ACCT 326 WRITING ASSIGNMENT1

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The Association of Accountants and Financial Professionals in Business

ima

Statement on Management Accounting

IMA Management Accounting Competency Framework

About IMA® (Institute of Management Accountants) IMA, named 2017 and 2018 Professional Body of the Year by The Accountant/International

Accounting Bulletin, is one of the largest and most respected associations focused

exclusively on advancing the management accounting profession. Globally, IMA supports

the profession through research, the CMA® (Certified Management Accountant) program,

continuing education, networking, and advocacy of the highest ethical business practices.

IMA has a global network of more than 100,000 members in 140 countries and 300

professional and student chapters. Headquartered in Montvale, N.J., USA, IMA provides

localized services through its four global regions: The Americas, Asia/Pacific, Europe, and

Middle East/India. For more information about IMA, please visit www.imanet.org.

Statements on Management Accounting SMAs present IMA’s position on best practices in management accounting. These

authoritative monographs cover the broad range of issues encountered in practice.

Institute of Management Accountants

10 Paragon Drive, Suite 1

Montvale, NJ, 07645

www.imanet.org/thought_leadership

Contents

Introduction ...........................................................................4

Competency by Domain .......................................................5

Competencies Mapped to the 2020 CMA Exam .................7

Select Learning Resources by Domain .................................8

Strategy, Planning & Performance ........................................9

Strategic and Tactical Planning .....................................10

Decision Analysis ..........................................................11

Strategic Cost Management .........................................12

Capital Investment Decisions ........................................13

Enterprise Risk Management ........................................14

Budgeting and Forecasting ..........................................15

Corporate Finance ........................................................16

Performance Management ...........................................17

Reporting & Control ...........................................................18

Internal Control .............................................................19

Financial Recordkeeping ...............................................20

Cost Accounting ...........................................................21

Financial Statement Preparation ...................................22

Financial Statement Analysis .........................................23

Tax Compliance and Planning .......................................24

Integrated Reporting ....................................................25

Technology & Analytics .......................................................26

Information Systems .....................................................27

Data Governance ..........................................................28

Data Analytics ...............................................................29

Data Visualization ..........................................................30

Business Acumen & Operations .........................................31

Industry-specific Knowledge .........................................32

Operational Knowledge ................................................33

Quality Management and Continuous Improvement ...34

Project Management .....................................................35

Leadership ...........................................................................36

Communication Skills ....................................................37

Motivating and Inspiring Others ...................................38

Collaboration, Teamwork, and

Relationship Management ......................................39

Change Management ...................................................40

Conflict Management ...................................................41

Negotiation ...................................................................42

Talent Management ......................................................43

Professional Ethics & Values ...............................................44

Professional Ethical Behavior ........................................45

Recognizing and Resolving Unethical Behavior ............46

Legal and Regulatory Requirements .............................47

Conclusion ...........................................................................48

THE FUTURE OF MANAGEMENT ACCOUNTING IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK 3

THE FUTURE OF MANAGEMENT ACCOUNTING IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK 43IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORKCopyright © 2019 IMA (Institute of Management Accountants). All rights reserved.

IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK

TECHNOLOGY & ANALYTICS

BUSINESS ACUMEN & OPERATIONS

CATALYST PARTNER

LEADERSHIP CHAMPION

REPORTING & CONTROL

STEWARD

STRATEGY, PLANNING & PERFORMANCE

VISIONARY

PROFESSIONAL ETHICS & VALUES GUIDE

IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK

Management accounting is a profession encompassing finance and accounting professionals working inside organizations. Their role involves partnering in management decision making, devising planning and performance management systems, and providing expertise in financial reporting and control to formulate and implement an organization’s strategy.

Technology is redefining the role of the management accountant while also significantly changing the business landscape and the management accounting profession at an unprecedented speed. To keep pace with the changing business environment and advances in technology, IMA has analyzed the emerging competencies needed by management accountants and has updated the IMA Management Accounting Competency Framework.

This enhanced Framework identifies six domains of core knowledge, skills, and abilities that finance and accounting professionals need to remain relevant in the Digital Age and perform their current and future roles effectively. The Framework and associated materials are offered as guidance for skills assessment, career development, and talent management within the profession.

THE FUTURE OF MANAGEMENT ACCOUNTING IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK 54IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORKCopyright © 2019 IMA (Institute of Management Accountants). All rights reserved.

COMPETENCIES BY DOMAIN

DOMAIN COMPETENCIES

The competencies required to envision the future, lead the strategic planning process, guide decisions, manage risk, and monitor performance.

The competencies required to manage technology and analyze data to enhance organizational success.

The competencies required to measure and report an organization’s performance in compliance with relevant standards and regulations.

• Strategic and Tactical Planning • Decision Analysis • Strategic Cost Management • Capital Investment Decisions • Enterprise Risk Management • Budgeting and Forecasting • Corporate Finance • Performance Management

• Internal Control • Financial Recordkeeping • Cost Accounting • Financial Statement Preparation • Financial Statement Analysis • Tax Compliance and Planning • Integrated Reporting

• Information Systems • Data Governance • Data Analytics • Data Visualization

REPORTING & CONTROL

STRATEGY, PLANNING &

PERFORMANCE

TECHNOLOGY & ANALYTICS

COMPETENCIES BY DOMAIN

DOMAIN COMPETENCIES

The competencies required to contribute as a cross-functional business partner to transform company-wide operations.

The competencies required to collaborate with others and inspire teams to achieve organizational goals.

The competencies required to demonstrate the professional values, ethical behavior, and legal compliance essential to a sustainable business model.

• Industry-Specific Knowledge • Operational Knowledge • Quality Management and Continuous Improvement • Project Management

• Communication Skills • Motivating and Inspiring Others • Collaboration, Teamwork, and Relationship Management • Change Management • Conflict Management • Negotiation • Talent Management

• Professional Ethical Behavior • Recognizing and Resolving Unethical Behavior • Legal and Regulatory Requirements

BUSINESS ACUMEN &

OPERATIONS

LEADERSHIP

PROFESSIONAL ETHICS & VALUES

THE FUTURE OF MANAGEMENT ACCOUNTING IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK 6

THE FUTURE OF MANAGEMENT ACCOUNTING IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK 76IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORKCopyright © 2019 IMA (Institute of Management Accountants). All rights reserved.

COMPETENCIES MAPPED TO THE 2020 CMA EXAM

This chart illustrates how the CMA exam aligns with the broader body of knowledge specified in IMA’s Competency Framework for finance and accounting professionals.

Domain 2020 CMA Exam*Competencies

Strategy, Planning &

Performance

Reporting & Control

Technology & Analytics

* CMA Part 1: Financial Planning, Performance, and Analytics | CMA Part 2: Strategic Financial Management

• Strategic and Tactical Planning......................... • Decision Analysis.............................................. • Strategic Cost Management............................. • Capital Investment Decisions........................... • Enterprise Risk Management............................ • Budgeting and Forecasting.............................. • Corporate Finance............................................ • Performance Management...............................

Part 1 Part 2 Part 1 Part 2 Part 2 Part 1 Part 2 Part 1

• Internal Control................................................. • Financial Recordkeeping.................................. • Cost Accounting............................................... • Financial Statement Preparation....................... • Financial Statement Analysis............................ • Tax Compliance and Planning.......................... • Integrated Reporting........................................

Part 1 Part 1 Part 1 Part 1 Part 2

N/A Part 1

• Information Systems......................................... • Data Governance............................................. • Data Analytics................................................... • Data Visualization.............................................

Part 1 Part 1 Part 1 Part 1

Domain 2020 CMA Exam*Competencies

Business Acumen & Operations

Leadership

Professional Ethics & Values

• Communication Skills......................................... • Motivating and Inspiring Others......................... • Collaboration, Teamwork, and Relationship Management...................................................... • Change Management......................................... • Conflict Management......................................... • Negotiation......................................................... • Talent Management............................................

• Industry-Specific Knowledge............................ • Operational Knowledge................................... • Quality Management and Continuous Improvement.................................................... • Project Management........................................

N/A N/A

Part 1 N/A

N/A N/A

N/A N/A N/A N/A N/A

• Professional Ethical Behavior............................ • Recognizing and Resolving Unethical Behavior............................................................ • Legal and Regulatory Requirements................

Part 2

Part 2 N/A

THE FUTURE OF MANAGEMENT ACCOUNTING IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK 87IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORKCopyright © 2019 IMA (Institute of Management Accountants). All rights reserved.

SELECT LEARNING RESOURCES BY DOMAIN

REPORTING & CONTROL

STRATEGY, PLANNING &

PERFORMANCE

TECHNOLOGY & ANALYTICS

BUSINESS ACUMEN &

OPERATIONS

LEADERSHIP

PROFESSIONAL ETHICS & VALUES

IMA Strategy and Competitive Analysis Learning Series® (Online Courses) FP&A Certificate (Online Courses) Strategic Management Webinar Series COSO ERM Certificate Program (Online Courses and Live Workshops) IMA Thought Leadership (Research)

IMA Thought Leadership (Research) Strategic Finance Technology Articles IMA Excel Series (Online Courses) Inside Talk: Tech-Talk Webinar Series IMA Educational Case Journal (IECJ®)

The Master Guide to Controllers’ Best Practices (Book) COSO Internal Control Certificate Program (Online Courses and Live Workshops) IMA Knowledge Exchange- Advantage Combo (Online Subscription Package) Statements on Management Accounting (SMAs) IMA Thought Leadership (Research)

Statements on Management Accounting (SMAs) IMA Educational Case Journal (IECJ®) Management Accounting Quarterly (MAQ) Strategic Finance Articles IMA Live! (Online Subscription Package)

IMA Statement of Ethical Professional Practice IMA Educational Case Journal (IECJ®) IMA Ethics Series (Online Courses and Live Workshops) Statements on Management Accounting (SMAs) Strategic Finance Ethics Column

IMA’s Leadership Academy (Webinars and Live Workshops) Strategic Finance Leadership Column and Articles IMA CPEdge™ (Online Subscription Package) Statements on Management Accounting (SMAs) Management Accounting Quarterly (MAQ)

To see a complete listing of 1,000+ learning resources, including thought leadership research, articles, webinars, online courses, and on-the-job activities, visit CareerDriver® at www.imanet.org/CareerDriver.

IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK 9

IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK

The competencies required to envision the future, lead the strategic planning process, guide decisions, manage risk, and monitor performance.

9IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK STRATEGY, PLANNING & PERFORMANCE

VISIONARY

LIMITED KNOWLEDGE

BASIC KNOWLEDGE

APPLIED KNOWLEDGE SKILLED EXPERT

STRATEGIC AND TACTICAL PLANNING Assess key business factors, and drive value through strategy and operating plan development and execution

Limited knowledge, skills, and/or experience with strategic and tactical planning

Demonstrate an understanding of how individual goals support organizational strategy

Perform analyses that support the strategic planning process

Recognize the value and importance of thinking long term for the organization

Demonstrate an understanding of the importance of pursuing strategies aligned with organizational mission, vision, and core values

Implement annual and/or short-term departmental goals linked to strategy

Explain how tactical plans link to organization-wide strategy

Identify critical success factors (CSFs) and related key performance indicators (KPIs) necessary for successful strategy implementation

Communicate organizational strategy effectively

Consider limited resources and necessary trade-offs when recommending business decisions

Assess strengths, weaknesses, opportunities, and threats (SWOT) facing the organization (e.g., PESTEL (political, economic, social, technological, environmental, legal) analysis)

Identify strategic issues and drivers of competitive advantage by employing industry analysis techniques, such as Porter’s Five Forces and scenario planning

Introduce innovative programs and processes that enhance organizational corporate social responsibility (CSR) and environmental objectives

Utilize business intelligence resources to identify strategic opportunities

Oversee the implementation of strategic initiatives, including allocation of resources, while balancing long-term strategy and short- term objectives

Communicate perceived strategy/organizational gaps and alignment issues

Evaluate the impact of strategic decisions on the value chain

Leverage strategic planning experience in multiple business environments to identify the key drivers of sustainable competitive advantage in a specific situation Develop strategy governance processes and measures for innovation effectiveness

Define the organization’s sustainable value-creation model, and drive innovation

Synthesize complementary and competing factors in a complex environment to determine trade-offs (e.g., resources, capital, technology, capabilities) when formulating the optimal strategy for the organization

Drive CSR strategies and environmental sustainability strategies that advance the organization’s competitive advantage

Use various data sources to identify leading indicators, predict competitors’ initiatives, and drive contingency plans

Communicate the vision, strategy, and execution plan effectively, internally and externally, to gain support and compliance

Recommend new methods and approaches (e.g., scenario planning, war gaming) for strategy development

THE FUTURE OF MANAGEMENT ACCOUNTING IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK STRATEGY, PLANNING & PERFORMANCE 10

10IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK STRATEGY, PLANNING & PERFORMANCE

VISIONARY

LIMITED KNOWLEDGE

BASIC KNOWLEDGE

APPLIED KNOWLEDGE SKILLED EXPERT

DECISION ANALYSIS Evaluate decision alternatives using analytical techniques, and make recommendations

Demonstrate an understanding of the basic types and purpose of decision-support tools (e.g., breakeven analysis, net present value)

Demonstrate research skills

Limited knowledge of decision analysis

Perform cost-volume-profit (breakeven) analysis to support product decisions

Evaluate data for decisions such as make or buy, lease or own, and sell or process further

Perform scenario analysis

Demonstrate critical thinking skills, including objective analysis, synthesis, and evaluation, to form evidence-based decisions

Evaluate nonroutine projects (e.g., special orders, outsourcing, business segments)

Identify the most important criteria for selecting the best alternative to support an organization’s strategic goals

Evaluate potential profitability using external and internal data sets

Evaluate and incorporate environmental (e.g., political, regulatory, market) and social factors when making strategic decisions

Lead complex decisions involving high risk, ambiguity, and significant strategic consequences

Develop a framework for decision making (e.g., identify specific decision-support methods to use in given situations)

Employ innovative methodologies when approaching complex decisions (e.g., Monte Carlo simulation, real options)

Implement revenue and cost models that reflect causal operational relationships to provide nonfinancial managers financial decision support information

THE FUTURE OF MANAGEMENT ACCOUNTING IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK STRATEGY, PLANNING & PERFORMANCE 11

11IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK STRATEGY, PLANNING & PERFORMANCE

VISIONARY

LIMITED KNOWLEDGE

BASIC KNOWLEDGE

APPLIED KNOWLEDGE SKILLED EXPERT

STRATEGIC COST MANAGEMENT Identify cost drivers, and perform cost modeling to enhance organizational decision making

Limited exposure to strategic cost management concepts

Demonstrate an understanding of basic cost concepts

Use inventory control tools within parameters to optimize stocking levels

Use capacity planning, utilization, and costing tools and techniques

Analyze costs across the value chain to support cost- effective global sourcing decisions

Trace costs to analyze and improve customer profitability

Analyze the profitability of products and services by tracing costs throughout the value chain

Incorporate life-cycle costs in product and service profitability projections

Calculate costs using various costing methodologies (e.g., standard, activity-based, throughput costing)

Conduct basic product and service costing including incremental analyses for special orders

Implement managerial costing models and processes to improve decision support beyond basic cost accounting

Recommend the appropriate costing approach to use in a given business situation

Analyze and make recommendations regarding optimal capacity utilization to support the business plan, addressing idle and excess capacity

Utilize causal activity and resource management techniques, lean and agile principles, and other value chain improvement methodologies to optimize operations

Determine optimal sourcing based on comprehensive operational and cost analysis of the value chain

Implement sophisticated cost management techniques (e.g., activity-based costing, Theory of Constraints, resource consumption accounting)

Leverage managerial costing knowledge, models, and analytics to recommend cost reduction strategies/tactics as part of a long-term strategy

Deploy causal, decision- oriented managerial costing models and strategic cost management throughout the organization’s value chain

Reconcile managerial cost calculations for decision support with cost accounting calculations for external financial reporting, and explain the differences

THE FUTURE OF MANAGEMENT ACCOUNTING IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK STRATEGY, PLANNING & PERFORMANCE 12

12IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK STRATEGY, PLANNING & PERFORMANCE

VISIONARY

LIMITED KNOWLEDGE

BASIC KNOWLEDGE

APPLIED KNOWLEDGE SKILLED EXPERT

CAPITAL INVESTMENT DECISIONS Analyze long-term investment alternatives using quantitative and qualitative techniques, and make recommendations

Limited exposure to capital investment decisions

Identify basic investment decision terms and techniques and their use in decision support (e.g., net present value, internal rate of return)

Evaluate capital investment projects using common quantitative techniques (e.g., net present value, internal rate of return)

Identify nonquantitative factors (e.g., social, safety, moral, aesthetic) that affect investment decisions

Evaluate relevant cash flows for capital budgeting decisions, and estimate future return on capital

Prepare capital expenditure plans, and determine funding requirements

Evaluate alternative scenarios using sensitivity analysis

Analyze quantitative and qualitative data for merger, acquisition, and divestiture opportunities

Develop cost-of-capital hurdle rate/weighted average cost of capital

Identify and calculate future opportunities and choices (real options)

Recommend potential new business ventures (e.g., new products, new services, new markets) based on quantitative and qualitative factors

Conduct mergers and acquisitions (M&A) analysis for complex transactions, and make recommendations to senior management and the board

THE FUTURE OF MANAGEMENT ACCOUNTING IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK STRATEGY, PLANNING & PERFORMANCE 13

13IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK STRATEGY, PLANNING & PERFORMANCE

VISIONARY

LIMITED KNOWLEDGE

BASIC KNOWLEDGE

APPLIED KNOWLEDGE SKILLED EXPERT

ENTERPRISE RISK MANAGEMENT Identify, assess, and manage risks within an organization

Limited knowledge of enterprise risk management

Demonstrate an understanding of the need for organizational risk management and its relationship to internal controls

Identify types of risk within an organization (e.g., financial, competitive, reputational)

Analyze operational risk (e.g., internal processes, people, and systems or external factors such as legal, fraud, security), and implement mitigation strategies

Analyze financial risk (e.g., interest rate, credit, foreign exchange, capital structure), and implement mitigation strategies

Manage contractual relationships, policies, and coverage for insurable risks

Assist operational managers with identifying and quantifying risks and opportunities

Implement appropriate risk management systems based on a widely recognized framework (e.g., Committee of Sponsoring Organizations of the Treadway Commission (COSO))

Recommend financial risk management strategies (e.g., portfolio diversification and hedging, options, other derivatives)

Perform an environmental scan using tools such as PEST (political, economic, societal, technology) analysis

Evaluate risk concerning the competitive landscape

Prepare risk communications required by regulatory agencies

Analyze strategic risk, including competition and reputation/brand

Develop and report metrics that provide leading/early indicators of emerging risks

Develop and recommend strategic risk mitigation and risk response strategies (e.g., to address competitive risk, technology risk)

Implement enterprise risk management with overall organizational strategic plans and governance

Lead the development of responses to high-impact and high-probability scenarios

Analyze environmental, social, and governance risks, and implement mitigation strategies

THE FUTURE OF MANAGEMENT ACCOUNTING IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK STRATEGY, PLANNING & PERFORMANCE 14

14IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK STRATEGY, PLANNING & PERFORMANCE

VISIONARY

LIMITED KNOWLEDGE

BASIC KNOWLEDGE

APPLIED KNOWLEDGE SKILLED EXPERT

BUDGETING AND FORECASTING Project financial and operational resources necessary to develop a financial plan aligned with the organization’s strategic goals

Limited exposure to budgeting and forecasting

Perform data collection or data-entry tasks in support of the budget or forecast

Demonstrate an understanding of the basics of the forecasting and budgeting process, including purpose and use

Use basic tools and techniques of forecasting, such as moving averages and extrapolation

Project short-term sales, cash flows, inventory requirements, or other financial data in support of operations within limited parameters

Analyze historical revenues and expenses to determine seasonal patterns and anticipate annual requirements

Analyze fixed and variable operational and financial relationships as part of the budgeting process

Identify and analyze the relationship between different resources and requirements of a comprehensive financial or operational forecast

Synthesize and interpret data from multiple sources

Anticipate capital requirements to support growth initiatives and optimization

Demonstrate and understand linkages between budget lines, and perform appropriate planning (e.g., if sales go up, commissions should also go up)

Validate assumptions made by departments

Develop a master budget to support the goals of a small to midsize organization or department/division of a large organization

Prepare the projected income statement, balance sheet, and cash flow statement

Evaluate capacity constraints for budgeted activity levels

Forecast in an environment of uncertainty using sensitivity analysis

Use statistical techniques such as regression, exponential smoothing, and confidence levels

Analyze and synthesize data from external sources to recognize patterns and predict customer behavior

Enhance the forecasting accuracy through the discovery of key and relevant trends by exploring large data sets using data analytics and data mining techniques

Recommend an appropriate budgeting methodology (e.g., flexible, continuous, rolling, zero-based) to use in a given business situation

Link the budgeting process to the strategic planning process

Integrate and consolidate information from multiple departments

Perform long-term analysis in periods of uncertainty using advanced statistical techniques

Lead collaborative forecasting efforts incorporating information from multiple internal and external expert sources and sophisticated modeling techniques

Communicate complex forecasts and budgets to others

Design and lead the budget and financial planning process across multiple business units in a complex organization using advanced software tools

THE FUTURE OF MANAGEMENT ACCOUNTING IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK STRATEGY, PLANNING & PERFORMANCE 15

THE FUTURE OF MANAGEMENT ACCOUNTING IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK STRATEGY, PLANNING & PERFORMANCE 1615IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK STRATEGY, PLANNING & PERFORMANCE

VISIONARY

LIMITED KNOWLEDGE

BASIC KNOWLEDGE

APPLIED KNOWLEDGE SKILLED EXPERT

CORPORATE FINANCE Manage a company’s short-term and long-term financing needs

Limited knowledge of corporate finance

Demonstrate an understanding of the concepts related to managing organizational liquidity

Demonstrate an understanding of basic financial instruments

Distinguish between short- term and long-term financing needs

Measure the performance of financial investments

Perform valuation calculations of financial instruments

Forecast cash requirements, analyze receivables quality, and perform investment of short-term cash

Calculate financial ratios related to loan covenants and liquidity levels

Evaluate and/or implement specific financing strategies (e.g., funding sources, short- term or long-term uses of surplus cash)

Analyze alternative means of raising capital (e.g., common stock, bonds, preferred stock, factoring, venture capital)

Develop and implement working capital policies (e.g., cash, accounts payable, accounts receivable, inventory management)

Ensure compliance with loan covenants

Ensure short- and long-term financing plans support and align with the strategic plan

Recommend appropriate financing in complex environments considering both traditional and nontraditional financial instruments

Maintain relationships with banks and other sources of funds (e.g., investment banks, venture capitalists)

Develop working capital policies in complex situations (e.g., multinational corporations, rolling up multiple divisions, subsidiaries)

Recommend dividend and/ or stock repurchase policies and plans

THE FUTURE OF MANAGEMENT ACCOUNTING IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK STRATEGY, PLANNING & PERFORMANCE 1716IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK STRATEGY, PLANNING & PERFORMANCE

VISIONARY

LIMITED KNOWLEDGE

BASIC KNOWLEDGE

APPLIED KNOWLEDGE SKILLED EXPERT

PERFORMANCE MANAGEMENT Design performance management systems, evaluate the success of strategic and tactical initiatives, and recommend corrective actions where appropriate

Limited exposure to performance management

Demonstrate an understanding of the purpose of performance management processes and their use in supporting the strategy (e.g., achieving goals, incentives, governance)

Perform isolated and/or simple variance analysis

Calculate traditional performance measures in alignment with organizational strategy

Calculate transfer prices under existing methodology

Perform a comprehensive variance analysis, and interpret drivers of performance variances

Analyze the impact of transfer pricing on business unit performance beyond tax consequences

Develop and implement a performance measurement process aligned with the overall strategic goal-setting process

Optimize performance management and financial reporting processes to provide useful and timely management information (e.g., use of key performance indicators (KPIs), balanced scorecards, dashboards)

Assess the robustness, reliability, and rigor of performance measurement systems

Transform variance analysis into actionable insights

Develop transfer-pricing strategy to optimize organizational performance

Define and communicate an effective performance management system in a complex environment (e.g., public, global, multientities, complicated corporate structures)

Ensure that performance measurement processes, compensation programs, and systems are closely aligned with the organization’s value- creation model and support the board’s decision-making role

Utilize insights gained from performance management system to effect organizational change

IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK 18

IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK

REPORTING & CONTROL The competencies required to measure and report an organization’s performance in compliance with relevant standards and regulations.

THE FUTURE OF MANAGEMENT ACCOUNTING IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK REPORTING & CONTROL 1918IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK REPORTING & CONTROL

STEWARD

LIMITED KNOWLEDGE

BASIC KNOWLEDGE

APPLIED KNOWLEDGE SKILLED EXPERT

INTERNAL CONTROL Implement procedures and processes that ensure data security, protect an organization’s assets, and meet legal and reporting requirements

Demonstrate an understanding of the purpose of internal controls for use in financial reporting, compliance, and operations

Identify basic internal controls (e.g., segregation of duties, physical controls, audit trails, limits of authorization)

Limited knowledge of internal control processes

Verify accuracy of general ledger and subledgers through various accounting procedures and controls

Implement and/or test a system of internal controls under management direction

Ensure compliance with applicable policies and procedures, including those mandated by the Sarbanes-Oxley Act of 2002

Prepare internal audit reports (i.e., compliance, operational, financial)

Perform internal control risk assessment using frameworks such as the Committee of Sponsoring Organizations of the Treadway Commission (COSO)

Design an effective internal control system, including technology controls, that is responsive to the specific risks of the organization

Develop processes to monitor the effectiveness of risk management and internal controls processes, and remediate as necessary

Develop an internal audit plan for the organization

Provide assurance to management and other stakeholders regarding internal controls (e.g., Sarbanes-Oxley Act compliance) over financial reporting and nonfinancial reporting

Design and implement internal controls in complex environments (e.g., public, global, multientities, complicated corporate structures)

Integrate internal controls with the enterprise risk management system

THE FUTURE OF MANAGEMENT ACCOUNTING IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK REPORTING & CONTROL 2019IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK REPORTING & CONTROL

STEWARD

LIMITED KNOWLEDGE

BASIC KNOWLEDGE

APPLIED KNOWLEDGE SKILLED EXPERT

FINANCIAL RECORDKEEPING Leverage financial accounting skills to record and analyze financial transactions and balances

Understanding limited to a specific function (e.g., accounts receivable, accounts payable, payroll transactions)

Perform transactional/ operational accounting functions, including journal entries, accruals, and reversals

Perform account reconciliations, and prepare schedules to support the preparation and/or audit of financial statements

Analyze special accounts (e.g., deferred tax asset/ liability), and prepare related journal entries

Manage fulfillment of internal and external audit requirements including checklists and schedules

Evaluate efficiency and effectiveness of accounting processes, and make recommendations to optimize them

Analyze complex financial transactions, and ensure they are recorded properly in accordance with accounting standards

Analyze proposed transactions to determine the potential impact on financial statements

Design appropriate recordkeeping procedures in complex situations (e.g., derivatives, hedging)

Design appropriate recordkeeping procedures for multinational organizations, including consolidations across segments and industries

THE FUTURE OF MANAGEMENT ACCOUNTING IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK REPORTING & CONTROL 2120IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK REPORTING & CONTROL

STEWARD

LIMITED KNOWLEDGE

BASIC KNOWLEDGE

APPLIED KNOWLEDGE SKILLED EXPERT

COST ACCOUNTING Support external financial reporting by compiling and analyzing costs incurred by an organization

Limited exposure to costing concepts and methods

Identify basic cost classifications (e.g., fixed, variable, direct, indirect) and their use for financial reporting and inventory valuation

Calculate basic product/ service costs

Coordinate cost collection efforts

Calculate costs using an efficient methodology and practice for your industry in accordance with accounting standards

Prepare cost reports and variance analysis for management

Demonstrate an understanding of the difference between absorption costing and variable costing

Calculate joint product costs and by-product costs

Implement cost accounting processes and systems appropriate for your industry’s financial reporting

Recommend the appropriate cost accounting approach to use for a business’s external financial reporting requirements

Analyze the projected impact on financial statements of major business decisions affected by costing methodologies

Reconcile managerial cost calculations for decision support with cost accounting calculations for external financial reporting, and explain the differences

THE FUTURE OF MANAGEMENT ACCOUNTING IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK REPORTING & CONTROL 2221IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK REPORTING & CONTROL

STEWARD

LIMITED KNOWLEDGE

BASIC KNOWLEDGE

APPLIED KNOWLEDGE SKILLED EXPERT

FINANCIAL STATEMENT PREPARATION Leverage financial accounting skills needed to prepare financial statements for internal and external stakeholders

Limited exposure to financial statement preparation

Identify basic financial statements, their purpose, and their elements

Understand basic U.S. Generally Accepted Accounting Principles (GAAP), International Financial Reporting Standards (IFRS), and/or country-specific reporting frameworks

Apply knowledge of more advanced financial accounting standards (e.g., leases, pensions, deferred taxes)

Research, recommend, and apply appropriate accounting treatments

Prepare basic financial statements for both internal and external stakeholders

Prepare a comprehensive set of footnotes

Analyze the impact of changing accounting standards on the financial statements

Prepare Management Discussion & Analysis (MD&A) for a public company or a similar report for a private company

Ensure compliance with all applicable regulatory requirements regarding financial reporting

Implement efficiencies to continuously improve the quality and speed of the financial close process

Prepare complex financial statements

Reconcile financial statements prepared using various reporting standards (e.g., IFRS and U.S. GAAP)

Prepare applicable quarterly and annual regulatory filings

THE FUTURE OF MANAGEMENT ACCOUNTING IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK REPORTING & CONTROL 2322IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK REPORTING & CONTROL

STEWARD

LIMITED KNOWLEDGE

BASIC KNOWLEDGE

APPLIED KNOWLEDGE SKILLED EXPERT

FINANCIAL STATEMENT ANALYSIS Analyze a company’s financial statements to assess performance

Limited exposure beyond understanding basic financial statements

Demonstrate an understanding of the interrelationship among basic financial statements

Calculate financial ratios

Analyze financial statements and financial data to guide decision making

Interpret the meaning of financial ratios

Analyze the impact of changes in reporting standards or accounting methods on financial statements

Analyze loan covenants, and report on compliance

Perform comparisons of two entities or an entity to industry average using common-size financial statements

Perform trend analysis by comparing performance over time

Design a system of financial ratios and other performance indicators appropriate for a specific financial situation

Analyze the impact of foreign operations on reported financial results, including foreign exchange transactions

Analyze the potential impact of macroeconomic, social, political, and environmental factors on the organization’s financial results

Coordinate and integrate a comparison of financial statement ratios across the organization

Perform and interpret business unit and intercompany trend analysis

Analyze the impact on financial ratios from complex financial transactions (e.g., mergers and acquisitions (M&A), divestitures)

Analyze the financial statements of competitors, customers, and suppliers, and interpret trends to provide input to the planning and forecasting processes

THE FUTURE OF MANAGEMENT ACCOUNTING IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK REPORTING & CONTROL 2423IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK REPORTING & CONTROL

STEWARD

LIMITED KNOWLEDGE

BASIC KNOWLEDGE

APPLIED KNOWLEDGE SKILLED EXPERT

TAX COMPLIANCE AND PLANNING Implement procedures and processes to ensure accurate and timely tax filings and effective tax strategies

Limited exposure to tax compliance and planning

Demonstrate an understanding of business taxation general concepts and rules

Demonstrate an understanding of book vs. tax differences in financial statements

Gather data and provide input to tax returns, and understand the relationship of various tax schedules to each other

Ensure the recordkeeping system supports tax reporting and reflects the tax environment of the organization

Prepare accurate and timely tax filings

Analyze the tax impact of alternative business decisions

Provide tax advice for business decisions

Manage fulfillment of government tax auditors’ information requests

Research and advise on international tax issues

Develop and implement appropriate policies and procedures to ensure tax efficiency and compliance

Manage taxation responsibilities in multiple jurisdictions and multiple industries

Formulate tax strategy for multinational corporations

Evaluate the risk and impact of changes in tax laws, and recommend mitigation strategies

Use effective tax strategies to improve cash flows

Lead tax strategy and planning for a complex organization

Work with tax authorities within country-specific regulatory frameworks to finalize tax liability in complex situations

THE FUTURE OF MANAGEMENT ACCOUNTING IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK REPORTING & CONTROL 2524IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK REPORTING & CONTROL

STEWARD

LIMITED KNOWLEDGE

BASIC KNOWLEDGE

APPLIED KNOWLEDGE SKILLED EXPERT

INTEGRATED REPORTING Report organizational value created over time for stakeholders and society, including financial and nonfinancial information

Limited exposure to integrated reporting

Demonstrate an understanding of the elements of sustainability reporting

Compile and summarize data to measure various forms of capital—for example, financial, manufactured, intellectual, human, social and relationship, and natural

Prepare reports to providers of financial capital, regulators, and other stakeholders in response to their multicapital information needs

Demonstrate a systems approach to integrated reporting, and identify barriers

Design systems to efficiently collect information on relevant capitals over time

Develop a balanced set of leading and lagging performance metrics based on the different forms of capital and other value-relevant frameworks

Design reports to present the value the organization creates, recognizing different perspectives and incorporating material financial and nonfinancial sustainability measures

Assess and report on the relationship among the different capitals

Ensure integrated reports are prepared in accordance with suitable criteria, including relevance, completeness, reliability, neutrality, and understandability

Develop and communicate an integrated strategy for the organization around the different forms of capital

Lead through integrated thinking the development of future-oriented reports to benefit all stakeholders, including employees, customers, suppliers, business partners, communities, governmental bodies, regulators, and policy makers

IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK 26

IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK

TECHNOLOGY & ANALYTICS

The competencies required to manage technology and analyze data to enhance organizational success.

26IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK TECHNOLOGY & ANALYTICS

CATALYST

LIMITED KNOWLEDGE

BASIC KNOWLEDGE

APPLIED KNOWLEDGE SKILLED EXPERT

INFORMATION SYSTEMS Use technology to effectively support operational and financial processes, solve problems, analyze data, and enhance business performance

Minimal exposure to data and information systems beyond data input

Demonstrate an understanding of processes related to a single module in a financial system (e.g., accounts payable module in an enterprise resource planning (ERP) system)

Demonstrate competence in using basic hardware and software tools

Identify different types of data (e.g., structured, unstructured, numeric, text, sensor)

Prepare basic business process flowcharts (e.g., inventory control) with information gained from relevant stakeholders

Demonstrate an understanding of the potential applications of emerging technologies (e.g., cloud computing, blockchain, robotic process automation, artificial intelligence)

Manage the general ledger (GL) module (e.g., chart of accounts, journal entries, trial balance)

Control and manage how and when data enters the financial systems from other modules

Work closely with the Information Technology department to implement solutions to business issues and leverage opportunities

Document business requirements for information system design

Demonstrate an understanding of elements in relational databases

Utilize relational database concepts, including primary and secondary keys, when designing reports

Design relational database tables

Design ERP workflows, multi- level charts of accounts, and system integration for sound financial control Manage implementation of emerging technologies to improve financial processes

Use and train others in how to use multiple modules within an enterprise-wide system (e.g., material requirements planning (MRP), purchasing, warehouse management, customer relationship management (CRM))

Identify data sources, and define acceptance tests for integration of information into performance management systems

Recognize and address the cascading impact of changes in an integrated systems environment

Automate data collection, validation, and reporting using software tools Design and implement new data models as the business and environment evolve

Identify data flow weaknesses, and recommend potential improvements

Design systems structure to optimize operational and financial performance

Evaluate, recommend, and implement the appropriate ERP system in a complex environment

Design data marts and data warehouses to provide access to information throughout an organization

THE FUTURE OF MANAGEMENT ACCOUNTING IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK TECHNOLOGY & ANALYTICS 27

27IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK TECHNOLOGY & ANALYTICS

CATALYST

LIMITED KNOWLEDGE

BASIC KNOWLEDGE

APPLIED KNOWLEDGE SKILLED EXPERT

DATA GOVERNANCE Ensure the availability, utility, integrity, and security of data

Limited knowledge of data governance

Limited knowledge of the life cycle of data (creation, retention, storage, obsolescence, deletion)

Exercise sound data stewardship by complying with all data policies and documenting procedures followed

Comply with data retention, archival, and disposal policies as part of the data life-cycle process

Demonstrate an under- standing of the business and reputational impact of making decisions with incorrect, poor-quality, invalid, and/or incomplete data

Demonstrate an understanding of the need to protect the security and privacy of stakeholder data

Demonstrate an understanding of the basic principles of data security

Communicate potential data errors and weaknesses in procedures

Implement controls such as penetration and vulnerability testing to detect and thwart cyberattacks

Implement an effective financial systems environment to support internal controls

Demonstrate an understanding of data governance frameworks such as the Committee of Sponsoring Organizations of the Treadway Commission (COSO) and Control Objectives for Information and Related Technologies (COBIT)

Implement processes to protect the privacy of stakeholder data

Implement sound data retention, archival, and disposal policies

Identify and correct incomplete or inaccurate data

Improve processes for preventing and correcting issues with data

Balance risk and materiality when determining the level of security

Evaluate costs and benefits when recommending strategies for data management

Use data process validation and security tests such as unit testing, penetration testing, and acceptance testing criteria

Develop early warning systems and other risk mitigation data strategies

Manage the flow of data throughout its life cycle (e.g., risk of stale data or incomplete emerging data) Participate as part of a cross- functional team to evaluate available technologies and platforms to meet business needs

Design and implement data governance systems in accordance with established frameworks such as COSO and COBIT

Design governance implementation processes, including the creation of appropriate unit, integration, penetration, and acceptance testing criteria

Set policies for data retention and storage processes in accordance with legal requirements

Automate data cleansing processes

THE FUTURE OF MANAGEMENT ACCOUNTING IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK TECHNOLOGY & ANALYTICS 28

THE FUTURE OF MANAGEMENT ACCOUNTING IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK TECHNOLOGY & ANALYTICS 2928IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK TECHNOLOGY & ANALYTICS

CATALYST

LIMITED KNOWLEDGE

BASIC KNOWLEDGE

APPLIED KNOWLEDGE SKILLED EXPERT

DATA ANALYTICS Extract, transform, and analyze data to gain insights, improve predictions, and support decision making

Limited knowledge of data analytics

Create spreadsheets and manipulate data using basic functions and formulas such as graphs, filtering and sorting data, and importing data

Calculate basic descriptive statistics such as ratios and basic averages to reveal trends

Demonstrate an understanding of the importance of using data to make business decisions

Demonstrate an understanding of business intelligence and data mining

Extract, transform, and query data using appropriate tools such as Structured Query Language (SQL)

Interpret information needs and translate into actionable requests for data analysis

Use descriptive analytics to evaluate efficiency and effectiveness of business initiatives

Use simple linear regression to predict business outcomes and interpret results

Determine and report cause and effect using diagnostic techniques

Perform ad hoc exploratory data analysis using query languages

Utilize specialized reporting tools (e.g., eXtensible Business Reporting Language (XBRL)), and interpret results

Design organizational templates for use by others

Mine large data sets to reveal patterns and provide insights

Use predictive analytics techniques to interpret results, draw insights, and make recommendations

Apply statistics to a data set using specialized statistical software and/or business intelligence software

Use multiple regression for predictive and prescriptive purposes, and interpret results

Transform raw, unstructured data into a form more appropriate for analysis (e.g., data wrangling)

Implement solutions using multiple query, scripted, or interpreted languages (e.g., SQL, Python, R)

Build prescriptive models to optimize organizational performance (e.g., goal seeking)

Use advanced statistical tools for exploratory data analysis to reveal patterns and discover insights to achieve business outcomes (e.g., cluster analysis, time-series analysis, Monte Carlo analysis)

THE FUTURE OF MANAGEMENT ACCOUNTING IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK TECHNOLOGY & ANALYTICS 3029IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK TECHNOLOGY & ANALYTICS

CATALYST

LIMITED KNOWLEDGE

BASIC KNOWLEDGE

APPLIED KNOWLEDGE SKILLED EXPERT

DATA VISUALIZATION Present data visually to better explain key patterns, trends, and correlations

Limited knowledge of data visualization

Create simple charts and graphs using visualization tools (e.g., Excel, Tableau) or prebuilt visualization code packages

Demonstrate an understanding of how to best communicate results with basic visualizations (e.g., line, bar, pie, scatter plots)

Utilize table and graph design best practices to avoid distortion in the communication of complex information

Demonstrate an understanding of how to best communicate results with intermediate visualizations (e.g., histograms, area charts, heat maps)

Evaluate data visualization options, and select the best presentation approach for the intended audience

Demonstrate an understanding of how to best communicate results with advanced visualizations (e.g., Sankey plots, bubble charts, network diagrams)

Accelerate decision making using visualization tools and/or code packages to construct multivisual dashboards combining relevant visualizations

Utilize simplicity of design techniques to present results of complex data analysis in an understandable manner

Utilize advanced features of visualization applications

Interpret and communicate complex analyses to stakeholders using advanced data visualization techniques at an audience-appropriate level

Construct custom visualizations using JavaScript—either in website or with business intelligence platforms

Demonstrate expertise in all three aspects of data visualization: substantive, statistical, and artistic

IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK 31

IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK

BUSINESS ACUMEN & OPERATIONS

The competencies required to contribute as a cross-functional business partner to transform company-wide operations.

31IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK BUSINESS ACUMEN & OPERATIONS

PARTNER

LIMITED KNOWLEDGE

BASIC KNOWLEDGE

APPLIED KNOWLEDGE SKILLED EXPERT

INDUSTRY-SPECIFIC KNOWLEDGE Understand and master dynamics and drivers of business success in a specific industry

Limited knowledge of the industry in which the company operates

Demonstrate an understanding of the industry based on limited work experience or exposure to reports in the business media

Evaluate the supply chain, and identify risks related to specific vendors and customers

Keep pace with industry developments proactively

Monitor the activities of competitors

Identify sources of competitive intelligence

Perform a financial ratio analysis of competitors

Prepare the discussion of risk for external reporting (e.g., the Management Discussion and Analysis (MD&A) section in the annual report)

Analyze the annual reports of customers, competitors, and suppliers

Analyze the industry competitive structure, including the level of competitive rivalry

Master industry-specific accounting and tax requirements

Serve as an expert on the specific industry, including value chain, competitive issues, regulatory matters, and customer perspectives

Serve as an expert speaker and/or advisor on industry matters

Formulate ways to increase competitive advantage and/or identify new sources of value creation

Lead an organization’s competitive analysis team

Evaluate an organization’s strategic risk (i.e., determining if the strategy is aligned with market and industry conditions)

THE FUTURE OF MANAGEMENT ACCOUNTING IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK BUSINESS ACUMEN & OPERATIONS 32

THE FUTURE OF MANAGEMENT ACCOUNTING IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK BUSINESS ACUMEN & OPERATIONS 3332IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK BUSINESS ACUMEN & OPERATIONS

PARTNER

LIMITED KNOWLEDGE

BASIC KNOWLEDGE

APPLIED KNOWLEDGE SKILLED EXPERT

OPERATIONAL KNOWLEDGE Serve as a valuable business partner to operational units outside the accounting/finance department

Limited exposure to business operations beyond the accounting/finance department

Demonstrate an understanding of the flow of information and materials through the organization

Work closely with other functions including Procurement, Materials Management, Production, Research, Marketing, Information Technology, Human Resources, Legal, Facilities, Customer Service, and across business units

Participate in the formulation of solutions to operational issues beyond the finance department

Work on cross-functional teams as a business partner to implement multidepartment change

Demonstrate operational knowledge through job rotation and/or participation in cross-functional projects

Serve as an expert leading manufacturing, production, distribution, or service delivery as a result of experience gained through job rotations or previous career positions

Develop creative solutions to optimize performance across the value chain

Serve as a business partner recognized by other teams and business areas as having operational expertise

THE FUTURE OF MANAGEMENT ACCOUNTING IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK BUSINESS ACUMEN & OPERATIONS 3433IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK BUSINESS ACUMEN & OPERATIONS

PARTNER

LIMITED KNOWLEDGE

BASIC KNOWLEDGE

APPLIED KNOWLEDGE SKILLED EXPERT

QUALITY MANAGEMENT AND CONTINUOUS IMPROVEMENT Use quality management and continuous improvement tools and techniques effectively

Limited exposure to quality management and/or continuous improvement approaches

Recognize quality improvement tools (e.g., process mapping, Kaizen, fishbone diagrams)

Perform trend analysis of quality measures

Demonstrate an understanding of quality improvement approaches (e.g., lean, Six Sigma, total quality management (TQM))

Calculate the cost of quality and expected savings from improvement efforts

Use quality management tools and approaches to improve the accounting/finance operation

Represent finance/accounting on operational quality improvement teams

Lead cross-functional and departmental quality improvement efforts

Use quality management tools and approaches to improve cross-functional operations

Master one or more quality management methodologies such as Six Sigma

Use quality management tools and approaches to optimize the operations of partners in the supply chain

Serve as an expert and champion/sponsor of multiple, complex quality management initiatives

Lead value stream mapping and analysis to optimize operations

THE FUTURE OF MANAGEMENT ACCOUNTING IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK BUSINESS ACUMEN & OPERATIONS 3534IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK BUSINESS ACUMEN & OPERATIONS

PARTNER

LIMITED KNOWLEDGE

BASIC KNOWLEDGE

APPLIED KNOWLEDGE SKILLED EXPERT

PROJECT MANAGEMENT Plan and organize resources, both people and financial, in order to complete a major undertaking or event

Limited exposure to formal project management tools

Demonstrate an understanding of basic project management tools (e.g., timelines, checklists, milestones)

Participate on teams using project management tools (e.g., Gantt Charts and critical paths) and approaches (e.g., Waterfall, Agile, Scrum)

Lead projects using project management tools, including scheduling of resources

Champion/sponsor multiple simultaneous projects that have significant budgets using project management tools

Instill a culture of project management professionalism that guides the organization with formalized approaches

IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK 36

IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK

LEADERSHIP The competencies required to collaborate with others and inspire teams to achieve organizational goals.

THE FUTURE OF MANAGEMENT ACCOUNTING IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK LEADERSHIP 3736IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK LEADERSHIP

CHAMPION

LIMITED KNOWLEDGE

BASIC KNOWLEDGE

APPLIED KNOWLEDGE SKILLED EXPERT

COMMUNICATION SKILLS Listen effectively to others, and convey thoughts or ideas through various forms of communication including written, spoken, and nonverbal

Limited knowledge, skills, and/or experience communicating in a professional setting

Organize and present thoughts, information, and facts logically

Understand verbal and nonverbal cues and their importance

Prepare clear and concise written communications

Listen effectively, ask questions, and express concerns

Tailor communications to culturally diverse audiences

Recognize differences in others’ communication styles, and adjust own as appropriate

Communicate both positive and negative results effectively with sensitivity to the listener

Make effective presentations (i.e., engaging, motivating, concise, well-prepared)

Use technology (e.g., social media) tools effectively as a communication vehicle, taking into consideration recipients’ preferences

Design communication programs, taking into consideration global diversity and local customs and norms

Develop communication strategies to optimize messaging through tools, tone, and timing

Answer difficult questions from key stakeholders (e.g., staff, board members, auditors, investment analysts, the media) effectively, providing persuasive and credible responses

Coach others on how to communicate effectively and build consensus

Excel at the use of technology tools to expand leadership presence

THE FUTURE OF MANAGEMENT ACCOUNTING IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK LEADERSHIP 3837IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK LEADERSHIP

CHAMPION

LIMITED KNOWLEDGE

BASIC KNOWLEDGE

APPLIED KNOWLEDGE SKILLED EXPERT

MOTIVATING AND INSPIRING OTHERS Influence, motivate, and gain support of others in order to achieve organizational goals through the use of emotional intelligence, accountability, and setting the “tone at the top”

Limited knowledge, skills, and/or experience with motivating and inspiring others

Recognize the importance of motivation

Identify strengths and areas for growth of team members

Recognize differences in personality style and preferences when motivating team members

Provide effective advice and feedback to enable individual contributors to achieve goals and improve performance

Consider the impact of emotions on communication and interactions with others

Demonstrate the importance of continuously expanding professional knowledge, skills, and abilities for self and team in order to grow expertise and add value to the organization

Identify and adopt appropriate leadership style for a given situation

Provide positive feedback to staff as appropriate, and communicate recognition to the team and others

Build effective teams, and implement innovative ways to motivate team members

Anticipate emotional reactions, and respond effectively in guiding and leading others

Inspire others to perform to their full potential and exceed expectations

Motivate teams across the organization to overcome challenging situations

Coach others on how to motivate individuals/teams effectively

Lead managers to inspire and motivate their teams

Lead by example, especially in difficult times

THE FUTURE OF MANAGEMENT ACCOUNTING IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK LEADERSHIP 3938IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK LEADERSHIP

CHAMPION

LIMITED KNOWLEDGE

BASIC KNOWLEDGE

APPLIED KNOWLEDGE SKILLED EXPERT

COLLABORATION, TEAMWORK, AND RELATIONSHIP MANAGEMENT Work effectively with others in order to achieve a trusting relationship that yields positive results

Limited knowledge, skills, and/or experience with collaboration and teamwork

Communicate with team members in a respectful and consistent manner

Contribute to team achievements by taking responsibility for own efforts and seeking input/assistance when needed

Work across departmental boundaries, and contribute beyond individual responsibilities to achieve team goals

Listen proactively to others, encourage collaboration, and help build consensus among team members

Give credit to members of the team for their contributions

Collaborate with partners in the value chain to achieve beneficial working relationships and positive outcomes

Provide constructive feedback and assistance to others in addressing issues or conflicts

Seize opportunities to team with others to achieve positive results

Encourage an integrated approach to performance management, and discourage functional silos

Collaborate on innovative products, services, and/or processes that will help the organization succeed

Consider the importance of corporate culture when assessing opportunities to enter into partnerships with other organizations

Serve as a role model in thinking outside the silo/ business area to identify opportunities for innovation

THE FUTURE OF MANAGEMENT ACCOUNTING IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK LEADERSHIP 4039IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK LEADERSHIP

CHAMPION

LIMITED KNOWLEDGE

BASIC KNOWLEDGE

APPLIED KNOWLEDGE SKILLED EXPERT

CHANGE MANAGEMENT Lead an organization, team, or individuals through transition toward a desired vision or goal

Limited knowledge, skills, and/or experience with change management

Understand the importance of change as a critical element of continuous improvement

Seek to understand change and to accept implementation

Participate in change initiatives, and encourage acceptance of change by coaching with empathy and patience

Develop plans to support change initiatives effectively with an appropriate degree of urgency

Communicate reasons for change and associated plans to make the change

Collaborate with other leaders in evaluating and executing change initiatives

Encourage continuous improvement, and coach staff on how to maximize resulting benefits

Identify barriers or resistance to change initiatives, seek ways to overcome them, and gain commitment

Champion change by leading the organization through a major transition to achieve strategic goals

Promote the vision for change, and lead major organizational change efforts effectively

Create an organizational culture that seeks innovation and embraces change

Make innovation a clear priority, and communicate that every function has the opportunity and ability to contribute to this goal

THE FUTURE OF MANAGEMENT ACCOUNTING IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK LEADERSHIP 4140IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK LEADERSHIP

CHAMPION

LIMITED KNOWLEDGE

BASIC KNOWLEDGE

APPLIED KNOWLEDGE SKILLED EXPERT

CONFLICT MANAGEMENT Resolve issues using appropriate influencing skills and tools to achieve successful business goals and arrive at the best organizational outcomes

Limited knowledge, skills, and/or experience with conflict management

Understand that conflict is inevitable and that avoidance is not a solution

Address conflict in a timely manner, and seek appropriate solutions

Anticipate others’ reactions, and consider others’ viewpoints to promote mutual understanding

Analyze the causes and components of conflict, including stakeholder viewpoints, competing priorities, and limited resources

Raise issues to appropriate management when resolution is not achieved

Deal effectively with difficult situations by asking clarifying questions, exploring solutions, and establishing boundaries for all parties

Intervene to defuse tension with tactful and assertive approaches

Engage in respectful debate regarding issues of importance

Develop and disseminate techniques and tools to guide conflict resolution

Engage effectively in crucial and difficult conversations

Encourage passionate debate about issues and ideas to move the organization forward

Create a culture where constructive conflict leads to continuous improvement

41IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK LEADERSHIP

CHAMPION

LIMITED KNOWLEDGE

BASIC KNOWLEDGE

APPLIED KNOWLEDGE SKILLED EXPERT

NEGOTIATION Reach agreement between two or more parties to achieve the best outcome for the organization and an acceptable solution to negotiating parties

Limited knowledge, skills, and/or experience with negotiation

Recognize the importance of positive business relationships in successful negotiations

Present a clear and concise point of view using relevant data

Anticipate probable points of disagreement to be negotiated

Follow a defined process for negotiations, ensuring that risks are identified and mitigated and that corporate goals are achieved

Utilize a tactful and creative approach to solving problems, and reach consensus where all parties feel a win was achieved

Understand the impact of diversity and cultural differences on negotiations

Document contractual terms and decisions about roles and responsibilities to promote lasting agreement and positive outcomes

Achieve timely and positive results through negotiation skills

Serve as a successful go-to negotiator or arbitrator

Gain consensus consistently from all parties in order to achieve win-win organizational solutions

Demonstrate sensitivity to the impact of global political and economic issues on cross- border negotiations

THE FUTURE OF MANAGEMENT ACCOUNTING IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK LEADERSHIP 42

42IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK LEADERSHIP

CHAMPION

LIMITED KNOWLEDGE

BASIC KNOWLEDGE

APPLIED KNOWLEDGE SKILLED EXPERT

TALENT MANAGEMENT Select, develop, retain, and reward people to ensure a strong workforce and successful business performance

Limited knowledge, skills, and/or experience with performance and talent management

Recognize the desired levels of performance for self and team

Understand the importance of team dynamics, approaches, and output

Understand the importance of talent selection and ongoing performance management for organization success

Interview and select team members effectively, aligning skills with responsibilities and assignments

Delegate responsibility, promote independence, and solicit feedback from the team

Recognize excellent team performance, and reward positive results

Prepare annual performance appraisals, and use relevant and specific examples to ensure feedback is meaningful to employees regarding goals and performance

Recommend professional development resources for career advancement and closing skills gaps

Develop effective staff recruitment and retention practices

Develop key performance indicators (KPIs) that align with overall business objectives

Create a trusting environment for team members to ask questions and offer ideas freely

Coach and develop staff on achieving performance goals

Engage in career path discussions and succession planning for the team

Hold managers accountable for the performance of their teams

Promote talent management and the importance of diversity across the organization

Establish succession plans for key roles in the organization

Promote a culture of performance by communicating a clear vision and shared values

Inspire others by demonstrating the importance of teaming to achieve successful business results

Develop performance reward/ incentive systems to drive behavior aligned with the organization’s strategic initiatives

THE FUTURE OF MANAGEMENT ACCOUNTING IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK LEADERSHIP 43

IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK 44

IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK

PROFESSIONAL ETHICS & VALUES

The competencies required to demonstrate the professional values, ethical behavior, and legal compliance essential to a sustainable business model.

44IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK PROFESSIONAL ETHICS & VALUES

GUIDE

LIMITED KNOWLEDGE

BASIC KNOWLEDGE

APPLIED KNOWLEDGE SKILLED EXPERT

PROFESSIONAL ETHICAL BEHAVIOR Comply with a set of guiding principles that govern a person’s behavior in the workplace

Recognize that professional standards and organizational policies exist

Act in an ethical manner in accordance with societal norms, values, and laws

Demonstrate an understanding of the need for professional ethics in business situations (e.g., confidentiality, competence, integrity, credibility)

Act in accordance with the standards and principles outlined in the IMA Statement of Ethical Professional Practice or other relevant standards

Recognize potential ethical conflicts in one’s responsibilities based on organizational and/or professional guidelines

Recognize the importance of an organization’s core values and how they promote ethical behavior

Foster a culture of ethical behavior and accountability within the organization

Design, implement, and strive to continuously improve a company-wide ethics program

Advise and train others on how the organization’s ethics code applies to questionable situations they may encounter

Lead in establishing and maintaining the appropriate ethical tone throughout the organization

Provide expertise and serve as a role model regarding complex ethical conflicts faced by organizations

Foster an ethical supply chain by establishing and enforcing relevant organizational policies and ethical standards

THE FUTURE OF MANAGEMENT ACCOUNTING IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK PROFESSIONAL ETHICS & VALUES 45

45IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK PROFESSIONAL ETHICS & VALUES

GUIDE

LIMITED KNOWLEDGE

BASIC KNOWLEDGE

APPLIED KNOWLEDGE SKILLED EXPERT

RECOGNIZING AND RESOLVING UNETHICAL BEHAVIOR Identify ethical conflicts and lapses in the workplace, and take appropriate action

Be aware of the potential existence of unethical behavior or fraudulent activity in the workplace

Understand the importance of trustworthy behavior

Recognize ethical conflicts such as conflicts of interest or situations susceptible to fraud

Follow appropriate reporting protocols when unethical behavior is suspected

Help identify and resolve business situations that include ethical dilemmas (e.g., sales targets, incentive compensation, travel and entertainment expenses)

Apply critical thinking, an objective mind-set, and professional skepticism in business situations

Recognize differences in cultural norms that could interfere with ethical decision making

Apply organizational policies and the IMA Statement of Ethical Professional Practice to potential ethical conflicts

Train others in the organization’s ethics policy, the concepts of the fraud triangle, the IMA Statement of Ethical Professional Practice, and/or other ethical constructs

Apply professional judgment, knowledge of strategies, and best practices to resolve complex ethical conflicts

Recognize “red flags” and risks in complex situations that may indicate purposeful misrepresentation

Assist others to resolve ethical conflicts

Apply internal control expertise to design procedures that reduce the likelihood of fraud and ethical conflicts

Design an ethics and compliance program that includes training, supply chain communication, and vendor/ customer qualifications

Be recognized as an ethics thought leader promoting the management accounting profession and values

Champion the spirit of ethical behavior within the organization and across the supply chain

THE FUTURE OF MANAGEMENT ACCOUNTING IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK PROFESSIONAL ETHICS & VALUES 46

46IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK PROFESSIONAL ETHICS & VALUES

GUIDE

LIMITED KNOWLEDGE

BASIC KNOWLEDGE

APPLIED KNOWLEDGE SKILLED EXPERT

LEGAL AND REGULATORY REQUIREMENTS Execute the organization’s strategy with integrity, complying with the law, regulations, and standards

Comply with the organization’s legal and regulatory environment

Understand the necessity for legal requirements and the linkage to protecting the public interest

Provide guidance to staff on identifying legal and regulatory conflicts

Manage compliance with employment, safety, and other business regulations in the spirit and the letter of the law

Manage compliance with industry-specific laws, regulations, and reporting requirements

Design and implement programs, policies, and procedures to ensure compliance with laws and regulations

When laws and/or regulations conflict or are unclear, make ethical decisions consistent with fiduciary responsibilities

Lead compliance efforts with complex and sometimes contradictory business regulations in the spirit of protecting the public interest (e.g., tax codes, U.K. Bribery Act, U.S. Foreign Corrupt Practices Act, E.U. General Data Protection Regulation, anti- money laundering/combating terrorist financing regulations)

THE FUTURE OF MANAGEMENT ACCOUNTING IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK PROFESSIONAL ETHICS & VALUES 47

Conclusion The business world is rapidly changing, with new technologies changing the skills needed by

accounting and finance professionals for career success. Management accountants will need

new and enhanced competencies in areas ranging from technology and analytics, to strategic

management, business acumen, and professional values and ethics.

The Competency Framework contained in this SMA is based on a job analysis conducted

by ICMA® (Institute of Certified Management Accountants) and validated by subject matter

experts. It forms the basis for the content of the CMA exam. It covers the competencies in

six domains needed by today’s management accountant: Strategy, Planning & Performance,

Reporting & Control, Technology & Analytics, Business Acumen & Operations, Leadership,

and Professional Ethics & Values. Each skill area comprises specific knowledge and skills,

which are organized by increasing levels from “limited knowledge” up to “expert.”

Management accountants can use this framework as a guide to keep their skill sets

relevant for today’s business environment. Providing the foundation for IMA’s CareerDriver®

Assessment Tool, it provides a pathway for finance and accounting professionals looking to

advance their careers as well as serving as a valuable tool for employers looking to enhance

the capabilities of their finance and accounting teams.

THE FUTURE OF MANAGEMENT ACCOUNTING IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK 48