cam Selfie Beauty face Virtual Tour Shot ShotampMore Dual CameraFront Facing Camera Selfie Wide Selfie
Codec H264 MPEG-4 H263 VC-1 WMV7 WMV8 Sorenson Spark MP43 VP8 Recording amp Playback up to UHD
Codec MP3 AACAAC+eAAC+ WMA AMR-NBWB Vorbis FLAC()() Ultra High Quality Audio (~192KHz 24 bit) support
Multi WindowUltra Power Saving ModeVoice Recorder (Normal Mode Interview Mode Meeting Mode Voice Memo)Download BoosterS Health 35Dynamic Lock ScreenBriefingEdge screen UX Revolving Interaction Immersive apps(Camera Video S Note)Ticker board Express me Quick Tools Night Clock etc
Chrome Drive Photos Gmail Google Google+ Google Settings Hangouts Maps Play Books Play Games Play Newsstand Play Movie amp TV Play Music Play Store Voice Search YouTube
WiFi 80211 abgnac (HT80) MIMO PCIeGPS GLONASS BeidouNFC Bluetoothreg v 41 (BLE ANT+)IR LED (Remote Control) USB20 MHL 30
Gesture Accelerometer Geo-magnetic Gyroscope RGB IR-LEDProximity Barometer Hall Sensor Finger Scanner UV Heart Rate Monitoring SpO2 (Dependent on market)
32 64 GB Internal memory + microSD slot (up to 128GB)3GB RAM
1513 x 824 x 83mm 174g
Standard battery Li-ion 3000 mAh Fast Charging (Adaptive Fast Charging amp QC20)
wwwthecfomecom66
APPSTECH TALK
AIR DISPLAY
SQUARE REGISTER
Using this app you can connect your iPad to your computer and use it as an additional screen While working on an important presentation or sales proposal you can extend or mirror your computer screen on your iPad This app is compatible with both Mac and Windows computers Note that to use this feature you have to install Air Display on your iPad and a separate free app on your computer The computer and iPad also need to be on the same Wi-Fi network in order to work in-sync
For Mac users the app allows you to connect to up to four screens ndash all at the same time
Apart from the ability to convert your iPad into a wireless display whatrsquos also attractive about this app is that it allows you to control your computer wirelessly using your iPad
This fantastic application can serve as a mobile point of sale for your business It allows you to accept credit card payments ndash including Visa MasterCard Discover and American Express A transaction fee of 275 is charged for every time you swipe a card The sale amount is transferred to your account within two working days
Once you download the app you can sign up and register for a unique card reader solution called the lsquoSquare Readerrsquo (this is free) Square Reader encrypts all card details and ensures that the transaction is secure Once you receive your Square Reader you can connect it to your device and are all set
The application also offers added features such as transaction history connecting to a receipt printer creating employee logins and more
AED 3699
PRICE
Free
PRICE
wwwthecfomecom 67
APPSTECH TALK
DOCUSIGNHave you ever been in a situation where your employees need you to urgently sign a contract but arenrsquot able to physically reach you in time DocuSign solves this problem with its easy-to-use eSignature feature In three easy steps you can sign important documents and securely send them to your intended recipient
First you have to import the document to your device ndash this could be from Dropbox Google Drive or another select applications You then place your signature or any other important legal information you need to include such as initials Once you have finished working on the document send it back via e-mail
Whatrsquos particularly great about DocuSign is the great emphasis it puts on security ndash so that users donrsquot have to worry about getting into any legal trouble
Use DocuSign and never miss a deadline again
Free for basic version
PRICE
MPAYAn initiative by the Dubai eGovernment Department mPay is a simple application that allows you to make important payments Once yoursquove signed up and entered your payment details you are good to go You can pay your Dubai Electricity and Water Authority (DEWA) bills Etisalat utility bills Dubai Police fines Recharge SALIK and much more
A handy feature is its lsquoauto-rechargersquo option which you can use to set automatic payments
Free
PRICE
Opinion CIMAPERSONALITIES
wwwthecfomecom68
NEW HORIZONSBy geetu Ahuja Head of gCC at CIMA
The days of the traditional accountant working within a small community in a small town in a small market have long gone CFOs are now being referred to as Chief Frontier Officers as they travel from market to market overseeing their offices overseas This new expanded role has distinct advantages for both the company and the CFO who gain new skills and new insights from foreign branches a single hand at the helm of many markets provides business perspectives on a global scale and benchmarks across the board
On a personal level working abroad also has huge importance Robert Walters the specialist professional recruitment consultancy recently conducted a survey
of almost 2200 employees across a variety of professions exploring a number of topics which ranged from working practices and attitudes to careers The results highlighted some notable trends particularly for finance professionals
In career progression for example the survey showed that 50 of all accountants see working abroad as either lsquoessentialrsquo or lsquoextremely usefulrsquo to furthering their prospects more than banking professionals lawyers and IT workers ndash a strong indication of how accounting professionals are thinking about their future either within their existing company or with opportunities elsewhere
Accountants with globally recognised qualifications obviously have a greater chance of gaining some experience abroad and the lsquoGen Yrsquo professionals in particular seem ready to pack their bags In a CIMA study conducted in the UK last year over a third of those seeking employment in the
next two years will prioritise opportunities abroad over those in their home countries many of them enticed by the career incentives offered by the Middle East
How quickly can they land what seems to be their dream job What are the realities It may be that the move is simply from one branch to another and the only significant difference is a view from the window but for those expanding rather than changing their roles we have seen a very real need for a depth and breadth of knowledge never needed before
As geographical boundaries are pushed ever-wider a CFOrsquos responsibilities are pushed with them For many finance executives the understanding of their own patch of land is no longer enough they now have to be aware of foreign markets up to speed with foreign trends and au fait with foreign laws There is a need for a new commercial awareness in geography as well as philosophy
As geographical boundaries are pushed ever-wider a CFOrsquos responsibilities are pushed with them
John vargheseQampA
wwwthecfomecom 69
BUSINESSSET UP YOUR
IN THE UNITED ARAB EMIRATES
TO
WAREHOUSESOFFICES INDUSTRIAL LANDFLEXI
Quick and easy company set-up
Less than an hour drive from Dubai
Complete cost-effective packages including licences and facilities
100 foreign ownership
Zero income and corporate taxes
Eligibility for UAE Residence Visa
BUSINESS SET-UP SOLUTIONS STARTING FROM AED 15000 (USD 4000)
RAK FREE TRADE ZONE PROVIDES
RAK Free Trade Zone Authority - Government of Ras Al KhaimahUAE (Ras Al Khaimah) Tel +971 7 2041111 (Dubai) Tel +971 4 7041875 (Abu Dhabi) Tel +971 2 6994888
Germany (Cologne) - Turkey (Istanbul) - India (Mumbai)
Call +971 7 204 1111 Visit wwwrakftzcom Join rakftz
OFFICIAL SPONSORS
ENDORSED BY OFFICIAL HOST OFFICIAL
COMMUNICATIONS PARTNER
MEYDAN HOTEL DUBAI UAE19 - 20 NOVEMBER 2014
WOMENOMICSthe next emerging market
TAKE PART in making change happen UNITE with business and through leaders from across the globe
PARTICIPATE to the expansion of a modern and inclusive economy
58
Gautam PradhanINTERVIEW
wwwthecfomecom
SUCCESS BEyOND BOUNDARIES
in other management roles such as strategic decision making mentoring and leading efficiency and productivity across a range of other departments and functions as well as a being a catalyst in ensuring that the boardrsquos vision for the organisation is achieved
A significant percentage of NMDCrsquos shares are owned publicly Does the CFO play a role in balancing the interests of the shareholdersAs a CFO balancing the shareholdersrsquo interests is definitely part of my responsibility In order to achieve this goal there needs to be a careful evaluation of each decision while keeping the short-term and long-term goals of the company in mind At NMDC we actively implement a system where we utilise a balance scorecard as a method of ensuring that all our primary objectives are met yet at the same time continuously enhance our relationships with our shareholders
NMDC has completed various projects across the Emirates Are there plans to move abroadAs NMDC moves towards becoming an international player our strategic expansion plans are focused in areas within the GCC region and India In line with this strategy we opened
How has a company with such a unique set of deliverables grown so consistently over the yearsOur organisation strongly believes that the core to our strength is the people process and equipment A strategic decision led by our Board of Directors and the senior management has been implemented that required us to consistently invest in these three aspects to help expand our business beyond the territorial boundaries of the UAE and at the same time enhance what we can offer which is relevant to these segments We attribute our success to the efforts which every employee contributes We also strongly believe in the ldquoWe can make it happenrdquo principle The management raises the index of performance while setting SMART objectives within the organisation and encouraging the employees to achieve them
How has your position as the CFO changed over NMDCrsquos 35 years of operationAs the market evolves and business dynamics change my role as the CFO has become complex and more challenging A few years back I was mainly focused on bookkeeping accounting and other financial responsibilities such as arranging bank facilities But moving forward I became more involved
The UAE is progressively becoming a hub for world-class infrastructure The country has duly impressed the rest of the globe with noteworthy land developments showcased across the emirates Among the remarkable landscapes found in Abu Dhabi are the Corniche Beach Yas Island and Sir Baniyas Island Behind these successful projects is NMDC the dredging division of Abu Dhabi National Oil Company (ADNOC)
In an interview with CFO Magazine Gautam Pradhan Chief Financial Officer NMDC shares an exclusive look into the companyrsquos international blueprint for growth and his dynamic role as a strategic leader of one of the best in dredging and marine construction in the Middle East
59
Gautam PradhanINTERVIEW
wwwthecfomecom
branches in Qatar Bahrain Oman and India This has paid rich dividends recently as projects of strategic importance are bagged in Qatar and Bahrain Furthermore NMDC (UAE) has recently played a key role as a leader of an international consortium with Royal Boskalis Westminister (Netherlands) and Jan De Nul Group (Belgium) for the awarding of the Suez Canal Dredging project in Egypt Moving forward we have devised a strategic approach that will enable us to play a key role in the development of Indiarsquos marine infrastructure
What are the global strategies that are part of the CFOrsquos responsibilitiesAs CFO understanding the macro economic scenario risk analysis and mitigating those risks are all a part of my responsibilities I also have to have a proper comprehension
ldquoA few years back I was mainly focused on financial responsibilities moving forward I became more involved in strategic decision making mentoring and leading productivityrdquo
Gautam PradhanINTERVIEW
60 wwwthecfomecom
of the challenges faced by the company in terms of dealing with foreign contracts direct and indirect taxes and hedging and managing the integration process These are essential to enhance shareholders wealth and mitigate undue risk
How significant is accountancy for NMDC in its operations Why exactlyAccountancy is the lifeline of any company it does not only record the finances it also reflects the health of the organisation The MIS reports analysis trends and statistical information go a long way toward effectively providing
the diagnostic approach essential for the company
How have NMDCrsquos environmental activities helped the companyrsquos bottom lineNMDCrsquos work is well-synchronised with our environmental activities and specifically with nature Our activities are closely linked to sand and water and we view such activities with strategic importance Projects such as increasing water supply to mangroves and beach nourishment help us support the environmental activities while adding to our bottom line
ldquoAccountancy is the lifeline of any company it does not only record the finances it also reflects the health of the organisationrdquo
A burgeoning slice of Abu Dhabi coastline
The largest business awards
in the GCC30th November Dubai
nominate now at wwwstarsofbusinessawardscom
Stars of Business has become an iconic awards brand like no other in the region It recognizes the very best SMEs across 26 business categories Itrsquos universally respected as scientifically assessed and unimpeachably judged
327000 SMEs across the UAE$234 billion estimated total revenue of the SME sector4974 Awards entries in 20131856 Individual company applicants
Presenting Partner Strategic SME Partner Gold Sponsor Gold Sponsor VIP Hospitality Partner Supporting Partner
Trade Facilitator PartnerTrade Credit PartnerLogistics Partner
Institutional Partner Institutional Partner Event Partner
OrganiserPublisherMedia Partner Media PartnerPort Authority Partner
62
David Allen INTERVIEW
wwwthecfomecom
What went into completing your bestseller ndash Getting Things Done (GTD)After twenty years of researching developing and implementing a methodology for achieving stress-free productivity based upon
thousands of hours spent desk-side with
some of the best brightest and busiest people in the world I decided to write the manual for it Thatrsquos what Getting Things Done is
What are the five phases of mastering workflowIn order to get
any situation under control so
you can focus you will utilise these five
steps Whether yoursquore managing your kitchen
or your company you will need to collect and capture what has your attention clarify what if anything to do about it organise it according to what it means to you review and reflect upon it in relation to
Todayrsquos evolving CFO is often caught between the world of business set-up generating revenue managing employees and building strong company infrastructure When can things actually get done What can one do to boost productivity and master workflow World-renowned business coach David Allen has the answers
PRODUCTIvITy PRINCIPLES WITH
DAvID ALLEN
63
David Allen INTERVIEW
wwwthecfomecom
those are greatly subvertedHow does one maintain a fair balance between the time spent planning and actually getting things doneYou simply need to spend just the amount of time you need to to trust that what you are getting done is the right thing to be getting done in the moment It takes as long as it takes to get to that point Why would you do anything less
How can one apply your core productivity and workflow principles to todayrsquos technologically driven environmentThe principles and their techniques are system-independent Whether you have meaningful input from the Internet your smartphone or a conversation in the hall you must engage with it equally Technology has simply increased the flow of input and ease of distraction in your world
There is a lot of talk about how connected wersquove become and how connectivity is driving tremendous business growth Does connectivity actually come with its fair share of downsides
Connectivity is obviously a two-edged sword We can have intimate productive and creative interaction instantly with someone on the other side of the world and we can just as easily be distracted and seduced into those engagements when they may not be the best use of our attention and resources Donrsquot shoot the medium Itrsquos all simply bringing attention to your clarity of direction and priorities or lack thereof
Could you share a few quick tips with our readers to instantly boost productivityWrite everything down that has your attention Decide the very next actions required to get closure on all of them Any next actions that require less than two minutes do instantly Park reminders of everything else somewhere that yoursquoll see when you can do something about them
We are currently facing a massive information overload What are some basic principles you could suggest to mentally organise such large amounts of dataConstantly ask yourself Where am I going Whatrsquos important and rewarding to me Is this information
the whole and then engage your resources with intuitive trust
As a CFO how can you transfer efficient workflow management skills to your employees Itrsquos very difficult to legislate processes for individuals ndash you can really only hold them accountable for their results But if you are managing your own commitments and intersections with them with integrity and rigour it will automatically force your team to ldquostep up to the platerdquo in their own behaviours in order to meet your standards If you request their complete list of their company projects and they canrsquot produce it thatrsquos a sign theyrsquore not in control If they make a commitment to you that they havenrsquot kept thatrsquos data about their performance GTD is simply about good operational business practices
With so many planning and organising activities in your methodology is there a risk of losing spontaneity as a strategistThe reason for these best practices is to optimise freedom creativity and spontaneity Without them
ldquoBut if you are manag-ing your own com-mitments and intersec-tions with them with integrity and rigour it will automatical-ly force them to ldquostep up to the platerdquo in their own behaviours in order to meet your standardsrdquo
64 wwwthecfomecom
supporting that Park whatever you find potentially meaningful somewhere that is easy to access when needed
Being an entrepreneur is a non-stop job How do you ensure that you have an adequate work-life balance Pay attention to what has your attentionmdashwith regard to anything Your health relationships career finances etc Notice when something might be ldquooffrdquo and make good decisions about what you need to do to get it back ldquoonrdquo again
Does your work teach people to be efficient or effective In essence they are the same thing Effective choices are generated by efficiency on a higher level If you want to implement strategy most effectively it demands utilising your resources optimally which is efficiency
Does motivation actually improve quality of work or purely quantityDepends on the focus of the motivation You can be motivated to work harder and you can be motivated to work smarter
What is your favourite productivity mantra that
you implement in your day-to-day lifeUsing my own in-basket and note-taking devices to capture potentially meaningful and valuable ideas and soon afterwards clearing all of them out by deciding what to do about them if anything
Your books seminars and other work inspires many individuals and businesses Who is your personal inspiration or role model I have many about many different aspects of my life The only person though that I ultimately trust as my best guide is my higher self which I try to access as frequently and clearly as I can
Finally what advice would you give to current business owners and aspiring entrepreneurs looking to gain complete control of their life and businessCapture what has your attention clarify what you need to do about it to get it off your mind organise the inventory of all your commitments at all levels review and reflect on all of that regularly relax and trust your inner wisdom to engage with the most appropriate thing in the moment
ldquoIf you want to implement strategy most effectively it demands utilising your resources optimallyrdquo
David Allen INTERVIEW
APPSTECH TALK
wwwthecfomecom 65
mAxImISE BUSINESS lsquoON-THE-GOrsquo WITH THESE HANDy APPS
ipAd SpECIAL
SAMSUNG UNvEILS GALAxY NOTE EDGE
Network
AP
Display
OS
Camera
Video
Audio
Additional Features
GoogleMobile Services
Connectivity
Sensor
Memory
Dimension
Battery
The availability of service may differ by country All functionality features specifications and other product information provided in this document including but not limited to the benefits design pricing components performance availability and capabilities of the product are subject to change without notice or obligation
Samsung Galaxy Note Edge Product Specifications
25G (GSM GPRS EDGE) 850 900 1800 1900 MHz3G (HSPA + 42Mbps) 850 900 1900 2100 MHz4G (LTE Cat 4 15050Mbps) or 4G(LTE Cat 6 30050Mbps)May differ by country and carrier
27 GHz Quad-Core Processor
56 inch (1419mm) Quad HD+ Super AMOLED (2560 x 1440 + 160)
Android 44 (KitKat)
Rear Facing 16 Mega pixel Auto Focus camera with Smart OISFront Facing 37 Mega pixel camera with f19Rear Facing Camera HDR (Rich tone) Selective Focus Rear-cam Selfie Beauty face Virtual Tour Shot ShotampMore Dual CameraFront Facing Camera Selfie Wide Selfie
Codec H264 MPEG-4 H263 VC-1 WMV7 WMV8 Sorenson Spark MP43 VP8 Recording amp Playback up to UHD
Codec MP3 AACAAC+eAAC+ WMA AMR-NBWB Vorbis FLAC()() Ultra High Quality Audio (~192KHz 24 bit) support
Multi WindowUltra Power Saving ModeVoice Recorder (Normal Mode Interview Mode Meeting Mode Voice Memo)Download BoosterS Health 35Dynamic Lock ScreenBriefingEdge screen UX Revolving Interaction Immersive apps(Camera Video S Note)Ticker board Express me Quick Tools Night Clock etc
Chrome Drive Photos Gmail Google Google+ Google Settings Hangouts Maps Play Books Play Games Play Newsstand Play Movie amp TV Play Music Play Store Voice Search YouTube
WiFi 80211 abgnac (HT80) MIMO PCIeGPS GLONASS BeidouNFC Bluetoothreg v 41 (BLE ANT+)IR LED (Remote Control) USB20 MHL 30
Gesture Accelerometer Geo-magnetic Gyroscope RGB IR-LEDProximity Barometer Hall Sensor Finger Scanner UV Heart Rate Monitoring SpO2 (Dependent on market)
32 64 GB Internal memory + microSD slot (up to 128GB)3GB RAM
1513 x 824 x 83mm 174g
Standard battery Li-ion 3000 mAh Fast Charging (Adaptive Fast Charging amp QC20)
wwwthecfomecom66
APPSTECH TALK
AIR DISPLAY
SQUARE REGISTER
Using this app you can connect your iPad to your computer and use it as an additional screen While working on an important presentation or sales proposal you can extend or mirror your computer screen on your iPad This app is compatible with both Mac and Windows computers Note that to use this feature you have to install Air Display on your iPad and a separate free app on your computer The computer and iPad also need to be on the same Wi-Fi network in order to work in-sync
For Mac users the app allows you to connect to up to four screens ndash all at the same time
Apart from the ability to convert your iPad into a wireless display whatrsquos also attractive about this app is that it allows you to control your computer wirelessly using your iPad
This fantastic application can serve as a mobile point of sale for your business It allows you to accept credit card payments ndash including Visa MasterCard Discover and American Express A transaction fee of 275 is charged for every time you swipe a card The sale amount is transferred to your account within two working days
Once you download the app you can sign up and register for a unique card reader solution called the lsquoSquare Readerrsquo (this is free) Square Reader encrypts all card details and ensures that the transaction is secure Once you receive your Square Reader you can connect it to your device and are all set
The application also offers added features such as transaction history connecting to a receipt printer creating employee logins and more
AED 3699
PRICE
Free
PRICE
wwwthecfomecom 67
APPSTECH TALK
DOCUSIGNHave you ever been in a situation where your employees need you to urgently sign a contract but arenrsquot able to physically reach you in time DocuSign solves this problem with its easy-to-use eSignature feature In three easy steps you can sign important documents and securely send them to your intended recipient
First you have to import the document to your device ndash this could be from Dropbox Google Drive or another select applications You then place your signature or any other important legal information you need to include such as initials Once you have finished working on the document send it back via e-mail
Whatrsquos particularly great about DocuSign is the great emphasis it puts on security ndash so that users donrsquot have to worry about getting into any legal trouble
Use DocuSign and never miss a deadline again
Free for basic version
PRICE
MPAYAn initiative by the Dubai eGovernment Department mPay is a simple application that allows you to make important payments Once yoursquove signed up and entered your payment details you are good to go You can pay your Dubai Electricity and Water Authority (DEWA) bills Etisalat utility bills Dubai Police fines Recharge SALIK and much more
A handy feature is its lsquoauto-rechargersquo option which you can use to set automatic payments
Free
PRICE
Opinion CIMAPERSONALITIES
wwwthecfomecom68
NEW HORIZONSBy geetu Ahuja Head of gCC at CIMA
The days of the traditional accountant working within a small community in a small town in a small market have long gone CFOs are now being referred to as Chief Frontier Officers as they travel from market to market overseeing their offices overseas This new expanded role has distinct advantages for both the company and the CFO who gain new skills and new insights from foreign branches a single hand at the helm of many markets provides business perspectives on a global scale and benchmarks across the board
On a personal level working abroad also has huge importance Robert Walters the specialist professional recruitment consultancy recently conducted a survey
of almost 2200 employees across a variety of professions exploring a number of topics which ranged from working practices and attitudes to careers The results highlighted some notable trends particularly for finance professionals
In career progression for example the survey showed that 50 of all accountants see working abroad as either lsquoessentialrsquo or lsquoextremely usefulrsquo to furthering their prospects more than banking professionals lawyers and IT workers ndash a strong indication of how accounting professionals are thinking about their future either within their existing company or with opportunities elsewhere
Accountants with globally recognised qualifications obviously have a greater chance of gaining some experience abroad and the lsquoGen Yrsquo professionals in particular seem ready to pack their bags In a CIMA study conducted in the UK last year over a third of those seeking employment in the
next two years will prioritise opportunities abroad over those in their home countries many of them enticed by the career incentives offered by the Middle East
How quickly can they land what seems to be their dream job What are the realities It may be that the move is simply from one branch to another and the only significant difference is a view from the window but for those expanding rather than changing their roles we have seen a very real need for a depth and breadth of knowledge never needed before
As geographical boundaries are pushed ever-wider a CFOrsquos responsibilities are pushed with them For many finance executives the understanding of their own patch of land is no longer enough they now have to be aware of foreign markets up to speed with foreign trends and au fait with foreign laws There is a need for a new commercial awareness in geography as well as philosophy
As geographical boundaries are pushed ever-wider a CFOrsquos responsibilities are pushed with them
John vargheseQampA
wwwthecfomecom 69
BUSINESSSET UP YOUR
IN THE UNITED ARAB EMIRATES
TO
WAREHOUSESOFFICES INDUSTRIAL LANDFLEXI
Quick and easy company set-up
Less than an hour drive from Dubai
Complete cost-effective packages including licences and facilities
100 foreign ownership
Zero income and corporate taxes
Eligibility for UAE Residence Visa
BUSINESS SET-UP SOLUTIONS STARTING FROM AED 15000 (USD 4000)
RAK FREE TRADE ZONE PROVIDES
RAK Free Trade Zone Authority - Government of Ras Al KhaimahUAE (Ras Al Khaimah) Tel +971 7 2041111 (Dubai) Tel +971 4 7041875 (Abu Dhabi) Tel +971 2 6994888
Germany (Cologne) - Turkey (Istanbul) - India (Mumbai)
Call +971 7 204 1111 Visit wwwrakftzcom Join rakftz
58
Gautam PradhanINTERVIEW
wwwthecfomecom
SUCCESS BEyOND BOUNDARIES
in other management roles such as strategic decision making mentoring and leading efficiency and productivity across a range of other departments and functions as well as a being a catalyst in ensuring that the boardrsquos vision for the organisation is achieved
A significant percentage of NMDCrsquos shares are owned publicly Does the CFO play a role in balancing the interests of the shareholdersAs a CFO balancing the shareholdersrsquo interests is definitely part of my responsibility In order to achieve this goal there needs to be a careful evaluation of each decision while keeping the short-term and long-term goals of the company in mind At NMDC we actively implement a system where we utilise a balance scorecard as a method of ensuring that all our primary objectives are met yet at the same time continuously enhance our relationships with our shareholders
NMDC has completed various projects across the Emirates Are there plans to move abroadAs NMDC moves towards becoming an international player our strategic expansion plans are focused in areas within the GCC region and India In line with this strategy we opened
How has a company with such a unique set of deliverables grown so consistently over the yearsOur organisation strongly believes that the core to our strength is the people process and equipment A strategic decision led by our Board of Directors and the senior management has been implemented that required us to consistently invest in these three aspects to help expand our business beyond the territorial boundaries of the UAE and at the same time enhance what we can offer which is relevant to these segments We attribute our success to the efforts which every employee contributes We also strongly believe in the ldquoWe can make it happenrdquo principle The management raises the index of performance while setting SMART objectives within the organisation and encouraging the employees to achieve them
How has your position as the CFO changed over NMDCrsquos 35 years of operationAs the market evolves and business dynamics change my role as the CFO has become complex and more challenging A few years back I was mainly focused on bookkeeping accounting and other financial responsibilities such as arranging bank facilities But moving forward I became more involved
The UAE is progressively becoming a hub for world-class infrastructure The country has duly impressed the rest of the globe with noteworthy land developments showcased across the emirates Among the remarkable landscapes found in Abu Dhabi are the Corniche Beach Yas Island and Sir Baniyas Island Behind these successful projects is NMDC the dredging division of Abu Dhabi National Oil Company (ADNOC)
In an interview with CFO Magazine Gautam Pradhan Chief Financial Officer NMDC shares an exclusive look into the companyrsquos international blueprint for growth and his dynamic role as a strategic leader of one of the best in dredging and marine construction in the Middle East
59
Gautam PradhanINTERVIEW
wwwthecfomecom
branches in Qatar Bahrain Oman and India This has paid rich dividends recently as projects of strategic importance are bagged in Qatar and Bahrain Furthermore NMDC (UAE) has recently played a key role as a leader of an international consortium with Royal Boskalis Westminister (Netherlands) and Jan De Nul Group (Belgium) for the awarding of the Suez Canal Dredging project in Egypt Moving forward we have devised a strategic approach that will enable us to play a key role in the development of Indiarsquos marine infrastructure
What are the global strategies that are part of the CFOrsquos responsibilitiesAs CFO understanding the macro economic scenario risk analysis and mitigating those risks are all a part of my responsibilities I also have to have a proper comprehension
ldquoA few years back I was mainly focused on financial responsibilities moving forward I became more involved in strategic decision making mentoring and leading productivityrdquo
Gautam PradhanINTERVIEW
60 wwwthecfomecom
of the challenges faced by the company in terms of dealing with foreign contracts direct and indirect taxes and hedging and managing the integration process These are essential to enhance shareholders wealth and mitigate undue risk
How significant is accountancy for NMDC in its operations Why exactlyAccountancy is the lifeline of any company it does not only record the finances it also reflects the health of the organisation The MIS reports analysis trends and statistical information go a long way toward effectively providing
the diagnostic approach essential for the company
How have NMDCrsquos environmental activities helped the companyrsquos bottom lineNMDCrsquos work is well-synchronised with our environmental activities and specifically with nature Our activities are closely linked to sand and water and we view such activities with strategic importance Projects such as increasing water supply to mangroves and beach nourishment help us support the environmental activities while adding to our bottom line
ldquoAccountancy is the lifeline of any company it does not only record the finances it also reflects the health of the organisationrdquo
A burgeoning slice of Abu Dhabi coastline
The largest business awards
in the GCC30th November Dubai
nominate now at wwwstarsofbusinessawardscom
Stars of Business has become an iconic awards brand like no other in the region It recognizes the very best SMEs across 26 business categories Itrsquos universally respected as scientifically assessed and unimpeachably judged
327000 SMEs across the UAE$234 billion estimated total revenue of the SME sector4974 Awards entries in 20131856 Individual company applicants
Presenting Partner Strategic SME Partner Gold Sponsor Gold Sponsor VIP Hospitality Partner Supporting Partner
Trade Facilitator PartnerTrade Credit PartnerLogistics Partner
Institutional Partner Institutional Partner Event Partner
OrganiserPublisherMedia Partner Media PartnerPort Authority Partner
62
David Allen INTERVIEW
wwwthecfomecom
What went into completing your bestseller ndash Getting Things Done (GTD)After twenty years of researching developing and implementing a methodology for achieving stress-free productivity based upon
thousands of hours spent desk-side with
some of the best brightest and busiest people in the world I decided to write the manual for it Thatrsquos what Getting Things Done is
What are the five phases of mastering workflowIn order to get
any situation under control so
you can focus you will utilise these five
steps Whether yoursquore managing your kitchen
or your company you will need to collect and capture what has your attention clarify what if anything to do about it organise it according to what it means to you review and reflect upon it in relation to
Todayrsquos evolving CFO is often caught between the world of business set-up generating revenue managing employees and building strong company infrastructure When can things actually get done What can one do to boost productivity and master workflow World-renowned business coach David Allen has the answers
PRODUCTIvITy PRINCIPLES WITH
DAvID ALLEN
63
David Allen INTERVIEW
wwwthecfomecom
those are greatly subvertedHow does one maintain a fair balance between the time spent planning and actually getting things doneYou simply need to spend just the amount of time you need to to trust that what you are getting done is the right thing to be getting done in the moment It takes as long as it takes to get to that point Why would you do anything less
How can one apply your core productivity and workflow principles to todayrsquos technologically driven environmentThe principles and their techniques are system-independent Whether you have meaningful input from the Internet your smartphone or a conversation in the hall you must engage with it equally Technology has simply increased the flow of input and ease of distraction in your world
There is a lot of talk about how connected wersquove become and how connectivity is driving tremendous business growth Does connectivity actually come with its fair share of downsides
Connectivity is obviously a two-edged sword We can have intimate productive and creative interaction instantly with someone on the other side of the world and we can just as easily be distracted and seduced into those engagements when they may not be the best use of our attention and resources Donrsquot shoot the medium Itrsquos all simply bringing attention to your clarity of direction and priorities or lack thereof
Could you share a few quick tips with our readers to instantly boost productivityWrite everything down that has your attention Decide the very next actions required to get closure on all of them Any next actions that require less than two minutes do instantly Park reminders of everything else somewhere that yoursquoll see when you can do something about them
We are currently facing a massive information overload What are some basic principles you could suggest to mentally organise such large amounts of dataConstantly ask yourself Where am I going Whatrsquos important and rewarding to me Is this information
the whole and then engage your resources with intuitive trust
As a CFO how can you transfer efficient workflow management skills to your employees Itrsquos very difficult to legislate processes for individuals ndash you can really only hold them accountable for their results But if you are managing your own commitments and intersections with them with integrity and rigour it will automatically force your team to ldquostep up to the platerdquo in their own behaviours in order to meet your standards If you request their complete list of their company projects and they canrsquot produce it thatrsquos a sign theyrsquore not in control If they make a commitment to you that they havenrsquot kept thatrsquos data about their performance GTD is simply about good operational business practices
With so many planning and organising activities in your methodology is there a risk of losing spontaneity as a strategistThe reason for these best practices is to optimise freedom creativity and spontaneity Without them
ldquoBut if you are manag-ing your own com-mitments and intersec-tions with them with integrity and rigour it will automatical-ly force them to ldquostep up to the platerdquo in their own behaviours in order to meet your standardsrdquo
64 wwwthecfomecom
supporting that Park whatever you find potentially meaningful somewhere that is easy to access when needed
Being an entrepreneur is a non-stop job How do you ensure that you have an adequate work-life balance Pay attention to what has your attentionmdashwith regard to anything Your health relationships career finances etc Notice when something might be ldquooffrdquo and make good decisions about what you need to do to get it back ldquoonrdquo again
Does your work teach people to be efficient or effective In essence they are the same thing Effective choices are generated by efficiency on a higher level If you want to implement strategy most effectively it demands utilising your resources optimally which is efficiency
Does motivation actually improve quality of work or purely quantityDepends on the focus of the motivation You can be motivated to work harder and you can be motivated to work smarter
What is your favourite productivity mantra that
you implement in your day-to-day lifeUsing my own in-basket and note-taking devices to capture potentially meaningful and valuable ideas and soon afterwards clearing all of them out by deciding what to do about them if anything
Your books seminars and other work inspires many individuals and businesses Who is your personal inspiration or role model I have many about many different aspects of my life The only person though that I ultimately trust as my best guide is my higher self which I try to access as frequently and clearly as I can
Finally what advice would you give to current business owners and aspiring entrepreneurs looking to gain complete control of their life and businessCapture what has your attention clarify what you need to do about it to get it off your mind organise the inventory of all your commitments at all levels review and reflect on all of that regularly relax and trust your inner wisdom to engage with the most appropriate thing in the moment
ldquoIf you want to implement strategy most effectively it demands utilising your resources optimallyrdquo
David Allen INTERVIEW
APPSTECH TALK
wwwthecfomecom 65
mAxImISE BUSINESS lsquoON-THE-GOrsquo WITH THESE HANDy APPS
ipAd SpECIAL
SAMSUNG UNvEILS GALAxY NOTE EDGE
Network
AP
Display
OS
Camera
Video
Audio
Additional Features
GoogleMobile Services
Connectivity
Sensor
Memory
Dimension
Battery
The availability of service may differ by country All functionality features specifications and other product information provided in this document including but not limited to the benefits design pricing components performance availability and capabilities of the product are subject to change without notice or obligation
Samsung Galaxy Note Edge Product Specifications
25G (GSM GPRS EDGE) 850 900 1800 1900 MHz3G (HSPA + 42Mbps) 850 900 1900 2100 MHz4G (LTE Cat 4 15050Mbps) or 4G(LTE Cat 6 30050Mbps)May differ by country and carrier
27 GHz Quad-Core Processor
56 inch (1419mm) Quad HD+ Super AMOLED (2560 x 1440 + 160)
Android 44 (KitKat)
Rear Facing 16 Mega pixel Auto Focus camera with Smart OISFront Facing 37 Mega pixel camera with f19Rear Facing Camera HDR (Rich tone) Selective Focus Rear-cam Selfie Beauty face Virtual Tour Shot ShotampMore Dual CameraFront Facing Camera Selfie Wide Selfie
Codec H264 MPEG-4 H263 VC-1 WMV7 WMV8 Sorenson Spark MP43 VP8 Recording amp Playback up to UHD
Codec MP3 AACAAC+eAAC+ WMA AMR-NBWB Vorbis FLAC()() Ultra High Quality Audio (~192KHz 24 bit) support
Multi WindowUltra Power Saving ModeVoice Recorder (Normal Mode Interview Mode Meeting Mode Voice Memo)Download BoosterS Health 35Dynamic Lock ScreenBriefingEdge screen UX Revolving Interaction Immersive apps(Camera Video S Note)Ticker board Express me Quick Tools Night Clock etc
Chrome Drive Photos Gmail Google Google+ Google Settings Hangouts Maps Play Books Play Games Play Newsstand Play Movie amp TV Play Music Play Store Voice Search YouTube
WiFi 80211 abgnac (HT80) MIMO PCIeGPS GLONASS BeidouNFC Bluetoothreg v 41 (BLE ANT+)IR LED (Remote Control) USB20 MHL 30
Gesture Accelerometer Geo-magnetic Gyroscope RGB IR-LEDProximity Barometer Hall Sensor Finger Scanner UV Heart Rate Monitoring SpO2 (Dependent on market)
32 64 GB Internal memory + microSD slot (up to 128GB)3GB RAM
1513 x 824 x 83mm 174g
Standard battery Li-ion 3000 mAh Fast Charging (Adaptive Fast Charging amp QC20)
wwwthecfomecom66
APPSTECH TALK
AIR DISPLAY
SQUARE REGISTER
Using this app you can connect your iPad to your computer and use it as an additional screen While working on an important presentation or sales proposal you can extend or mirror your computer screen on your iPad This app is compatible with both Mac and Windows computers Note that to use this feature you have to install Air Display on your iPad and a separate free app on your computer The computer and iPad also need to be on the same Wi-Fi network in order to work in-sync
For Mac users the app allows you to connect to up to four screens ndash all at the same time
Apart from the ability to convert your iPad into a wireless display whatrsquos also attractive about this app is that it allows you to control your computer wirelessly using your iPad
This fantastic application can serve as a mobile point of sale for your business It allows you to accept credit card payments ndash including Visa MasterCard Discover and American Express A transaction fee of 275 is charged for every time you swipe a card The sale amount is transferred to your account within two working days
Once you download the app you can sign up and register for a unique card reader solution called the lsquoSquare Readerrsquo (this is free) Square Reader encrypts all card details and ensures that the transaction is secure Once you receive your Square Reader you can connect it to your device and are all set
The application also offers added features such as transaction history connecting to a receipt printer creating employee logins and more
AED 3699
PRICE
Free
PRICE
wwwthecfomecom 67
APPSTECH TALK
DOCUSIGNHave you ever been in a situation where your employees need you to urgently sign a contract but arenrsquot able to physically reach you in time DocuSign solves this problem with its easy-to-use eSignature feature In three easy steps you can sign important documents and securely send them to your intended recipient
First you have to import the document to your device ndash this could be from Dropbox Google Drive or another select applications You then place your signature or any other important legal information you need to include such as initials Once you have finished working on the document send it back via e-mail
Whatrsquos particularly great about DocuSign is the great emphasis it puts on security ndash so that users donrsquot have to worry about getting into any legal trouble
Use DocuSign and never miss a deadline again
Free for basic version
PRICE
MPAYAn initiative by the Dubai eGovernment Department mPay is a simple application that allows you to make important payments Once yoursquove signed up and entered your payment details you are good to go You can pay your Dubai Electricity and Water Authority (DEWA) bills Etisalat utility bills Dubai Police fines Recharge SALIK and much more
A handy feature is its lsquoauto-rechargersquo option which you can use to set automatic payments
Free
PRICE
Opinion CIMAPERSONALITIES
wwwthecfomecom68
NEW HORIZONSBy geetu Ahuja Head of gCC at CIMA
The days of the traditional accountant working within a small community in a small town in a small market have long gone CFOs are now being referred to as Chief Frontier Officers as they travel from market to market overseeing their offices overseas This new expanded role has distinct advantages for both the company and the CFO who gain new skills and new insights from foreign branches a single hand at the helm of many markets provides business perspectives on a global scale and benchmarks across the board
On a personal level working abroad also has huge importance Robert Walters the specialist professional recruitment consultancy recently conducted a survey
of almost 2200 employees across a variety of professions exploring a number of topics which ranged from working practices and attitudes to careers The results highlighted some notable trends particularly for finance professionals
In career progression for example the survey showed that 50 of all accountants see working abroad as either lsquoessentialrsquo or lsquoextremely usefulrsquo to furthering their prospects more than banking professionals lawyers and IT workers ndash a strong indication of how accounting professionals are thinking about their future either within their existing company or with opportunities elsewhere
Accountants with globally recognised qualifications obviously have a greater chance of gaining some experience abroad and the lsquoGen Yrsquo professionals in particular seem ready to pack their bags In a CIMA study conducted in the UK last year over a third of those seeking employment in the
next two years will prioritise opportunities abroad over those in their home countries many of them enticed by the career incentives offered by the Middle East
How quickly can they land what seems to be their dream job What are the realities It may be that the move is simply from one branch to another and the only significant difference is a view from the window but for those expanding rather than changing their roles we have seen a very real need for a depth and breadth of knowledge never needed before
As geographical boundaries are pushed ever-wider a CFOrsquos responsibilities are pushed with them For many finance executives the understanding of their own patch of land is no longer enough they now have to be aware of foreign markets up to speed with foreign trends and au fait with foreign laws There is a need for a new commercial awareness in geography as well as philosophy
As geographical boundaries are pushed ever-wider a CFOrsquos responsibilities are pushed with them
John vargheseQampA
wwwthecfomecom 69
BUSINESSSET UP YOUR
IN THE UNITED ARAB EMIRATES
TO
WAREHOUSESOFFICES INDUSTRIAL LANDFLEXI
Quick and easy company set-up
Less than an hour drive from Dubai
Complete cost-effective packages including licences and facilities
100 foreign ownership
Zero income and corporate taxes
Eligibility for UAE Residence Visa
BUSINESS SET-UP SOLUTIONS STARTING FROM AED 15000 (USD 4000)
RAK FREE TRADE ZONE PROVIDES
RAK Free Trade Zone Authority - Government of Ras Al KhaimahUAE (Ras Al Khaimah) Tel +971 7 2041111 (Dubai) Tel +971 4 7041875 (Abu Dhabi) Tel +971 2 6994888
Germany (Cologne) - Turkey (Istanbul) - India (Mumbai)
Call +971 7 204 1111 Visit wwwrakftzcom Join rakftz
59
Gautam PradhanINTERVIEW
wwwthecfomecom
branches in Qatar Bahrain Oman and India This has paid rich dividends recently as projects of strategic importance are bagged in Qatar and Bahrain Furthermore NMDC (UAE) has recently played a key role as a leader of an international consortium with Royal Boskalis Westminister (Netherlands) and Jan De Nul Group (Belgium) for the awarding of the Suez Canal Dredging project in Egypt Moving forward we have devised a strategic approach that will enable us to play a key role in the development of Indiarsquos marine infrastructure
What are the global strategies that are part of the CFOrsquos responsibilitiesAs CFO understanding the macro economic scenario risk analysis and mitigating those risks are all a part of my responsibilities I also have to have a proper comprehension
ldquoA few years back I was mainly focused on financial responsibilities moving forward I became more involved in strategic decision making mentoring and leading productivityrdquo
Gautam PradhanINTERVIEW
60 wwwthecfomecom
of the challenges faced by the company in terms of dealing with foreign contracts direct and indirect taxes and hedging and managing the integration process These are essential to enhance shareholders wealth and mitigate undue risk
How significant is accountancy for NMDC in its operations Why exactlyAccountancy is the lifeline of any company it does not only record the finances it also reflects the health of the organisation The MIS reports analysis trends and statistical information go a long way toward effectively providing
the diagnostic approach essential for the company
How have NMDCrsquos environmental activities helped the companyrsquos bottom lineNMDCrsquos work is well-synchronised with our environmental activities and specifically with nature Our activities are closely linked to sand and water and we view such activities with strategic importance Projects such as increasing water supply to mangroves and beach nourishment help us support the environmental activities while adding to our bottom line
ldquoAccountancy is the lifeline of any company it does not only record the finances it also reflects the health of the organisationrdquo
A burgeoning slice of Abu Dhabi coastline
The largest business awards
in the GCC30th November Dubai
nominate now at wwwstarsofbusinessawardscom
Stars of Business has become an iconic awards brand like no other in the region It recognizes the very best SMEs across 26 business categories Itrsquos universally respected as scientifically assessed and unimpeachably judged
327000 SMEs across the UAE$234 billion estimated total revenue of the SME sector4974 Awards entries in 20131856 Individual company applicants
Presenting Partner Strategic SME Partner Gold Sponsor Gold Sponsor VIP Hospitality Partner Supporting Partner
Trade Facilitator PartnerTrade Credit PartnerLogistics Partner
Institutional Partner Institutional Partner Event Partner
OrganiserPublisherMedia Partner Media PartnerPort Authority Partner
62
David Allen INTERVIEW
wwwthecfomecom
What went into completing your bestseller ndash Getting Things Done (GTD)After twenty years of researching developing and implementing a methodology for achieving stress-free productivity based upon
thousands of hours spent desk-side with
some of the best brightest and busiest people in the world I decided to write the manual for it Thatrsquos what Getting Things Done is
What are the five phases of mastering workflowIn order to get
any situation under control so
you can focus you will utilise these five
steps Whether yoursquore managing your kitchen
or your company you will need to collect and capture what has your attention clarify what if anything to do about it organise it according to what it means to you review and reflect upon it in relation to
Todayrsquos evolving CFO is often caught between the world of business set-up generating revenue managing employees and building strong company infrastructure When can things actually get done What can one do to boost productivity and master workflow World-renowned business coach David Allen has the answers
PRODUCTIvITy PRINCIPLES WITH
DAvID ALLEN
63
David Allen INTERVIEW
wwwthecfomecom
those are greatly subvertedHow does one maintain a fair balance between the time spent planning and actually getting things doneYou simply need to spend just the amount of time you need to to trust that what you are getting done is the right thing to be getting done in the moment It takes as long as it takes to get to that point Why would you do anything less
How can one apply your core productivity and workflow principles to todayrsquos technologically driven environmentThe principles and their techniques are system-independent Whether you have meaningful input from the Internet your smartphone or a conversation in the hall you must engage with it equally Technology has simply increased the flow of input and ease of distraction in your world
There is a lot of talk about how connected wersquove become and how connectivity is driving tremendous business growth Does connectivity actually come with its fair share of downsides
Connectivity is obviously a two-edged sword We can have intimate productive and creative interaction instantly with someone on the other side of the world and we can just as easily be distracted and seduced into those engagements when they may not be the best use of our attention and resources Donrsquot shoot the medium Itrsquos all simply bringing attention to your clarity of direction and priorities or lack thereof
Could you share a few quick tips with our readers to instantly boost productivityWrite everything down that has your attention Decide the very next actions required to get closure on all of them Any next actions that require less than two minutes do instantly Park reminders of everything else somewhere that yoursquoll see when you can do something about them
We are currently facing a massive information overload What are some basic principles you could suggest to mentally organise such large amounts of dataConstantly ask yourself Where am I going Whatrsquos important and rewarding to me Is this information
the whole and then engage your resources with intuitive trust
As a CFO how can you transfer efficient workflow management skills to your employees Itrsquos very difficult to legislate processes for individuals ndash you can really only hold them accountable for their results But if you are managing your own commitments and intersections with them with integrity and rigour it will automatically force your team to ldquostep up to the platerdquo in their own behaviours in order to meet your standards If you request their complete list of their company projects and they canrsquot produce it thatrsquos a sign theyrsquore not in control If they make a commitment to you that they havenrsquot kept thatrsquos data about their performance GTD is simply about good operational business practices
With so many planning and organising activities in your methodology is there a risk of losing spontaneity as a strategistThe reason for these best practices is to optimise freedom creativity and spontaneity Without them
ldquoBut if you are manag-ing your own com-mitments and intersec-tions with them with integrity and rigour it will automatical-ly force them to ldquostep up to the platerdquo in their own behaviours in order to meet your standardsrdquo
64 wwwthecfomecom
supporting that Park whatever you find potentially meaningful somewhere that is easy to access when needed
Being an entrepreneur is a non-stop job How do you ensure that you have an adequate work-life balance Pay attention to what has your attentionmdashwith regard to anything Your health relationships career finances etc Notice when something might be ldquooffrdquo and make good decisions about what you need to do to get it back ldquoonrdquo again
Does your work teach people to be efficient or effective In essence they are the same thing Effective choices are generated by efficiency on a higher level If you want to implement strategy most effectively it demands utilising your resources optimally which is efficiency
Does motivation actually improve quality of work or purely quantityDepends on the focus of the motivation You can be motivated to work harder and you can be motivated to work smarter
What is your favourite productivity mantra that
you implement in your day-to-day lifeUsing my own in-basket and note-taking devices to capture potentially meaningful and valuable ideas and soon afterwards clearing all of them out by deciding what to do about them if anything
Your books seminars and other work inspires many individuals and businesses Who is your personal inspiration or role model I have many about many different aspects of my life The only person though that I ultimately trust as my best guide is my higher self which I try to access as frequently and clearly as I can
Finally what advice would you give to current business owners and aspiring entrepreneurs looking to gain complete control of their life and businessCapture what has your attention clarify what you need to do about it to get it off your mind organise the inventory of all your commitments at all levels review and reflect on all of that regularly relax and trust your inner wisdom to engage with the most appropriate thing in the moment
ldquoIf you want to implement strategy most effectively it demands utilising your resources optimallyrdquo
David Allen INTERVIEW
APPSTECH TALK
wwwthecfomecom 65
mAxImISE BUSINESS lsquoON-THE-GOrsquo WITH THESE HANDy APPS
ipAd SpECIAL
SAMSUNG UNvEILS GALAxY NOTE EDGE
Network
AP
Display
OS
Camera
Video
Audio
Additional Features
GoogleMobile Services
Connectivity
Sensor
Memory
Dimension
Battery
The availability of service may differ by country All functionality features specifications and other product information provided in this document including but not limited to the benefits design pricing components performance availability and capabilities of the product are subject to change without notice or obligation
Samsung Galaxy Note Edge Product Specifications
25G (GSM GPRS EDGE) 850 900 1800 1900 MHz3G (HSPA + 42Mbps) 850 900 1900 2100 MHz4G (LTE Cat 4 15050Mbps) or 4G(LTE Cat 6 30050Mbps)May differ by country and carrier
27 GHz Quad-Core Processor
56 inch (1419mm) Quad HD+ Super AMOLED (2560 x 1440 + 160)
Android 44 (KitKat)
Rear Facing 16 Mega pixel Auto Focus camera with Smart OISFront Facing 37 Mega pixel camera with f19Rear Facing Camera HDR (Rich tone) Selective Focus Rear-cam Selfie Beauty face Virtual Tour Shot ShotampMore Dual CameraFront Facing Camera Selfie Wide Selfie
Codec H264 MPEG-4 H263 VC-1 WMV7 WMV8 Sorenson Spark MP43 VP8 Recording amp Playback up to UHD
Codec MP3 AACAAC+eAAC+ WMA AMR-NBWB Vorbis FLAC()() Ultra High Quality Audio (~192KHz 24 bit) support
Multi WindowUltra Power Saving ModeVoice Recorder (Normal Mode Interview Mode Meeting Mode Voice Memo)Download BoosterS Health 35Dynamic Lock ScreenBriefingEdge screen UX Revolving Interaction Immersive apps(Camera Video S Note)Ticker board Express me Quick Tools Night Clock etc
Chrome Drive Photos Gmail Google Google+ Google Settings Hangouts Maps Play Books Play Games Play Newsstand Play Movie amp TV Play Music Play Store Voice Search YouTube
WiFi 80211 abgnac (HT80) MIMO PCIeGPS GLONASS BeidouNFC Bluetoothreg v 41 (BLE ANT+)IR LED (Remote Control) USB20 MHL 30
Gesture Accelerometer Geo-magnetic Gyroscope RGB IR-LEDProximity Barometer Hall Sensor Finger Scanner UV Heart Rate Monitoring SpO2 (Dependent on market)
32 64 GB Internal memory + microSD slot (up to 128GB)3GB RAM
1513 x 824 x 83mm 174g
Standard battery Li-ion 3000 mAh Fast Charging (Adaptive Fast Charging amp QC20)
wwwthecfomecom66
APPSTECH TALK
AIR DISPLAY
SQUARE REGISTER
Using this app you can connect your iPad to your computer and use it as an additional screen While working on an important presentation or sales proposal you can extend or mirror your computer screen on your iPad This app is compatible with both Mac and Windows computers Note that to use this feature you have to install Air Display on your iPad and a separate free app on your computer The computer and iPad also need to be on the same Wi-Fi network in order to work in-sync
For Mac users the app allows you to connect to up to four screens ndash all at the same time
Apart from the ability to convert your iPad into a wireless display whatrsquos also attractive about this app is that it allows you to control your computer wirelessly using your iPad
This fantastic application can serve as a mobile point of sale for your business It allows you to accept credit card payments ndash including Visa MasterCard Discover and American Express A transaction fee of 275 is charged for every time you swipe a card The sale amount is transferred to your account within two working days
Once you download the app you can sign up and register for a unique card reader solution called the lsquoSquare Readerrsquo (this is free) Square Reader encrypts all card details and ensures that the transaction is secure Once you receive your Square Reader you can connect it to your device and are all set
The application also offers added features such as transaction history connecting to a receipt printer creating employee logins and more
AED 3699
PRICE
Free
PRICE
wwwthecfomecom 67
APPSTECH TALK
DOCUSIGNHave you ever been in a situation where your employees need you to urgently sign a contract but arenrsquot able to physically reach you in time DocuSign solves this problem with its easy-to-use eSignature feature In three easy steps you can sign important documents and securely send them to your intended recipient
First you have to import the document to your device ndash this could be from Dropbox Google Drive or another select applications You then place your signature or any other important legal information you need to include such as initials Once you have finished working on the document send it back via e-mail
Whatrsquos particularly great about DocuSign is the great emphasis it puts on security ndash so that users donrsquot have to worry about getting into any legal trouble
Use DocuSign and never miss a deadline again
Free for basic version
PRICE
MPAYAn initiative by the Dubai eGovernment Department mPay is a simple application that allows you to make important payments Once yoursquove signed up and entered your payment details you are good to go You can pay your Dubai Electricity and Water Authority (DEWA) bills Etisalat utility bills Dubai Police fines Recharge SALIK and much more
A handy feature is its lsquoauto-rechargersquo option which you can use to set automatic payments
Free
PRICE
Opinion CIMAPERSONALITIES
wwwthecfomecom68
NEW HORIZONSBy geetu Ahuja Head of gCC at CIMA
The days of the traditional accountant working within a small community in a small town in a small market have long gone CFOs are now being referred to as Chief Frontier Officers as they travel from market to market overseeing their offices overseas This new expanded role has distinct advantages for both the company and the CFO who gain new skills and new insights from foreign branches a single hand at the helm of many markets provides business perspectives on a global scale and benchmarks across the board
On a personal level working abroad also has huge importance Robert Walters the specialist professional recruitment consultancy recently conducted a survey
of almost 2200 employees across a variety of professions exploring a number of topics which ranged from working practices and attitudes to careers The results highlighted some notable trends particularly for finance professionals
In career progression for example the survey showed that 50 of all accountants see working abroad as either lsquoessentialrsquo or lsquoextremely usefulrsquo to furthering their prospects more than banking professionals lawyers and IT workers ndash a strong indication of how accounting professionals are thinking about their future either within their existing company or with opportunities elsewhere
Accountants with globally recognised qualifications obviously have a greater chance of gaining some experience abroad and the lsquoGen Yrsquo professionals in particular seem ready to pack their bags In a CIMA study conducted in the UK last year over a third of those seeking employment in the
next two years will prioritise opportunities abroad over those in their home countries many of them enticed by the career incentives offered by the Middle East
How quickly can they land what seems to be their dream job What are the realities It may be that the move is simply from one branch to another and the only significant difference is a view from the window but for those expanding rather than changing their roles we have seen a very real need for a depth and breadth of knowledge never needed before
As geographical boundaries are pushed ever-wider a CFOrsquos responsibilities are pushed with them For many finance executives the understanding of their own patch of land is no longer enough they now have to be aware of foreign markets up to speed with foreign trends and au fait with foreign laws There is a need for a new commercial awareness in geography as well as philosophy
As geographical boundaries are pushed ever-wider a CFOrsquos responsibilities are pushed with them
John vargheseQampA
wwwthecfomecom 69
BUSINESSSET UP YOUR
IN THE UNITED ARAB EMIRATES
TO
WAREHOUSESOFFICES INDUSTRIAL LANDFLEXI
Quick and easy company set-up
Less than an hour drive from Dubai
Complete cost-effective packages including licences and facilities
100 foreign ownership
Zero income and corporate taxes
Eligibility for UAE Residence Visa
BUSINESS SET-UP SOLUTIONS STARTING FROM AED 15000 (USD 4000)
RAK FREE TRADE ZONE PROVIDES
RAK Free Trade Zone Authority - Government of Ras Al KhaimahUAE (Ras Al Khaimah) Tel +971 7 2041111 (Dubai) Tel +971 4 7041875 (Abu Dhabi) Tel +971 2 6994888
Germany (Cologne) - Turkey (Istanbul) - India (Mumbai)
Call +971 7 204 1111 Visit wwwrakftzcom Join rakftz
Gautam PradhanINTERVIEW
60 wwwthecfomecom
of the challenges faced by the company in terms of dealing with foreign contracts direct and indirect taxes and hedging and managing the integration process These are essential to enhance shareholders wealth and mitigate undue risk
How significant is accountancy for NMDC in its operations Why exactlyAccountancy is the lifeline of any company it does not only record the finances it also reflects the health of the organisation The MIS reports analysis trends and statistical information go a long way toward effectively providing
the diagnostic approach essential for the company
How have NMDCrsquos environmental activities helped the companyrsquos bottom lineNMDCrsquos work is well-synchronised with our environmental activities and specifically with nature Our activities are closely linked to sand and water and we view such activities with strategic importance Projects such as increasing water supply to mangroves and beach nourishment help us support the environmental activities while adding to our bottom line
ldquoAccountancy is the lifeline of any company it does not only record the finances it also reflects the health of the organisationrdquo
A burgeoning slice of Abu Dhabi coastline
The largest business awards
in the GCC30th November Dubai
nominate now at wwwstarsofbusinessawardscom
Stars of Business has become an iconic awards brand like no other in the region It recognizes the very best SMEs across 26 business categories Itrsquos universally respected as scientifically assessed and unimpeachably judged
327000 SMEs across the UAE$234 billion estimated total revenue of the SME sector4974 Awards entries in 20131856 Individual company applicants
Presenting Partner Strategic SME Partner Gold Sponsor Gold Sponsor VIP Hospitality Partner Supporting Partner
Trade Facilitator PartnerTrade Credit PartnerLogistics Partner
Institutional Partner Institutional Partner Event Partner
OrganiserPublisherMedia Partner Media PartnerPort Authority Partner
62
David Allen INTERVIEW
wwwthecfomecom
What went into completing your bestseller ndash Getting Things Done (GTD)After twenty years of researching developing and implementing a methodology for achieving stress-free productivity based upon
thousands of hours spent desk-side with
some of the best brightest and busiest people in the world I decided to write the manual for it Thatrsquos what Getting Things Done is
What are the five phases of mastering workflowIn order to get
any situation under control so
you can focus you will utilise these five
steps Whether yoursquore managing your kitchen
or your company you will need to collect and capture what has your attention clarify what if anything to do about it organise it according to what it means to you review and reflect upon it in relation to
Todayrsquos evolving CFO is often caught between the world of business set-up generating revenue managing employees and building strong company infrastructure When can things actually get done What can one do to boost productivity and master workflow World-renowned business coach David Allen has the answers
PRODUCTIvITy PRINCIPLES WITH
DAvID ALLEN
63
David Allen INTERVIEW
wwwthecfomecom
those are greatly subvertedHow does one maintain a fair balance between the time spent planning and actually getting things doneYou simply need to spend just the amount of time you need to to trust that what you are getting done is the right thing to be getting done in the moment It takes as long as it takes to get to that point Why would you do anything less
How can one apply your core productivity and workflow principles to todayrsquos technologically driven environmentThe principles and their techniques are system-independent Whether you have meaningful input from the Internet your smartphone or a conversation in the hall you must engage with it equally Technology has simply increased the flow of input and ease of distraction in your world
There is a lot of talk about how connected wersquove become and how connectivity is driving tremendous business growth Does connectivity actually come with its fair share of downsides
Connectivity is obviously a two-edged sword We can have intimate productive and creative interaction instantly with someone on the other side of the world and we can just as easily be distracted and seduced into those engagements when they may not be the best use of our attention and resources Donrsquot shoot the medium Itrsquos all simply bringing attention to your clarity of direction and priorities or lack thereof
Could you share a few quick tips with our readers to instantly boost productivityWrite everything down that has your attention Decide the very next actions required to get closure on all of them Any next actions that require less than two minutes do instantly Park reminders of everything else somewhere that yoursquoll see when you can do something about them
We are currently facing a massive information overload What are some basic principles you could suggest to mentally organise such large amounts of dataConstantly ask yourself Where am I going Whatrsquos important and rewarding to me Is this information
the whole and then engage your resources with intuitive trust
As a CFO how can you transfer efficient workflow management skills to your employees Itrsquos very difficult to legislate processes for individuals ndash you can really only hold them accountable for their results But if you are managing your own commitments and intersections with them with integrity and rigour it will automatically force your team to ldquostep up to the platerdquo in their own behaviours in order to meet your standards If you request their complete list of their company projects and they canrsquot produce it thatrsquos a sign theyrsquore not in control If they make a commitment to you that they havenrsquot kept thatrsquos data about their performance GTD is simply about good operational business practices
With so many planning and organising activities in your methodology is there a risk of losing spontaneity as a strategistThe reason for these best practices is to optimise freedom creativity and spontaneity Without them
ldquoBut if you are manag-ing your own com-mitments and intersec-tions with them with integrity and rigour it will automatical-ly force them to ldquostep up to the platerdquo in their own behaviours in order to meet your standardsrdquo
64 wwwthecfomecom
supporting that Park whatever you find potentially meaningful somewhere that is easy to access when needed
Being an entrepreneur is a non-stop job How do you ensure that you have an adequate work-life balance Pay attention to what has your attentionmdashwith regard to anything Your health relationships career finances etc Notice when something might be ldquooffrdquo and make good decisions about what you need to do to get it back ldquoonrdquo again
Does your work teach people to be efficient or effective In essence they are the same thing Effective choices are generated by efficiency on a higher level If you want to implement strategy most effectively it demands utilising your resources optimally which is efficiency
Does motivation actually improve quality of work or purely quantityDepends on the focus of the motivation You can be motivated to work harder and you can be motivated to work smarter
What is your favourite productivity mantra that
you implement in your day-to-day lifeUsing my own in-basket and note-taking devices to capture potentially meaningful and valuable ideas and soon afterwards clearing all of them out by deciding what to do about them if anything
Your books seminars and other work inspires many individuals and businesses Who is your personal inspiration or role model I have many about many different aspects of my life The only person though that I ultimately trust as my best guide is my higher self which I try to access as frequently and clearly as I can
Finally what advice would you give to current business owners and aspiring entrepreneurs looking to gain complete control of their life and businessCapture what has your attention clarify what you need to do about it to get it off your mind organise the inventory of all your commitments at all levels review and reflect on all of that regularly relax and trust your inner wisdom to engage with the most appropriate thing in the moment
ldquoIf you want to implement strategy most effectively it demands utilising your resources optimallyrdquo
David Allen INTERVIEW
APPSTECH TALK
wwwthecfomecom 65
mAxImISE BUSINESS lsquoON-THE-GOrsquo WITH THESE HANDy APPS
ipAd SpECIAL
SAMSUNG UNvEILS GALAxY NOTE EDGE
Network
AP
Display
OS
Camera
Video
Audio
Additional Features
GoogleMobile Services
Connectivity
Sensor
Memory
Dimension
Battery
The availability of service may differ by country All functionality features specifications and other product information provided in this document including but not limited to the benefits design pricing components performance availability and capabilities of the product are subject to change without notice or obligation
Samsung Galaxy Note Edge Product Specifications
25G (GSM GPRS EDGE) 850 900 1800 1900 MHz3G (HSPA + 42Mbps) 850 900 1900 2100 MHz4G (LTE Cat 4 15050Mbps) or 4G(LTE Cat 6 30050Mbps)May differ by country and carrier
27 GHz Quad-Core Processor
56 inch (1419mm) Quad HD+ Super AMOLED (2560 x 1440 + 160)
Android 44 (KitKat)
Rear Facing 16 Mega pixel Auto Focus camera with Smart OISFront Facing 37 Mega pixel camera with f19Rear Facing Camera HDR (Rich tone) Selective Focus Rear-cam Selfie Beauty face Virtual Tour Shot ShotampMore Dual CameraFront Facing Camera Selfie Wide Selfie
Codec H264 MPEG-4 H263 VC-1 WMV7 WMV8 Sorenson Spark MP43 VP8 Recording amp Playback up to UHD
Codec MP3 AACAAC+eAAC+ WMA AMR-NBWB Vorbis FLAC()() Ultra High Quality Audio (~192KHz 24 bit) support
Multi WindowUltra Power Saving ModeVoice Recorder (Normal Mode Interview Mode Meeting Mode Voice Memo)Download BoosterS Health 35Dynamic Lock ScreenBriefingEdge screen UX Revolving Interaction Immersive apps(Camera Video S Note)Ticker board Express me Quick Tools Night Clock etc
Chrome Drive Photos Gmail Google Google+ Google Settings Hangouts Maps Play Books Play Games Play Newsstand Play Movie amp TV Play Music Play Store Voice Search YouTube
WiFi 80211 abgnac (HT80) MIMO PCIeGPS GLONASS BeidouNFC Bluetoothreg v 41 (BLE ANT+)IR LED (Remote Control) USB20 MHL 30
Gesture Accelerometer Geo-magnetic Gyroscope RGB IR-LEDProximity Barometer Hall Sensor Finger Scanner UV Heart Rate Monitoring SpO2 (Dependent on market)
32 64 GB Internal memory + microSD slot (up to 128GB)3GB RAM
1513 x 824 x 83mm 174g
Standard battery Li-ion 3000 mAh Fast Charging (Adaptive Fast Charging amp QC20)
wwwthecfomecom66
APPSTECH TALK
AIR DISPLAY
SQUARE REGISTER
Using this app you can connect your iPad to your computer and use it as an additional screen While working on an important presentation or sales proposal you can extend or mirror your computer screen on your iPad This app is compatible with both Mac and Windows computers Note that to use this feature you have to install Air Display on your iPad and a separate free app on your computer The computer and iPad also need to be on the same Wi-Fi network in order to work in-sync
For Mac users the app allows you to connect to up to four screens ndash all at the same time
Apart from the ability to convert your iPad into a wireless display whatrsquos also attractive about this app is that it allows you to control your computer wirelessly using your iPad
This fantastic application can serve as a mobile point of sale for your business It allows you to accept credit card payments ndash including Visa MasterCard Discover and American Express A transaction fee of 275 is charged for every time you swipe a card The sale amount is transferred to your account within two working days
Once you download the app you can sign up and register for a unique card reader solution called the lsquoSquare Readerrsquo (this is free) Square Reader encrypts all card details and ensures that the transaction is secure Once you receive your Square Reader you can connect it to your device and are all set
The application also offers added features such as transaction history connecting to a receipt printer creating employee logins and more
AED 3699
PRICE
Free
PRICE
wwwthecfomecom 67
APPSTECH TALK
DOCUSIGNHave you ever been in a situation where your employees need you to urgently sign a contract but arenrsquot able to physically reach you in time DocuSign solves this problem with its easy-to-use eSignature feature In three easy steps you can sign important documents and securely send them to your intended recipient
First you have to import the document to your device ndash this could be from Dropbox Google Drive or another select applications You then place your signature or any other important legal information you need to include such as initials Once you have finished working on the document send it back via e-mail
Whatrsquos particularly great about DocuSign is the great emphasis it puts on security ndash so that users donrsquot have to worry about getting into any legal trouble
Use DocuSign and never miss a deadline again
Free for basic version
PRICE
MPAYAn initiative by the Dubai eGovernment Department mPay is a simple application that allows you to make important payments Once yoursquove signed up and entered your payment details you are good to go You can pay your Dubai Electricity and Water Authority (DEWA) bills Etisalat utility bills Dubai Police fines Recharge SALIK and much more
A handy feature is its lsquoauto-rechargersquo option which you can use to set automatic payments
Free
PRICE
Opinion CIMAPERSONALITIES
wwwthecfomecom68
NEW HORIZONSBy geetu Ahuja Head of gCC at CIMA
The days of the traditional accountant working within a small community in a small town in a small market have long gone CFOs are now being referred to as Chief Frontier Officers as they travel from market to market overseeing their offices overseas This new expanded role has distinct advantages for both the company and the CFO who gain new skills and new insights from foreign branches a single hand at the helm of many markets provides business perspectives on a global scale and benchmarks across the board
On a personal level working abroad also has huge importance Robert Walters the specialist professional recruitment consultancy recently conducted a survey
of almost 2200 employees across a variety of professions exploring a number of topics which ranged from working practices and attitudes to careers The results highlighted some notable trends particularly for finance professionals
In career progression for example the survey showed that 50 of all accountants see working abroad as either lsquoessentialrsquo or lsquoextremely usefulrsquo to furthering their prospects more than banking professionals lawyers and IT workers ndash a strong indication of how accounting professionals are thinking about their future either within their existing company or with opportunities elsewhere
Accountants with globally recognised qualifications obviously have a greater chance of gaining some experience abroad and the lsquoGen Yrsquo professionals in particular seem ready to pack their bags In a CIMA study conducted in the UK last year over a third of those seeking employment in the
next two years will prioritise opportunities abroad over those in their home countries many of them enticed by the career incentives offered by the Middle East
How quickly can they land what seems to be their dream job What are the realities It may be that the move is simply from one branch to another and the only significant difference is a view from the window but for those expanding rather than changing their roles we have seen a very real need for a depth and breadth of knowledge never needed before
As geographical boundaries are pushed ever-wider a CFOrsquos responsibilities are pushed with them For many finance executives the understanding of their own patch of land is no longer enough they now have to be aware of foreign markets up to speed with foreign trends and au fait with foreign laws There is a need for a new commercial awareness in geography as well as philosophy
As geographical boundaries are pushed ever-wider a CFOrsquos responsibilities are pushed with them
John vargheseQampA
wwwthecfomecom 69
BUSINESSSET UP YOUR
IN THE UNITED ARAB EMIRATES
TO
WAREHOUSESOFFICES INDUSTRIAL LANDFLEXI
Quick and easy company set-up
Less than an hour drive from Dubai
Complete cost-effective packages including licences and facilities
100 foreign ownership
Zero income and corporate taxes
Eligibility for UAE Residence Visa
BUSINESS SET-UP SOLUTIONS STARTING FROM AED 15000 (USD 4000)
RAK FREE TRADE ZONE PROVIDES
RAK Free Trade Zone Authority - Government of Ras Al KhaimahUAE (Ras Al Khaimah) Tel +971 7 2041111 (Dubai) Tel +971 4 7041875 (Abu Dhabi) Tel +971 2 6994888
Germany (Cologne) - Turkey (Istanbul) - India (Mumbai)
Call +971 7 204 1111 Visit wwwrakftzcom Join rakftz
The largest business awards
in the GCC30th November Dubai
nominate now at wwwstarsofbusinessawardscom
Stars of Business has become an iconic awards brand like no other in the region It recognizes the very best SMEs across 26 business categories Itrsquos universally respected as scientifically assessed and unimpeachably judged
327000 SMEs across the UAE$234 billion estimated total revenue of the SME sector4974 Awards entries in 20131856 Individual company applicants
Presenting Partner Strategic SME Partner Gold Sponsor Gold Sponsor VIP Hospitality Partner Supporting Partner
Trade Facilitator PartnerTrade Credit PartnerLogistics Partner
Institutional Partner Institutional Partner Event Partner
OrganiserPublisherMedia Partner Media PartnerPort Authority Partner
62
David Allen INTERVIEW
wwwthecfomecom
What went into completing your bestseller ndash Getting Things Done (GTD)After twenty years of researching developing and implementing a methodology for achieving stress-free productivity based upon
thousands of hours spent desk-side with
some of the best brightest and busiest people in the world I decided to write the manual for it Thatrsquos what Getting Things Done is
What are the five phases of mastering workflowIn order to get
any situation under control so
you can focus you will utilise these five
steps Whether yoursquore managing your kitchen
or your company you will need to collect and capture what has your attention clarify what if anything to do about it organise it according to what it means to you review and reflect upon it in relation to
Todayrsquos evolving CFO is often caught between the world of business set-up generating revenue managing employees and building strong company infrastructure When can things actually get done What can one do to boost productivity and master workflow World-renowned business coach David Allen has the answers
PRODUCTIvITy PRINCIPLES WITH
DAvID ALLEN
63
David Allen INTERVIEW
wwwthecfomecom
those are greatly subvertedHow does one maintain a fair balance between the time spent planning and actually getting things doneYou simply need to spend just the amount of time you need to to trust that what you are getting done is the right thing to be getting done in the moment It takes as long as it takes to get to that point Why would you do anything less
How can one apply your core productivity and workflow principles to todayrsquos technologically driven environmentThe principles and their techniques are system-independent Whether you have meaningful input from the Internet your smartphone or a conversation in the hall you must engage with it equally Technology has simply increased the flow of input and ease of distraction in your world
There is a lot of talk about how connected wersquove become and how connectivity is driving tremendous business growth Does connectivity actually come with its fair share of downsides
Connectivity is obviously a two-edged sword We can have intimate productive and creative interaction instantly with someone on the other side of the world and we can just as easily be distracted and seduced into those engagements when they may not be the best use of our attention and resources Donrsquot shoot the medium Itrsquos all simply bringing attention to your clarity of direction and priorities or lack thereof
Could you share a few quick tips with our readers to instantly boost productivityWrite everything down that has your attention Decide the very next actions required to get closure on all of them Any next actions that require less than two minutes do instantly Park reminders of everything else somewhere that yoursquoll see when you can do something about them
We are currently facing a massive information overload What are some basic principles you could suggest to mentally organise such large amounts of dataConstantly ask yourself Where am I going Whatrsquos important and rewarding to me Is this information
the whole and then engage your resources with intuitive trust
As a CFO how can you transfer efficient workflow management skills to your employees Itrsquos very difficult to legislate processes for individuals ndash you can really only hold them accountable for their results But if you are managing your own commitments and intersections with them with integrity and rigour it will automatically force your team to ldquostep up to the platerdquo in their own behaviours in order to meet your standards If you request their complete list of their company projects and they canrsquot produce it thatrsquos a sign theyrsquore not in control If they make a commitment to you that they havenrsquot kept thatrsquos data about their performance GTD is simply about good operational business practices
With so many planning and organising activities in your methodology is there a risk of losing spontaneity as a strategistThe reason for these best practices is to optimise freedom creativity and spontaneity Without them
ldquoBut if you are manag-ing your own com-mitments and intersec-tions with them with integrity and rigour it will automatical-ly force them to ldquostep up to the platerdquo in their own behaviours in order to meet your standardsrdquo
64 wwwthecfomecom
supporting that Park whatever you find potentially meaningful somewhere that is easy to access when needed
Being an entrepreneur is a non-stop job How do you ensure that you have an adequate work-life balance Pay attention to what has your attentionmdashwith regard to anything Your health relationships career finances etc Notice when something might be ldquooffrdquo and make good decisions about what you need to do to get it back ldquoonrdquo again
Does your work teach people to be efficient or effective In essence they are the same thing Effective choices are generated by efficiency on a higher level If you want to implement strategy most effectively it demands utilising your resources optimally which is efficiency
Does motivation actually improve quality of work or purely quantityDepends on the focus of the motivation You can be motivated to work harder and you can be motivated to work smarter
What is your favourite productivity mantra that
you implement in your day-to-day lifeUsing my own in-basket and note-taking devices to capture potentially meaningful and valuable ideas and soon afterwards clearing all of them out by deciding what to do about them if anything
Your books seminars and other work inspires many individuals and businesses Who is your personal inspiration or role model I have many about many different aspects of my life The only person though that I ultimately trust as my best guide is my higher self which I try to access as frequently and clearly as I can
Finally what advice would you give to current business owners and aspiring entrepreneurs looking to gain complete control of their life and businessCapture what has your attention clarify what you need to do about it to get it off your mind organise the inventory of all your commitments at all levels review and reflect on all of that regularly relax and trust your inner wisdom to engage with the most appropriate thing in the moment
ldquoIf you want to implement strategy most effectively it demands utilising your resources optimallyrdquo
David Allen INTERVIEW
APPSTECH TALK
wwwthecfomecom 65
mAxImISE BUSINESS lsquoON-THE-GOrsquo WITH THESE HANDy APPS
ipAd SpECIAL
SAMSUNG UNvEILS GALAxY NOTE EDGE
Network
AP
Display
OS
Camera
Video
Audio
Additional Features
GoogleMobile Services
Connectivity
Sensor
Memory
Dimension
Battery
The availability of service may differ by country All functionality features specifications and other product information provided in this document including but not limited to the benefits design pricing components performance availability and capabilities of the product are subject to change without notice or obligation
Samsung Galaxy Note Edge Product Specifications
25G (GSM GPRS EDGE) 850 900 1800 1900 MHz3G (HSPA + 42Mbps) 850 900 1900 2100 MHz4G (LTE Cat 4 15050Mbps) or 4G(LTE Cat 6 30050Mbps)May differ by country and carrier
27 GHz Quad-Core Processor
56 inch (1419mm) Quad HD+ Super AMOLED (2560 x 1440 + 160)
Android 44 (KitKat)
Rear Facing 16 Mega pixel Auto Focus camera with Smart OISFront Facing 37 Mega pixel camera with f19Rear Facing Camera HDR (Rich tone) Selective Focus Rear-cam Selfie Beauty face Virtual Tour Shot ShotampMore Dual CameraFront Facing Camera Selfie Wide Selfie
Codec H264 MPEG-4 H263 VC-1 WMV7 WMV8 Sorenson Spark MP43 VP8 Recording amp Playback up to UHD
Codec MP3 AACAAC+eAAC+ WMA AMR-NBWB Vorbis FLAC()() Ultra High Quality Audio (~192KHz 24 bit) support
Multi WindowUltra Power Saving ModeVoice Recorder (Normal Mode Interview Mode Meeting Mode Voice Memo)Download BoosterS Health 35Dynamic Lock ScreenBriefingEdge screen UX Revolving Interaction Immersive apps(Camera Video S Note)Ticker board Express me Quick Tools Night Clock etc
Chrome Drive Photos Gmail Google Google+ Google Settings Hangouts Maps Play Books Play Games Play Newsstand Play Movie amp TV Play Music Play Store Voice Search YouTube
WiFi 80211 abgnac (HT80) MIMO PCIeGPS GLONASS BeidouNFC Bluetoothreg v 41 (BLE ANT+)IR LED (Remote Control) USB20 MHL 30
Gesture Accelerometer Geo-magnetic Gyroscope RGB IR-LEDProximity Barometer Hall Sensor Finger Scanner UV Heart Rate Monitoring SpO2 (Dependent on market)
32 64 GB Internal memory + microSD slot (up to 128GB)3GB RAM
1513 x 824 x 83mm 174g
Standard battery Li-ion 3000 mAh Fast Charging (Adaptive Fast Charging amp QC20)
wwwthecfomecom66
APPSTECH TALK
AIR DISPLAY
SQUARE REGISTER
Using this app you can connect your iPad to your computer and use it as an additional screen While working on an important presentation or sales proposal you can extend or mirror your computer screen on your iPad This app is compatible with both Mac and Windows computers Note that to use this feature you have to install Air Display on your iPad and a separate free app on your computer The computer and iPad also need to be on the same Wi-Fi network in order to work in-sync
For Mac users the app allows you to connect to up to four screens ndash all at the same time
Apart from the ability to convert your iPad into a wireless display whatrsquos also attractive about this app is that it allows you to control your computer wirelessly using your iPad
This fantastic application can serve as a mobile point of sale for your business It allows you to accept credit card payments ndash including Visa MasterCard Discover and American Express A transaction fee of 275 is charged for every time you swipe a card The sale amount is transferred to your account within two working days
Once you download the app you can sign up and register for a unique card reader solution called the lsquoSquare Readerrsquo (this is free) Square Reader encrypts all card details and ensures that the transaction is secure Once you receive your Square Reader you can connect it to your device and are all set
The application also offers added features such as transaction history connecting to a receipt printer creating employee logins and more
AED 3699
PRICE
Free
PRICE
wwwthecfomecom 67
APPSTECH TALK
DOCUSIGNHave you ever been in a situation where your employees need you to urgently sign a contract but arenrsquot able to physically reach you in time DocuSign solves this problem with its easy-to-use eSignature feature In three easy steps you can sign important documents and securely send them to your intended recipient
First you have to import the document to your device ndash this could be from Dropbox Google Drive or another select applications You then place your signature or any other important legal information you need to include such as initials Once you have finished working on the document send it back via e-mail
Whatrsquos particularly great about DocuSign is the great emphasis it puts on security ndash so that users donrsquot have to worry about getting into any legal trouble
Use DocuSign and never miss a deadline again
Free for basic version
PRICE
MPAYAn initiative by the Dubai eGovernment Department mPay is a simple application that allows you to make important payments Once yoursquove signed up and entered your payment details you are good to go You can pay your Dubai Electricity and Water Authority (DEWA) bills Etisalat utility bills Dubai Police fines Recharge SALIK and much more
A handy feature is its lsquoauto-rechargersquo option which you can use to set automatic payments
Free
PRICE
Opinion CIMAPERSONALITIES
wwwthecfomecom68
NEW HORIZONSBy geetu Ahuja Head of gCC at CIMA
The days of the traditional accountant working within a small community in a small town in a small market have long gone CFOs are now being referred to as Chief Frontier Officers as they travel from market to market overseeing their offices overseas This new expanded role has distinct advantages for both the company and the CFO who gain new skills and new insights from foreign branches a single hand at the helm of many markets provides business perspectives on a global scale and benchmarks across the board
On a personal level working abroad also has huge importance Robert Walters the specialist professional recruitment consultancy recently conducted a survey
of almost 2200 employees across a variety of professions exploring a number of topics which ranged from working practices and attitudes to careers The results highlighted some notable trends particularly for finance professionals
In career progression for example the survey showed that 50 of all accountants see working abroad as either lsquoessentialrsquo or lsquoextremely usefulrsquo to furthering their prospects more than banking professionals lawyers and IT workers ndash a strong indication of how accounting professionals are thinking about their future either within their existing company or with opportunities elsewhere
Accountants with globally recognised qualifications obviously have a greater chance of gaining some experience abroad and the lsquoGen Yrsquo professionals in particular seem ready to pack their bags In a CIMA study conducted in the UK last year over a third of those seeking employment in the
next two years will prioritise opportunities abroad over those in their home countries many of them enticed by the career incentives offered by the Middle East
How quickly can they land what seems to be their dream job What are the realities It may be that the move is simply from one branch to another and the only significant difference is a view from the window but for those expanding rather than changing their roles we have seen a very real need for a depth and breadth of knowledge never needed before
As geographical boundaries are pushed ever-wider a CFOrsquos responsibilities are pushed with them For many finance executives the understanding of their own patch of land is no longer enough they now have to be aware of foreign markets up to speed with foreign trends and au fait with foreign laws There is a need for a new commercial awareness in geography as well as philosophy
As geographical boundaries are pushed ever-wider a CFOrsquos responsibilities are pushed with them
John vargheseQampA
wwwthecfomecom 69
BUSINESSSET UP YOUR
IN THE UNITED ARAB EMIRATES
TO
WAREHOUSESOFFICES INDUSTRIAL LANDFLEXI
Quick and easy company set-up
Less than an hour drive from Dubai
Complete cost-effective packages including licences and facilities
100 foreign ownership
Zero income and corporate taxes
Eligibility for UAE Residence Visa
BUSINESS SET-UP SOLUTIONS STARTING FROM AED 15000 (USD 4000)
RAK FREE TRADE ZONE PROVIDES
RAK Free Trade Zone Authority - Government of Ras Al KhaimahUAE (Ras Al Khaimah) Tel +971 7 2041111 (Dubai) Tel +971 4 7041875 (Abu Dhabi) Tel +971 2 6994888
Germany (Cologne) - Turkey (Istanbul) - India (Mumbai)
Call +971 7 204 1111 Visit wwwrakftzcom Join rakftz
62
David Allen INTERVIEW
wwwthecfomecom
What went into completing your bestseller ndash Getting Things Done (GTD)After twenty years of researching developing and implementing a methodology for achieving stress-free productivity based upon
thousands of hours spent desk-side with
some of the best brightest and busiest people in the world I decided to write the manual for it Thatrsquos what Getting Things Done is
What are the five phases of mastering workflowIn order to get
any situation under control so
you can focus you will utilise these five
steps Whether yoursquore managing your kitchen
or your company you will need to collect and capture what has your attention clarify what if anything to do about it organise it according to what it means to you review and reflect upon it in relation to
Todayrsquos evolving CFO is often caught between the world of business set-up generating revenue managing employees and building strong company infrastructure When can things actually get done What can one do to boost productivity and master workflow World-renowned business coach David Allen has the answers
PRODUCTIvITy PRINCIPLES WITH
DAvID ALLEN
63
David Allen INTERVIEW
wwwthecfomecom
those are greatly subvertedHow does one maintain a fair balance between the time spent planning and actually getting things doneYou simply need to spend just the amount of time you need to to trust that what you are getting done is the right thing to be getting done in the moment It takes as long as it takes to get to that point Why would you do anything less
How can one apply your core productivity and workflow principles to todayrsquos technologically driven environmentThe principles and their techniques are system-independent Whether you have meaningful input from the Internet your smartphone or a conversation in the hall you must engage with it equally Technology has simply increased the flow of input and ease of distraction in your world
There is a lot of talk about how connected wersquove become and how connectivity is driving tremendous business growth Does connectivity actually come with its fair share of downsides
Connectivity is obviously a two-edged sword We can have intimate productive and creative interaction instantly with someone on the other side of the world and we can just as easily be distracted and seduced into those engagements when they may not be the best use of our attention and resources Donrsquot shoot the medium Itrsquos all simply bringing attention to your clarity of direction and priorities or lack thereof
Could you share a few quick tips with our readers to instantly boost productivityWrite everything down that has your attention Decide the very next actions required to get closure on all of them Any next actions that require less than two minutes do instantly Park reminders of everything else somewhere that yoursquoll see when you can do something about them
We are currently facing a massive information overload What are some basic principles you could suggest to mentally organise such large amounts of dataConstantly ask yourself Where am I going Whatrsquos important and rewarding to me Is this information
the whole and then engage your resources with intuitive trust
As a CFO how can you transfer efficient workflow management skills to your employees Itrsquos very difficult to legislate processes for individuals ndash you can really only hold them accountable for their results But if you are managing your own commitments and intersections with them with integrity and rigour it will automatically force your team to ldquostep up to the platerdquo in their own behaviours in order to meet your standards If you request their complete list of their company projects and they canrsquot produce it thatrsquos a sign theyrsquore not in control If they make a commitment to you that they havenrsquot kept thatrsquos data about their performance GTD is simply about good operational business practices
With so many planning and organising activities in your methodology is there a risk of losing spontaneity as a strategistThe reason for these best practices is to optimise freedom creativity and spontaneity Without them
ldquoBut if you are manag-ing your own com-mitments and intersec-tions with them with integrity and rigour it will automatical-ly force them to ldquostep up to the platerdquo in their own behaviours in order to meet your standardsrdquo
64 wwwthecfomecom
supporting that Park whatever you find potentially meaningful somewhere that is easy to access when needed
Being an entrepreneur is a non-stop job How do you ensure that you have an adequate work-life balance Pay attention to what has your attentionmdashwith regard to anything Your health relationships career finances etc Notice when something might be ldquooffrdquo and make good decisions about what you need to do to get it back ldquoonrdquo again
Does your work teach people to be efficient or effective In essence they are the same thing Effective choices are generated by efficiency on a higher level If you want to implement strategy most effectively it demands utilising your resources optimally which is efficiency
Does motivation actually improve quality of work or purely quantityDepends on the focus of the motivation You can be motivated to work harder and you can be motivated to work smarter
What is your favourite productivity mantra that
you implement in your day-to-day lifeUsing my own in-basket and note-taking devices to capture potentially meaningful and valuable ideas and soon afterwards clearing all of them out by deciding what to do about them if anything
Your books seminars and other work inspires many individuals and businesses Who is your personal inspiration or role model I have many about many different aspects of my life The only person though that I ultimately trust as my best guide is my higher self which I try to access as frequently and clearly as I can
Finally what advice would you give to current business owners and aspiring entrepreneurs looking to gain complete control of their life and businessCapture what has your attention clarify what you need to do about it to get it off your mind organise the inventory of all your commitments at all levels review and reflect on all of that regularly relax and trust your inner wisdom to engage with the most appropriate thing in the moment
ldquoIf you want to implement strategy most effectively it demands utilising your resources optimallyrdquo
David Allen INTERVIEW
APPSTECH TALK
wwwthecfomecom 65
mAxImISE BUSINESS lsquoON-THE-GOrsquo WITH THESE HANDy APPS
ipAd SpECIAL
SAMSUNG UNvEILS GALAxY NOTE EDGE
Network
AP
Display
OS
Camera
Video
Audio
Additional Features
GoogleMobile Services
Connectivity
Sensor
Memory
Dimension
Battery
The availability of service may differ by country All functionality features specifications and other product information provided in this document including but not limited to the benefits design pricing components performance availability and capabilities of the product are subject to change without notice or obligation
Samsung Galaxy Note Edge Product Specifications
25G (GSM GPRS EDGE) 850 900 1800 1900 MHz3G (HSPA + 42Mbps) 850 900 1900 2100 MHz4G (LTE Cat 4 15050Mbps) or 4G(LTE Cat 6 30050Mbps)May differ by country and carrier
27 GHz Quad-Core Processor
56 inch (1419mm) Quad HD+ Super AMOLED (2560 x 1440 + 160)
Android 44 (KitKat)
Rear Facing 16 Mega pixel Auto Focus camera with Smart OISFront Facing 37 Mega pixel camera with f19Rear Facing Camera HDR (Rich tone) Selective Focus Rear-cam Selfie Beauty face Virtual Tour Shot ShotampMore Dual CameraFront Facing Camera Selfie Wide Selfie
Codec H264 MPEG-4 H263 VC-1 WMV7 WMV8 Sorenson Spark MP43 VP8 Recording amp Playback up to UHD
Codec MP3 AACAAC+eAAC+ WMA AMR-NBWB Vorbis FLAC()() Ultra High Quality Audio (~192KHz 24 bit) support
Multi WindowUltra Power Saving ModeVoice Recorder (Normal Mode Interview Mode Meeting Mode Voice Memo)Download BoosterS Health 35Dynamic Lock ScreenBriefingEdge screen UX Revolving Interaction Immersive apps(Camera Video S Note)Ticker board Express me Quick Tools Night Clock etc
Chrome Drive Photos Gmail Google Google+ Google Settings Hangouts Maps Play Books Play Games Play Newsstand Play Movie amp TV Play Music Play Store Voice Search YouTube
WiFi 80211 abgnac (HT80) MIMO PCIeGPS GLONASS BeidouNFC Bluetoothreg v 41 (BLE ANT+)IR LED (Remote Control) USB20 MHL 30
Gesture Accelerometer Geo-magnetic Gyroscope RGB IR-LEDProximity Barometer Hall Sensor Finger Scanner UV Heart Rate Monitoring SpO2 (Dependent on market)
32 64 GB Internal memory + microSD slot (up to 128GB)3GB RAM
1513 x 824 x 83mm 174g
Standard battery Li-ion 3000 mAh Fast Charging (Adaptive Fast Charging amp QC20)
wwwthecfomecom66
APPSTECH TALK
AIR DISPLAY
SQUARE REGISTER
Using this app you can connect your iPad to your computer and use it as an additional screen While working on an important presentation or sales proposal you can extend or mirror your computer screen on your iPad This app is compatible with both Mac and Windows computers Note that to use this feature you have to install Air Display on your iPad and a separate free app on your computer The computer and iPad also need to be on the same Wi-Fi network in order to work in-sync
For Mac users the app allows you to connect to up to four screens ndash all at the same time
Apart from the ability to convert your iPad into a wireless display whatrsquos also attractive about this app is that it allows you to control your computer wirelessly using your iPad
This fantastic application can serve as a mobile point of sale for your business It allows you to accept credit card payments ndash including Visa MasterCard Discover and American Express A transaction fee of 275 is charged for every time you swipe a card The sale amount is transferred to your account within two working days
Once you download the app you can sign up and register for a unique card reader solution called the lsquoSquare Readerrsquo (this is free) Square Reader encrypts all card details and ensures that the transaction is secure Once you receive your Square Reader you can connect it to your device and are all set
The application also offers added features such as transaction history connecting to a receipt printer creating employee logins and more
AED 3699
PRICE
Free
PRICE
wwwthecfomecom 67
APPSTECH TALK
DOCUSIGNHave you ever been in a situation where your employees need you to urgently sign a contract but arenrsquot able to physically reach you in time DocuSign solves this problem with its easy-to-use eSignature feature In three easy steps you can sign important documents and securely send them to your intended recipient
First you have to import the document to your device ndash this could be from Dropbox Google Drive or another select applications You then place your signature or any other important legal information you need to include such as initials Once you have finished working on the document send it back via e-mail
Whatrsquos particularly great about DocuSign is the great emphasis it puts on security ndash so that users donrsquot have to worry about getting into any legal trouble
Use DocuSign and never miss a deadline again
Free for basic version
PRICE
MPAYAn initiative by the Dubai eGovernment Department mPay is a simple application that allows you to make important payments Once yoursquove signed up and entered your payment details you are good to go You can pay your Dubai Electricity and Water Authority (DEWA) bills Etisalat utility bills Dubai Police fines Recharge SALIK and much more
A handy feature is its lsquoauto-rechargersquo option which you can use to set automatic payments
Free
PRICE
Opinion CIMAPERSONALITIES
wwwthecfomecom68
NEW HORIZONSBy geetu Ahuja Head of gCC at CIMA
The days of the traditional accountant working within a small community in a small town in a small market have long gone CFOs are now being referred to as Chief Frontier Officers as they travel from market to market overseeing their offices overseas This new expanded role has distinct advantages for both the company and the CFO who gain new skills and new insights from foreign branches a single hand at the helm of many markets provides business perspectives on a global scale and benchmarks across the board
On a personal level working abroad also has huge importance Robert Walters the specialist professional recruitment consultancy recently conducted a survey
of almost 2200 employees across a variety of professions exploring a number of topics which ranged from working practices and attitudes to careers The results highlighted some notable trends particularly for finance professionals
In career progression for example the survey showed that 50 of all accountants see working abroad as either lsquoessentialrsquo or lsquoextremely usefulrsquo to furthering their prospects more than banking professionals lawyers and IT workers ndash a strong indication of how accounting professionals are thinking about their future either within their existing company or with opportunities elsewhere
Accountants with globally recognised qualifications obviously have a greater chance of gaining some experience abroad and the lsquoGen Yrsquo professionals in particular seem ready to pack their bags In a CIMA study conducted in the UK last year over a third of those seeking employment in the
next two years will prioritise opportunities abroad over those in their home countries many of them enticed by the career incentives offered by the Middle East
How quickly can they land what seems to be their dream job What are the realities It may be that the move is simply from one branch to another and the only significant difference is a view from the window but for those expanding rather than changing their roles we have seen a very real need for a depth and breadth of knowledge never needed before
As geographical boundaries are pushed ever-wider a CFOrsquos responsibilities are pushed with them For many finance executives the understanding of their own patch of land is no longer enough they now have to be aware of foreign markets up to speed with foreign trends and au fait with foreign laws There is a need for a new commercial awareness in geography as well as philosophy
As geographical boundaries are pushed ever-wider a CFOrsquos responsibilities are pushed with them
John vargheseQampA
wwwthecfomecom 69
BUSINESSSET UP YOUR
IN THE UNITED ARAB EMIRATES
TO
WAREHOUSESOFFICES INDUSTRIAL LANDFLEXI
Quick and easy company set-up
Less than an hour drive from Dubai
Complete cost-effective packages including licences and facilities
100 foreign ownership
Zero income and corporate taxes
Eligibility for UAE Residence Visa
BUSINESS SET-UP SOLUTIONS STARTING FROM AED 15000 (USD 4000)
RAK FREE TRADE ZONE PROVIDES
RAK Free Trade Zone Authority - Government of Ras Al KhaimahUAE (Ras Al Khaimah) Tel +971 7 2041111 (Dubai) Tel +971 4 7041875 (Abu Dhabi) Tel +971 2 6994888
Germany (Cologne) - Turkey (Istanbul) - India (Mumbai)
Call +971 7 204 1111 Visit wwwrakftzcom Join rakftz
63
David Allen INTERVIEW
wwwthecfomecom
those are greatly subvertedHow does one maintain a fair balance between the time spent planning and actually getting things doneYou simply need to spend just the amount of time you need to to trust that what you are getting done is the right thing to be getting done in the moment It takes as long as it takes to get to that point Why would you do anything less
How can one apply your core productivity and workflow principles to todayrsquos technologically driven environmentThe principles and their techniques are system-independent Whether you have meaningful input from the Internet your smartphone or a conversation in the hall you must engage with it equally Technology has simply increased the flow of input and ease of distraction in your world
There is a lot of talk about how connected wersquove become and how connectivity is driving tremendous business growth Does connectivity actually come with its fair share of downsides
Connectivity is obviously a two-edged sword We can have intimate productive and creative interaction instantly with someone on the other side of the world and we can just as easily be distracted and seduced into those engagements when they may not be the best use of our attention and resources Donrsquot shoot the medium Itrsquos all simply bringing attention to your clarity of direction and priorities or lack thereof
Could you share a few quick tips with our readers to instantly boost productivityWrite everything down that has your attention Decide the very next actions required to get closure on all of them Any next actions that require less than two minutes do instantly Park reminders of everything else somewhere that yoursquoll see when you can do something about them
We are currently facing a massive information overload What are some basic principles you could suggest to mentally organise such large amounts of dataConstantly ask yourself Where am I going Whatrsquos important and rewarding to me Is this information
the whole and then engage your resources with intuitive trust
As a CFO how can you transfer efficient workflow management skills to your employees Itrsquos very difficult to legislate processes for individuals ndash you can really only hold them accountable for their results But if you are managing your own commitments and intersections with them with integrity and rigour it will automatically force your team to ldquostep up to the platerdquo in their own behaviours in order to meet your standards If you request their complete list of their company projects and they canrsquot produce it thatrsquos a sign theyrsquore not in control If they make a commitment to you that they havenrsquot kept thatrsquos data about their performance GTD is simply about good operational business practices
With so many planning and organising activities in your methodology is there a risk of losing spontaneity as a strategistThe reason for these best practices is to optimise freedom creativity and spontaneity Without them
ldquoBut if you are manag-ing your own com-mitments and intersec-tions with them with integrity and rigour it will automatical-ly force them to ldquostep up to the platerdquo in their own behaviours in order to meet your standardsrdquo
64 wwwthecfomecom
supporting that Park whatever you find potentially meaningful somewhere that is easy to access when needed
Being an entrepreneur is a non-stop job How do you ensure that you have an adequate work-life balance Pay attention to what has your attentionmdashwith regard to anything Your health relationships career finances etc Notice when something might be ldquooffrdquo and make good decisions about what you need to do to get it back ldquoonrdquo again
Does your work teach people to be efficient or effective In essence they are the same thing Effective choices are generated by efficiency on a higher level If you want to implement strategy most effectively it demands utilising your resources optimally which is efficiency
Does motivation actually improve quality of work or purely quantityDepends on the focus of the motivation You can be motivated to work harder and you can be motivated to work smarter
What is your favourite productivity mantra that
you implement in your day-to-day lifeUsing my own in-basket and note-taking devices to capture potentially meaningful and valuable ideas and soon afterwards clearing all of them out by deciding what to do about them if anything
Your books seminars and other work inspires many individuals and businesses Who is your personal inspiration or role model I have many about many different aspects of my life The only person though that I ultimately trust as my best guide is my higher self which I try to access as frequently and clearly as I can
Finally what advice would you give to current business owners and aspiring entrepreneurs looking to gain complete control of their life and businessCapture what has your attention clarify what you need to do about it to get it off your mind organise the inventory of all your commitments at all levels review and reflect on all of that regularly relax and trust your inner wisdom to engage with the most appropriate thing in the moment
ldquoIf you want to implement strategy most effectively it demands utilising your resources optimallyrdquo
David Allen INTERVIEW
APPSTECH TALK
wwwthecfomecom 65
mAxImISE BUSINESS lsquoON-THE-GOrsquo WITH THESE HANDy APPS
ipAd SpECIAL
SAMSUNG UNvEILS GALAxY NOTE EDGE
Network
AP
Display
OS
Camera
Video
Audio
Additional Features
GoogleMobile Services
Connectivity
Sensor
Memory
Dimension
Battery
The availability of service may differ by country All functionality features specifications and other product information provided in this document including but not limited to the benefits design pricing components performance availability and capabilities of the product are subject to change without notice or obligation
Samsung Galaxy Note Edge Product Specifications
25G (GSM GPRS EDGE) 850 900 1800 1900 MHz3G (HSPA + 42Mbps) 850 900 1900 2100 MHz4G (LTE Cat 4 15050Mbps) or 4G(LTE Cat 6 30050Mbps)May differ by country and carrier
27 GHz Quad-Core Processor
56 inch (1419mm) Quad HD+ Super AMOLED (2560 x 1440 + 160)
Android 44 (KitKat)
Rear Facing 16 Mega pixel Auto Focus camera with Smart OISFront Facing 37 Mega pixel camera with f19Rear Facing Camera HDR (Rich tone) Selective Focus Rear-cam Selfie Beauty face Virtual Tour Shot ShotampMore Dual CameraFront Facing Camera Selfie Wide Selfie
Codec H264 MPEG-4 H263 VC-1 WMV7 WMV8 Sorenson Spark MP43 VP8 Recording amp Playback up to UHD
Codec MP3 AACAAC+eAAC+ WMA AMR-NBWB Vorbis FLAC()() Ultra High Quality Audio (~192KHz 24 bit) support
Multi WindowUltra Power Saving ModeVoice Recorder (Normal Mode Interview Mode Meeting Mode Voice Memo)Download BoosterS Health 35Dynamic Lock ScreenBriefingEdge screen UX Revolving Interaction Immersive apps(Camera Video S Note)Ticker board Express me Quick Tools Night Clock etc
Chrome Drive Photos Gmail Google Google+ Google Settings Hangouts Maps Play Books Play Games Play Newsstand Play Movie amp TV Play Music Play Store Voice Search YouTube
WiFi 80211 abgnac (HT80) MIMO PCIeGPS GLONASS BeidouNFC Bluetoothreg v 41 (BLE ANT+)IR LED (Remote Control) USB20 MHL 30
Gesture Accelerometer Geo-magnetic Gyroscope RGB IR-LEDProximity Barometer Hall Sensor Finger Scanner UV Heart Rate Monitoring SpO2 (Dependent on market)
32 64 GB Internal memory + microSD slot (up to 128GB)3GB RAM
1513 x 824 x 83mm 174g
Standard battery Li-ion 3000 mAh Fast Charging (Adaptive Fast Charging amp QC20)
wwwthecfomecom66
APPSTECH TALK
AIR DISPLAY
SQUARE REGISTER
Using this app you can connect your iPad to your computer and use it as an additional screen While working on an important presentation or sales proposal you can extend or mirror your computer screen on your iPad This app is compatible with both Mac and Windows computers Note that to use this feature you have to install Air Display on your iPad and a separate free app on your computer The computer and iPad also need to be on the same Wi-Fi network in order to work in-sync
For Mac users the app allows you to connect to up to four screens ndash all at the same time
Apart from the ability to convert your iPad into a wireless display whatrsquos also attractive about this app is that it allows you to control your computer wirelessly using your iPad
This fantastic application can serve as a mobile point of sale for your business It allows you to accept credit card payments ndash including Visa MasterCard Discover and American Express A transaction fee of 275 is charged for every time you swipe a card The sale amount is transferred to your account within two working days
Once you download the app you can sign up and register for a unique card reader solution called the lsquoSquare Readerrsquo (this is free) Square Reader encrypts all card details and ensures that the transaction is secure Once you receive your Square Reader you can connect it to your device and are all set
The application also offers added features such as transaction history connecting to a receipt printer creating employee logins and more
AED 3699
PRICE
Free
PRICE
wwwthecfomecom 67
APPSTECH TALK
DOCUSIGNHave you ever been in a situation where your employees need you to urgently sign a contract but arenrsquot able to physically reach you in time DocuSign solves this problem with its easy-to-use eSignature feature In three easy steps you can sign important documents and securely send them to your intended recipient
First you have to import the document to your device ndash this could be from Dropbox Google Drive or another select applications You then place your signature or any other important legal information you need to include such as initials Once you have finished working on the document send it back via e-mail
Whatrsquos particularly great about DocuSign is the great emphasis it puts on security ndash so that users donrsquot have to worry about getting into any legal trouble
Use DocuSign and never miss a deadline again
Free for basic version
PRICE
MPAYAn initiative by the Dubai eGovernment Department mPay is a simple application that allows you to make important payments Once yoursquove signed up and entered your payment details you are good to go You can pay your Dubai Electricity and Water Authority (DEWA) bills Etisalat utility bills Dubai Police fines Recharge SALIK and much more
A handy feature is its lsquoauto-rechargersquo option which you can use to set automatic payments
Free
PRICE
Opinion CIMAPERSONALITIES
wwwthecfomecom68
NEW HORIZONSBy geetu Ahuja Head of gCC at CIMA
The days of the traditional accountant working within a small community in a small town in a small market have long gone CFOs are now being referred to as Chief Frontier Officers as they travel from market to market overseeing their offices overseas This new expanded role has distinct advantages for both the company and the CFO who gain new skills and new insights from foreign branches a single hand at the helm of many markets provides business perspectives on a global scale and benchmarks across the board
On a personal level working abroad also has huge importance Robert Walters the specialist professional recruitment consultancy recently conducted a survey
of almost 2200 employees across a variety of professions exploring a number of topics which ranged from working practices and attitudes to careers The results highlighted some notable trends particularly for finance professionals
In career progression for example the survey showed that 50 of all accountants see working abroad as either lsquoessentialrsquo or lsquoextremely usefulrsquo to furthering their prospects more than banking professionals lawyers and IT workers ndash a strong indication of how accounting professionals are thinking about their future either within their existing company or with opportunities elsewhere
Accountants with globally recognised qualifications obviously have a greater chance of gaining some experience abroad and the lsquoGen Yrsquo professionals in particular seem ready to pack their bags In a CIMA study conducted in the UK last year over a third of those seeking employment in the
next two years will prioritise opportunities abroad over those in their home countries many of them enticed by the career incentives offered by the Middle East
How quickly can they land what seems to be their dream job What are the realities It may be that the move is simply from one branch to another and the only significant difference is a view from the window but for those expanding rather than changing their roles we have seen a very real need for a depth and breadth of knowledge never needed before
As geographical boundaries are pushed ever-wider a CFOrsquos responsibilities are pushed with them For many finance executives the understanding of their own patch of land is no longer enough they now have to be aware of foreign markets up to speed with foreign trends and au fait with foreign laws There is a need for a new commercial awareness in geography as well as philosophy
As geographical boundaries are pushed ever-wider a CFOrsquos responsibilities are pushed with them
John vargheseQampA
wwwthecfomecom 69
BUSINESSSET UP YOUR
IN THE UNITED ARAB EMIRATES
TO
WAREHOUSESOFFICES INDUSTRIAL LANDFLEXI
Quick and easy company set-up
Less than an hour drive from Dubai
Complete cost-effective packages including licences and facilities
100 foreign ownership
Zero income and corporate taxes
Eligibility for UAE Residence Visa
BUSINESS SET-UP SOLUTIONS STARTING FROM AED 15000 (USD 4000)
RAK FREE TRADE ZONE PROVIDES
RAK Free Trade Zone Authority - Government of Ras Al KhaimahUAE (Ras Al Khaimah) Tel +971 7 2041111 (Dubai) Tel +971 4 7041875 (Abu Dhabi) Tel +971 2 6994888
Germany (Cologne) - Turkey (Istanbul) - India (Mumbai)
Call +971 7 204 1111 Visit wwwrakftzcom Join rakftz
64 wwwthecfomecom
supporting that Park whatever you find potentially meaningful somewhere that is easy to access when needed
Being an entrepreneur is a non-stop job How do you ensure that you have an adequate work-life balance Pay attention to what has your attentionmdashwith regard to anything Your health relationships career finances etc Notice when something might be ldquooffrdquo and make good decisions about what you need to do to get it back ldquoonrdquo again
Does your work teach people to be efficient or effective In essence they are the same thing Effective choices are generated by efficiency on a higher level If you want to implement strategy most effectively it demands utilising your resources optimally which is efficiency
Does motivation actually improve quality of work or purely quantityDepends on the focus of the motivation You can be motivated to work harder and you can be motivated to work smarter
What is your favourite productivity mantra that
you implement in your day-to-day lifeUsing my own in-basket and note-taking devices to capture potentially meaningful and valuable ideas and soon afterwards clearing all of them out by deciding what to do about them if anything
Your books seminars and other work inspires many individuals and businesses Who is your personal inspiration or role model I have many about many different aspects of my life The only person though that I ultimately trust as my best guide is my higher self which I try to access as frequently and clearly as I can
Finally what advice would you give to current business owners and aspiring entrepreneurs looking to gain complete control of their life and businessCapture what has your attention clarify what you need to do about it to get it off your mind organise the inventory of all your commitments at all levels review and reflect on all of that regularly relax and trust your inner wisdom to engage with the most appropriate thing in the moment
ldquoIf you want to implement strategy most effectively it demands utilising your resources optimallyrdquo
David Allen INTERVIEW
APPSTECH TALK
wwwthecfomecom 65
mAxImISE BUSINESS lsquoON-THE-GOrsquo WITH THESE HANDy APPS
ipAd SpECIAL
SAMSUNG UNvEILS GALAxY NOTE EDGE
Network
AP
Display
OS
Camera
Video
Audio
Additional Features
GoogleMobile Services
Connectivity
Sensor
Memory
Dimension
Battery
The availability of service may differ by country All functionality features specifications and other product information provided in this document including but not limited to the benefits design pricing components performance availability and capabilities of the product are subject to change without notice or obligation
Samsung Galaxy Note Edge Product Specifications
25G (GSM GPRS EDGE) 850 900 1800 1900 MHz3G (HSPA + 42Mbps) 850 900 1900 2100 MHz4G (LTE Cat 4 15050Mbps) or 4G(LTE Cat 6 30050Mbps)May differ by country and carrier
27 GHz Quad-Core Processor
56 inch (1419mm) Quad HD+ Super AMOLED (2560 x 1440 + 160)
Android 44 (KitKat)
Rear Facing 16 Mega pixel Auto Focus camera with Smart OISFront Facing 37 Mega pixel camera with f19Rear Facing Camera HDR (Rich tone) Selective Focus Rear-cam Selfie Beauty face Virtual Tour Shot ShotampMore Dual CameraFront Facing Camera Selfie Wide Selfie
Codec H264 MPEG-4 H263 VC-1 WMV7 WMV8 Sorenson Spark MP43 VP8 Recording amp Playback up to UHD
Codec MP3 AACAAC+eAAC+ WMA AMR-NBWB Vorbis FLAC()() Ultra High Quality Audio (~192KHz 24 bit) support
Multi WindowUltra Power Saving ModeVoice Recorder (Normal Mode Interview Mode Meeting Mode Voice Memo)Download BoosterS Health 35Dynamic Lock ScreenBriefingEdge screen UX Revolving Interaction Immersive apps(Camera Video S Note)Ticker board Express me Quick Tools Night Clock etc
Chrome Drive Photos Gmail Google Google+ Google Settings Hangouts Maps Play Books Play Games Play Newsstand Play Movie amp TV Play Music Play Store Voice Search YouTube
WiFi 80211 abgnac (HT80) MIMO PCIeGPS GLONASS BeidouNFC Bluetoothreg v 41 (BLE ANT+)IR LED (Remote Control) USB20 MHL 30
Gesture Accelerometer Geo-magnetic Gyroscope RGB IR-LEDProximity Barometer Hall Sensor Finger Scanner UV Heart Rate Monitoring SpO2 (Dependent on market)
32 64 GB Internal memory + microSD slot (up to 128GB)3GB RAM
1513 x 824 x 83mm 174g
Standard battery Li-ion 3000 mAh Fast Charging (Adaptive Fast Charging amp QC20)
wwwthecfomecom66
APPSTECH TALK
AIR DISPLAY
SQUARE REGISTER
Using this app you can connect your iPad to your computer and use it as an additional screen While working on an important presentation or sales proposal you can extend or mirror your computer screen on your iPad This app is compatible with both Mac and Windows computers Note that to use this feature you have to install Air Display on your iPad and a separate free app on your computer The computer and iPad also need to be on the same Wi-Fi network in order to work in-sync
For Mac users the app allows you to connect to up to four screens ndash all at the same time
Apart from the ability to convert your iPad into a wireless display whatrsquos also attractive about this app is that it allows you to control your computer wirelessly using your iPad
This fantastic application can serve as a mobile point of sale for your business It allows you to accept credit card payments ndash including Visa MasterCard Discover and American Express A transaction fee of 275 is charged for every time you swipe a card The sale amount is transferred to your account within two working days
Once you download the app you can sign up and register for a unique card reader solution called the lsquoSquare Readerrsquo (this is free) Square Reader encrypts all card details and ensures that the transaction is secure Once you receive your Square Reader you can connect it to your device and are all set
The application also offers added features such as transaction history connecting to a receipt printer creating employee logins and more
AED 3699
PRICE
Free
PRICE
wwwthecfomecom 67
APPSTECH TALK
DOCUSIGNHave you ever been in a situation where your employees need you to urgently sign a contract but arenrsquot able to physically reach you in time DocuSign solves this problem with its easy-to-use eSignature feature In three easy steps you can sign important documents and securely send them to your intended recipient
First you have to import the document to your device ndash this could be from Dropbox Google Drive or another select applications You then place your signature or any other important legal information you need to include such as initials Once you have finished working on the document send it back via e-mail
Whatrsquos particularly great about DocuSign is the great emphasis it puts on security ndash so that users donrsquot have to worry about getting into any legal trouble
Use DocuSign and never miss a deadline again
Free for basic version
PRICE
MPAYAn initiative by the Dubai eGovernment Department mPay is a simple application that allows you to make important payments Once yoursquove signed up and entered your payment details you are good to go You can pay your Dubai Electricity and Water Authority (DEWA) bills Etisalat utility bills Dubai Police fines Recharge SALIK and much more
A handy feature is its lsquoauto-rechargersquo option which you can use to set automatic payments
Free
PRICE
Opinion CIMAPERSONALITIES
wwwthecfomecom68
NEW HORIZONSBy geetu Ahuja Head of gCC at CIMA
The days of the traditional accountant working within a small community in a small town in a small market have long gone CFOs are now being referred to as Chief Frontier Officers as they travel from market to market overseeing their offices overseas This new expanded role has distinct advantages for both the company and the CFO who gain new skills and new insights from foreign branches a single hand at the helm of many markets provides business perspectives on a global scale and benchmarks across the board
On a personal level working abroad also has huge importance Robert Walters the specialist professional recruitment consultancy recently conducted a survey
of almost 2200 employees across a variety of professions exploring a number of topics which ranged from working practices and attitudes to careers The results highlighted some notable trends particularly for finance professionals
In career progression for example the survey showed that 50 of all accountants see working abroad as either lsquoessentialrsquo or lsquoextremely usefulrsquo to furthering their prospects more than banking professionals lawyers and IT workers ndash a strong indication of how accounting professionals are thinking about their future either within their existing company or with opportunities elsewhere
Accountants with globally recognised qualifications obviously have a greater chance of gaining some experience abroad and the lsquoGen Yrsquo professionals in particular seem ready to pack their bags In a CIMA study conducted in the UK last year over a third of those seeking employment in the
next two years will prioritise opportunities abroad over those in their home countries many of them enticed by the career incentives offered by the Middle East
How quickly can they land what seems to be their dream job What are the realities It may be that the move is simply from one branch to another and the only significant difference is a view from the window but for those expanding rather than changing their roles we have seen a very real need for a depth and breadth of knowledge never needed before
As geographical boundaries are pushed ever-wider a CFOrsquos responsibilities are pushed with them For many finance executives the understanding of their own patch of land is no longer enough they now have to be aware of foreign markets up to speed with foreign trends and au fait with foreign laws There is a need for a new commercial awareness in geography as well as philosophy
As geographical boundaries are pushed ever-wider a CFOrsquos responsibilities are pushed with them
John vargheseQampA
wwwthecfomecom 69
BUSINESSSET UP YOUR
IN THE UNITED ARAB EMIRATES
TO
WAREHOUSESOFFICES INDUSTRIAL LANDFLEXI
Quick and easy company set-up
Less than an hour drive from Dubai
Complete cost-effective packages including licences and facilities
100 foreign ownership
Zero income and corporate taxes
Eligibility for UAE Residence Visa
BUSINESS SET-UP SOLUTIONS STARTING FROM AED 15000 (USD 4000)
RAK FREE TRADE ZONE PROVIDES
RAK Free Trade Zone Authority - Government of Ras Al KhaimahUAE (Ras Al Khaimah) Tel +971 7 2041111 (Dubai) Tel +971 4 7041875 (Abu Dhabi) Tel +971 2 6994888
Germany (Cologne) - Turkey (Istanbul) - India (Mumbai)
Call +971 7 204 1111 Visit wwwrakftzcom Join rakftz
APPSTECH TALK
wwwthecfomecom 65
mAxImISE BUSINESS lsquoON-THE-GOrsquo WITH THESE HANDy APPS
ipAd SpECIAL
SAMSUNG UNvEILS GALAxY NOTE EDGE
Network
AP
Display
OS
Camera
Video
Audio
Additional Features
GoogleMobile Services
Connectivity
Sensor
Memory
Dimension
Battery
The availability of service may differ by country All functionality features specifications and other product information provided in this document including but not limited to the benefits design pricing components performance availability and capabilities of the product are subject to change without notice or obligation
Samsung Galaxy Note Edge Product Specifications
25G (GSM GPRS EDGE) 850 900 1800 1900 MHz3G (HSPA + 42Mbps) 850 900 1900 2100 MHz4G (LTE Cat 4 15050Mbps) or 4G(LTE Cat 6 30050Mbps)May differ by country and carrier
27 GHz Quad-Core Processor
56 inch (1419mm) Quad HD+ Super AMOLED (2560 x 1440 + 160)
Android 44 (KitKat)
Rear Facing 16 Mega pixel Auto Focus camera with Smart OISFront Facing 37 Mega pixel camera with f19Rear Facing Camera HDR (Rich tone) Selective Focus Rear-cam Selfie Beauty face Virtual Tour Shot ShotampMore Dual CameraFront Facing Camera Selfie Wide Selfie
Codec H264 MPEG-4 H263 VC-1 WMV7 WMV8 Sorenson Spark MP43 VP8 Recording amp Playback up to UHD
Codec MP3 AACAAC+eAAC+ WMA AMR-NBWB Vorbis FLAC()() Ultra High Quality Audio (~192KHz 24 bit) support
Multi WindowUltra Power Saving ModeVoice Recorder (Normal Mode Interview Mode Meeting Mode Voice Memo)Download BoosterS Health 35Dynamic Lock ScreenBriefingEdge screen UX Revolving Interaction Immersive apps(Camera Video S Note)Ticker board Express me Quick Tools Night Clock etc
Chrome Drive Photos Gmail Google Google+ Google Settings Hangouts Maps Play Books Play Games Play Newsstand Play Movie amp TV Play Music Play Store Voice Search YouTube
WiFi 80211 abgnac (HT80) MIMO PCIeGPS GLONASS BeidouNFC Bluetoothreg v 41 (BLE ANT+)IR LED (Remote Control) USB20 MHL 30
Gesture Accelerometer Geo-magnetic Gyroscope RGB IR-LEDProximity Barometer Hall Sensor Finger Scanner UV Heart Rate Monitoring SpO2 (Dependent on market)
32 64 GB Internal memory + microSD slot (up to 128GB)3GB RAM
1513 x 824 x 83mm 174g
Standard battery Li-ion 3000 mAh Fast Charging (Adaptive Fast Charging amp QC20)
wwwthecfomecom66
APPSTECH TALK
AIR DISPLAY
SQUARE REGISTER
Using this app you can connect your iPad to your computer and use it as an additional screen While working on an important presentation or sales proposal you can extend or mirror your computer screen on your iPad This app is compatible with both Mac and Windows computers Note that to use this feature you have to install Air Display on your iPad and a separate free app on your computer The computer and iPad also need to be on the same Wi-Fi network in order to work in-sync
For Mac users the app allows you to connect to up to four screens ndash all at the same time
Apart from the ability to convert your iPad into a wireless display whatrsquos also attractive about this app is that it allows you to control your computer wirelessly using your iPad
This fantastic application can serve as a mobile point of sale for your business It allows you to accept credit card payments ndash including Visa MasterCard Discover and American Express A transaction fee of 275 is charged for every time you swipe a card The sale amount is transferred to your account within two working days
Once you download the app you can sign up and register for a unique card reader solution called the lsquoSquare Readerrsquo (this is free) Square Reader encrypts all card details and ensures that the transaction is secure Once you receive your Square Reader you can connect it to your device and are all set
The application also offers added features such as transaction history connecting to a receipt printer creating employee logins and more
AED 3699
PRICE
Free
PRICE
wwwthecfomecom 67
APPSTECH TALK
DOCUSIGNHave you ever been in a situation where your employees need you to urgently sign a contract but arenrsquot able to physically reach you in time DocuSign solves this problem with its easy-to-use eSignature feature In three easy steps you can sign important documents and securely send them to your intended recipient
First you have to import the document to your device ndash this could be from Dropbox Google Drive or another select applications You then place your signature or any other important legal information you need to include such as initials Once you have finished working on the document send it back via e-mail
Whatrsquos particularly great about DocuSign is the great emphasis it puts on security ndash so that users donrsquot have to worry about getting into any legal trouble
Use DocuSign and never miss a deadline again
Free for basic version
PRICE
MPAYAn initiative by the Dubai eGovernment Department mPay is a simple application that allows you to make important payments Once yoursquove signed up and entered your payment details you are good to go You can pay your Dubai Electricity and Water Authority (DEWA) bills Etisalat utility bills Dubai Police fines Recharge SALIK and much more
A handy feature is its lsquoauto-rechargersquo option which you can use to set automatic payments
Free
PRICE
Opinion CIMAPERSONALITIES
wwwthecfomecom68
NEW HORIZONSBy geetu Ahuja Head of gCC at CIMA
The days of the traditional accountant working within a small community in a small town in a small market have long gone CFOs are now being referred to as Chief Frontier Officers as they travel from market to market overseeing their offices overseas This new expanded role has distinct advantages for both the company and the CFO who gain new skills and new insights from foreign branches a single hand at the helm of many markets provides business perspectives on a global scale and benchmarks across the board
On a personal level working abroad also has huge importance Robert Walters the specialist professional recruitment consultancy recently conducted a survey
of almost 2200 employees across a variety of professions exploring a number of topics which ranged from working practices and attitudes to careers The results highlighted some notable trends particularly for finance professionals
In career progression for example the survey showed that 50 of all accountants see working abroad as either lsquoessentialrsquo or lsquoextremely usefulrsquo to furthering their prospects more than banking professionals lawyers and IT workers ndash a strong indication of how accounting professionals are thinking about their future either within their existing company or with opportunities elsewhere
Accountants with globally recognised qualifications obviously have a greater chance of gaining some experience abroad and the lsquoGen Yrsquo professionals in particular seem ready to pack their bags In a CIMA study conducted in the UK last year over a third of those seeking employment in the
next two years will prioritise opportunities abroad over those in their home countries many of them enticed by the career incentives offered by the Middle East
How quickly can they land what seems to be their dream job What are the realities It may be that the move is simply from one branch to another and the only significant difference is a view from the window but for those expanding rather than changing their roles we have seen a very real need for a depth and breadth of knowledge never needed before
As geographical boundaries are pushed ever-wider a CFOrsquos responsibilities are pushed with them For many finance executives the understanding of their own patch of land is no longer enough they now have to be aware of foreign markets up to speed with foreign trends and au fait with foreign laws There is a need for a new commercial awareness in geography as well as philosophy
As geographical boundaries are pushed ever-wider a CFOrsquos responsibilities are pushed with them
John vargheseQampA
wwwthecfomecom 69
BUSINESSSET UP YOUR
IN THE UNITED ARAB EMIRATES
TO
WAREHOUSESOFFICES INDUSTRIAL LANDFLEXI
Quick and easy company set-up
Less than an hour drive from Dubai
Complete cost-effective packages including licences and facilities
100 foreign ownership
Zero income and corporate taxes
Eligibility for UAE Residence Visa
BUSINESS SET-UP SOLUTIONS STARTING FROM AED 15000 (USD 4000)
RAK FREE TRADE ZONE PROVIDES
RAK Free Trade Zone Authority - Government of Ras Al KhaimahUAE (Ras Al Khaimah) Tel +971 7 2041111 (Dubai) Tel +971 4 7041875 (Abu Dhabi) Tel +971 2 6994888
Germany (Cologne) - Turkey (Istanbul) - India (Mumbai)
Call +971 7 204 1111 Visit wwwrakftzcom Join rakftz
wwwthecfomecom66
APPSTECH TALK
AIR DISPLAY
SQUARE REGISTER
Using this app you can connect your iPad to your computer and use it as an additional screen While working on an important presentation or sales proposal you can extend or mirror your computer screen on your iPad This app is compatible with both Mac and Windows computers Note that to use this feature you have to install Air Display on your iPad and a separate free app on your computer The computer and iPad also need to be on the same Wi-Fi network in order to work in-sync
For Mac users the app allows you to connect to up to four screens ndash all at the same time
Apart from the ability to convert your iPad into a wireless display whatrsquos also attractive about this app is that it allows you to control your computer wirelessly using your iPad
This fantastic application can serve as a mobile point of sale for your business It allows you to accept credit card payments ndash including Visa MasterCard Discover and American Express A transaction fee of 275 is charged for every time you swipe a card The sale amount is transferred to your account within two working days
Once you download the app you can sign up and register for a unique card reader solution called the lsquoSquare Readerrsquo (this is free) Square Reader encrypts all card details and ensures that the transaction is secure Once you receive your Square Reader you can connect it to your device and are all set
The application also offers added features such as transaction history connecting to a receipt printer creating employee logins and more
AED 3699
PRICE
Free
PRICE
wwwthecfomecom 67
APPSTECH TALK
DOCUSIGNHave you ever been in a situation where your employees need you to urgently sign a contract but arenrsquot able to physically reach you in time DocuSign solves this problem with its easy-to-use eSignature feature In three easy steps you can sign important documents and securely send them to your intended recipient
First you have to import the document to your device ndash this could be from Dropbox Google Drive or another select applications You then place your signature or any other important legal information you need to include such as initials Once you have finished working on the document send it back via e-mail
Whatrsquos particularly great about DocuSign is the great emphasis it puts on security ndash so that users donrsquot have to worry about getting into any legal trouble
Use DocuSign and never miss a deadline again
Free for basic version
PRICE
MPAYAn initiative by the Dubai eGovernment Department mPay is a simple application that allows you to make important payments Once yoursquove signed up and entered your payment details you are good to go You can pay your Dubai Electricity and Water Authority (DEWA) bills Etisalat utility bills Dubai Police fines Recharge SALIK and much more
A handy feature is its lsquoauto-rechargersquo option which you can use to set automatic payments
Free
PRICE
Opinion CIMAPERSONALITIES
wwwthecfomecom68
NEW HORIZONSBy geetu Ahuja Head of gCC at CIMA
The days of the traditional accountant working within a small community in a small town in a small market have long gone CFOs are now being referred to as Chief Frontier Officers as they travel from market to market overseeing their offices overseas This new expanded role has distinct advantages for both the company and the CFO who gain new skills and new insights from foreign branches a single hand at the helm of many markets provides business perspectives on a global scale and benchmarks across the board
On a personal level working abroad also has huge importance Robert Walters the specialist professional recruitment consultancy recently conducted a survey
of almost 2200 employees across a variety of professions exploring a number of topics which ranged from working practices and attitudes to careers The results highlighted some notable trends particularly for finance professionals
In career progression for example the survey showed that 50 of all accountants see working abroad as either lsquoessentialrsquo or lsquoextremely usefulrsquo to furthering their prospects more than banking professionals lawyers and IT workers ndash a strong indication of how accounting professionals are thinking about their future either within their existing company or with opportunities elsewhere
Accountants with globally recognised qualifications obviously have a greater chance of gaining some experience abroad and the lsquoGen Yrsquo professionals in particular seem ready to pack their bags In a CIMA study conducted in the UK last year over a third of those seeking employment in the
next two years will prioritise opportunities abroad over those in their home countries many of them enticed by the career incentives offered by the Middle East
How quickly can they land what seems to be their dream job What are the realities It may be that the move is simply from one branch to another and the only significant difference is a view from the window but for those expanding rather than changing their roles we have seen a very real need for a depth and breadth of knowledge never needed before
As geographical boundaries are pushed ever-wider a CFOrsquos responsibilities are pushed with them For many finance executives the understanding of their own patch of land is no longer enough they now have to be aware of foreign markets up to speed with foreign trends and au fait with foreign laws There is a need for a new commercial awareness in geography as well as philosophy
As geographical boundaries are pushed ever-wider a CFOrsquos responsibilities are pushed with them
John vargheseQampA
wwwthecfomecom 69
BUSINESSSET UP YOUR
IN THE UNITED ARAB EMIRATES
TO
WAREHOUSESOFFICES INDUSTRIAL LANDFLEXI
Quick and easy company set-up
Less than an hour drive from Dubai
Complete cost-effective packages including licences and facilities
100 foreign ownership
Zero income and corporate taxes
Eligibility for UAE Residence Visa
BUSINESS SET-UP SOLUTIONS STARTING FROM AED 15000 (USD 4000)
RAK FREE TRADE ZONE PROVIDES
RAK Free Trade Zone Authority - Government of Ras Al KhaimahUAE (Ras Al Khaimah) Tel +971 7 2041111 (Dubai) Tel +971 4 7041875 (Abu Dhabi) Tel +971 2 6994888
Germany (Cologne) - Turkey (Istanbul) - India (Mumbai)
Call +971 7 204 1111 Visit wwwrakftzcom Join rakftz
wwwthecfomecom 67
APPSTECH TALK
DOCUSIGNHave you ever been in a situation where your employees need you to urgently sign a contract but arenrsquot able to physically reach you in time DocuSign solves this problem with its easy-to-use eSignature feature In three easy steps you can sign important documents and securely send them to your intended recipient
First you have to import the document to your device ndash this could be from Dropbox Google Drive or another select applications You then place your signature or any other important legal information you need to include such as initials Once you have finished working on the document send it back via e-mail
Whatrsquos particularly great about DocuSign is the great emphasis it puts on security ndash so that users donrsquot have to worry about getting into any legal trouble
Use DocuSign and never miss a deadline again
Free for basic version
PRICE
MPAYAn initiative by the Dubai eGovernment Department mPay is a simple application that allows you to make important payments Once yoursquove signed up and entered your payment details you are good to go You can pay your Dubai Electricity and Water Authority (DEWA) bills Etisalat utility bills Dubai Police fines Recharge SALIK and much more
A handy feature is its lsquoauto-rechargersquo option which you can use to set automatic payments
Free
PRICE
Opinion CIMAPERSONALITIES
wwwthecfomecom68
NEW HORIZONSBy geetu Ahuja Head of gCC at CIMA
The days of the traditional accountant working within a small community in a small town in a small market have long gone CFOs are now being referred to as Chief Frontier Officers as they travel from market to market overseeing their offices overseas This new expanded role has distinct advantages for both the company and the CFO who gain new skills and new insights from foreign branches a single hand at the helm of many markets provides business perspectives on a global scale and benchmarks across the board
On a personal level working abroad also has huge importance Robert Walters the specialist professional recruitment consultancy recently conducted a survey
of almost 2200 employees across a variety of professions exploring a number of topics which ranged from working practices and attitudes to careers The results highlighted some notable trends particularly for finance professionals
In career progression for example the survey showed that 50 of all accountants see working abroad as either lsquoessentialrsquo or lsquoextremely usefulrsquo to furthering their prospects more than banking professionals lawyers and IT workers ndash a strong indication of how accounting professionals are thinking about their future either within their existing company or with opportunities elsewhere
Accountants with globally recognised qualifications obviously have a greater chance of gaining some experience abroad and the lsquoGen Yrsquo professionals in particular seem ready to pack their bags In a CIMA study conducted in the UK last year over a third of those seeking employment in the
next two years will prioritise opportunities abroad over those in their home countries many of them enticed by the career incentives offered by the Middle East
How quickly can they land what seems to be their dream job What are the realities It may be that the move is simply from one branch to another and the only significant difference is a view from the window but for those expanding rather than changing their roles we have seen a very real need for a depth and breadth of knowledge never needed before
As geographical boundaries are pushed ever-wider a CFOrsquos responsibilities are pushed with them For many finance executives the understanding of their own patch of land is no longer enough they now have to be aware of foreign markets up to speed with foreign trends and au fait with foreign laws There is a need for a new commercial awareness in geography as well as philosophy
As geographical boundaries are pushed ever-wider a CFOrsquos responsibilities are pushed with them
John vargheseQampA
wwwthecfomecom 69
BUSINESSSET UP YOUR
IN THE UNITED ARAB EMIRATES
TO
WAREHOUSESOFFICES INDUSTRIAL LANDFLEXI
Quick and easy company set-up
Less than an hour drive from Dubai
Complete cost-effective packages including licences and facilities
100 foreign ownership
Zero income and corporate taxes
Eligibility for UAE Residence Visa
BUSINESS SET-UP SOLUTIONS STARTING FROM AED 15000 (USD 4000)
RAK FREE TRADE ZONE PROVIDES
RAK Free Trade Zone Authority - Government of Ras Al KhaimahUAE (Ras Al Khaimah) Tel +971 7 2041111 (Dubai) Tel +971 4 7041875 (Abu Dhabi) Tel +971 2 6994888
Germany (Cologne) - Turkey (Istanbul) - India (Mumbai)
Call +971 7 204 1111 Visit wwwrakftzcom Join rakftz
Opinion CIMAPERSONALITIES
wwwthecfomecom68
NEW HORIZONSBy geetu Ahuja Head of gCC at CIMA
The days of the traditional accountant working within a small community in a small town in a small market have long gone CFOs are now being referred to as Chief Frontier Officers as they travel from market to market overseeing their offices overseas This new expanded role has distinct advantages for both the company and the CFO who gain new skills and new insights from foreign branches a single hand at the helm of many markets provides business perspectives on a global scale and benchmarks across the board
On a personal level working abroad also has huge importance Robert Walters the specialist professional recruitment consultancy recently conducted a survey
of almost 2200 employees across a variety of professions exploring a number of topics which ranged from working practices and attitudes to careers The results highlighted some notable trends particularly for finance professionals
In career progression for example the survey showed that 50 of all accountants see working abroad as either lsquoessentialrsquo or lsquoextremely usefulrsquo to furthering their prospects more than banking professionals lawyers and IT workers ndash a strong indication of how accounting professionals are thinking about their future either within their existing company or with opportunities elsewhere
Accountants with globally recognised qualifications obviously have a greater chance of gaining some experience abroad and the lsquoGen Yrsquo professionals in particular seem ready to pack their bags In a CIMA study conducted in the UK last year over a third of those seeking employment in the
next two years will prioritise opportunities abroad over those in their home countries many of them enticed by the career incentives offered by the Middle East
How quickly can they land what seems to be their dream job What are the realities It may be that the move is simply from one branch to another and the only significant difference is a view from the window but for those expanding rather than changing their roles we have seen a very real need for a depth and breadth of knowledge never needed before
As geographical boundaries are pushed ever-wider a CFOrsquos responsibilities are pushed with them For many finance executives the understanding of their own patch of land is no longer enough they now have to be aware of foreign markets up to speed with foreign trends and au fait with foreign laws There is a need for a new commercial awareness in geography as well as philosophy
As geographical boundaries are pushed ever-wider a CFOrsquos responsibilities are pushed with them
John vargheseQampA
wwwthecfomecom 69
BUSINESSSET UP YOUR
IN THE UNITED ARAB EMIRATES
TO
WAREHOUSESOFFICES INDUSTRIAL LANDFLEXI
Quick and easy company set-up
Less than an hour drive from Dubai
Complete cost-effective packages including licences and facilities
100 foreign ownership
Zero income and corporate taxes
Eligibility for UAE Residence Visa
BUSINESS SET-UP SOLUTIONS STARTING FROM AED 15000 (USD 4000)
RAK FREE TRADE ZONE PROVIDES
RAK Free Trade Zone Authority - Government of Ras Al KhaimahUAE (Ras Al Khaimah) Tel +971 7 2041111 (Dubai) Tel +971 4 7041875 (Abu Dhabi) Tel +971 2 6994888
Germany (Cologne) - Turkey (Istanbul) - India (Mumbai)
Call +971 7 204 1111 Visit wwwrakftzcom Join rakftz
John vargheseQampA
wwwthecfomecom 69
BUSINESSSET UP YOUR
IN THE UNITED ARAB EMIRATES
TO
WAREHOUSESOFFICES INDUSTRIAL LANDFLEXI
Quick and easy company set-up
Less than an hour drive from Dubai
Complete cost-effective packages including licences and facilities
100 foreign ownership
Zero income and corporate taxes
Eligibility for UAE Residence Visa
BUSINESS SET-UP SOLUTIONS STARTING FROM AED 15000 (USD 4000)
RAK FREE TRADE ZONE PROVIDES
RAK Free Trade Zone Authority - Government of Ras Al KhaimahUAE (Ras Al Khaimah) Tel +971 7 2041111 (Dubai) Tel +971 4 7041875 (Abu Dhabi) Tel +971 2 6994888
Germany (Cologne) - Turkey (Istanbul) - India (Mumbai)
Call +971 7 204 1111 Visit wwwrakftzcom Join rakftz