Advanced and CFO Skills

1 Copyright 2013–2014 AICPA Unauthorized Copying Prohibited AICPA Professional Development

Advanced Controller and CFO Skills

Presented by:Joseph M. Rugger CPA, CGMA,

[email protected]

St. Louis Missouri08.14.2014

http://aicpalearning.org/



Chapter Title

1Step 1: Improve Your Leadership Effectiveness by Looking Ahead

2 Step 2: Become an Effective Coach

3Step 3: Improve the Organization’s Performance Through Coaching

4Step 4: Improve Your Team’s Effectiveness Through Coaching


Advanced Controller and CFO Skills (Continued)

Chapter Title

5Step 5: Improve Your Change Agent Skills Through Self-Coaching

6Step 6: Grow Your Skills as a Leader in the Middle

7 Step 6½: Improve by Making a Commitment


Introductions



• BRAMMS• “Remember that a person’s name is to that

person the sweetest and most important sound in any language.” Dale Carnegie, How to Win Friends and Influence People

• Name - a way to remember• What do you do?• Years of experience?



Leadership

- Think of someone who is a great leader- Can be someone you know- Can be living, dead, or famous- Write down their name

- What is it that makes them a great leader?



1. Model the Way

2. Inspire a Shared Vision

3. Challenge the Process

4. Enable Others to Act

5. Encourage the Heart

The 5 Practices of Exemplary Leadership

By: Jim Kouzes & Barry Posmer


Ron Rael

“I found there was more tome than I ever imagined.”


Do You Have Courage?

• A courageous leader uses a mantle of power and personal persuasion to point out to others the right path to take.


Like It or Not…

“The Controller/CFO is the conscience ofthe organization. Unleash your power!”

Ron Rael, The High Road Institute


6½ Steps of Our Growth Plan

1. Lead better by looking ahead.

2. Become an effective coach.

3. Improve organizational performance through coaching.

4. Improve team performance through coaching.

5. Grow your change agent skills through self-coaching.

6. Grow your skills as a leader in the middle.

6½. Improve by making a commitment.


Today’s Advanced Skills

• Thoughtful articulation• Crystal clear communication• Coaching• Honest self-assessing• Objective thinking• Critical thinking• Synthesizing• Team building• Long-term visioning• Stepping beyond your comfort zone!


Chapter 1

Step 1: Improve Your Leadership Effectiveness

by Looking Ahead



Who was looking ahead?


A View of Our Future


Our Future Role and Responsibilities

CFO & Controller's Future

Fulfiller of the 8 Spokes

Strategic Leader

Communicator

Consultant

Collaborator

Fulfiller of the 8 Spokes

Strategic Leader

Communicator

Consultant

Collaborator


The Accounting Team’sResponsibilities

The 8 Spokes of Accounting

Partnership with operations

Cost control & profit

enhancement

Bridge building

Advisors to management &

board

Financial control

Liquidity & Working capitalmanagement

Regulatory compliance

Stewardship of financial

performance

Partnership with operations

Cost control & profit

enhancement

Bridge building

Advisors to management &

board

Financial control

Liquidity & Working capitalmanagement

Regulatory compliance

Stewardship of financial

performance


The Accounting Team’sTransformed Responsibilities

Value Creation Accounting

Keepers of Data Keepers of Trust

To


To


Key Financial Strategist

• You must redefine yourself as this.• Universal Theme #1 – Emphasis on Non-

Accounting Roles• Universal Theme #2 – Our Performance Gap• Universal Theme #3: The Collaborative Partnership


• Jim Collins – Good to Great – Why do some companies make the leap and others don’t

• Level 5 Leaders – Windows and Mirrors

• The Bus• Confront the brutal facts• Hedgehog Concept• 3 Circles – culture of self discipline, technology as an accelerator and not as a change agent, the flywheel


Chapter 2

Step 2: Become an Effective Coach



• EntreLeadership by Dave Ramsey• Practical How to Business Guide• Most business problems are people

problems• Spend more time on Hiring• Developing KRA’s for every position• Creating a vision for your team• Passion beats almost anything –

especially talent• Treat other people the way you want

to be treated• Must listen to the podcast!


Coaching Is...

• Personalized, individualized training and support.• Building a relationship.


Coaching Is Not...

• Controlling!• Micromanaging!• Managing!• Supervising!


Skills Necessary for Coaching

• Teaching• Counseling• Guiding• Learning• Sharing

• Questioning• Relating• Listening• Intuitiveness• Creativity


• The One Minute Manager by Ken Blanchard & Spencer Johnson

• Management and Leadership 101• Not just automatic – it is not just

the numbers• Not just democratic – it is not just

about the people• As leaders we are concerned with

both• One Minute Goals – clear

expectations• One Minute Praising – catch

people doing something right• One Minute Reprimands –

reprimand sandwich – no annual review surprises


Managing the Millennial Generation

• Born in 1982 – 2004 • Largest generation• Inc Magazine’s 6 Keys

1. Over communicate all the time

2. Go heavy on the rewards and punishments

3. Set the Quality Bar High – especially writing skills

4. Keep accountability consistent and crystal clear

5. Be willing to meet halfway – display vulnerability

6. Help them focus on the big picture


2 Great Reads for Millennials

• Jon Acuff – Start – Go from Average to Awesome– http://www.jonacuff.com/blog/books/

• Christine Hassler – The Twenty Something Manifesto

http://www.jonacuff.com/blog/books/


Best Practice:Position Descriptions


To


Define Your Value!

• Position Description defines:– Qualifications– Expected results– Impact on the organization– Authority levels– Job duties (minimal)– Special difficulties– Relationships– Other definitions


Why Have a Position Description?

• Communicates expectations• Clarifies goals• Reduces overlaps and gaps• Reduces uncertainty• Documents performance• Teaches new employees• Gives definition to applicant


How to Make a Position Description

• Results-oriented• Proactive• Flexible • Broad• Brief


Chapter 3

Step 3: Improve the Organization’s

Performance Through Coaching



• When I grow up

http://www.youtube.com/watch?v=Asf3Q85MS1U




• How the Mighty Fall by Jim Collins• Hubris and arrogance born of

success• Undisciplined pursuit of more• Denial of risk & peril• Grasping for salvation • Capitulation to irrelevance or death


Key Financial Strategist = Influencer

• Key role for the Key Financial Strategist is to influence the employer’s culture for the better.

• Not a responsibility you can opt out of.


Culture Is…

• The tone at the top.• The mood, attitude, and atmosphere of an

organization.• The firm’s DNA.• A story that is enacted each day by your

employees.• “How things get done around here.” • How would you define “Servant Leadership”


• Raving Fans by Ken Blanchard & Sheldon Bowles

• Best read on customer service I’ve come across

• In order to be successful in business we must take excellent care of our customers

1. Decide what you want – define a vision – what do you want to do

2. Find out what the customer wants – ask for feedback – listen – empathize – cultivate the relationship

3. Deliver the Vision + 1% - consistency +1 – Under promise & Over deliver


Culture Mosaic – Parts of Your Story


Personal Risk Spectrum

• Each of us defines ‘risk’ along this broad spectrum depending on what it is that we are risking and the value we place upon it.

Very Conservative

ConservativeMiddle of the Road

AssertiveAggressive

Black & WhiteFlying Without a Net


Strategic Planning Flowchart


Risk PlanningMission

Statement

Strategic Plan

Operating Plan

Financing Plan

Three BudgetsOp’s Cap B.S.

The Risk Management Program or Plan


Accountability Is...

• A quality that is only noticed when missing.• Keeping my word, meeting our commitments, and

taking full ownership for my actions.• Accepting reality without finding fault, placing

blame, or hiding from the truth.


Accountability Target

It starts at the core!

Responsibility

ME

Accountability

Empowerment

Self-activation

ME

US

ME


Governance Is…

• A philosophy• A commitment• A promise


“Active Atom” Keeps This from Going Chaotic

ReportingMethods

HR Practices

Control System

RiskManagement

Plans Rewards

PoliciesGoals

Budgets Commitments

DecisionsMeasurements


Chapter 4

Step 4: Improve YourTeam’s Effectiveness

Through Coaching



• David Letterman’s Top 10– http://www.youtube.com/watch?feature=endscree

n&NR=1&v=1Ihn-TIFPAM

http://www.youtube.com/watch?feature=endscreen&NR=1&v=1Ihn-TIFPAM

http://www.youtube.com/watch?feature=endscreen&NR=1&v=1Ihn-TIFPAM


Tom Peters, Speaker/Author

“The role of a leader is to clearthe silly B.S. out of the way and

let the troops get on with the job.”


• Gung Ho! By Ken Blanchard & Sheldon Bowles

• Lesson of the Squirrel – worthwhile work

• Lesson of the Beaver – in control of achieving the goal

• Lesson of the Goose – cheering each other on

• Great read on creating culture


Today’s Realities

• The success and failure of any team is ultimately dependent on the quality of its leadership.

• Leadership is more about the people you lead than it is about you. If you do not know how to lead, you will be unable to tap into and bring forth the full potential of your followers.


4 Best Practices

• You will be assigned one to study and coach Pat on:– Shape your employees’ teaming behaviors with a

solid structure. – Shape your employees’ accountability by

establishing behavior expectations.– Shape your employees’ behavior by using honest

feedback. – Shape your employees’ behavior with recognition

and rewards.


Interdependence Is…

• Realizing that we cannot survive the rigors of work without cooperation from each other and coverage for any employee in distress.

• Displaying the attitude:– “If the team is to succeed, I must do everything in

my power to make that happen.”– “If I fail to deliver, then the team suffers and I let

down my team.”


• Start with Why by Simon Sinek• People don’t buy what you do, they buy why you do it• MLK “I have a plan”• If you hire people just to do a job they will work for money• If you hire people who believe what you believe, they will work for

you with blood sweat and tears• Don’t sell the drill or the drill bit, sell the hole•

http://www.ted.com/talks/simon_sinek_how_great_leaders_inspire_action.html




Team Tools

• Vision• Mission• Diversity

– Opinions– Experiences– Personalities

• Consensus


Team Tools

• Structure– Rewards – Penalties and consequences – Communications systems– Work-tracking – Standards – Participation – Planning – FUN


• The 5 Languages of Appreciation in the Workplace by Gary Chapman

1. Words of Affirmation2. Tangible Gifts3. Quality Time4. Acts of Service5. Physical Touch

• We all want to be appreciated in different ways

• Handwritten thank you notes• Restaurant gift cards• Email to the boss bragging on a team

member


• Google’s CEO on Group Think:– http://www.youtube.com/watch?v=wPHL4paHv0o

http://www.youtube.com/watch?v=wPHL4paHv0o


Consensus Is…

• An acknowledgement that the team is more valuable than the individual.

• Process for everyone to share her/his thoughts before deciding.

• Including everyone’s input and concerns.• Making a decision that will move the team ahead.• Proactively soliciting everyone’s concerns and

feelings known long before the decision is made (most critical aspect).


Consensus Is Not…

• 100% agreement• Agreement by majority vote• Imposed by the leader• Impossible


Consensus Spectrum

Closely Controlled

Control Shared

Directive

Consultative

Democratic

Consensus

100% Agreement


Teams Use Consensus for…

• Resolving conflict• Meeting format• Consequences • Rewards• Communicating methods• Tracking work and progress on team and individual

goals• Attendance requirements• Acceptable participation levels• Soliciting honest input


Interdependent AccountingTeam Characteristics

• Shared vision• Clear mission• Recognition of member contributions• Clearly defined roles• Mutual accountability• Team-based rewards


Expectations and Standards Shape Behaviors

• Behaviors that are measured get attention.– People RE-spect what you IN-spect

• Chet Holmes, The Ultimate Sales Machine

• Clear expectations define the standards for employee behavior.– One Minute Manager Applications

• Rules about work that reinforce values identified in your Culture Statement.


Employee Inculturalization Employee InculturalizationEmployee Focus

On Responsibilities

Supportive Culture

Norms:

-Support

-Recognition

-Coaching

-Involvement

-Empowerment

-Accountability

-Feedback

High

Low

*

Time on J ob

*Employee is inculturalized

On Pay & Benefits

Employee Focus

On Responsibilities

Supportive Culture

Norms:

-Support

-Recognition

-Coaching

-Involvement

-Empowerment

-Accountability

-Feedback

High

Low

*

Time on J ob

*Employee is inculturalized

On Pay & Benefits


Feedback Is…

• The “truth” about you as I see it.• Get permission!• Explain the “Why”• The difference between being in the dark and knowing

where I stand.• Helping me to see if I am who I believe myself to be.• Providing me with tangible information on how I am doing.• The favorite tool of coaches because it creates two-way

dialogue.• Is there anything else I can do for you?


4 Types of Feedback

• Silence – No feedback• Criticism – Negative feedback• Advising – Neutral feedback• Reinforcement – Positive feedback


Is This for Me?

• People value a reward that clearly demonstrates recognition for their contributions.


Reinforcement Chain


Recognition Value Chain


Recognition Strategy

Experience their supervisor practicing recognition

Then as INITIATORS

First as RECIPIENTS

Are “pulled” into the process

Like the way it feels

Employees:

“A Recognition-Loving Culture”

Experience their supervisor practicing recognition

Then as INITIATORS

First as RECIPIENTS

Are “pulled” into the process

Like the way it feels

Employees:

“A Recognition-Loving Culture”


Chapter 5

Step 5: Improve Your Change Agent Skills

Through Self-Coaching



• Hard Line Negotiator• http://www.youtube.com/watch?v=2qsa66AqXTo

http://www.youtube.com/watch?v=2qsa66AqXTo

http://www.youtube.com/watch?v=2qsa66AqXTo


KFS Universal Role Package

Fiscal Management

Team Management

CorporateOversight

People / Systems / Processes / Rules

STRATEGIST

LEADER

CH

AN

GE

AG

EN

TC

ULT

UR

E S

HA

PE

R


Change Agent Skills

• Active listening – http://www.youtube.com/watch?v=nhe0KSGoUgc

• Objective observing • Objectivity and clarity• Building trust• Testing assumptions• Partnering

http://www.youtube.com/watch?v=nhe0KSGoUgc


Change Agent Skills

• Problem solving– If you are not part of the solution, you are part of the problem

• Integrative thinking• Selling ideas

– Dale Carnegie – How to Win Friends and Influence People

• Professionalism• Taking a firm stance (being the conscience)• Where do you rate on these?


A Gap Analysis Is...

• A visual examination of someone’s current state compared to their desired state.


A Gap Analysis

• Starts with the honest truth of where we are today.• Captures a clear vision of the future.


Outcome of the Gap Analysis

• To show what is missing and required to get to this vision.


Gap Analysis Steps1. Describe the Problem

2. Describe the Benefits

3. Narrow the Focus

4. Define Deadlines

5. Describe current state - focus on desired results

6. How will it feel?

7. Fill in the middle – the missing links

8. Create a specific formalized action plan

9. Review the Gap Analysis regularly


Formalized Action Plan Is...

• A visual definition or map of what it will take to make significant progress on a specific objective.– Overall strategic objective– Deliverables– Due dates– Major steps– Detailed steps– Individual responsibilities– Anticipated obstacles and challenges– Performance Metrics– Resources Required


Action Plan Roles

• Sponsor– Who has ultimate accountability for the change?– Who funds the project?

• Advocate– Who drives, wants, or demands the change?

• Customers– Who benefits from the change?


Action Plan Roles

• Agents of Change– Who will carry the responsibility for facilitating the

change through to the end?• Accountability Partner

– Who will hold the change agent’s feet to the fire?– Who gets regular reports on the plan’s ultimate

objective?


Chapter 6

Step 6: Grow Your Skills as a Leader

in the Middle



Change Agent’s Best Tools

• GAP analysis• Probing questions• Problem restatement


• Stephen Covey, 7 Habits

• Quit operating in Quad I

• Emotional bank account

• Deposits & Withdrawals

• Sharpen the saw


Where to Focus YourChange Efforts?

• Where the PAIN is!• Concerns that your boss loses sleep over.


4 Big Buzzwords Today

• Persistence– Steve Jobs – “this is garbage”

• Execution– Deliver Results

• Creativity– Creative problem solver

• Resourcefulness– We aren’t going to throw more money at the

issue


Our Biggest Hurdle• “Going from knowing what you need to do to really doing it• Sources:

1. Your Employees• The Bus

2. Your work• Massive quantity

3. Your firm’s culture

4. You – “we have met the enemy and he is us.”


Solve Problems with Probing Questions

• Cannot be answered “yes” or “no.”• Are open-ended.• Require thoughtful responses.• Can be tailored.• Next question is based on previous answer.• Can be narrowed easily.


Probing Questions Format

Crux of the Matter

Broad

General

Less General

Specific

Very Specific


Problem Restatement Means…

• Redefining the problem in as many ways as possible.

• Shifting your mental gears into a divergent thinking mode.

• Generating statements of the problem without evaluating or justifying.


Chapter 7

Step 6½: Improve by Making a Commitment



Five Accounting Realities

• Unless we change our thinking, tomorrow looks just like today.

• Without a clear vision of tomorrow, what we expect tomorrow will not change from today.

• If we raise our expectations, we alter our future vision!• Our skills and knowledge grow obsolete at an ever-

faster rate.• A finance team only advances in two ways: the

solutions we provide and the connections we sustain.


• Take the Stairs by Rory Vaden• Success is a choice that is as simple as

deciding to take the stairs• Paradox Principle of Sacrifice – Short Term vs

Long Term• Creation Principle of Integrity – You think it, you

speak it, you act it, it happens• Rent Concept – “Success is not owned, it is

rented, and the rent is due everyday.”


Strategies for Easing Our Pain

• Get out of your office.• Let employees out of their offices.• Create a “Stop Doing” list.


20 Things the Rich Do Every Day by Thomas Corley1. 70% of wealthy eat less than 300 junk food calories per

day. 97% of poor people eat more than 300 junk food calories per day. 23% of wealthy gamble. 52% of poor people gamble.

2. 80% of wealthy are focused on accomplishing some single goal. Only 12% of the poor do this.

3. 76% of wealthy exercise aerobically 4 days a week. 23% of poor do this.

4. 63% of wealthy listen to audio books during commute to work vs. 5% for poor people.

5. 81% of wealthy maintain a to-do list vs. 19% for poor.6. 63% of wealthy parents make their children read 2 or

more non-fiction books a month vs. 3% for poor.7. 70% of wealthy parents make their children volunteer 10

hours or more a month vs. 3% for poor.8. 80% of wealthy make happy birthday calls vs. 11% of poor9. 67% of wealthy write down their goals vs. 17% for poor10. 88% of wealthy read 30 minutes or more each day for

education or career reasons vs 2% for poor.


20 Things the Rich Do Every Day (ctd)11. 6% of wealthy say what’s on their mind vs. 69% for poor.12. 79% of wealthy network 5 hours or more each month vs.

16% for poor.13. 67% of wealthy watch 1 hour or less of TV. every day vs.

23% for poor14. 6% of wealthy watch reality TV vs. 78% for poor.15. 44% of wealthy wake up 3 hours before work starts vs.3%

for poor.16. 74% of wealthy teach good daily success habits to their

children vs. 1% for poor.17. 84% of wealthy believe good habits create opportunity

luck vs. 4% for poor.18. 76% of wealthy believe bad habits create detrimental luck

vs. 9% for poor.19. 86% of wealthy believe in life-long educational self-

improvement vs. 5% for poor.20. 86% of wealthy love to read vs. 26% for poor.


We’re Shrinking!

1930 – 19501987

1995

1996

2007Today

4 %2.2 %

1.5 %

1.4 %

.85 % ?

Cost of the Accounting Function as a % of Sales


Significant Trends in Accounting

1. The cost of processing transactions is approaching zero.

2. Everyone demands instant gratification

3. The finance group will spend less time processing and more time consulting

4. The finance group will be ever smaller and less permanent

5. A finance professional’s employment will not be full-time or permanent

6. Movement towards a pay for performance compensation system


Significant Trends in Accounting

7. Accountant required to have a broader base of knowledge beyond accounting/finance

8. Reliance on task forces and project teams

9. Increase in need for compliance and governance that does not waste resources


Moving Towards Zero!

Finance ProcessCost in the

Average companyCost in the

Worst companyCost in the World Class company

A/R remittance processing $0.67 $13.68 $0.01P/R check processing $1.91 $10.93 $0.36A/P invoice processing $2.93 $6.80 $0.35Tracking fixed assets $4.05 $19.10 $0.16Expense report processing $6.05 $25.75 $0.27

Labor Cost per transaction


Strategies for Easing Our Pain

• Climb on board!• Treat employees like volunteers. • Seek out practical experiences outside of finance.• Use 40 hours of CPE as your minimum.• Commit to lifelong learning. • Take your skills seriously but not your title or

position.• Remind yourself often you are replaceable!


3 Key “Take-

Aways”

Thank you for being here!Questions?

• [email protected]

mailto:[email protected]

mailto:[email protected]



Thank you for attending!


Advanced and CFO Skills

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Transcript of Advanced and CFO Skills