‘Investing in the right talent critical to driving growth’

Research launched on 31 January to mark the launch of the Chartered Global Management Accountant (CGMA) designation shows with great clarity why global business has never had such an urgent need for CIMA members and students.

We all see and recognise that the world’s economy is going through a dramatic period of change, both economically and environmentally. Douglas Flint, chairman of HSBC, hit the nail on the head when he declared in our report “Rebooting Business: Valuing the Human Dimension”: “I don’t think we’ve ever been in a period, in our lifetimes at least, where things have been more uncertain.”

So what are the current challenges faced by global business leaders? Key trends captured in our CGMA survey of nearly 300 global CEOs show that investor demands have led to a short-term culture and fixation on the financials. Respondents feel there is an urgent need to start considering the full value of their organisation. This means they need the right people to measure and grow that value.

The main theme running through the research is the absolute need for the breed of financial professional who is able to offer a multidisciplinary approach, combined with a much broader perspective. Businesses are facing increased levels of complexity and the current environment means there is much less room for error.

This means that the focus on the quality of the decisions taken by companies and all organisations is paramount and must be driven by the right people. CEOs are adamant that they need help in “connecting the dots” to give a clear picture of how the organisation is running and where the opportunities are. This all points back to the core strengths of the management accountant.

Another key element covered by our joint research with the American Institute of CPAs is that of transparency. CEOs are aware that being transparent offers a competitive advantage, but find it difficult to draw the line between being open and handing valuable information to competitors.

Being transparent is a priority going forward, and skilled professionals who understand how organisations can act transparently and ethically are needed to harness the potential value.

What is the most critical theme to come out of our research? Business leaders agree that it is understanding and unlocking the value of the human dimension that is most critical to success.

James Singh, executive vice-president and CFO of Nestlé put it succinctly: “We have to move beyond the financials. We have to move beyond the numbers. We have to understand where the business is creating value, where it is destroying value.”

Interestingly, CEOs feel that customers and employees are almost three times more important to shaping their future business agenda than the financial markets, and twice as important as government and regulators.

Investing in the right talent is seen as critical to driving future growth for most of the global CEOs surveyed. But from the research I have outlined, it is the kind of talent they are looking for that is most exciting.

Business leaders need people with the crucial skills to succeed in these challenging times. There is an unmet need and opportunity for skilled people who can bridge the gap between business, strategy and finance. CIMA and the AICPA saw this need for a global standard of management accountancy – the CGMA – powered by prestigious accounting organisations with global reach.

If further proof is needed, 80 per cent of CEOs in our survey indicated that a candidate with this designation would be more appealing to their organisations than those without it, and 75 per cent said that they would want their existing finance employees to obtain it. Global business is calling out for your skill set.

As I said at the beginning of my column, business has never had such an urgent need for CIMA members and students. So, I believe that in these difficult economic times, you are recognised by global business as having the skill set to get the economy moving again.