FAST FORWARD Building the Profession of Tomorrow

Supporting Individuals and Business in a Global EconomyBarry Melancon, President and CEO of the American Institute of CPAsCharles Tilley, CEO of the Chartered Institute of Management AccountantsSpring Council | May 18-20, 2014

Rebooting Business: Key themes from research

Unlock value in the human dimension and non-financial assets

Balancing short-term focus versus long-term sustainable success

Harnessing the power of transparency

Collaboration is key to success for management accountants

Working in collaboration to connect the dots

CEOs want people with:

• Strong technical skills in their discipline• Multi-disciplinary expertise and ability

to collaborate• Skills in management competencies• Strong strategic understanding of the

business as a whole

LIFELONG LEARNING

Defining the Management Accounting Profession CGMA in 2015

COMPETENCIES

ROLE OFMANAGEMENTACCOUNTING

GLOBALMANAGEMENTACCOUNTING

PRINCIPLES

SYLLABUS

ASSESSMENT CPD

HELPING PEOPLE SUCCEED

HELPING BUSINESS SUCCEED

RIGOROUSRESEARCH

Global Management Accounting Principles

The purpose of the Global Management Accounting Principles is to enable any size of organisation to benchmark their finance function against the Principles to identify elements of the function that need to be changed to support the improved resilience of that organisation.

Global Management Accounting Principles

Three Overriding Management Accounting Principles

COMMUNICATINGWITH IMPACT

PREPARING RELEVANTINFORMATION

MODELLING VALUECREATION

Values of Management AccountantsProfessional, Relevant, Innovative, Diligent, Ethical

+ +

BudgetingBusiness controlCost transformationExternal reportingInvestment appraisalPrice and product decisions

Project managementRegulatory adherence and complianceResource allocationRisk managementStrategic tax managementTreasury and cash management

Areas to which principles will be applied

We are talking to business

Issues Facing Business

Customer focus

Cost leadership

Risk management

External environment

Finance partnering• Big data and data analytics• Business models

Customer FocusedISSUES

Cost Leadership

Integrated management information system drives 20% lower costs than peers.

ISSUES

20%

Risk Management—Disruptive TechnologiesISSUES

“Save water with one rinse. It can be easy to forget that one in nine people still lack a steady supply of water...It’s vital that we make every single drop count.”Projectsunlight.com

Data analytics are a competitive advantage

ISSUES

“UPS has a history of monitoring and standardizing even the smallest issues, from drivers keeping keys hooked on a finger instead of in their pockets and making only right turns, to increase efficiency and reduce costs.” UPS Crunches Data to Make Routes More Efficient, Save GasBy Mary Schlangenstein, Bloomberg.com, Oct 30, 2013

Changing business models ISSUES

Freemium

Peer to Peer

Omni-channel

SMEs are going global

Source: SAP/Oxford Economics Q2, 2013 Survey

SMEs are going global

Source: SAP/Oxford Economics Q2, 2013 Survey

SMEs are targeting cost efficiencies based on data analytics

Source: SAP/Oxford Economics Q2, 2013 Survey

Copyright © 2014 American Institute of CPAs. All rights reserved.Copyright © 2014 American Institute of CPAs. All rights reserved.

Thank You

2014 AICPA Spring Council

Scottsdale, ArizonaMay 18-20, 2014