FM June 2019 Cima

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CONTENTS
22
ON THE COVER: IMAGE BY VIORIKA/ISTOCK; COUNTERCLOCKWISE FROM TOP RIGHT: IMAGE BY KATIE EDWARDS/IKON IMAGES; PHOTO BY FIONA HANSON/AP IMAGES;
16
6 THE VIEW FROM THE 12 CIMA HISTORY 22 BRINGING VALUE TO
PRESIDENT This timeline explores the HEALTHCARE USING
CIMA President Steven organisation’s most significant COST ACCOUNTING
PHOTO BY ROY BARON/AVALON; PHOTO BY PETE CARR/COURTESY OF NATIONAL MUSEUMS LIVERPOOL; PHOTO BY ROY BARON/AVALON
Swientozielskyj, FCMA, moments since its founding as Professionals at the UK’s
CGMA, reflects on a year of the Institute of Cost and Works National Health Service are
service and engagement. Accountants in 1919. using principles that date back
to cost accounting’s roots as
8 LEARNING FROM THE 14 ART FOR ALL they employ a data-centric
PAST The art gallery that CIMA’s first approach to improving patient
Andrew Harding, FCMA, president, Lord Leverhulme, care and efficiency in
CGMA, the chief executive– built in the UK for his soap treatment.
Management Accounting for factory workers is still filled
the Association of with treasures. 28 A CHALLENGE TO THE
International Certified PROFESSION
Professional Accountants, 16 STANDING THE The accounting profession
looks back for lessons for the TEST OF TIME AFTER has a role to play in solving
future. 100 YEARS global problems such as
CIMA’s dedicated members climate change and
10 INFO ROUNDUP have advanced the cause of cost income inequality, former
6
News, insights, and and management accounting Unilever CEO Paul Polman
intelligence. through war and peacetime and said at the CIMA
are poised to meet the President’s London
challenges the future will bring. Centenary Dinner.
28
14
FM-MAGAZINE.COM June 2019 I FM MAGAZINE I 3
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4 I FM MAGAZINE I June 2019

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THE VIEW FROM THE PRESIDENT
STEVEN SWIENTOZIELSKYJ, FCMA, CGMA
I
n my first FM column as In that first July column I
CIMA president in July I set identified CIMA’s stakeholders
out how I wanted to serve whom I wanted to engage with
during this pivotal year in our and influence. Top of that list
Institute’s history. have been members and
Throughout, it has been a students — the future of our
privilege to champion CIMA’s profession. But I also wanted to
centenary and our Future of ensure I could meet with
Finance research. employers, academics,
As well as looking forward, I government representatives,
have been committed to regulators, professional bodies,
respecting our great heritage. and the media to make an
Our centenary is an opportunity impact and drive positive
to celebrate what started in outcomes for our members,
1919 as a small number of profession, and organisation.
leading early 20th century
businessmen who were
inspired and had the insight to
A pivotal year Members
Meeting members throughout
develop a new approach to
accounting that met the
‘Throughout, it has been a privilege the year has been a great
privilege — I have encouraged
demands of manufacturing’s to champion CIMA’s centenary and and inspired them to be brand
new mass production methods. ambassadors and advocates for
The rigorous and robust our Future of Finance research.’ our qualifications.
FROM LEF T: PHOTO BY MICHELLE VAN DER WESTHU YSEN/MICHELLE K ALP PHOTOGR APH Y;
Future of Finance research To take one example of

gathered the views of more many, in Dubai I was privileged
than 5,500 finance professionals through interviews, to speak to PepsiCo’s regional finance team. This
roundtables, and a large online survey of members company has been successful for more than 100
and students. Globally, its impact has been years and like CIMA has continued to respect its
phenomenal. I used the research as a platform to talk heritage while always taking the business to the next
to members and students — and a range of other key level. It is well understood that the average lifespan of
stakeholders. leading companies has dropped dramatically over the
past 100 years. It is down from 90 years in the 1920s,
PHOTO BY ROY BARON/AVALON; PHOTO BY BENIL MARCUS
The CIMA delegation and Cert. BA students at the Presenting on the Taking part in the panel discussion at the CIMA
Gauteng graduation ceremony in Pretoria, South Future of Finance in Business Leaders’ Summit in Colombo, Sri Lanka,
Africa, in March 2019. London in April 2019. in August 2018.

according to the London Business School Review, to 17 years today. work and highly instructive all round. One highlight was taking
That puts CIMA’s 100-year-long timeline of success clearly into part in a very lively academic roundtable in Auckland. Scheduled
perspective. for two hours, it was still going strong after three and a half.
Further opportunities, in the UK, to meet, listen to, and engage
with members were in March and April, when I spoke at a series Government representatives, regulators, and
of “President’s Roadshows” in major cities. professional bodies
Sri Lanka is one of our larger markets. I was pleased to attend
Students CIMA’s annual flagship event there: the Business Leaders’
My visit to Christ University in India impressed me enormously. Summit, which attracts a large number of senior business
It is not surprising that a large number of Indian CFOs studied leaders. A government minister acknowledged in a speech there
there either at undergraduate or masters level. It is difficult to that CIMA had been instrumental in the development of the Sri
fully comprehend its students’ work ethic — lectures start at Lankan economy. I also met other key figures in the Sri Lankan
6.30am and after they end at 5pm, there are music and dance government and was able to discuss a range of issues.
activities. Classroom-based study also continues on Saturdays.
The heart of India’s tech industry — its “Silicon Valley” — is in Media
Bengaluru (Bangalore). There I presented on the Future of Engaging with the media is on the agenda of any CIMA president
Finance to potential students at Wipro, the 160,000-employee to build awareness of who we are. For me, this has meant
global information technology, consulting, and business process interviews with a diverse range of media including the popular
services company. UAE Arabic-language newspaper Al Bayan; the Manchester
Poland has enjoyed continued growth since 1992 — the best Evening News in the UK; Poland’s national daily economic and
record of any European country. Our students — and members legal newspaper Rzeczpospolita; and television interviews in
— are part of that success, and it has been valuable to visit and Botswana and Canada.
meet many of them. I have embraced social media, too. By the end of my year as
president I will have completed ten Facebook Live videos and
Employers reached an audience in the hundreds of thousands.
During the year I engaged with a large number of employers with
a twofold aim: to build and deepen CIMA’s relationship with Final thoughts
them and to drive the value of and demand for the CGMA On a personal level, the year has been both challenging and
designation. rewarding. CIMA’s great history, born out of the early years of
Meetings ranged from small groups of employers, for mass production, is an example to many of how an organisation
example, an IBM-hosted event in London with ten CFOs, to can ride the waves of economic, social, and technological change
one-to-ones, for example, with the chairman of Deloitte India. and emerge with strength for long-term success.
My aim here was to profile the Association as the leader of the I believe organisations need to innovate to survive and thrive.
FROM LEF T: PHOTO BY BENIL MARCUS; PHOTO BY ROY BARON/AVALON; PHOTO BY BENIL MARCUS
future of finance space and as the expert in defining the future The same is true for individuals — we need what psychology
skills and competencies for tomorrow’s finance professionals. professor Carol S. Dweck, Ph.D., describes as a “growth mindset”,
which leads to a desire to learn and an ability to confront and
Academics surmount obstacles. Finally, I want to quote industrialist and
A part of my work this year has been to philanthropist John D. Rockefeller’s challenge: “It
build advocacy amongst academics for requires a better type of mind to seek out and to
our qualifications and CIMA support or to create the new than to follow the
membership. Engaging with this key worn paths of accepted success.” Q
audience on the Future of Finance
research has been an important strand of
Lighting of the traditional oil lamp at Speaking at the CIMA Meeting Sri Lankan Prime Minister Ranil
the CIMA convocation in Colombo, President’s Centenary Dinner Wickremesinghe (far right) and International
Sri Lanka, in September 2018. in London on 8 March 2019. Chamber of Commerce India president
Jawahar Vadivelu (middle).
June 2019 I FM MAGAZINE I 7
Learning
from the past
By Andrew Harding, FCMA, CGMA
suite of CPD programmes, we are
O
ne hundred years ago, CIMA announced that an Institute team was to
was founded by a group of visit the US to investigate the use of equipping our members to thrive in that
forward-looking costing information through the digital future.
businesspeople. Their Anglo-American Productivity Council. It As work becomes increasingly
intention was to transform the marks the point when management technology-enabled, I believe the
accountancy profession into one that accounting entered the lexicon of our management accountant’s role will
would support them in managing and Institute and its members. It is clearly an become even more critical to the success
leading their businesses. important evolutionary step in CIMA’s and longevity of organisations. Canadian
Early on, there was a strong link with route of progress throughout the past historian Margaret MacMillan neatly
engineering. “Mechanical knowledge” century. Today, management accounting is makes the case for learning from the past.
was the title of a paper in the first recognised as the essential part of “History can help you … to make sense of
Institute exam in 1920, and our early “decision support”, and management your present situation; to remind you that
vice-presidents represented key industry accountants work alongside business there were other situations like it in the
segments including steelmaking, cotton leaders and managers as trusted and past; and to help you formulate the right
spinning, car manufacturing, and printing. objective partners. questions.” I believe learning from past
The initial work of the Institute was Over the years, we have added value to experience can prepare you to bring order
around cost management: The period up business. We have also provided quickly when faced with the ever more
to the late 1930s can be described as the opportunities for people across the world complex scenarios that accelerating
development of costing as a science. It to have rewarding and satisfying careers. change in business brings.
culminated in the publishing in March Our members have made a difference not Our members’ roles are increasingly
PHOTO BY STE V E FORREST/STE V E FORREST PHOTOGR APH Y
1937 of “Costing Terminology” in The Cost only to the businesses they work for but about asking the right questions that can
Accountant, the Institute’s journal. also the communities they live in. lead to better decision-making.
Over the century we have continued to Today, CIMA continues to lead in the Our Association will also continue to
lead on cost management and evolve it accounting profession. As a founding body ask the right questions and continue to
into the concept of value creation. The of the Association of International invest in our ability to provide learning
journey has taken us through cycles of Certified Professional Accountants, we are and career support for our members that is
automation, the evolution of risk driving a global management accounting relevant and of high quality. That learning
management, tools such as balanced profession, creating value for businesses means they can continue to lead their own
scorecards, and frameworks such as and the proud individuals who make up organisations to even greater success.
activity-based costing. Our history is our profession.
contained in Leading the Transformation Going beyond our centenary, we Andrew Harding, FCMA, CGMA,
— 100 Years and Beyond, written by the anticipate change on a scale and at a speed is chief executive—Management
Association’s Martin Farrar, Ph.D., which I we have not experienced before. However, Accounting, at the Association of
commend to you (available at tinyurl.com/ with our updated CGMA Competency International Certified Professional
yymzsnrq). Framework, the 2019 CIMA Professional Accountants.
In October 1950 this journal Qualification Syllabus, and our growing

Map your route to success.
You are your best investment.
As accountants in practice, we know the importance of When
keeping our skills fresh. The more we improve individually, 21 June (Friday)
the better our business performance will be. and 22 June (Saturday),
9am–5pm
Run by members for members, the 2019 CIMA Members in Practice A black-tie gala dinner
Conference is tailored to provide maximum value to you — whether will be held on Friday night.
you’re in a large firm, a small and medium-sized enterprise, or
looking to start your own practice. Where
Woodland Grange,
Currently in its 34th year, the conference will give you the tools to Old Milverton Lane,
run your business to the best it can be. You’ll gain valuable CPD, Leamington Spa,
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What will you learn
Learn from expert presentations,
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Soft skills
CIMA support and initiatives
Upskill yourself — book

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© 2019 Association of International Certified Professional Accountants. All rights reserved. CIMA and The Chartered Institute of Management Accountants are trademarks of The Chartered Institute of
Management Accountants and are registered in the United Kingdom and other countries. The Globe Design is a trademark owned by the Association of International Certified Professional Accountants and
licensed to CIMA. 1902-2833
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INFO ROUNDUP
Australia finance job
vacancies,
What China is
doing in Africa
salaries
Researchers at the China-Africa
Research Initiative at Johns
Hopkins School of Advanced
on the
International Studies argue in
a policy brief that China’s
rising labour cost and slowing
growth are behind Chinese
manufacturers’ move to shift
rise
production lines to Africa.
They found four kinds of In the face of finance systems automation and manager and head of transformation are in high
Chinese companies in Africa: offshoring and outsourcing trends, demand is demand, with an average salary of
Companies seeking raw rising for quality finance and accounting AUD 160,000 ($114,000) and AUD 205,000
materials. Raw minerals workers who can provide value-added services ($146,000), respectively, according to the report.
usually are exported to to finance teams and direct finance Automation and offshoring are also
wealthier countries for transformation in Australia, according to a changing employers’ expectations. Companies
smelting and refining. recent report by recruitment firm Michael Page. in Australia now expect finance workers to
LEFT: PHOTO BY BILLNOLL/ISTOCK; RIGHT: PHOTO BY NORASIT KAEWSAI/ISTOCK
Companies with global Australia Salary Benchmark 2019 revealed perform more higher-level work than before,
supply chains. Tanzania and that the past year has seen a 21% increase in the such as providing decision-making analysis in
Ethiopia are home to Chinese number of finance and accounting jobs posted. addition to traditional financial reporting tasks.
garment and shoe Average salaries for these positions increased Trending skills in job descriptions reflect this.
manufacturers. These between 5% and 10% for workers who switch to Buzzwords include business partnering, big
labour-intensive industries a similar job. The top industries hiring for data, and analytics skills.
often offshore production finance and accounting roles include fast- “The biggest challenge for finance
lines. moving consumer goods and retail; healthcare professionals is the growing need for digital
Companies seeking and pharmaceutical; industrial and and technical skills, and the need for swift
strategic local markets. manufacturing; property and construction; and adaptation to the rapidly changing finance
For example, a Chinese the public sector. roles,” said Devika Mohotti, CPA (Australia),
agrochemical producer “Since the global financial crisis, there’s FCMA, CGMA, national sales operations
purchased a Ghanaian been a push for cost savings in Australia. We manager at Schneider Electric in Sydney.
company to expand its African saw a number of finance teams move their “While some roles disappear, new roles
sales channels. finance functions — usually the more continue to emerge and evolve. Unlearning is
Opportunistic small transactional teams — to different parts of also an essential skill to adapt to [the] changing
companies flocking Asia,” said Sung Ho Lee, director of finance, environment.”
together. These are small-scale legal, and sales at Michael Page Australia. — By Alexis See Tho (Alexis.SeeTho@
manufacturers clustering in an To support the transformation of finance aicpa-cima.com), an FM magazine associate
industrial zone. functions, roles such as finance project editor.

PepsiCo Indonesia CFO:
How I drive the
business
While well known for its soft drinks, PepsiCo is more than a
beverage company. It also owns the Frito-Lay and Quaker Oats
brands. In 2017, it was the third-largest food and beverage Can you give an example of delivering the forecasted
company in the world with global sales of $96.5 billion, behind numbers?
Nestlé and the Coca-Cola Company. We have monthly rolling forecasts. First, what we do is bottom
Seven years ago, Dhianendra Laksmana, ACMA, CGMA, said up — get the input from sales and marketing. In most cases, that
yes to an opportunity of a lifetime to head the finance function is not what we will finally submit because there may be
of PepsiCo Indonesia as its CFO. Laksmana shared top-down targets that need to be met, or the bottom-up targets
with FM magazine how he drives PepsiCo Indonesia’s are more than what we need to deliver.
businesses. Edited excerpts follow. Then you have to go to the details line by line — how we can
achieve this target? In the channels, I see where we can go,
You’ve been a finance manager and head of finance before where we can push more. They might say it cannot be done. So I
becoming a CFO. What is a key difference you see in your will look at the historical numbers and say, “You did this without
role as CFO? any promotional campaign. Now if you need to do the same,
I think the main difference is that a CFO is more than just a what do you need, how much [revenue] can we add if I give you
finance head — you are expected to drive the business. more money for promotions?”
Obviously, you ensure the delivery of financials, but the bigger
objective is to work with the CEO to drive the business, drive What is a challenge for your role?
performance. One goal that perfectly summed [up] the CFO’s role We are responsible for overall Indonesia delivery. The main
was [what] my boss told me when I first came and took on the challenge is how to drive the business with the different kinds of
role. He said, “Your objective is to try to replace me. Think like set-up. We have to work with the bottling partner, [but] we’re not
me and help me drive this business.” the one who owns the sales team, we’re not the one who owns
For instance, I’m the one in charge of profit and loss the manufacturing, and [bottlers] have their own goals. We have
forecasting. But forecasting will only be on paper. Any finance to align their goals with ours to get our objectives.
manager can do forecasting, but driving the business is making — By Alexis See Tho (Alexis.SeeTho@aicpa-cima.com),
sure that the forecasted commitment is being carried through. an FM magazine associate editor.
230,000 Just fix it 1.3

People who paid the €9
entrance fee to ascend to the
viewing platform of
‘If you have a problem now,
why don’t you fix it now?’ million
— Paul Polman, chair of the International The approximate
thyssenkrupp’s 246-metre Chamber of Commerce and former CEO of number of annual
tower in the first 12 months Unilever, said on the lack of equal pay individual patient
after it was built. for men and women. contacts at Nottingham
Full story, page 42 Full story, page 28 University Hospitals in
PHOTO BY REUTERS
the UK.
Full story, page 22

CIMA history It took many steps to reach
CIMA’s centenary. Here are
some of the key ones:
The Institute of Cost

“Costing
and Works Accountants
Terminology”, which
(ICWA) is founded, with
established the
37 members by the end
science of cost
of 1919. Entrepreneur
accounting until the
Lord Leverhulme The Institute
mid-1970s, is
becomes the Institute’s changes its
published in The Cost
first president in name to the
Accountant, the
December 1919. Institute of Cost
Institute’s journal.
and
Management
Accountants.
First
The first female
international
member,
office opens in
Miriam Neale, is
South Africa.
admitted to the
Institute.
1919 1920 1921 1936 1937 1942 1955 1969 1972 1975
The number of The Institute

active members appoints an
reaches 1,000. Overseas Affairs
Committee to
advise on its
The first development “as
examination is First Institute an international
held in exams sat by body”.
December. British servicemen The Institute is
being held in granted a Royal
Germany’s Charter.
prisoner-of-war
camps.

The Chartered
Global
Management
Accountant The 2019 CIMA
(CGMA) Professional
designation is Qualification
The Institute introduced in
changes its Examinations Syllabus and
partnership updated CGMA
name to the move to
with the Competency
Chartered computer and
American Framework are
Institute of on demand.
Institute of launched.
Management CPAs.
Accountants.
The number of
active members
The number of reaches
active members 100,000.
reaches 50,000.
1986 1995 1999 2003 2012 2014 2015 2017 2019
CIMA members
are given the The CGMA
right to use the Competency
title Framework is
Chartered published.
The Association
Management The Institute of International
Accountant. elects its first
The Global Certified
female Professional
Management
president, Accountants is
Accounting
Claire Ighodaro. formed on
Principles are
launched. 1 January with
IMAGE BY MILANARES/ISTOCK
more than
650,000
members in 177
countries.

Art
The Roman marble statue
of Antinous, dating to circa
130–138 AD, stands in a
rotunda of the Lady Lever
Art Gallery.
PHOTO BY PETE CARR/COURTESY OF
NATIONAL MUSEUMS LIVERPOOL
for all
CIMA’s first president, Lord Leverhulme,
built a gallery to share his personal art collection.
By Oliver Rowe
“
A
rt has always been to me Constable, and J.M.W. Turner. There is wasn’t until the 1980s that Unilever began to
a stimulating influence; also a major collection of Wedgwood sell off the houses and lifted the restriction
it has always taught me jasperware — a type of coloured pottery. that only employees could live there.
without upbraiding me; Leverhulme’s company, which The art gallery’s collection can be explored
elevated me without eventually became Unilever after at tinyurl.com/y8vb49x2 or on the Lady Lever
humbling me; and appealed to me merging with Dutch oils and fats Art Gallery app available on the Apple App
because of the fact that only the best company Margarine Unie in 1929, Store. In addition to Leverhulme’s passion for
and truest in art survives.” started producing Sunlight soap in art was a steadfast belief in the importance of
These were the words of Lord 1884. Three years later weekly output strong accountancy to business. In his
Leverhulme — entrepreneur, was 450 tonnes of the individually foreword to the first issue (June 1921) of The
philanthropist, and CIMA’s first wrapped bars of soap. That year, 1887, Cost Accountant, the official journal of the
president in 1919 — at the opening of he also bought a site — which he Institute of Cost and Works Accountants, as
the Lady Lever Art Gallery in 1922 in Port named Port Sunlight — for a new CIMA was known then, he wrote: “What the
Sunlight Village in Merseyside in the factory and a high-standard, purpose- compass is to the mariner under modern
north-west of the UK. built village with leisure facilities for its conditions of navigation as compared with
Now part of National Museums workers. steering by stars or by sight under old-world
Liverpool, the neoclassical-style gallery Today, Port Sunlight Village’s 900 time conditions so is an efficient cost and
was dedicated to Leverhulme’s wife, buildings, including the Lady Lever Art works accountancy system to modern
Elizabeth, who died in 1913. The gallery Gallery, are Grade II-listed — in a conditions of commerce.”
displays large parts of Leverhulme’s protected category on the UK
largely British-focused 20,000-piece government’s National Heritage List for
collection — paintings, sculpture, England, which means there is control Oliver Rowe is an FM magazine senior
furniture, ceramics, and textiles. over the changes that can be made to editor. To comment on this article or to
Particularly strong is its collection of the buildings’ interiors and exteriors. suggest an idea for another article,
19th-century Pre-Raphaelite paintings Leverhulme’s provision of better contact him at Oliver.Rowe@
as well as pictures by Thomas housing for his employees is widely aicpa-cima.com.
Gainsborough, George Stubbs, John considered a long-term success — it
Standing the test of t
The skills of CIMA’s members have helped the Institute survive war,
thrive in peacetime, and prepare for the future.
By Ken Tysiac

f time after 100 years
W
hen any organisation
reaches a milestone
anniversary, it’s easy to
look back through
events in its history and
see what’s truly important to its people.
This is certainly the case with The
Chartered Institute of Management
Accountants, whose history is chronicled
and celebrated in rich detail in Martin
Farrar’s book Leading the Transformation:
100 Years and Beyond.
The publication by Farrar, Ph.D., an
associate technical director–Management
Accounting at the Association of
International Certified Professional
Accountants, is available as a free PDF
download at tinyurl.com/yymzsnrq. The
text shows that from 1919 to the present
day, CIMA members have displayed:
yyy Commitment to principles that
promote success in business.
PHOTOS BY FIONA HANSON/AP IMAGES
yyy Zeal for rigorous professional

standards, knowledge, and
professional development.
yyy Dedication to precision, truth, and
impartiality.
yyy A focus on building a successful
The Institute’s coat of arms, shown here annotated on a wall international Institute.
in the CIMA office in London, has evolved over the years to The book contains countless anecdotes
incorporate symbols that represent the work of its members. detailing the many accomplishments of
CIMA and its members, from the

order to secure for them a definite cotton-spinning factories.
Podcast: Small professional status by means of a yyy Sir Herbert Austin, founder of
system of examinations and the the Austin Motor Company, who
beginnings, big impact issue of certificates of competency. also had been a manager and then
yyy To promote and protect the mutual became chairman of the Wolseley
An idea hatched by a small group of interests of members and as far Sheep Shearing Machine Company.
accountants led to the formation of as possible assist them to obtain yyy Walter Howard Hazell, chairman of
an organisation that has become adequate remuneration for their the Federation of Master Printers.
highly influential and known services.
throughout the world for its profound yyy To assist necessitous members and Contents of the early syllabus
effect on management accounting. In to raise, manage, and apply any fund An examination of the early syllabus of
this podcast, Martin Farrar, Ph.D., for this purpose. the Institute shows that the required
author of Leading the Transformation: yyy To form a library for the use of learning topics were diverse. The first
100 Years and Beyond, talks about members. examinations based on the Institute
some of his favourite moments in yyy To afford the members the benefits syllabus took place in December 1920, and
CIMA’s history. To listen to the of a club. an early syllabus from October 1922 shows
podcast, “CIMA’s History — One hundred years later, these that at the preliminary level, exam
The Route to 100 Years”, visit principles are alive and functioning in candidates were assessed on:
fm-magazine.com/cimahistory. CIMA. The organisation continues to yyy Mathematical concepts including
maintain an examination process to certify plane geometry, simultaneous
competency, and this year it issued an algebra equations, ratios, proportion,
updated version of the CGMA Competency and percentages.
organisation’s modest beginnings 100 Framework. The framework is designed to yyy The ability to translate an easy
years ago through its emergence as a help management accountants, finance passage from a foreign language
global force in management accounting. professionals, and their employers into English, although this skill was
Here are summaries of just a few understand the knowledge requirements optional.
highlights. and assess the skills needed for the roles yyy An English essay.
they occupy today and the positions they yyy Bookkeeping related to the
Objects with staying power hope to fill in the future. presentation of a balance sheet.
The Institute of Cost and Works yyy Elementary mechanics, covering
Accountants, as CIMA originally was The early industrialists topics such as work, friction, levers,
known, was established in 1919. In The story of industrialist Lord Leverhulme, gearing, and various forms of
February of that year, seven individuals who was appointed the Institute’s first motion.
who had discussed the possibility of president on 2 December 1919, is well The intermediate and final levels of the
forming an association agreed to the known. Leverhulme was co-founder of examination process required deeper
principal objectives of the Institute. Lever Brothers, which originally knowledge of subjects such as economics,
The objectives were part of a manufactured a product known as Sunlight costing, workshop knowledge, and
Memorandum of Association that Soap and later became part of Unilever. advanced bookkeeping and legal issues.
explained the seven signatories’ desire to However, he was hardly the only
join forces. The objects were: prominent early industrialist to hold an Female pioneers
yyy To provide an organisation for cost important role in the fledgling Miriam Sarah Neale was admitted as the
accountants, works accountants, organisation for accountants. Well-known Institute’s first female fellow in March
estimating and cost clerks, and vice-presidents of the Institute at the time 1921. She was recorded as member
others engaged in occupations included: number 272 in the first book of members
requiring a mathematical and yyy Sir Robert Hadfield, a metallurgist and had a long and successful career in
technical knowledge of industry in from Sheffield who discovered and business and accounting.
all its branches, embracing in such invented the manganese-steel and She spent the early part of her working
knowledge as the cost of production, low-hysteresis processes. life with an engineering company and
manufacture, or sale of all articles yyy Sir Charles Wright Macara, who began work as a cost accountant at the
produced, manufactured, or sold, in was famed for his Lancashire pharmaceutical manufacturer Allen &

Hanburys Limited in 1917. She was
promoted to chief cost accountant in 1923,
and 25 years later she began serving as a
director of Penplas Industries Limited,
which made low-cost fountain pens.
Annie Alice King became the
Institute’s second female fellow in June
1924. She was head cost accountant at St.
Clement’s Press Limited, which printed
the Financial Times newspaper. King
spent most of her career in the paper and
printing trades.
The first female Institute Council
Member was elected in September 1980.
Denise Jenkin represented Area number
10, The Republic of South Africa. She had
served as head of the accounting
operation at an electrical/mechanical
engineering company and as group
accountant/company secretary for a large
international citrus company before
starting her own computer bureau in 1974.
In 2003, Claire Ighodaro’s election
represented a milestone on two fronts as
she became the Institute’s first female
president and its first black president. At
that time, she was finance director,
broadband, at BT.
“It’s nice to look back and see that
things have changed and that there are
opportunities for everyone,” she said in
2003. “A lot of it is down to how you
approach matters. Things are difficult
because you think they will be. If you
want to do it, just get on with it.”
Chartering a royal course

The Institute first raised the issue of
pursuing a Royal Charter in 1919, but the
cause initially was abandoned because of
its cost. Four years later, the Institute
announced at its annual general meeting
that it had applied for a Royal Charter. The Institute had pursued a Royal Charter of Incorporation
Ronald Smith, Barrister-at-law, starting in 1923. The dream finally came to fruition when the
described the importance of a Royal Queen in Council approved the grant on 13 February 1975.
Charter in an article in The Cost
Accountant: “The grant of a Royal Charter
at the present day constitutes a
recognition by the highest authority that
the public welfare is concerned in the

activities and the prosperity of the body to y The sun’s light shining on bees Meanwhile, 99 of the Institute’s 1,366
whom the charter is granted.” (representing industry), gold coins members and approximately 881 of the
Partly because of opposition from (commerce), and a wheatsheaf Institute’s registered students were
several societies and the Institute of (agriculture). attached with HM Armed Forces at the
Chartered Accountants in England and In 1953, a pair of lions was added to the beginning of 1941. Incredibly, thanks to
Wales, the first application for a Royal coat of arms. One lion carries crossed tally arrangements by the International Red
Charter was not granted. But more than 50 sticks, which represent the ancient Cross and the University of London, the
years later, the dream of receiving a Royal method of accounting. The other carries Institute was able to hold examinations
Charter became a reality. an hourglass, which symbolises the for prisoners of war held in Germany.
The Queen in Council approved the measurement of time. Wheels at the foot
grant of Royal Charter of Incorporation to of each lion are representative of industry. CIMA at 100
the Institute on 13 February 1975. On its 100th anniversary, CIMA is a vibrant
“Every ICMA member and every student, War and the cost accountant international organisation that remains a
here and in many countries abroad, will Cost accountants were in high demand credit to the objectives laid out by its
take pride in this, the most momentous during World War II because they were founders. CIMA’s headquarters are located
point in the Institute’s history,” Institute viewed as the linchpin between in the heart of London’s financial centre,
President Denys Edmonds said at the time. manufacturing firms and government and the 2019 edition of its CGMA
“It ought to be a matter of pride, too, to the departments. At a time when every Competency Framework has been
whole profession.” resource was immensely precious, costing expanded in response to the emergence of
was seen as extremely valuable because of new digital skills that management
An international accounting body its role in maximising production accountants and finance professionals
The first reference to official Institute efficiency. will need to know to continue succeeding
representation outside of Great Britain The report from the annual general in their current positions as well as the
was an announcement in the Institute’s meeting in 1942 noted that: “The Institute roles they will fill in the future.
journal in 1922 that Charles F. Treeby, has done and will continue to do In 1925, upon his appointment as the
ACWA, was appointed honorary everything possible to co-operate with all second president of the ICWA, Walter
representative of the Institute for India. concerned in this matter. The Institute Howard Hazell said: “If the enthusiasm of
The international character of the has co-operated with the Ministry of the members of the Institute meets with
Institute grew steadily, and by 1971 the Labour and National Service, and other its just reward, and their ideals are
organisation had members in 87 countries government departments, in all matters attained, it will become a great and
around the world, and students could take affecting the provision of suitably important body in the commercial life of
Institute exams at 92 centres across the experienced members.” the country, and industry will have
globe. The war hit close to home on 9 benefited enormously by the activities of
Now, of course, CIMA has members September 1940, when the Institute the members and the same principles
and offices all over the world. headquarters located at Number 23, they have advocated.”
Queen Square, London, WC1, was One hundred years after its founding,
Probity, accuracy, justice damaged in a German air raid. High- CIMA has met and even surpassed those
The new armorial bearings and badge of explosive bombs directly hit two lofty ideals as an important body in the
office of the Institute were granted in buildings adjacent to the Institute’s commercial life of the world as well as
October 1932 under letters patent by the headquarters, causing damage to the the UK. The vision of the Institute’s early
Royal College of Arms. The motto, using Institute’s building as well. leaders has been realised, and today’s
the Latin words for “Probity, Accuracy, The incident caused Council to agree to members continue to advance the
Justice”, was selected to evoke the spirit of move Institute functional activities back to organisation’s mission into the future
service displayed by the Institute and its Links View, Sandy Lane, Kingswood, — in an uncertain time when a
members. Surrey. In 1944, however, the Institute’s management accountant’s skills are as
Symbols on the coat of arms that temporary headquarters 20 miles outside valuable as ever. Q
visually represent the work of the of London also received superficial damage
Institute and its members include: from German rockets that were aimed at
y Callipers, which symbolise precise London but went astray. Ken Tysiac is FM magazine’s editorial
measurement. director. To comment on this article or
y A book, denoting reading and to suggest an idea for another article,
interpretation. contact him at Kenneth.Tysiac@
y Scales, representing truth and aicpa-cima.com.
impartiality.

1902-7536 Benevolent Fund FP advert final-3.pdf 1 2/22/2019 10:19:54 AM
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economies. They also transform individual lives through donating to the CIMA Benevolent
Fund. During our 100th year, let's continue to help one other while driving the future of the
profession.
To mark CIMA’s 100th year and ensure our future, we are sharing a
limited-edition CIMA Benevolent Fund card at Centenary events. We hope
this card reminds you, our valued member, that you are supported — and
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© 2019 Association of International Certified Professional Accountants. All rights reserved. 1902-7536
Bringing value
to healthcare
using cost accounting
The UK’s National Health Service uses data to seek

better patient outcomes while maximising efficiency.
By Rebecca McCaffry, FCMA, CGMA
O
ne hundred years after the founding of CIMA as the
Institute of Cost and Works Accountants, the
principles and practices used by cost accounting
IMAGES BY KATIE EDWARDS/IKON IMAGES
professionals at the UK’s National Health Service are

very similar to those used in 1919 (see the sidebar
“Cost Accounting Took Slow Route to Appreciation”). Although the
cost accountant of 1919 might be confused by the technology used
today, the tactics of the past have a prominent role at Nottingham
University Hospitals (NUH), which provides services to more than
6 million people across the city and the region beyond and is
recognised as a leader in healthcare cost transformation. Leading
the charge are operational director of finance Duncan Orme and
head of costing Scott Hodgson, ACMA, CGMA, both of whom are
involved in healthcare costing on a national level.

A 2014 CIMA report, Building Clinical outnumber cost accountants for the first way to achieve this is to highlight the
Engagement With Costing, found that time, and a growing number of clinicians importance of the cost accountant’s
costing was generally viewed by are speaking about costing at national skillset to the wider healthcare system.
clinicians as a support function, with conferences, further raising awareness “One key motivation in our roles,
engagement between costing and clinical amongst their peers. both as practitioners and as
teams limited to business case influencers on the national scene, is to
development. In recent years, however, Changing the image of cost promote interest in how you can,
clinicians have begun to realise the accounting effectively, become a member of a
importance of cost information for While the raised profile of costing is clinical team, working with the
decision-making, and the profile of welcome, Orme sees a danger that the clinicians in a healthcare environment
healthcare costing has seen significant demand for experienced cost to improve the value and outcomes of
promotion. Attendance at the Healthcare accountants is beginning to outstrip healthcare,” he said.
Financial Management Association’s supply. He believes cost accounting’s Management accounting techniques
2018 Clinical Forum saw doctors image needs a makeover and that the that were once used in the factory

Queen’s Medical Centre is part of Nottingham University Hospitals,
which provides services to more than 6 million people.
setting are now being used to develop payment approach to cost reimbursement the same as rationing. It’s making sure
patient insights and deliver better for healthcare providers based on that we make healthcare sustainable
healthcare outcomes. organisation-level average cost data. This through that understanding.”
means that for each patient contact, the
Datasets team is able to create an individual Bedside data capture
Hodgson explained the impact that the income and expenditure account showing NUH uses “Nerve Centre”, a bedside
growing volumes of data and information details of day-to-day care, with an average capture system using iPads or iPhones to
have had on his role. of 150 data items per subject. On any record interactions with patients. Each
“The amount of data and information given day, staff can see how money was day is tagged as red or green, recording
we have and the meetings we attend about spent on patient care. whether an activity that leads towards
the information has really evolved,” he Hodgson explained the process. “We discharge has been undertaken. This
said. “When we started PLICS [patient-level work hard on our visual presentation of enables bottlenecks to be identified and
PHOTO COURTESY OF NOTTINGHAM UNIVERSITY HOSPITALS NHS TRUST
information and costing system] in 2010, this for the clinicians, using red or green addressed. “It’s really not the costing that
we had two or three information feeds. bed days to distinguish those days when does this,” Hodgson said, “but the input
We now have over 70 feeds pulled into the no diagnostic or therapeutic activity has information that we pull into the costing
system, and so far we have delivered £20 occurred. Clinical teams can see what’s system that helps the users. We cost by
million of savings.” happening at an individual patient level the day so we can see the cost of a red day,
NUH sees approximately 1.3 million and the impact that delays in diagnosis or the cost of a green day. We can ask, ‘Why
individual patient contacts per year, the discharge have when the breakeven point did that red day happen?’ ”
equivalent of 1.3 million product lines. has passed and the patient is making a Red days require reason codes for
The NHS system uses a national tariff loss for us,” he said. delays; for example, “waiting for radiology
“We aggregate this up and take a look at test”, “waiting for pathology results”, or
pathways of care, to see how we can “waiting for a community care bed”. These
redesign services to promote better care codes can be played back to the clinicians
pathways. And that’s where the who are using the system. In effect, the
transformation comes. We are no longer system is a supply chain, and the
cost accountants; we are transformation information collected helps the costing
and cost accountants. and clinical teams to look not just at one
“Understanding cost and aspect but how it impacts or is impacted
understanding what goes into cost is not by the services around it.

Data for diabetes
One of the ways in which hospital data
are being used proactively across the
‘The whole point is to give the
healthcare system is illustrated by the
work Hodgson’s costing team has
clinicians the information to
undertaken with local general
practitioners. Data relating to a cohort of
make decisions. … We are here to
diabetes patients were shared and
analysed to help medical professionals
guide them through the vast
serving as consultants understand
whether patients presenting at major
volumes of data.’
hospitals are self-managing their
Scott Hodgson, ACMA, CGMA, head of costing for Nottingham University Hospitals
diabetes effectively or will require
stabilisation before their underlying
condition can be treated. This work
extends beyond traditional costing extension, better management of Improving data quality is a key
boundaries, Hodgson said. Linking the underlying health through therapeutic element of the costing role. Hodgson
two systems together can ultimately save activities. But this growing focus on described the process for engaging
money for the healthcare system. “If we understanding patients at a granular level clinical teams with the process. “We
know that patients are on the diabetes brings its own concerns for the finance will publish data early, knowing that
register but are not managing their professional, Orme said. “It’s important to it’s not 100% correct,” he said. “But as
condition, what communication work work very closely with information and soon as we put it out there and keep
can we do to get them to a clinic?” he governance leads to ensure that we publishing it, people will start looking
said. “Do they know about clinics and comply with GDPR [the EU’s data at it and start improving the quality of
support? We can target them and ensure protection laws], that everything we do is data.
that they get prevention support, because anonymised and is only available to the “In our early publishing of the red and
that is far cheaper than patching them up clinician responsible for that individual’s green reason codes 80% of them were
when they get into hospital. A lot more care,” he said. blank. But the fact that we were spending
information is gained through £20,000 a month on red days without
combining the datasets — the sum of the knowing why soon raised awareness
two parts is far greater than the whole.” among clinicians. Realising that the
Recent developments in healthcare codes would tell them where the money
solutions include government investment was going, clinicians now fill in the
in “social prescribing”, which addresses codes and we have 90% completion.”
issues such as loneliness, and by
Skills and competences
Technology has freed up senior staff time,
allowing greater engagement with clinical
colleagues. Hodgson explained that while
The
5
junior staff “turn the wheels”, getting data
through the system and out, more
experienced colleagues are using those
stages of data grief same data for transformation. The
office-based bean-counter image is
obsolete: Today’s cost accountant needs to
Nottingham University Hospitals’ costing team’s policy is to publish and debate have communication, presentation, and
results with clinicians, being mindful of the “Five Stages of Data Grief”. It has influencing skills, and be able to think
become adept at helping colleagues get across the stages very quickly and have outside the box. “Costing used to be a first
found that peer-to-peer discussions can sometimes be key to removing job for people wanting to go on into
barriers. business partnering,” Hodgson said. “But
today a lot of our staff come from
1 Denial: “The data is wrong!” financial management and management
accounting roles, because they’re used to
2 Anger: “It does not apply to me.” being part of a division in the hospital.”
3 Bargaining: “I will get the correct data.” Technical skills are still crucial, Orme
said. Cost accountants must maintain a
4 Depression: “There is nothing I can do about it.” separate cost ledger that cannot get out of
5 Resolution: Acceptance and action. balance with the general ledger, a practice
that their last-century counterparts would
certainly recognise. The ability to manage

Cost accounting took slow route to appreciation
A wartime yearning for efficiency and value evolved finance practices.
lthough it took centuries for business leaders to fully
A appreciate the utility of cost accounting, the practice
— once embraced — established a value that remains
‘It is obvious from its
essential to organisations throughout the world today.
While the roots of modern cost accounting can be traced
record that cost
back to the 18th-century Industrial Revolution, progress
towards professionalising the practice was slow. Cost
accountancy is a dynamic,
Accounting Principles and Practice, a costing textbook
published in 1920, a year after CIMA’s first incarnation as the
and not a static, force. It is
Institute of Cost and Works Accountants, highlights the
frustration of costing pioneers at the slow recognition of
a profession filled with
their value:
possibilities and with
Hardly any other feature of industrial procedure has been
so necessary, yet so slow in developing, as cost great interests …’
accounting — so rich in possibilities of usefulness for
management of business, yet so widely considered for The Cost Accountant, 1946
many years as a doubtfully necessary evil.
By 1937, however, the Institute had published its first

“Costing Terminology”, and cost accounting was well on its
way to being established as a science. World War II saw
increased demand for costing professionals in government and economic conditions of World War I, costing practices
and industry to help ensure efficiency and value for money. evolved from the factory floor rather than the finance office,
By the 1950s, costing played a key role in the ICWA with a focus on efficiency. Dunkerley, who was the ICWA’s
qualification, in which seven of the 16 papers focused president in 1933–1934, wrote:
exclusively on costing (wages, materials, overheads, and
methods). By 1975, the Institute of Cost and Management It was necessary for [the cost accountant] to have
Accountants, as CIMA was then known, had been awarded a considerable knowledge of the factory and its
Royal Charter. The focus of the qualification began to shift products, and to keep abreast of all the developments
towards strategic accounting, and in 1986 the ICMA became in management technique which were becoming
the Chartered Institute of Management Accountants. more widely used: time and motion study, use of tools
An article by Roland Dunkerley, FCWA, in The Cost and jigs, causes of stoppages of machinery, layout of
Accountant, the official journal of the Institute of Cost and stores, questions of transport, and — by no means the
Works Accountants and a precursor to Financial Management least important — the devising of methods to give the
magazine, dated 1946, traces the early history of the costing maximum of information with the minimum of
profession. Driven by the changed industrial circumstances clerical work.
huge volumes of data and pick out core ‘Does this look right to you?’ Invariably
messages is also essential to success (see they’ll say something doesn’t look right, Rebecca McCaffry, FCMA, CGMA,
the sidebar “The 5 Stages of Data Grief”). and we work with them to improve it.” is associate technical
Hodgson agrees. “The whole point is to The pace of transformation in director–Management Accounting at
give the clinicians the information to healthcare is accelerating, Orme said, with the Association of International
make decisions, not for us to do it,” he clinicians ever more keen to understand Certified Professional Accountants. To
said. “We are here to guide them through costs, their practice, and their patients. As comment on this article or to suggest
the vast volumes of data.” a result, cost accountants are once more at an idea for another article, contact
Resilience is also a key skill for the the forefront of health delivery. “If you Ken Tysiac, FM magazine’s editorial
costing practitioner. “We can’t tell our have that enthusiasm, curiosity, and director, at Kenneth.Tysiac@
colleagues they are spending too much,” desire to understand, and wish to aicpa-cima.com.
Hodgson said, “because we don’t know influence and help your clinical
enough about clinical care. But we can colleagues, then this is a cracking job for
present the information we have, and ask, you,” Orme said. Q

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A challenge to
the profession
Former Unilever CEO Paul Polman
took on short-termism, climate
change, and income inequality
at the CIMA President’s London
Centenary Dinner.
By Oliver Rowe
O
n 8 March 2019, 100 years to the day after CIMA was It was highly appropriate that he spoke at the dinner. CIMA’s
formed, Paul Polman, HonFCMA, delivered a speech first president in 1919 was Lord Leverhulme, who founded Lever
PHOTO BY ROY BARON/AVALON
to the almost 200 guests at the CIMA President’s Brothers — the company that went on to become Unilever in a
Dinner in Merchant Taylors’ Hall in London. merger with Dutch company Margarine Unie in 1929.
Polman is chair of the International Chamber of Polman’s speech started by acknowledging CIMA’s route from
Commerce, chair of The B Team, and vice-chair of the UN Global its beginnings in 1919 and ended with a standing ovation. In
Compact, a voluntary strategic initiative to encourage businesses between, he recognised International Women’s Day (also 8 March)
to achieve the UN’s Sustainable Development Goals. For ten years and covered issues pertinent to a better future for business and
until December last year he led Unilever with a personal mission humanity — and challenged accountants to play a greater part in
to “galvanise our company to be an effective force for good”. achieving that. Here are some key (edited) quotes from the speech.

On GDP
“How we define GDP, industrial output — pretty narrow
measure. Should have never been used as a measure of the
wellbeing of a country. We produce more weapons or wage wars,
GDP goes up. We produce cleaner air or better education, we
don’t see anything in GDP. A little bit bizarre to me.”
On wealth inequality
“The financial crisis showed one thing to people in the street, if
you like it or not. It showed that banks were too big to fail and
people were too small to matter. It’s as simple as that.
“Many people have not seen any progress in the last 30 to 40
years. Last year alone the bottom 3.8 billion people in the world,
the poorest people, saw their combined net worth go down by
11% … whilst the billionaires saw their net worth go up by 900
Paul Polman, HonFCMA, billion [dollars], 2.5 billion a day.”
speaks at the Centenary Dinner.
On equal pay for women and men
“[Some people] say, ‘Yeah, we know we have a difference, but
between now and 2020, we’ll fix it. Or 2025, so we’re on it, we’re
on it.’ Well, if you have a problem now, why don’t you fix it now?”
On climate change
“We can actually [limit the temperature rise to] one and a half
degrees in the next 30 or 40 years if we decide to do so. If we
don’t decide to do so, we’re about to commit the biggest
intergenerational crime in the history of humankind. Let me be
clear on that.”
On development goals
“It costs far less than the 10–12% of GDP that we are now
spending [wastefully] on conflict, defence, and wars than in
implementing the total Sustainable Development Goals with the
simple objective to irreversibly eradicate poverty and do that in a
more sustainable and equitable way, to leave no one behind, to
finish the job that Kofi Annan [former UN secretary-general]
started in the first 15 years of his Millennium Development
Goals.
“On each of these famous 17 [Sustainable Development]
Goals, the cost of not acting is now higher than the cost of acting.
And we call ourselves the most intelligent species.”
Challenge to accountants
“What world are we steering ourselves to with our systems that
we’ve produced, including our accounting systems? … Are we
creating wealth for a few, a few islands of prosperity in oceans of
poverty? …
“Now, we know how to optimise financial factors, but we
On short-termism won’t solve the issues of climate. We won’t solve the future of
“We’re running [companies] into the ground with short-termism humanity if we don’t broaden that and also … optimise our
— this myopic focus on shareholders. There’s no question about it, return on not only financial capital, but also social and
especially when you think that 50% or more of the investments environmental capital. What’s wrong with that?” Q
companies make create value for a company only three to five
years out or more. It’s bizarre that we have let this happen.
“Christine Lagarde [IMF managing director and chair] Oliver Rowe is an FM magazine senior editor. To comment on
summed it up very well when she said … the financial sector this article or to suggest an idea for another article, contact
[prioritises] … profits over long-range prudence and short term him at Oliver.Rowe@aicpa-cima.com.
over sustainability. That’s what is happening.”

quick technology tips
A
ccountants are always looking for
Technologies such as Excel help ways to do more and better work
accountants work smarter and faster, but in less time. Technology tools are
great aids in that quest, but they
even greater efficiency is available to those
IMAGES BY VIORIKA/ISTOCK
can do even more if you know

who learn to use tech tools more effectively. the right techniques. To celebrate CIMA’s
centenary, FM magazine is pleased to present
100 tips and tricks for better leveraging
By Kelly L. Williams, CPA, Ph.D., and Byron Patrick, CPA/CITP, CGMA technologies such as Microsoft Excel (some
features are available only in the latest
Microsoft Office and Windows versions).

top of the columns. On the Data tab, Sort & Filter group,
select Filter. Click the drop-down arrow on the right side of
the first column of your data, uncheck (Select All), and
check (Blanks). If any numbers are still visible, go to the
second column of your data and repeat the step above.
Continue to repeat the steps for each column until no data
appear. Select the filtered rows and go to the Home tab, Cells
group, and select Delete. On the Data tab, Sort & Filter
group, select Clear.
3. Name a cell or range of cells. A cell or a range of cells can be
given a name in Excel. You can reference the name in your
formulas and functions rather than trying to remember or
find a specific cell or range of cells. To do this, highlight the
cell or range of cells that should be named, then type the
name in the Name Box (the box to the left of the formula
bar). Click Enter.
4. Instantly select an entire table or data range. To instantly
select an entire table or data range, click anywhere within the
table or data range and press Ctrl+A.
5. AutoSum shortcut. To quickly sum a list of values, select
the cell at the bottom of a vertical list of values or to the right
of a horizontal list of values and press Alt+=, then Enter.
6. Quickly foot and crossfoot. AutoSum can be used to insert
sum formulas that total all columns and rows at the same
time. Highlight a table of data, plus one additional row below
and one additional column to the right of the data. Click the
AutoSum button or press Alt+=.
7. Transpose data. Sometimes you need data that are
organised horizontally to be vertical, and vice versa. To do
this, copy the data and place your cursor in the first cell you
want the data to be pasted. On the Home tab of the ribbon,
select Paste from the Clipboard group, then select Paste
Special. Check Transpose, then click OK.
8. Sort data based on colour. Sorting data in Excel is not limited
to sorting based on cell values. Data can also be sorted based
on cell colour and font colour. To do this, select the data to be
sorted. On the Home ribbon tab, select Sort & Filter from the
Editing group, then select Custom Sort. Ensure that My data
has headers is checked if headers were included in your
selection. In the Sort by drop-down list, choose the column
on which you want to sort. In the Sort On drop-down list,
choose Cell Color or Font Color. In the Order drop-down list,
choose the colour you want shown first. Next, click Add Level
located at the top left of the Sort window. Complete the same
Excel quick tips steps as above for the second colour that should be shown,
1. Hide zero values. Including many zero values in your data and so on until you have instructed Excel on the order in
can be distracting. To easily hide zero values, go to the File which to sort all cell colours or font colours.
tab, Options, Advanced, and uncheck Show a zero in cells 9. Quickly resize a column to fit contents. You may have data
that have zero value. in a cell that is much shorter than, or too long to fit in, the
2. Delete blank rows. You may have a spreadsheet with blank default width of a column. Instead of trying to manually
rows that are spread throughout the worksheet. Instead of adjust the width of the column to get the right size, double-
deleting each blank row individually, you can delete all blank click the boundary between two column headers (eg, the line
rows at once. For this to work, your header rows must be on between the A and the B for the first and second columns),
the first row of the spreadsheet. Select the entire columns and the column size for the column to the left will be
that contain your data by clicking on the letters at the very perfectly sized to accommodate the cell with the longest text.

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10. Extract characters from the left of a text string. You may spreadsheet. You can sum these values, but you cannot use
need to extract a portion of data to the left of a text string. For the AutoSum shortcut or the AutoSum tool. Choose the
example, you may need to extract the area code of a phone function SUM. For Number1, select a cell or range of cells
number. Use the function LEFT(Text, Num_chars). For that will be included as part of the total. For Number2, select
Text, reference the cell that contains the text string. For another cell or range of cells that will be included as part of
Num_chars, enter the number of characters to the far left of the total. Continue for Number3, if needed, and so on until
the text string to extract. Click OK. you capture all numbers that should make up the sum. Click
11. Extract characters from the right of a text string. You may OK. Example: SUM(A2,C9:C12,E5).
need to extract a portion of data to the right of a text string. 18. Instantly copy a formula to multiple rows. Many of the
For example, you may need to extract the last four digits of a formulas we use are intended to work for multiple rows of
National Insurance number. Use the function RIGHT(Text, data. In that case, when a formula is added to your first row
Num_chars). For Text, reference the cell that contains the of data, that formula needs to be copied down to all rows of
text string. For Num_chars, enter the number of characters data. Instead of grabbing the Fill Handle (the solid green box
from the far right of the text string to extract. Click OK. that appears in the bottom right corner of a cell when it is
12. Extract characters in the middle of a text string. You may selected) and dragging all the way down, it is easier and
need to extract a portion of data in the middle of a text string. quicker to simply double-click the Fill Handle. This will
For example, you may need to extract digits in the middle of work if the cells in the column to the left of the copied
a product number. Choose the function MID(Text, [Start_ formulas are not empty.
num], [Num_chars]). For Text, reference the cell that 19. Freeze panes. When you have a large spreadsheet with titles
contains the text string. For Start_num, enter the position of for the columns and rows, it becomes difficult to know
the first character to extract (eg, if you wanted to start which cell you are viewing if you have scrolled where you
extracting at the fourth character in a text string, the can no longer see the column and/or row titles. To keep the
Start_num would be 4). For Num_chars, enter the number column and row titles on the screen, select the cell below the
of characters from the Start_num of the text string to first column title and to the right of the first row title. On the
extract. Click OK. View tab, select Freeze Panes from the Window group, then
13. Merge multiple cells into one text string. You may need to select Freeze Panes.
combine data from various cells into one text string in one 20. Visually represent your data using Sparklines. Sparklines
cell. You can also include spaces, symbols, etc, in the new are small charts that fit in a single cell and are used to
text string you are creating. Choose the function visually represent your data (see cells G3:G5 in the screenshot
CONCATENATE (Text1, Text 2, etc). For Text1, enter the cell “Sparklines Examples”). Select the cell or cells where you
reference, text, or any other characters for the beginning of would like the Sparkline(s). On the Insert tab, within the
the text string. For Text2, enter the cell reference, text, or Sparklines group, choose Line, Column, or Win/Loss.
other characters for the next part of the text string, and so on. Select the data to be included in the Sparkline(s).
For example, if you had a first name in cell A1 and a last name 21. Instantly convert a range of data into a table. To convert a
in cell B1, and you wanted to combine the first and last name range of data into a table, click anywhere within the range of
into one cell with a space separating the two, you would data and press Ctrl+T.
reference cell A1 for Text1, enter a space (in quotes) for Text2, 22. Convert a table into a range of data. To convert a table into
and reference cell B1 for Text3: CONCATENATE (A1," ",B1). a range of data, click anywhere within the table and right-
14. Hide/unhide worksheets. To hide a worksheet, right-click click. Select Table, then Convert to Range.
on the tab of the worksheet (located at the bottom of the 23. Instantly chart a range of data. To chart a range of data,
Excel workbook) and select Hide. To unhide a worksheet, click anywhere within the range of data and press Alt+F1.
right-click on any tab of the worksheet, select Unhide, then 24. Switch between formulas and values. You can easily view
choose which sheet to unhide. your formulas by pressing Ctrl+` (grave accent). This will
15. Hide/unhide columns/rows. To hide columns or rows in a allow you to view all formulas. Clicking it again will switch
worksheet, select the columns or rows to be hidden, you back to viewing values.
right-click within those rows or columns, and select Hide. To
unhide columns or rows in a worksheet, select the columns
or rows surrounding the hidden columns or rows, right-click Sparklines examples (tip 20)
within those columns or rows, and select Unhide.
16. Copy visible cells only. You may have a spreadsheet with
hidden rows and/or columns but want to copy only the cells
that are visible. To do this, click F5, Special, Visible cells
only, OK. Then press Ctrl+C to copy.
17. Sum data from various places on a spreadsheet. You may
need to sum values that are not all listed together in a

25. Change the case of text to all uppercase. To change text to
all uppercase, click the cell where you would like the You can repeat the last
uppercase text to appear. Choose the function UPPER(Text).
For Text, select the cell that contains the text to be converted. action you did in Excel
Then copy the formula down for all text.
26. Change the case of text to all lowercase. To change text to by pressing Ctrl+Y.
all lowercase, click the cell where you would like the
lowercase text to appear. Choose the function LOWER(Text).
For Text, select the cell that contains the text to be converted. 34. Display Excel with no gridlines. You can remove the
Then copy the formula down for all text. gridlines from your Excel worksheet by going to the View
27. Change the case of text to capitalise the first letter of tab, Show group, and unchecking Gridlines.
each word and all other letters to lowercase. To change 35. Add filters to your data. To add filters to your data, select
the text to capitalise the first letter of each word and make all the data to be filtered. On the Home tab, Editing group,
other letters lowercase, click the cell where you would like select Sort & Filter, then Filter.
the converted text to appear. Choose the function PROPER. 36. Quickly switch between different Excel files. To quickly
For Text, select the cell that contains the text to be converted. switch between different Excel files, press Ctrl+Tab.
Then copy the formula down for all text. 37. Customise Quick Access Toolbar. The Quick Access Toolbar
28. Disable AutoCorrect one time for one situation. is at the very top left side of Excel (unless you have moved it).
AutoCorrect can be very useful for fixing unintentional By default, the Quick Access Toolbar includes an icon to
grammatical errors. However, sometimes Excel will continue Save, Undo, and Redo. Click the drop-down arrow to the far
“correcting” something that is not an error and should not be right of the Redo icon, and you can customise this Quick
changed. You can instruct Excel to stop “correcting” this Access Toolbar by adding or removing icons.
temporarily by typing the word, hitting the spacebar once, 38. Customise status bar. The status bar is at the very bottom of
then clicking Undo or pressing Ctrl+Z. Excel. By default, the status bar includes many status
29. Disable AutoCorrect permanently for one situation. You settings, including showing the Average, Count, and Sum of
can instruct Excel to stop “autocorrecting” a word the data selected. These statistics can be very useful. If you
permanently by going to File, Options, Proofing. Select right-click on the status bar, you can customise it to show
AutoCorrect Options and scroll down to find the word that more or fewer statistics and adjust other status features.
Excel is autocorrecting. Click on the word and choose Delete. 39. Preserve leading zeros. If you enter a number in Excel that
Click OK. begins with one or more zeros, Excel will delete the leading
30. Create a Text Box. To create a text box, go to the Insert tab, zeros. To keep the leading zeros, add a single quote in front
Text group, and select Text Box. Left-click on the mouse and of the first zero, and Excel will preserve the leading zeros,
drag to create the borders of the text box. You can then type though it will treat the entry as text rather than a number.
text inside the text box. 40. Recover an unsaved workbook. Excel will autosave your
31. Convert formulas to values. To convert formulas to values, Excel workbooks (by default, every ten minutes). If you have
select all formulas or the entire worksheet or workbook and not previously saved your workbook and then close the
press Ctrl+C to copy. On the Home tab, Clipboard group, workbook by mistake or if your computer closes without the
select Paste, then select Paste Special. Select Values, then workbook being saved, you can recover the document. Go to
click OK. Or, after copying, press Shift+F10+V. File, Open, Recent Workbooks, Recover Unsaved
32. Insert a line break within a cell. You may need to have Workbooks, and choose the file that was closed before it was
multiple lines within a cell. For example, a heading for an saved.
income statement should include the company name, below 41. Instantly create a PivotTable without learning about
that, the text “Income Statement”, and below that, the ending PivotTables. PivotTables are extremely useful tools, but if
period. To have all three rows within one cell, you must you have not yet had the chance to learn how to create one,
insert a line break after each line of data by pressing Excel may be able to do all the work for you. Select the data to
Alt+Enter. be included in the PivotTable, go to the Insert tab, Tables
33. Find and replace. Find and replace has many useful abilities, group, and select Recommended PivotTables. If there are
such as finding a misspelled word and replacing it throughout enough data, Excel will give you some options of PivotTables
an entire worksheet; using a shortened word while creating a to choose from.
spreadsheet and replacing it with the long version when you 42. Import a table from the web into Excel. You can import a
are done; reusing a worksheet for a new client and instantly table from the web into an Excel workbook. Go to the Data
replacing the name; etc. Press Ctrl+H. Enter what you want to tab, Get & Transform Data group, and select From Web.
find in Excel next to Find what: (eg, old client name), then Enter the URL of the webpage containing the table when
enter what you want the found data to be replaced with next to prompted and click OK. Choose the desired table from the
Replace with: (eg, new client name). Navigator window and click Load.

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43. New workbook shortcut. To open a new workbook, press 52. Remove duplicates. A dataset can have duplicate entries,
Ctrl+N. such as a customer accidentally listed twice in a CRM
44. New worksheet shortcut. To create a new worksheet, press database. To eliminate duplicate information, select the data
Shift+F11. you want checked for duplicates and go to the Data tab, Data
45. Select all cells in a spreadsheet. To select all cells in an Tools group, and select Remove Duplicates. Select all the
Excel worksheet, click the triangle to the top left of the columns you want Excel to check for duplicates (be careful
spreadsheet located between column A and row 1. only selecting something like last name when you could
46. Ensure your Excel workbook is accessible to people with have multiple customers with the same last name). Click OK.
certain disabilities. Various disabilities can cause a person 53. Quickly insert today’s date. To insert today’s date in your
to have difficulty comprehending certain content. Making Excel worksheet, press Ctrl+; (semicolon).
content accessible is about improving characteristics of 54. Quickly insert current time. To insert the current time in
content that could otherwise limit a person’s your Excel worksheet, press Ctrl+Shift+; (semicolon).
comprehension. Excel can check your Excel workbook for 55. Format as numbers to include two decimal places,
accessibility. Go to File, Info, Check for Issues, Check thousands separator, and a minus sign for negative
Accessibility. Excel will then provide the results, which can values. To format as numbers to include two decimal places,
include errors, warnings, and/or tips, or confirmation that a thousands separator, and a minus sign for negative values,
your content is accessible. press Ctrl+Shift+! (exclamation point).
47. Repeat the last action. You can repeat the last action you 56. Format as currency with two decimal places and
did in Excel by pressing Ctrl+Y. This is a much more efficient negative numbers in parentheses. To format as currency
way of doing something in Excel that needs to be done with two decimal places and negative numbers in
repeatedly. parentheses, press Ctrl+Shift+$ (dollar sign).
48. Perform the same action to a group of consecutive 57. Format as percentage with no decimal places. To format
worksheets simultaneously. If you need to perform the as percentage with no decimal places, press Ctrl+Shift+%
same action to multiple worksheets in your Excel workbook, (percentage sign).
you can group worksheets and perform that action only 58. Strikethrough text. You may want to retain certain text but
once. Left-click on the tab of the first worksheet to include, show a strikethrough on it. To do this, click the cell where
hold down the Shift key, and left-click on the last worksheet you would like to include a strikethrough and go to the
to include. You have now made those worksheets a group. Go Home tab. Expand the Font group by clicking the arrow in
to any of the worksheets and perform the desired action. You the bottom right corner of that group, and put a check next to
will see that action has been performed on all worksheets Strikethrough. Click OK.
that were included in the group. When you are done, 59. Count the number of occurrences. You may need to count
right-click on any of the worksheets in the group and select
Ungroup Sheets.
49. Perform the same action to a group of nonconsecutive Flash Fill example (tip 60)
worksheets simultaneously. If you follow the instructions
in the previous tip but use the Ctrl key instead of the Shift
key, you can group individual worksheets that aren’t next to
one another.
50. Analyse components of a formula. Sometimes you need to
analyse your formulas, possibly because you are getting an
error message. One way to do this is by using a feature in
Excel that shows you all the cells that are being used in the
calculation of the formula. Click on the cell that contains the
formula you want to analyse. Go to the Formulas tab,
Formula Auditing group, and select Trace Precedents. This
will display a blue arrow from all cells that are included in
the formula.
51. Produce random numbers. To produce a list of random
numbers, click in the cell that will contain your first random
number. Use the function RANDBETWEEN. For the
Bottom, enter the lowest number in the range of random
numbers (eg, if you wanted numbers between 1 and 100, 1
would be the Bottom). For Top, enter the highest number in
the range of numbers (100 for the previous example). Drag
that formula down (or across) as many times as needed to get
the number of random numbers needed.

Data Bars example (tip 61)
the number of occurrences for certain things, such as the PowerPoint slide(s), click in the Excel workbook where the
number of items in a list or the number of commissions object should be placed. On the Insert tab, Text group, select
earned by a salesperson, etc. Choose the function Object. To create a new object, select the object type on the
COUNT(Value1,[Value2] …). For Value1, select the cells that Create New tab. To insert an object that has already been
contain those occurrences. If there are other data to include created, go to the Create from File tab and select Browse.
in the count, include those for Value2 and so on. Locate the object and double-click to select. You can check
60. Quickly fill cells with Flash Fill. Excel can automatically fill the Link to file box if you want the embedded object to stay
in a column or row of data if it senses a pattern. For example, linked to the source file and therefore be updated for any
if your spreadsheet contains first and last names in column changes to the source file. You can also check the Display as
A, and you would like just the last names listed in column B, icon box, which will display the embedded object as an icon
start typing the last names in column B and, once Excel instead of the object itself. Click OK.
senses the pattern, you will see all last names appear in 65. Increase numbers by a percentage. Excel can be used to
column B, as shown in the screenshot “Flash Fill Example” increase numbers by a certain percentage. First, insert the
on the previous page. Press Enter to keep Excel’s suggestions. amount of the percentage as a decimal added to 1. For
61. Visually represent your data using Data Bars. You can add example, a percentage increase of 20% would be entered as
Data Bars to cells to visually represent your data, as shown in 1.2 in a blank cell. Copy that number. Next, select the range of
the screenshot “Data Bars Example”. This can be helpful for cells that should be increased by the percentage. On the
interpreting and analysing data. Select the cells that you Home tab, Clipboard group, select Paste, then select Paste
would like to contain Data Bars. On the Home tab, Styles Special. Select Multiply, then click OK. Your numbers will
group, select Conditional Formatting, then select Data be changed to reflect the percentage increase. See the
Bars. Choose the colour of the Data Bars. screenshots “Percentage Increase Example” on the following
62. Round values up. Excel follows conventional rounding page for an illustration. In this example, there is a list of
rules, but sometimes you may need to round up all numbers. products with their current prices. In order to change the
Choose the function ROUNDUP(number, num_digits). For prices to reflect a 20% increase, 1.2 was entered in a blank cell
number, select the cell that contains the number to be (D1). That cell was copied, and the current prices were
rounded up. For num_digits, choose the number of decimal
places to round. Then copy the formula down for all
numbers.
63. Save Excel as PDF. To save a portion or all of your Excel
workbook as a PDF, go to the File tab, Save As, Browse.
Choose the desired location and type the desired name next
to File name:. Next to Save as type:, choose PDF. Now,
choose Standard (publishing online and printing) or
Minimum size (publishing online). Click Options. Here,
you can choose to include only a selection of a worksheet, an
entire worksheet, or the entire workbook; document
properties; etc. Click OK.
64. Embed Word, PDF, video, sound, or PowerPoint in Excel.
To embed a Word document, PDF, video, sound, or

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Percentage increase example (tip 65) selected (B2:B10). Under Paste Special, Multiply was
selected, and the prices for each product changed to reflect a
20% increase.
66. Use the “Tell me what you want to do” feature. There is a
Tell me box located on the right of the last command on the
ribbon in Excel. You can use this box to enter an action you
want Excel to perform, such as freeze panes, print, or insert
picture, or to get help on a particular subject. If possible,
Excel allows you to immediately perform the action. The Tell
me box will also allow you to get additional help on the
subject you have entered through the Excel help content, or
to use Smart Lookup, which browses the internet for help on
the subject (see the screenshots “Tell Me Box Examples” on
the following page).
67. Insert hyperlinks. To insert a hyperlink in your Excel
workbook, highlight the text, image, etc, that will be linked.
Right-click and select Link. You can choose to link to an
Existing File or Web Page and choose the path of the
existing file or enter the URL of the webpage. You can choose
to link to a Place in This Document and choose the
worksheet and cell reference/defined name. You can also
choose a link to Create New Document or E-mail Address.
Beyond Excel tips

68. To quickly look at two windows side by side on a
Windows computer, select a window, and press the
Windows Key+left arrow key to “snap” it to the left side of
your screen. You can snap a different window to the other
half of the screen by selecting the window and pressing the
Windows Key+the right arrow.
69. Set up Google Alerts for clients, customer, bosses, leads,
family, etc. Visit google.com/alerts and set up your search
criteria. Try to be as specific as possible to avoid false positives.
There will be a preview of your search, as shown in the
screenshot “Google Alerts Search Box” on the following page.
70. Use a password manager, which provides better security
than trying to remember a bunch of different passwords and
also is incredibly convenient!
71. Turn off all unnecessary notifications on your phone.
The unnecessary interruptions to your day impact
productivity significantly. Don’t approach this all at once: As
you receive notifications, decide if the notification is
mission-critical or can be silenced.
72. When searching Google, hold down the Ctrl key when
clicking links to open each link in a new tab. This way you
never lose track of the search results page.
73. Use search whenever possible on your PC, on your phone,
and in your email. On a Windows 10 PC, you can just begin
typing after clicking the Start button.
74. Windows Quick Assist, which is built into Windows 10, is
an extremely easy method to share your screen without the
need to download and install anything. To access easily,
search (with tip 73) for “Quick Assist”.
75. Right-click on apps pinned to the taskbar to bring up lots
of hidden options for various applications.

Tell me box examples (tip 66)
76. Use the Save as PDF option built into Microsoft Office. No
need to print and scan or use a third-party app.
77. Realise the power of touch. Microsoft Office ribbons are
optimised for touchscreen. If using Office on a device with a
touchscreen, press various menus with your finger and see
the difference.
78. Stop typing the same email. Use Quick Parts in Outlook to
quickly insert text you type out all the time.
79. Change the time zone. When setting a diary appointment
with someone in another time zone, change the
appointment to invitee time zone to avoid mistakes. For
example, if you are in Eastern time in the US and the other
person agrees to meet at 1pm in London, simply change the
appointment to London time and set it for 1pm.
80. Embed your videos into presentations. Stop linking to
videos that won’t play offline. Move the presentation to
another computer to test. Disconnecting from the internet
isn’t a good enough test. When inserting your video, do not
click Link to File. Instead, always choose Insert, as shown
in the screenshot “Insert Video Example”.
Google Alerts search box (tip 69) Insert video example (tip 80)

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To insert a hyperlink in Snipping Tool Delay option (tip 91)
your Excel workbook,

highlight the text,
image, etc, that will be
linked. Right-click and
select Link.
81. Disable background data on your phone. It doesn’t just 86. Link your phone to your Windows 10 PC. Use the
save data usage, it saves a lot of battery. For iPhone the Microsoft phone companion app to send and receive text
feature is called Background App Refresh. Go to Settings> messages on your PC. From Windows 10 search for “Your
tap on General>scroll down and tap on Background App Phone” and the app will walk you through the configuration.
Refresh>toggle Background App Refresh off. On Android 87. Integrate Cortana with your email, and Cortana will send
the feature is called “Data Saver”. Go to Settings> you daily “Heads-up” reminders to follow up on things you
Connections>Data Usage>Data Saver>toggle Off. said you would do in your email. For example, if you write in
82. Use the Steps Recorder in Windows to record instructional an email, “Jeff, I will send you the schedule tomorrow”,
steps to share with someone quickly. Cortana will send you a reminder to send Jeff the schedule.
83. Check the lighting. When on a video meeting, make sure On your PC, search for “Cortana” and open the Search and
you have adequate front lighting. For a quick and easy Settings, and under the Permissions section click Manage
solution, try a USB LED light strip for under $10. By sticking the Information Cortana can access from other services.
it to your monitor, it will provide just enough front-facing You will be able to select your email source and configure
light to provide good video quality. See an example at access. This will enable the Cortana reminder emails.
amzn.to/2F4kZ0c. 88. Always use multifactor authentication when it’s available
84. Use the mute button when not speaking on conference in the application you want to use.
calls/video meetings. You can’t hear your own background 89. Use Bit.ly to shorten long URLs. As a bonus, you can track
noise, but everyone else can. how many people click the links.
85. Use the built-in PowerPoint laser pointer when 90. Open PDFs in Microsoft Word to quickly convert a PDF to an
presenting your screen in a remote meeting. The virtual laser editable document. Open Word and from the Open menu
pointer is available either at the bottom right of a select the PDF you would like to convert.
presentation screen or from the Presenter View. 91. Use the “Delay” option in the Snipping Tool to capture
menus that don’t stay open when you click New. One of the
authors used a two-second delay to capture the snip titled
“Snipping Tool Delay Option”.
92. Enable Clipboard history and use Windows Key+V to access
multiple items on your clipboard. To enable it, search
Kelly L. Williams, CPA, Ph.D., MBA, is an assistant professor “Clipboard” on your PC and select Clipboard Settings.
of accounting at Middle Tennessee State University, and 93. Use the Morph transition in PowerPoint to easily animate
Byron Patrick, CPA/CITP, CGMA, is senior applications objects. Morph is available in the Transition tab. To use it,
consultant at botkeeper. To comment on this article or to duplicate a slide you have already created, move/resize
suggest an idea for another article, contact Jeff Drew, an FM objects on the second slide, and apply the Morph transition
magazine senior editor, at Jeff.Drew@aicpa-cima.com. to both slides.
94. Save your favourite animation. If you have a favourite

Dynamic lock dialog box (tip 98)
Use the Steps Recorder
to share instructional
steps with someone
quickly.
animation you want to use throughout your presentation, 98. Lock your computer when you are away. Use Dynamic
you can easily apply the same PowerPoint animations on lock to automatically lock your computer when you walk
every slide by adding the animation to the Master Slide. From away from it with your phone. Search for it on your PC and
the View ribbon select Slide Master and apply your edits. click on the checkbox as shown in the screenshot “Dynamic
95. Insert signature lines in Word. If you need to add a line Lock Dialog Box”.
where someone can sign in a Word document, choose the 99. Quickly insert screenshots into MS Office documents
Signature Line option in the Text group on the Insert tab. using the Insert>Screenshot option as shown in the
96. Go back in time. Looking for something you were working screenshot “Insert Screenshots Example”. This feature will
on “the other day”? Press Windows Key+Tab to open a offer you all of the windows that are already open without
timeline of your activities in Windows. having to snip them.
97. Protect your computer from attack. Use Controlled Folder 100. Keep tabs on your apps. When using Alt+Tab to move
Access in Windows to protect your computer from potential between apps, you can use your mouse (or touchscreen) to
ransomware attacks. quickly select the app you want to switch to. Q
Insert screenshots example (tip 99)

Ask the Expert • TECHNOLOGY
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Architecture
that builds
value
Done well, it can pay off with more
than just customers.
By Amanda Abrams
W
hen the giant German public. There’s no reason to invest in their Elevator AG. It was a hard decision and a
conglomerate appearance. new one for the division, she said, but
thyssenkrupp needed a But then the company’s leaders had a ultimately the senior staff were all open to
new tower to test its change of heart. The new tower would be trying something different.
lifts technology, the located close to a historic German town, That was around 2012. Five years later,
company originally planned to go the and the leaders didn’t want to erect an in the historic town of Rottweil, Germany,
simple route, with an industrial, eyesore that would mar the landscape. thyssenkrupp held an opening ceremony
utilitarian design. It made financial sense: “We talked about it and thought, ‘Why for its new, striking 246-metre-high tower
After all, the buildings used to test lifts’ don’t we do it as impressive architecture?’” with an unusual helical design. That’s
capabilities are purely functional remembered Katrin Hünger, CFO, when the senior staff had a realisation,
structures that are rarely viewed by the Innovation Center of thyssenkrupp recalled Hünger: “We noticed that the

Thyssenkrupp’s 246-metre-tall tower
dominates the skyline above Rottweil, Germany.
PHOTO BY THOMAS NIEDERMUELLER/REUTERS
tower had the potential to become an strategic and highly public calling card, needs, a soaring tower to show off to the
icon, a symbol for thyssenkrupp with a allowing thyssenkrupp to rebrand itself world. But for those considering an
certain marketing benefit.” and illustrate, in the most tangible way, upgrade to their physical facilities,
That observation was an the strengths and values it wants to architecture can be a remarkably strategic
understatement. Since its opening in 2017, promote. decision. Experts and businesses that
the tower has received enormous media Obviously, not every company has, or have gone that route say a building’s
attention, attracted hundreds of unique design can help a company stand
thousands of visitors, and potentially out to clients, appeal to customers, and
shifted public perceptions of — particularly important at a time when
thyssenkrupp itself. In short, the tower’s talented workers are a precious resource
distinctive architecture now serves as a — attract potential employees.

Visitors look out over
the countryside from the
thyssenkrupp tower’s
observation deck.
A soaring helical tower not particularly well known, the architecture. In response, the lift
A blue-chip manufacturing company with company’s lift division is large — it earned division’s leadership decided to create
a February market cap of €9.8 billion ($11 €866 million ($980 million) before something different, “something very
billion) that started out as a steelmaker in interest and taxes in 2017–2018 — and special that is capable of gaining attention
the 1800s, the company is undergoing a remarkably high-tech. The division builds internationally,” Hünger said.
major restructuring with a planned split the ropeless MULTI lift that can move Thyssenkrupp’s leaders had a hunch it
between the industrial and materials sideways and diagonally, as well as up and could also pay off by shifting the
groups. Thyssenkrupp had already begun down. But those newer forms need towers business’s image. With an innovative
strategically thinking about how where they can be tested at high speeds. tower, “we can show we’re a tech-driven
architecture informed its reputation in Formerly, all of thyssenkrupp’s test company”, Hünger said.
the early 2000s, when it contemplated towers were indistinct and somewhat After soliciting bids from architects,
building a new headquarters. Generally hidden away. “Our industry used to build the company chose Werner Sobek and
perceived as solid, reliable, and perhaps a elevator test towers in industrial zoning Helmut Jahn, who produced a design for a
bit staid, the company was looking to areas where hardly anybody would notice 246-metre tower clad in a unique
create a new image for itself. them,” said Hünger. glass-fibre “skin” and with an observation
In the end, the business invested in an But the company’s leaders felt that the deck at the top. In December 2014,
PHOTO BY THOMAS NIEDERMUELLER/REUTERS
environmentally sustainable, tower planned near Rottweil — which is thyssenkrupp held a ground-breaking
architecturally distinct low-rise campus the oldest town in that part of southern ceremony.
in Essen, Germany, that opened in 2010. Germany — should somehow “Of course, it’s not always easy to talk
The hope was that the modern complement the area’s historic with [architects] — you have to find a way
headquarters would help shape a new to have imagination, but it has to also be
public perception of thyssenkrupp as an very industrial,” Hünger said. Once
innovative, dynamic, and technologically construction began, the company’s
savvy business. project managers had to stay on top of the
So the construction of thyssenkrupp’s building’s progress, which required
test tower had a precedent, although intense coordination; at the peak of its
leaders in the lift division say their construction progress, the tower grew by
decision was made independently. While four metres a day. “The construction of

the tower was a challenge for everybody
involved. We hadn’t done anything like ‘There’s a generation of people
this before.”
But the project finished largely on looking to work for best-in-class
time, at a total cost of €40 million ($45.2
million). Hünger, who is in charge of the companies, and they expect to be in
lift division’s finances, estimates that the
tower’s spectacular architecture added
10% to 15% to the total cost.
best-in-class facilities.’
It’s an investment that has paid off in Paul De Santis, project designer for Zurich Insurance Group’s North America headquarters
multiple ways since the tower opened in and partner with the architecture firm Goettsch Partners
October 2017. First, there’s an overtly
financial aspect that took Hünger and her
colleagues by surprise. “The tower has
become a tourist attraction. Visitors come yourself if you’ve seen the brand there,” insurance companies, have often
from all over the world,” she said. Hünger pointed out.) The test tower’s constructed imposing facades to indicate
Thyssenkrupp had originally estimated unique architecture has given the division their seriousness and reliability.
attracting 100,000–150,000 visitors during a very public identity, one that’s bold and Iconic corporate architecture became
the tower’s first couple of years. In fact, in forward-looking. “We love the fact that the particularly popular in the 1960s. In the
the first 12 months after it opened, tower fosters our image as a technology US, for example, technology companies
230,000 people paid the €9 entrance fee to company and elevator manufacturer, such as IBM and Bell Labs employed
ascend to the viewing platform and look instead of presenting thyssenkrupp solely big-name modern architects such as Eero
out over the countryside. as a steel supplier, as we are often Saarinen and Charles and Ray Eames to
It has also paid off in media coverage. perceived by the public.” design their buildings, underscoring the
According to Jasmin Fischer, head of And that also improves employee pride companies’ future orientation.
media relations for the lift division, and helps to attract new talent. “It’s a hard Today, tech companies are still driving
almost 2,000 stories about the building competition here in Germany for all the some of the trends in corporate
appeared in print and online publications engineers,” said Hünger, who also architecture. Open plan offices, exposed
in 91 countries in the first year after the oversees the division’s research and brickwork, and whimsical features such
opening. The articles mention the unique development wing. “It’s a good way to as slides, for example, originated in IT
tower, of course, but many also describe show that we are innovative and investing offices and have now become so
the company’s innovative lifts. Media in the future.” ubiquitous as to be clichés. More broadly,
attention has been so strong that The company has been so pleased with companies from a range of industries feel
thyssenkrupp didn’t have to spend a the outcome that it is planning something pressure to appear innovative and
single euro advertising the tower or the similar in the US. Thyssenkrupp has forward-thinking at a time when new
lift division’s products in the first 12 already broken ground on its North technology influences ideas and products
months after the tower opened, Fischer American headquarters in Atlanta. The around the world.
said. campus will be accompanied by another But there’s been a key shift. These days,
Having a physical presence also architecturally distinct test tower, and companies create distinctive facilities not
supports the sales process. Before, thyssenkrupp hopes it will receive a simply to appeal to consumers, but to
thyssenkrupp’s lift division lacked a single similar level of attention and acclaim. attract and retain key talent.
building where it could demonstrate the “The architecture does need to convey
range of its products. Now the tower The messages architecture a sense to the broader public, but the real
serves as a showroom: Potential buyers can send focus is the user,” explained Paul De
can come to Rottweil, ride to the top, and There’s nothing new about companies’ Santis, project designer for Zurich
examine the lift options in person. And use of architecture to gain visibility or Insurance Group’s North America
the tower also earns money as an event convey a particular set of values. Big headquarters and partner with Goettsch
space; local businesses frequently book corporations have long employed Partners, an architecture firm with offices
the rooms at the top for meetings and impressive buildings to highlight and in Abu Dhabi, Chicago, and Shanghai.
activities. elevate their status; those entrusted with “The idea that you’ll be able to attract the
However, Hünger said that the most the public’s money, such as banks and highest-quality people and retain
profound benefits of having invested in
an iconic tower aren’t so immediately
apparent. “What you cannot assess by
looking at these numbers is the enormous
image boost for thyssenkrupp as a brand,”
she explained. Formerly, the company’s
lift division was largely invisible to the
public. (“You go into an elevator and ask

high-quality staff is a massive thing, no principal and co-founder of the New the 10-acre campus boldly advertises the
matter whether you’re in Germany or York-based architecture firm HWKN. “It’s company’s values: It is LEED Platinum-
China or the US. And architecture plays a not just about making six figures and certified and completely powered by
very big role in that. There’s a generation driving a BMW — nobody cares about the renewable energy, with rainwater
of people looking to work for best-in-class BMW anymore, and with six figures it’s harvesting facilities and on-site waste
companies, and they expect to be in like, ‘OK, but what else do you do?’ [The conversion.
best-in-class facilities.” job] is also about lifestyle, quality of life, The company designed the campus to
Indeed, the US, Europe, Japan, and purpose.” And it doesn’t hurt, Hollwich appeal to employees’ emotional and
many other places are suffering from added, if all of that can be documented on intellectual needs in order to inspire
intense labour shortages, particularly in intensely image-focused social media. creativity and innovation in the
industries that require specialised Standout architecture can fill many of workforce.
technical knowledge. Companies are those roles. That’s what the leaders of
competing for skilled workers — many of Suzlon Group, a global renewable energy
whom are seeking more than simply a company based in Pune, India, had in
nice paycheque. mind when they built a new headquarters
“People want to be proud of the place in 2009. Named Suzlon One Earth and
where they work,” said Matthias Hollwich, with a capacity to house 2,300 workers,
PHOTO BY VIEW PICTURES/UIG VIA GETTY IMAGES
The Leonardo Glass Cube in

Bad Driburg, Germany, is the
headquarters and showroom
for German glassware company
Glaskoch.

But an inspiring facility can appeal to
other important players as well: potential
These days, companies create
partners and clients.
distinctive facilities not simply to
The benefits of a modern glass cube
“You cannot have the same showroom appeal to consumers, but to attract
you have had for 20 years and then tell
people about the future,” said Oliver and retain key talent.
Kleine. The director and fifth-generation
owner of Glaskoch Corporation, a German
glassware company, explained why the
160-year-old business built a new
headquarters and showroom in 2007.
Around 2003, the company — which line that included furniture, tabletop of crews shooting scenes for film and
operates under the brand name Leonardo items, and jewellery. That led to questions television, nearly cover the building’s
— began thinking about becoming a about the space that the company was overall operating costs, including heating,
lifestyle company, with a broader product using to show off its goods. “We started to cooling, and electricity.
think about architecture because I don’t But perhaps the greatest benefit of
want to only speak about the future and having an ultramodern building is the
the vision, but to show that people really impression it immediately conveys about
can live it,” Kleine said. the business. Kleine explained that back
Kleine met the owners of 3deluxe, the in 2009, the company was aiming to
architecture firm that ultimately designed expand into furniture, and he and his
Glaskoch’s new space, at an exhibition colleagues met with other brands to
and quickly felt a connection with them. discuss Glaskoch’s plans.
At that time, 3deluxe was a young “The first companies asked why we
company that hadn’t yet created any wanted to do it. We had to find a way to
permanent buildings. Kleine was willing show them what our philosophy was, so
to take a risk on its architects. “Somehow, we showed them this glass cube. And after
I knew that when they were working on that, there were no more questions,” he
something for the first time, they would said. “It’s a very nice tool for new business
give much more of their passion than development. They see the building, they
well-known architects, where you pay for like it very much, then they go inside and
the name,” he said. see what we’re doing, and very often
The result is the Leonardo Glass Cube, they’re impressed. I don’t know how it
a 1,200-square-metre building in Bad would’ve been if we didn’t have the cube.”
Driburg, Germany, that combines Of course, Kleine has been lucky: Even
naturalistic lines — think of a turtle shell’s after ten years, the building still looks
design — with a lot of glass. It’s a modern and fresh. Aside from cost, that
stunning, unusual-looking facility that may be the other big downside to
ultimately cost Glaskoch about €10 investing in unique architecture as a
million ($11.3 million). branding tool: Although not always true, a
Kleine said it has been worth it. “I contemporary design could look dated
think everybody is quite proud of having after a few years and may no longer appeal
such nice architecture,” he said, referring to potential employees and clients or to
to Glaskoch’s 280 employees, who can the public.
enjoy the facility’s gleaming terrace on Still, for those that put in the time and
nice days. calculations to get it right, great
Just as important, the building has architecture can seriously pay off. Q
attracted a huge amount of public interest
that — as in the case of thyssenkrupp —
has benefited the company financially.
“Every year, we have three or four Amanda Abrams is a freelance writer
commercial things happening here,” Kleine based in the US. To comment on this
said. Movie scenes and advertisements article or to suggest an idea for another
have been filmed in the glass cube, bands article, contact Drew Adamek, an
have held concerts, and other companies FM magazine senior editor, at
have used the space for expositions. Fees Andrew.Adamek@aicpa-cima.com.
for use of the space, particularly in the case

A tool to
strengthen
the supply chain
A free toolkit helps companies employ effective strategies
to promote ethical practices within their supply chain.
By Pauline Dibben, Ph.D.; John Cullen, FCMA, CGMA; Gareth Crockett, Ph.D.;
Juliana Meira, Ph.D.; and Geoffrey Wood, Ph.D.
E
thical employment practices those events, have made organisations companies employ effective strategies to
and resilient supply chains are increasingly aware of the need to know promote ethical practices within their
essential ingredients of a what happens down the supply chain and supply chain. The research team, which
reputable and sustainable take responsibility for it. Failure to take received funding and guidance from
business. Worker tragedies in responsibility can seriously undermine CIMA, also found that many companies
emerging economies, such as the collapse brand identity for many years, as many miss out on opportunities to employ
of the Rana Plaza textiles factory in companies have discovered over time. accounting techniques that could make
Bangladesh in 2013 that killed more than The Supply Chain Accounting and their supply chains more resilient.
1,100 people, evidence of child labour in Employment Practices (SCA-Emp) These findings were incorporated into
the production of mobile phones and research team, a multinational the SCA-Emp Diagnostic Toolkit, which
batteries, and worker suicides at Foxconn collaboration of academics and industry was designed to help accountants, human
in China, along with media coverage of representatives, found that few resources professionals, and supply chain

IMAGES BY OTTO STEININGER/IKON IMAGES
cost-cutting pressures had led to
arm’s-length contracting further down the
How to get the toolkit supply chain, particularly when sourcing
The SCA-Emp toolkit is a free from companies in Asia.
resource, available to download at In South Africa, tier-one suppliers were
www.sca-emp.com as an Excel file, heavily involved in the final production
or it can be completed online process, but outsourcing had meant that
(registration is required). workers were often given inferior
The toolkit includes seven sections employment conditions. In clothing and
containing statements on supply textiles firms, jobs were much more likely
chain management, employment to be short-term, with problems around
practices, accounting, and monitoring health and safety, and a lack of effective
of suppliers. It is a self-evaluation worker voice. In rural areas, self-employed
tool that includes suggested actions. workers were used, though they were not
The online version provides users monitored by the government or taxed.
with a report based on their The sector as a whole was struggling to
responses. survive, due to the availability of cheap
To find out more about the imports from China and South Asia.
research project or the toolkit, email These findings helped to inform the
Pauline Dibben at p.dibben@sheffield. SCA-Emp Diagnostic Toolkit.
ac.uk.
What accountants can do to
promote resilient supply chains
managers work together to ensure ethical management, and diversity) unless a Our research suggests that many
HR and accounting practices within their problem arose. Most companies (70% of organisations miss out on important
organisation and throughout the supply those surveyed) had an equal opportunities to make their supply chains
chain. opportunities policy within their own more resilient. Finance professionals can
The toolkit was launched in 2016 and organisation, but we found limited play an important role in helping their
has been downloaded by companies in transparency through the supply chain. organisation achieve this goal by:
more than 20 countries. Also, within the companies themselves, yyy Identifying ways that their skills can
there was limited diversity in terms of the complement those of procurement
What were the main findings? people employed, especially in and supply chain colleagues,
The SCA-Emp project aimed to identify management roles. and working together to explore
good practice and find out how (and In the automotive companies studied, those opportunities. For instance,
whether) companies were checking on knowledge of suppliers’ employment accountants are able to bring
their suppliers’ practices. What were they practices rapidly diminished as you their diagnostic skills, using tools
doing inside the company? Did they moved down the supply chain. Although such as open book accounting
monitor their suppliers? And did they Brazilian automotive companies still had or make-or-buy, to inform other
promote labour standards? strategic alliances with tier-one suppliers, colleagues of the costs and benefits
In 2014, the research team carried out associated with different scenarios.
a detailed survey of more than 100 The accounting section of the
automotive and textile companies in SCA-Emp toolkit can help identify
Brazil and South Africa, involving major ways to do this.
retailers, original equipment yyy Encouraging other colleagues and
manufacturers, and first-, second-, and departments to get involved in the
third-tier suppliers. It also drew on supply chain as well and to use the
in-depth interviews with accounting and toolkit as a strategy planner. For
finance managers, HR managers, CEOs, instance, HR practitioners bring
supply chain managers, trade unionists, skills around conflict resolution,
professional bodies in accounting and which can help identify the best
HR, nongovernmental organisations, and course to take if industrial action
employer organisations. such as strikes affect the supply
We observed that, in practice, many chain. They might also be able to
companies have little knowledge of help interpret data on suppliers’
supplier behaviour. We found that many employment practices with the
companies shared information with their intention of identifying potential
customers and suppliers on instances of labour exploitation and
manufacturing processes but not on costs therefore help prevent the risk of
or employment practices (such as damage to brand image.
training, recruitment, performance yyy Trying to build strong relationships

with customers and suppliers. Our
research suggests that long-term, Finance professionals can help make
trusting relationships between
customers and suppliers boost the supply chain more resilient by
competitive advantage for both.
Sharing financial data between
customers and suppliers (eg, by
building relationships with
using open book accounting)
can help to identify cost savings
customers and suppliers.
and prevent unexpected supply
interruptions.
y Not being afraid to ask customers
or suppliers for employment
information. We found that many more ethical dimension into their system, improve benefits and training
firms share data on production sourcing policy by asking suppliers for employees, and enhance interaction
processes or product specification, to complete the toolkit at the point between the accounting and commercial
but they rarely inform one another of registration and to review it at team. Between December 2016 and 2017,
about labour costs and practices. regular intervals. The completion of it developed better relationships with
This can help to highlight instances the toolkit by suppliers is an integral customers and saw an increase of around
where workers are not being treated part of identifying and promoting 7% in productivity, 5% more business, and
well — for example, by being paid best practices with preferred a 2% increase in profits. Company
less than the minimum wage. suppliers. directors informed us that they
Sharing this type of information attributed much of this improvement to
relies on trust, which can take How to use the toolkit their use of the toolkit. A second
time to build, but you can start The toolkit will appeal to companies and automotive company in Brazil is now
small. You don’t need to share practitioners that wish to improve the modelling best practice to other
confidential information to make competitiveness and resilience of their automotive companies, and during a
improvements. For example, after supply chain and to those keen to prevent time of economic crisis, managers felt
using the toolkit, an agricultural damage to their brand that could arise if that their experience using the toolkit
business in South Africa with fewer poor labour standards in supplier firms helped them to maintain a focus on
than 100 employees introduced are exposed. ethics, values, and strategy.
more professional procurement Companies can use the toolkit to check A large UK local authority uses the
practices (eg, taking into account current practices within the firm, to plan toolkit as a central part of its ethical
cash flow management issues), and strategy across departments, or to procurement strategy. The initial phase
this enabled the business to create benchmark existing suppliers and of this process focuses on its largest
better relationships with suppliers evaluate potential suppliers. suppliers and will then be rolled out to
and develop more sophisticated its smaller suppliers. The toolkit will
production practices. Results obtained by toolkit users then subsequently be used to assess
y Using the checklist in the SCA-Emp Examining the aspects of the business potential new suppliers. Q
toolkit to help to evaluate current highlighted in the toolkit has helped
suppliers or to aid supplier selection. organisations around the world tackle
The toolkit can be used as part of several performance issues. Pauline Dibben, Academic FCIPD,
the assessment criteria to create a Organisations from across the world Ph.D., is a professor of employment
preferred supplier list. Some firms have used the toolkit to: relations; John Cullen, FCMA, CGMA,
have used the toolkit to integrate a y Increase employee productivity and is a professor of management
profits; accounting; Gareth Crockett, Ph.D., is
y Improve communication with a research associate; and Juliana
employees and relationships with Meira, Ph.D., is a lecturer in
customers and suppliers; management accounting, all at the
y Enhance their focus on ethics and University of Sheffield Management
quality; School in the UK. Geoffrey Wood,
y Improve knowledge of the supply Ph.D., is dean and professor of
chain and work toward better international business at the Essex
integration of departments within Business School in the UK. To
the organisation; and comment on this article or to suggest
y Embed forms of best practice an idea for another article, contact
throughout the organisation. Sabine Vollmer, an FM magazine
An automotive company in Brazil has senior editor, at Sabine.Vollmer@
drawn on ideas from the toolkit to aicpa-cima.com.
promote its performance appraisal

Watch for these
signs to spot
your rising stars
When scouting for high-potential talent,
the first place to look could be in-house.
By Hannah Pitstick
PHOTO BY MARIOGUTI/ISTOCK
A
s finance and accounting
teams experience talent
shortages, due in part to the
retirement of Baby Boomers,
limited applicant pools, and
a rising demand for new technology skills,
many are finding it more difficult than
ever to spot and nurture the next crop of
leaders.
“There’s a war for talent on a global
basis,” said Gareth El Mettouri, associate
director at Robert Half UAE, a human
resource consulting organisation.
In order to compete, an increasing
number of companies are setting up
“talent factories”, which Doug Ready, a
senior lecturer at the MIT Sloan School of
Management, defines as pipelines of
high-potential employees that “marry
functionality, or rigorous talent processes
that support strategic and cultural
objectives, and vitality, meaning
emotional commitment from
management that is reflected in daily
actions”.
These pipelines can help ensure a
steady supply of talented individuals are
ready to fill leadership roles, but even
when the talent you are looking for is
already in-house, you still have to know
how to spot them. That can be challenging
because the most desirable qualities of
future leaders are constantly shifting and
becoming increasingly elusive.

technology skills to their advantage to
‘They want clarity about what the further their career,” he said.
Individuals with a background in
big challenges facing their company analysis or data science, or those who are
eager to learn those fields, are likely
are and how they can help.’ candidates for leadership.
“A leader needs to have, at a
Doug Ready, a senior lecturer at the MIT Sloan School of Management, on high potentials minimum, a deep appreciation for the
power of analytics in order to drive a
strategy that’s based on analytics,” Ready
said. “It means understanding the power
of analytics, big data, and the practical
As Claudio Fernández-Aráoz wrote in a Resilience applications of artificial intelligence and
2014 Harvard Business Review article, A high-potential professional is willing to machine learning. You can’t just relegate
“21st-Century Talent Spotting”, try new things and is resourceful when that to young people down at the bottom
organisations and their leaders must placed in unfamiliar situations. The great of the hierarchy.”
transition to a new era in the hunt for ones are those who, even when they run
stars, “one in which our evaluations of into a roadblock, consider that roadblock Diverse perspectives
one another are based not on brawn, temporary and pivot to the future, It is vital to ensure that your company is
brains, experience, or competencies, but according to Ready. Look for team developing a talent pipeline that reflects
on potential”, which he defined as the members who display creative your customer base, and if your current
ability to adapt to and grow into problem-solving and are relentless in leadership only represents one subset of
increasingly complex roles and their pursuit of trying to improve things the population, you should be looking
environments. It’s not all about hard skills for both the customer and the company. for talent with new and different
anymore — those skills must be paired “The high potentials are the ones who perspectives that can help keep your
with experience, soft skills, and fresh want to see that direct linkage between company in touch with the modern era
perspectives. their contributions and productive and maintain a fresh wellspring of ideas.
Finding the finance leaders of the future outcomes,” Ready said. “They want clarity Diverse talent with experience in a
early has never been more important. A about what the big challenges facing their variety of work environments across
wise finance leader will build an effective company are and how they can help.” both global cultures and company
team around them and constantly be Rising stars are also extremely functions are likely candidates for
spotting potential talent. Often, that talent interested in feedback — praise as well as leadership.
is already working for you. Here are four developmental feedback that can help There is a lot of consolidation
things to look out for to identify the rising them get better. When looking for rising happening, El Mettouri said, and
stars on your finance team: stars, watch for resilient individuals who candidates who have experience working
seek out feedback and can take criticism in a variety of environments are better
Catalytic learning capabilities and use it to improve their performance. prepared to find solutions that work well
Rising stars are always learning, and in specific contexts.
because business models are changing Data and tech skills You should be looking for talented
all the time and new competition is Advances in technology are changing the individuals who have already taken, or
always lurking around the corner, nature of opportunities available in are willing to take, work assignments in
up-and-coming leaders must be finance, according to James Brent, a foreign countries, as well as individuals
comfortable operating in a continuous UK-based senior business director at who have a lifetime of experience as an
learning mode. Hays, a global recruiting company. You underrepresented minority in the field.
When assessing team members for should be looking for individuals who “If your business is globalising and
potential leadership possibilities, look for embrace this change and adapt to new your customers are increasingly diverse,
employees who voluntarily take on innovations in the market. you had better have people in your
additional courses, attend conferences, “There is increased appetite for organisation that are increasingly diverse
and acquire valuable certificates in key accountants and finance professionals so they at least have a better chance of
areas. who can also work as business analysts understanding customer preferences,”
“You need folks who have almost an and data scientists and use their Ready said. Q
intrinsic sense of curiosity, or what I like
to call catalytic learning capability,” Ready
said. “In other words, they’re able to Hannah Pitstick is a freelance writer
absorb a lot, learn from it, and catalyse based in the US. To comment on this
that learning into productive value for article or to suggest an idea for another
customers.” These are employees who are article, contact Drew Adamek, an
curious enough to look around for trends, FM magazine senior editor, at
are always embracing change, and are Andrew.Adamek@aicpa-cima.com.
perennial learners.

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1807-2839_CIMA MyJobs Ad_A_FM_V5.indd 1 30/08/2018 13:16

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Ask the Expert • BUSINESS EXPENSES
Cracking expense compliance

Q What exactly is meant by expense compliance?
A Expense compliance can be internal and external. Internal compliance

refers to employees within a business following travel and expense (T&E)
rules prescribed by company policy. Both intentional and unintentional errors
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regulations governing business practices and taxes. This could be examined by
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Q How do you tackle internal compliance?
A Strong internal compliance begins with good policies. These must be

company-wide and include details of what can and cannot be claimed for, travel
guidelines, mileage/fuel rates, and personal expenditure. Policy only helps to a
Dafydd Llewellyn point though; you need an understanding of the human side of T&E alongside
Managing Director, EMEA a supporting strategy. With travel, people often spend time away from loved
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SAP Concur complex policies. Company culture can also have an effect on compliance, as
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Since joining in 2004, Dafydd instance. It can account for the vast majority of your T&E spend, yet also be the
Llewellyn has played a key role in WULFNLHVWWRWUDFN7KDWPDNHVLWDQHDV\WDUJHWIRUH[SHQVH´SDGGLQJµ$GYDQFHG
developing the UK business — tools can automatically track and create mileage claims to ensure their accuracy
helping growing companies to and alert people when an expense is out of policy. So, what should businesses
transform their manual expense, do? Firstly, they must understand the existing corporate culture and enable
travel, and invoice processes. positive change by encouraging and enforcing the right kind of behaviour.
Secondly, they should use technology to understand whether people are
complying with policy, making it easier for people to submit expenses correctly.
Q How do you tackle external compliance?
A +05&KDVFOHDUGHÀQLWLRQVRIZKDWDEXVLQHVVH[SHQVHLVZKDWFRQVWLWXWHV
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ZLWKGLIIHULQJOHYHOVRI9$7RQH[SHQVHV,WFDQEHFRPSOH[IRUÀQDQFHWR
memorise and apply all the rules, ensuring compliance along the way. Expense
management tools can therefore help minimise risks around regulatory
FRPSOLDQFHDVWKH\DXWRPDWLFDOO\DSSO\WD[UXOHVVR\RXUWHDPGRHVQ·WKDYHWR
remember them all. VAT is worked out for each expense type so you can reclaim
the correct amount of tax without falling foul of legislation.
For more than two decades, SAP
Concur has taken companies of all Q What should the tech solution include?
sizes and stages beyond automation
to a completely connected spend A There are many providers of expense tech out there, so look for a few key
management solution encompassing things: use a cloud-based mobile solution; use something that integrates credit
travel, expense, invoice, compliance, cards and supplier feeds; use a system that includes a mileage tracker; ensure
and risk. reporting and visibility capabilities are built in; and ensure that data security and
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SPONSORED REPORT
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DATA
ANALYTICS
AND BEYOND
Learning programmes that future proof
careers and take you beyond disruption.
Learn more at CGMAStore.com/DA.
© 2018 Association of International Certified Professional Accountants. All rights reserved. 1812-5053D
1812-5053 Data Analytics Campaign - FM ad.indd 2 12/11/18 10:11 AM

INSTITUTE
N E W S
2019 elections to CIMA Council
Newly elected members Re-elected members Patrick Barr — Northern Ireland
T he following members have been

elected for their first term as
Members of Council, to serve from
The following members have been
re-elected to serve for another term on
Council from the close of the Annual
constituency (EC8)
Louise Connaughton — Republic of
Ireland constituency (EC9)
the close of the Annual General General Meeting on 7 June 2019 until the Stuart Wayment — Central Southern
Meeting on 7 June 2019 until the close of the Annual General Meeting in England constituency (EC11)
close of the Annual General Meeting 2022: Aidan Goddard — North Asia
in 2022: constituency (EC15)
James Owen — Central London and North Francis Chan — South East Asia
Suresh Perera — South Asia Thames constituency (EC1) constituency (EC16)
constituency (EC14) David Johnson — South West England and Martin Saxton — The Americas
Paul Wilhelmij — Europe, North Africa, South Wales constituency (EC2) constituency (EC18)
and Middle East constituency (EC17) Michael Lowney — East Midlands and
East Anglia constituency (EC3) Yolanda Don-Pierrot — East, West
Stephen Milne — Scotland constituency Nicholas Jessett — West Midlands Central, and Southern Africa
(EC7) — has been elected for his first constituency (EC4) constituency (EC10) — has been
term as a Member of Council, to Nick Davison — North East England re-elected to serve for another term
serve from January 2019 to the close constituency (EC5) on Council from the close of the
of the Annual General Meeting John Graham — North West England and Annual General Meeting on 7 June
in 2020. North Wales constituency (EC6) 2019 until the close of the Annual
General Meeting in 2020.
Start logging your

CPD now
P lease familiarise yourself with the Competency and
Learning website and start logging your CPD now. This will
make it easier for you to keep track of your achievements and
submit your record to CIMA when requested.
The A to E of finance
CPD will remain output-based and continue to place an
emphasis on the benefits of each activity. By using the
Competency and Learning website, you can be sure that you are
F inance professionals need to be digitally agile. In the
Association’s Future of Finance research, the immediate
need for members to acquire new competencies emerged as a
completing the six steps of the CIMA Professional Development main theme.
Cycle. The “A to E” of finance — automation, blockchain,
IMAGE BY VOYATA/ISTOCK
Download the guide to using the Competency and Learning cybersecurity, data, and everything else that surrounds them
website at tinyurl.com/y2gqgecr or visit the Competency and — are redefining today’s businesses. To help CIMA members
Learning website at competency.cgma.org. grapple with rapid digitisation and navigate the future of
If you have any queries, please contact cima.contact@ finance, paid and free CGMA learning, research, and other
aicpa-cima.com. resources are available at tinyurl.com/y4tm5dau.

CIMA president’s visit to Africa CIMA India
wins 2
C IMA president Steven Swientozielskyj made a one-week visit to Africa in March. His first stop
was Botswana, where meetings included one with the country’s first lady, Neo Masisi, FCMA,
CGMA, for a wide-ranging discussion.
education
In Zambia, in addition to meeting CIMA members and Association employees, the CIMA awards
president visited the Zambia Institute of
Chartered Accountants (ZICA), which, he
said, was about “developing cordial
relationships”.
C IMA India won two
awards in Mumbai in
mid-February. First, in The
He added: “Africa as a continent is an Innovative Education
amazing and dynamic place — full of energy Leadership Awards it won the
and enthusiasm for the future.” Best Global Institute for
In South Africa he spoke at a CIMA gala Accounting and Finance
dinner in Sandton in the northern province award. It also was the winner
of Gauteng. In Pretoria he was the keynote of the Excellence in
speaker at the CIMA Gauteng graduation Accounting and Finance
with more than 300 graduates and their Education award, presented
guests. during the Making of
Talking to members and students at Developed India conference.
events during the visit, Swientozielskyj
focused on CIMA’s 100-year celebration,
digitisation, and the CIMA qualification, CIMA president Steven Swientozielskyj with a
and how to remain employable in Diploma in Management Accounting graduate
the future. in Gauteng, South Africa.
CPD monitoring
A s a member and qualified

professional, you are required to
undertake CIMA Professional
Development. CIMA’s CPD scheme
provides a framework to help you
consider your learning needs, develop a
plan to meet your professional
development goals, and reflect upon your
achievements.
If you are selected to submit your CPD
record to CIMA for monitoring, you will
be required to do so using the
Competency and Learning website at
TOP: PHOTO BY MICHELLE VAN DER WESTHUYSEN/MICHELLE KALP

competency.cgma.org. CPD submissions
UK anti-money laundering guidance by any other method will not be accepted.
If your employer is part of CIMA’s
PHOTOGRAPHY; BOTTOM: PHOTO BY MARIOGUTI/ISTOCK
A ccountants are key gatekeepers for the financial system, facilitating vital
transactions that underpin the UK economy. They have a significant role to play in
ensuring their services are not used to further a criminal purpose. As professionals,
accreditation scheme, you will not be
required to submit your record. However,
if you are selected for monitoring, please
accountants must act with integrity and uphold the law, and they must not engage in get in touch with the CPD monitoring
criminal activity. team to confirm your status.
Anti-Money Laundering Guidance for the Accountancy Sector, available at tinyurl.com/
ybz6j36s, is a key document by the Consultative Committee of Accountancy Bodies,
which provides guidance based on the law and The Money Laundering, Terrorist
Financing and Transfer of Funds (Information on the Payer) Regulations 2017. It covers
the prevention of money laundering and the countering of terrorist financing. It is
intended to be read by anyone who provides audit, accountancy, tax advisory,
insolvency, or trust and company services in the UK and has been approved and
adopted by the UK accountancy anti-money laundering supervisory bodies.

On-demand
customisation
T
hree-dimensional printing holds promise
for a manufacturing industry that will
operate “on demand” and reduce the need
for warehouses and distribution centres to
store and ship parts. This is because 3D
printing can print the whole product instead of the
alternative of producing parts and assembling them.
That said, experts say 3D printing will not replace
traditional manufacturing in the foreseeable future
because it’s still more expensive and slower than
traditional techniques of casting, forging, stamping,
and moulding that have been used for centuries. The
opportunity for 3D printing is not in cost savings but in
PHOTO BY JUAN CARLOS ULATE/REUTERS
production of highly customised products.

In healthcare, 98% of hearing aids worldwide are
now 3D-printed, according to a report by Wohlers
Grecia the toucan, who lost Associates, and crafted to fit each user’s unique ear
most of his upper beak in shape. In 2017, athletic apparel company adidas started
an attack, eats with his new selling 3D-printed shoes to elite athletes based on their
3D-printed beak at Zoo performance data.
Ave animal sanctuary in — By Alexis See Tho (Alexis.SeeTho@aicpa-cima.com),
Alajuela, Costa Rica. an FM magazine associate editor.
P ODC A S T S
Do you wonder about the best way
to build your personal brand? Are
you hoping to assume a leadership
role but unsure about how to
become a better leader? Listen to
insights from a global collection of
finance leaders and other experts
in the FM magazine podcast.
Stream episodes at
fm-magazine.com/podcast
or subscribe on iTunes or
Google Play.
Visibility,
automation,
and control
for your
dEdNZEb
NbfrRŬ
See how customers of all sizes, across every

TM
industry transform their close at blackline.com
Trust is in the Balance

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Driving innovation in management accounting | June 2019

KPMG is committed to delivering a

Anticipate Tomorrow. Deliver Today.

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CIMA HONORARY OFFICERS United Kingdom

Steven Swientozielskyj, FCMA, CGMA Amal Ratnayake, FCMA, CGMA

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For a century, CIMA members have transformed organisations, communities and

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By 1937, however, the Institute had published its first

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Ask the Expert • LEASES

A Implemented by the International Accounting Standards Board, the new

John Kuett A 7KHVHQHZOHDVLQJVWDQGDUGVZLOOEULQJJUHDWHUFODULW\WRFRPSDQLHV·DVVHW

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Beyond Excel tips