3Inspire

‘Back then, going to university was mainly just for a bit of fun.’

only person sitting for the papers in the

British Council office in Santiago. He said, ‘I

was candidate number one sitting at table

number one.’ The years spent in Santiago

certainly left a lasting impression on him. ‘I

loved it there,’ he said.

Flying soloNow at 48, and with more than 22

years of work experience in several

multinational companies around the

world, he said, ‘After five years of living in

Malaysia, I am hooked on ‘teh tarik’ and

‘roti canai’ and it’s my Sunday morning

ritual.’ He fondly illustrates the first day

he started with Air Asia as back then they

only had around 30 to 50 employees.

When he first arrived in July 1997, there

wasn’t a single aircraft under Air Asia X

which was where he initially served as

CFO before landing his role today.

Looking back he wouldn’t have dared

to dream of such an incredibly rapid

growth for Air Asia Berhad. But with all

the hard work and determination put

in by everyone in Air Asia Berhad, such

an accomplishment was inevitable. One

man’s dream of providing the opportunity

for people to fly to anywhere around the

world affordably has become a reality.

Littledale and Tan Sri Dr Tony Fernandez

have been friends for a long time and

he was inspired by Tony’s dream. He

immediately seized the opportunity when

he was asked to hop on board Air Asia.

Being a part of the Air Asia Berhad

team for the past five years has been

From zoology to aviation, ANDREW LITTLEDALE, Chief Financial Officer of Air Asia Berhad, shares his journey with us over a cup of coffee.

From animals to numbers – that was how it all beganLittledale broke into a smile when we asked him about his university days and

why he chose zoology. He said, ‘I had wanted to pursue veterinary science

but was offered to study zoology instead. Back then, going to university was

mainly just for a bit of fun.’ After graduating he realised that he wanted to

take a different path in life. ‘If I were given the opportunity to do it all over

again, I would have definitely done something more general and versatile like

business and finance.’ Littledale’s first stint in the finance sector was as a credit

analyst which he found dull and repetitive. In a desperate attempt to break free

from being stuck in a rut, he met a friend who advised him to take the CIMA

professional qualification as it was the best option if he wanted to learn all

that was important in business and finance but without the auditing aspect. To

Littledale’s delight, it was exactly what he was looking for.

CIMA to SantiagoLittledale went on to complete his first stage of CIMA in London but proceeded

to complete all the other stages in Santiago, Chile, which is also the reason why

he speaks Spanish so fluently. He chuckles a little as he remembered being the

SuccessCounting ‘s

FEATURE

3Inspire

‘Back then, going to university was mainly just for a bit of fun.’

only person sitting for the papers in the

British Council office in Santiago. He said, ‘I

was candidate number one sitting at table

number one.’ The years spent in Santiago

certainly left a lasting impression on him. ‘I

loved it there,’ he said.

Flying soloNow at 48, and with more than 22

years of work experience in several

multinational companies around the

world, he said, ‘After five years of living in

Malaysia, I am hooked on ‘teh tarik’ and

‘roti canai’ and it’s my Sunday morning

ritual.’ He fondly illustrates the first day

he started with Air Asia as back then they

only had around 30 to 50 employees.

When he first arrived in July 1997, there

wasn’t a single aircraft under Air Asia X

which was where he initially served as

CFO before landing his role today.

Looking back he wouldn’t have dared

to dream of such an incredibly rapid

growth for Air Asia Berhad. But with all

the hard work and determination put

in by everyone in Air Asia Berhad, such

an accomplishment was inevitable. One

man’s dream of providing the opportunity

for people to fly to anywhere around the

world affordably has become a reality.

Littledale and Tan Sri Dr Tony Fernandez

have been friends for a long time and

he was inspired by Tony’s dream. He

immediately seized the opportunity when

he was asked to hop on board Air Asia.

Being a part of the Air Asia Berhad

team for the past five years has been

4 Inspire

an exhilarating experience for him. From being

nowhere and unheard of to becoming the top

low cost airline in Asia in a span of five years

has enriched his life in ways he never imagined.

Being the CFO of Air Asia Berhad was the perfect

platform for him to use all his experiences and

knowledge from CIMA to the fullest. He said,

‘The most important thing in ensuring success

in running a business is that you must be able

to not only track and report the progress but to

also measure and strategically chart your plans.

You must also be able to forecast the upcoming

trends and anticipate the risks that come along

with it. You must be able to read and produce good

internal reports, as without them even the most

established companies can crumble.’

Littledale added, ‘Looking at the world’s volatile

economy, it is vital to identify possible obstacles

from the outset and to have a plan how to tackle

them. CIMA equips individuals to strategise to

get the maximum output and deal with future

issues. The whole idea is to be proactive rather

than reactive.’ Although one may think that

their tertiary education does not play a vital role

later on in their lives, Littledale begs to differ as

throughout the years CIMA has continuously kept

him updated on the latest trends and developments

so that he is always in the ‘loop’ on current and future

trends. He values these updates as they help him to

be a step ahead of the rest.

Personal valuesLittledale believes that there is no point expecting

other people to do something that you are not

willing to do yourself. He has learned that as

a leader you must be ready to get your hands

dirty and lead by example. Transparency in the

workplace and allowing employees to voice out

their ideas to their superiors are definitely essential

in the workplace. Everybody is equal in his eyes.

‘There is no point being a dictator in the workplace,

a bête noir, as your company will suffer,’ he said

this with much gusto as he takes a sip of his coffee.

His affable nature and easy going manner would

put anyone around him at ease.

Family and personal timeAlthough work usually occupies most of his time,

he occasionally indulges in competitive go-kart

racing in Sepang. Golf is another favourite way of

‘If I were given the opportunity to do it all over again, I would have definitely done something more general and versatile like business and finance.’

‘Looking at the world’s volatile economy, it is vital to identify possible obstacles from the outset and to have a plan how to tackle them.’

5Inspire

passing his time when he is not travelling

with his family. It is not a well known

fact but Littledale is actually a licensed

pilot and he used to fly quite frequently

while he was in the UK. He realises

that not many people in Asia fly as a

hobby but he doesn’t blame them as the

weather in Malaysia especially can be

rather erratic and the thunder clouds can

be hazardous.

The aviation industry has a special

place in Littledale’s heart and he looks

forward to continuously grow with Air

Asia Berhad as there are still many things

that need to be done. However, if given

an opportunity in the future, he would

like to work in other countries especially

in the United States. The new global

professional designation of Chartered

Global Management Accountant (CGMA),

created by the recent joint venture

between CIMA and AICPA, will certainly

make it easier and broaden his chances

of making this a reality. Littledale believes

that you should never be afraid to ask

questions and to keep on asking until you

truly understand. He strongly believes

that perseverance is key if you want to

achieve the things that matters most in

life. CIMA is definitely something that he

does not regret doing in life.

CIMA equips individuals to strategise to get the maximum output and deal with future issues

7Inspire

YM RAJA DATO’ SERI ABDUL AZIZ RAJA SALIM, fondly known as Engku, shares his endearing journey in this candid and engaging interview on how he revolutionised accountancy in the government sector and how a few lunch meetings led to the birth of CIMA in Malaysia.

Malaysia’s first Management Accountant

ike most gentleman of his era,

Engku greets our team with a

warm smile. As we begin the

interview, it is clear that even at

73, his mind is as sharp as ever

which is not surprising since he sits on the

board of many public listed companies

such as Gamuda Berhad, Panasonic

Manufacturing Malaysia Berhad, PBB

Group, Hong Leong Group, and the

Kenanga Group of Companies.

From Taiping with loveHis voice waivers slightly as he recalls his

life story, an inspiration to us all. Coming

from a small family, Engku was born and

raised in Taiping, Perak. Having lost his

father at a tender age of ten, his mother

single handedly raised her children by

herself. It was not the easiest of times

but they got by. From a young age,

Engku excelled in mathematics and

did very well in school. He went on to

complete his secondary education and

was offered a scholarship to further his

studies in the UK.

A strange proposalEven in his youth, Engku was clear that he

wanted an education in finance and was

set to be a chartered accountant. However

he was baffled when the government

offered him a scholarship to pursue cost

and works accounting (now known as

management accounting) as he had never

heard of it. He was informed that the

country was in dire need of accountants

and a new method of accounting had

emerged; the government didn’t want to

miss out on the opportunity. Although

no one was quite sure of what the course

entailed, they persuaded Engku to be the

first one to try. He decided to take up the

challenge and spent the next three years in

Bristol Business College, UK, after which he

became the first CIMA member in Malaysia.

The revolution beginsAfter returning to Malaysia in the early

1960s he found himself doing historical

accounting as the government was

unsure where to place him. Of course

he was quite unhappy as he was a CIMA

member and wanted to put all the

knowledge learnt into practice. Malaysia

was then in need of much structure and

planning in order to grow and survive in

the competitive market. Engku saw that

this was the best platform to put his

CIMA skills to work. After much debate,

a management accounting division was

set up. The next step was to hire more

CIMA graduates to join the new division.

Mr Zainal Abidin Yahaya, a Malaysian

who had just graduated in management

accounting, later joined the division and

became Engku’s close friend and partner.

He was the second CIMA member in

Malaysia and together they set new

standards and innovative methods to

plan, analyse and measure growth.

New discoveries, new challenges and new solutionsDuring the early post independent days,

Malaysia’s economy heavily depended on

rubber and tin. Though such commodities

did well in the international market,

FEATURE

L

8 Inspire

Malaysia’s economy had succumbed to

the monopoly of the western countries.

Desperate for a change and to liberalise

the economy, great effort was made

to break free from a dependence on

the volatile international market. It

was a time to start innovating and

developing ideas on our own. We had

to stand alongside other nations and

be leaders in scientific discovery and

technological innovation. Malaysia had

to diversify. With the birth of palm oil

and the discovery of high grade crude

oil throughout Malaysia, came a surge in

the economy and the government had

to find a more efficient way to work.

As a CIMA member, Engku took the

opportunity to again put his knowledge

in management accounting to work,

proving again that the CIMA knowledge

he had gained was far superior and

provided end to end solutions to run

not only an organisation, but an entire

government. Together with his team,

they made a breakthrough by creating

a method of gathering, tracking and

analysing information that would provide

them an overall picture of growth and

how to improve it. Engku was pleased

that their efforts paid off as management

accounting was gaining more acceptance

and more individuals were interested to

join the bandwagon. By this time they

were more than capable of running the

division on their own. As the division

grew in size, Engku found himself

being transferred to other government

bodies before landing the role of deputy

accountant general. However Engku

knew that his quest to further promote

management accounting was far from

over. He knew that it was now time to

take management accounting to the next

level – beyond the government sector and

to help people and businesses succeed.

An alliance is born Along with the rapid economic

growth, Engku and his peers namely

Mr Zainal Abidin Yahaya and two

other CIMA members, Major Ho Ching

‘Although having integrity may not make you a popular person in your organisation, you will definitely be a winner in the race of life. Looking back, I have no regrets. I have a clear conscience and sleep soundly at night.’

Toh and Major Chow Ho Chan, saw

a need to create a committee of like

minded individuals to further drive

management accounting. After reaching

a considerable membership size, they

requested recognition from the CIMA

headquarters in the UK. Considering

how well CIMA was received in

Malaysia, the committee was given

financial assistance to have their own

office and hire a few employees. Not

long after, the committee tripled in

size resulting in its conversion into a

branch and subsequently was granted

divisional status by CIMA UK. In mid

1989, CIMA moved to a three storey

building in Kelana Jaya. It is clear that

CIMA is very close to Engku’s heart

as he speaks with such pride and

excitement.

9Inspire

New beginningsAfter 15 years of serving as the president

of CIMA Malaysia, Engku believed that

CIMA is now ready to move forward

without his guidance as there were many

talented CIMA members. It was hard to

let go but it was the right thing to do

as Engku had to move on in his career.

He became the Director General of

Inland Revenue from 1980 to 1990 and

Accountant General Malaysia from 1990

to 1994. He says that his pride in CIMA

membership stems from being trained

to specialise. This means that all CIMA

members are able to play a leading role

in applying management accounting

concepts to any industry that they are

in. He says, ‘I feel I can contribute what I

have learnt, put it into practice and the

scope is limitless. CIMA has thought me

to look forward, and how to improve

efficiency and profitability.’ For his

services in the accounting profession,

and for his contribution to CIMA,

Engku was honoured with the CIMA

Gold Medal in 1986, the first recipient

outside the UK and Ireland.

When asked to comment on the

new Chartered Global Management

Accountant (CGMA) designation

10 Inspire

‘I feel I can contribute what I have learnt, put it into practice and the scope is limitless. CIMA has thought me to look forward, how to improve efficiency and profitability.’

created by the joint venture between

AICPA and CIMA he said, ‘It is truly an

achievement that we should all be proud

of; not many can break into the American

market as they have their own systems

and standards. Both parties will benefit

a lot from it, be it through research,

methodology or updating the syllabus.

This will help all members to gain

worldwide recognition and open doors

to endless opportunities. With employers

looking for more able and talented

individuals to recruit, CIMA will emerge as

the leader in creating a talented supply of

human capital.’

Matters of the heartAfter more than 17 years since retiring

from the government service, Engku is

still very active in the corporate sector.

He sits on the boards of many listed and

non listed companies. He makes it clear

that he is not in it for monetary benefits

but for the satisfaction of being able to

contribute to a greater cause. He believes

everything that we do must be done

whole heartedly, with determination and

dedication. He holds dear to the value of

honesty and integrity. He said, ‘Although

having integrity may not make you a

popular person in your organisation, you

will definitely be a winner in the race of

life. Looking back, I have no regrets. I have

a clear conscience and sleep soundly at

night.’

Engku is pleased that CIMA has made

a clear stand on upholding integrity and

ethics and ensures that all members

abide by a code of ethics. Engku has also

ensured that this attribute is passed on

to his children, Tengku Azmil and Tengku

Azrina, both outstanding and equally

successful individuals in their fields

today. Both graduated from Cambridge

and Oxford University, respectively in

Economics and Law. Like his father,

Tengku Azmil is a Chartered Accountant

of England and Wales, putting his skills

as an accountant to good use as the

Managing Director/Chief Executive

Officer of Malaysia Airlines before his

current role as Executive Director of

Khazanah. Tengku Azrina has a very

successful legal practice.

Moving forwardApart from spending time with his

family, Engku enjoys travelling with his

wife Datin Seri Tengku Ramlah Azizah.

When asked about his future plans, he

paused for a moment and breaks into

a smile. He says, ‘I know I will need to

retire at one point but for now, I am

happy with what I am doing and will

continue doing so as long as my health

permits.’ Contented with life, he now

hopes that CIMA will continue to enrich

the lives of many more individuals as

much as it did for him.

11Inspire

How management accounting drives sustainable successWhat management accountants doManagement accountants are trusted to

guide critical business decisions and drive

strong business performance.

They combine financial expertise and

business acumen to achieve sustainable

business success. They understand how

the different parts of the business need to

come together.

Chartered Global Management

Accountants (CGMAs) are committed to

professional ethics and a code of conduct.

A single syllabus and examination

standard ensures the consistency of a

CGMA’s skills all over the world.

While many CGMAs work in the

finance department, others put their

broader business training to use across

the organisation, including the roles of

Board Director, Chairman and CEO.

A global professionAICPA, the American Institute of Certified

Public Accountants and CIMA, the

Chartered Institute of Management

Accountants, two of the world’s most

prestigious accounting bodies, have

formed a joint venture to elevate the

profession of management accountancy

by establishing CGMA as the most

valued, globally recognised management

accountant designation.

A GLOBAL PROFESSION

AICPA, the American Institute of Certified Public Accountants and CIMA, the Chartered Institute of Management Accountants, two of the world’s most prestigious accounting bodies, have formed a joint venture to elevate the profession of management accountancy by establishing CGMA as the most valued, globally recognised management accountant designation.

WHAT MANAGEMENT ACCOUNTANTS DO

Management accountants are trusted to guide critical business decisions and drive strong business performance.

They combine financial expertise and business acumen to achieve sustainable business success. They understand how the different parts of the business need to come together.

Chartered Global Management Accountants (CGMAs) are committed to professional ethics and a code of conduct. A single syllabus and examination standard ensures the consistency of a CGMA’s skills all over the world.

While many CGMAs work in the finance department, others put their broader business training to use across the organisation, including the roles of Board Director, Chairman and CEO.

MANAGEMENT ACCOUNTING IS MORE THAN YOU THINK

Chartered Global Management Accountants combine financial expertise and business acumen.

ROLE

FRA

MEW

ORK

INFO

RMA

TIO

NA

NA

LYSI

SFO

CU

SSK

ILLS

PERS

PEC

TIV

E

MANAGEMENT ACCOUNTING

Reporting financial performance

Laws Standards Regulations

Financial Quantitative

Certain

Static

Historical

Reporting Technical Analytical

Compliance

ADDED VALUE

Managing business opportunities

Evidence Solutions

Best practices

Non-financial Qualitative Predictive

Dynamic

Forward looking

Communicating Innovating

Problem solving

Strategy

FINANCIAL ACCOUNTING +

Management accounting is more than you thinkChartered Global Management Accountants combine financial expertise and business

acumen.

HIGHLIGHTS

Inspire12

CGMA CASE STUDIESCGMAs are guiding critical business decisions and driving strong business performance all over the

world using management accounting research, tools and techniques.

THE CGMA IS FOUNDED ON THE CIMA SYLLABUS

Established in 1919, CIMA is the world’s leading and most respected management accountancy body, with members and students in 168

experience requirements.

CONTINUING PROFESSIONAL DEVELOPMENT (CPD)

Chartered Global Management Accountants continuously sharpen their business acumen through Continuing Professional Development (CPD). This ensures that management accounting skills, tools and techniques of CGMAs are up to date.

equivalent to that of CIMA’s. US CPAs have taken a uniform examination and met education and experience requirements set by state governmental agencies.

STRA

TEG

YM

AN

AG

EMEN

TO

PERA

TIO

NS

ENTERPRISE PERFORMANCE FINANCIAL

25%Financial decisions 30%Investment decisions and project control 45%

35%Issues in recognition and measurement 20%

accounts 35%Developments in external reporting 10%

Principles of business taxation 25% 15%

Financial accounting and reporting 60%

Management control systems 10%Risk and internal control 25%Review and audit of control systems 15%

35%Risk and control in information systems 15%

Costing accounting systems 30%Forecasting and budgeting techniques 10%Project appraisal 25%Dealing with uncertainty in analysis 15%

20%

Interacting with the competitive environment 20%Change management 20%Evaluation of strategic options 30%Implementation of strategic plans 30%

Strategic management and assessing the competitive environment 30%Project management 40%Management of relationships 30%

The global business environment 20%Information systems 20%Operations management 20%Marketing 20%Managing human capital 20%

Pricing and product decisions 30%Cost planning and analysis for competitive advantage 30%Budgeting and management control 20%Control and performance measurement of responsibility centres 20%

CIMA Advanced Diploma in Management Accounting

CIMA Diploma in Management Accounting

For more information go to www.cgma.org

15% Net present value over three to four years. Project has provided foundation for acquisitions worth multiple billions of dollars.Simon Henry CG MA, Group CFO, Royal Dutch Shell

£25m Savings and sta� redeployed into higher value work.Steve Swientozielskyj CGMA,Head of Finance Shared Services, Network Rail

60% Cost savings switching EMEA into shared service centre.Boonsiri Somchit-Ong CG MA, Vice President Global Accounting, AMD, Kuala Lumpur

$1bn Added to the bottom line of a global FMCG client over an 18 month period.Justin Watson,Head of Finance Talent, Deloitte

£65m Spend on innovative green technologies resulting in a distillery that recycles 31% of its water and 85% of its steam and electrical power.Paul Walsh CGMA, CEO, Diageo

CGMA CASE STUDIES

CGMAs are guiding critical business decisions and driving strong business performance all over the world using management accounting research, tools and techniques.

13Inspire

Innovation outlookFraming the global management accounting agenda 2012/13CGMAs driving critical decisions for business success

The Chartered Global

Management Accountant

(CGMA) designation created

by the joint venture between

CIMA and AICPA recognises

the most talented and committed

management accountants with the

discipline and skill to drive strong business

performance.

This report highlights key areas of

focus for CGMAs over the coming year

as they strive to make an effective

contribution to long-term business

success.

Background and contextOrganisations across the world

face unprecedented challenges. The

paradigms that have guided business

and government have been disrupted

by a dizzying pace of change brought

about by globalisation, innovation and

the continuing fallout from the global

financial crisis.

As Douglas Flint, Chairman of HSBC

has pointed out, ‘I don’t think we’ve ever

been in a period, in our lifetimes at least,

where things have been more uncertain’,

Rebooting business: valuing the human

dimension, CGMA, 2012.

These challenges have a significant

impact on the role of the management

accountant. This report frames the

debate by highlighting the key areas of

focus for business and how management

accountants can support their

organisations effectively.

The first priority for organisations is to

focus on long- term sustainable success,

based on a robust and resilient business

HIGHLIGHTS

model. This applies just as much to public

services and not-for-profit organisations,

both of which also strive to serve the

end-user and allocate scarce resources

effectively.

Driving this forward will be an

emphasis on new ways of working and

collaboration between executives and

stakeholders both within and external

to organisations – in other words,

connecting the dots.

What this needs is effective oversight

and quality decision making by both the

board and management. This recognises

high-quality management information

combined with the very best insightful

analysis that enables organisations

to devise innovative, robust ways of

delivering success over the long term.

This is where management accountants

have such a crucial role to play. Their

distinctive skills and experience, and

in particular their multi-disciplinary

approach, is how management

accountants contribute value to

organisations in such a fundamental way.

Management accountants are trusted

to guide critical business decisions and

drive strong performance. They combine

financial expertise and business acumen

to achieve sustainable success. They

understand how the different parts of

the business need to come together, so

helping to ground decisions in operational

and financial reality. Management

accountants also monitor how each part

of the business attains its goals and how

that contributes to the performance of

the business as a whole. In this way, they

help guide the organisation to implement

the decisions of the board successfully

and to ensure that the board has a

clear line of sight. These are all essential

attributes that CEOs and other senior

business leaders have told us that they

need to meet the challenges ahead.

Indeed, it is no surprise to discover many

of the best management accountants

leading organisations themselves.

Foundations of management accountingIn keeping with the objective of the

joint venture to establish the CGMA

designation to elevate the profession

of management accounting, we

have created a systematic approach

to demonstrate how management

accountants can make this unique

contribution.

The bedrock of this approach is an in-

depth statement of the foundations of

management accounting, summarised

in the publication: How management

accounting drives sustainable success.

This demonstrates the roles, skills,

behaviour and influence demonstrated by

the management accountant to deliver

what the organisation needs. In essence,

the management accountant links

the board objectives and the business,

enabling the right decisions to be made,

be appropriately funded and correctly

implemented throughout the organisation

both in the short and long term.

We are building on this work

through an integrated Management

Accounting Coordination Framework

Programme. This will integrate a number

of projects, including the development

of the syllabus and CPD, tools to support

the effectiveness of management

accounting and research into the

future of the finance function. The

programme is market-driven to ensure

ongoing relevance so that management

accountants can always be at the cutting

edge of techniques, tools, issues and

solutions that are most important to

organisations.

14 Inspire

For each theme, our objective will be to develop and promote new thinking with particular emphasis on the unique perspective of the management accountant in addressing some of the key challenges facing business. These themes are all core to long-term sustainable success. They have particular relevance at a time of economic turmoil and increasing environmental stress in a world where the system is being stretched to breaking point. Creative destruction, always a feature of market economies, has begun to exact a heavy toll. At the same time, the realisation is gaining hold that short-termism is ultimately unsustainable both in commercial and wider societal terms. The first imperative is for companies to base all their decisions and actions on quality information with a view to serving not just the needs of a narrow group of stakeholders, but the needs of the community and the environment as a whole – doing the right thing. This is a fundamental foundation of long-term sustainability. Decisions must also be based on sound ethical principles.

In supporting this, our recent research of business leaders clearly demonstrated the importance of having the right skills and talent in supporting business success. We saw above how management accountants support business success, but of course, nobody needs much reminding of how business is constantly evolving. A key focus of this theme is therefore to understand these changing needs of business so that management accountants are developing the skills and talent to succeed. It is also crucial for organisations to understand and measure the value of their human capital so that they can harness its power effectively. Most busines s leaders will tell you that it’s one thing planning the strategy and deciding what to do, but the real skill lies in making it happen. A key element of this is effective performance management to ensure that performance indicators and incentives reinforce the right behaviours towards achievement of the desired outcomes. A key conclusion from the global financial crisis was that boards had fallen short in their ability to oversee

strategy and risk effectively. The current environment leaves very little room for manoeuvre or error in this regard, but that does not mean that companies should resort to a ‘bunker mentality’ and play safe. Constant reinvention and the seizing of opportunities are key to long-term survivability so organisations need to steer a course between risk versus innovation. A further important component is a resilient business model. This is a new term that seems to have entered the business lexicon in recent years, possibly as a consequence of the volatile, uncertain and complex conditions that now prevail, which can render traditional product and service offerings and delivery channels obsolete very abruptly. It’s clear that no organisation’s business model can stand still. So it’s essential for organisations to have a real grasp of how they make money – or deliver value – to ensure that their business model is actually delivering the right results now and into the future. To support this, organisations need to have the right sort of information to help them make decisions on all aspects of their business. They need to understand their customers, drive operational efficiency and have a clear understanding of all the external factors that impact upon their business, including social, environmental, technological, competitive and political issues. But there is little point in churning out data if you can’t make much sense of it. So the priority has to be turning data into insights and action. This also involves a thorough understanding of the potential implications of developments such as mega data, cloud computing and the so-called ‘internet of things’. Our six themes, building on the foundations of management accounting, will help all organisations steer a course towards long-term sustainable success. Through delivering a platform of outputs including reports, tools, events and webcasts, we will be providing CGMAs with the resources they need to add value and develop their careers, whatever their role in the organisation.

How management accounting addresses current business challengesOn top of this core foundational programme, we are focusing on six overarching themes in the coming year as shown in the calendar below. Together, the themes address all of the most critical challenges facing the world’s organisations and are based on extensive feedback combined with our own analysis of prevailing market conditions.

INNOVATION OUTLOOK – FRAMING THE GLOBAL MANAGEMENT ACCOUNTING AGENDA 2012/13

On top of this core foundational programme, we are focusing on six overarching themes in the coming year as shown in the calendar below. Together, the themes address all of the most critical challenges facing the world’s organisations and are based on extensive feedback combined with our own analysis of prevailing market conditions.

HOW MANAGEMENT ACCOUNTING ADDRESSES CURRENT BUSINESS CHALLENGES

THEME TOPICS

Doing the right thing

Developing the skills and talent to succeed

Making it happen

Risk versus innovation

Resilient business models

Turning data into insights and action

• Applied ethics

• Corporate social responsibility

• Behaviours• Leadership

• CFO priorities

• Future of management accounting

• Valuing talent - cost of losing and retaining talent

• Tomorrow’s finance talent and competencies

• Contemporary performance management

• Strategy, risk and opportunity management

• What they are and how to develop them

• Managing mega data

• Cloud computing, IT• The internet of things

2012

2013

Joining the likes of AirAsia, Tesco Malaysia, Google Malaysia and Shell Malaysia, CIMA SE Asia has signed a Corporate Integrity Pledge to signify its commitment towards creating a business environment that is fair, transparent and free from corruption. To date, more than 50 organisations have signed the pledge in Malaysia and there is interest in the initiative elsewhere in the region – showing how companies, civil society and government are seeking to address issues of corruption and corporate ethics.

The Corporate Integrity Pledge is an initiative of the Malaysian Institute of Integrity that is aligned with the objective of fighting corruption under the Government Transformation Programme of Malaysia. We are proud to support this initiative as ethics is not only on CIMA’s agenda but businesses globally. Plans are underway to work closely with the Malaysian Institute of Integrity to fly the ethics flag even higher.

Read CIMA’s pledge at: http://www.cism.my/index.php?act=pledge&company_pledge1Page=1

CIMA SE Asia signs the corporate integrity pledge

UPDATES

AVAILABLE REPORTS

CIMA SE Asia launched the CGMA report on ‘Managing responsible business’ in early May this year in Malaysia and Singapore.

The report, a global survey of almost 2,000 Chartered Global Management Accountants, in nearly 80 countries, found that 80 per cent of organisations provide a code of ethics to guide employees about ethical standards in their work, up from 72 percent in 2008. Despite more commitment to ethical performance, pressure to act unethically is on the rise. Four out of five businesses worldwide have committed to ethical performance, but rhetoric does not always match reality. The report highlighted a weakened ‘tone from the top’ and more pressure on financial professionals – especially in emerging economies — to act unethically.

A copy of the report is available at: http://www.cgma.org/Resources/Reports/Pages/ManagingResponsibleBusiness.aspx

Managing responsible business

Managing responsible

business

A global survey on business ethics

CgMa reporT

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From AICPA and CIMAcomes a new global designation.

The American Institute of Certified Public Accountants and

Chartered Institute of Management Accountants proudly

announce the creation of the Chartered Global Management

Accountant (CGMA) designation, to elevate the profession of

management accounting.

Demonstrating management accounting expertise, determination

and commitment to achieving sustainable business success,

CGMAs are trusted by businesses worldwide to guide critical

decisions and drive strong performance.

CGMA delivers the financial expertise companies demand.

And the performance excellence they deserve.

Find out more at cgma.org

Much of what we have known – the paradigms that have guided business and government – have been disrupted by a dizzying pace of change brought about by globalisation, innovation and the fallout from the global financial crisis. We see signs of this everywhere – the Eurozone crisis, protestors on Wall Street and around the world demanding a new agenda for

business and, of course, the shifting of economic power to Asia.While the issues and problems are familiar, the real task is to find the way through them to address what the World Economic Forum calls “an indisputable leadership challenge that ultimately requires new models, bold ideas and personal courage to ensure that this century improves the human condition rather than capping its potential.”

AVAILABLE REPORTS

Rebooting business: valuing the human dimension

Sustainable business: shared value in practice

Our new research bears out that the human dimension – relationships with customers, employees, partners and communities – will be key to getting things moving again and sustaining success over the long run. We surveyed 280 CEOs online from over 21 countries across the world to understand how they viewed current global challenges and what they saw as the priorities in leading their way through them. We followed this up with in-depth interviews with 17 CEOs, chairmen and other business leaders who between them are responsible for over 2.1 million jobs and market capitalisation of $1trn. This report will further explain how we are going to move beyond merely paying lip service to customers, employees and partners, to transform what we know into hard reality. It also highlights the obstacles and challenges and what do companies need to focus their efforts on.

The report is available at: http://www.cgma.org/Resources/Reports/Pages/rebooting-business.aspx

THE MARKETING FINANCE INTERFACE

How to measure and reduce strategy risk

SUSTAINABLE BUSINESS

Shared value in practice

CGMA REPORT

Set against a background of underlying mistrust in their intentions, major corporations have begun to realise that they need to focus on more than short-term profit maximisation. This report examines the need for more sustainable thinking in corporate strategies and identifies the critical business model areas to concentrate on. Michael Porter and Mark Kramer

explored the idea of enhancing business competitiveness while simultaneously advancing the social conditions of the wider community. They described this concept as ‘Shared

Value’. To illustrate the shared value benefits of adopting a more business sustainable focus in company strategy, we have looked at five major organisations in more detail to see what they are doing in this arena and importantly how both they and society in general are benefitting from adopting shared value principles. The companies that we looked at were General Electric, Nestlé, IBM, Unilever, Johnson & Johnson. This report provides practical illustrations of what is being done which can be considered and shaped by Chartered Global Management Accountants working in organisations adopting more sustainable business practices.

The report is available at: http://www.cgma.org/Resources/Reports/Pages/Sustainablebusiness.aspx

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