MovingFrom CAtoCFO: ACompetencyFramework

AnICAO/QueensUniversityCollaborativeStudy
Producedby:P. MurphywithT. Anger, A.Barrett, Y.Chan, Y.Luo,Y.Rahrovani,J. Roger, andJ.Wylie.

 Contents
I. II. ExecutiveSummary.........................................................................................................................................1 Introduction....................................................................................................................................................2 KeyDriversofChangeinCFORole..................................................................................................................... 2 MovetoaKnowledgeEconomy..................................................................................................................... 2 IncreasedRisk.................................................................................................................................................3 MoreStringentRegulatoryEnvironment....................................................................................................... 3 IncreasedCompetition ....................................................................................................................................3 TheImportanceofValueCreation ...................................................................................................................... 4 TheCFORoleACompetencyFramework........................................................................................................ 5 CFOCompetencyDeficiencies............................................................................................................................ 9 IV. TheSurvey.......................................................................................................................................................9 DevelopingCFOCompetencies........................................................................................................................... 9 ResultsofCompetencySurveyofExecutives................................................................................................... 10 RespondentDemographics........................................................................................................................... 10 RolesOverview.................................................................................................................................................11 StewardRole.....................................................................................................................................................12 ImportanceofEachStewardCompetency................................................................................................... 12 DevelopingEachStewardCompetency........................................................................................................ 13 OperatorRole ....................................................................................................................................................14 ImportanceofEachOperatorCompetency.................................................................................................. 14 DevelopingEachOperatorCompetency....................................................................................................... 15 CatalystRole.....................................................................................................................................................17 ImportanceofEachCatalystCompetency.................................................................................................... 17 DevelopingEachCatalystCompetency........................................................................................................ 17 StrategistRole...................................................................................................................................................19 ImportanceofEachStrategistCompetency................................................................................................. 20 DevelopingEachStrategistCompetency...................................................................................................... 20 FurtherAnalyses...............................................................................................................................................22 Publicvs.PrivateOrganizations.................................................................................................................... 22 CFOvs.nonCFOs..........................................................................................................................................23 SummaryandImplications............................................................................................................................... 23 Summary.......................................................................................................................................................23

III. CompetencyFrameworkfromPriorLiterature.............................................................................................. 2

Implications...................................................................................................................................................24 GeneralQuestions............................................................................................................................................25 TheFutureCFO.............................................................................................................................................25 RoleDifferences:CEOandCFO..................................................................................................................... 26 CFOQualifications.........................................................................................................................................26 SummaryandImplicationsfromGeneralQuestions27 Summary.......................................................................................................................................................27 Implications...................................................................................................................................................28 FutureQuestions..............................................................................................................................................28 V. CompetencyMap..........................................................................................................................................29 VI. Bibliography..................................................................................................................................................30 Appendix1:TheSurvey..32 Appendix2:TheCompetencyMap.54

I.

ExecutiveSummary

ThisreportidentifiesandexaminesthenecessarycompetenciesrequiredforanewCharteredAccountant(CA) todevelopoveracareer,culminatinginbecomingaChiefFinancialOfficer(CFO).Secondarily,thereport identifiestherolesrequiredforaChiefExecutiveOfficer(CEO).WefirstexaminepriorliteratureonCFO competencies,thendevelopandadministerasurveytoOntarioCsuiteexecutives.Duetothe proportionatelyfewrespondentsfrompubliclyheldorganizations,wesuggesttheCFOCompetencyMap (Appendix2)appliestotheCFOpositioningeneral. Overallfindingsinclude: PriorliteraturesuggestsaCFOhasfourrolesSteward,Operator,Catalyst,andStrategisteachof whichhasrequiredcompetencies.Surveyrespondentsagreetheserolescapturetheessenceofthe CFOsjob. ThoughallfourCFOrolesaredeemedimportant,theStewardroleismostimportant. Themostimportantcompetenciestendtobethesoftskillssuchaspersonalintegrityandethics, criticalthinking,communicationandpresentationskills,strategicthinkinganddecisionmaking,and leadership.Thesecompetencies,fallingwithintheCatalystandStrategistroles,areevenmore importantforaCEOthanforaCFO. Overall,respondentsfoundexperiencetobethebestwaytodevelopcompetencies.However, educationandmentorshiparealsoimportant. Thevastmajorityofcompetenciesshouldbedevelopedearlyandcontinuetodevelopthroughthe middleofonescareer.Whilenotascommon,latedevelopmentisalsoacceptable. RespondentsidentifyfutureissueswithineveryCFOrole,theStrategistrolebeingpredominant. ThepositionofCEOissimilartothatoftheCFO,butthereisamuchgreaterweightontheroleof Strategist. ActionsthatCAscantakebasedonourfindings: UsetheCompetencyMap(Appendix2)tohelpdevelopcompetenciesthroughoutacareerwiththegoalof becomingaCFO. PayparticularattentiontoseveralofthesoftcompetencieswithintheCatalystandStrategistroles. BothCAsandfutureCAsshouldvolunteerthroughouttheirlifetimetodevelopsoftcompetencies. Seekoutindustryandinternationalexperienceaswellasexperiencewithinnonfinancefunctions. ActionsthatICAOandQueenscantakebasedonourfindings: Considerprovidingadditionalorextendededucationalprograms,including: o Fraudprevention,detection,andinvestigation o Corporatefinance,treasuryandinvestmentmanagement o Organizationalandadministrativeskills o Communication/presentationskillsandexecutivepresence o Corporategovernance o Ethicaldecisionmaking o Strategicthinkinganddecisionmaking,andcriticalthinking o Industrytrainingand/ornonfinancetraining Wealsoidentifyfuturequestionsthatareeithernotcompletelyansweredhereorarenaturalextensionsof thisproject. 1

II.

Introduction

TheInstituteofCharteredAccountantofOntario(ICAO)andTheMoniesonCentreatQueensUniversity collaboratedonaprojectintendedtoassistnewCAstoplantheircareertowardbecomingaCFOofapublicly heldcompany.ThepurposeofthisreportistoprovideanunderstandingoftheCFOroleandtoidentifythe competenciesCAsneedtodevelopsothattheyareabletoprogresstotheCFOlevelandfunctioneffectively. Toaccomplishthis,avarietyofinformationsourceswereconsulted,includingacademicjournals,consulting reports,books,magazines,andconferenceandworkshopofferings.Theinformationfromthesesourceswas synthesizedintoalistofcompetenciesthattodayspubliccompaniesexpecttheirCFOstopossess.These competenciesarestructuredaroundfourdifferentrolesplayedbytheCFO:Steward,Operator,Catalyst,and Strategist.Eachoftheserolesandtheirsubsequentcompetencieswereusedtostructureasurvey administeredtoCsuiteexecutiveswithinOntariocompanies.Followingasummaryoftheliterature,this reportprovidesadetaileddiscussionoftheresultsofthesurvey,includingsummariesandimplications,and concludeswithaCompetencyMapthatCAscanuseinplanningtheircareer.

III.

CompetencyFrameworkfromPriorLiterature

Overthelast20years,thebusinessenvironmenthasbecomeincreasinglydynamic,requiringflexibilityand innovation.Specifictofinance,newanddifferenttypesofcapital,includingfinancial,physical,human,social andintellectual,arebeingaffectedinprofoundwaysbythechangingbusinessenvironment,resultinginthe creationofnewmarketsandnewthreats.Theconsequenceisaneedforthefinancefunctiontouse technologytosupplymoreaccurateinformationatafasterrateandreducecoststhroughprocessefficiencies. This,combinedwithincreasingamountsofdisclosedinformation,technologicaladvancesandturbulent markets,havenecessitatedashiftintheCFOrolefromthatofbeancounter,orfinancialforecaster,tothat ofstrategistwhoisabletotransformandintegratethefinancefunctionintoaflexibleandresponsivepartner thatproducesbusinessvalue.ThesechangesnecessitatetheCFOtofocusmoreandmoreonsoftskillssuch asrelationshipandteambuilding.BelowaresomeofthekeydriversoftheCFOroleshift.

KeyDriversofChangeinCFORole
MovetoaKnowledgeEconomy

Theriseofglobalizationandtechnologicaladvancementshasfacilitatedthedevelopmentoftheknowledge economywherehumancapitalhasreplacedproductsasthekeyresourcethatdeterminesbusinesssuccess. Assuch,balancesheetshaveanincreasingproportionofintangibleversustangibleassets.Therefore, businessesmustincreasetheirabilitytoeffectivelymanageandreportonintangibleassets.Aswell,they mustbeabletoattractthemosttalentedemployeeswhoseknowledgewilldrivethebusinessandultimately determinesuccess.

 IncreasedRisk

A2008studybyIBMinwhichover1,200CFOsandseniorfinanceexecutiveswereinterviewed,determined thatthemajority(62%)oflargeenterprises(revenuesoverUS$5billion)andalmosthalf(46%)ofsmaller enterprises(revenuesunderUS$5billion)encounteredmaterialriskeventsduringthelastthreeyears.Of those,42%and39%oflargeandsmall Table1 enterprises,respectively,werenot wellpreparedtodealwith therisks.Ascanbeseen fromthegraph(Figure1), organizationalculturewas themainobstacleto integratingdataforrisk management. Other issuesrelatedtoeffective riskmanagementinclude highqualitydata,enabling technology, standardizationof processes,organization, access/processcontrols andcapital/budget considerations.Allofthesemustbeaddressedbythefinancefunctiontoeffectivelydealwithrisk. MoreStringentRegulatoryEnvironment Itisnosecretthatcertainincidencesofcorporatemisconducthaveresultedinamorecomplicatedandrigid regulatoryenvironment.Thistranslatesintozerotoleranceforerrorandunnecessaryrisk,whichleadstothe needtosafeguardtheintegrityofdataandfinancialstatements. IncreasedCompetition Intensecompetitionmeansthatbusinessesmustreducecostsandincreaseefficiencyiftheywanttostay competitive.This,inturn,demandsthatthefinancefunctionsuppliesbetterinformationatafasterrateand designsprocessestosupportit.Butefficiencyisnottheonlynecessitytomaintaincompetitiveness. Businessesmustalsocontinuallymovetowardsmorevaluefortheirmoney,whichmeansdeveloping strategiesandmakingdecisionsaccordingly.However,itisoftendifficultforbusinessestofindthetimetodo so.Possiblesolutionstothisproblemincludeleveragingtechnologyandoffshoringroutineactivities.As MichaelRoss,CA,vicepresidentadministrationandCFOofBellNordiq,putsit:"Intheend,contractingout andtechnologiesboostthequalityofthedatawegatherandletusmovemorequickly.TheCFOhasmore timeandcanfocusonmorestrategictasksMoremundaneactivitiesshouldbestandardized,automated offshoredforexamplesopeoplecanfocusonthevalueaddedtasks(desRoberts,2003,p.30).

TheImportanceofValueCreation
Thedriversofbusinessenvironmentchangesdescribedabovehavecontributedtoasituationinwhichvalue creationmustbeapriorityforeveryfinancedepartmentinterestedineffectiveandefficientfunctioning. Indeed,over80%ofparticipantspolledinIBMs2008CFOstudystatedthatmeasuringandmonitoring businessperformancewasmoreimportantthananyotherareaofresponsibility.Thatsaid,Deloitte Consultingfoundthatmanyfinanceorganizationsareillequippedtofostervalueaddingactivities.Only about50%ofthe636executivesin73countriespolledbyDeloittein2007believedtheirfinanceorganization iscompetentlyaligningfinancewiththebusinessandeffectivelystimulatingtheorganizationtoachieve strategicandfinancialgoals. Withoneofthemaingoalsofthefinancefunctionbeingthecreationofvalue,therearesomekeyactivitiesin whichCFOsneedtoengage(Propeo,2008): Integratingthefinance functionwiththerestof theorganization.This entailsaligningpriorities withoverallbusiness strategyandputtingin placelongtermcost managementprograms thatreplacetraditional "costaccounting"activities. Asthegraphtotheright demonstrates,integration isakeyaspirationformany companies. Participatingasanequalbusinesspartnerwithintheorganizationaspartoftheoverallintegration. Providinginformationcriticaltothedecisionmakingprocess.Thisconsistsofdevelopingprocesses andsystemsthatcandeliverhighqualityinformationinatimelyfashion. Providingtimelyandcosteffectivemanagementreporting,whichincludesdevelopingmanagement controlmethodsandproducingnewsetsofstrategicmeasuresthatmanagerscanusetoanticipate challengesandmonitorprogress. Ensuringdeliveryofhighqualityservicesbystrategicallythinkingthroughhowthebusinessshould bestapplyitscapitalresources. Developinganeffectivebalancebetweencompliance,controlandefficiency.Amajorpriorityisthe orchestrationoftheoverallenterpriseriskprofilewhichincludestheconvergenceofperformanceand riskmanagement. Eliminatingorreducingnonvalueaddedactivitiesbyevaluatingthevalueaddofeachfinancial processandidentifyingtherealdriversofcompanyprofitability. Developingbenchmarksforperformancethroughtheidentificationofbestinclassorganizations Attractingfinancetalentbybrandingthecompanyasacareerdestinationforfinanceprofessionals.
Table2

TheCFORoleACompetencyFramework
Lookingattheactivitiesdescribedintheprevioussection,itbecomesapparentthatthereisashiftintheCFO functionfromoneinvolvingaconcentrationoncomplianceandreporting,toonethatfocusesonperformance improvement,knowledgemanagementandstrategicdevelopment.Thoughcomplianceremainsessential,the CFOmustalsoengageandcollaboratewiththeentireorganization.Thisshiftultimatelyresultsinamore sophisticatedfunctionthatinvolvesanincreasedinvolvementwithawidernumberofinternalstakeholders, includingnotonlypeersindifferentdepartments,butalsoawidernumberofexternalstakeholdersincluding shareholders,governmentregulatoryagencies,activistscallingforreform,themedia,thejobmarket,and financialanalysts.Interactingwithawidernumberofstakeholdersinaneverchangingbusinessenvironment requiresahighdegreeofflexibilityandadaptabilityindealingwithbothpeopleandtechnologyandanability toeffectivelymanagealargevarietyofdisparaterelationships. ThecompetencyframeworkinTable3isbasedontheliteraturediscussedabove.Theframeworkis structuredaroundfourkeyrolesthattheCFOplays:Steward,Operator,CatalystandStrategist(Deloitte, 2007).Withineachoftheserolesthereareanumberofspecificcompetenciesnecessaryforeffective functioning.Table3listsanddescribeseachroleandcompetency.Thisframeworkisthebasisforthesurvey ofexecutives.

Table3

Competencies Steward
Workingknowledgeofriskmanagement,budget, andforecastingtools Investmentandcreditriskknowledge Accountingknowledge(GAAPandtaxation) Externalfinancialandregulatoryreporting knowledge Understandingfinancialinformationsystemsand informationalneedsofdecisionmakers Understandingofsystems,processes,andinternal controlsoverfinancialinformation Understandingthebusinessenvironment Fraudprevention,detection,investigation

Description
Accounting,control,riskmanagement andassetpreservationaretheprovinceoftheSteward.TheStewardmustensurecompany compliancewithfinancialreportingandcontrolrequirements.Informationqualityandcontrolrationalizationaretopofmindissuesforthe Steward. Riskmanagementactivitiessuchastheuseofmonitoring,reporting,historicalcomparisons,evaluationtools,predictiveanalytics,risk adjustedforecastsandprocesscontrols.Knowledgeofbudgetingandforecastingforunitsofanorganizationandtheorganizationasa whole. Knowledgeofrisksandreturnsforinvestmentsandcredit(e.g.customercredit). Upto dateknowledgeofgenerallyacceptedaccountingprinciplesandtaxationinCanadaandallcountriesinwhichthecompany accessescapitalmarkets. KnowledgeofregulatoryreportingrequirementsinCanadaand othercountriesinwhichtheorganizationdoesbusiness.Mustunderstand therequirementsoftheSarbanesOxleyActof2002(SOX)intheUnitedStatesiftheorganizationiscrosslisted.Knowledgeofindustry specificrequirements. Thoroughunderstandingoftheinformationalneedsofdecisionmakerswithintheorganization(fromtopleveldownthroughthe organization).Overseeingafinancialinformationsystemthatiscapableofproducingusefulinformationtomeetthoseneeds(e.g. budgeting;profitabilityofproducts,businessunits,customerrelationships). AbilitytocreateoroverseeITsystems,processes,andinternalcontrolpoliciesandprocedurestoensurehighqualityofinformation. Anunderstandingoftheenvironmentinwhichtheorganizationoperates.Thisincludestheindustry,theregulatoryenvironment,and economicenvironment,etc. Anunderstandingofthetypesoffraudthatcanbecommittedwithintheorganizationandtheconditionsthatoftenleadtofraud. Continuousmonitoringofcontrolsystemstowatchforweaknessesthatcouldmakecommittingfraudeasier.Ahealthyskepticismthat enablestotheinvestigationofpossiblefraudwhenredflagsappear. Efficiencyandservicelevelsaretheprimaryareas offocusfortheOperator.TheOperatormustdynamicallybalancecostandservicelevels indeliveringthefinanceorganization'sresponsibilities,andadaptfinance'soperatingmodelasnecessary.Talentmanagement,offshoring andsharedservicedecisionsareoftenthekeyissuestobeaddressed.Thisroleisorientedtowardbestpracticesofthefinancefunction itself. Brandingthecompanyasacareerdestinationforfinanceprofessionalsiscriticalforattractingtoptalent. Identifying,developing,andoverseeingprojectsthatcreatevalueandmeetorexceedfinancialgoals. Managestaffnotonlyformaximumperformance,butalsoforadvancementwithintheorganization.CFOsmustprovidetheirownfuture leaderswithsimilaradvancementopportunitiesandgivethemroomtoexcelevenbeyondtherealmoffinance.Abilitytomanagea diversestaffhavingdifferingbackgrounds,expectations,andgoals.Abilitytobuildandfacilitateeffectiveteams.

Operator
Staffplanning Projectmanagement Staffmanagement,empowerment,teambuilding, andaccountability

Corporatefinance Treasuryandinvestmentmanagement Mergersandacquisitions,strategicalliances Outsourcing Achievement/resultsorientation Organizationalandadministrationskills

Developsetsofstrategicmeasuresthatcanbeusedtoanticipatechallengesandmonitorprogress. Monitorfinancingactivitiesandadaptstrategiesandtacticstochangesindebtandequitymarkets.Knowledgeanduseoffinancial instrumentstogainthegreatestrisk/returnoninvestments. AbilitytoanalyzepotentialM&Adealsandstrategicpartnershipsforstrategicbenefit. Recognizingopportunitiestooutsourcetoenhancevalueandservice,andtocarryoutwithoutdisruption. Ability totranslateperformanceintoresults.Abilitytorespond to theneedsoftheorganizationandtomeetthoseneedsusingmeasures thatareappropriateandunderstandable. Abilitytoorganizeandprioritizeeffectively.Abilitytoprocesslargeamountsofinformationwithinlimitedtimeconstraints,andtoidentify situationsinwhichdiggingintodetailsisnecessary. TheCatalystisanagentforchange,focusedonestablishingavalueattitudethroughouttheorganization.TheCatalystgains business alignmenttoidentify,evaluateandexecutestrategies,andservesasabusinesspartnertootherdecisionmakersincludingbusinessunit leaders,thechiefinformationofficer,andsalesandmarketingleaders.TheCatalystestablishesastructureofenterpriseaccountabilityfor results,drivesenterpriseexecutionandgainsacceptancefrombusinessmanagementastheorganization'scatalyst.Thisroleisoriented towardbestpracticesoftheentireorganization. Inspires andmotivates otherswithintheorganization.Provides thenecessaryguidanceanddirectiontomeetandexceedorganizational goalsandobjectives. Abilitytocommunicateeffectivelyinwritingandverbally:toconnectwithothers,topersuadeothers,tocommunicatecomplex informationinaneasytounderstandmanner.Abilitytoactappropriatelyinavarietyofsituations.Abilitytobeaccessibleandrespected byothersatalllevelsintheorganization. Anunderstandingoftheelementsofcorporategovernanceand anabilityto institute bestpracticesto create acultureofexcellenceand ethicalperformance. Abilitytonegotiatewithothersinbothfriendlyandadversecircumstances. Beingagoodlistenerisanimportantelementinnegotiation. Abilitytoresolveconflict. Abilitytonetworkwithothers,todevelopstrongrelationships,tocollaborateandtobe agoodteamplayer. Anunderstandingofthemotivationsofoneselfandothers.Arecognition oftherealpossibilityofunethicalbehavior.Abilitytotake activeandpublicstepstothwartmisbehaviorandencourageethicalbehavior.Beingarolemodel.Settingthetoneatthetop. Managechangewithminimumdisruption;beanagentforpositivechange. Flexibility andtheabilitytoencourage flexibilityinother membersoftheorganization. Ability toseeonesownfaultsormistakes, takeresponsibilityforthem, and toassistotherstodothesame inacongenialmanner. Possessesthecourageandresiliencetopersistinthefaceofadversity.Beingpassionateabout onesworkenablespersistence. TheStrategistisadirector,focusedondefiningthefutureofthecompanytoenhancebusinessperformanceandshareholdervalue.The Strategistprovidesafinancialperspectiveoninnovationandprofitablegrowth,andleveragesthisperspectivetoimproveriskawareness, strategicdecisionmakingandperformancemanagementintegration.TheStrategisttranslatestheexpectationsofthecapitalmarketsinto internalbusinessimperatives.Thisroleisorientedtowardlongtermstrategicissues,andisoutwardlydirected. Theabilitytodevelopvisionsthatpromptbuyinfromawiderangeoforganizationalstakeholders.Theabilitytoalignfinance functions prioritieswithbusinessstrategyandorganizationalgoals.

Catalyst

Leadershipandinfluence Communication/presentationskillsandexecutive presence Corporategovernance Negotiation Relationshipbuildingandcollaboration Personalintegrityandethics Changemanagementandflexibility Selfawarenessandinsight Persistence

Strategist
Goalsetting/visioning

Strategicriskmanagement Strategicthinkinganddecisionmaking

Performancemanagementintegration

Criticalthinking Managingambiguity Dedicationtocontinuousimprovement Advocate/ambassadorfortheorganization

Understandingthebigpicture:suchashowtheenvironmentcan impacttheorganizationbothpositivelyandnegatively..An understandingofhowexternalandinternalfactorscaninteracttocreateorreducerisk. . Ability totakeaholisticandfutureoriented perspectiveoftheorganizationthatrecognizesthesynergiesandinterdependenciesbetween thedifferentparts.Thisperspectiveisleveragedintheuseofinformationtocreatestrategiesthatenablegrowth.Thisabilityuses innovation,creativity,andthinkingoutsidethebox. Performancemanagementintegrationisaholisticapproachthatspansalloftheprocessesandtechnologiesrelatedtoperformance managementandconsistsoftheAbilitytointegratereportingandperformancemeasurements.budgetingplanningandforecasting,and organizationalalignment.Thisincludestheeliminationorreductionofnonvalueaddedactivities,measuringfinancialperformance, establishingefficiencymetrics,measuringnonfinancialperformanceandmeasuringcustomersatisfaction. Theabilitytomakedecisionsbasedonsoundlogicandevidence.Thisconsists ofbeingabletodistinguish betweenfactandopinion,ask questions,makedetailedobservations,anduncoverassumptions.Theabilitytodrawsoundconclusionsbasedonrelevantinformation. Theabilitytodealeffectivelywithuncertainsituations.Theabilitytocontrolonesanxiety andtomaintain clarityofthought inorderto evaluateacomplexsituationandrespondeffectively. Havingastrongdesiretolearn; beingselfmotivatedtotakeadvantageofopportunities tolearnnewthingsandtobededicatedtoself improvement. Asthesecondincommand,theCFOmustrepresenttheorganizationtotheoutsideworld.Thisincludesnetworkingwithshareholders, analysts,suppliers,customers,andthepublicatlarge.TheCFOmusthaveakeensenseofwhenandhowtobestportraybothpositive andnegativeinformationabouttheorganization.

CFOCompetencyDeficiencies
ThecurrentliteraturesuggeststhatmostCAs,controllersandevencurrentCFOslackthesoftercompetencies withintheCatalystandStrategistroles(seetheresultsfromtheDeloitte2007studyinTable4).Militelloand Schwalbergconductedindepthinterviewswithmorethan30highlevelfinance,humanresourcesand businesslineprofessionalsandfoundthatmostCFOsrecognizeanacceptablecompetenceinStewardand Operatorcompetencies,butatthesame Table4 timemanyalsorecognizeaneedforfurther developmentintheCatalystandStrategist competencies(MilitelloandSchwalberg, 2002).Thisconclusionwasfurther supportedinananalysisbyEldridgeand Brousseau(2002)usingKorn/Ferry's databaseofmorethan500,000profilesof businessexecutivesworldwide.Ingeneral theirfindingssuggestthatbestinclass CFOstendtofocusmoreonpeopleissues thanontraditionalfinancialgovernanceresponsibilities.Aswell,theytendmoreoftentousetheir interpersonalrelationshipswithotherstomakemoresounddecisions.Anotherkeyfindingwasthatthemost successfulCFOsuseaspecificleadershipstylethatdifferssubstantiallyfromcontrollers.BestinclassCFOs tendtouseaparticipativestyleofleadershipthatishighlyinteractive,social,andconsensusoriented,while controllerstendtouseamoreintellectualleadershipstylethatischaracterizedasamethodical/analytical approachthatfocusesonqualityandaccuracy.

IV.

TheSurvey

Thesurvey(seeAppendix1)beginswithadescriptionofeachofthefourCFOrolesandaskswhetherthese rolescapturetheessenceoftheCFOsjob.RespondentsareaskedtheimportancelevelofeachroleforaCFO andCEO,andthelengthoftimetheCFOspendsoneachoftheroles.Next,thesurveygoesintomoredepth, describingcompetencieswithineachroleandaskingimportancequestionsofeach.Thesurveyendswith questionsaboutCFOqualificationsandrespondentdemographics.

DevelopingCFOCompetencies

WithineachofthefourCFOroles,thesurveyasksnotonlytheimportanceofeachcompetency,buthowand wheneachisdeveloped.ThereareanumberofmethodsthroughwhichCAscandevelopthenecessary competenciestobecomeeffectiveCFOs.Suchmethodsinclude: 1) GainedononesownthroughjobexperienceMonitoringonesownbehaviorandattempting tochangeinthedesireddirection.Thiscanincluderequestingfeedbackfromcolleagueson onesselfassessment,andtakingadvantageofjobrotationindifferentbusinessunitsor locationstodevelopanunderstandingofhowonescompanyfunctionsasawhole. 2) Viaformaleducationprograms/seminarsAttendingworkshops,seminars,conferencesand executivelearningprograms,includinguniversityandpostgraduatestudies.

3) WiththehelpofamentorDevelopingarelationshipwitharolemodelormentorwho resonatesthequalitiesyouseektodevelop,or,usinganexecutivecoachtodevelopnecessary competencies. OtheractivitiesthatwillsupportthedevelopmentofnecessaryCFOcompetenciesthatcanbedeveloped throughoneoralloftheabovemethodsinclude: Developingaleadershipstylethatismoreopen,collaborativeandparticipativeratherthan intellectual,directiveorcommandandcontrol Learningtolearnfromothers:becomelessdependentontechnicalexpertiseandlearntoleveragethe strengthsofotheremployees Increasingonessituationalawarenessbyactivelyseekingoutsituationsthatenablecollaborative problemsolving Shiftingonesfocusfromtechnicalissuestorelationshipandteambuilding Improvingcreativethinking:attempttothinkoutsidethebox,pushcomfortlimits,andquestionbasic assumptionsandthinkingpatterns Becomingselfaware:identifystrengthsandweaknessesanddevelopincreasedinterpersonal awarenessandresponsiveness Intermsoftiming,weaskrespondentstoindicateapproximatelywhenduringonescareeraCAshould concentrateondevelopingthatparticularcompetency:early,middle,orlate.

ResultsofCompetencySurveyofExecutives
RespondentDemographics

Intotal,147individualsrespondedtoaportionofthesurvey;90fullycompletedit.Themostimportant demographicsasitrelatestoCFOcompetencieswithinapubliclyheldorganizationareasfollows: Respondents'JobTitles

NumberofRespondents
60 50 40 30 20 10 0 80 60 40 20 0 Public Private Unknown

OrganizationType

Duetothesmallnumberofrespondentsfrompubliclyheldcompanies(25),weshouldnotgeneralizeour surveyresultstoCFOsofpubliclyheldorganizations.Additionally,wefindsomesignificantdifferencesin

10

responsesbetweenthoseemployedbypublicvs.privateorganizations.Therefore,wesuggestthe CompetencyMapapplytotheCFOroleingeneral. Ofthe90respondentsprovidingdemographicinformation: Almost40%areage4150,38%are5160,13%are60+,10%are3140 88%aremale 54%havebeenintheircurrentjob05years,27%for610years,19%morethan11years Theyhaveanaverageof25yearsofexperience 24%areinotherindustry;23%inmanufacturing;17%infinance,insurance,andrealestate;the remainingareinwholesaleorretailtrade,services,transportation,andpublicadministration 40%oforganizationshaveassetsof$10100million,20%havelessthan$10million,14%have$100 500million,and11%have$110billion.Salessizesarecomparable

RolesOverview
Themajorityofrespondents(86%)agreedthatthefourrolescapturetheessenceoftheCFOsjob.With respecttotheimportanceofeachrole,thefollowingareaverageresponses: ImportanceofEachRoleandTime Importancescale: 1 = unimportant SpentonEach 2=somewhatunimportant 5 3=moderatelyimportant 4 4=important 5=critical 3 ImportancetoCFO 2 TimeSpentbyCFO Timescale: 1 ImportancetoCEO 1=leastamountoftime 0 5=mostamountoftime Steward Operator Catalyst Strategist AlltherolesareimportantfortheCFO,withStewardrankingmostimportantandwiththehighestlevelof consensus.Timespentoneachroleissimilar,buthashigherstandarddeviationlevelsthananyofthe importancemeasures,indicatingthatrespondentsdifferedmoreinhowmuchtimetheyspendoneachrole thaninhowimportanttheybelievetheroletobe.Thedifferencesbetweenimportanceandtimespenton eachroleareallsignificant,withnoparticulardifferencestandingoutfromanother.FortheCEO,themost importantrolesareStrategistandCatalyst,andtheyaresignificantlyhigherthanforaCFO.Theroleof StrategistisnotonlyrankedhighestfortheCEO,butitalsohasthehighestlevelofconsensus. Thesurveyprovidedanopenendedquestionforthosewhodidnotagreewiththefourroles.Followingare somekeyresponses: Severalrespondentsindicatedthattheimportanceofeachroleandtimespentoneachdependsupon severalfactors: o Thesize,nature,andstructureofthecompany.Forexample,theCFOhasamorediverserole insmallercompanies,includingHR. 11

o ThecapabilitiesoftheCEOandotherexecutives. o Theparticularneedsatagiventime.OnerespondentsuggestedaTBDcategorydepending uponimmediateneeds. Severalrespondentslistedadditionalitemsthatarecapturedascompetencies,suchasadvocate, leader,teambuilder,communicator,analyst,mentor,businesspartnerwiththoseresponsiblefor operations,investorrelations,andgovernance.TheCompetencyMapinAppendix2hasbeenupdated and/orexpandedtoincludethesecompetencies. OnerespondentindicatedthataroleofmaximizingcapitalemployedisimportantforCFOsofprivately heldorganizations. OnerespondentdefinedtheroleofCFOas,theinternalconscienceoftheseniormanagementteam, nottosuggestthatnonCAsdonthaveaconscience,buttoindicatethataCAhasreceivedtraining thatincludesaspecificcodeofethics.

StewardRole
FollowingisthelistofcompetenciesundertheStewardrole: 1. Workingknowledgeofriskmanagement,budgetandforecastingtools(Risk&Budget) 2. Investmentandcreditriskknowledge(Invst&CreditRisk) 3. Accountingknowledge(GAAPandtaxation)(Acctg) 4. Externalfinancialandregulatoryreportingknowledge(FinRptg) 5. Understandingoffinancialinformationsystemsandinformationalneedsofdecisionmakers(Info Systems&Needs) 6. Understandingofsystems,processesandinternalcontrolsoverfinancialinformation(Systems&IC) 7. Understandingthebusinessenvironment(BusEnv) 8. Fraudprevention,detection,andinvestigation(Fraud) ImportanceofEachStewardCompetency Asthegraphbelowshows,knowledgeofthebusinessenvironmentreceivesthehighestlevelofimportance. Thiscompetencyalsohasthegreatestconsensus.Thecompetencyoffraudprevention,detectionand investigationreceivesthelowestlevelofimportanceandleastconsensus,butstillranksasmorethan moderatelyimportant.

ImportanceofEachCompetency

5 4.5 4 3.5 3 2.5 2 1.5 1 0.5 0 Risk& Budget Invst& Credit Risk Acctg FinRptg Info Systems BusEnv Systems& andIC Needs Fraud

Importance Scale: 1=unimportant 2=somewhat unimportant 3=moderately important 4=important 5=critical

12

DevelopingEachStewardCompetency IndevelopingtheStewardcompetenciesoverall,63%ofrespondentsreportedexperienceasthebestmethod, 54%reportededucation,and29%reportedusingmentors.1Thechartbelowreportsthenumberof respondentschoosinganyorall threemethodsofdeveloping HowDoesOneDevelopEach eachoftheSteward Competency? competencies. 120 100 TheFormalEduccategoryis 80 listedinthesurveyasFormal 60 educationprogram/seminar. 40 FormalEduc 20 Experience 0 Mentor Foropenendedquestionsabouthowrespondentsbuilteachoftheirowncompetencies,respondentsreport thefollowing: Number: ResponseCategory: Description: Experience Experience,industryexperience,auditexperience 387 Education Education,university,CAtraining,Canadiansecurities 340 courses,industryseminars,seminarsfromriskmanagement orinsurancecompanies Onown Usingobservation(6,includingaskingquestionsand 98 listeningcarefully),computertools(1),orselfstudy(91) Workingwithothers Networkingandteamwork 70 Mentor Mentor 60 Discussions Discussionswithauditors(20),consultants(8),customers 50 (3),lawyers(6),andvendors(13,includinginternalITstaff) Total 1,0052
1

Thepercentagesaddtomorethan100%becauserespondentscanchoosemorethanonemethod.Thesamequestionforeach competencywillbereportedinthiswayaswell. 2 Similartothequestionofhowtobestdevelopeachcompetency(seenote1),respondentsanswerthisopenendedquestionwith multiplemethodsofhowtheydevelopedtheirowncompetencies.Thusthetotalof1,005isfargreaterthanthenumberof respondents.

NumberofRespondents

13

Overall,about61%ofrespondentsbelievedStewardcompetenciesshouldbedevelopedearlyinacareer,50% saidmiddle,and12%saidlateinacareer.3RespondentsreportthefollowingStewardcompetenciesin particularshouldbedeveloped early: WhenDoesOneDevelopEach Accountingknowledge Competency? Understandingof systems,processesand 120 internalcontrolsover 100 financialinformation 80 Workingknowledgeof 60 40 riskmanagement,budget Early 20 andforecastingtools Middle 0 Late Competenciessuchasfinancial reporting,fraudprevention /detection/investigation,and informationsystems/information needsappeartorequire attentionbothearlyandinthemiddleofonescareer.Knowledgeofinvestmentandcreditrisksaswellas knowledgeofthebusinessenvironmentarebestdevelopedinthemiddleofonescareer.

OperatorRole
FollowingisthelistofcompetenciesundertheOperatorrole: 1. Staffplanning(Staff) 2. Projectmanagement(Proj) 3. Staffmanagement,empowerment,teambuilding,andaccountability(Mng) 4. Corporatefinance(Corp) 5. Treasuryandinvestmentmanagement(Treas) 6. Mergersandacquisition,strategicalliances(M&A) 7. Outsourcing(Outs) 8. Achievement/resultsorientation(Results) 9. Organizationalandadministrativeskills(Admin) ImportanceofEachOperatorCompetency Asthechartbelowreports,respondentsrankedallOperatorcompetenciesasatleastmoderatelyimportant. Staffmanagement,empowerment,teambuilding,andaccountabilityrankedasmostimportant.Outsourcing receivedthelowestlevelofimportance.

Thepercentagesaddtomorethan100%becauserespondentscanchoosemorethanonetimeperiod.Thesamequestionforeach competencywillbereportedinthiswayaswell.

NumberofRespondents

14

ImportanceofEachCompetency
5 4.5 4 3.5 3 2.5 2 1.5 1 0.5 0 Staff Proj Mng Corp Treasury M&A Outs Results Admin Importance: 1=unimportant 2=somewhat unimportant 3=moderately important 4=important 5=critical

DevelopingEachOperatorCompetency

Asreportedby73%ofrespondents,experienceisthebestmethodfordevelopingcompetencieswithinthe Operatorrole.Fallingmuchloweriseducation(39%)andengagingamentor(35%ofrespondents).Itappears thatonlycorporatefinance,treasuryandinvestmentmanagementarebestdevelopedprimarilythroughsome kindofformaleducation.Seethechartbelow.

HowDoesOneDevelopEachCompetency?
90 80 70 NumberofRespondents 60 50 40 30 20 10 0 Staff Proj Mng Corp Treasury M&A Outs Results Admin FormalEduc Experience Mentor

15

Resultsoftheopenendedquestionaskinghowrespondentsdevelopedtheirowncompetenciesare summarizedasfollows: ResponseCategory: Description: Number: Experience Experience,auditexperience,runningownbusiness 382 Education Education,university,extracurricularactivitiesatschool, 138 CAtraining,internaltraining,corporatepractices,DDI seminars,CBVprogram,CFcourse Onown Usingobservation(14,includinglearningfrommistakesand 49 benchmarking)andselfstudy(35,includingreading businesspress) Workingwithothers Networking,teamwork,peerreview,workingwithHR 30 Mentor Mentor 67 Discussions Discussionswithconsultants(13),investmentbankers(10), 33 lawyers(5),andvendors(5) Total 699 Ninerespondentsindicatedthatoutsourcingdidnotapplytotheirjobs.Therewasnothingsystematically similarabouttheserespondentstoindicatethatoutsourcingislessimportanttoaparticularindustry,jobtitle, orpublicvs.privateorganization.Oneindividualstatedthat,Abettersubjectwouldbecostreductionand containment,asoutsourcingisnottheonlywaytogo.TheCFOCompetencyMapinAppendix2incorporates thesecomments. About43%of WhenDoesOneDevelopEach respondentsfeltthat Operatorcompetencies Competency? shouldbedevelopedearly 90 inacareer,60%reportin 80 themiddleand18% 70 reportlateinacareer.A 60 resultsorientationand 50 administrative Early 40 /organizationalskills 30 Middle wouldbestbedeveloped 20 Late earlyinonescareer.Five 10 individualssuggestedthat 0 anachievement/results orientationismostly innate,whiletwo individualssaidthesame aboutadministrative/organizationskills.Staffplanningandprojectmanagementappeartorequire developmentbothearlyandinthemiddleofonescareer,whiletheremainingcompetenciesseembest developedsomewhereinthemiddle.
NumberofRespondents

16

CatalystRole
FollowingisthelistofcompetenciesundertheCatalystrole: 1. Leadershipandinfluence(Lead) 2. Communication/presentationskillsandexecutivepresence(Comm) 3. Corporategovernance(Govern) 4. Negotiation(Negotiate) 5. Relationshipbuildingandcollaboration(RelBuild) 6. Personalintegrityandethics(Integrity) 7. Changemanagementandflexibility(Change) 8. Selfawarenessandinsight(Insight) 9. Persistence(Persist) ImportanceofEachCatalystCompetency Onceagain,allthecompetenciesarerankedasimportanttotheCFOsjob.Personalintegrityandethics rankedthehighest,asshownbelow,andhadthegreatestconsensus.Onerespondentcharacterizedpersonal integrityasthepriceofadmission.

ImportanceofEachCompetency
5 4.5 4 3.5 3 2.5 2 1.5 1 0.5 0 Lead Comm Govern Negotiate RelBuild Integrity Change Insight Persist

Importance: 1=unimportant 2=somewhat unimportant 3=moderately important 4=important 5=critical

DevelopingEachCatalystCompetency Overall,80%ofrespondentsreportthatexperienceisthebestwaytodeveloptheCatalystcompetencies comparedtomentors(47%)andeducation(33%).CorporategovernanceistheonlyCatalystcompetencyto developprimarilythroughformaleducation.Alltheothercompetenciesareachievedprimarilythrough experience.

17

HowDoesOneDevelopEachCompetency?
100 90 NumberofRespondents 80 70 60 50 40 30 20 10 0 FormalEduc Experience Mentor

Resultsoftheopenendedquestionaskinghowrespondentsdevelopedtheirowncompetenciesare summarizedasfollows: ResponseCategory: Description: Number: Experience Experience,publicaccountingexperience,parental 280 influence,experienceworkingfordifferentorganizations, trialanderror,workinginsales Education Education,university,extracurricularactivitiesatschool, 126 CAtraining,ICD,DDI,humanbehaviorcourses,teamwork inuniversitycourses,mediatraining Onown Usingobservation(13)andselfstudy(90,includingown 103 insight,learningwhatmotivatesothers,examiningmistakes ofothers,practice,readingfinancialpress,beinghumbled) Mentor Mentor 80 o Workingwithothers Networking,teamwork,peerreview(360 feedback), 19 volunteering(withjuniorachievement,charities,volunteer toleadprojects) Discussions Discussionswithauditcommittee(1),communications 9 experts(3),customers(1),investmentbankers(1),and lawyers(3) Total 617 SomerespondentsfeltthatmanyCatalystcompetenciesareatleastpartiallyinnatebutcanbefurther developedthroughothermeans.Afewindividualsbelievedcertaincompetencieswereabsolutelyinnateand 18

cannotbedeveloped.Followingisalistofcompetenciesandthenumberofrespondentsindicatingtheycant bedeveloped: Relationshipbuildingandcollaboration(1respondent) Personalintegrityandethics(7) Changemanagementandflexibility(2) Selfawarenessandinsight(1) Persistence(7) Onerespondenttellsaninterestingstorywithrespecttoselfawarenessandinsight:: Ilearnedtoacceptmylimitations.Butalsotofocusonlifebalance.Followingamajorproject whereIworkeddayandnight,Iwascalledto[mysuperiors]officeandtoldtogoawayfortwoweeks andreflectonwhatisimportanttomeinlife.[Mysuperior]remindedmethatoneneedstospend timereflectingandfocusingonallaspectsofone'slife,includingfamily. Overall,61%ofrespondentsreportthatCatalystcompetenciesshouldbedevelopedearly,54%sayinmid career,and21%saylateinacareer.Communication/presentationskillsandexecutivepresence,personal integrityandethics,self awarenessandinsight, WhenDoesOneDevelopEach andpersistenceshould Competency? bedevelopedearlyin 100 onescareer. 90 Leadershipand 80 relationshipbuilding 70 shouldbedeveloped 60 bothearlyandinthe 50 Early middle,whilethe 40 remaining Middle 30 competenciesare 20 Late primarilydevelopedin 10 0 themiddleofones career.

StrategistRole
FollowingisthelistofcompetenciesundertheStrategistrole: 1. Goalsettingandvisioning(Goal&Vision) 2. Strategicriskmanagement(StratRiskMgt) 3. Strategicthinkinganddecisionmaking(StratThink) 4. Performancemanagementintegration(PerfMgmtInteg) 5. Criticalthinking(Critical) 6. Managingambiguity(Ambiguity) 7. Dedicationtocontinuousimprovement(ContImprove) 19

NumberofRespondents

8. Advocate/ambassadorfortheorganization(Advocate) ImportanceofEachStrategistCompetency AswithCatalystcompetencies,alltheStrategistcompetenciesaredeemedtobequiteimportant.Both strategicandcriticalthinkingwererankedthehighest,withthegreatestconsensusoncriticalthinking.

ImportanceofEachCompetency
5 4.5 4 3.5 3 2.5 2 1.5 1 0.5 0 Goal& Vision StratRisk StratThink PerfMgmt Critical Mgt Integ Ambiguity Con Advocate Improve Importance: 1=unimportant 2=somewhat unimportant 3=moderately important 4=important 5=critical

DevelopingEachStrategistCompetency

Accordingto81%ofrespondents,virtuallyalltheStrategistcompetenciesarebestdevelopedthrough experience.Mentoringwaschosensecond(44%)andeducationlast(30%).Belowisthechartofhoweach competencyshouldbedeveloped.

20

HowDoesOneDevelopEachCompetency?
90 80 NumberofRespondents 70 60 50 40 30 20 10 0 Goal& StratRisk Strat Vision Mgt Think Perf Mgmt Integ Critical Ambiguity Con Advocate Improve FormalEduc Experience Mentor

Resultsoftheopenendedquestionaskinghowrespondentsdevelopedtheirowncompetenciesare summarizedasfollows: ResponseCategory: Description: Number: Experience Experience,learningfromcompetitors,gettingburned, 224 establishandworktowardcommongoals Education Education,university,extracurricularactivitiesatschool, 104 CAtraining,seminarsfromDDAandTheDemingCharter Mentor Mentoringfromseniormanagementandboardmembers 66 Onown Usingobservation(8)andselfstudy(51,includingpractice, 59 selfdiscipline,askingalotofquestions).Beingproudand believinginwhatyoudo Workingwithothers Networking,teamwork,peerreview(360ofeedback), 10 volunteering(takingopportunitiestospeakbeforeexternal groups,joiningactioncommittees) Discussions Discussionswithauditor(2)andconsultants(1) 3 Total 466 Fiverespondentsindicatedthatdedicationtocontinuousimprovementwasinnate.

21

Takentogether,Strategistcompetenciesshouldbedevelopedduringthemiddleofacareer,asreportedby 66%ofrespondents.44% reportthatStrategist WhenDoesOneDevelopEach competenciesshouldbe developedearly,while31% Competency? saidlateinacareer. 90 Accordingtorespondents, 80 goalsettingandvisioning, 70 criticalthinking,and 60 continuousimprovement 50 shouldbegintobe 40 developedearlyinones Early 30 career.Theremainder Middle 20 shouldbegininthemiddle. Late 10 Thesecompetenciesalso 0 receivedthehighestscores fordevelopinglateinones career.

FurtherAnalyses
ItisimportanttounderstandwhetherparticulargroupsofindividualsviewtheCFOrolesandcompetencies differently.Weexaminedwhetherrespondentsfrompublicvs.privateorganizationsdiffered,andwhether CFOsvs.nonCFOsrespondeddifferently.Overall,therewerenosignificantdifferencesinresponsestothe fourrolesofCFOandCEO.However,wefoundseveraldifferencesintheanswerstoquestionsaboutthe importanceofcertaincompetenciesaswellasaboutthedevelopmentcertaincompetencies. Publicvs.PrivateOrganizations

Thoseinpublicorganizationsthoughtthefollowingcompetenciesweresignificantlymoreimportant: o externalfinancialandregulatoryreportingknowledge(Steward) o mergersandacquisitions,strategicalliances(Operator) o strategicthinkinganddecisionmaking(Strategist) o criticalthinking(Strategist) Thoseinprivateorganizationsthoughtthefollowingcompetenciesweresignificantlymoreimportant: o Workingknowledgeofriskmanagement,budgetandforecastingtools(Steward) o Understandingoffinancialinformationsystemsandinformationalneedsofdecisionmakers (Steward) o Organizationalandadministrativeskills(Operator) Thoseinprivateorganizationsuseeducationtodevelopleadershipandinfluenceskillssignificantlymore thanthoseinpublicorganizations.

NumberofRespondents

22

CFOvs.nonCFOs

ThosewhoareCEOsthoughtthefollowingcompetenciesweresignificantlymoreimportantthanthose whoareCFOs: o Understandingoffinancialinformationsystemsandinformationalneedsofdecisionmakers (Steward) o Fraudprevention,detection,andinvestigation(Steward) o Organizationalandadministrativeskills(Operator) NonCFOsuseeducationsignificantlymorethanCFOstodevelopthefollowingcompetencies: o Externalfinancialandregulatoryreportingknowledge(Steward) o Staffplanning(Operator) o Relationshipbuildingandcollegiality(Catalyst) o Changemanagementandflexibility(Catalyst) o Selfawarenessandinsight(Catalyst) CFOsusementorssignificantlymorethannonCFOstodevelopchangemanagementandflexibility (Catalyst). CFOsthoughtthatCatalystcompetenciesshouldbedevelopedprimarilyduringthemiddleofacareer,
whilenonCFOsthoughttheyshouldbedevelopedearlyon.Thisdifferenceisespeciallytrueforcorporate governance. CFOsalsothoughtgoalsetting/visioning(Strategist)shouldbedevelopedprimarilyinthemiddleofa career,whilenonCFOsthoughtearlyon. CFOsuseexperiencesignificantlymorethannonCFOsindevelopingcriticalthinkingskills. Relativetoeachother,CFOsusemoreexperienceandmentorswhilenonCFOsusemoreeducationin developingseveralcompetencies.Additionally,CFOsfeelthatthemiddleofacareerisasuitabletimeto developcertainCatalystandStrategistcompetencies,versusnonCFOswhosuggestearlier.

SummaryandImplications
Summary SixoftheeightmostimportantcompetenciesfallwithintheCatalystorStrategistroles.Theyare,inorder: o Personalintegrityandethics(4.8average,Catalystrole) o Criticalthinking(4.6,Strategistrole) o Communication/presentationskillsandexecutivepresence(4.6,Catalyst) o Strategicthinkinganddecisionmaking(4.6,Strategist) o Leadershipandinfluence(4.6,Catalyst) o Understandingthebusinessenvironment(4.5,Steward) o Goalsettingandvisioning(4.4,Strategist) o Staffmanagement,empowerment,teambuilding,andaccountability(4.4,Operator) SevenoftheleastimportantcompetenciesfallwithintheStewardandOperatorroles.However,these competenciesstillrankabovemoderateimportance.Theyare,inorderofimportanceranking: o Corporategovernance(4,Catalyst) o Mergersandacquisitions,strategicalliances(3.9,Operator) o Treasuryandinvestmentmanagement(3.9,Operator) 23

o Investmentandcreditriskknowledge(3.8,Steward) o Projectmanagement(3.8,Operator) o Staffplanning(3.6,Operator) o Fraudprevention,detection,investigation(3.6,Steward) o Outsourcing(3.2,Operator) Thesoftskillsfoundmostimportantbyrespondentsaresimilartothoseidentifiedinthepriorliterature asbestinclass,andaresometimesfoundtobedeficientinCFOs. Overall,respondentsfoundexperiencetobethebestwaytodevelopcompetencies,especiallyinthe CatalystandStrategistroles.However,educationandmentorshiparealsosignificantandimportantfor wellroundeddevelopment. Thevastmajorityofcompetenciesshouldbedevelopedearlyandcontinueonthroughthemiddleofones career.Latedevelopmentisalsoacceptable,butnotnearlyasfrequent.TheStrategistrolehadthe highestleveloflatedevelopment. Implications

CAsshouldcarefullydevelopallcompetencies,butpayparticularattentiontoseveralofthesoft
competencieswithintheCatalystandStrategistroles.Beingespeciallycompetentinthesoftskillscanset aCAapartfromothers. CAsandfutureCAsshouldvolunteerthroughouttheirlifetimetodevelopseveralsoftcompetencies. Volunteeringcantakeanyofthefollowingforms: o Atschool,insports,studentcouncilandotherextracurricularactivities o Atwork,toleadorparticipateonspecialteamsorcommittees,andtalkinfrontofgroupssuchas businessclubs,investors,orindustrygroups o Inlife,tohelpcharitiesorsitontheirboards TheICAOandQueensUniversityshouldconsiderthemanyopportunitiesforearlyandmidcareer educationalprograms.Thefollowinglistisdevelopedbyexaminingrespondentsanswersforcompetency importanceandwhethereducationisoneofthetoptwobestmethodsofdevelopment: Competency: Workingknowledgeofriskmanagement,budgetandforecastingtools Investmentandcreditriskknowledge Accountingknowledge Externalfinancialandregulatoryreportingknowledge Understandingofsystems,processesandinternalcontrolsoverfinancialinformation Fraudprevention,detection,andinvestigation** Projectmanagement Corporatefinance Treasuryandinvestmentmanagement Mergersandacquisition,strategicalliances Organizationalandadministrativeskills Leadershipandinfluence Communication/presentationskillsandexecutivepresence Corporategovernance Earlyor Middle* both both early both both both both both both middle both both both both 24

Negotiation both Personalintegrity,ethics,abilitytoidentifyethicaldilemmasandmakeethicaldecisions both Strategicriskmanagement middle Strategicthinkinganddecisionmaking both Criticalthinking both Performancemanagementintegration both *EarlyeducationalprogramsarelikelyincorporatedintoUniversityundergradcourseworkandCAtraining, whereaseducationalprogramsduringthemiddleofacareerarelikelyprovidedthroughexecutiveeducation, postgraduateprograms,andCPE. **Manyoftheabovecompetenciesarealreadyincorporatedintoexistingeducationalprograms.Thebolded competenciesrepresentopportunitiesforexpandingorofferingnewprograms.

GeneralQuestions
Thesurveyendswithbroadandopenendedquestionsregardingwhatshouldbeaddedordeletedfromthe list,howthecompetenciesorrolesmaychangein5to10years,andhowthecompetenciesorrolesare differentforCEOsvs.CFOs. Respondentshadseveralsuggestionsforaddingcompetencies,includingthefollowing: Understandingtheneedsofdifferentstakeholdersandhowtoworkwiththem(e.g.presentations madetotheboardrequiredifferentskillsthanthosemadetolabourunions) Intellectualpropertymanagement Bridgebuilderwithdifferentgroupswithintheorganization Socialconscience Crossoperationalexperience Businessdevelopmentandoperations Marketing Emotionalcontrol Forwardthinker Levelheadedness Respectfrompeers Severalrespondentsindicatedthatworkingwithpeopleatalllevelsiscritical.Thisthemeincludeddeveloping subordinates,teambuilding,empoweringsubordinates,andnetworking.TheCompetencyMapinAppendix2 includestheseitems. TheFutureCFO Animportantquestioninthesurveyiswhetherandhowtheimportanceofcompetenciesmaychangeover thenext5to10years.Answerswerewideranging,andaresummarizedasfollows: Lessaccountingandmorebusinessdevelopmentandoperations RefocusontechnicalskillswiththeimplicationsofIFRS Implicationsofenvironmentalfactorsonthebusiness Moreintegrationofregulatoryenvironmentoutlookwithbusinessenvironmentoutlook 25

Betterandcontinuouscommunicationwithmanystakeholders Informationmanagement Outsourcingasmoreindividualsretire Asglobalizationincreases,betterunderstandingoftheworldeconomyandbeingmultilingual Evenmoreadaptabilityandflexibility Ethicsandsocialresponsibility Riskmanagementduetoheightenedcorporaterisk ITcapabilities Corporategovernanceandinternalcontrols

Giventhislist,itappearsthateachrolewillremainimportantwithitsownfutureconsiderations(i.e.IFRS relatestoSteward,outsourcingrelatestoOperator,corporategovernancerelatestoCatalyst).However,it appearsthatmostoftheitemsrelatetotheStrategistrole(i.e.implicationsofenvironmentalfactors, communicationwithstakeholders,understandingofworldeconomy,adaptabilityandflexibility,ethicsand socialresponsibility). RoleDifferences:CEOandCFO Finally,thesurveyasksanopenendedquestionregardingthedifferencesintheserolesandcompetenciesfor aCEOvs.CFO.Thethemeintheanswersisunmistakable.TheCEOmustexcelintheStrategistcompetencies, aswellassomeoftheCatalystcompetencies.Ofthosewhorespondedtothisquestion,almost75%listed visionary,strategist,externalfocusonstakeholders,macrolevel,andstronginterpersonalskillsasmore importanttoaCEOthanaCFO.Several(20%)indicatedthattheseskillsarealsorequiredforCFOsbutthe weightingisgreaterforCEOs. CFOQualifications Giventhattherearemanywaystodevelopcompetencies,respondentswereaskedabouttheimportanceof eachofthefollowingqualificationsforobtainingaCFOposition.Selectionsincludethefollowing: 1. Multiindustryexperience(MultiInd) 2. Organizationsindustryexperience(OrgInd) 3. Internationalexperience(Intl) 4. Experienceoutsidefinancefunction(NotFin) 5. MBA 6. Otherpostgraduatedegree(OtherGrad)? Themostimportant,onaverage,isexperiencewithintheorganizationsownindustry.Educationintheform ofanMBAorotherpostgraduatedegreereceivedthelowestlevelofimportancefromrespondents.There areseveralinterestingdifferencesinresponsesduetodemographics.Followingisasummary: Thefollowinggroupsfeltinternationalexperiencewasmoreimportant: Youngerrespondentsvs.olderrespondents NonCFOsvs.CFOs 26

Respondents fromsmaller companiesvs. larger companies

4 3.5 3

ImportanceofCertainQualificationsforCFO
Importance:

1=unimportant 2.5 Thefollowinggroups 2=somewhat 2 feltexperience unimportant 3=moderately outsidethefinance 1.5 important functionwasmore 1 4 = important important: 5=critical 0.5 NonCFOsvs. 0 CFOs Respondents MultiInd OrgInd Intl NotFin MBA OtherGrad fromsmaller companiesvs.largercompanies ThefollowinggroupsfeltanMBAwasmoreimportant: Respondentsintheircurrentjobmorethan20yearsvs.thoseintheirjobslessthan20years Respondentsinthefinancialservices,insuranceandrealestateindustriesvs.thoseinmanufacturing Thefollowinggroupsfeltotherpostgraduatedegreesweremoreimportant: Olderrespondentsvs.youngerrespondents Respondentswerealsoaskedwhetheracareerpathwithinindustry(ratherthanthetraditionalpaththrough CAfirms)wouldbeequallywellsuitedforaCFOrole.Respondentsappeartobedividedwith38respondents (45%)answeringyesand47respondents(55%)answeringno.Whenaskedwhy,respondentsoften articulateddetailsabouthowtheirowncareerpathservedthemwell.

SummaryandImplicationsfromGeneralQuestions
Summary RespondentsidentifyfutureissueswithineveryCFOrole,withthepredominancebeingwithinthe Strategistrole. TheCEOroleissomewhatsimilartotheCFOrolebutwithmuchgreaterweightingontheroleof Strategist,andgreaterweightingonthatofCatalyst. IndustryexperienceisimportantforbecomingaCFO. Internationalexperienceismoreimportanttoyoungerindividualsandisidentifiedasbecomingmore importantinthefuture. Respondentsaredividedandappeartobestronglyopinionatedbasedontheirownexperienceon whetheranindustrypathisequallywellsuitedtoaCFOpositionasatraditionalpaththroughCAfirms.

27

Implications CAsshouldseekoutindustryexperience,experiencewithinnonfinancefunctions,andinternational experience. ICAO/Queensshouldconsiderofferingspecialindustrytrainingandnonfinancetrainingsessions. UniversityMBAprogramsshouldfocusmarketingeffortsonindividualsinthefinancialservices,insurance, andrealestateindustries. Organizationsshouldconsiderofferingandemployeeswithinfinanceshouldrequestjobrotation.

FutureQuestions
Severalquestionsnaturallyarisefromsurveyresponses.Followingarethreekeyquestionsthatshouldbe considered: WhydoCFOstendtouseeducationlessthannonCFOs(vs.experienceandmentorship),andwhydo publicorganizationsuseeducationlessthanprivateorganizationsforleadershipdevelopment? Whatarethefactorsthatcontributetothedifferencesbetweenpublicandprivateorganizations?(The resultsofthissurveyincludedonly25respondentsfrompubliclyheldorganizations;ofthose,14were CFOs.) WhatarethecompetenciesrequiredofaCEO?(Thissurveyexaminedtheimportanceofthefourrolesand didnotgointodetailaboutCEOcompetencies).

28

V.

CompetencyMap

Appendix2containstheCFOCompetencyMapandrelateddevelopmentideasforCAs.Thecolouredbars visuallyshowatwhatpointinacareerearly,middle,orlateaCAshouldbedevelopingeachcompetency. Eachbarapproximatesthepercentageanswerstothetimingquestioninthesurvey.Withineachbar,the Mapindicatestherankingofthetopthreemethodsofdevelopingthecompetencyexperience,education, andmentor.ThepagesthatfollowtheMapprovidethedefinitionsofeachroleandcompetency,andspecific waystodevelopeachcompetencyastakenfromthesurvey.

29

 VI.

Bibliography

TheAgileCFO.(2006).IBMGlobalBusinessServices. Basedonananalysisofeffectivelyfunctioningfinancefunctions,thispaperconcludesthatto acceleratetheprovisionofinsight,CFOsmustbeableto: Updatethefinancestrategytoreflectchangestobusinessgoals.Updateandalignthecurrent financestrategywithbusinessstrategyandrequirementsforinformationandinsight. Establishanenterpriseprocessframework.Promoteandensureexecutiveownershipofdataand processes,implementaformalprogramtoprovidedataandprocessstandards,anddrive commonprocessesenterprisewide. Integratetheportfolioofcapabilities.Utilizebothinternalsharedservicesandexternaloutsourcing fornonstrategicactivities;providedifferentiatingfunctionsthroughtheretainedorganization. BalancingRiskandPerformancewithanIntegratedFinanceOrganization:TheGlobalCFOStudy2008.(2008). IBMGlobalBusinessServices. ThisextensivestudyexploredthewaysCFOsandseniorfinanceprofessionalsareaffectedbyanddeal withperformance,risks,operationalleversandgovernance.Theprimarythrustoftheresearch focusedonhypothesesabouttheCFOschoicetousedifferingfinancialmanagementgovernance models,andtheirroleandeffectivenessinriskmanagement. DesRoberts,G.(2003).CFOs:Areturntocorevalues.CAMagazine,March. Eldridge,C.B.andBrousseau,K.R.(2007).NavigatingtheUncertainRoad FromCONTROLLERtoCFO:TheLeadershipImperative.KornFerryConsulting. TheinformationpresentedinthisreportisbasedontheminingoftheKornFerrydatabasewhich consistsof500,000profilesofbusinessexecutivesworldwide.Thisanalysissuggeststhateffective CFOstendtofocusonpeopleissuesaswellastheirtraditionalfinancialgovernanceresponsibilities. Theytendtoleverageinterpersonalrelationshipstohelpthemmakebetterdecisionsandtend towardsahighlyinteractive,consensusorientedleadershipstyle.Incomparison,controllerstendto bemoretaskfocusedandlessinclinedtobuildconsensus.ThereportconcludesthatCFOsuccess hingesonthedevelopmentofstrong,positiverelationshipsandtheestablishmentofatrusting networkofpeopleatdifferentlevels. 30

TheFourFacesoftheCFO.(2007).Deloitte.Source: http://www.deloitte.com/dtt/article/0,1002,cid%253D181433,00.html,accessedApril1,2008. AframeworkthatstructurestheCFOrolebasedon4faces:Catalyst,Strategist,Operatorand Steward.

Militello, F. C. and Schwalberg. (2002). Leverage Competencies: The key to financial leadership success. Upper Saddle River, NJ: Prentice Hall.

Propeo Perspectives: CFO. (2008). Propeo Executive Search.

Propeoisanexecutivesearchfirmandtheylistfivekeycompetencies/abilitiesthatcompaniesare lookingforinaCFO:
IntegratingtheFinancefunctionwiththerestoftheorganization,redefiningitsroleandretrainingstaffto fullyunderstandbusinessoperationsanddrivers Strategicallythinkingthroughhowthebusinessshouldbestapplyitscapitalresources,bringingtobear traditionalpowersofanalysisandcommercialjudgmenttoanswerthisquestion Developingmanagementcontrolmethods,producingnewsetsofstrategicmeasuresthatmanagerscanuse toanticipatechallengesandmonitorprogress Puttinginplacelongtermcostmanagementprogramsthatreplacetraditional"costaccounting"activities

Tucker,Simon.(2007).TheCFO2.0:FromBeanCountertoSomeoneYouCanCountOn.BusinessFoundation. ThisprovidesabriefcommentontheevolutionoftheCFOrolefrombeancountertoonethat requiresamuchmorestrategicorientationthatmustbalanceregulatorypressures,theneedto performaspromisedtothestakeholdersandgrowthyearafteryear.

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Appendix1:TheSurvey(administeredviatheweb)

ICAO CFO Competency Survey

Introduction

Thank you for taking the time to complete this 10 20 minute survey. By doing so, you will assist Chartered Accountants in planning a career towards becoming a CFO for a publicly-held company. The purpose of this research is to: 1. identify the key competency needs that recently qualified Chartered Accountants need to develop through the various stages of their careers with the ultimate goal of becoming a Chief Financial Officer in a public company, and 2. identify the key areas that a Chief Financial Officer needs to address to advance to Chief Executive Officer if and when the opportunity arises. Please read the Combined Letter of Information and Consent Form and print a copy for your own records.
1. After you have read the consent form, please choose the appropriate button below. j I have read the consent form and agree to participate k l m n j I do not agree to participate k l m n

33

ICAO CFO Competency Survey

The Four Roles of the CFO
Previous Next

Click here to see the list of competencies and definitions.

Following are four roles of the CFO: Steward Accounting, control, risk management and asset preservation are the province of the Steward. The Steward must ensure company compliance with financial reporting and control requirements. Information quality and control rationalization are top-of-mind issues for the Steward. Operator Efficiency and service levels are the primary areas of focus for the Operator. The Operator must dynamically balance cost and service levels in delivering on the finance organization's responsibilities, and adapt finance's operating model as necessary. Talent management, offshoring and shared service decisions are often the key issues to be addressed. This role is oriented toward best practices of the finance function itself. Catalyst The Catalyst is an agent for change, focused on establishing a value attitude throughout the organization. The Catalyst gains business alignment to identify, evaluate and execute strategies, and serves as a business partner to other decision makers including business unit leaders, the chief information officer, and sales and marketing leaders. The Catalyst establishes a structure of enterprise accountability for results, drives enterprise execution and gains acceptance from business management as the organization's catalyst. This role is oriented toward best practices of the entire organization. Strategist The Strategist is a director, focused on defining the future of the company to enhance business performance and shareholder value. The Strategist provides a financial perspective on innovation and profitable growth; leverages this perspective to improve riskawareness, strategic decision-making and performance management integration; and translates the expectations of the capital markets into internal business imperatives. This role is oriented toward long-term, strategic issues, and is outwardly directed. 1. Do the 4 roles of the CFO described above accurately capture the main activities of the CFO? Yes j No k l m n If no, please explain (i.e., what other roles might you include or which roles might you remove?)

[Top]

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ICAO CFO Competency Survey

2. Please indicate how important each of the different roles is to the effective functioning of a CFO: Unimportant Steward Operator Catalyst Strategist j k l m n j k l m n j k l m n j k l m n Somewhat Unimportant j k l m n j k l m n j k l m n j k l m n Moderately Important j k l m n j k l m n j k l m n j k l m n Important j k l m n j k l m n j k l m n j k l m n Critical j k l m n j k l m n j k l m n j k l m n

3. Please indicate how much time a CFO spends on each of these roles: Least 1 Steward Operator Catalyst Strategist j k l m n j k l m n j k l m n j k l m n 2 j k l m n j k l m n j k l m n j k l m n 3 j k l m n j k l m n j k l m n j k l m n 4 j k l m n j k l m n j k l m n j k l m n Most 5 j k l m n j k l m n j k l m n j k l m n [Top] 4. Please indicate how important each of the different roles is to the effective functioning of a CEO: Unimportant Steward Operator Catalyst Strategist j k l m n j k l m n j k l m n j k l m n Somewhat Unimportant j k l m n j k l m n j k l m n j k l m n Moderately Important j k l m n j k l m n j k l m n j k l m n Important j k l m n j k l m n j k l m n j k l m n Critical j k l m n j k l m n j k l m n j k l m n [Top]

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ICAO CFO Competency Survey

Steward
Previous Next

This section lists eight or nine competencies within each of the four CFO roles. To view the definition of each competency, click on the link below. Click here to see the list of competencies and definitions. Competencies Required for the Steward Role Accounting, control, risk management and asset preservation are the province of the Steward. The Steward must ensure company compliance with financial reporting and control requirements. Information quality and control rationalization are top-of-mind issues for the Steward.
1. Rate the importance of the following competencies for the CFO in the role of Steward. Unimportant Working knowledge of risk management, budget and forecasting tools Investment and credit risk knowledge Accounting knowledge (GAAP and taxation) External financial and regulatory reporting knowledge Understanding of financial information systems and informational needs of decision makers Understanding of systems, processes and internal controls over financial information Understanding the business environment Fraud prevention, detection and investigation [Top] j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n Somewhat Unimportant j k l m n Moderately Important j k l m n Important j k l m n Critical j k l m n

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ICAO CFO Competency Survey

2. Which are the best ways to develop the following competencies in the role of Steward? (Select any or all.) Formal education program/seminar On own through job experience Working knowledge of risk management, budget and forecasting tools Investment and credit risk knowledge Accounting knowledge (GAAP and taxation) External financial and regulatory reporting knowledge Understanding of financial information systems and informational needs of decision makers Understanding of systems, processes and internal controls over financial information Understanding the business environment Fraud prevention, detection and investigation [Top] c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g With the help of a mentor c d e f g

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ICAO CFO Competency Survey

3. From your experience, please describe the ways in which you developed the following competencies in the role of Steward. (Up to 100 characters.) Working knowledge of risk management, budget and forecasting tools Investment and credit risk knowledge Accounting knowledge (GAAP and taxation) External financial and regulatory reporting knowledge Understanding of financial information systems and informational needs of decision makers Understanding of systems, processes and internal controls over financial information Understanding the business environment Fraud prevention, detection and investigation [Top]

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ICAO CFO Competency Survey

4. Approximately when during one's career should the following competencies be developed in the role of Steward? (Select any or all.) Early Working knowledge of risk management, budget and forecasting tools Investment and credit risk knowledge Accounting knowledge (GAAP and taxation) External financial and regulatory reporting knowledge Understanding of financial information systems and informational needs of decision makers Understanding of systems, processes and internal controls over financial information Understanding the business environment Fraud prevention, detection and investigation [Top] c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g Middle c d e f g Late c d e f g

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ICAO CFO Competency Survey

Operator
Previous Next

Click here to see the list of competencies and definitions. Competencies Required for the Operator Role Efficiency and service levels are the primary areas of focus for the Operator. The Operator must dynamically balance cost and service levels in delivering on the finance organization's responsibilities, and adapt finance's operating model as necessary. Talent management, offshoring and shared service decisions are often the key issues to be addressed. This role is oriented toward best practices of the finance function itself.
1. Rate the importance of the following competencies for the CFO in the role of Operator. Unimportant Staff planning Project management Staff management, empowerment, team building, and accountability Corporate finance Treasury and investment management Mergers and acquisitions, strategic alliances Outsourcing Achievement / results orientation Organizational and administration skills [Top] j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n Somewhat Unimportant j k l m n j k l m n j k l m n Moderately Important j k l m n j k l m n j k l m n Important j k l m n j k l m n j k l m n Critical j k l m n j k l m n j k l m n

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ICAO CFO Competency Survey

2. Which are the best ways to develop the following competencies in the role of Operator? (Select any or all.) Formal education program/seminar On own through job experience Staff planning Project management Staff management, empowerment, team building, and accountability Corporate finance Treasury and investment management Mergers and acquisitions, strategic alliances Outsourcing Achievement / results orientation Organizational and administration skills [Top] 3. From your experience, please describe the ways in which you developed the following competencies in the role of Operator. (Up to 100 characters.) Staff planning Project management Staff management, empowerment, team building, and accountability Corporate finance Treasury and investment management Mergers and acquisitions, strategic alliances Outsourcing Achievement / results orientation Organizational and administration skills [Top] c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g With the help of a mentor c d e f g c d e f g c d e f g

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ICAO CFO Competency Survey

4. Approximately when during one's career should the following competencies be developed in the role of Operator? (Select any or all.) Early Staff planning Project management Staff management, empowerment, team building, and accountability Corporate finance Treasury and investment management Mergers and acquisitions, strategic alliances Outsourcing Achievement / results orientation Organizational and administration skills [Top] c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g Middle c d e f g c d e f g c d e f g Late c d e f g c d e f g c d e f g

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ICAO CFO Competency Survey

Catalyst
Previous Next

Click here to see the list of competencies and definitions. Competencies Required for the Catalyst Role The Catalyst is an agent for change, focused on establishing a value attitude throughout the organization. The Catalyst gains business alignment to identify, evaluate and execute strategies, and serves as a business partner to other decision makers including business unit leaders, the chief information officer, and sales and marketing leaders. The Catalyst establishes a structure of enterprise accountability for results, drives enterprise execution and gains acceptance from business management as the organization's catalyst. This role is oriented toward best practices of the entire organization.
1. Rate the importance of the following competencies for the CFO in the role of Catalyst. Unimportant Leadership and influence Communication / presentation skills and executive presence Corporate governance Negotiation Relationship building and collaboration Personal integrity and ethics Other Change management and flexibility Self-awareness and insight Persistence j k l m n j k l m n j k l m n j k l m n j k l m n [Top] j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n Somewhat Unimportant j k l m n j k l m n Moderately Important j k l m n j k l m n Important j k l m n j k l m n Critical j k l m n j k l m n

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ICAO CFO Competency Survey

2. Which are the best ways to develop the following competencies in the role of Catalyst? (Select any or all.) Formal education program/seminar On own through job experience Leadership and influence Communication / presentation skills and executive presence Corporate governance Negotiation Relationship building and collaboration Personal integrity and ethics Change management and flexibility Self-awareness and insight Persistence c d e f g c d e f g c d e f g [Top] 3. From your experience, please describe the ways in which you developed the following competencies in the role of Catalyst. (Up to 100 characters.) Leadership and influence Communication / presentation skills and executive presence Corporate governance Negotiation Relationship building and collaboration Personal integrity and ethics Change management and flexibility Self-awareness and insight Persistence [Top] c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g With the help of a mentor c d e f g c d e f g

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ICAO CFO Competency Survey

4. Approximately when during one's career should the following competencies be developed in the role of Catalyst? (Select any or all.) Early Leadership and influence Communication / presentation skills and executive presence Corporate governance Negotiation Relationship building and collaboration Personal integrity and ethics Change management and flexibility Self-awareness and insight Persistence c d e f g c d e f g c d e f g [Top] c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g Middle c d e f g c d e f g Late c d e f g c d e f g

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ICAO CFO Competency Survey

Strategist
Previous Next

Click here to see the list of competencies and definitions. Competencies Required for the Strategist Role The Strategist is a director, focused on defining the future of the company to enhance business performance and shareholder value. The Strategist provides a financial perspective on innovation and profitable growth; leverages this perspective to improve risk-awareness, strategic decision-making and performance management integration; and translates the expectations of the capital markets into internal business imperatives. This role is oriented toward long-term, strategic issues, and is outwardly directed.
1. Rate the importance of the following competencies for the CFO in the role of Strategist. Unimportant Goal setting and visioning Strategic risk management Strategic thinking and decision-making Performance management integration Critical thinking Managing ambiguity Dedication to continuous improvement Advocate / ambassador for the organization [Top] j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n Somewhat Unimportant j k l m n Moderately Important j k l m n Important j k l m n Critical j k l m n

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ICAO CFO Competency Survey

2. Which are the best ways to develop the following competencies in the role of Strategist? (Select any or all.) Formal education program/seminar On own through job experience Goal setting and visioning Strategic risk management Strategic thinking and decision-making Performance management integration Critical thinking Managing ambiguity Dedication to continuous improvement Advocate / ambassador for the organization [Top] 3. From your experience, please describe the ways in which you developed the following competencies in the role of Strategist. (Up to 100 characters.) Goal setting and visioning Strategic risk management Strategic thinking and decisionmaking Performance management integration Critical thinking Managing ambiguity Dedication to continuous improvement Advocate / ambassador for the organization [Top] c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g With the help of a mentor c d e f g

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ICAO CFO Competency Survey

4. Approximately when during one's career should the following competencies be developed in the role of Strategist? (Select any or all.) Early Goal setting and visioning Strategic risk management Strategic thinking and decision-making Performance management integration Critical thinking Managing ambiguity Dedication to continuous improvement Advocate / ambassador for the organization [Top] c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g c d e f g Middle c d e f g Late c d e f g

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ICAO CFO Competency Survey

General Questions
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Click here to see the list of competencies and definitions. Please answer the following general questions.
1. Are there any competencies that do not belong in this list or are included under the wrong role? If so, which ones and why?

2. Are there any other competencies you would add to this list? If so, please explain.

3. Are there any competencies whose importance for a CFO are likely to change in the next 5 to 10 year? If so, which ones and in what way?

[Top] 4. How might these competencies be different for the role of CEO rather than CFO?

[Top]

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ICAO CFO Competency Survey

5. Acknowledging that there are different ways to gain competencies, how important are the following qualifications for being considered for a CFO position (assuming the individual has a CA)? Unimportant Multi-industry experience Organization's industry experience International experience Experience outside finance function MBA Other postgraduate degree Please specify other postgraduate degree: j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n Somewhat Unimportant j k l m n j k l m n Moderately Important j k l m n j k l m n Important j k l m n j k l m n Critical j k l m n j k l m n

6. Do you think a CA career path within industry (rather than the traditional path through CA firms) would be equally well suited for a CFO role? j Yes k l m n Please explain. j No k l m n

[Top]

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ICAO CFO Competency Survey

Demographic Information
Previous Next

Please provide the following demographic information.

1. Age (in years): j Less than 30 k l m n 2. Gender: j Male k l m n 3. What is your job title within your organization? j CEO k l m n j CFO k l m n j VP - Finance k l m n j President k l m n j Executive k l m n Recruiter j Female k l m n j 31 - 40 k l m n j 41 - 50 k l m n j 51 - 60 k l m n j 60 + k l m n

j Other (please specify) k l m n

4. Length of time in current job (in years): j 0-5 k l m n j 6 - 10 k l m n j 11 - 20 k l m n j 20 + k l m n

5. What was your previous job title?

6. Length of time in previous job (in years): j 0-5 k l m n j 6 - 10 k l m n j 11 - 20 k l m n j 20 + k l m n [Top] 7. Do you have a CA certification? j Yes k l m n If yes, how long have you held it (in years)? j No k l m n

8. In which broad industry category does your organization belong? j Agriculture, Forestry, Fishing k l m n j Wholesale Trade k l m n j Mining k l m n j Oil and Gas k l m n j Retail Trade k l m n j Construction k l m n j Finance, Insurance, Real Estate k l m n j Manufacturing k l m n j Transportation & Public Utilities k l m n j Services k l m n j Public Administration k l m n j Other k l m n

9. What is your 4-digit Standard Industrial Classification (SIC) code?

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ICAO CFO Competency Survey

10. Is your organization publicly traded? j Yes k l m n j No k l m n

11. What is the approximate current value of your company's assets (in Canadian dollars)? j Less than k l m n $10 Million j $10 - $100 k l m n Million j $100 - $500 k l m n Million j $500 k l m n $1000 Million j $1 - $10 k l m n Billion j More than k l m n $10 Billion j N/A k l m n

12. What is the approximate value of your company's annual sales (in Canadian dollars)? j Less than k l m n $10 Million j $10 - $100 k l m n Million j $100 - $500 k l m n Million j $500 k l m n $1000 Million j $1 - $10 k l m n Billion j More than k l m n $10 Billion j N/A k l m n

[Top]

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ICAO CFO Competency Survey

Conclusion
This completes the survey. Thank you very much for your time! If you would like to receive information on the results of this survey, please contact Pamela Murphy at pmurphy@business.queensu.ca.

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Appendix2:TheCFOCompetencyMap

MovingFromCAtoCFO: ACompetencyFramework

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MovingFromCAtoCFO:ACompetencyFramework
ThisdocumentassistsCAsindevelopingthecompetenciesnecessaryforbecomingaCFO.Itisbasedonacombinationofpriorliteratureanda comprehensivesurveyofOntarioCsuiteexecutives.Itbeginswithalistof34competenciesstructuredwithinfourgeneralrolesofaCFO: 1) Steward:Accounting,control,riskmanagementandassetpreservationaretheprovinceoftheSteward.TheStewardmustensurecompany compliancewithfinancialreportingandcontrolrequirements.Informationqualityandcontrolrationalizationaretopofmindissuesforthe Steward(8competencies). 2) Operator:EfficiencyandservicelevelsaretheprimaryareasoffocusfortheOperator.TheOperatormustdynamicallybalancecostand servicelevelsindeliveringonthefinanceorganization'sresponsibilities,andadaptfinance'soperatingmodelasnecessary.Talent management,offshoringandsharedservicedecisionsareoftenthekeyissuestobeaddressed.Thisroleisorientedtowardbestpractices ofthefinancefunctionitself(9competencies). 3) Catalyst:TheCatalystisanagentforchange,focusedonestablishingavalueattitudethroughouttheorganization.TheCatalystgains businessalignmenttoidentify,evaluateandexecutestrategies,andservesasabusinesspartnertootherdecisionmakersincluding businessunitleaders,thechiefinformationofficer,andsalesandmarketingleaders.TheCatalystestablishesastructureofenterprise accountabilitydirectedtowardresults,drivesenterpriseexecutionandgainsacceptancefrombusinessmanagementastheorganization's catalyst.Thisroleisorientedtowardbestpracticesoftheentireorganization(9competencies). 4) Strategist:TheStrategistisadirector,focusedondefiningthefutureofthecompanytoenhancebusinessperformanceandshareholder value.TheStrategistprovidesafinancialperspectiveoninnovationandprofitablegrowth;leveragesthisperspectivetoimproverisk awareness,strategicdecisionmakingandperformancemanagementintegration;andtranslatestheexpectationsofthecapitalmarketsinto internalbusinessimperatives.Thisroleisorientedtowardlongterm,strategicissues,andisoutwardlydirected(8competencies). Foreachcompetency,theCompetencyMapindicatesapproximatelywhenduringacareereachcompetencyshouldbedevelopedearly,middle,or lateinadditiontoprioritizinghowtodevelopeachcompetencythrougheducation,experience,orwiththehelpofamentor.Finally,thisMap providesadditionaldetailabouteachcompetency,alongwithwaystodevelopthatcompetency. MostimportantCFOroleandcompetency OntarioCsuiteexecutivesagreethat,althoughallfourCFOrolesareimportant,theStewardroleismostimportant.Ofall34competencies,the executivesagreedthatpersonalintegrity(withintheCatalystrole)isthesinglemostimportantcompetency. Lookingahead Lookingforward5to10years,executivesindicatethatallfourroleswillremainimportantforaCFO,butmorerespondentsindicatedthatthe Strategistrolewillincreaseinimportancethemost.ForthoseinterestedinmovingfromaCFOtoaCEO,theexecutivesbelieveallfourrolesstill applytoaCEObutwithdifferentweightings.TheStrategistroleismostimportantfortheCEO. 55

StewardCompetencies:
Workingknowledgeofriskmanagementbudget, andforecastingtools

.EARLY

.MIDDLE.

..LATE.....

Investmentandcreditriskknowledge Accountingknowledge(GAAPandtaxation) Externalfinancialandregulatoryreporting knowledge

1)experience,2)education,3) mentor 1)experience,2)education,3) mentor 1)education,2)experience,3) mentor 1)education,2)experience,3) mentor 1)experience,2)mentor,3) education

Understandingoffinancialinformationsystemsand informationalneedsofdecisionmakers Understandingofsystems,processesandinternal controlsoverfinancial information Understandingthebusinessenvironment Fraudprevention,detection,andinvestigation

1)experience,2)education,3) mentor 1)experience,2)mentor,3) education 1)education,2)experience,3) mentor

56

OperatorCompetencies:

.EARLY

Staffplanning Projectmanagement Staffmanagement,mentoring,teambuilding, andcreatingaccountability

.MIDDLE 1)experience,2)mentor,3) education 1)experience,2)education,3) mentor

..LATE........

Corporatefinance Treasuryandinvestmentmanagement Mergersandacquisitions,strategicalliances Maximizingcapitalemployed Achievement/resultsorientation

Organizationalandadministrativeskills

1)experience,2)mentor,3) education 1)education,2)experience,3) mentor 1)education,2)experience,3) mentor 1)experience,2)and3)educationand mentor(tied) 1)experience,2)mentor,3) education 1)experience,2)mentor,3) education 1)experience,2)mentor,3) education

57

CatalystCompetencies:
Leadershipandinfluence Communication/presentationskillsand executivepresence Corporategovernance Negotiation Relationshipguidingandcollaboration Personalintegrity,ethics,abilitytoidentify ethicaldilemmasandmake Ethicaldecisions

.EARLY

.MIDDLE

..LATE........

1)experience,2)mentor,3) education

1)experience,2)education,3) mentor 1)education,2)experience,3) mentor 1)experience,2)mentor,3) education 1)experience,2)mentor,3) education

Changemanagementandflexibility Selfawarenessandinsight

Persistence

1)experience,2)mentor,3) education 1)experience,2)mentor,3) education 1)experience,2)mentor,3) education 1)experience,2)mentor,3) education

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 StrategistCompetencies:
Goalsettingandvisioning Strategicriskmanagement Strategicthinkinganddecisionmaking Performancemanagementintegration Criticalthinking Managingambiguity Dedicationtocontinuousimprovement Advocate/ambassadorfortheorganization

.EARLY

.MIDDLE

..LATE........

1)experience,2)mentor,3) education 1)experience,2)education,3) mentor 1)experience,2)mentor,3) education 1)experience,2)education,3) mentor 1)experience,2)mentor,3) education 1)experience,2)mentor,3) education 1)experience,2)mentor,3) education 1)experience,2)mentor,3) education

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CompetenciesfortheStewardRole Steward role: Accounting, control, risk management and asset preservation are the province of the Steward. The Steward must ensure company compliance with financial
reporting and control requirements. Information quality and control rationalization are top-of-mind issues for the Steward.

Competency:
Working knowledge of risk management, budget, and forecasting tools Investment and credit risk knowledge

Description:
Risk management activities such as the use of monitoring, reporting, historical comparisons, evaluation tools, predictive analytics, risk-adjusted forecasts and process controls. Knowledge of budgeting and forecasting for units of an organization and the organization as a whole. Knowledge of risks and returns for investments and credit (e.g. customer credit).

How to Develop (from those who have done it):

Experience in various jobs, trial by fire, discussions with vendors and other experts, university, formal education courses, industry seminars, CA training and experience, CFA training, self instruction through reading or computer assisted tools, learning from mentors. On the job experience, reading financial press, securities courses, interaction with other professionals and experts (such as treasury analysts or investment/commercial bankers), CFA training or CICA CFQ program, learning from mentors. University, CA training, public accounting experience, experience preparing financial statements, reading industry journals and CA magazine, CPE, CRA experience, discussions with auditors or lawyers. University, CA training, public accounting experience, experience preparing financial statements for SEC companies, reading industry journals, CPE, discussions with auditors and company attorneys and regulators, FASB/CICA web sites, Knotia and CFO.com.

Accounting knowledge (GAAP and taxation) External financial and regulatory reporting knowledge

Understanding financial information systems and informational needs of decision makers

Understanding of systems, processes, and internal controls over financial information Understanding the business environment Fraud prevention, detection, investigation

Up-to-date knowledge of generally accepted accounting principles and taxation in Canada and all countries in which the company accesses capital markets. Knowledge of regulatory reporting requirements in Canada and other countries in which the organization does business. If the organization is cross-listed, must understand the requirements of the Sarbanes-Oxley Act of 2002 (SOX) in the United States. Knowledge of industryspecific requirements. Thorough understanding of the informational needs of decision makers within the organization (from top level down through the organization). Overseeing a financial information system that is capable of producing useful information to meet those needs (e.g. budgeting, profitability of products, business units, and customer relationships) Ability to create or oversee IT systems, processes, and internal control policies and procedures to ensure high quality of information. Understanding the environment in which the organization operates. This includes the industry, the regulatory environment, and economic environment, etc. Understanding of the types of fraud that can be committed within the organization and the conditions that often lead to fraud. Continuous monitoring of control systems to watch for weaknesses that could make committing fraud easier. Having a healthy skepticism to investigate possible fraud when red flags appear.

Experience in general as well as in different industries, in an IS group, and in SOX work; university and CA training; lots of interactions with vendors, industry colleagues, IT and related experts; active listening to the needs of others; participation in special projects within the organization; self teaching; web searches.

Experience in general as well as audit experience and implementing SOX; university and CA training; professional training and CPE; reading industry journals; discussions with auditors and IT specialists; learn from mistakes. Experience and asking questions; visiting different business units within the company; reading (e.g. Business Week, Wall St. Journal); mentors can help significantly; listening well and being aware. University and CA training, public accounting and CRA experience, CPE, reading and/or learning about specific frauds, being aware and developing a sense for fraud risk, networking with others, working with mentors.

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CompetenciesfortheOperatorRole Operator role: Efficiency and service levels are the primary areas of focus for the Operator. The Operator must dynamically balance cost and service levels in delivering on
the finance organization's responsibilities, and adapt finance's operating model as necessary. Talent management, offshoring and shared service decisions are often the key issues to be addressed. This role is oriented toward best practices of the finance function itself.

Competency:
Staff planning

Description:
Branding the company as a career destination for finance professionals is critical for attracting top talent. Identifying, developing, and overseeing projects that create value and meet or exceed financial goals. Manage staff not only for maximum performance, but also for advancement within the organization. CFOs must provide their own future leaders with similar advancement opportunities, and give them room to excel, even beyond the realm of finance. Ability to manage a diverse staff with differing backgrounds, expectations, and goals; ability to build/facilitate effective teams. Develop sets of strategic measures that can be used to anticipate challenges and monitor progress Monitoring financing activities and adapting strategies and tactics to changes in debt and equity markets. Knowledge and use of financial instruments to gain the greatest risk/return on investments. Ability to analyze potential M&A deals and strategic partnerships for strategic benefit. Enhance value and service to the organization while holding down costs. Carry out cost-effective services without disruption. Outsourcing may be one alternative. The CFO must be able to translate performance into results. Being responsive to the needs of the organization and meeting those needs using measures that are appropriate and understandable. Ability to organize and prioritize effectively. The CFO must be able to process large amounts of information within limited time constraints, and must identify situations in which digging into details is necessary versus remaining in an oversight position. Being organized oneself, the CFO is better able to run the finance function most effectively.

How to Develop (from those who have done it):

Formal education, public accounting experience, trial by fire, working with increasingly larger teams, courses and seminars, observing how others do this and learning from their mistakes, discussions with HR University, CA training, audit experience, being a member of project teams, observing how others manage projects, trial and error, mentors. University, CA training, audit and industry experience, observation and analysis of results, special training courses, peer review, help from HR, being an advisor for Junior Achievement, help from a good mentor.

Project management Staff management, mentoring, team building, and creating accountability Corporate finance

Treasury and investment management Mergers and acquisitions, strategic alliances Maximizing capital employed

University, CA training; direct experience where possible (e.g. in M&A, financing activities, etc); discussions with vendors, industry colleagues, consultants, CF professionals, bankers. University, CA training, CSC and CFA program; on the job experience; banking experience; discussions with the organizations treasurer, bankers, investment managers, industry colleagues; outsourcing the function and learning from suppliers. Some coursework; try to get experience (baptism by fire), teamwork with lawyers and investment bankers. This competency appears more important for smaller and/or private organizations than large public ones. Develop through experience; discussions with industry colleagues, suppliers, mentors; if outsourcing, start small and learn from mistakes. One can being developing this early through extra-curricular activities in school, setting and meeting deadlines and goals, choosing to become a CA; combination of courses, experience, observation, and help from mentors. Starts with education but continues primarily through experience, audit experience, observation, executive education, help from mentors.

Achievement / results orientation

Organizational and administration skills

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CompetenciesfortheCatalystRole Catalyst role: The Catalyst is an agent for change, focused on establishing a value attitude throughout the organization. The Catalyst gains business alignment to identify,
evaluate and execute strategies, and serves as a business partner to other decision makers including business unit leaders, the chief information officer, and sales and marketing leaders. The Catalyst establishes a structure of enterprise accountability directed toward results, drives enterprise execution and gains acceptance from business management as the organization's catalyst. This role is oriented toward best practices of the entire organization.

Competency:
Leadership and influence

Description:
Inspiring and motivating others in the organization. Providing the necessary guidance and direction to meet and exceed organizational goals and objectives. Ability to communicate effectively in writing and verbally, to connect with others, to persuade others, and to communicate complex information in an easy-to-understand manner. Ability to act appropriately for each occasion and with each audience. To be accessible to and respected by others at all levels in the organization. Understanding elements of corporate governance and instituting best practices for creating a culture of excellence and ethical performance. Ability to negotiate with others in both friendly and adverse circumstances. Being a good listener is an important element in negotiation. Ability to resolve conflict. CFOs interact widely with members of the entire organization. Networking with others, developing strong relationships, being a good team player and good collaborator. Being a good bridge-builder. Understanding motivations of oneself and others, and recognizing the very real possibility of unethical behavior. Taking active and public steps to thwart misbehavior and encourage ethical behavior. Being a role model. Setting the tone at the top. Having a social conscience. Manage change with minimum disruption; being a positive change agent. Being flexible and assisting others within the organization to be the same. To be able to see ones own faults or mistakes and take responsibility for them. To assist others to do the same without doing so in a patronizing manner or with harsh criticism/blame. Having the courage and resilience to persist in the face of adversity. Being passionate about ones work enables persistence.

How to Develop (from those who have done it):

One can begin developing this competency early on through extracurricular activities, student council, university courses, CPE or in-house courses, volunteer to lead teams, gain respect from decision makers by learning the business, observation, practice, and mentors. University (including team projects in classes), CA training, presentation skills courses, media training, experience in sales or marketing, observation, practice, self learning and continuous improvement.

Communication/ presentation skills and executive presence

Corporate governance

Negotiation

University and CA training; specific courses; discussions with auditors and audit committee, professional advisors, investment bankers, lawyers; reading relevant publications; learning from the mistakes of others. Formal courses, experience negotiating with suppliers or vendors, observation, practice. Can start early in school, volunteering, on the job experience, observation, practice, feedback, strong mentors.

Relationship building and collaboration

Personal integrity, ethics, ability to identify ethical dilemmas and make ethical decisions Change management and flexibility Self awareness and insight

Some argue this is innate you either have integrity or you dont. Much of it is acquired early in life from parents. However, ethical dilemma identification and decision making can be developed through courses, experience, observation of others (both good and bad), and practice. Mentors are quite helpful. Sponsoring and leading significant projects, or being a manager in a CA firm; read financial press; courses with correct timing (where it can be immediately applied to the job); observation. Experience or courses with 360 degree feedback, personality testing, working with a mentor, observing those who are good or bad at it, continuous self-teaching and learning. To some extent, this is innate, but it can be further developed by working hard at school and thereafter, playing sports, getting feedback and help from mentors, CA training, on the job training. Never quitting.

Persistence

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 CompetenciesfortheStrategistRole Strategist role: The Strategist is a director, focused on defining the future of the company to enhance business performance and shareholder value. The Strategist provides a financial
perspective on innovation and profitable growth, leverages this perspective to improve risk-awareness, strategic decision-making and performance management integration, and translates the expectations of the capital markets into internal business imperatives. This role is oriented toward long-term, strategic issues, and is outwardly directed.

Competency Description:
Goal setting / visioning
The ability to develop visions that prompt buy-in from a wide range of organizational stakeholders. As well, the ability to align finance functions priorities with business strategy and organizational goals. Being a forward thinker. Understanding the big picture, that is, how the environment could impact the organization both negatively and positively. Understanding how internal and external factors can interact to create or reduce risk. The ability to take a holistic and futuristic perspective of the organization that recognizes the synergies and interdependencies between the different parts. This perspective is leveraged in the use of information to create strategies that enable growth. This ability uses innovation and creativity, and often involves thinking outside the box. Performance management integration is a holistic approach that spans all the processes and technologies related to performance management, and consists of the integration of reporting and performance measurement, budget planning and forecasting, and organizational alignment. This includes the elimination or reduction of non-value-added activities, measuring financial performance, establishing efficiency metrics, measuring non-financial performance and measuring customer satisfaction. The ability to make assertions based on sound logic and evidence. This consists of being able to distinguish between fact and opinion, ask questions, make detailed observations, and uncover assumptions. Make sound conclusions based on appropriate information. The ability to deal effectively with uncertain situations. This requires the ability to control ones anxiety levels so that a level of clarity in thinking is maintained in order that an accurate evaluation of the situation can be ascertained and an effective response made. Having a desire to learn and to never be satisfied with current knowledge. Being inquisitive; taking every opportunity to learn new things and continually working on self-improvement. Self-motivated. As the #2 person in the organization, the CFO must represent the organization to the outside world. This includes networking with shareholders, analysts, suppliers, customers, and the public at large. The CFO must have a keen sense of when and how to best portray both positive and negative information about the organization.

How to Develop (from those who have done it):

University and MBA; experience by trial and error, volunteering for committees dealing with vexing issues; in-house courses; setting goals for oneself, ensuring ones goals are congruous with those of the team and company; observation. University; experience from auditing, dealing with surprises; observation; personal research; strong mentors. Academic foundation built upon with experience; access to meetings of senior executives and board; studying the business environment; strong mentors; observation; practice. Observation of and experience with implementing significant change in systems and processes, as well as meetings with senior executives and board; post-performance feedback; formal training to establish formats etc., but critical determination of milestones/metrics learned on the job; alignment of goals across the organization. University and CA training; watching senior management debate critical issues; adopting a questioning attitude, curiosity, or distrust of "proven" solutions; trial and error; start practicing these early on. Keep an open mind and practice being comfortable with situations in which there is no right answer; experience--especially in multiple functions or organizations; mentoring; asking a lot of questions; observation; reading. University should instill this; job experience; mentors; increasing ones own expectations, not being satisfied with status quo; self-improvement seminars; developing a win-win mentality; self-criticism. Experience; mentors; volunteering to speak at industry seminars, investor forums, in front of clients, Jaycees, or Chambers of Commerce; believing in what you are doing; observing great corporate leaders; practice.

Strategic risk management Strategic thinking and decision-making Performance management integration

Critical thinking

Managing ambiguity

Dedication to continuous improvement Advocate / ambassador for the organization

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