The Finance Professional 2020-ACCA

7/28/2019 The Finance Professional 2020-ACCA

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Insights series

The finance professional in 2020


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PAGE

Foreword 2

Introduction 3

Executive summary 4

Key drivers 6

Key features and trends 9

Conclusions and final thoughts 16

Acknowledgements and bibliography 18

Contents

Welcome to our Insights series. We recognisethe importance you place on having an

opportunity to explore, reflect and plan

for managing the impacts of current and

anticipated challenges and opportunities.

Our Insights series of reports are intended to provide you with that space

and an insight on the key issues for the profession and employers and how

they are responding to them. Very often our reports will involve a survey of

the profession plus a review of existing research, so as to ensure you aregetting a balanced and comprehensive picture.

Our intention is that the series should reflect your challenges and your issues.

So, we would be pleased to hear from you, either specifically in response to

this report or indeed, on any other key issues of interest. Happy reading and

reflecting!

Best wishes

Stephen HeathcoteDirector of Learning and Development

PAGE

About ACCA

ACCA (the Association

of Chartered Certified

Accountants) is the largest

and fastest-growing

international accountancy

body with 260,000

students and 110,000

members in 170 countries.

We aim to offer the first

choice qualifications to

people of application,ability and ambition

around the world who

seek a rewarding career in

accountancy, finance and

management. ACCA works

to achieve and promote

the highest professional,

ethical and governance

standards and advance the

public interest.

www.accaglobal.com


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Introduction

The finance professional in 2020 is a thought leadership piece

around the future landscape for the finance professional. The research

identifies the drivers and future trends which are likely to shape the

profession, the individuals within it and their employers.

The research is relevant to the profession in that it will

support the change process required to respond to the

trends identified.

The objectives of this thought piece are to:

Identify key global trends that will shape the finance

profession

Understand the skills and knowledge likely to be

required of the finance professional of the future

Identify likely career structures of the future

Stimulate debate around trends and responses.

In order to obtain a comprehensive understanding of

the trends and issues the research was conducted

through:

Qualitative telephone interviews with 20

professionals from a range of sectors and roles (see

profiles below)

A review of existing literature, including existing

global surveys from ACCA and other sources,

academic papers, thought leadership papers and

other reference material

Excerpts from a recent ACCA survey on Talent

Management (Oct 2006), 2004 Skills Survey and

the 25,000 respondent consultation on the ACCA

2007 Professional Qualification.

A qualitative approach was used to ensure depth of

insight, encouraging participants to explore the issues

in detail and offer personal insights and examples.

Great care was taken in the selection of participants to

secure a breadth of coverage and appropriate mix of

profiles.

Pae Pfe

CFO, global bank

Chief executive, global finance training providerChief executive, professional services, not for profit

CPD national manager, global finance training company

Director of education and training, not for profit

Finance manager, private healthcare

Finance manager, public sector

Former head of finance training, global energy company

Head of global finance training, global energy company

Head of organisational learning, global bank

Independent finance researcher

Professor of accounting

Project manager, financial services

Senior executive, finance planning, global energy

company

Senior finance consultant

Senior finance manager, global bank

Senior independent finance HR specialist

Small-business finance expert

Talent manager, global finance, global energy company

Training and development partner, accountancy firm


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Executive summary

The finance professional in 2020 will be faced with a number of

challenges and opportunities shaped by the forces of enhanced

globalisation, changing demographics and significantly increased

business complexity.

The BRIC countries (Brazil, Russia, India and China)

are expected to have established themselves as

significant economic powers and this will shift thebalance of economic power, particularly as those

economies move from competing on cost to competing

on the basis of knowledge and innovation.

There was a general consensus that the convergence

of fast-changing technologies, fragmented consumer

tastes, ever longer supply chain and multiple dimension

supply chain relationships will create an environment

which is a more complex place to do business,

with increased risk. As one of the participants put it

Complexity breeds risk, risk breeds regulation, which

in turn requires further investment in compliance. It is

feared that such an environment could see the death of

professional judgement, to be replaced by rules-based

regimes. However, it is forecast that this generally

higher and more pervasive risk will drive innovative

mitigating measures, which will in turn bring more

simplicity.

KEy trEnds to WAtCh

Ga ama f ega

There was widespread optimism that International

Financial Reporting Standards (IFRS) would be adopted

across the major economies but there was significant

scepticism as to whether they would be implemented

and followed. Nonetheless, the general view was that

successful implementation of IFRS would lead to

initiatives to harmonise compliance, regulation and

auditing standards.

Mc ae faca epg

Financial reporting is expected to remain at the

heart of the profession (81% of ACCA members seefinancial reporting as one of the four most important

competences). Demands from ever more savvy and

diverse investors, demand for greater transparency and

free access to information plus the rise of intangible

assets, are expected to drive organisations into

reporting on broader measures. These could include

sustainability, risk, corporate governance and human

capital. This will require finance professionals to

develop new and innovative means of measurement

and reporting, together with the requisite skills and

methodologies.

te paa a fagmea f face e

It is expected that over the next 15 years, finance roles

will further polarise and fragment.

Polarisation will develop across two dimensions,

namely:

The generalist v the specialist and,

The value add professional v the transaction

technician.

Specialist niche roles will initially be highly prized

and valued but over time such roles could lose their

allure as they become commoditised and probably

automated. However, there will still be value attached

to the generalists, based on their understanding of

a broad range of issues. As complexity will be a key

feature of this environment, so will the demand for

the professional who can provide a strategic overview,

decision making and direction. That person will be


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Executive summary

capable of exercising fine professional judgement,

particularly in dealing with the risks (defined as

opportunity and danger) present.

This polarisation will be driven by the needs of

organisations to manage complexity, reduce cost and

utilise their finance professionals in areas where they

can add most value. Roles such as those below may

begin to evolve:

the naga (a generalist who helps the

organisation steer through complexity)

the Ce (a risk specialist who pervades all

parts of the organisation)

the Eepee (a leader who seeks opportunities

and maximises value)

the tecca peca (a professional with a highly

discrete specialism)

the t-ape pfea (a professional with

broad generalist technical and business knowledge,

complemented by a deep specialism)

the tecca (a non-professional with a process-

driven role).

te gw a eepme f ae maageme

pgamme

Adverse demographics in developed countries will

create a scarcity of talented finance professionals,

thereby driving up their value, but this could be

addressed through the employment of finance

professionals in the BRIC countries, for example,

through immigration or offshoring. However, the surveydid demonstrate that employers still have some work

to do in ensuring they have the human capital required

for business success. 59% saw talent management

as being a means of recruiting, developing and

retaining people in an organisation who have high

potential; 76% recognised it was very important; 63%

appreciated the negative impact that would arise by

not having a talent management strategy but 41% had

no strategy and no plans to implement one.

te k a ae eee f e ew

eme

The anticipated development of roles and of the

finance function will drive the skills, knowledge

and attributes required by the finance professional.

Areas already being promoted, developed and offered

by ACCA (the ACCA Professional Qualification,

continuing professional development (CPD), Career

Pathways), feature quite strongly. The ability to

exercise professional judgement based on a foundation

of ethics, broad but deep technical excellence plus

strategic awareness and communication will be key.

2020 could also see the advent of the T-shaped

professional, that is, an individual with broad generalist

finance knowledge and strategy skills complemented

with a deep technical specialism in, for example, risk

or financial reporting.

It is anticipated that finance professionals will

develop a portfolio of roles throughout their career,

most of which will reach across multiple parts of the

organisation. Additionally, the ability to manage in an

uncertain and complex, ambiguous environment, idea

sharing and an ability to learn through experience, will

be the most sought-after attributes.

te e f e face fc

The finance function is expected to develop into a more

central role, providing strategic and risk management

advice to all parts of the organisation, from operations

to marketing. It will continue its evolution from afunction focused on transactions into decision-making

support and finally, will adopt the leadership role of the

organisation.

It will focus highly on knowledge and use this as a

means of identifying and creating value throughout

the organisation. Its extensive knowledge of the

organisation will further support this.


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Key drivers: globalisation, demography, complexity and risk

Respondents generally agree on the emergence of the BRIC countries

(Brazil, Russia, India and China) as having a major impact on future

global growth. That growth is not expected to occur in a straight line

as those economies will pass through the same development cycle as

have the developed economies. Problems for economic development

are likely to be exacerbated by migration of talent. To take advantage

of this trend it is expected that China and India will initially competefor business as educational hubs for the profession, acting as major

suppliers of the worlds finance professionals.

We can, however, expect the locus of financial power

to shift, providing greater balance, as business activity

and income levels increase (for example, in China by

2020 the estimated number of Chinese households

achieving European-level incomes will be 100

million1).

In time we may also see emerging economies moving

beyond their role as educational hubs and providers

of low cost shared service centres (SSCs). We may

expect these economies to challenge for a share of

more complex transactional and non-transactional

services enabled through development in services and

technology.

While emergence of the BRIC countries will mean

increased markets and opportunities for business and

the profession, this growth will take place within the

context of a shortage of natural resources. Additionally,

cultural differences may lead some economies to

challenge the dominant Western approach to business,

ethics and accounting.

If we consider the two big players,

which will take better advantage of

this growth potential, India or China?

China will, in the short term, need

to establish better governance andaddress issues around intellectual

property and quality. Will Indias

English language advantage and more

internationally understood legal system

prove the deciding factors?

Regulatory

harmonisation

Regulation

compliance

scrutinyBroad FR

Skills for

the future

Evolution of the

finance function

Talent

management

Role polarisation

Gaa

Cmpex

demgap

1 Ten trends to watch in 2006, McKinsey


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The developed economies

are now experiencing adverse

demographics in the form of

falling birth rates and ageing

populations. Will this lead to

a shortage in qualified finance

professionals and how will this

impact the world economy,

the profession and individuals

prospects?

The most commonly held

view, which we would concur

with, is that there is unlikely

to be a long-term shortage of

professionals. Falling populations

in developed countries are likely

to be balanced by increased

geographic mobility, particularly

from emerging economies, and an

overall reduction in the required

qualified headcount driven by

role polarisation, offshoring and

technological innovation. In the

mid-to long-term, market forces

and increased educational opportunities are expected

to balance supply and demand.

Supply of adequate talent could also be assisted by

more flexible employment practices, which support

professionals in extending their career beyondtraditional retirement age and encourage existing non-

working qualifieds, for example career breakers, to

return to the profession. As a result, organisations will

need to develop more innovative ways to recruit and

retain people into the profession and to develop them

within what is likely to be a more specialised finance

environment.

What will be the impact on those emerging economies?

In the short term we may see a similar situation as has

arisen with the migration of healthcare professionals to

Europe and the US, attracted by

salaries unachievable at home.

In turn, emerging economies may

focus on strategies to redress

the imbalance by encouraging

inward migration and deploying

strategies to retain their best

people.

There is a wide consensus that

the future environment will

become increasingly complex.

If the current concern regarding

geopolitical and environmental

issues proves founded there will,

of course, be an inevitable impact

on the business environment. And

surely the future growth of trans-

national organisations and global

trade is another strong argument

for anticipating greater complexity

and risk?

Complexity drivers to emerge

from the research include:

The ever increasing pace of technological change

Competition for customers leading to more diverse

and fragmented services and products

Longer and more inter-dependent supply chains

Regulation

New business models Access to, and competition for, emerging markets.

Complexity leads to less doing,

more thinking.

se face hr peca

A recent CIPD survey

found that 15% of UK

organisations are

targeting migrant

workers from the EU.

Financial Services

company Standard Life

has scrapped its

retirement age from

October 2006 ahead of

UK age discrimination

regulations. Employees

will be able to choose

when they stop work.


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Simplicity drivers

Complexity drivers

A consequence of a more complex future is a growth in

specialisation for finance professionals. This is explored

below but here it is useful to point out that risk itself

may become an even higher-profile specialism than at

present, with a larger number of organisations co-locating risk management activities which are presently

dispersed across finance, HR, operations and strategy

functions.

A further consequence of increased complexity is an

increased emphasis on governance. There will be a

drive to deploy governance structures that prioritise

and systematically assess risk. To enable these

structures, professionals are likely to require a broader

knowledge of the business and its environment.

However, if increased regulation and complexity has

led to increased specialisation, these individuals may

become a scarce resource. If greater complexity occurs

alongside increased regulation, we may see the talent

pool shrink further as the focus for resource shifts to

compliance, leaving less scope for strategic thinking.

If complexity breeds risk and risk breeds greater

compliance, a challenge to the profession, professional

bodies and employers will be how to ensure that the

compliance/strategy skills gap is managed.

There seems to be a trend

towards Government seeking to

use the accountancy profession

as its agent, placing obligations

to disclose information, report

money laundering etc.se epee face ca

An alternative, though minority, view to emerge from

the research is that there will be no greater complexity

than now. The response to complexity is often greater

innovation, which makes the complex simple once

more. Technological advances including intelligentsystems are beginning to perform this function and

are likely to be refined and adopted over the coming

years. If implementation proves successful, intelligent

systems are likely to have the same effect that

improved risk management has had, that is, better

management of risk and complexity.

Lastly, as discussed below, greater role specialisation

may result from the need to manage complexity and be

seen as a means of mitigating risks that may arise from

lack of competence or knowledge.



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Key features and trends

We found seven clear trends, each of which would impact the finance

professionals, their employers and the profession generally. The

common message is that the environment will drive significant changes

in the way organisations view the roles of finance professionals,

the skills and attributes they require and how risk is perceived.

Consequently, ACCA remains committed to providing the frameworks,

organisational development support, qualifications and learningopportunities to help the profession and its employers meet the future

challenges and opportunities.

rEGulAtion. CoMPliAnCE. sCrutiny

This decade has so far seen an unprecedented focus

on and scrutiny of business and finance activities. The

reasons are well rehearsed and the consequences in

the form of increased regulation and greater emphasis

on compliance work have had an enormous impact on

the business landscape in which we operate.

But is this focus a temporary aberration or a permanent

feature of the landscape? Or are we at one extreme

of the business cycle, which will revert once more to

greater liberalisation and looser regulation?

Opinion is divided as to whether regulation will

continue to tighten or slacken off.

There will be a retreat from the

current regulatory framework

which is too extreme and driving

people out of capital markets

into private equity.

Maagg ec, ga faca ag pe

If we accept that current regulation has been driven by

recent accountancy scandals we must ask will there

be more such scandals? If we assume yes, we may

expect to see a further increase in regulation leading to a

greater focus on compliance work. If a more rules-based

approach becomes dominant it may be that applying

the concept of true and fair becomes less important to

the work of the finance professional. The diminution of

professional discretion may mean some roles present less

of an intellectual challenge, which may in turn, dissuade

talented individuals from entering the profession.

On the other hand some argue that there is no going

back. But what would drive a backshift? If companies

move to less regulated markets? If private equity

continues to grow?

Under either scenario the debate about the natureof regulation (rules or principles-based) is likely to

continue. In a multifaceted complex environment the

application of professional judgement has a vital role

to play, as rules-based systems will be ill fitted to an

uncertain and complex environment.

Our view is that the current regulatory position is

likely to remain, with neither a discernable increase or

decrease. However, we can see professionals becoming

even more adept at managing the regulatory maze and

in time being able to delegate this activity to non-

professionally qualified technicians.


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rEGulAtory hArMonisAtion

Our research indicates

widespread optimism on the

harmonisation of accounting

standards. It is generally agreed

that IFRS will be widely adopted

by the major developing and

developed economies, albeit with

highly uncertain timescales. It is

commonly felt that resistance is

likely to continue from developed

economies, which may well slow international

implementation. In contrast, we may see the BRIC

countries driving adoption of international standards

and in turn bringing the developed countries with them.

Market forces may also drive harmonisation. An example

might be the merger of stock exchanges. However, in a

contrasting view, some respondents operating in global

business indicated a belief that implementation was

already slowing down and that the need for harmonisation

is increasingly being questioned.

There is some caution being expressed about just

how deep the adoption would run. While it was felt

standards would be beneficial and generally adopted,

it was also agreed they would not necessarily be

applied consistently, particularly in economies with less

transparent regulation. The consequences? We may see

national regulators sharing information and converging,

perhaps on a regional basis, and even extending their

reach into territories not currently regulated.

They will adopt IFRS but will

they use it?

Pfe f accg

Another potential consequence of greater regulation

and convergence of standards is accounting industry

consolidation. This may see the rise of global firms

from China (developed to support the global ambitions

of Chinese industrial champions)

and/or a consolidation of smaller

firms, to challenge the Big 4

and bring more choice into the

market.

FinAnCiAl rEPortinG

Reporting will continue to be

at the heart of the finance

functions work. The nature of

the reporting, however, is likely to

continue to broaden. For external reporting, corporate

social responsibility (CSR), corporate governance,

environmental impact including carbon emissions, and

human capital metrics are all likely to feature and will

become the standard rather than the exception.

Increased scrutiny, a drive towards transparency,

freedom of information, free movement of information

and better educated populations will extend the scope

of reporting. Producing intelligible reporting from a

greater number of sources with more complexity for

multiple audiences will be a formidable task. The

continued development of communication technologies

and populations more inclined to take direct action in

the form of, for example, product boycotts, will increase

the need for transparency and simplicity in reporting,

albeit on a more complex picture.

We see that tomorrows global professional accountants

will face an ever increasing set of competing valuesand complexity in the business environment. They will

face increasing demands from investors to improve

financial returns and measure and report on forward-

looking indicators. Given that financial markets survive

and thrive on accurate and freely available information,

the integrity of those who prepare that information is

paramount. The ability to exercise judgement based on

ethics will be the one constant that will ensure finance

professionals maintain that integrity and successfully

circumnavigate complexity and ethical dilemmas.

Indeed, our 2007 Professional Qualification, with an

81% of members

consider financial

reporting one of the

four most important

competences in their

current role.


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PAGE 11


all pervasive ethics approach and

specific subject areas entitled

The Professional Accountant and

Accountant in Business, is aimed

at preparing the next generation

for this.

rolE PolArisAtion And

FrAGMEntAtion

We expect to see increasing

polarisation and fragmentation

of roles in the profession. This

polarisation is likely to be

evidenced along two dimensions:

the value add professional v the

transaction technician and the

generalist v the specialist.

dme 1 te ae a

pfea e aac

ecca

More specialisms, fewer daily

transaction activities

hea f face ag, ga cmpa

While this trend is firmly in evidence today, many

participants indicated there was likely to be a

broadening of both the tendency for separation

of transactional work from higher-value work andadditionally, an increase in what will be classified as

transactional work.

Availability of lower-cost qualified professionals

through offshoring; the possible increased use of part-

qualifieds for transactional work; automation enabled

by advances in accounting technology, including the

deployment of Extensible Business Reporting Language

(XBRL), are all strong drivers for this polarisation.

Consequently there will be an increasing tendency for

most transactional work to be undertaken by SSCs,

leaving the finance function to

manage the relationship and

risk with the SSC and shift

focus to other areas such as

strategy, niche specialisms and

organisational leadership.

And what will be classified as

transactional work by 2020?

Respondents suggest that some

work which is currently regarded

as specialised will, by then, be

supported by technologies and

will require a lesser degree of

human intervention. Indeed,

we might expect to see a cycle

in which specialist roles are

initially highly prized, but over

time become more mainstream,

transactional and are valued less.

What will be the business impact of this

commoditisation of finance activities? Presently SSCs in

developing countries are focused on the transactional

activity considered low margin by organisations in the

developed economies. Will this migration of activity

continue with high-value services? Many would suggest

that with their strong and deep skills base, developing

countries will acquire a greater share of more complex

work and play a significant part in speeding up the

pace by which such specialist work is commoditised.

dme te geea e peca

A key driver toward specialisation will be increased

regulation and attendant complexity and compliance.

Assuming regulation does increase, specialisation

will also require greater focus on technical skills

development. Professional bodies and businesses will

be required to respond with development and delivery

of technical learning options in a broader range of more

specialised areas.

87% of ACCA students

consider integrity and

professional ethics as

first in the list of core

skills for the future

finance professional.

In the same survey

67% viewed credibility

of the profession as a

long-term issue.

(Source: ACCA student aspirations

survey, 2004)


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For the profession as a whole, well grounded technical

financial knowledge and skills will remain highly

relevant. For one group, those post-qualification skills

will be increasingly focused into narrow specialisms.

Unchecked, this may present a problem for leadership

development and succession. If professionals are

forced to specialise more intensively and earlier in their

careers it may be difficult to provide the individual

with the high-level view required for more strategic

leadership. If this is the case, should we now be

developing the rather paradoxical specialist role of the

generalist, as great value may be placed on leadership

and the ability to see the big picture?

We can see the evolution of six major roles in this

future environment:

the naga (a generalist who helps the

organisation steer through complexity)

the Ce (a risk specialist who pervades all

parts of the organisation)

the Eepee (a leader who seeks opportunities

and maximises value)

the tecca peca (a professional with a

highly discrete specialism)

the t-ape professional (a professional with

broad generalist technical and business knowledge,

complemented by a deep specialism)

the tecca (a non-professional with a process

driven role)

How might the trend to specialisation affect theaudit profession? If we assume the same drivers to

specialisation exist for auditing as for other finance

activity, we may see audit reports becoming a

collection of specialised reports from a variety of

sources, perhaps even from outside the main auditors.

There may well be a growth of auditing of internal

reporting and the profession may focus on high-value

activity like valuation and reporting on CSR, corporate

governance and strategy. The result of this increased

demand for more and broader auditing may mean the

blurring of the distinctions between the finance function

and other functions of a business. Indeed, we may find

the finance function, or at least some of its traditional

activity, relocated and embedded into those other

functions.

It has also been suggested that the increased

complexity of organisations may require a continuous

auditing regime in which the auditors are situated

in the business all year round. However, the risk of

jeopardising objectivity and independence will have to

be considered.

An alternative suggestion was for would-be auditors to

undergo two years work experience before embarking

on their professional qualification to ensure they have

acquired the sound business experience required in

order to conduct their assignments effectively.

thE AvAilAbility oF tAlEnt

Talent issues are likely to come to the fore as the

profession continues to develop in response to the

changing business environment. The areas most

likely to occupy those involved in recruiting, retaining

and developing talent are: drawing advantage from

increased mobility; the opportunities and challenges

of greater diversity; demand for flexible employment

models; the need for new and the more specialised

skills. It will be imperative for educators, professionals

and employers alike, to work together in ensuring that

the relevant guidance, support and resources are made

available for the development of the next generation offinance professionals.

Increased mobility of professionals offers significant

opportunities for developed and developing countries

alike. The research suggests a continued migration

of more highly skilled knowledge-based workers

to the developed countries. This move is likely to

be supported by harmonisation of accountancy

standards and accountancy education including,

crucially, harmonisation of ethical standards. However,

technology may act as a balance, with more work



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PAGE 1

itself being migrated to lower-cost economies, allowing

those professionals to stay in their home countries.

Nevertheless, the most talented individuals from

developing countries are likely to benefit the most, with

competition for high-potential candidates increasing

ever more as the talent pool within the developed

economies shrinks due to static or negative populationgrowth. But will this talent stay? In the longer term

will we see talent returning to its country of origin

as economies mature and opportunities there grow?

Our experience would indicate that once people have

acquired sound experience, they will tend to return

home, thereby providing those economies with a highly

talented resource.

The picture painted above is clearly one of increased

diversity within the profession. We can also expect

changes in the way people work. The promise of

virtual working may finally become a reality. This may,

to some extent, mitigate the migration of professionals.

Also, we can expect to see professionals swapping

between full time, part time, contract and permanent

positions at different points in their career. Increasing

specialisation could be a driver for this if these skills

are only required for limited periods by businesses. We

may see the growth of the individual and independent

professional.

What are the skills required for the individual to

succeed? At the strategic level, communication and

leadership will remain key. It is likely that succession

planning will be increasingly important. With a highly

mobile profession, and potential shortage of strategic

thinkers, managing employee motivation is likely to be

key to successful retention of the best people.

For HR this scenario presents a number of challenges:

recruiting from new markets, balancing cultural

expectations, professional development and retaining

talented individuals. And what skills will HR and

the profession be looking for? Specialised technical

knowledge will be a given, alongside which will

sit flexibility, potential to think strategically and

yet understand the limits of ones own knowledge

but also be highly skilled in accessing and filtering

relevant information a profile akin to the T-shaped

professional role class. Finding the highest-potential

candidates in a more distributed talent pool of more

specialised individuals may require more sophisticatedmethods than are commonly employed at present.

The credibility and appeal behind an employers brand

will also play a key part in attracting young talent, who

will seek alignment between the values of an employer

and their personal values. Sustainable business

reflecting the concerns of society may help to attract

and retain people longer. They are also likely to seek

intellectual challenge, flexibility and opportunity for

career advancement.


W ee tae Maageme

ceae e fe?

100

80

60

40

20

0

Increase

Staysame

Decrease

Dontknow

Source: Talent Management in the Finance Profession:

Global Survey Report 2006, ACCA 2006

%o

frespondents


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PAGE 1

sKills And AttributEs For thE FuturE

EnvironMEnt

The finance professional, in 2020 will require a

rigorous and broad technical foundation linked with

work experience. They will require sound professional

judgement and ethics, which will further differentiate

the qualified from the unqualified and determine their

capabilities and opportunities.

While we expect to see greater role fragmentation, we

also expect to see these role profiles sharing some of

the same skills and attributes but with the difference

coming in the focus of each role. Similarly, we would

expect valued professionals to have held several roles

throughout their careers. The illustration below seeks to

outline the evolution of skills and attributes required for

the future.


Wa we ae w Wa we ee f e fe

team pae Team player, coach and mentor support and lead teams as appropriate, aid the experiential

development of upcoming professionals.

G f f e Broader range of skills plus the flexibility to reinvent oneself in a range of roles. More creativity, idea

sharing and lateral thinking.

speca k A new range of role profiles built around a sound, general technical background but with a specific focus.The T-shaped professional, the navigator, the entrepreneur, the technical specialist and the centurion.

rg f me g Excellent execution (right first time) combined with a willingness to experiment and learn.

accac, me

Pce fc Outcomes focus greater weighting placed on what organisational outcomes and output measures are

required (as opposed to designing the process).

opeaa Strategic.

Cme ee Customer intimacy closer internal and external relationships in order to understand and align mutual

needs.

Wkg Greater collaboration and challenge with all parts of the organisation and customers.

thE Evolution oF thE FinAnCE FunCtion

In the short to medium term the finance function

is expected to complete its transformation from

a transaction-processing focus to a fully fledged

business partner with a high decision support

capability. However, the finance function in 2020

may also have assumed a leadership role throughout

the organisation, primarily due to the extent of its

organisational knowledge and influence. In this role it

will assume responsibility for strategy development and

implementation as well as managing the risks that may

impact the future success of the enterprise.

Risk should increasingly be seen as both danger and

opportunity. It ought to be viewed and managed

across a wider range of areas to include people and

intellectual property. In essence, the management of

risk, in its interpretation as opportunity and danger,

should become part of the strategic process. In the

future we anticipate that finance professionals with


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PAGE 1

their training, experience and broad organisational

perspective will assume leadership of the organisation.

Finance could become the new

strategy function

Faca ce,

ga faca ece gaa

Key areas such as Financial Reporting, Management

Information, Treasury and Corporate Finance, are

expected to remain and flourish.

However, a less optimistic view (and one we dont

subscribe to) is that of a finance profession more highly

regulated and more narrow in scope than now, where

much specialised work can be automated and a smaller

pool of strategic thinkers oversee activities and plan the

future. This narrow focus could make the professionless attractive to the graduate and consequently stunt

the potential for innovation.



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PAGE 1

Organisations need to consider the risks around ensuring that they

have the right people, with the right skills, knowledge and expertise, in

the right roles and within the right organisational structure.

Conclusions and final thoughts

Focusing, retaining and developing what drives and

protects value is key. The finance function of the future

will develop around:

Leadership, strategy and change

Risk and compliance

Finance specialisms

Managing outsourced functions.

Organisations should link finance skills development to

the roles that will drive value. Suggested role classes

include:

The Navigator

The Entrepreneur

The Centurion

The Technical specialist The T-shaped professional

The Technician

In tomorrows fast-evolving, complex environment,

finance functions should be the champions of change.

Our perception of risk should change, so that it

encompasses danger and opportunity and to recognise

its increasing pervasiveness.

In a complex environment, the ability to exercise sound

professional judgement will provide the flexibility and

the skill of simplifying complex, multi-dimensional

issues. The core attributes of professional judgement,

technical excellence and ethics, should continue to be

protected and promoted.

At the heart of being a professional is the duty to

uphold the public interest above ones own and

to make accurate judgements based on acquired

knowledge, skills, expertise and experience. This is

knowledge that is regularly updated and skills that

are regularly refreshed and developed. For finance

professionals, the independent exercise of judgement,

based around ethical values and technical skills is the

key to their current and future role. This will continue

to be supported by our approach to professional

work experience, which seeks to ensure that trainee

accountants have exposure to and an opportunity to

learn from real life dilemmas, while under supervision.

Todays professional accountant operates in an

environment of time-and space-reducing technologies

with an increased emphasis on ethics and corporate

governance and demand for new, value adding

services. With greater automation and processing,the role of a professional accountant has evolved into

one focused on managing uncertainty, complexity and

strategic decision-making within an overall context of

heightened governance. The attributes possessed by

professional accountants facilitate entrepreneurship,

help managers create value, manage risk and help us

rationalise complexity. This is the role of the 21st-

century professional.

Going forward, we would urge the profession,

organisations and finance professionals to consider how

they might prepare for 2020. The following questions

might be useful to help formulate some thoughts:

To what extent would complexity impact my

organisation and its customers and what would this

mean for our finance function or clients?

What are the value levers in my organisation (or that

of my clients) and how do we ensure that finance

professionals are focused on leveraging these? Do

we outsource our other activities or move them to a

shared environment?


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What role would risk play? Do we need to consider

risk at a more strategic and pervasive level?

What capabilities might we need and which role

types might we need?

How can we mitigate the risks associated with a

dearth of talent?

And additionally:

How do you see your role (and/or those you

manage) evolving as we approach 2020?

What steps would you need to take to make that

transition?

Do you consider that any of the role classes we

suggest would be relevant to you (and/or those you

manage)? And if so, what roles do you (and/or those

you manage) need to develop towards?

We welcome your thoughts and views on this subject.

Please contact us by e-mailing [email protected]

Conclusions and final thoughts


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Acknowledgements and bibliography

ACCA wishes to extend its gratitude to all those individuals who

responded to this survey.

Particular thanks is due to the expert panel, consisting

of senior industry and academic figures, for giving their

time so generously in support of this project.

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The Finance Professional 2020-ACCA