Competency Framework SMA-FINAL

ima
The Association of
Accountants and
Financial Professionals
in Business
IMA Management Accounting Competency Framework
Statement on Management Accounting

About IMA®
IMA, the association of accountants and financial professionals in business, is one of the
largest and most respected associations focused exclusively on advancing the management
accounting profession.
Globally, IMA supports the profession through research, the CMA® (Certified Management
Accountant) program, continuing education, networking, and advocacy of the highest ethical
business practices. IMA has a global network of more than 85,000 members in 120 countries
and 300 professional and student chapters.
Headquartered in Montvale, N.J., USA, IMA provides localized services through its four
global regions: The Americas, Asia/Pacific, Europe, and Middle East/Africa. For more
information about IMA, please visit www.imanet.org.
IMA Research
Statements on Management Accounting
SMAs present IMA’s position on best practices in management accounting. These
authoritative monographs cover the broad range of issues encountered in practice.
© September 2017
Institute of Management Accountants
10 Paragon Drive, Suite 1
Montvale, NJ, 07645
www.imanet.org/thought_leadership
Contents
IMA Management Accounting Competency
Framework.......................................................................4 Technology...........................................................................23
Category Summary................................................................5 Enterprise Resource Planning (ERP) and General
Planning & Reporting.............................................................6 Ledger (GL) Systems................................................24
Financial Statement Preparation......................................7 Information Systems and Software Literacy...................25
Financial Recordkeeping..................................................8 Operations...........................................................................26
Strategic and Tactical Planning........................................9 Industry-specific Knowledge..........................................27
Forecasting....................................................................10 Operational Knowledge.................................................28
Budgeting......................................................................11 Quality Management and Continuous Improvement....29
Performance Management............................................12 Project Management......................................................30
Cost Accounting and Cost Management......................13 Leadership............................................................................31
Internal Controls............................................................14 Motivating and Inspiring Others....................................32
Tax Accounting, Management, and Planning................15 Communication Skills.....................................................33
Decision Making...................................................................16 Change Management....................................................34
Financial Statement Analysis..........................................17 Talent Management.......................................................35
Corporate Finance.........................................................18 Collaboration and Teamwork.........................................36
Operational Decision Analysis.......................................19 Negotiation....................................................................37
Enterprise Risk Management.........................................20 Conflict Management....................................................38
Capital Investment Decisions.........................................21 Conclusion............................................................................39
Professional Ethics.........................................................22
THE FUTURE OF MANAGEMENT ACCOUNTING IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK 3

IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK
IMA’s Competency Framework identifies the core skills

needed to succeed in management accounting. Our IMA MANAGEMENT ACCOUNTING
certification body, the ICMA, conducts job analyses every COMPETENCY FRAMEWORK
5-6 years to assess what management accountants do on
the job and what they need to know to do their work
effectively. This research, tested by subject-matter experts,
formed the foundation of the CMA exam and important
components of the Competency Framework.
In conjunction with CMA exam preparation courses and

PLANNING & DECISION
a wide variety of IMA resources, the Framework is a REPORTING MAKING
valuable tool that helps management accountants advance ENVISIONING GUIDING
their careers and helps employers manage talent, make
hiring and salary decisions, and build a skilled workforce—
all of which can help organizations create sustained
LEADERSHIP
business growth.
INSPIRING
TECHNOLOGY OPERATIONS
ENABLING TRANSFORMING
Copyright © 2017
THEIMA (InstituteOF
FUTURE of Management
MANAGEMENT Accountants). All rights reserved.
ACCOUNTING IMAMANAGEMENT
IMA MANAGEMENTACCOUNTING
ACCOUNTINGCOMPETENCY
COMPETENCY FRAMEWORK
FRAMEWORK 2
4
CATEGORY SUMMARY
PLANNING & DECISION

REPORTING TECHNOLOGY OPERATIONS LEADERSHIP
MAKING
The competencies The competencies The competencies The competencies The competencies
required to envision required to guide required to manage required to contribute required to collaborate
the future, measure decisions, manage risk, technology and as a cross-functional with others and inspire
performance, and and establish an ethical information systems business partner to teams to achieve
report financial results. environment. to enable effective transform company- organizational goals.
operations. wide operations.
Copyright © 2017
THEIMA (InstituteOF
ACCOUNTING IMAMANAGEMENT
IMA MANAGEMENTACCOUNTING
ACCOUNTINGCOMPETENCY
FRAMEWORK 3
5
IMA MANAGEMENT ACCOUNTING
PLANNING & REPORTING
IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK 6

FINANCIAL STATEMENT PREPARATION ENVISIONING
Leverage financial accounting skills needed to prepare financial statements for internal and external stakeholders
LIMITED BASIC APPLIED

SKILLED EXPERT
KNOWLEDGE KNOWLEDGE KNOWLEDGE
No or minimal exposure Identify basic financial state- Apply knowledge of more Analyze the impact of Prepare complex financial
to financial statement prepa- ments, their purpose, and advanced US GAAP and changing accounting statements
ration their elements IFRS standards (e.g., leases, standards on the financial
pensions, deferred taxes) statements Reconcile financial state-
Recognize US GAAP ments prepared using
and IFRS standards (e.g., Research and apply appro- Prepare Management various reporting standards
assets, liabilities, revenue, priate accounting treatments Discussion & Analysis, (e.g., IFRS and US GAAP)
expenses) if applicable
Prepare basic financial Prepare quarterly and annual
statements for both Ensure compliance with regulatory filings (SEC or
internal and external all regulatory requirements other regulatory bodies), if
stakeholders (SEC or other regulatory applicable
bodies), if applicable
Prepare comprehensive set
of footnotes
Copyright © 2017
THEIMA (InstituteOF
ACCOUNTING IMAIMA MANAGEMENT
MANAGEMENT ACCOUNTING
ACCOUNTING COMPETENCY
COMPETENCY FRAMEWORKPLANNING
FRAMEWORK PLANNING&&REPORTING
REPORTING 75
FINANCIAL RECORDKEEPING ENVISIONING
Leverage financial accounting skills needed to record and analyze financial transactions

SKILLED EXPERT
No or minimal exposure Perform transactional/ Analyze special accounts Evaluate efficiency and Design appropriate
beyond a specific area operational accounting (e.g., deferred tax asset/ effectiveness of accounting record keeping procedures
(e.g., accounts receivable, functions liability), and prepare processes, and make in complex situations (e.g.,
accounts payable, or payroll related journal entries recommendations to derivatives, hedging)
transactions) Perform account optimize them
reconciliations, and Facilitate external audit Design appropriate
prepare schedules to requirements record keeping procedures
support the preparation for multinational
and/or audit of financial organizations, including
statements consolidations, across
segments and industries
Prepare basic accounting
journal entries, including
accruals, reversals,
and the like
Copyright © 2017
THEIMA (InstituteOF
REPORTING 86
STRATEGIC AND TACTICAL PLANNING ENVISIONING
Assess key business factors, and successfully drive value through long-term and short-term planning and implementation

SKILLED EXPERT
No or minimal knowledge, Understand how individual Implement annual or short- Assess strengths, weak- Lead a team that makes
skills, and/or experience goals support organizational term departmental goals nesses, opportunities, and significant contributions
with strategic planning strategy linked to strategy threats facing the orga- to the strategic planning
nization (SWOT analysis: process of a complex
Perform tactical assignments Explain how tactical plans strengths, weaknesses, organization
for addressing planning link to organization-wide opportunities, threats)
initiatives strategy Employ sophisticated plan-
Perform and assess an ning techniques, including
environmental scan and scenario planning, PEST
Recognize the value and (political, economic, soci-
competitive analysis to
importance of thinking long- etal, technology) analysis,
identify strategic issues
term for the organization strategy maps, and Porter’s
5 Forces (Threat of New
Oversee implementation
Work with others to execute Entrants, Power of Sup-
of strategic initiatives
organizational strategy pliers, Power of Buyers,
while balancing long-term
effectively Availability of Substitutes,
strategy and short-term
Competitive Rivalry)
objectives
Define the organization’s
Communicate organization- sustainable value-creation
al strategy effectively model
Communicate the vision,

strategy, and execution
plan effectively to others
to gain support and
compliance
Perform a risk management

assessment, and incorporate
it into the planning process
Lead or guide others to

think strategically
Copyright © 2017
THEIMA (InstituteOF
REPORTING 97
FORECASTING ENVISIONING
Project future financial and operational resources and requirements (e.g., cash, sales, inventory, people, and more)

SKILLED EXPERT
No or minimal exposure to Understand basic tools and Identify and analyze the re- Forecast in an environment Perform long-term analysis
forecasting techniques of forecasting, lationship between different of uncertainty using sensitiv- in periods of uncertainty
such as moving averages resources and requirements ity analysis using Monte Carlo simula-
and extrapolation of a comprehensive financial tions and other advanced
or operational forecast Use statistical techniques statistical techniques
Project short-term sales, such as regression, expo-
nential smoothing, and Analyze and synthesize data
cash flows, inventory Synthesize and interpret
confidence levels from external sources to rec-
requirements, or other data from multiple sources
ognize patterns and predict
financial data in support
Use data analytics and customer behavior
of operations
data mining techniques to
discover key and relevant Incorporate collaborative
trends forecasting techniques such
as the Delphi method
Understand and communi-

cate complex forecasts to
others
Serve as an expert in the

field
Copyright © 2017
THEIMA (InstituteOF
REPORTING 108
BUDGETING ENVISIONING
Prepare the financial plan (control, authorization, resource commitment, and needs) for a specific period of time or project

SKILLED EXPERT
No or minimal exposure to Understand basics of the Anticipate operational and Recommend an appropriate Design and lead budget
budgeting budgeting process, includ- capital requirements budgeting methodology and financial planning
ing purpose and use (e.g., flexible, continuous, process across multiple
Develop financial budgets rolling, zero-based) to use business units in a complex
Perform data collection or in a given business situation organization using
Analyze historical revenues to support goals of a small
data-entry tasks in support advanced software tools
and expenses to determine to midsize organization or
of budget
seasonal patterns and antici- department/division Link budgeting process to
pate annual requirements forecasting and strategic Understand complex
Validate assumptions made planning process budgets, and communicate
by departments them to others
Integrate and consolidate
information from diverse Serve as an expert in the
departments field
Prepare projected income

statement, balance sheet,
and cash flow statement
Communicate budget to
organization effectively
Copyright © 2017
THEIMA (InstituteOF
REPORTING 119
PERFORMANCE MANAGEMENT ENVISIONING
Prepare the internal management reports that compare actual results to planned results, and recommend interventions where necessary

SKILLED EXPERT
No or minimal exposure to Understand the purpose of Perform comprehensive Develop and implement Design an effective perfor-
performance management performance management variance analysis a performance measure- mance management system
processes and their use ment process aligned with in a complex environ-
in supporting the strategy Investigate and interpret the overall strategic goal-setting ment (e.g., public, global,
(e.g., achieving goals, incen- meaning/cause of perfor- process multientities, complicated
tives, governance) mance variances corporate structures)
Assess robustness, reliability,
Perform isolated and/or and rigor of performance Ensure that performance
simple variance analysis measurement systems measurement processes
and systems are closely
Analyze the impact of alter-
aligned with the organiza-
native transfer prices
tion’s value-creation model
and support the board’s
Optimize financial reporting decision-making role
process to provide useful
and timely management
information (e.g., use of
key performance indicators,
scorecards, and dashboards)
Copyright © 2017
THEIMA (InstituteOF
REPORTING 10
12
COST ACCOUNTING AND COST MANAGEMENT ENVISIONING
Report, analyze, and manage costs incurred by an organization

SKILLED EXPERT
No or minimal exposure to Identify basic cost classifi- Calculate costs using Design and implement cost Leverage cost accounting
cost accounting and cost cations (e.g., fixed, variable, various costing method- accounting processes (e.g., techniques to recommend
management direct, indirect) and their ologies (e.g., standard, standard, activity-based, cost reduction strategies/
use in costing applications activity-based, throughput throughput costing) tactics as part of a long-
(e.g., new product introduc- costing) term strategy
tion) Recommend the appropri-
Calculate overhead, and ate costing approach to use Implement sophisticated
Calculate basic product/ allocate to products and in a given business situation cost management tech-
service costs services niques (e.g., activity-based
costing, theory of con-
straints, lean accounting,
Coordinate cost collection Prepare cost reports and
resource consumption
efforts variance analysis for man-
accounting, and more)
agement
Use capacity planning and

inventory control tools
Copyright © 2017
THEIMA (InstituteOF
REPORTING 11
13
INTERNAL CONTROLS ENVISIONING
Implement procedures and processes that ensure data security, protect an organization’s assets, and meet legal and reporting requirements

SKILLED EXPERT
No or minimal exposure to Understand the purpose of Verify accuracy of general Perform internal control Design and implement
internal controls internal controls for use in ledger and subledgers risk assessment using internal controls in complex
financial reporting, compli- through various accounting frameworks such as COSO environments (e.g., pub-
ance, and operations procedures and controls (Committee of Sponsoring lic, global, multi-entities,
Organizations of the Tread- complicated corporate
Identify basic internal Implement and/or test sys- way Commission) structures)
controls (e.g., segregation tem of internal controls un-
of duties, physical controls, der management direction Design an effective internal Integrate internal controls
audit trails, limits of autho- control system, including with enterprise risk manage-
rization) Ensure compliance with technology controls, that is ment system
policies and procedures, responsive to the specific
including Sarbanes-Oxley risks of the organization
Provide internal assurance
Act, if applicable to management regarding
Develop processes to mon- internal controls (e.g.,
itor the effectiveness of risk Sarbanes-Oxley Act
management and internal compliance)
controls processes, and
remediate as necessary
Copyright © 2017
THEIMA (InstituteOF
REPORTING 12
14
TAX ACCOUNTING, MANAGEMENT, AND PLANNING ENVISIONING
Implement procedures and processes to ensure accurate and timely tax filings and effective tax strategies

SKILLED EXPERT
No or minimal exposure to Understand business taxa- Gather data and provide Prepare accurate and timely Manage taxation responsi-
business taxation tion general concepts and input to the tax return, and tax filings bilities in multiple jurisdic-
rules understand the relationship tions and multiple industries
of various tax schedules to Analyze the tax impact of al-
Understand book vs. tax each other ternative business decisions Research and advise on
differences in financial international tax issues,
statements Execute tax strategies, and and lead tax strategy for
Provide tax advice for busi-
ensure that the record- multinational corporations,
ness decisions
keeping system supports including consideration of
tax reporting that reflects reputational risk
the tax environment of the Deal with government
organization tax auditors’ information
Evaluate the risk and impact
requests
of changes in tax laws, and
recommend mitigation
strategies
Use effective tax strategies

to improve cash flows
Lead tax strategy and

planning for a complex
organization
Negotiate settlements with

taxing authorities
Copyright © 2017
THEIMA (InstituteOF
REPORTING 13
15
DECISION MAKING

FINANCIAL STATEMENT ANALYSIS GUIDING
Analyze a company’s financial statements to assess performance

SKILLED EXPERT
No or limited exposure Understand basic financial Analyze financial statements Design a system of financial Analyze the impact on
beyond understanding a statements and ratios and financial data to guide ratios and other perfor- financial ratios from com-
simple income statement decision making mance indicators appropri- plex financial transactions
ate for a specific financial (e.g., M&A, divestitures,
Calculate financial ratios situation and more)
Interpret the meaning of Analyze the impact of for- Analyze the financial
various financial ratios eign operations on reported statements of competitors,
financial results, including customers, and suppliers,
Analyze the impact of foreign exchange transac- and monitor trends over
changes in reporting tions time to provide input to the
standards or accounting planning and forecasting
methods on the financial Analyze the potential impact processes
statements of macroeconomic, social,
political, and environmental
Analyze loan covenants, and factors on the company’s
report on compliance financial results
Coordinate and integrate

comparison of financial
statement ratios across the
organization
Perform and interpret busi-

ness unit and intercompany
trend analysis
Copyright © 2017
THEIMA (InstituteOF
ACCOUNTING IMA
IMA MANAGEMENT
COMPETENCY FRAMEWORK DECISION
FRAMEWORK DECISIONMAKING
MAKING 15
17
CORPORATE FINANCE GUIDING
Manage a company’s short-term and long-term financing needs

SKILLED EXPERT
No or minimal knowledge of Understand basic financial Measure performance of Evaluate and/or implement Recommend alternatives for
corporate finance instruments financial investments specific financing strategies raising capital
(e.g., funding sources, short-
term or long-term uses of Maintain relationships with
Distinguish between short- Perform valuation calculations surplus cash) banks and other sources
term and long-term financ- of financial instruments
of funds (e.g., investment
ing needs
Analyze alternative means banks, venture capitalists)
Forecast cash requirements, of raising capital (e.g., com-
analyze receivables quality, mon stock, bonds, preferred Develop working capital
and perform short-term cash stock, factoring, venture policies in complex situa-
investment capital) tions (e.g., multinational
corporations, rolling up mul-
Develop and implement tiple divisions, subsidiaries)
working capital policies (e.g.,
cash, accounts payable, Recommend dividend and/
accounts receivable, or stock repurchase policies
inventory management) and plans
Ensure compliance with loan

covenants
Copyright © 2017
THEIMA (InstituteOF
ACCOUNTING IMA
IMA MANAGEMENT
MAKING 16
18
OPERATIONAL DECISION ANALYSIS GUIDING
Make decisions based on analytical techniques and innovative methodologies

SKILLED EXPERT
No or minimal knowledge of Understand basic types and Perform cost-volume-profit Evaluate nonroutine projects Lead complex decisions
decision analysis purpose of decision-support (breakeven) analysis to sup- (e.g., special orders, out- involving high risk, ambigu-
tools (e.g., breakeven port product decisions sourcing, business segments) ity, and significant strategic
Support decisions with little analysis, net present value, consequences
or no appropriate data or return on investment) Evaluate data for decisions Identify the most important
analysis such as make or buy, lease criteria for selecting the best Develop a framework for
Demonstrate research skills or own, and sell or process alternative to support an decision making (e.g., identify
further organization’s strategic goals specific decision-support
methods to use in given
Perform scenario analysis Incorporate quantitative data situations)
and strategic qualitative
factors in decision making Employ innovative method-
ologies when approaching
Evaluate and incorporate complex decisions (e.g.,
environmental factors (e.g., Monte Carlo simulation,
political, regulatory, mar- “real options”)
ket) when making strategic
decisions
Copyright © 2017
THEIMA (InstituteOF
ACCOUNTING IMA
IMA MANAGEMENT
MAKING 17
19
ENTERPRISE RISK MANAGEMENT GUIDING
Identify, assess, and minimize risks within an organization

SKILLED EXPERT
No or minimal knowledge of Understand the need for Identify types of risk within Implement appropriate risk Develop and recommend
enterprise risk management organizational risk manage- an organization (e.g., management systems based strategic risk mitigation and
ment and its relationship to financial, competitive, and on a recognized framework risk response strategies
internal controls reputation) (e.g., COSO or Internation- (e.g., to address competi-
al Organization for Stan- tive risk, technology risk)
Analyze operational risk dardization (ISO) 31000)
(e.g., internal processes, Implement enterprise risk
people, and systems or ex- Recommend financial risk management with overall
ternal factors such as legal, management strategies organizational strategic
fraud, security), and imple- (e.g., portfolio diversifica- plans and governance
ment mitigation strategies tion and hedging, options,
and other derivatives)
Develop advanced indus-
Analyze financial risk (e.g.,
try-specific risk simulation
interest rate, credit, foreign Perform an environmental
models
exchange, capital structure), scan using tools such as
and implement mitigation PEST (political, econom-
strategies ic, societal, technology)
analysis
Manage contractual re-
lationships, policies, and Evaluate risk concerning the
coverage for insurable risks competitive landscape
Prepare risk communica-

tions required by regulatory
agencies
Analyze strategic risk,

including competition and
reputation/brand
Copyright © 2017
THEIMA (InstituteOF
ACCOUNTING IMA
IMA MANAGEMENT
MAKING 18
20
CAPITAL INVESTMENT DECISIONS GUIDING
Analyze capital investment decisions using quantitative and qualitative techniques

SKILLED EXPERT
No or minimal exposure to Identify basic investment Evaluate capital investment Evaluate alternative scenari- Recommend potential new
capital investment decisions decision terms and tech- projects using common os using sensitivity analysis business ventures (e.g., new
niques and their use in quantitative techniques products, new services, new
decision support (e.g., net (e.g., net present value, markets) based on quantita-
Provide quantitative input
present value, internal rate internal rate of return, pay- tive and qualitative factors
for merger, acquisition, and
of return, payback period) back period)
divestiture opportunities
Conduct merger and ac-
Identify nonquantitative quisition (M&A) analysis for
Develop cost-of-capital hur-
factors (e.g., social, moral, complex transactions, and
dle rate/weighted average
aesthetic) affecting invest- make recommendations to
cost of capital
ment decisions senior management and
the board
Evaluate relevant cash flows Identify and calculate future
for capital budgeting deci- opportunities and choices
sions, and estimate future (“real options”)
return on capital employed
(ROCE)
Copyright © 2017
THEIMA (InstituteOF
ACCOUNTING IMA
IMA MANAGEMENT
MAKING 19
21
PROFESSIONAL ETHICS GUIDING
Understand, comply with, manage, and lead in accordance with professional codes of conduct. This competency permeates all other
competencies in this framework.

SKILLED EXPERT
No or minimal exposure to Understand the need Identify business situations Foster an organizational Lead in establishing and
professional ethics for professional ethics in that often involve ethical culture of ethical behavior maintaining the appropriate
business situations (e.g., dilemmas (e.g., sales and accountability ethical “tone at the top”
confidentiality, competence, targets, incentive and throughout the organi-
integrity, and credibility) compensation, travel and Manage corporate social zation
entertainment) responsibility initiatives
Understand the standards Design and implement
and principles outlined in Manage compliance a company-wide ethics
Follow corporate and/or
the IMA Statement of Ethi- with business regulations program
professional guidelines to
cal Professional Practice (e.g., U.S. Foreign Corrupt
resolve ethical issues on
Practices Act, Equal Serve as an expert regard-
the job
Act in a fair and ethical Employment Opportunity ing complex ethical issues
manner Commission Act, faced by organizations
Understand the organiza- Occupational Safety and
tion’s legal and regulatory Health Administration
Recognize a conflict of environment Communicate the orga-
interest regulations, and nization’s ethics program,
corresponding regulations and ensure compliance by
Provide guidance to staff in other countries) suppliers
on identifying legal and
ethical issues
Ensure the integrity of the
business model and delivery
in relation to the organiza-
tion’s stated purpose, mis-
sion, and ethical principles
Copyright © 2017
THEIMA (InstituteOF
ACCOUNTING IMA
IMA MANAGEMENT
MAKING 20
22
TECHNOLOGY

ENTERPRISE RESOURCE PLANNING (ERP) AND ENABLING
GENERAL LEDGER (GL) SYSTEMS
Use ERP systems to effectively control organizational financial processes, recordkeeping, and reporting

SKILLED EXPERT
No or minimal exposure to Understand processes relat- Manage the GL module Design ERP workflows for Lead or sponsor large-scale
ERP systems beyond data ed to a single ERP module (e.g., chart of accounts, sound financial control implementation
input (e.g., cash disbursements in journal entries, trial balance)
accounts payable)
Use and demonstrate Recommend and implement
Control how and when data multiple modules within the appropriate system in a
Run basic reports enters the GL from other an ERP system beyond GL complex environment
modules (e.g., material requirements
planning (MRP), purchasing,
warehouse management) Ensure the integration of in-
formation and performance
management systems
Create customized reports
Copyright © 2017
THEIMA (InstituteOF
COMPETENCY FRAMEWORK TECHNOLOGY
FRAMEWORK TECHNOLOGY 22
24
INFORMATION SYSTEMS AND SOFTWARE LITERACY ENABLING
Use technology to solve problems, analyze data, and enhance business performance

SKILLED EXPERT
Input data to a simple Manipulate spreadsheet Use spreadsheet functions Design organizational tem- Lead organization in
spreadsheet and/or data- data using simple arithmetic (e.g., graphs, filtering and plates for use by others adopting new technology
base functions (formulas) sorting data, importing platforms as they emerge
data, pivot tables) with ease
Analyze data using business
Understand word process- intelligence software Lead technology-related
ing, database, and presen- Create flowcharts using spe- upgrades and implementa-
tation software cialized software tools tions
Validate data, and automate
tasks with macros
Understand basic hardware Work closely with Informa-
and software tools and their tion Technology department
Utilize specialized reporting
configuration to implement solutions
tools (e.g., XBRL)
Understand relationship be-

tween information systems
environment and internal
controls
Copyright © 2017
THEIMA (InstituteOF
COMPETENCY FRAMEWORK TECHNOLOGY
FRAMEWORK TECHNOLOGY 23
25
OPERATIONS

INDUSTRY-SPECIFIC KNOWLEDGE TRANSFORMING
Understand and master dynamics and drivers of business success in a specific industry

SKILLED EXPERT
No or minimal knowledge Understand industry based Evaluate the company’s Prepare the discussion of Serve as an expert on the
of the industry in which the on limited work experience supply chain, and identify risk for external reporting specific industry, including
company operates or exposure to reports in risks related to specific (e.g., the Management supply chain, competitive
the business media vendors and customers Discussion and Analysis issues, regulatory matters,
(MD&A) section in the and customer perspectives
Annual Report)
Keep pace with industry
developments proactively Serve as an expert speaker
Analyze Annual Reports and/or advisor on industry
of customers, competitors, matters
Monitor activities of and suppliers
competitors Formulate ways to increase
competitive advantage and/
or identify new sources of
value creation
Copyright © 2017
THEIMA (InstituteOF
ACCOUNTING IMA
IMA MANAGEMENT
COMPETENCY FRAMEWORK OPERATIONS
FRAMEWORK OPERATIONS 25
27
OPERATIONAL KNOWLEDGE TRANSFORMING
Serve as a valuable business partner to operational units outside the accounting/finance department

SKILLED EXPERT
No or minimal exposure to Understand the flow of Work closely with Work on cross-functional Serve as an expert leading
business operations beyond information and materials Procurement, Materials teams as a business partner manufacturing, production,
the accounting/finance through the company Management, Informa- to implement multidepart- distribution, or service
department tion Technology, Human mental change delivery as a result of expe-
Resources, Legal, Facilities, rience gained through job
Customer Service, or other rotations or previous career
functions and across busi- Gain experience in sales, positions
ness units production, or quality
management as well as in
accounting/finance Develop creative solutions
Participate in the formula- to optimize value across the
tion of solutions to oper- supply chain
ational issues beyond the
finance department
Copyright © 2017
THEIMA (InstituteOF
ACCOUNTING IMA
IMA MANAGEMENT
28
QUALITY MANAGEMENT AND CONTINUOUS IMPROVEMENT TRANSFORMING
Use quality management and continuous improvement tools and techniques effectively

SKILLED EXPERT
No or minimal exposure to Recognize quality improve- Calculate cost of quality Lead cross-functional and Use quality management
quality management and/ ment tools (e.g., process and expected savings from departmental quality im- tools and approaches to
or continuous improvement mapping, Kaizen, fishbone improvement efforts provement efforts improve the supply chain
approaches diagrams)
Use quality management Use quality management Sponsor multiple, com-
Understand quality improve- tools and approaches to tools and approaches to plex quality improvement
ment approaches (e.g., improve the accounting/ improve cross-functional projects
Lean, Six Sigma, TQM) finance operation operations
Represent finance on oper-

ational quality improvement
teams
Copyright © 2017
THEIMA (InstituteOF
ACCOUNTING IMA
IMA MANAGEMENT
29
PROJECT MANAGEMENT TRANSFORMING
Plan and organize resources, both people and financial, in order to complete a major undertaking or event

SKILLED EXPERT
No or minimal exposure to Understand basic project Participate on teams using Lead projects using project Champion/sponsor multiple
formal project management management tools (e.g., project management tools management tools, includ- simultaneous projects with
tools timelines, checklists, mile- (e.g., Gantt Charts and ing scheduling of resources significant budgets using
stones) critical paths) project management tools
Copyright © 2017
THEIMA (InstituteOF
ACCOUNTING IMA
IMA MANAGEMENT
30
LEADERSHIP

MOTIVATING AND INSPIRING OTHERS INSPIRING
Influence, motivate, and gain support of others in order to achieve organizational goals. This includes adherence to professional ethics, account-
ability, and setting the “tone at the top” (for more on this, see the Professional Ethics competency in the Decision Making category).

SKILLED EXPERT
No or limited knowledge, Recognize the importance Recognize differences in Identify and adopt appro- Inspire others to perform
skills, and/or experience of motivation personality style and pref- priate leadership style for a to their full potential and
with motivating and inspir- erences when motivating given situation exceed expectations
ing others Recognize strengths and team members
weaknesses of team Recognize and reward staff
members Provide effective advice Motivate the organization
as appropriate, and com-
and feedback to enable to overcome challenging
municate recognition to the
individual contributors to situations
team and others
achieve goals and improve
performance Find new ways to motivate Coach others on how to
team members motivate individuals / teams
effectively
Lead managers to motivate

their teams
Copyright © 2017
THEIMA (InstituteOF
COMPETENCY FRAMEWORKOPERATIONS
FRAMEWORK LEADERSHIP 30
32
COMMUNICATION SKILLS INSPIRING
Listen effectively to others, and convey thoughts or ideas in various forms of communication, including written, spoken, and nonverbal

SKILLED EXPERT
No or limited knowledge, Organize and present Prepare clear and concise Recognize differences in Develop communication
skills, and/or experience thoughts, information, and written communications others’ communication strategies to optimize
communicating in a profes- facts logically styles, and adjust own as messaging through vehicle,
sional setting appropriate tone, and timing
Listen effectively, ask ques-
Understand verbal and tions, express concerns
nonverbal cues and their Communicate both positive Answer difficult questions
importance and negative results effec- from key stakeholders (e.g.,
tively with sensitivity to the staff, board members, au-
listener ditors, investment analysts,
and the media) effectively,
providing persuasive and
Make effective verbal and credible responses
written presentations
Coach others on how to

Use social media tools communicate effectively
effectively as a communica- and build consensus
tion vehicle
Excel at use of social media

tools to expand leadership
presence
Copyright © 2017
THEIMA (InstituteOF
33
CHANGE MANAGEMENT INSPIRING
Lead an organization, team, or individuals through transition toward a desired vision or goal

SKILLED EXPERT
No or limited knowledge, Understand the importance Participate in change Collaborate with other Champion change by lead-
skills, and/or experience of change as a critical initiatives, and encourage leaders in evaluating and ing the organization through
with change management element of continuous acceptance of change by executing change initiatives a major transition to achieve
improvement coaching those who are strategic goals
resistant
Encourage continuous
Seek to understand the improvement, and coach Promote the vision for
change and to accept Develop plans to support staff on how to maximize change, and lead major or-
implementation change initiatives effectively resulting benefits ganizational change efforts
with an appropriate degree effectively
of urgency
Identify barriers or resis-
tance to change initiatives, Create an organizational
Communicate reasons for seek ways to overcome culture that seeks innovation
change and associated them, and gain commitment and embraces change
plans effectively
Discourage functional silos,
and encourage an inte-
grated approach to perfor-
mance management
Copyright © 2017
THEIMA (InstituteOF
34
TALENT MANAGEMENT INSPIRING
Select, develop, and reward people effectively to ensure a strong workforce and successful business performance

SKILLED EXPERT
No or limited knowledge, Understand the importance Interview and select Develop effective staff Promote talent manage-
skills, and/or experience of talent selection and team members effectively, recruitment and retention ment and the importance of
with performance, talent, ongoing performance aligning skills with practices diversity across the organi-
and team management management for responsibilities and zation
organization success assignments
Develop team key
performance indicators Establish succession plan for
Recognize the desired levels Delegate responsibility, pro- that align with overall the finance organization
of performance for self and mote independence, and business objectives
team solicit feedback from team
Promote a culture of perfor-
Create a trusting environ- mance by communicating
Understand the importance Recognize excellent team ment for team members a clear vision and shared
of team dynamics, performance, and reward to ask questions and offer values
approaches, and output positive results ideas freely
Demonstrate the impor-

Prepare annual performance Coach and develop staff tance of teams to achieving
appraisals, and use relevant on achieving performance successful business results
and specific examples to en- goals
sure feedback is meaningful
to employee regarding Hold managers accountable
goals and performance Engage in career path for the performance of their
discussions and succession teams
planning for team
Recommend professional
development resources for
career advancement and
closing skill gaps
Copyright © 2017
THEIMA (InstituteOF
35
COLLABORATION AND TEAMWORK INSPIRING
Work effectively with others in order to achieve positive results

SKILLED EXPERT
No or limited knowledge, Understand the importance Work across departmental Collaborate with partners in Consider the importance
skills, and/or experience of collaboration and build- boundaries, and contribute the supply chain to achieve of corporate culture when
with collaboration and ing relationships beyond individual respon- beneficial working relation- assessing opportunities to
teamwork sibilities to achieve team ships enter into partnerships with
goals other organizations
Communicate with team
members in a respectful Provide constructive
and consistent manner Listen proactively to others, feedback and assistance to Serve as a role model in
encourage collaboration, others in addressing issues thinking outside the silo/
and help build consensus or conflicts business area to identify
Contribute to team efforts among team members opportunities for innovation
by taking responsibility
for own efforts and seeking Seize opportunities to team
input/assistance when Give credit to members of with others to achieve posi-
needed the team for their contribu- tive results
tions
Copyright © 2017
THEIMA (InstituteOF
36
NEGOTIATION INSPIRING
Reach agreement between two or more parties to achieve the best outcome for the organization

SKILLED EXPERT
No or limited knowledge, Recognize the importance Present a clear and concise Utilize a tactful and creative Achieve timely and positive
skills, and/or experience of negotiation in successful point of view using relevant approach to solving prob- results through negotiation
with negotiation business relationships data lems, and reach consensus skills
where all parties feel a win
was achieved
Anticipate probable points Serve as successful, “go-to”
of disagreement to be negotiator or arbitrator
negotiated Understand cultural and di-
versity differences and their
impact on negotiations Gain consensus consistently
Follow a defined process for from all parties in order to
negotiations, ensuring that achieve win-win organiza-
risks are identified and mit- Document decisions about tional solutions
igated and that corporate roles and responsibilities to
goals are achieved promote lasting agreement
and positive outcomes
Copyright © 2017
THEIMA (InstituteOF
37
CONFLICT MANAGEMENT INSPIRING
Resolve issues using appropriate influencing skills and tools to achieve successful business goals and arrive at the best organizational outcomes

SKILLED EXPERT
No or limited knowledge, Understand that conflict is Address conflict in a timely Deal effectively with difficult Encourage passionate de-
skills, and/or experience inevitable and that avoid- manner, and seek appropri- situations by asking clari- bate about issues and ideas
with conflict management ance is not a solution ate solutions fying questions, exploring to move the organization
solutions, and establishing forward
boundaries for all parties
Anticipate others’ reactions,
and consider others’ view- Create a culture where
points to promote mutual Intervene to defuse tension constructive conflict leads to
understanding with tactful and assertive continuous improvement
approaches
Analyze the causes and

components of conflict, Engage in respectful debate
including stakeholder view- regarding issues of impor-
points, competing priorities, tance
and limited resources
Raise issues to appropriate

management when resolu-
tion is not achieved
Copyright © 2017
THEIMA (InstituteOF
38
Conclusion
The accounting and business world is changing, with new technologies replacing many of
the accounting skills traditionally in demand. To keep up, management accountants need to
hone their skills in a variety of areas. CFOs, controllers, and their staffs are expected to be
conversant in new technologies, data management, strategy, and operations of the business.
This SMA identifies the core skills that management accountants need to succeed in today’s
business environment and is based on job analyses conducted by the Institute of Certified
Management Accountants (ICMA®) and validated by subject matter experts. As such, this
competency framework also forms the basis for the CMA exam. It covers competencies
needed in five skill areas needed by today’s management accountant: planning and
reporting, decision making, technology, operations, and leadership. Each skill area comprises
specific knowledge and skills, which are organized by increasing levels from “limited
knowledge” up to “expert.”
Management accountants can use this framework as a guide to keep their skill sets
relevant for today’s business environment. Providing the foundation for IMA’s CareerDriver®
Assessment Tool, it provides a pathway for finance and accounting professionals looking to
advance their careers as well as serving as a valuable tool for employers looking to enhance
the capabilities of their finance and accounting teams.
THE FUTURE OF MANAGEMENT ACCOUNTING IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK 39

Competency Framework SMA-FINAL

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Competency Framework SMA-FINAL

Uploaded by

Copyright:

Available Formats

ima

IMA Management Accounting Competency Framework

Statement on Management Accounting

THE FUTURE OF MANAGEMENT ACCOUNTING IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK 3

IMA’s Competency Framework identifies the core skills

In conjunction with CMA exam preparation courses and

PLANNING & DECISION

PLANNING & REPORTING

IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK 6

LIMITED BASIC APPLIED

LIMITED BASIC APPLIED

LIMITED BASIC APPLIED

Communicate the vision,

Perform a risk management

Lead or guide others to

LIMITED BASIC APPLIED

Understand and communi-

Serve as an expert in the

LIMITED BASIC APPLIED

Prepare projected income

LIMITED BASIC APPLIED

LIMITED BASIC APPLIED

Use capacity planning and

LIMITED BASIC APPLIED

LIMITED BASIC APPLIED

Use effective tax strategies

Lead tax strategy and

Negotiate settlements with

IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK 16

LIMITED BASIC APPLIED

Coordinate and integrate

Perform and interpret busi-

LIMITED BASIC APPLIED

Ensure compliance with loan

LIMITED BASIC APPLIED

LIMITED BASIC APPLIED

Prepare risk communica-

Analyze strategic risk,

LIMITED BASIC APPLIED

LIMITED BASIC APPLIED

IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK 23

LIMITED BASIC APPLIED

LIMITED BASIC APPLIED

Understand relationship be-

IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK 26

LIMITED BASIC APPLIED

LIMITED BASIC APPLIED

LIMITED BASIC APPLIED

Represent finance on oper-

LIMITED BASIC APPLIED

IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK 31

LIMITED BASIC APPLIED

Lead managers to motivate

LIMITED BASIC APPLIED

Coach others on how to

Excel at use of social media

LIMITED BASIC APPLIED

LIMITED BASIC APPLIED

Demonstrate the impor-

LIMITED BASIC APPLIED

LIMITED BASIC APPLIED

LIMITED BASIC APPLIED

Analyze the causes and

Raise issues to appropriate