FAST FORWARD Building the Profession of Tomorrow

1. FAST FORWARD Building the Profession of Tomorrow Supporting Individuals and Business in a Global Economy Barry Melancon, President and CEO of the American Institute of CPAs Charles Tilley, CEO of the Chartered Institute of Management Accountants Spring Council | May 18-20, 2014

2. 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

3. 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

4. CGMA in 2015 Defining the Management Accounting Profession RIGOROUS RESEARCH HELPING PEOPLE SUCCEED SYLLABUS LIFELONG LEARNING COMPETENCIES ROLE OF MANAGEMENT ACCOUNTING CPD ASSESSMENT GLOBAL MANAGEMENT ACCOUNTING PRINCIPLES HELPING BUSINESS SUCCEED

7. Global Management Accounting Principles

8. 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.

9. Three Overriding Management Accounting Principles COMMUNICATING WITH IMPACT MODELLING VALUE CREATION PREPARING RELEVANT INFORMATION Values of Management Accountants Professional, Relevant, Innovative, Diligent, Ethical

10. + +

11. Areas to which principles will be applied • Project management • Regulatory adherence and compliance • Resource allocation • Risk management • Strategic tax management • Treasury and cash management • Budgeting • Business control • Cost transformation • External reporting • Investment appraisal • Price and product decisions

12. We are talking to business

13. Issues Facing Business • Customer focus • Cost leadership • Risk management • External environment • Finance partnering • Big data and data analytics • Business models

14. Customer Focused ISSUES

15. Cost Leadership ISSUES Integrated management information system drives 20% lower costs than peers. 20%

16. Risk Management—Disruptive Technologies “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 ISSUES

17. Data analytics are a competitive advantage “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 Gas By Mary Schlangenstein, Bloomberg.com, Oct 30, 2013 ISSUES

18. Changing business models Freemium ISSUES Peer to Peer Omni-channel

19. SMEs are going global Source: SAP/Oxford Economics Q2, 2013 Survey

20. SMEs are going global Source: SAP/Oxford Economics Q2, 2013 Survey

21. SMEs are targeting cost efficiencies based on data analytics Source: SAP/Oxford Economics Q2, 2013 Survey

23. Thank You

24. 2014 AICPA Spring Council Scottsdale, Arizona May 18-20, 2014