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It is Not What You Know, It is How You Share It
Mike JEANS
Past President, Chartered Institute of Management
Accountants Independent Management
Consultant, Quagon Consulting United Kingdom
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It's not what you know, it's how you share
it...

• Mike Jeans
• World Congress of Accountants
• Hong Kong 2002

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DRIVERS OF CHANGE

• Main micro-drivers of change and their
  effects
• globalisation
• advances in ICT
• transformation to a knowledge economy
• dynamics of change
• demand for accountability (FMAC)
• Interconnected factors

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AGES OF THE ORGANISATION
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KNOWLEDGE MANAGEMENT

• The term coined by Peter Drucker in 1960s
• Knowledge as a key resource in todays economy
• Knowledge workers are the new capitalists they
  own the means of production their knowledge
• Capitalists in the traditional sense becoming
  majority stakeholders through their stake in
  pension and mutual funds

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DEFINITION

• Knowledge Management involves efficiently
  connecting those who know with those who need to
  know, thus converting personal knowledge into
  organisational knowledge

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WHAT KNOWLEDGE MANAGEMENT ISNT

• Devalued through overuse?
• A consultant-driven fad?
• Not an end in itself -- cant be implemented in a
  one-off initiative or by purchasing a piece of
  expensive new software
• Technology just an enabler - allows scalability

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OVERARCHING BUSINESS PURPOSE

• Clear business purpose and benefits
• A value proposition to inform the implementation
  and drive it through every part of the system,
  including organisational culture

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CULTURE

• You cant manage knowledge, you can only manage
  the culture that leads to that knowledge being
  shared.
• But managing culture isnt easy
• Culture influenced by structure, resources,
  processes and systems

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KPMG model
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KNOWLEDGE SHARING

• Knowledge is power (especially in recession!)
• Breaking down silo mentality
• Incentivising knowledge sharing

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ACCOUNTING KNOWLEDGE

• Knowledge -- not information -- equals power
• Local knowledge and technical competence will be
  insufficient, instead a premium will be placed on
  value-adding contributions to management FMAC

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STRATEGIC ENTERPRISE MANAGEMENT

• A management approach best suited to bridging the
  gap between strategy and operations
• A process, not a system
• Right people in the right place having access to
  the right expertise
• BETTER DECISION MAKING

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STRATEGIC ENTERPRISE MANAGEMENT
SHAREHOLDER VALUE
Creation
Protection
Risk/return
Inform Strategy
Inform Strategy
Decisions
ABC
BSC
SEM Capability
Decisions
Empower Operations
Empower Operations
Decisions
CULTURE, PEOPLE, STRUCTURE, PROCESS, SYSTEMS
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SEM IMPLICATIONS FOR ACCOUNTANTS

• Reducing the power of the finance function
• But -- freeing up time to allow accountants to
  focus on more value-added activities
• Repositioning of accounting function

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IMPLICATIONS FOR THE ORGANISATION

• Capitalising on knowledge ? creating a learning
  organisation
• Knowledge can never be owned by the company,
  only rented
• Knowledge is portable -- implications for
  recruitment and retention
• The virtue of forgetting

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IMPLICATIONS FOR ACCOUNTING

• Loss of distinction of accounting knowledge
• Breakdown of silos -- teamwork
• Continuing education and lifelong learning
• Responsibilities of professional bodies -- CPD
• Non-traditional delivery methods (Internet and
  beyond)

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SOFT or PEOPLE SKILLS

• Accountants becoming effective business partners
• leadership
• communication
• influencing
• negotiating
• change management
• team building
• social and cultural skills
• The New CFO of the Future, KPMG ICAA

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FUTURE OF THE FINANCE FUNCTION

• Accounting is still relevant despite the changes
  in the nature of accounting knowledge

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FUTURE CHARACTERISTICS OF FINANCE

• Finance Strategy
• Aligned with business strategy
• Linked to business objectives
• Practical and measurable

• Finance Structure
• Split accountability and responsibility
• Be integrated with the business
• Include a central advisory team

• Finance Staff
• Strong commercial acumen
• Good analytical skills
• Effective interpersonal skills
• Consultative approach
• Coaching ability

• Finance Processing
• Focussed on adding value
• Integrated into business processes
• Automated
• Efficient and Effective

• Finance Systems
• Flexible
• Use emerging technologies
• Integrated across the business
• Reflect users requirements
• Embedded controls
• Enabling rather than constraining

• Finance Culture
• Forward looking
• Appreciate value rather than cost
• Encourage openness and sharing of best practice
• Encourage partnering with the business

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QUESTIONS

• How does change impact on
• CPD?
• Syllabus?
• context in which we train -- practical
  experience?
• length of training?
• entry requirements?