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Transforming an Accountant to a Manager
to Deal with Challenges faced by CEOs
by
Edwin Besa
7 March 2011
In Partial fulfilment of the requirement of the Executive MBA
degree
Graduate School of Business
University of Cape Town
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UNIVERSITY OF CAPE TOWN
GRADUATE SCHOOL OF BUSINESS
PLAGIARISM DECLARATION
1. I know that plagiarism is wrong. Plagiarism is to use another‘s work
and pretend that it is your own.
2. I have used a recognised convention for citation and referencing.
Each significant contribution and quotation from the works of other
people has been attributed, cited and referenced.
3. I certify that this submission is all my own work.
4. I have not allowed and will not allow anyone to copy this essay with
the intention of passing it off as his or her own work.
Signature: ............ e: .7 March 2011....................
Student Number: BSXEDW001
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ABSTRACT
The research looks at transforming accountants to managers to perform tasks of a Chief
Executive Officer (CEO) once appointed into that position. It looks at what the gaps in terms
of skills are between the accountants and the CEO and how these can be addressed.
Although the literature review was conducted on management, leadership and accountants
skills applicable worldwide, the claim is based on the grounded theory results which were
largely based on interviews conducted in South Africa. The claim is therefore limited to
South Africa.
A process of broadening the accountants‘ skills base to include soft skills and strategic
leadership skills to prepare accountants for possible appointment to management positions is
proposed. This process will make the transition from accountant to manager easier taking into
consideration that in a number of cases accountants are frequently appointed in management
positions.
The research used systems thinking methods and tools to develop a hypothesis of what was
happening in terms of preparing accountants for management positions and how to address
the phenomenon. The summary of the five chapters provides an overview of the content of
the paper.
Situation
The number of accountants ending up in CEO positions is increasing worldwide. Dave Way
(2010) stated in the Accountancy Age journal, that there are now more accountants
positioned as Chairmen or CEOs of the UK‘s top 100 companies than ever before, more than
twice as many as in the 1990‘s (Way, 2010). This is supported by a report by Robert Half an
international recruiting company which reported that the London Stock Exchange (FTSE)
100 CEO Tracker has revealed that over half of the serving CEOs in the current top FTSE
100 companies have strong financial backgrounds (Half, 2010). In South Africa Chartered
Accountants dominate the boards of the Johannesburg Stock Exchange top 200 companies as
stated in the report by the South African Institute of Chartered Accountants (SAICA, 2009).
There is a clear growing trend in accountants taking up management positions and in
particular CEOs. The reason for this development is due to the impact that finance has on
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most decision made by the top management. This is even more so following the financial
crises in 2008. Phil Sheridan, Managing Director of Robert Half UK, said: "Recently we have
seen unprecedented turmoil within the business world, but the consistent strong showing of
CEOs who have a financial background is testament to the fact that financially minded
leaders are regarded as firm guides through challenging economic times." (Library, 2010).
Dave Way (2010) writing in the Accountancy Age agrees with this assessment that due to the
recent development in the business world, it has become faster and more competitive. A
financial mistake can make or break companies in record time. He further adds that as well as
a strategic vision for the company, a leader has to have a confident grasp of detail, and this
usually means numbers. (Way, 2010).
The research is located in the Meta system and in particular the policy decisions function of
organisation as reflected in Beer‘s Viable System Model (Beer, 1979). Looking at an
organization as a system and at the system in focus, recursive level 1, CEOs are responsible
for policy decisions within the organizations as a whole balancing the demands from different
parts of the organization and steering the organization as a whole. The research intends to
find out whether accountants once appointed as CEOs have the skills required to enable the
organisation to continue operating as a viable system. A number of writers have written on
this subject, such as Cave (2010) who asks, ―Do Accountants make good CEOs‖ and
Belgrave (2008) who wrote, ―CFO to CEO. I don‘t think so‖.
To understand the problem situation a three phase total system intervention (TSI) of Creative
Holism which Jackson‘s Creative Holism (2003) called the TSI metamethodolgy was used.
This started with Phase I of the TSI by understand concerns, issues and problems. This is also
the first phase of what Helen J Struebert and Dona R Carpenter, Lippincott, (1999) proposed
in three phases of grounded theory of data generation, data analysis and theory building. SSM
method was used to understand the situation from various stakeholders‘ perspectives using
CATWOE to define the root definition (Checkland & Scholes, 1990). This was used to
develop a rich picture of the situation showing how the different stakeholders are affected by
the situation. A SWOT analysis was conducted to understand the strengths, weaknesses,
opportunities and threats of the situation.
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Concern – Level of skills gap between those acquired by accountants and those expected
of CEOs upon appointment into CEO positions
Based on the analysis and understanding of the situation assisted by SWOT analysis and
Grounded Theory, the concern is in relation to the gap between the qualifications and
experience that accountants get and the skills that CEOs require to execute their tasks once
accountants are appointed as CEOs. This is expressed as a ―concern behaviour over time‖
(CBOT) and shown in the graph in figure 1.3.
The CBOT was plotted based on the level of soft and hard skills that accountants acquire
throughout their careers from the time that they chose to pursue accountancy, which in most
cases commences with a bachelors degree. The measure is not scientific but is a proxy based
on the reasoning that accountants accumulate skills over time as they acquire their training
and experience. The analysis was therefore based on the extent to which skills are perceived
as high or low in the minds of stakeholders. However, if this is not addressed there is a risk
that some accountants appointed as CEOs may not perform to expectation resulting in the
poor performance of the organization and worse still it could lead to the organization not
being viable especially now in period of recession, where poor performance could easily lead
to liquidation.
Research Question
My initial research question is defined as “what is the gap between the qualifications and
experience that accountants get in relation to the skills that CEOs require to execute their
tasks once accountants are appointed as CEOs? How does the gap in skills get addressed if
it exists? The question is crafted as a powerful question that cannot be answered as a yes or
no. It has the words ―what‖ and ―how‖ which will require examining and thinking. The
question was formulated with its boundary carefully considered. My research is carried out in
South Africa within which my grounded theory was based. However the literature review
includes literature relating to United Kingdom and United States of America. The results will
be generic, and therefore the research question does not include the word South Africa.
However, it is specific to South Africa. Perry (2002) states that when formulating the
research problem, its boundaries or delimitation should be carefully considered, even if these
considerations are not made explicit in the wording of the research problem.
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Answer (Hypothesis)
Grounded theory was used to understand the concern and develop an explanation of the
phenomenon in relation to the concern. The problem did not meet the definition of a ―wicked
problem‖ and therefore was not dealt with as such in answering the question. The theoretical
explanation is that there is a gap between the qualifications and experience that accountants
get in relationship to the skills that CEOs require to execute their tasks once accountants
are appointed as CEOs. The gap is in terms of soft skills and strategic leadership skills.
There are different ways that the question could be answered. This includes changing the
current accountancy training curriculum to include soft skills and leadership skills, potential
managers taking postgraduate management courses such as MBA, training during the period
of work experience in management courses such as those that are provided by audit firms to
their audit staff. The answer will depend on the individual accountants‘ circumstances and
therefore an answer for the causal mechanism affecting the phenomenon (ACLD) has not
been developed as this would imply prescribing a choice to an individual.
Rationale
The process of broadening the skills accountants acquires to include soft skills and leadership
skills would prepare accountants for possible appointment to management positions. This
process will make the transition from accountant to manager easier taking into consideration
that in a number of cases accountants are frequently appointed to management positions.
Implementation
The answer will not be implemented using small wins. Different options will be
recommended as possible answers and the implementation will depend on individual‘s
preferred option.
Ethical Implications
There were no negative ethical implications in the answer A to the Concern C. No one
affected in terms of ethics by broadening the skills accountants acquire during their training.
The detailed ethical implications are included in Chapter 5
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ACKNOWLEDGEMENTS
I would like to thank the Graduate Business School faculty for making this journey a
memorable experience. It was indeed a demanding two years but most rewarding in terms of
development on a personal and academic level. Special thanks go to Tom Ryan, Ailsa
Stewart-Smith, Chris Breen, Linda Kantor and most of all Trish Steyn and Sherry Walklett
for all the support that kept us going.
I would like to thank my wife Sylvia and the girls, Dawn and Gerry for bearing with me in
the two years while I focused on the EMBA course. Your support and understanding helped
tremendously in forging ahead with the course.
The last thank you goes to the class mates. It was a great class and the support that I received
from everyone during the course is greatly appreciated. It was a diverse class with everyone
bringing in their unique characteristics, experiences and knowledge, sharing and
exchanging ideas which made the EMBA 11 experience a valuable and unforgettable one.
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Table of Contents
ABSTRACT ....................................................................................................................................................... III
ACKNOWLEDGEMENTS ............................................................................................................................. VII
LIST OF TABLES ............................................................................................................................................. XI
LIST OF FIGURES .......................................................................................................................................... XII
ABBREVIATIONS ......................................................................................................................................... XIII
CHAPTER 1: INTRODUCTION AND OVERVIEW ...................................................................................... 1
1.1 BACKGROUND........................................................................................................................................ 1 1.1.1 Research Background ....................................................................................................................... 1 1.1.2 Research Background ....................................................................................................................... 3
1.2 RESEARCH GAP ...................................................................................................................................... 3 1.3 SITUATION ............................................................................................................................................. 4
1.3.1 Current Development ........................................................................................................................ 4 1.3.2 Reason for this development ............................................................................................................. 5 1.3.3 Problem Situation.............................................................................................................................. 7 1.3.4 Stakeholder Analysis ......................................................................................................................... 7 1.3.5 Stakeholder Analysis using Soft Systems Methodology ..................................................................... 7 1.3.6 SWOT Analysis of Accountants appointed as CEOs ....................................................................... 10
1.4 CONCERN - THE LEVEL OF SKILLS GAP UPON ACCOUNTANTS‘ APPOINTMENTS AS CEOS..................... 11 1.5 RELEVANCE ......................................................................................................................................... 15 1.6 IMPLICATION ........................................................................................................................................ 15 1.7 RESEARCH QUESTION .......................................................................................................................... 17 1.8 ANSWER .............................................................................................................................................. 18 1.9 RATIONALE .......................................................................................................................................... 18 1.10 IMPLEMENTATION ................................................................................................................................ 19 1.11 ETHICAL IMPLICATIONS ....................................................................................................................... 19 1.12 CONCLUSION ....................................................................................................................................... 19
CHAPTER 2: LITERATURE REVIEW ......................................................................................................... 20
2.1 INTRODUCTION .................................................................................................................................... 20 2.2 LEVEL 1 - LITERATURE REVIEW ON LEADERSHIP AND MANAGEMENT SKILLS .................................... 21
2.2.1 Leadership and Management Skills ................................................................................................ 21 2.3 LITERATURE REVIEW OF THE RESEARCH PROBLEM – SKILLS GAP BETWEEN THOSE ACQUIRED
BY ACCOUNTANTS AND THOSE EXPECTED OF CEOS. ........................................................................................ 25 2.3.1 Skills that are required for an Effective CEO ................................................................................. 25 2.3.2 Other Leadership Characteristics Critical for a CEO .................................................................... 27 2.3.3 Key concepts, models and theories.................................................................................................. 28 2.3.4 Skills acquired by Accountants ....................................................................................................... 29
2.4 KEY ISSUES AND PROPOSITIONS TO ADDRESS THE GAP ....................................................................... 31 2.4.1 How do you address the GAP? ....................................................................................................... 32 2.4.2 Behaviour models of leadership. ..................................................................................................... 33 2.4.3 SAICA - Competency Framework - Competencies of a Chartered Accountant (SA) at entry
point to the profession .................................................................................................................................. 33 2.5 CONCLUSION ....................................................................................................................................... 34
CHAPTER 3: RESEARCH METHODOLOGY ............................................................................................. 35
3.1 INTRODUCTION .................................................................................................................................... 35 3.2 RESEARCH APPROACH ......................................................................................................................... 36
3.2.1 Qualitative Vs Quantitative Research ............................................................................................. 36
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3.2.2 Research Design.............................................................................................................................. 37 3.3 INTEGRATED RESEARCH APPROACH .................................................................................................... 40
3.3.1 Integrating Critical Realism and Grounded Theory ....................................................................... 41 3.3.2 System of Soft System ...................................................................................................................... 42 3.3.3 Creative Holism .............................................................................................................................. 42 3.3.4 Integrating System Thinking to Grounded Theory .......................................................................... 42
3.4 SENSE MAKING .................................................................................................................................... 44 3.4.1 Viable System Model (VSM) ............................................................................................................ 44 3.4.2 Rich Picture ..................................................................................................................................... 45 3.4.3 Multiple Perspectives ...................................................................................................................... 45 3.4.4 CATWOE ......................................................................................................................................... 45 3.4.5 SWOT Analysis ................................................................................................................................ 45 3.4.6 Grounded Theory ............................................................................................................................ 45
3.5 TAKING ACTION .................................................................................................................................. 49 3.5.1 Experience and body of knowledge ................................................................................................. 49 3.5.2 Velasquez Ethical framework .......................................................................................................... 49 3.5.3 Management Practice ..................................................................................................................... 49
3.6 OTHERS TOOLS USED ........................................................................................................................... 50 3.6.1 Affinity Diagram.............................................................................................................................. 50 3.6.3 Ladder of inference ......................................................................................................................... 50
3.7 VALIDITY ............................................................................................................................................. 50 3.8 TRIANGULATION .................................................................................................................................. 51
CHAPTER 4: RESEARCH RESULTS ............................................................................................................ 52
4.1 INTRODUCTION .................................................................................................................................... 53 4.1.1 Critical Realism .............................................................................................................................. 53
4.2 GROUNDED THEORY ............................................................................................................................ 54 4.2.1 Data Collection ............................................................................................................................... 54 4.2.2 Selection of Participants ................................................................................................................. 54 4.2.3 Open Coding ................................................................................................................................... 55 4.2.4 Categorising Data ........................................................................................................................... 55 4.2.5 Concepts .......................................................................................................................................... 59 4.2.6 Emerging Theory ............................................................................................................................. 61 4.2.7 Memoing.......................................................................................................................................... 61 4.2.8 Theoretical Sampling ...................................................................................................................... 63 4.2.10 Theoretical Code ............................................................................................................................. 67 4.2.11 Selective Coding .............................................................................................................................. 68 4.2.12 Theory ............................................................................................................................................. 69 4.2.13 Testing Quality of Grounded Theory............................................................................................... 70
4.3 CONCLUSION ....................................................................................................................................... 72
CHAPTER 5 : CONCLUSIONS AND EVALUATIONS ............................................................................... 73
5.1 INTRODUCTION .................................................................................................................................... 73 5.2 COMPARING LITERATURE REVIEW WITH RESULTS OF GROUNDED THEORY TO ESTABLISH
SIGNIFICANCE ................................................................................................................................................... 75 5.2.1 Literature Review of Skills Required By Managers......................................................................... 75 5.2.2 Literature Review Regarding Skills Acquired By Accountants ....................................................... 75
5.3 ANSWER TO THE QUESTION ―WHAT‖ ................................................................................................... 76 5.4 ANSWER TO THE QUESTION ―HOW‖ ..................................................................................................... 77
5.4.1 Option 1 Professionalization of Executive Skills ............................................................................. 78 5.4.2 Option 2 Skills Based Training ....................................................................................................... 78 5.4.3 Option 3 Revise the Current Accounting And Finance Curriculum ................................................ 79
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5.3.4 Option 4 Maintain Current Curriculum and Individual Accountants Supplement Training
with Management Courses Such as MBA .................................................................................................... 79 5.4 CONTRIBUTION TO THE BODY OF KNOWLEDGE ................................................................................... 79 5.5 IMPLICATION FOR FURTHER RESEARCH ............................................................................................... 80 5.6 THEORETICAL IMPLICATIONS OF THE RESEARCH ................................................................................. 80 5.7 RELEVANCE ......................................................................................................................................... 80 5.8 UTILITY ............................................................................................................................................... 81 5.9 VALIDITY ............................................................................................................................................. 81
5.9.1 Dependability and credibility .......................................................................................................... 81 5.9.2 Transferability ................................................................................................................................. 82 5.9.3 Confrimability ................................................................................................................................. 82
5.10 ETHICAL IMPLICATIONS ....................................................................................................................... 82
REFERENCES ................................................................................................................................................... 84
APPENDIX A: INTERVIEW SCHEDULE ..................................................................................................... 88
APPENDIX B: SAMPLE OF INTERVIEWS .................................................................................................. 89
APPENDIX C: EVIDENCE OF GROUNDED THEORY PROCESS .......................................................... 96
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List of tables
Table 1.1 ―CATWOE‖ Root Definitions 7
Table 1.2 SWOT analysis of Accountants Appointed as CEOs 10
Table 2.1 List of differences between Managers and Leaders 23
Table 2.2 Summary of skills expected of leaders Vs skills acquired by Accountants 31
Table 4.1 Sample of Categorising Data 56
Table 4.2 Sample of Second Set of Categories 57
Table 4.3 Sample of Concepts Reflecting Properties of Categories 59
Table 4.4 First Affinity Diagram of Concepts and Categories 60
Table 4.5 Sample of Memos 62
Table 4.6 Theoretical Sampling 64
Table 4.7 Second Affinity Diagram of Concepts and Categories 66
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List of figures
Figure 1.1 Rich Picture 9
Figure 1.2 Changes in the Level of Skills 11
Figure 1.3 Force Field Analysis on the Concern Variable (CBOT) 13
Figure 1.4 Initial Concern Mechanism Driving the Skills Gap 14
Figure 1.5 Causal Mechanism Driving the Skills Gap (CCLD) 16
Figure 3.1 Experiential Learning and Managing 36
Figure 3.2 Research Framework 38
Figure 3.3 Integrated Research Framework 40
Figure 3.4 Grounded Theory Applied Using Critical Realism 41
Figure 4.1 Casual Mechanism Explaining the Phenomenon (CCLD) 69
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Abbreviations
The following is a list of abbreviations that were used in this document
1st Cate 1st Category
2nd Cate 2nd Category
ACCA Association of Certified Chartered Accountants of United Kingdom
ACLD Answer Casual Loop Diagram (Addressing the causal mechanism driving the
skills gap between accountants‘ skills and those expected of a CEO upon
accountants appointment to CEO positions)
CATWOE A SSM method of defining systems from a stakeholders perspective. It is a
checklist for problem or goal definition (Checkland & Scholes, 1990) which
should include;
C –customers
A –Actors
T-Transformation process
W_Worldview
O_Owner
E_Environmental constraints
CEO Chief Executive Officer
CFO Chief Financial Officer
CBOT Concern Behaviour Over Time (Accountants‗ gap in skills development over
time in view of possible appointment to CEO positions)
CCLD Concern Casual Loop Diagram (Causal mechanism driving the skills gap
between accountants‗ skills and those expected of a CEO upon accountants
appointment to CEO positions).
ICAEW Institute of Chartered Accountants of England and Wales
SAICA South African Institute of Chartered Accountants
SSM Soft System Methodology. It is an approach to inquiry into problem situations
perceived to exist in the real world. (Checkland and Scholes, 1990)
SOSM System of Systems Methodologies
SWOT Strengths, Weaknesses, Opportunities and Threat
U.S. United States of America
VSM Viable Systems Model
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Body of Knowledge
My Research
My Research
Chapter 1: Introduction and overview
Structure of Dissertation
Source: Perry 2002
1.1 Background
1.1.1 Research Background
“We employ rock climbers, not people who need ladders.” “At Virgin it is this creativity and
the ability to challenge the norm that mark us out from the rest and ensure we continue to
grow.” (Tappin & Cave, 2010)
The above quote is from Sir Richard Branson the founder of the Virgin Group (Tappin &
Cave, 2010). This paper looks at transforming accountants to managers to deal with the
challenges faced by CEOs. Kate Belgrave (2008) quoted Jeffrey Sonnenfeld, Dean of Yale
School of Management in CIMA journal that ―the CEO has to be an extrovert and put a bright
perspective on things. The CFO by contrast, has to be more balanced and reflective‖.
CHAPTER 5 CONCLUSION &
EVALUATION
Significance & implication of results & evaluation of results
CHAPTER 2 LITERATURE
REVIEW
Review of literature relevant to this research
CHAPTER 1
INTRODUCTION &
OVERVIEW
Situation, Concern, Question , Answer, Rational , Ethics, Conclusion
CHAPTER 4
RESULTS
Presentation and analysis of the collected data
CHAPTER 3
METHODOLOGY
Research process design
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However accountants are still appointed as CEOs and lead organizations that are expected to
stay ahead of the curve. This research focuses on the skills that are acquired by accountants
during their training and work experience and relates them to the skills expected of a CEO
upon their appointment.
In the book ―Making Work Systems Better‖, Luc Hoebeke (2000) states that there are four
management domains. These are operation or added value, innovation, value-system or
normative domain and spiritual domain. This research deals with the issue of skills within Luc
Hoebeke‘s (2000) value system or normative domain. The purpose is to address the research
question to establish what the skills gap is between the qualifications and experience that
accountants get in relation to the skills that CEOs require to execute their tasks once
accountants are appointed as CEOs. How does the gap in skills get addressed if it exists? It
is argued that the training and experience of accountants needs to include soft skills and
strategic leadership skills so as to prepare accountants for management positions and
specifically to prepare them for possible appointment to CEO positions.
Soft skills are defined as behavioural competencies (Wikipedia, Soft Skills, 2011). They are
also known as interpersonal skills, or people skills. They include proficiencies such as
communication skills, conflict resolution and negotiation, personal effectiveness, creative
problem solving, strategic thinking, team building, influencing skills and selling skills, to
name a few. (Wikipedia, Soft Skills, 2011)
Strategic leadership is a process wherein those responsible for large-scale organizations for
setting long-term directions, obtained through consensus building of the energetic support of
key constituencies necessary for the commitment of resources. (Cowings, 2010)
This research is based on the South African environment. A new agenda for future research is
proposed. It will be interesting to know what universal skills would apply in other countries
especially in China where there may be different work ethics compared to the Western
countries (Tappin & Cave, 2010).
During the design of this research as shown in Chapter 3, the research initiated by establishing,
how an accountant can be transformed to be able to perform functions of a CEO once an
accountant is appointed to a CEO position. The research results as discussed in Chapter 4
lead to a more focused research question. In terms of Beer‘s VSM the system in focus R1 is
the organizations as a whole and the functional area focused on is the Meta system to find out
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whether accountants once appointed as CEOs have the skills required to enable the
organization to continue operating as a viable system. A number of writers have asked the
question whether accountants make good CEOs, such as Cave (2010) who posed the question,
―Do Accountants make good CEOs‖ and Belgrave (2008) who wrote, ―CFO to CEO. I don‘t
think so‖.
1.1.2 Research Background
As an Accountant with a degree of Bachelor of Accountancy and a professional accounting
qualification of the Chartered Association of Certified Accountants of the United Kingdom. I
became curious about the number of companies preferring to appoint accountants as CEOs.
Accountancy training and experience do not include formal management or leadership
training, yet several boards continue to leave the helm of the organization to accountants, as
explained in the Situation paragraph below. This therefore initiated this research to establish
whether accountants are prepared for this challenge.
1.2 Research Gap
Previous research has focused on management and leadership skills. Several researches were
reviewed the details of which is included in the literature review in chapter 2. None of the
research reviewed focused on skills that accountants acquire during their training and work
experience and preparation for eventually appointment to CEO positions. This research will
add to the body of knowledge that deals with leadership and management skills but
specifically relating to accountants. The research setting will be South Africa and the claim
will therefore be limited to South Africa.
The research was carried as shown below.
Charter 1 looked at the situation, including the reason that prompted interest in this research,
the question, answer and the evaluation of the ethical issues surrounding the research,
credibility and validity of the answer.
In Chapter 2, a literature review is presented. This reviewed the critical points of current
knowledge on the issue of skills required by accountants to perform functions of a CEO. The
goal was to assess whether there is a gap between the qualifications and experience that
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accountants get in relation to the skills that CEOs require to execute their tasks once
accountants are appointed as CEOs. This formed the basis for comparison with research
findings in Chapter 5.
Chapter 3 relates to the methodology used to carry out the research. A qualitative research
approach was chosen as opposed to quantitative research. The reasons are justified in the
chapter. Grounded theory was used to understand what the gap is between skills of an
accountant and those required for a CEO and how it may be addressed. The chapter looked at
and justified the tools used to carry out the research.
Chapter 4 which relates to the research finding, provided the outcome of the research process
as outlined in Chapter 3, answering the research question that would address the concern, as
developed from the grounded theory.
Chapter 5 relates to the conclusion. It discussed the findings of chapter 4 including the
implications of the findings. It also discussed the options of addressing the skills gap without
recommending any options as the choices depend on the individual accountants‘
circumstances.
As shown in the integrated research approach framework in figure 3.3 of Chapter 3 the starting
point was to understand the situation and concern.
1.3 Situation
1.3.1 Current Development
The number of accountants ending up in CEO positions is increasing worldwide. In an article
by Dave Way (2010) for the Accountancy Age, he stated that there are now more accountants
positioned as Chairman or CEO of the UK‘s top 100 companies than ever before – more than
twice as many as in the 1990‘s. This is supported by a report by Robert Half an international
recruiting company which reported that the London Stock Exchange (FTSE) 100 CEO Tracker
has revealed that over half of the serving CEOs in the current top FTSE 100 companies have
strong financial backgrounds (Half, 2010). In this report financial background was defined as
those with a qualification in accountancy (for example a Chartered Accountant), those who
have held a previous Financial Director, Chief Financial Officer or similar financial role or
those who have worked within the banking industry. In the United States of America the top
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three work backgrounds for the top Fortune 700 companies (an annual list compiled and
published by Fortune magazine that ranks the top 700 United States of America closely held
and public corporations as ranked by their gross revenue) CEOs are finance, operations and
marketing, with more CEOs moving up through financial ranks than any other function (Stuart
S. , 2002). In South Africa, Chartered Accountants dominate the boards of the Johannesburg
Stock Exchange top 200 companies as stated in the report by the South African Institute of
Chartered Accountants (SAICA, 2009). It stated that the statistics extracted from the board
membership of the top 200 companies at the end of 2008 showed that the percentage had
increased from 24% recorded four years earlier to 25%. Mr Matsobane Matlwa the Executive
President of SAICA commented that the business sector was increasingly appreciating the
extraordinary benefits that an organization can derive from the expertise of the accountancy
qualification. In the United Kingdom, of the 11 FTSE 100 companies CEOs appointed in
2009, seven had a financial background. This included Michael Queen of 3i and Peter Voser of
Royal Dutch Shell who were both Finance Directors at their respective companies (Half,
2010). The above shows the extent to which accountants are ending up in the CEO positions
especially in the last few years.
1.3.2 Reason for this development
The reason for this development is due to the impact that finance has on most decision made
by the top management. This is even more so following the financial crises in 2008. Phil
Sheridan, Managing Director of Robert Half UK, said: "Recently we have seen unprecedented
turmoil within the business world, but the consistent strong showing of CEOs who have a
financial background is testament to the fact that financially minded leaders are regarded as
firm guides through challenging economic times." (Library, 2010). Dave Way (2010) writing
in the Accountancy Age agrees with this assessment saying that due to the recent development
in the business world, it has become faster and more competitive. A financial mistake can
make or break companies in record time. He further adds that as well as a strategic vision for
the company, a leader has to have a confident grasp of detail, and this usually means numbers
(Way, 2010). He goes on to say that, a well-rounded business leader must possess an accurate
and logical understanding of a company‘s components. Balance sheets provide such a picture.
The reasoning and thought process needed to dissect a balance sheet gives a solid base of skills
for understanding any business, no matter what scale (Way, 2010). This is in agreement with
the researcher‘s discussion with Ms Shelly Nelson a Partner at Deloittes who stated that most
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decisions in business are affected by finance. Therefore the financial view is a good starting
point in understanding what is happing in a company.
Dave Way (2010) also adds that the pendulum has swung further in the favour of accountants
in the wake of the credit crunch. When the stock markets imploded in late 2008 and early
2009, the rug was pulled out from under all but the most stable businesses. As a result, many
companies‘ priorities changed. Leaders found they had to manage costs rather than growth and
this highlighted the need to have sound financial stewardship at the top. This is consistent with
Kate Belgrave (2008) writing for the Chartered Institute of Management Accountant who
wrote that there is a shift in what boards look for in a CEO. They are less interested in the
adventurous executive of the 1990s and more likely to choose a trusted manager who shows
the right blend of operational and financial expertise (Belgrave, 2008). She further states that
Boards are feeling a little nervous about some of the wilder trends of the past. Recession,
dotcom and telcom meltdowns and a rash of corporate scandals have led boards to view a
strong financial background as essential to a strong CEO. Jeffrey Sonnenfeld, Dean of Yale
School of Management says, "Today‘s board wants a CEO who can help them understand the
puffed-up proposals coming in from companies, bankers, consultants and attorneys."
Accountants are good candidates.
Finance directors‘ jobs are evolving too. Their current focus may be on bank covenants, going-
concern tests and risk management issues but they now require broader skill sets and closer
relationship with other operations than in the past. (Cave, 2010)
The tools used to understand the research situation are;
Beer‘s VSM (Walker 1991)
Rich picture (SSM – Checkland 1999)
Stakeholder analysis using CATWOE
SWOT analysis
These are discussed including how they were used in detail in the chapter below.
These tools were used to gather and interpret data and to develop knowledge about the
research situation and concern.
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1.3.3 Problem Situation
To understand the problem situation a three phase total system intervention (TSI) of Creative
Holism which Jackson‘s Creative Holism (2003) called the TSI metamethodolgy was used.
The process started with Phase I of the TSI by understand concerns, issues and problems. This
is also the first phase of what Helen J Struebert and Dona R Carpenter, Lippincott, (1999)
proposed in three phases of grounded theory of data generation, data analysis and theory
building. Within the data gathering process it was identified that the there is a gap between the
qualifications and experience that accountants get in relation to the skills that CEOs require
to execute their tasks once accountants are appointed as CEOs. Due to possible limitation
that may arise from a single or limited perspective of a situation, stakeholder analysis was
conducted to develop a multiple perspective of the situation.
1.3.4 Stakeholder Analysis
In order to recognise the limitations of a given perspective, Morgan (1996, as cited by Jackson,
2003) states that, ―People who learn to read situations from different points of views have an
advantage over those committed to a fixed position‖. Stakeholder analysis adopted from
Checkland‘s Soft Systems Methodology ―CATWOE‖ approach (Checkland, 1999) was used to
develop a multiple perspective on the situation.
1.3.5 Stakeholder Analysis using Soft Systems Methodology
The table below, using SSM the CATWOE root definitions, expressed how different
stakeholders perceive the process of accountants acquiring hard and soft skills.
Table 1.1 “CATWOE” Root Definitions of how various stakeholders perceive acquisition
of skills by accountants
Stakeholder Group Root Definition
Accountants A system carried out by training institutions (A),
which trains (T) students/trainees (C) to
professional accountants to perform accounting and
finance work to highest standard expected by
society (W) within the accounting and finance field
(E).
Training institutions A system carried out by us (A) which transforms
(T) trainees/ accountancy students (C) to be
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professional accountants to perform accounting and
finance work to the highest standard by society (W)
to prepare them to be future leaders within the
business environment (E) can be seen by the
number of accountants that have been appointed as
CEOs
Board of Directors / Shareholders A system carried out be training institutions (A),
which trains (T) students/trainees (C) to
professional accountants to perform accounting and
finance work to highest standard expected by
society (W) and prepare them to be future leaders
within the business environment (E)
Management / Employees A system carried out be training institutions (A),
which trains (T) students/trainees (C) to
professional accountants to perform accounting and
finance work to highest standard expected by
society (W) within the accounting and finance field
(E).
Society A system carried out by training institutions (A),
which trains (T) students/trainees (C) to
professional accountants to perform accounting and
finance work to highest standard expected by the
public (W) as set by the accountancy professional
bodies (E).
Source : Developed as part of the Soft System Methodology analysis
The stakeholder analysis shows different perspectives between different stakeholders. This
shows that it is a problem with multiple stakeholders but with all stakeholders‘ desire for
accountants that have skills required to perform their work effectively. There are no opposing
views to the concern. The differences merely relates to what is considered sufficient skills for
Accountants. For example, is it sufficient that accountants only acquire sufficient skills to
perform accounting and finance work or should they also acquire management and leadership
skills considering that most accountants end up in management positions? The rich picture
showing the situation from multiple perspectives is shown below.
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Figure 1.2 Rich Picture
Rich Picture of the situation
Scrutiny Scrutiny,
Parliament, Consumers Cooperation General public
Executive Management media Need CEOs who
perform in interest
of economic
development
As accountant I
Need soft skills
Our training is
adequate.
Accountants are
even appointed as
CEOs
Training institutions Board, Shareholders
Autonomy Control
We will work and
support CEO
provided he/she
can lead us
Ineffective CEO if promoted without
appropriate skills – disaster
--------------- good
--------------- bad
CBOT – effectiveness CEO performance
As accountant
I need
leadership
skills
Need to appoint
CEO who will
provide financial
stewardship
Board,
Shareholders
Control
Source: Various Clip art images
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The rich picture reflects the stakeholders‘ interests and the dynamics at play. The Boards and
shareholders prefer appointing accountants as CEOs for various reasons as shown in the
SWOT analysis below and training institutions are comfortable that the accountants they
have trained are not only performing well as accountants but are also appointed as CEOs.
There is scrutiny from media and consumers about the performance of the CEOs. The
appointed CEO has to develop leadership and soft skills within a short period of time, or it
will reflect in their performance. It shows the multiple stakeholders perspective, supporting
the view that the situation needs to be viewed from multiple perspectives.
1.3.6 SWOT Analysis of Accountants appointed as CEOs
SWOT Analysis was used for the situational analysis in order to develop the Concern. The
strengths, weaknesses, opportunities and threats that an accountant, appointed as a CEO
would face are considered. The details arose from the Grounded Theory and are included in
Chapter 4.
Table 1.2 SWOT Analysis of Accountants Appointed as CEOs
Strengths Weakness
As accountants, they work long hours, provide
financial stewardship, control finance, receive
articles training, has holistic view of
organization, deal with multiple stakeholders,
central to organization, interact with multiple
levels of staff,
As accountants no communication training, No
HR training, no soft skills training, no strategic
skills training, no leadership training
Opportunities Threats
During economic downturn boards are looking
for cost cutters not CEO focused on growth,
accountants are better place for that job. Financial
mistake can make or break company,
Accountants appointed as CEOs better placed to
manage that risk, appreciation of balance sheet
enables leader to understand business better,
Accountants are less adventurous
Focus on financial issues, not willing to take
risks, may want to be 100% sure before taking a
decision, may want everyone‘s support before
taking a decision
Source: Developed for SWOT analysis
The SWOT analysis shows a summary of the assessment carried out through Grounded
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Theory demonstrating how suitable accountants are placed to assume positions of CEOs. It
shows that even though better placed, as a result of their training and experience as well
as circumstances such as economic down turn when focus on cost cutting is critical, the
skills gap in terms of soft skills and leadership skills poses a threat to their performing
optimally in the position of CEO. The analysis provides a basis for understanding the
possible issues that are likely to emerge while making sense of the situation and therefore
completes the setting of the situation. It creates the context within which my concern is
located.
1.4 Concern - The level of skills gap upon accountants’ appointments as
CEOs
Based on the analysis and understanding of the situation assisted by SWOT analysis and
Grounded Theory, the concern that arises is that there is a gap between the qualifications
and experience that accountants get in relationship to the skills that CEOs require to
execute their tasks once accountants are appointed as CEOs. This is expressed as
accountants gap in skills developed over time or ―concern behaviour over time‖ (CBOT) and
shown in the graph below.
The Concern describing the Behaviour over Time (BOT) and the Force Field Analysis used
the results of the SWOT Analysis and grounded theory.
Figure 1.2 Changes in the Level of skills
Level expect
of a CEO
Soft and hard
Skills level CBOT
Level at
commencement
of Accountancy
training
Accountants training and experience over years
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As a result of management / leaders skills being difficult to measure quantitatively,
the analysis is based on the extent to which it is perceived high or low in the minds of
stakeholders. However if this is not addressed over a number of years it will
eventually be reflected in the poor performance of the organisation.
The CBOT was plotted based on the level of soft and hard skills that accountants
acquire throughout their careers from the time that they chose to pursue an
accountancy careers. The measure is not scientific but is proxy based on the reasoning
that accountants accumulate skills as they acquire training and increase in experience.
Training in majority of cases start with a bachelor‘s degree which in some cases is a
degree in accountancy or commerce. This is followed by a series of examinations
leading to professional qualification. However, as discussed in the situation section
and grounded theory in chapter 4, the training received is limited, focussing more on
accounting and finance and less on soft and leadership skills. The accounting
experience in most cases is preceded by articles, where a trainee accountant works
under supervision of a qualified accountant. This is mostly conducted in auditing
firms. Some accountants choose to remain in practice will others follow the
commerce and industry route after completing the articles training. In all cases the
experience is limited to accounting and finance and less on soft and leadership skills.
This is the basis of the concern.
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Figure 1.3 Force Field Analysis on the Concern Variable (CBOT)
(Force Field Diagram of the variables that affect the acquisition of skills by
accountants)
Xness Level of skills expected of CEOs
Training focussed on technical skills
Envelop of acceptable behaviour
Accounting & finance experience
Accounting & financial training
Level of skills acquired by Accountants
Time
Source: Developed to analyse the drivers and restrainers
The force field analysis assisted in understanding what was driving and restraining the
acquisition of skills by accountants to be able to perform tasks expected of a CEO. The
research related the initial hypothesis of what could be driving the gap between the
qualifications and experience that accountants get in relation to the skills that CEOs require to
execute their tasks once accountants are appointed as CEOs, in the form of a Casual Loop
Diagram (CLD).
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The CLD shows the initial hypothesis based in the initial variables identified from the
grounded theory.
Figure 1.4 Initial Casual Mechanisms Driving the Skills Gap
The CCLD shown above depicts that the higher the level accounting and finance focussed the
training provided to students and trainee accountants, the lower the management skills
acquired by trainees while the higher the level of accounting and finance skills they acquire.
This then leads to accounting and finance training focusing on accounting and finance. In
addition, the more effort required for accountants to develop the skills to perform
management functions. This leads to higher belief of trainers that accountants cope with
management function even without management focussed professional training.
This causes two reinforcing loops as shown above. The challenge is that there is no incentive
or motivation for the training institutions to change the curriculum based on the fact that they
are producing competent professional accountants and therefore see no need to change the
curriculum. In addition accountants are acquiring management skills after appointment to
management positions. This is with extra effort on the part of accountants. However the
training institutions see accountants coping in management positions and therefore see no
need to change the curriculum to include more management skills in their training
curriculum.
extent of accountning &
finance training focus
level of
management skills
level of accounting &
finance skills
extra effort to acquire
management skills
extent of trainers belief in
accountants coping ability
O
OS
S
S
S
R
R
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1.5 Relevance
The level of management skills is important to accountants due to the number of accountants
that are appointed to management positions. It is therefore important that accountants are
prepared for this eventuality and there is therefore a need to acquire management skills in
advance of assuming the management position. This would then avoid undue pressure to
acquire management skills once appointed.
1.6 Implication
The implications are that if current practice continues where management skills are acquired
in unstructured manner and in most cases after appointment into a management position then
there may be cases where the individual may not perform to expectation. This would even be
more critical for a CEO position where if the management skills are not properly applied
could be damaging to the organisation. In terms of the VSM the Meta functions if not
operating properly could render the organisation not viable. It is therefore a concern that
needs to be addressed.
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Figure 1.5 Concern Casual Mechanism Driving the Skills Gap (CCLD)
Grounded Theory will gave rise CCLD as shown below
CLD that includes my CBOT
Dness Eness Fness
Aness
CBOT Yness
Xness
Source : Developed as part of research design
Index
Aness – technical skills focused training
Wness – Accountancy & finance experience
Xness – Accountancy & finance training
Level of accountantsinterface with organisation's
stakeholders
Extent of Accounting
& finance training
level of leadership
skills
Level of soft skills
Potential to appoint
Accountants as CEOs effort in acquiringleadership & soft skills on
the job
Extent of Accounting &
finance experience
S
S
O
O
O
O
S
S S
R
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The concern casual loop diagram developed above will be explained in detail in the Results
section of the paper.
1.7 Research Question
The section deals with the core research idea. Emory and Cooper (1991) in their book
Business Research Methods states that a research problem is one or two sentences that cannot
be answered ‗yes‘ or ‗no. It is the broad problem that the researcher will examine more
precisely later in the propositions /research issues/ hypotheses and is the problem prompting
and placing a boundary around the research without specifying what kind of research is to be
carried out. The initial research question is defined as, what is the gap between the
qualifications and experience that accountants get in relationship to the skills that CEOs
require to execute their tasks once accountants are appointed as CEOs? How does the gap
in skills get addressed if it exists? The question is crafted as a powerful question that cannot
be answered as a yes or no answer. It has the words ―what‖ and ―how‖ which will require
examining and thinking. The question was formulated with its boundary carefully considered.
The research is carried out in South Africa within which the grounded theory was based.
However the literature review was carried out to include the United States of America and
United Kingdom. The results will be generic, and therefore I have not included the word
South Africa in the question, however it is specific to South Africa. Perry (2002) states that
when formulating the research problem, its boundaries or delimitation should be carefully
considered, even if these considerations are not made explicit in the wording of the research
problem. The research boundary is therefore not explicit in the research question. Identifying
this preliminary research question will focus the research activity and literature search.
(Zuber-Skeritt & Knight, 1986).
The question will be dealt with by answering it to address the concern. The answer will
provide an explanation of what the gap is in terms of accountants‘ qualification and
experiences and skills required of CEOs once accountants are appointed as CEOs. This will
provide clues as to where interventions may be made to address the gap.
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1.8 Answer
The objective will be to address the gap in the skills that accountants possess. There are a
number of ways of addressing the question. Beer‘s VSM was used to demonstrate the basis of
the concern and this justified the need to answer the question to address the concern.
Although there are a number stakeholders with an interest in the issues of accountants skills,
the problem is not a wicked problem as it does not resist definition. Although it has many
solutions reflecting different ways of addressing the problem it is not as a result of different
perspectives on the problem. It therefore does not fall into the definition of a wicked problem
as articulated by Rittel and Webber (1973) who defined a wicked problem as one that resists
definition, has no final test, has many alternate solutions reflecting differing perspectives on
the problem, and never achieves closure but only another, newer problem. This problem can
achieve closure. What has lead to not addressing the problem in my view is the stakeholders
not realising that there is a problem. Discussions with training providers shows that there is
need to review the curriculum. This therefore does not require the approach used in dealing
with wicked problems to address the concern. The details of how the grounded theory was
used to understand the concern and the theoretical explanation of the phenomenon and finally
how it will be addressed is provided in chapter 4. The answer is that soft skills and leadership
skills should be acquired before the appointment to CEO. The process of acquiring these
skills may be performed in a number of different methods including changing the current
accountancy training curriculum to include soft skills and leadership skills, potential
managers taking post graduate management courses such as MBA, training during the period
of work experience in management courses such as those provided by audit firms to their
audit staff. These details will be provided in chapter 5. The ACLD has not been developed
due to the different possible way of that accountants may acquire the management skills.
1.9 Rationale
The process of broadening the skills accountants acquires to include soft skills and leadership
skills would prepare accountants for possible appointment to management positions. This process
will make the transition from accountant to manager easier taking into consideration that in a
number of cases accountants frequently end up in management positions. Interviews with a
number of accountants who are currently CEOs reveals that they did not expect to be CEOs
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although they had such ambitions. It is possible that a number of individuals training as
accountants will have those ambitions. Broadening of the skills base will smoothen up the
transition process from accountant to manager.
1.10 Implementation
The answer will not be implemented using small wins. Different options will be recommended as
possible answers and the implementation will depend on stakeholders preferred option.
1.11 Ethical Implications
There were no negative ethical implications in answer A to the Concern C. No one would be
affected in terms of ethics as a result of broadening the skills accountants acquire during their
training. The detailed ethical implications are discussed comprehensively in Chapter 5
1.12 Conclusion
This chapter laid the foundations for the report. It introduced the research problem and
research issues. The research was then justified, definitions presented, the methodology
briefly described and justified. The report was outlined in this chapter and the limitations
given. On this foundation, the report proceeds with a detailed description of the research.
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Body of Knowledge
My Research
My Research
Chapter 2: Literature Review
Structure of Dissertation
Source: Perry 2002
2.1 Introduction
A literature review which is a body of knowledge aims in this chapter to review the critical
points of current knowledge including substantive findings as well as theoretical and
methodological contributions to the issue of skills required by accountants to perform
functions of a CEO. The ultimate goal will be to bring the researcher‘s knowledge up to date
with current literature on what the gap is between the qualifications and experience that
accountants get in relationship to the skills that CEO require to execute their tasks once
accountants are appointed as CEOs. It will further look at how the gap may be addressed if it
exists. This will form the basis for comparison with the research findings.
The literature review was carried out on 3 levels. The first level relates to the parent
discipline of the concern which is on management and leadership skills. This includes a
review of the skills required for a leader and a manager. The review commenced with
CHAPTER 1 INTRODUCTION
& OVERVIEW
Situation, Concern Question, Answer, Rational, Ethics, Conclusion
CHAPTER 4
RESULTS
Presentation and analysis of the collected data CHAPTER 3
METHODOLOGY
Research process design
CHAPTER 5 CONCLUSION &
EVALUATION Significance & implication of results & evaluation of research
CHAPTER 2 LITERATURE
REVIEW
Review of literature relevant to this research
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determining whether a CEO is a manager or a leader or both. Having confirmed that a CEO is
both a leader and a manager or more importantly it is desirable that a CEO possesses both
skills sets, the finding were used as a basis for the second level of the literature review
focusing on research problem of identifying what the gap is between the qualifications and
experience of accountants in relation to the skills expected of CEOs. The third level of
literature review focused on key issues and propositions addressing how the gap between the
skills possessed by an accountant and the skills expected of a CEO may be addressed based
on the research findings to the question. The comparison of the literature review with the
research of the grounded theory assisted in the process of drawing inferences and assessing
whether accountants have the relevant skills required to perform the tasks expected of CEOs.
This was carried in Chapter 5.
The sources of literature were mainly, the internet, books, journals, online articles and EMBA
class notes. The level 1 literature review was conducted prior to completing chapter 4 to
focus the data collection and analysis described in chapter 4, while level 2 and 3 literature
review was carried out after completing the results section in chapter 4 in order to avoid the
development of the theoretical hypothesis being influenced by the literature review and
grounded theory merely confirming the literature review findings.
2.2 Level 1 - Literature Review on Leadership and Management Skills
2.2.1 Leadership and Management Skills
The literature review set off with the parent discipline by first determining whether a CEO is
a manager or a leader. The rationale for conducting such determination is that the skills of a
leader are different from the skills expected of a manager. Leadership and management were
defined and that was used to determine the category in which CEOs fall.
2.2.1.1 What is leadership?
Leadership has been described as the "process of social influence in which one person can
enlist the aid and support of others in the accomplishment of a common task‖ (Chemers,
2002). There are also other definitions. Lawson (2010) quoted Alan Keith of Genentech, Inc
of the United States of America that, "Leadership is ultimately about creating a way for
people to contribute to making something extraordinary happen.‖. I agree with Trachtenberg
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(2010) who says that a leader may not have an official position or title—he or she seems to
guide things without a formal office or authority. I have seen leaders emerge to accomplish
tasks and people around them eager to follow. An example is when a class captain was
chosen in our EMBA 11 class. This was based on Heather being nominated by class members
and rest of the class rallying behind her and willing to follow her leadership including certain
ideas that she proposed to the class during the period as class captain. She was not imposed
on the class by the University and that made it easier for the class to work with her.
2.2.1.2 What is Management?
Management is the acts of getting people together to accomplish desired goals and objectives.
Management comprises of planning, organizing, staffing, leading or directing, and controlling
an organization or effort for the purpose of accomplishing a goal. It involves deploying and
manipulating of different resources including human, financial, technological and natural
resources. (Wikipedia, 2010)
Because organizations can be viewed as systems, management can also be defined as human
action, including design, to facilitate the production of useful outcomes from a system. This
view opens the opportunity to 'manage' oneself, a pre-requisite to attempting to manage
others. Stafford Beers (1979) in developing comprehensive principles and laws of
organisations that permits the establishment of mechanisms necessary for effective control
and communication in order to survive used the Viable System Model. This is a description
that is applicable to any organisation that is a viable system and capable of autonomy. It
supports the definition of management above which states that resources work together to
accomplish a desired goal, which in terms of Stafford Beers principles and laws is to survive.
In other words the ability to survive in changing environment, based on organisation‘s
capability, is management.
Management can also refer to the person or people who perform the act(s) of management.
2.2.1.3 The Difference between Leadership and Management
Shepard (2010) differentiates management and leadership saying that management is a
science that revolves around employees, while leadership is personal and all about the
individual. I would change the differentiation slightly to say management is a science that
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revolves around resources, while leadership is personal and all about the individual.
Employees may comply with a manager‘s orders on the basis of authority given by the
organisation while they will commit to a leader once employees respect the person as a
leader. John Maxwell (2010) in his best seller ―The 21 Irrefutable Laws of Leadership", states
that people must buy into the leader before they‘ll buy into the leader‘s mission. Maccoby
(2000) further clarifies the difference by stating that managers are administrators while
leaders get organisations and people to change. He adds that management is a function that
must be exercised in any business while leadership is a relationship between leader and the
led that can energise an organisation. This is why paradigm shifts are initiated by leaders
rather than managers. This statement agrees with a sample of leaders that come to my mind.
Leaders such as Martin Luther King and the civil rights movement in the United States of
America. The led where eager to follow King‘s ideals in the civil rights movement even after
his assassination. The famous quote, ―I have a dream that one day little black boys and black
girls will be able to join hands with little white boys and white girls as sisters and brothers‖,
(King, 1963) inspired a lot of followers and helped to shape civil rights to where they are
today. Leaders such as Nelson Mandela also inspired so many people with his ideal, as quote
from his statement at the opening of the defence case in the Rivonia Trial April 1964, ―I have
cherished the ideal of a democratic and free society in which all persons live together in
harmony and with equal opportunities‖ (Mandela, 1964). A lot of people identified with this
ideal and bought into his goal to have a democratic and free society. These are some of the
leaders who wanted to see change and the followers were willing to follow without much
persuasion.
Leadership and management are not the same thing as demonstrated from the above
paragraphs. But they are linked, and are complementary. Any effort to separate the two is
likely to cause more problems than it solves.
Table 2.1: List of differences between Managers and Leaders
Manager Leader
Administers Innovates
A copy An original
Maintains Develops
Focuses on systems and structure Focuses on people
Relies on control Inspires trust
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Has a short-range view Has a long-range perspective
Asks how and when Asks what and why
Eye always on the bottom line Eye is on the horizon
Imitates Originates
Accepts status quo Challenges status quo
Classic good soldier His or her own person
Does things right Does the right thing
Source: Adopted from Warren Bennis (1989) book “On Becoming a Leader,”
2.2.1.4 Is a CEO a manager or a leader?
I agree with Alan Murray (2011) that leadership and management go hand in hand. They are
linked and are complementary. This is seen in CEOs who are both managers and leaders.
They are managers on the grounds that they manage resources entrusted by shareholders
through the Boards both directly and indirectly through delegating some of those
responsibilities. In some cases CEOs are hands on and want to not only know what and why
things are done but also how it is done. This is especially true for CEOs that have risen to the
top through the ranks or those that are experts in the field that the business is involved in. An
example is Steve Jobs who has been personally involved and reinvented over and over, such
products as the Apple iPod, iPod Mini, Nano, Shuffle, and iPod Video. He has even been
involved in the marketing of the products personally introducing the products in public
forums. He is also a leader in that he has had the vision of where he wants Apple to go and
inspires staff to follow his vision to achieve great things. In fact he got his employees so
accustomed to change that they expect it now. CEOs will exhibit more of a manager‘s traits
usually in a stable environment, where business is good and targets are being met. They will
however exhibit more of a leader‘s traits when environment is not stable, such as economic
down turn, missing most targets, losing market share, when innovation and creativity,
thinking outside the box is most required.
Leaders lead from the heart while managers focus on the technical aspect of the work and
expect people to simply do as they are told. Both these can be seen in CEOs at various
degrees. They will use their positions and use rewards to influence subordinates. The type of
leadership and management that a CEO provides depends on the circumstances. (Maccoby,
2000) summarises this by saying that, companies need good management and great leaders,
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and efficient function and energizing relationships. Bureaucracies are typically over managed
and under led, resulting in bored, unmotivated employees. On the other hand start-ups are
often intensely led and undermanaged, so that enthusiasm leads to unplanned problems,
overspending and missed deadlines. This shows that management and leadership go hand in
hand. A good CEO must therefore be both manager and a leader.
2.3 Literature Review of the Research Problem – Skills Gap between those
Acquired by Accountants and those Expected of CEOs.
Having discussed leadership and management in general and identified that leadership and
management go hand in hand and that a CEO requires to be both a good manager and a good
leader, I now turn to specifically identify what skills managers and leaders possess and how
they differ from the skills accountants possess in relation to the research problem.
2.3.1 Skills that are required for an Effective CEO
CEOs require good qualities to inspire the staff. If a leader is not performing up to the mark,
the team will not give out their best as well. The list of skills and qualities are shown below:
1. Communication skills: Since a CEO links all the stakeholders in an organisation,
including the Board of Directors, the top management and other employees,
communication is an important quality (Dhavale, 2010).
2. Listening and Feedback: CEO should not only give out orders and directions but also
be open to listen from stakeholders (Rampur, 2010). This is to avoid losing touch with
what is happening around them or hear their views especially with the modern
organisations where information is more freely available and no one person has a
monopoly for knowledge. Sometimes we are such poor listeners because we are so
invested in presenting ourselves as smart that we believe we don‘t need to hear
everything that people tell us (Goldsmith & Wheeler, 2010).
3. Motivation skills: are important for a CEO in order to inspire his team especially
where transformation or change is essential (Rampur, 2010). The CEO for Barclays
Bank, Mr Jon Varley says he motivates 120,000 employees of Barclays using
emotional motivation, saying that the people he works with are motivated by
something very deep, the human instinct to help. (Tappin & Cave, 2010)
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4. Interpersonal skills: The CEO should be able to interact with stakeholders, negotiate,
sway, persuade etc to be a respected leader (Rampur, 2010). However, not all CEO
display this skill prominently. Thras Moraitis, the right hand man for Mike Davis the
CEO for Xstrata says Mike Davis is not a great charismatic leader – he is very shy –
but is an intellectual giant who lets people get on with stuff. (Tappin & Cave, 2010).
He runs a mining group Xstrata which did not exist before 2001, but under his
leadership become not only the biggest mineral groups in the world but also one of
Britain‘s largest public companies. This means that even when a CEO is introvert,
he/she will still be able to perform well.
5. Decision making skills: A CEO is usually responsible for taking final decisions on
major projects. He therefore needs to possess decision making abilities. These have to
be backed by strategic thinking and suggestion from other professionals (Dhavale,
2010). An example is when Steve Jobs of Apple settled a lawsuit with Microsoft
because he realised that Apple was not in a position at the time to fight Microsoft.
Most believed it was not a good decision then but he felt that was the only way that
Apple was going to reverse the loss of market share. He then went on to reinvent
every product that Apple offered. This was achieved through being decisive and
having a vision of where he wanted to take Apple.
6. Problem solving skills: A CEO must try his best to solve problems and conflicts by
first understanding the problem, listening to probable solutions and then coming to a
decision (Rampur, 2010). Problem solving at times may be so critical that a problem
if not addressed satisfactorily may lead to the CEO leaving the position. An example
is the announcement made by BP on 1 October 2010 that by mutual agreement with
the BP board, Tony Hayward had stepped down as group CEO. This followed the
well explosion, oil spill that lasted for 3 months and subsequent environmental
damage at Macondo on the Gulf of Mexico. (Release, 2010).
7. Organisational Management Skills: A CEO is not only supposed to manage his own
team but also communicate and oversee other processes related to the organisation
(Rampur, 2010).
8. Strategic Planning and Execution skills: A CEO must be able to understand the
project prerequisites, prepare a master plan, allocate the resources, and then make sure
that the plans are executed properly (Rampur, 2010).
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2.3.2 Other Leadership Characteristics Critical for a CEO
1. Emotional Intelligence – these are a group of abilities that enable individuals to
recognise and understand their own and others‘ feelings and to use these insights to
guide their own thinking and actions. (Hellriegel, Jackson, & Slocum, 2005). These
include;
a. Self Awareness – which is the ability to recognise and understand your moods,
emotions and drives, as well as their impact on others
b. Self Control – which is the ability to regulate and redirect one‘s own disruptive
impulses and moods. When they feel angry emotionally intelligent leaders analyse
the cause of the anger and look for ways to remove those.
c. Social awareness – is the ability to understand the emotional makeup of other
people and the skill to treat people according to their emotional reactions
d. Social skill – is the ability to build social networks, manage relationships, find
common ground and build rapport. They use their relationships with people to get
everyone moving in the same direction. They seem to have a knack for finding
common ground. This doesn‘t just happen by luck. Socially skilled leaders use
their emotional insight to understand people‘s concern, motivations, feelings and
aspirations. This understanding, along with their ability for self control, enables
emotionally intelligent leaders to build collaborative relationships and effectively
manage large teams of followers.
2. Visionary – vision may require change at times. The CEO for General Electric
Healthcare states that the best CEOs have vision of the impact on the world 20 to 30
years ahead. (Tappin & Cave, 2010).
3. Charismatic and ethical – is a person who has the ability to influence others because
of his or her inspirational qualities (Hellriegel, Jackson, & Slocum, 2005).
4. Trustworthy (Hellriegel, Jackson, & Slocum, 2005)
5. Thoughtful (Hellriegel, Jackson, & Slocum, 2005)
6. Considerate (Hellriegel, Jackson, & Slocum, 2005)
7. Confident (Hellriegel, Jackson, & Slocum, 2005)
To maximise leadership performance and to optimise the extent to which a CEO influences
followers, it is important to determine the context within which he/she function and decide
which leadership role and associated competencies to emphasise (Simerson & Venn, 2006).
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2.3.3 Key concepts, models and theories
2.3.3.1 Are Leadership Skills Inherited or Developed?
The view of leadership, the trait theory of leadership, was one of the theories that were
explored at length in a number of works in the previous century. Galton (1869) in his book
Hereditary Genius examined leadership qualities in the families of powerful men. After
showing that the numbers of eminent relatives dropped off when moving from first degree to
second degree relatives, Galton concluded that leadership was inherited. In other words,
leaders were born, not developed. Other theories that reacted to the trait theory are by
Herbert Spencer (1884) who said that the times produce the person and not the other way
around. This theory assumes that different situations call for different characteristics;
according to this group of theories, no single optimal psychographic profile of a leader exists.
This theory agrees with the findings by Way (2010) where he states that the pendulum has
swung further in the favour of accountants in the wake of the credit crunch. Leaders found
they had to manage costs rather than growth and this highlighted the need to have sound
financial stewardship at the top. Therefore accountants came in at a time when circumstances
require different emphasis at the top.
2.3.3.2 Professionalization of CEO skills
The recent increase in the U.S. in the reliance on external candidates in the selection of CEOs
seems to point at professionalization of executive skills. For example, in 1993, according to
the Corporate Elite annual survey by Business Week, 18, or 35%, of the 51 new CEOs hired
were outsiders (Businessweek, 1993). An example in South Africa is the appointment of Ms
Maria Ramos as CEO for ABSA Bank from Transnet. Selection of outside candidates with
executive skills regardless of the industry they come from suggesting executive
professionalization has occurred via the development of a universal set of skills. On the other
hand, it is possible, according to the power approach to professionalization, that the choice of
outside successors derives from the preference of powerful business leaders who may also be
members of an inner circle of executive candidates committed to the furtherance of not only
their own interests but also to the overall welfare of business as an institution. There are
nevertheless competing hypotheses to explain why Boards of Directors, often through
executive search firms, resort to outsiders in selecting their CEO. With regard to the
outsider/insider distinction, outsiders are likely to change the status quo more than insiders
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(Wiersema & Treacy, 1995). Familiar hypotheses are that an internal visionary might be
needed during the growth stage of the organization, an internal bureaucrat during the
consolidation phase, but an external belt-tightener during a turnaround stage. Turnarounds are
normally associated with shocks to the status quo in an attempt to break what might be
referred to as "organizational inertia" (Wiersema & Treacy, 1995).
Executive selection, then, becomes dependent on strategy and business conditions. There do
not appear to be any overriding generic leadership competencies. Their ultimate selection is
based less on their professionalism, however, than on their provision of a timely elixir.
2.3.4 Skills acquired by Accountants
According to the Accounting Education Change Commission (AECC) Position Statement
No. One (1990), to be successful in their careers, accounting graduates need skills and
abilities that go beyond accounting technical knowledge (Ahadiat, 1994). Several years later,
the Institute of Management Accountants (IMA) published a research report entitled ―What
Corporate America Wants in Entry-Level Accountants (1994)‖. In this report, the IMA also
argued that many accounting recruiters have become dissatisfied with the level of preparation
of the accounting graduates. Some believe that accounting graduates need more college
education due to the recent changes in the business environment. The main theme of the IMA
study was that corporate executives believe that entry-level accountants are out of sync with
the modern times. The research concluded that, among the skills entry-level accountants must
have are the practical experience, a broad understanding of the real world events, social and
communication skills. From these and similar studies it was then concluded that it is critically
important for the accounting programs to incorporate, in their curriculum, instructions
designed to improve students‘ non-technical skills.
In a study by South African Institute of Accountants (2010), Deloitte presented a four-faceted
model which stated that the role of a CFO is that of catalyst, strategist, steward and operator.
IBM presented four finance function profiles for CFOs:
Scorekeepers;
disciplined operators;
constrained advisors;
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and value integrators.
For their part, KPMG opine that CFOs can be categorised into six profiles:
internal growth leaders;
cost cutters;
external growth leaders;
business transformers;
finance specialists and;
risk moderators.
SAICA developed a similar model in 2008 for the key focus areas of CFOs, which identified
four roles:
Planner and strategist providing financial leadership through financial planning and
strategies aligned with business strategies;
Compliance and transaction officer Taking responsibility for transactional and
financial reporting, compliance and strategy implementation;
Growth and innovation catalyst Continuously finding new ways of creating
shareholder value by looking outside of the organisation;
Corporate governance, citizenship and people manager helping to build corporate
governance structures, taking up responsibilities of the organisation as a good
corporate citizen and nurturing relationships inside and outside the organisation.
The report is based on a questionnaire sent to the CFOs of the 40 largest companies listed on
the JSE Ltd in January 2010. The research was conducted by Prof Dr Thea Voogt, CA(SA),
professor in the Department of Accountancy at the University of Johannesburg. The research
states that CFOs need a combination of soft and hard skills to fulfil their responsibilities. The
most important now and going forward in the near future is leadership. The other soft skills
are problem solving, communication, change management, influencing skills, presentation,
negotiating, mentoring, interpersonal skills and relationship building. The findings confirm
SAICA‘s view set out in the new competency framework that leadership is crucial for
chartered accountants. The most important hard skills were strategic planning. The following
question then is that, ―do accountants with the current training and work experience possess
these skills and at what point do they acquire these skills?‖ The role of CFO has involved
over the years from that of a scorekeeper to a strategist and business partner.
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The skills gap can be seen from the table comparing the skills that accountants possess
generally in the accountancy careers compared to the skills expected of a CEO.
Table 2.2: Summary of Skills Expected of Leaders Vs Skills Acquired by Accountants
CEO skills expected Accountant skills acquired
Communication skills Scorekeepers
Listening and Feedback disciplined operators
Motivations skills constrained advisors
Interpersonal skills value integrators
Decision making skills internal growth leaders
Problem solving skills cost cutters
Organizational Management Skills external growth leaders,
Strategic Planning and Execution skills business transformers,
Self Awareness finance specialists
Self Control risk moderators
Social awareness financial planning and strategies
Social skill Compliance and transaction
Visionary Growth and innovation catalyst
Charismatic and ethical Corporate governance
Trustworthy nurturing relationships inside and outside
Thoughtful accounting & finance technical knowledge
Considerate
Confident
Source: Summarised from the literature review
The table shows that accountants are generally focussed on implementing of strategy through
financial planning and strategies and accounting and finance technical knowledge while they
do not have soft skills and leadership skills expected of a CEO as shown above.
2.4 Key Issues and Propositions to Address the Gap
As an individual moves up the corporate ladder the tasks change from more technical, to
more conceptual requiring the ability to think and to analyse cause effect and consequences.
The move from CFO to CEO would then require more focus on conceptual than technical.
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2.4.1 How do you address the GAP?
―Many CFOs and controllers are so much in the weeds with all the Sarbanes-Oxley,
compliance, and risk requirements that in many cases they don't have an opportunity to
demonstrate strategic abilities," said Christine Rivers, a vice president of Hay Group, a talent
and leadership management consulting firm. "Some of them become very successful, but
usually only if they've had developmental experiences that have allowed them to be at the
table doing strategy formulation and helping to use financial data to make business
decisions." (McCann, 2008)
2.4.1.1 Management Courses
In the United Sates, there is a marked shift in companies' CFO preferences which began to
take shape in late 2007 and early 2008, away from the certified public accountant and
controller background. Depending on the company, in greater demand now are MBAs, with
their broader education and finance perspective.
2.4.1.2 Experience
(Trachtenberg, 2010) states that there are courses in leadership that offer sound training in
certain skills. But unless you get up and dance, no course or program can teach you how to
dance; likewise, you largely learn to lead on your own—by doing.
Rees and Porter (1984) also argue that whilst management training is a key for intervention,
the quality and quantity has often been neglected. Historically management has been held by
the British as akin to parenting, a role of great importance of which no training, preparation
or qualification was required. The implication is that experience is the only possible teacher
and character the only possible qualification.
Rees and Porter (1984) also states that due to specialist training on a particular field and
limited training on management there is a temptation for managers to adjust the balance of
their activity so that they concentrate on what they like and what they feel equipped to do at
the expense of the managerial aspect of their job. This may apply to accountants with the
specialised training in accountancy who may be tempted to focus on finance. However, Ms
Shelly Nelson, a partner at Deloittes in South Africa argues that having a finance background
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does not influence her management skills. She however, uses her finance background to look
at the financial statements as a starting point in gaining an understanding about a company.
2.4.1.3 On the job training
Some people believe that leaders are born, not made. Others believe that a person‘s
leadership capacity is learned during childhood and is pretty set by the time they are working
as managers. However, most CEOs believe that leadership can be improved as a consequence
of one‘s personal experiences, and research supports this view. That is the reason for
investing time and resources in efforts to develop the leadership capacity of their employees.
The approach used varies from assigning people to positions to promote learning on the job,
sending employees to formal leadership assessments and training programs and offering
assistance through coaching and mentoring (Hellriegel, Jackson, & Slocum, 2005).
2.4.2 Behaviour models of leadership.
Assume that most people can learn to be effective leaders. Because effective behaviour can
be learned, most individuals can become effective leaders with the proper encouragement and
support. Douglas McGregor in 1957 coined labels of Theory X and Theory Y for effective
leadership. Theory X is based on command and control view of management based on
negative view of human nature, that they are lazy and self centred. On the other hand the
Theory Y and its concern for people is much more widely accepted among managers today.
(Tappin & Cave, 2010) writes that command and control will continue to be useful from time
to time, mostly in turnaround situations requiring tight control, but will not be adequate in
mainstream businesses most of the time. It is not flexible enough for settings requiring long
term decisions and multi constituency considerations, the type of decision companies will
increasingly have to take.
2.4.3 SAICA - Competency Framework - Competencies of a Chartered Accountant
(SA) at entry point to the profession
SAICA in recognition of the need for high level competencies developed a competency
framework that would inform the education, assessment and training programme to meet the
demands of business world. This was based on the Candidates‘ Competency Map of the
Canadian Institute of Chartered Accountants (CICA). SAICA identified the need for the
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seven year qualification period to include subject specific knowledge as carried out in the
past to introduce additional competencies such as leadership, entrepreneurship, business
strategy skills and ethical awareness into the curriculum. The competency framework
specifies the competencies that a Chartered Accountant is expected to possess at the entry
point into the profession after having written the final professional examination prior to
applying for membership. The education and training will be designed such that it equips
candidates with competencies which when complemented by post qualification experience
and development, ensures the growth and acquisition of leadership skills. The teaching
methods will require that both technical expertise and understanding of the significance of the
solution arrived at are combined to enable learners from the start to think like business
people. The objective will be to train Chartered Accountants as leaders with a specific
background in professional accountancy. They should have a full range of technical
competencies of professional accountants and also those which will enable the development
of leadership qualities. It will encourage lifelong learning. Universities have been given up to
2013 to develop and implement the new competency framework as part of their teaching
curriculum for Chartered Accountants.
2.5 Conclusion
Behaviour models have added to the understanding and practice of leadership. The focus has
moved from who leaders are and their personal characteristics to what leaders do and their
behaviour. However, leadership behaviours that are effective in one situation aren‘t
necessarily effective in another. (Hellriegel, Jackson, & Slocum, 2005). Certainly there are
some cross-cultural differences in the behaviour of effective leaders. There are no leadership
styles that are effective in all situations. The literature review provides answers to the
research problem. My next step is to compare the research with the research result of chapter
4 and determine whether it is consistent or contradicts and this is discussed in chapter 5.
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Body of Knowledge
My Research
Chapter 3: Research Methodology
Structure of Dissertation
My Research
Source: Perry 2002
3.1 Introduction
Chapter 2 identified the skills gap between the qualifications of an accountant and the skills
expected of a CEO as well as possible ways of addressing the skills gap. This next chapter
describes the methodology used to collect data to investigate it. An introduction to the
methodology was provided on issues identified in Section 1.2 of chapter 1. This chapter aims
to build on that introduction and to provide assurance that appropriate procedures were
followed. The chapter is organised around four major topics: Introduction, making sense of
the data, taking action on the finding, conclusion.
CHAPTER 1 INTRODUCTION
& OVERVIEW
Situation, Concern Question, Answer, Rational, Ethics, Conclusion
CHAPTER 2 LITERATURE
REVIEW
Review of literature relevant to this research
CHAPTER 4 RESULT
Presentation and analysis of the collected data collected
CHAPTER 5 CONCLUSION &
EVALUATION
Significance & implication of results & evaluation of research
CHAPTER 3 METHODOLOGY
Research process design
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3.1 Research Approach
Figure 3.1 Experiential Learning and Managing
Source: Tom Ryan, 2009
Experiential learning and managing was used to develop the research methodology. This
involved, making sense of the concrete world to construct theories and understand the
theoretical world, based on that taking appropriate action to address challenges identified in
the concrete world.
Having discussed the basis for developing the research methodology, qualitative and
quantitative research compared and based on the comparison selected qualitative over
quantitative research.
3.2.1 Qualitative Vs Quantitative Research
In order to carry out the study qualitative research was selected as opposed to quantitative
research. This is due to the fact that qualitative research is designed to operate well in areas
that are complex, messy, casual ambiguous and where there is little extant knowledge. In
management there are many areas which fall into this categorisation and therefore lend
themselves to qualitative research designs. The research question of transforming accountant
Concrete/Real World
Theoretical Thinking World
Experiential Learning and Managing
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to managers falls within this category. Parrington (2002) further states that qualitative
research is primarily descriptive or comparative but may also be prescriptive in nature. It is
conducted from the point of view of the informant and a high degree of engagement with the
informant‘s world is central to its success. This has been the case based on my own
experience as an accountant with management experience. Quantitative research on the other
hand focuses on quantifiable data or objective properties of the data and in most cases is
measurable such as distance, mass or time. (Wikipedia, 2010). The study can be replicated
by a third party or at another point in time as the process was structured and the raw data is
less dependent on interpretative skills. (Parington, 2002) In addition the data in qualitative
research was collected in the form of words and observations rather than numbers and
analysis was based on interpretation of this data as opposed to manipulation of statistical
data. Whereas quantitative research begins with hypotheses and theories and uses deductive
processes, qualitative research ends with hypotheses and in this case the research used
grounded theory to develop a hypothesis.
Qualitative research was therefore the most appropriate. However, the main weakness of
qualitative research is the risk of results being influenced by the researcher‘s personal biases.
This was addressed by constant triangulation during the data gathering, theory building as
well as after the results stage in chapter 4 where the research results were compared with the
literature review.
3.2.2 Research Design
In order to carry out the qualitative research the research was structured along the
following conceptual model. The model is made of 5 components that explained the
purpose for carrying out the study, conceptual model, research question, methodology and
validity is shown below.
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Figure 3.2 Research frame work
Source: Developed for Research Framework (adopted from Tom Ryan, 2010)
The goal was to address the main purpose of the research which is to transform accountants
to managers to deal with challenges faced by CEOs. The current challenge is that
Conceptual framework- using my
accounting background and working
experience, looking at the curriculum
of different professional accountancy
bodies / qualifications, ie. South
African Institute of Chartered
Accountant, Association of Certified
Chartered Accountant, etc as well as
interviews with CEOs or former CEOs
with accounting background to assess
challenges faced in their
transformation.
Goals
To transform accountants to
managers to deal with challenges
faced by CEOs
Research question what the gap is
between the qualifications and
experience that accountants get in
relationship to the skills that CEOs
require to execute their tasks once
accountants are appointed as CEOs.
How can the gap in skills get
addressed if it exists?
Validity The finding was tested to threats identified and possible ways of dealing with them.
Methods – VSM used to
contextualise concern, Rich
Picture from SSM, stakeholder
analysis, SWOT analysis
Grounded theory, using critical
realism to explain theory,
affinity diagram and
interrelationship diagraph
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accountants‘ training is focused on accounting and finance and less on leadership or
management. This then places accountants at risk of not performing as expected due to not
possessing all skills expected of a CEO. The research therefore aimed to identify the critical
skills that may be required to perform management functions, which in most case are
essential given the number of accountants that are appointed to managerial positions without
structured training or experience in these critical skills. The research question was tightened
as the work progresses by a process of iteration as research gaps and interesting questions
emerges from the phenomenon of interest. However the above question was the starting
point. The research was guided partly by my own experience as an accountant. This therefore
added value to the research as I was able to relate to the findings that emerged during the
process of the research. However, I ensured that my own experience did not influence the
outcome of my finding. The research focused on South Africa, as the interviews were
conducted within South Africa. Preference was given to those that are in CEO positions, as
they are privileged to understand the ultimate challenges faced by accountants transforming
to managers. However, those that are in managerial positions even though they had not yet
reached CEO positions were also interviewed. They are included in the category of
Accountants in Table 4.2 in Chapter 4. In addition, the curriculum for a number of
professional accountancy qualifications of different accountancy bodies was used to further
indentify the ―skills gap‖ between training and experience of accountants and skills required
by accountants once appointed as CEOs. The skills gap based on literature review was
compared to the skills gap based on the data collected through the research in chapter 4 to
triangulate findings. The trends in other countries were also looked at broadly to assess what
the trends and challenges faced by accountants taking up managerial positions in those
countries are. In addition the frequency of appointing accountants to managerial positions
was looked at. This was done by writing to the Institute of Chartered Accountants of England
and Wales (ICAEW) in United Kingdom to find out how many of their members are CEOs of
the top 100 FTSE companies. Requests were sent to the Institute of Certified Public
Accountants (CPA) in the United States of America to determine how many of their members
are CEOs of the top Fortune 100 companies in the Unites States of America. The results of
this approach in determining the trend of accountants taking up CEO positions in other
countries is included in Chapter 1 as part of establishing the extent of the challenge. On that
basis it demonstrated that the problem is not limited to South Africa but applies to other
countries as well. The research aimed to establish using my experience, responses from those
in CEO positions who have faced the challenge of transforming from accountant to managers
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and if that were the trend not only in South Africa but in other developed and emerging
markets what may be required to prepare accountants for management positions. The
implications of the results on other countries were discussed in chapter 5.
3.3 Integrated Research Approach
Figure 3.3 Integrated Research Approach as a Methodology
The Integrated Research approach was also used. Perry (2002 quoting Easterby-Smith, 1991)
states that several methods may be used because increasingly researchers argue that one
should attempt to mix methods to provide more perspectives on the phenomenon. An
integrated approach is defined as a methodology where different tools are used in
combination to conduct the research. The methodology in chapter 3 is based on this approach.
The first integration relates to critical realism and grounded theory.
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3.3.1 Integrating Critical Realism and Grounded Theory
In order to carry out the qualitative research and to appreciate the skills required in
transforming accountants to managers, critical realism was applied to understand what is
happening in the real world based on what is observed in the empirical world. There will be a
need to give an account of the relationship between the medium and what it represents.
(Philosophy, 2005). The figure below shows how grounded theory was applied using critical
realism.
Figure 3.4 Grounded Theory Applied Using Critical Realism
Source: T Ryan 2010
The research, through a rigorous research process, involved collection and interpretation of
data collected in the empirical world. This uncovered the casual mechanisms in the real
world, which explained the events observed in the empirical world. The purpose was to
develop a theory which explained what was happening in the real world. Observation of
events through data collection in the empirical world over time explained the shape of the
accountants‘ gap in skills development over time (CBOT). The analysis and interpretation of
this data collected through the research process produced an explanation of what skills are
REAL EMPIRICAL CONCRETE
WORLD – THE TERRITORY
ABSTRACT SYSTEMS THINKING, THEORETICAL WORLD
– MAPS OF THE TERRITORY
Design
Data Collection 1 Data
Collection 2
Developed Categories
Data Collection 3
Saturated Categories
BSPs
Reduction Sampling
Literature Review
Selective SamplingData Collection 4
Core Variable
Grounded Theory
Initial Categories
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required to perform adequately as a manager following the experience and training as an
accountant.
This approach enabled the formulation of relationships between the variables, developing a
theory of what is actually happening in the real world, referred to as the causal mechanism
driving the skills gap (CCLD).
3.3.2 System of Soft System
In determining appropriate tools to use in developing the theory as depicted in the integrated
research approach above Jackson and Keys‘ SOSM was used (Jackson, 2003). The grounded
theory was used in gathering, interpreting and building a theory of the phenomenon.
3.3.3 Creative Holism
The study‘s aim was to understanding what is happening in the concrete world using creative
holism. This is as a result of the view that management and leadership is complex and is
better viewed holistically rather than in parts. Jackson (2003) states that reductionism sees
parts of a system as paramount and seeks to indentify parts and work up from them to
understanding of the whole. Management and leadership when viewed as whole take on a
form that is not recognisable from the parts. This justified the selection of creative holism in
dealing with the research problem. The skills set required by accountants to perform
functions of a CEO were viewed as a complex whole also using Beer‘s VSM to emphasise
the importance of a system operating as a whole, the functioning of which depends on
individual skills and the interactions between those skills.
3.3.4 Integrating System Thinking to Grounded Theory
System thinking tools were used in arriving at the theoretical hypothesis. This was chosen in
preference to the traditional scientific method of reductionism that is incapable of coping
with complexity inherent in biological and social domains. (Jackson, 2003). The answer lied
not in a predefined blueprint but from appreciation of processes and structures that were
inherent in management of organisations. Most organisations in which accountants work and
rise to management positions are complex with different competing priorities. System
thinking tools were therefore appropriate to use.
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There are two types of system thinking that were considered for the purpose of the research:
3.3.4.1 Hard System Thinking-
Checkland (1981) grouped work systems namely Systems Analysis, Systems Engineering
and Operations Research as Hard System Thinking. It helps managers to optimise
performance of a system where there are clearly defined goals and an objective account of the
system of concern, so that a mathematical model can be produced and optimal solution found.
However, it is unable to handle significant complexity, circumstances where there are
divergent beliefs and values, multiple perception of reality or to deal with politics and power.
(Jackson, 2003). This approach may be used where it is possible to make unitary
assumptions, such as assessing the chances of an accountants end up in management
positions in different countries and in cases where a mathematical model may be used.
3.3.4.2 System of Systems Methodology (SOSM)-
SOSM is a framework of classifying systems methodologies developed by Jackson and Keys
(1984) to deal with much wider range of complex problems than hard systems thinking. It is
composed of system dynamics, organisational cybernetics and complexity theory on one hand
and soft systems methodology on the other hand. The first one deals with extremely complex
problems in a structuralist fashion. The second one deals with usually different and
conflicting views. Solutions make subjectivity central, working with variety of world views
during the methodology process (Jackson, 2003). The objective is to work with and change
the value systems, cultures and philosophies that exist to encourage continuous learning by
seeking and challenging accommodation between the world views of different stakeholders.
SSM was used to develop different perspectives on a situation and through a learning process
to show what is possible. Comparison were made between the real world and the conceptual
world to determine what is systematically desirable and culturally feasible
The approach was to use the different systems thinking tools in combination. This was guided
by creative holism.
SOSM and grounded theory were used in combination to gain knowledge of what is
happening in the research situation
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The tools were used within experiential learning and managing as shown below.
3.4 Sense Making
This involved understanding the situation, the concern and what is driving the concern.
The following tools were used:
1. Stafford Beer‘s Viable Systems Model
2. Rich pictures from Soft Systems Methodology (Checkland, 1999)
3. Stakeholders Analyses using CATWOE analysis ( from Soft System Methodology)
(Checkland, 1999)
4. SWOT analysis
5. Grounded Theory
Each of these tools are discussed below.
3.4.1 Viable System Model (VSM)
Stafford Beer‘s VSM was used to contextualise the relevance of the level of accountants‘
skills in carrying functions of a CEO once appointed to develop an understanding of research
situation. The Meta system in the VSM requires that structures and controls are in place to
establish rules, resources, rights and responsibilities of any viable system. It also looks
outwards to the environment to monitor how the organisation adapts to remain viable and that
policy decisions within the organisation are balanced with the demands from different parts
of the organisations. The VSM requires that for the organisation to remain viable, it needs to
have effective adaption, co-ordination and implementation function. This was used to
demonstrate the importance of CEOs to perform management functions in such a way that the
organisation remains viable. In addition, in the ―Heart of Enterprises‖, Beer (1979) applied
Ashby‘s concept of Requisite Variety stating that for a system to be viable the resources have
to match the requirement. In the research situation there was a concern that the skills
possessed by accountants may not meet the requirement and therefore threaten the viability of
the organisation or at least the ability of the office of the CEO to deliver on its mandates. This
therefore was a useful tool for detecting threats to the viability and putting the concern into
context.
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3.4.2 Rich Picture
The rich picture was used to understand the different interest groups‘ interrelationships, the
process of accountants assuming the position of CEOs and the impact on stakeholders.
3.4.3 Multiple Perspectives
In line with Churchman‘s (1971) it was recognised that individual perspectives are restrictive
and that in order to develop a better understanding of the whole there is need to sweep-in
multiple perspectives into the inquiry. Technical and theoretical perspectives were the main
focus as the issues centred around the professional skills required by accountants to transform
to managers. Checkland‘s Soft System Methodology ―CATWOE‖ was used to develop the
multiple stakeholder perspective. This is shown below.
3.4.4 CATWOE
CATWOE was used to identify the root definitions of the different stakeholders‘ view of
what the situation was and how they viewed the training and experience acquired by
accountants in relation to skills required by CEOs.
3.4.5 SWOT Analysis
SWOT analysis was used to understand the strengths, weaknesses, opportunities and threats
affecting accountants appointed as CEOs. This was carried out in order to understand the
situation.
3.4.6 Grounded Theory
To develop a theory of what is happening in the phenomenon Grounded Theory was used.
The research approach was highly exploratory, targeted at answering the research question by
allowing the findings and interpretations to emerge from the data, while searching for
unexpected /emergent patterns. (Glaser & Strauss, 1967). Data was collected through,
interviews, own experience, literature review, journals, documents, participants observations.
This data was considered as ―concrete‖ as it occurred at the bottom of the ―ladder of
inference‖, in the real world.
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The first step in the coding process was Open Coding which was deriving concepts from data
to develop categories. The concepts generated were the first attempt at interpreting the data.
The process of grounded theory was carried out as follows:
3.4.6.1 Data Gathering
This was carried out in the form of interviews as opposed to questionnaires. Questionnaires
tend to be specific questions with specific answers. The nature of qualitative research is such
that it tends to be descriptive or comparative and therefore the data gathering could not be
reduced to questionnaires as it was difficult to predict how different managers and executives
may respond to different questions. Follow up questions were critical as different responses
were received and the phenomenon of interest got closer. Different constructs and
relationships that emerged required follow up on certain questions. In addition CEOs are very
busy people to use questionnaires would have proved very challenging. It was more practical
to set an interview and discuss in person than to expect CEOs of large organisations to find
time to go through questionnaires on their own. There were also elements of surprises and so
there was need to remain open to such and not be devoted exclusively to the initial
expectations. There was also the advantage of interviewees answering questions not asked, in
an informal discussion which would not have arisen in a questionnaire. Open ended
interviews also helped to become sensitized to what was important from the informants‘ point
of view, as it is usually more useful than what is important to the interviewer. This is because
it was important to understand the world from their point of view. (Parington, 2002)
Large sample sizes were not critical for this research but rather in-depth interviews. Therefore
12 managers who qualified as Chartered Accountants including CEOs of large organisations
were interviewed. The sample also included former CEOs with accountancy training
background, trainers of accountants, graduates planning to pursue a professional accountancy
career and a partner in an auditing firm to access data from an accountant managing within a
professional accountancy firm. The aimed was to avoid preconceptions, allowing key
constructs and relationships to emerge from the data via systematic grounded analysis.
However, the number of interviewees was determined by the point at which saturation was
reached.
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3.4.6.2 Literature Review
Literature review was also carried out as part of data collection, but only for the purpose of
data collection and not for forming hypothesis to explaining the phenomenon.
3.4.6.3 Level 1 Coding
The process involved analysing the data collected, applying a system of open coding by
examining data line by line and identifying the processes in the data. Each sentence and each
incident was coded using as many codes as possible to ensure a thorough examination of the
data. In most cases the actual words from the participants or literature was used to ensure that
the theory that eventually emerges was grounded in the data. The codes in other cases came
from implicit codes of concept constructed from the data.
3.4.6.4 Level 2 Coding
The level 1 codes were grouped into categories by comparing the level 1 coded data with
other coded data to categorise the data. The categories were grouped into similar level 1
codes to ensure that the categories were mutually exclusive. An affinity diagram was used to
form the categories. Analysis of each category subsequently allowed data to be sampled
further, guided by the emerging theory to look for more properties and variations in the data
to saturate the categories. The provisional categories emerging from the data were developed
into conceptual categories by a process of constant comparison, initially comparing data from
one source with data from other sources and then comparing data with emerging theory
through the interplay between induction, deduction and verification. Through this process of
constant comparison the breadth of literature were integrated with data generated from
informants until no new categories emerged thus reaching saturation. Saturation was reached
when any further theoretical sampling to choose new research sources and comparing with
ones already coded added nothing new about what was known about each category, the
properties or its relationship to the core category. The next step was to reduce the number of
categories.
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3.4.6.5 Solidifying the theory
The solidifying the theory process involved constant comparison and theoretical sampling
leading to consolidation and simplification of the grounded theory. This was when the
analytical approach changed from comparing new instances with previous instances to
comparing new instances with previous indentified properties.
3.4.6.6 Theoretical saturation
Theoretical saturation was reached when no new categories or properties could be found and
all further instances of data merely add to the bulk of specific instances of already-discovered
categories and properties.
3.4.6.7 Reduction
The reduction in the list of categories and properties was done when the coding that did not
fit the existing categories and or their properties were identified and subsumed by categories
of higher abstract. As the theory solidified the analysis focused on the core set of categories.
Some were seen as unimportant and discarded will others were found to overlap and therefore
combined until core set of categories were found.
3.4.6.8 Level 3 Coding
Theoretical coding involved examining the data, focusing on theoretical rather than
descriptive terms. The focus was on the relationship between the categories (Hernandez,
2009). Instances which did not fit the emerging categories, properties and theories were
searched necessitating changes in order to accommodate them. The aim was to produce a
theory which fit all data. The theoretical code was a relational model through which all
substantive codes/categories related to the core category. Glaserian classic grounded theory
was considered and the theoretical codes compared to Glaser‘s theoretical coding families.
The purpose was to be sensitized to the myriad of implicit integrative possibilities in the data
(Glaser, 1978, pp. 72 & 73). Straussian qualitative data analysis was also considered for the
purpose of selecting a particular metaphor that closely explained the behaviour of the
phenomenon. The findings could not be related to any of Glaser‘s theoretical coding families.
Neither could they be related to any particular metaphor. The research therefore focussed on
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uncovering the main skills that are required to transform accountants to a managers from the
substantive area. The theoretical codes therefore conceptualised the substantive categories
relating them to each other as the hypotheses integrated into the theory. (Glaser,1978 p55) .
The core category assisted in developing the powerful question.
3.5 Taking Action
The other part of experiential learning and managing is taking action. This is the step that
follows making sense of the concrete world. Once a hypothesis had been developed through
grounded theory, the processes ended my chapter 4. The chapter 5 looked at the possible
options of addressing the skills gap. This was answering the second part of the research
question, ―how may the skills gap be addressed if it exists‖. The tools used to develop the
options were;
3.5.1 Experience and body of knowledge
My experience as an professional accountant
Responses from interviews of CEOs taping into some of the steps taken to address the
skills gap
Literature review of possible options
3.5.2 Velasquez Ethical framework
I used Velasquez (2006) ethical framework to evaluate the ethical implication of options
suggested in terms of utility, rights, justice and caring. Four questions were asked to evaluate
the proposed options.
3.5.3 Management Practice
The chapter on Management Practice in my Professional Development Plan was based on the
work done throughout the EMBA 11 course in improving my management practice. This
stemmed from my critical reflections of incidents recorded both of my work environment and
my personal life. I focused on my role as a communicator, a leader, a manager for change and
a manager of diversity.
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This was done through completing weekly critical Incident Logs, weekly reflections,
mindfulness, conversation analysis and assessing how these improved my management
practice. The dissertation is closely related to my development plan. As an accountant I have
held several accountancy positions of which some involved carrying out management
functions. I see myself taking up more management functions. It will be important that I am
adequately prepared. Linking the dissertation and management practice development will
assist me in this regard.
3.6 Others tools used
3.6.1 Affinity Diagram
Affinity diagram was used to group the concepts into categories. This then lead to changing
categories to valuables before determining the relationship between the categories to establish
what is going on in the data.
3.6.3 Ladder of inference
The ladder of inference was used during the research process to ensure that the data collected
was based on concrete world and not opinion of interviewees. This was to ensure the data
was grounded. All responses that were opinions or at a higher level of inference were
included in the research as memos.
3.7 Validity
The results will only be meaningful in comparative terms as this is a qualitative research. The
results will therefore not be absolute measures of hypothetical constructs. Parington (2002)
states that whatever qualitative analysis is adopted and whatever project specific task is
completed as part of the research study the central important aspect of the qualitative analysis
is that it is an insightful and in many ways intuitive process. The limitations with grounded
theory are that conceptualising and formulating of theories is influenced by personalities and
temperaments and knowledge of the area of research.
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3.8 Triangulation
Triangulation happens when more than one research method is employed in a single research
study (Carpenter & Streubert, 1999). System thinking and grounded theory was used in
addition to grounded theory and literature review for the purpose of triangulation.
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Body of Knowledge
My Research
My Research
Chapter 4: Research Results
Structure of Dissertation
Source: Perry 2002
Chapter 3 described the research methodology used in carrying out the research to develop a
theory of what the gaps are in skills between those that accountants possess in relation to the
skills required to perform as a CEO once accountants are appointed to this position. The
methodology also describes how the skills gap may be addressed. This chapter presents
patterns of results and analyses them for their relevance to the research
propositions/hypothesis as motivated in Chapter 1. The findings, themes and patterns in the
data are presented from the Grounded Theory research methodology used in this research.
The chapter is restricted to presenting and analysing the data collected. Chapter 5 will draw
general conclusion on the results and compare results with the literature review. The overall
objective will be to present conclusion and implications of the research.
CHAPTER 1 INTRODUCTION
& OVERVIEW
Situation, Concern Question, Answer, Rational, Ethics, Conclusion
CHAPTER 2 LITERATURE
REVIEW
Review of literature relevant to this research
CHAPTER 4
RESULT
Presentation and analysis of the collected data
CHAPTER 5
CONCLUSION &
EVALUATION
Significance & implication of results & evaluation of research
CHAPTER 3
METHODOLOGY
Research process design
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The chapter is structured as follows :
The introductions section introduces the results chapter and that Grounded Theory
will be used in developing a theory from the research.
The Grounded Theory section analyses the research question and interprets the data
The Conclusion provides a summary of the findings which was that there is a gap
between the skills accountants get in relation to skills required once accountants are
appointed as CEOs. These relate to soft skills and leadership skills. The chapter did
not attempt to develop an answer, but possible options for answering the question to
addressing the concern are dealt with in chapter 5.
4.1 Introduction
In order to establish what the gap is between the qualifications and experience of accountants
in relationship to the skills that CEOs require to execute their tasks once accountants are
appointed as CEO, grounded theory was used. This is an area that has been over looked with
no similar research that could be referred to. Theory therefore had to built from the ground.
This required gathering data through several methods that are explained below and through a
systematic qualitative process and as Babchuk (1997) stated to generate a theory from the
research that is grounded in the data. As an Accountant as recommended by Goulding (1990)
my background will provide a perspective from which to investigate the problem.
4.1.1 Critical Realism
Critical realism was applied to understand what is happening in the real world based on what
is observed in the empirical world. Corbin and Strauss (1998) suggested the need to go to the
field to discover what is really going on as the assumptions on which grounded theory is
predicted. The research was carried out in the field by conducting interviews, including using
my experience and observation to develop a theory of what is happening the real world.
Critical realism reconciles the real, independent, objective nature of the world (realism) with
a due appreciation of the mind-dependence of the sensory experiences of what we know
about it (hence critical). In critical, as opposed to naïve realism the mind knows the world
only by means of a medium or vehicle of perception and thought. There will be a need to give
an account of the relationship between the medium and what it represents. (Corporation,
2011)
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This approach allowed the formulating of relationships between the variables, and to
developing a theory of what is actually happening in the real world, referred to as the concern
causal loop diagram (CCLD).
4.2 Grounded Theory
4.2.1 Data Collection
Data was collected through interviews of carefully selected participants as further explained
below, and as Glaser and Strauss (1967) stated that to persuaded researches, ―use any
material bearing in the area‖. Own observation and experience as an accountant was used as a
source of data. During interviews participants were allowed to have their own voices, in order
to acknowledge the participants view of reality and not to let it conflict with the researchers.
The literature review revealed current thinking in the area. It was not used to bring about any
hypothesis. The purpose was to answer the question of ―what was going on in an area‖ by
generating either a substantive or formal theory - Theory related to a case and developed
inductively from empirical data to reach an abstract level (Star, 1998)
4.2.2 Selection of Participants
To select the participants CEOs with a professional accountant‘s background, i.e. Chartered
Accountants were selected. The reason is that they have experienced the transition from being
an accountant to being a CEO. It was felt that their experience was pivotal to the research
question and would share the challenges they have experienced, providing data for the
research. A list of South African CEOs with accountancy background was obtained from an
article by Whitfield (2009) entitled ―Bean counters taking over the world‖ from the Leader
magazine, which Whitfield was kind enough to allow to use contents of the article for the
research. A Partner in an auditing firm was also selected to share her experience in
performing management functions within an accountancy practice. To increase the variation
in the participants‘ accountants that are currently working as accountants, those who have just
finished their degree courses as well as those that are involved with training of accountants
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were included to gather data on what challenges they see accountants facing as managers.
The list of interviews conducted is included in the Appendix A.
Literature review of the current curriculum for professional accountancy training for the
South African Institute of Chartered Accountants (SAICA), the United Kingdom Association
of Chartered Certified Accountants (ACCA) , the Institute of Chartered Accountants of
England and Wales (ICAEW) and the United States Certified Public Accountants (CPA) was
included. This provided data for the Grounded Theory, and is separate from the literature
review carried out in chapter 2 where the objective was to generally bring the knowledge up
to date in terms of skills possessed by accountants. This diversity of participants and sources
of data provided the maximum variation and confrontation in data in order to develop the
theory.
The key points were identified in the interview transcripts and the concepts were allowed to
emerge as part of the process for qualitative coding analysis.
4.2.3 Open Coding
The coding process started with a full transcript of interviews of CEOs, trainers for auditing
firm, accounting courses Directors and literature for entry qualification and curriculum for
professional accountancy bodies. The researchers own observations as a professional
accountant was also included. The text was analysed to recognise key words or phrases
connecting to participants‘ description of their experience under study as recommended by
(Spiggle, 1994). The open coding to conceptualise and label the data was unfocused and
recognised all possible codes that may have meaning or relevance to the key question. The
researcher analysed, compared, labelled and categorised data through constant comparison to
form categories and properties. The categorisation processes is shown below in Table 4.2.
4.2.4 Categorising Data
According to Bruner, Goodnow and Austin (1972) to categories is to render discriminably
different things equivalent, to group the objects and event and people around us into classes
and to respond to them in terms of their class membership rather than their uniqueness. In this
case categorising consisted of a process of identifying properties of the individual level 1
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Codes and the specifications of a category. Where the properties of the category changed as a
result of constant comparisons and reclassifying of codes, the category was renamed to
closely reflect the new properties of the category. The categories that emerged after the first
grouping are shown below.
Table 4.1 Sample of Categorising Data (Full Details in Appendix 3)
Subject
Predicate
Memos
1ST
Cate
ACCA training qualifying exam technical accountancy F
CA(SA) training advanced professional accountancy skills F
CA(SA) training entry qualification Certificate in Theory of Accounting F
CA(SA) training entry qualification Degree B Com F
CA(SA) training qualifying exam technical accountancy F
Accountants control finances A
Accountants prepare financial statements A
Accountants prepare management accounts A
Accountants provide financial input to strategy A
Accountants report to management/ board A
Accountants set up internal controls A
Current curriculum articles exposure to how business works B
Current curriculum extra practical training during articles B
Current curriculum foundation B
current curriculum preparation for accountancy career B
Current curriculum adequate as exposure obtained during training B
Accountants use P & L metaphor J
Managers had technical skills J
Accountants technically qualified J
Current curriculum technically focused J
Training Deloittes has 360 hours trainee formal training I
Training Deloittes has business advice programme for managers I
current curriculum communication skills not covered C
current curriculum HR not covered C
Training SAICA acknowledged that not adequate C
Current curriculum no soft skills C
current curriculum no leadership training C
current curriculum no strategic skills training C
Current curriculum not include people skills C
Source: Sample of first set of categories developed for grounded theory – full details in Appendix 3
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The second last column shows those responses which were considered more of opinions
rather than data and at a higher level of abstraction. These were therefore included as memos.
The last column shows the first attempt at separating codes into categories labelled ―A‖ to
―K‖. At this point the categories had not been given any names.
From the first 11 categories the process continued with further comparison as it moved back
and forth, looking for meaningful patterns, comparing members of one category to other
categories and within the category to see if there was need to reconsider composition of some
categories. As the processes continued it was found that some categories were subsumed by
other categories as they were subsets of other categories while other categories were sub-
divided as they appeared to have two or more distinct properties within them. The categories
that emerged after this process were a new set of 7 categories as shown below. The category
names are shown in the last column. Skills were defined in Chapter 1 as they may have
different meanings to different readers. These are;
Soft Skills are behavioural competencies. Also known as Interpersonal Skills, or people
skills, they include proficiencies such as communication skills, conflict resolution and
negotiation, personal effectiveness, creative problem solving, strategic thinking, team
building, influencing skills and selling skills, to name a few (Wikipedia, Soft Skills, 2011).
Strategic leadership is a process wherein those responsible for large-scale organizations set
long-term directions and obtain, through consensus building, the energetic support of key
constituencies necessary for the commitment of resources. (Cowings, 2010)
Table 4.2 Sample of Second set of Categories (Full details in Appendix 3)
Subject
Predicate
1st
Cate 2nd
Cate
Category
ACCA training
qualifying exam technical accountancy
F
F Accounting and finance training
CA(SA) training
advanced professional accountancy skills
F
F
Accounting and finance training
CA(SA) training
entry qualification Certificate in Theory of
Accounting
F
F
Accounting and finance training
CA(SA) training
entry qualification Degree B Com
F
F
Accounting and finance training
CA(SA) training
qualifying exam technical accountancy
F
F
Accounting and finance training
Accountants
control finances
A
B
Accountancy work
environment
Accountants
prepare financial statements
A
B Accountancy work environment
Accountants
prepare management accounts
A
B
Accountancy work environment
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Accountants
provide financial input to strategy
A
B
Accountancy work environment
Accountants
report to management/ board
A
B
Accountancy work environment
Accountants
set up internal controls
A
B
Accountancy work environment
Current curriculum
articles exposure to how business works
B
A
Accountancy work environment
Current extra practical training during articles B A Accountancy work curriculum environment
Current curriculum
foundation
B
B
Accountancy work environment
current curriculum
preparation for accountancy career
B
B
Accountancy work environment
Current curriculum
adequate as exposure obtained during
training
B
B
Accountancy work environment
Accountants
use P & L metaphor
J
B
Accountancy work environment
Managers
had technical skills
J
B
Accountancy work environment
Accountants
technically qualified
J
B
Accountancy work environment
Current curriculum
technically focused
J
B
Accountancy work environment
Training
Deloittes has 360 hours trainee formal
training
I
C
accountancy training limitations
Training
Deloittes has business advice programme
for managers
I
C
accountancy training limitations
Training
Deloittes has business school for training
I
C
accountancy training limitations
current curriculum
communication skills not covered
C
C
accountancy training limitations
current curriculum
HR not covered
C
C
accountancy training limitations
Training
SAICA acknowledged that not adequate
C
C
accountancy training limitations
Current curriculum
no soft skills
C
C
accountancy training limitations
current curriculum
no leadership training
C
C
accountancy training
limitations
current curriculum
no strategic skills training
C
C accountancy training limitations
Current curriculum
not include people skills
C
C
accountancy training limitations
Acquire skills by
Management studies (Post Grad)
L
L
Acquire leadership & soft skills while as CEO
Acquire skills by
Experience
L
L
Acquire leadership & soft skills while as CEO
Acquire skills by
Continuous professional development
L
L
Acquire leadership & soft skills while as CEO
Source: Sample of second set of categories developed for grounded theory - full details in
Appendix 3
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4.2.5 Concepts
Concepts were used to replace codes as abstract illustration of the empirical evidence
gathered in the grounded theory process. Key words were therefore used to protect against
data over load in the analysis as recommended by Allan (2003). The concepts that emerged
are shown below in the second last column. In addition the categories were renamed in the
last column to reflect more the properties of the components of the categories.
Table 4.3 Sample of Concepts Reflected Properties of Categories (Full Details in
Appendix 3)
Subject
Predicate
1ST
Cate
2nd Cate
Category 1
Concepts
Category 2
ACCA
training
qualifying exam technical
accountancy
F
F
Accounting and finance
training
Accounting
competence
Accounting and finance
training
CA(SA) training
advanced professional accountancy skills
F
F
Accounting and finance training
Accounting
competence
Accounting and finance training
CA(SA)
training
entry qualification Certificate in Theory of
Accounting
F
F
Accounting and finance
training
Certificate in
accounting
Accounting and finance
training
CA(SA)
training
entry qualification
Degree B Com
F
F
Accounting and finance
training
degree
Accounting and finance
training
CA(SA)
training
qualifying exam technical
accountancy
F
F
Accounting and finance
training
Accounting competence
Accounting and finance
training
Accountants
control finances
A
B
Accountancy work
environment
control finances
Accountancy work
environment
Accountants
prepare financial
statements
A
B
Accountancy work
environment
maintain accounts
Accountancy work
environment
Accountants
prepare management
accounts
A
B
Accountancy work
environment
maintain accounts
Accountancy work
environment
Accountants
provide financial input to
strategy
A
B
Accountancy work
environment
financial input into
strategy
Accountancy work
environment
Accountants
report to management/
board
A
B
Accountancy work
environment
report to
Management/Board
Accountancy work
environment
Accountants
set up internal controls
A
B
Accountancy work
environment
set up internal control
Accountancy work
environment
Current
curriculum
articles exposure to how
business works
B
A
Accountancy work
environment
articles training
Accounting and finance
training
Current
curriculum
extra practical training
during articles
B
A
Accountancy work
environment
articles training
Accounting and finance
training
Current
curriculum
foundation
B
B
Accountancy work
environment
accountancy
foundation
Accountancy work
environment
current
curriculum
preparation for
accountancy career
B
B
Accountancy work
environment
accountancy
foundation
Accountancy work
environment
Current
curriculum
adequate as exposure
obtained during training
B
B
Accountancy work
environment
technical competence
Accountancy work
environment
Accountants
use P & L metaphor
J
B
Accountancy work
environment
technically focused
Accountancy work
environment
Managers
had technical skills
J
B
Accountancy work
environment
technical competence
Accountancy work
environment
Accountants
technically qualified
J
B
Accountancy work
environment
technical competence
Accountancy work
environment
Current
curriculum
technically focused
J
B
Accountancy work
environment
technically focused
Accountancy work
environment
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Training
Deloittes has 360 hours
trainee formal training
I
C
accountancy training
limitations
Management training
accountancy training
limitations
Training
Deloittes has business
advice programme for managers
I
C
accountancy training limitations
Management training
accountancy training limitations
current
curriculum
communication skills not
covered
C
C
accountancy training
limitations
No communication
training
CEO soft skills
current
curriculum
HR not covered
C
C
accountancy training
limitations
No HR training
CEO soft skills
Training
SAICA acknowledged that
not adequate
C
C
accountancy training
limitations
training not adequate
CEO soft skills
Current
curriculum
no soft skills
C
C
accountancy training
limitations
no soft skills training
CEO soft skills
current curriculum
no leadership training
C
C
accountancy training limitations
no leadership
training
CEO soft skills
current curriculum
no strategic skills training
C
C
accountancy training limitations
No strategic skills training
CEO soft skills
Current curriculum
not include people skills
C
C
accountancy training limitations
no soft skills training
CEO soft skills
Source: Sample of reduction of codes to concepts to reduce data overload as well as rename
some categories - full details in Appendix 3.
An Affinity Diagram was then developed of the Conceptual Model Themes. The objective
was to show how the codes which had been reduced to concepts as explained above link to
the categories. The seven categories under which the conceptual model themes fall are shown
below.
Table 4.4 First Affinity Diagram of concepts and categories
Accounting
and finance
training
Accountancy
work
environment
Accountancy
training
limitations
Central to
organisation
Soft Skills Strategic
leadership
Effort in
acquiring
leadership &
soft skills
Articles
enhance
training
Enthusiastic
attitude
Lack
Management
training
Holistic view listen to staff Appreciate
staff
Employ those
that
compliment
CEO
Develop
accounting
skills
Hard working Employ those
that
compliment
CEO
interact
multiple
stakeholders
Communicate
with
stakeholders
Did socially
responsible
activities
training not
adequate
Qualifying
entry degree
Self select at
enrolment
Accounting &
finance
focused
interact
multiple levels Communicate
with staff
Provide
leadership
Continuous
professional
development
Qualifying
entry
Accounting
Technician
Work long
hours
lack industry
expertise
interact with
whole
company
Deal with
people issues
sell vision Leadership
courses
Qualifying
entry GCSE
Control
finances
No
communicatio
sell strategy Delegate to
staff
Employ those
that
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plus maths &
English
n training compliment
CEO
Ethics
included in
curriculum
Maintain
accounts
No HR
training
Communicate
with staff
managed
multiple
projects
Support &
advice from
mentors
Qualifying
entry
Certificate in
accounting
Financial
input into
strategy
training not
adequate
business focus On the job
training
ex*ere5nce
Over 21 years
no academic
requirement
Report to
Management/
Board
no soft skills
training
holistic view
of issues
Develop
auditing skills
Set up internal
controls
no leadership
training
financial
background
influence
Business
studies
Accountancy
technical
competence
No strategic
skills training
cautious
Study
Communicatio
n
Accounting &
finance
focussed
Set and
achieve targets
Study
Regulations
Ambitious Strategic
planning
Provides
accountancy
foundation
Head finance
unit
Frank talk
with staff
Source: Developed to link concepts to categories
4.2.6 Emerging Theory
Having developed the categories and reviewing the relationships between the categories a
theory began to emerge. Based on that, memos were considered to bring them into the
emerging theory.
4.2.7 Memoing
Memos were used to record ideas with the intention of reviewing them later as an analytical
building block for developing the emerging theory. As Goulding (1999) stated that the
memos facilitates reorientating the researcher at a later date. Most of the memos were
generated during interviews where the participants in response to questions gave personal
opinions rather than concrete data. Elliott and Lazenbatt (2005) states that memo are used to
record the meaning of conceptual ideas and to record ideas for theoretical sampling. They
also state that memos eliminate biases by checking if memos fit into the emerging theory.
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Current curriculum
adequate as can be seen with number of CA s CEOs
A
c
c
o
u
n
t
a
n
c
y
w
o
r
k
e
n
v
i
r
o
n
m
e
n
t
CEOs know their employees well CEO soft skills financial skills CEO Strategic leadership
Leadership success lack CEO Strategic leadership Leadership success
understand the business organisation is in
CEO Strategic leadership
Accountants
need broader appreciation of issues
Accountancy training limitations
I as leader
understand the business organisation is in
CEO Strategic leadership
Leadership skills
I view things with strategic mindset, helicopter view
CEO Strategic leadership
As leader I
motivate people to come with me to that vision
CEO Strategic leadership
Accountants shadow a CEO Central to Organisation As CEOs would need
ability to organise
CEO Strategic leadership
As CEOs would need
leadership
CEO Strategic leadership
As CEOs would need
people skills
CEO Soft skills
As CEOs would need
technical ability
CEO Strategic leadership
The list below shows the memos that were generated and how they were used to enhance the
development of the theory.
Table 4.5 Sample of Memos (Full Details in Appendix 3)
Subject
Predicate
Memo
CEO
took informed risks
Accountancy work environment
CEO honoured my commitment CEO Strategic leadership
CEO demanded results CEO Strategic leadership As an Accountant
had ambition to become a leader
Accountancy work environment
CEO
Honest in my dealing with stakeholders
CEO Strategic leadership
CEO strategic view CEO Strategic leadership
Accountancy work environ
Source: Sample of assessment as to whether memos fit into emerging theory - Full Details in
Appendix 3
The memos fit into the categories that have already been established. The analysis above
showed that the memos fit into the emerging theory. This therefore helped to eliminate the
biased that may have arisen as a result of any prior assumptions that the researcher may have
had.
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4.2.8 Theoretical Sampling
After open coding where the coding was unfocused and open, observations and experiences
were labelled and assembled through constant comparison to form new categories and
properties. (Babchuk, 1997). Memos were incorporated as stated above. This provided the
direction for the analysis before becoming selective. New categories were created for
possible inclusion into the emerging theory. It was noticed that after interviewing 5 CEOs the
responses were more or less the same as the first 5 CEOs interviews. There was no new
information from the CEOs that had not already been gathered. Although the CEOs where the
most important candidates to interview for this research due their background in accountancy
as well as having faced the challenge of transforming from an accountant to a CEO, it was
clear that this group of interviewees had been saturated and therefore needed to consider
other candidates. Graduates intending to pursue a career in accountancy were interviewed,
including professional accountants as well as selected specific literature based on emerging
theory and the respective categories. The table below shows the categories that emerged. The
categories have also been labelled as variables to be used in the development of relationships
for theory building.
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Table 4.6 Theoretical Sampling
Source Subject Predicate Concept Category
Adam CEO
KPIs weighed towards business
indicators Set and achieve targets Level of Leadership skill
Adam
Current
curriculum no business focused
Accountancy curriculum lack
business focus Level of soft skills
Adam
Current
curriculum no management training
Accountancy curriculum lack
Management training Level of soft skills
Chama Accountants focus on finance Accounting & finance focused
Potential to appoint accountant as
CEO
Chama CEO heads the Executive Provide leadership Level of Leadership skill
Characteristics of
leader CEO
academic and professional
qualifications - CA(SA)
Accountancy technical
competence
Extent of Accounting and finance
training
Characteristics of
leader CEO
conveyed his message to
stakeholders via e-mail
CEOs communicate with
stakeholders Level of Soft skills
Characteristics of
leader CEO expert in field
Accountancy technical
competence
Extent of accounting & finance
experience
Characteristics of
leader CEO
has specific and measurable
goals
Set and achieve organisation
targets
Level of Leadership skill
Characteristics of
leader
CEO
provided vision of direction
company during strategic
planning sell vision
Level of Leadership skill
Characteristics of
leader CEO has vision of direction company sell vision
Level of Leadership skill
Characteristics of
leader CEO has written mission Written mission
Level of Leadership skill
Effective Leadership
Skills CEO
communicate vision and
strategies to team Communicate with staff
Level of Soft skills
Effective Leadership
Skills CEO Listened and Not Just Talked Listen to staff Level of Soft skills
Effective Leadership
Skills CEO
set persuasive vision that the
team internalizes sell vision Leadership skill
Joachim Accountants do not have HR training No HR training Level of Soft skills
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Keneilwe
Current
curriculum
under graduate course is
foundation
Provides accountancy
foundation
Extent of Accounting and finance
training
Keneilwe
Current
curriculum
professional coarse lack human
resource courses No HR training Level of Soft skills
Kholeka
As CEOs would
need clear KPIs for value creation Set and achieve organisation targets Leadership skill
Kholeka Accountants
focused on cost saving don't
want to spend finance focused
Potential to appoint accountant as
CEO
Kholeka Accountants narrow focused on finance finance focused
Potential to appoint accountant as
CEO
Kholeka
Current
curriculum lack management skills lack management training Level of Soft skills
Lenny CEO
employed Managers to
compliment CEO Employ those that compliment CEO Effort in acquiring leadership skills
Lenny CEOs
consider even non financial
matters
Accountancy curriculum lacks
business focus Level of Soft Skills
Musonda CEO
delegated work that I could not
do personally Delegate to staff Leadership skill
Nombini CEO
communicate with all
stakeholders Communicate with staff Level of Soft skills
Nombini
Current
curriculum
lack human resource
management to perform as
CEOS No HR training Level of Soft skills
Trevor As good CEO get work done through others Delegate to staff Level of Leadership skill
Trevor As CEO identify opportunities Identified opportunities Level of Leadership skill
Trevor As CEO worked in operations Worked in operations Effort in acquiring leadership skills
Trevor As CEO interfaced with clients Communicate with stakeholders Level of Soft skills
Xolile
Current
curriculum lack management courses Accountancy curriculum lack
Management training Level of Soft skills
Source: Developed to analyse selected literature based on emerging theory.
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The parts of the table highlighted in green shows new codes and resultant new
concepts arising from the theoretical sampling. The categories have been revised to more
accurately reflect the composition of the categories. The new codes do not change the
categories. However the names of the categories have been updated to reflect more
accurately the properties and dimensions of the categories. The new categories are shown
below as variables.
These are added to the Affinity Diagram of the Conceptual Model Themes shown below.
Table 4.7 Second Affinity Diagram of concepts and categories
Accounting
and finance
training
Accounting &
finance
experience
Potential to
appoint
accountant as
CEO
Level of
accountants
interface with
stakeholders
Level of Soft
Skills
Level of
leadership
skills
Effort in
acquiring
leadership &
soft skills
Articles
enhance
training
Set up internal
controls
Enthusiastic
attitude
Financial
input into
strategy
CEOs listen
to staff
Appreciate
staff
Employ those
that
compliment
CEO
Develop
accounting
skills
Accountancy
technical
competence
Hard working Interact
multiple
stakeholders
CEOs
communicate
with
stakeholders
Did socially
responsible
activities
training not
adequate
Qualifying
entry degree
Self select at
enrolment Accounting
& finance
focused
interact
multiple
levels
CEOs
communicate
with staff
Provide
leadership
Continuous
professional
development
Qualifying
entry
Accounting
Technician
Control
finances Work long
hours
interact with
whole
company
CEOs deal
with people
issues
sell vision Leadership
courses
Qualifying
entry GCSE
plus maths &
English
Maintain
accounts
Report to
Management/
Board
CEOs sell
strategy
Delegate to
staff
Employ those
that
compliment
CEO
Ethics
included in
curriculum
Accounting
& finance
focussed
Holistic view Accountancy
curriculum
No
communicati
on training
managed
multiple
projects
Support &
advice from
mentors
Qualifying
entry
Certificate in
accounting
Ambitious Accountancy
curriculum
No HR
training
business
focus
On the job
training
Over 21
years no
academic
Head finance
unit
Accountancy
curriculum
no soft skills
holistic view
of issues
experience
A
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requirement training
Develop
auditing
skills
Accountancy
curriculum lack
Management
training
financial
background
influence
Worked in
operations
Business
studies
Accountancy
curriculum
lacks business
focus
Cautious
Study
Communicatio
n
Set and
achieve
organisation
targets
Study
Regulations
Strategic
planning
Provides
accountancy
foundation
Frank talk
with staff
lack industry
expertise
No strategic
skills
training
no leadership
training
technical
competence
Written
mission
Identified
opportunities
Source : Developed to incorporate theoretical sampling
4.2.10 Theoretical Code
To develop the theoretical codes a set of relationships that proposed a reasonable
explanation of the phenomenon under study as stated by Corbin and Strauss (1990) was
identified. The purpose was to establish the gap between the qualifications and
experience that accountants get in relations to the skills that CEOs require to execute
their tasks once accountants are appointed as CEO, and how this can be addressed. The
purpose was to develop a theory that offered, ―the best comprehensive, coherent and
simplest model for linking diverse and unrelated facts in a useful and pragmatic way‖
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(Morse, 1994). By creating alternative explanations until a best fit that explained the data
most simply was obtained, the theory emerged. The theory was developed indicatively
from empirical data to reach an abstract level. This process included what Gerson (1991)
called supplementation which is systematically elaborating contrasting categories to
provides raw material for theoretical sampling, cross cutting and making the theories
richer. Some of the contrasting categories where, ―potential to be appointed as CEO‖
which contrasted with ―level of soft skills‖ and ―level of strategic leadership skills‖.
Sampling became more focused as the theories stated emerging. This was done in order to
strengthen the findings. The initial theory that emerged was that, “Accountants receive
training in accounting and finance as an accountancy academic preparation for the
work environment. However, this has limitations in term of training and work
experience for the skills required for a CEO. However, due to the Accountants central
role in the organisations they are still selected into the CEO role. The skills that are
limited are strategic leadership skills and soft skills. This then requires extra effort on
the part of appointed CEOs to acquire these skills on the job.”
However the sampling continued by a process of constant comparison (Glaser & Strauss,
1967). This involved exploring differences and similarities across incidents within the data
collected which provided guidelines for collecting additional data. Each incident in the data
was compared with other incidents belonging to the same category, exploring difference
and similarities until no new properties, dimension or relationships emerges thus
saturation was achieved.
4.2.11 Selective Coding
The categories were related with the other categories validating the relationships as a basis
for the theory. Some categories were further refined to find a theoretical meaning. Re-
evaluation of the concepts was then carried out with compatible literature to demonstrate
the fit relationship and to assess whether the available literature may be extended. The
theory then brought together the concepts and integrated them into categories providing an
explanation within the context of the research. A review of the memos that were generated
from the selective coding exercise did not change the categories from those in Table 1.12.
This meant that it had reached saturations as no further coding brought new categories or
change in the theory.
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4.2.12 Theory
The final stage represented the theory, bringing together the concepts and integrating them
into categories which explained the context of the research. The casual mechanism that
explains the phenomenon was developed using a diagram shown below. After several
attempts at developing a relationship that made sense the diagram was finally drawn and a
appropriate explanation for the relationship is as follows. The theory is that “The higher
the extent of training in accounting and finance students and trainee receive, the higher
the potential of being appointed as CEO. This is complemented by high level of
Accounting and finance experience and high level of accountants interface with
organisations stakeholders. However, high level of accounting and finance training
leads to low level of soft skills and leadership skills. The level of soft skills and leadership
skills and potential of appointment of Accountants as CEO affects the level of leadership
and soft skill that CEOs have to acquire on appointment as CEO. This is represented by
a Concern Casual Loop Diagram shown below.
Figure 4.1 Casual Mechanism Explaining the Phenomenon
Concern Casual Loop Diagram (CCLD)
Source : Developed to derive the theory explaining the phenomenon
Level of accountantsinterface with organisation's
stakeholders
Extent of Accounting
& finance training
level of leadership
skills
Level of soft skills
Potential to appoint
Accountants as CEOs effort in acquiringleadership & soft skills on
the job
Extent of Accounting &
finance experience
S
S
O
O
O
O
S
S S
R
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4.2.13 Testing Quality of Grounded Theory
(Corbin, A; Strauss, J, 1998) uses 8 conceptual questions to assess a Grounded Theory
quality. These have been used to assess the quality of the research and came to the
following conclusion.
1. Question: Are concepts generated?
My Answer: Concepts were generated from the codes (see table 1.18)
2. Question: Are the concepts systematically related?
My Answer: They are systematically related as the concepts were used to reduce
the data over load and therefore make the comparisons more manageable
3. Question: Are there many conceptual linkages, and are the categories well
developed? Do categories have conceptual density (richness of the description of a
concept)?
My Answer: This is a process that was carried out through constant comparison to
improve the quality of the categories. The categories subsumed, sub divided, and
regrouped with names changed to reflect closely the properties of the categories.
4. Question: Is variation within the phenomena built into the theory (how differences
are explored, described, and incorporated into the theory)?
My Answer: All variations were taken into consideration by ensuring that the
process of selecting data sources and participants was as diverse as possible to
maximise variation and confrontation of data as explained in the ―Selection of
Participants‖ paragraph above.
5. Question: Are the conditions under which variation can be found built into the
study and explained?
My Answer: The conditions under which the variations can be found were built into
the study by selecting sources of data that were diverse and confrontational and this
was explained in the section on ―Selection of Participants‖ paragraph 4.2.2. For
example by interviewing CEOs who are individuals that are faced with
transforming from Accountants to Managers and then interviewing trainers I was
able to take into consideration possibilities of variations in terms of what trainers
are looking to get out of the students and what students are expecting to get out of
the training they get and therefore identify the gaps in training from different
perspectives..
6. Question: Has process been taken into account?
My Answer: Yes, the process was taken into account.
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7. Question: Do the theoretical findings seem significant, and to what extent?
My Answer: The theoretical findings were significant. The extents of significance
of the findings are dealt with in chapter 5.
8. Question: Does the theory stand the test of time and become part of the discussions
and ideas exchanged among relevant social and professional groups? (pp.270-272)
My Answer: The theory will stand the test of time. The discussion and ideas
exchange among relevant social and professional groups is dealt with in Chapter 5
under ―How Accountants can acquire the soft and leadership skills‖, sub section
―Option 2 Skills based training‖ paragraph 5.4.2.
Creswell (2002) proposes the following questions to consider while evaluating a grounded
theory.
1. Question: Is there an obvious connection between the categories and the raw data?
My Answer: There was a definite connection between the categories and the raw
data. The connection has been shown step by step, starting from the list of sources
of data, to list of interviewees and the responses from the interviews. Thereafter the
responses were coded and codes grouped into categories.
2. Question: Is the theory useful as a conceptual explanation for the process being
studied?
My Answer: The theory that emerged was in my view a clear conceptual
explanation for the process being studied.
3. Question: Does the theory provide a relevant explanation of actual problems and a
basic process?
My Answer: The theory actually provides an explanation of the research problem
which was identified in chapter 1 and based on that options were identified on how
it may be addressed
4. Question: Can the theory be modified as conditions change or further data are
gathered?
My Answer: The theory can be modified as conditions change such as a change in
the curriculum offered to accountants during their training such as the planned
Conceptual framework to be implemented in 2013 by SAICA.
5. Question: Is a theoretical model developed or generated that conceptualises a
process, action, or interaction?
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My Answer: The theoretical model that was developed conceptualises a process of
accountants transforming to managers to carry out functions of a CEO once
appointed
6. Question: Is there a central phenomenon (or core category) specified at the heart of
the model?
My Answer: The core category is the ―potential to appoint accountants as CEOs‖ as
shown in paragraph on Inter-relationship Digraph.
7. Question: Does the model emerge through phases of coding? (e.g. initial codes to
more theoretically oriented codes or open coding to axial coding to selective
coding)
My Answer: The model emerged gradually through the phases from open coding,
axial coding to elective coding. It was a gradual process
8. Question: Does the researcher attempt to inter-relate categories?
My Answer: The research was inter-related the categories in the process of
developing a meaningful relationship that explains the phenomenon.
9. Question: Does the researcher gather extensive data so as to develop a detailed
conceptual theory as well saturated in the data?
My Answer: As explained in the question 4 and 5 of the above (Corbin, A; Strauss,
J, 1998) 8 conceptual questions extensive data was gathered and it took account of
variations.
10. Question: Does the study show how the researcher validated the evolving theory by
comparing it to the data, examining how the theory supports or refutes existing
theories in the literature, or checking theory with participants? (pp.458- 459)
My Answer: The evolving theory was validated throughout the theory building
process, see Validity section in Chapter 5, paragraph 5.9.
4.3 Conclusion
Grounded theory is mostly based on the researcher‘s interpretations, even though
Grounded Theory is generated from data which come from participants. (Moghaddam,
2006). The results show that there is a gap between the skills accountants get in relation to
skills required once accountants are appointed as CEOs. This relates to soft skills and
strategic leadership skills. No attempted were made to develop an answer using ACLD.
However, this is discussed in the implications and various options of answering the
question to address the concern in chapter 5.
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Body of Knowledge
My Research
My Research
Chapter 5 : Conclusions and Evaluations
Structure of Dissertation
Source: Perry 2002
5.1 Introduction
This chapter looks at the possible option of addressing the concern. As was explained in
the previous chapter, there is no one way of preparing accountants for management
positions. The initial concern was that accountants in a number of cases are appointed as
CEOs. However, there training does not include management training. The research set out
to establishing, how an accountant can be transformed to be able to perform functions of
a CEO once an accountant is appointed to the CEO position. The research specifically
aimed to establish what the gap is between the qualifications and experience that
accountants get in relationship to the skills that CEOs require to execute their tasks once
CHAPTER 1 INTRODUCTION
& OVERVIEW
Situation, Concern Question, Answer, Rational, Ethics, Conclusion
CHAPTER 2 LITERATURE
REVIEW
Review of literature relevant to this research
CHAPTER 5
CONCLUSION &
EVALUATION
Significance & implication of results & evaluation of results
CHAPTER 4
RESULTS
Presentation and analysis of the collected data CHAPTER 3
METHODOLOGY
Research process design
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accountants are appointed as CEOs. In addition the research set out to establish “How the
gap in skills may be addressed? A literature review of the current body of knowledge
revealed that parent discipline of the ―skills required for a leader or a manager‖ is
adequately covered. However, the literature on skills required specifically by those that
have been trained as professional accountants, to perform functions of a CEO once an
accountant is appointed, stretches the knowledge of what has been previously extensively
written on the skills expected of a manager and more specifically of a CEO or a leader. A
distinction was made between leadership and management as the research was focused on
skills expected of a CEO. Most literature available does not refer specifically to CEO but
are mostly based on management and leadership skills. Thus the understanding of the
difference between management and leadership was important. Leadership is defined as a
"process of social influence in which one person can enlist the aid and support of others
in the accomplishment of a common task.” (Chemers, 2002). On the other hand
management is defined as “acts of getting people together to accomplish desired goals
and objectives”. I argue that all CEOs are managers but not all CEOs are leaders. This can
be supported by trend which was especially common a few years back when information
was not freely available in the days before the internet. A number of managers used
command and control. Manager‘s position acquired by reason of being appointed into that
position, required that subordinates follow the managers‘ command for a pay or suffer
consequence for not disobeying his/her commands to accomplish organisations objectives.
On the other hand leadership is earned by reason of the person‘s charisma. Followers
identify with the leaders vision. The follows may not even get anything in return and have
a choice to either follow or not to follow the leader‘s directions.
It is therefore desirable for a CEO to have both management and leadership skills. The
research was therefore based on the premise that the accountants appointed to CEO
positions require both management and leadership skills.
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5.2 Comparing Literature Review with Results of Grounded Theory to
Establish Significance
5.2.1 Literature Review of Skills Required By Managers
The literature review revealed that there are different views as to what skills are required
by managers to carry out their task. However, the most common ones identified were;
Communication;
Listening and feedback;
Motivation;
Interpersonal;
Decision making;
Problem solving;
Organisations management;
Strategic planning and execution;
These should be supplemented by these leadership skills;
Self awareness;
Self control;
Social skills;
Visionary;
Charismatic and ethical;
Trustworthy;
Thoughtful;
Considerate;
Confident;
5.2.2 Literature Review Regarding Skills Acquired By Accountants
The literature review of skills acquired by accountants as per Deloitte (2008) four-faceted
model stated that the role of a CFO is that of a catalyst, strategist, steward and operator.
While IBM presented four finance functions profile as that of a scorekeepers, disciplined
operators, constrained advisors and value integrators. KPMG is of the opinion that CFOs
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can be categorised as: internal growth leaders, cost cutters, external growth leaders,
business transformers, finance specialists and risk moderators (KPMG, 2010).
SAICA further states that key focus areas of CFOS are;
Planner and strategist - Providing financial leadership through financial planning
and strategies aligned with business strategies;
Compliance and transaction officer - Taking responsibility for transactional and
financial reporting, compliance and strategy implementation;
Growth and innovation catalyst - Continuously finding new ways of creating
shareholder value by looking outside of the organisation;
Corporate governance - Helping to build corporate governance structures, taking up
responsibilities of the organisation as a good corporate citizen and nurturing
relationships inside and outside the organisation. The report is based on a
questionnaire sent to the CFOs of the 40 largest companies listed.
The literature review shows that the skills held by accountants do not include all the skills
required to perform that of the CEO. This confirmed the grounded theory hypothesis that
the skills acquired by accountants are limited in terms of soft skills and leadership skills
that they are required to perform the work of CEO once accountants are appointed into that
position.
5.3 Answer to the Question “What”
“what the gap is between the qualifications and experience that accountants get in
relationship to the skills that CEOs require to execute their tasks once accountants are
appointed as CEOs?”
The grounded theory revealed that the training and experience received by accountant is
focused on accounting and finance. CEOs have to acquire these skills while in the position
which I maintain is not the most effective way of acquiring these skills. Grounded theory
revealed that there are gaps between skills acquired by accountants and skills expected
of CEOs. These are soft skills and strategic leadership skills. This is therefore the
answer in terms of what is the skills gap. This was consistent with the literature review as
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shown above which showed that the soft skills and leadership skills are not adequately
catered for by the current curriculum.
Interviews during the data gathering process of the grounded theory showed that most
current CEOs with accountancy back ground believe that training provided in its current
form does not cover sufficiently the issues of soft skills and leadership skills, although
some consider experience as the best teacher in acquiring these skills. Historically
management has been held by the British as akin to parenting, a role of great importance of
which no training, preparation or qualification was required, the implication being that
experience is the only possible teacher and characters the only possible qualification. (Rees
& Porter, 1984). Mr David Brown of Impala Platinum Mine in response to the question,
―How are skills required to perform the work of a CEO acquired, answered that base
skills are gained from University and post graduate degrees and writing of the professional
accountancy board examinations, but there is no substitute for experience.‖
Perhaps this is the view that was held by accountancy professional bodies, whose focus had
been more to train accountants and soft skills and leadership skills to be acquired through
experience. SAICA has developed a new competency framework that prepares for
leadership. I also hold the view that these skills can be taught and prepare accountants
for possible management and leadership responsibilities rather than during the period
when in the CEO position.
5.4 Answer to the Question “How”
“How can Accountant acquire the Soft and Leadership skills?”
There are a number of different ways that these skills may be acquired. This will be the
answer to the question “How Accountant can acquire the Soft and Leadership skills” and
is considered as a number of options below. Individual accountants may consider the
different options based on their individual circumstances. There was therefore no
prioritising of one option over another. This was the reason for not considering a possible
answer in Chapter 4 above, so as not to prescribe an answer. In addition not all accountants
have intentions to taking up management positions, they may be perfectly content with
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merely pursuing the accountancy career and therefore considering management and
leadership skills may not be relevant.
There are a number of ways that an accountant may acquire soft and leadership skills
depending on the circumstances of the individual accountant. There is no ―one shoe fits
all‖ regarding the acquisition of these skills.
5.4.1 Option 1 Professionalization of Executive Skills
One approach would be Professionalization of executive skills. A number of
organisational Board of Directors have developed a taste for outside candidates. This has
resulted in a search for individuals who possess the highest level of executive skills
regardless of the industry they come from. It is therefore conceivable that executive
professionalization has occurred via the development of a universal set of skills.
Executives chosen display not only breadth of skill use but also an ability to deploy a wide
range of executive competencies. This can be seen from a number of example such as the
appointment of Ms Maria Ramos who after leaving National Treasury as a Director-
General, joined Transnet as CEO and recently was appointed as CEO of ABSA Bank.
Another example is the appointment of Mr Sizwe Nxasana formerly CEO of Telcom, now
the CEO of First Rand. If these skills set can be taught then it is possible that accountants
may acquire these skills in addition to the current accountancy training in preparation for
possible appointment to CEO positions.
5.4.2 Option 2 Skills Based Training
Another option is through in house training provided by employers. Deloittes for example
is currently providing in house training to supplement the accounting and finance training
and experience with other management and leadership skills. Mr Alex Wise of Deloittes
states that ―We have acknowledged that and SAICA as well that there is a limit in terms
of management and leadership skills and they are revising the competence model. The
way Deloittes has responded is we have a business school for our training, taken MBA
courses and built a three year curriculum for all article clerks. When they become
managers they attend a business advice programme and a trust business adviser level
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programme at audit partner level. Right through all the levels there is a business and
profession programme. Trainees for example get 360 hours of formal training.”
5.4.3 Option 3 Revise the Current Accounting And Finance Curriculum
Another option is to change the current curriculum for accounting and finance training.
SAICA is currently reviewing the competency model as stated in Chapter 2 above.
SAICA‘s intention is for CAs to learn leadership and prepare for management position,
including CEO. But the competency model does not show specific disseminating of
management skills. The competency model intends to address the skills across the
curriculum (e.g. communication, problem solving, team work, time management). Some
may be addressed in dedicated courses (e.g. legal concepts, IT) while others are directly
addressed in other courses. Perhaps it will be clearer once the universities and training
providers have developed their curriculums. Other professional bodies such as Association
of Chartered Certified Accountants of United Kingdom do from time to time ask members
to provide input into the development of training programme. There could be an
opportunity to influence the direction that it takes addressing the skills requirements.
5.3.4 Option 4 Maintain Current Curriculum and Individual Accountants
Supplement Training with Management Courses Such as MBA
Those that want to pursue further careers in management would supplement the training
with management courses while those that do not want to, may not pursue further studies
and training. This has been the current practice, but my view is that trainee accountants
should be informed upfront that the training does not include management and leadership
courses and those that want to supplement their management and leadership skills may
have to supplement their training with other programmes. At least the trainees would be
informed and would then make a choice on whether they need to study further or not.
5.4 Contribution to the Body of Knowledge
The contribution to the body of knowledge is that the current training provided to
accountants does not include all the skills required of an accountant to perform the
functions of a CEO. In particular the training does not cover soft skills and leadership
skills. They are called contribution as it is the first time that this has been considered in the
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South African context. Soft skills and leadership skills were defined in paragraph 1.1.1.
The hypothesis that was developed is that “The higher the extent of training in
accounting and finance students and trainee receive, the higher the potential of being
appointed as CEO. This is complemented by high level of Accounting and finance
experience and high level of accountants interface with organisations stakeholders.
However, high level of accounting and finance training leads to low level of soft skills
and leadership skills. The level of soft skills and leadership skills and potential of
appointment of Accountants as CEO affects the level of leadership and soft skill that
CEOs have to acquire on appointment as CEO.
5.5 Implication for Further Research
The may be further research on the issue of skills acquired by accountants in relation to
skills expected of accountants performing functions of a CEO universally. This can look
at other continents to see whether the results will be the same. This would be particularly
interesting to research in China were leadership and management is slightly different from
the west. It will be interesting to find out what management and leadership skills are
required.
5.6 Theoretical Implications of the Research
There are no implications for the wider body of knowledge of the parent theory as shown
in chapter 2 of the literature review. This is due to the fact that the challenge is specific
within the current accounting and finance training in terms of providing soft skills and
leadership skills and not with the management and leadership skills in general which is
adequately covered and therefore this research does not identify any areas needing change.
5.7 Relevance
The concern is relevant to the situation. The concern arises from the situation where
accountants are appointed in a number of circumstances to CEO positions, yet their
training and experience does not include soft skills and leadership skills. This then requires
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that CEOs acquire their skills relaying on experience while in the job. There is therefore a
good fit between the two. The stakeholder analysis using SSM also shows that even by
considering the concern from different stakeholder perspectives there were no conflicting
views of the concern. The concern was independent of any particular perspective. The
Concern C is therefore relevant in the situation S. In other words S adequately explains
why C is a concern. The concern if not addressed could lead to accountants appointed as
CEO being unable to perform to expectation especially during an economic down turn
when there is very little room for making errors.
5.8 Utility
The Concern-Question–Answer link has been established through Answering the concern.
This was answered in chapter 5 with multiple options that could be implemented to address
the concern depending on the accountant‘s individual circumstances. By answering the
question, the concern relating to acquiring soft and leadership skills, the skills limitations
experienced by accountants as they are appointed to CEO positions was addressed. This is
an answer that has taken into consideration the interests of all stakeholders and therefore
will enjoy wide support and therefore higher chance of success.
5.9 Validity
5.9.1 Dependability and credibility
The research was thorough. The use of system thinking tools to develop the hypothesis
as explained in chapter 3 and motivated the selection of the tools provides comfort that
the research dependability. The carefully selected system thinking tools were
applied energetically throughout the research from chapter 1, 4 and 5. The selection of
participants despite the difficulty expected in setting up interviews with CEOs was
carefully conducted to ensure that candidates that would provide valuable data to the
research were selected and that all stakeholders that provide different views were
selected. Sources of data were also diverse to ensure that the conflicting and diverse data
was included to eliminate any possible bias, that could arise. Bias was further eliminated
by checking that memos fit into the emerging theory during the grounded theory
processes. Triangulation occurred during the data gathering stage and theory building
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stage, as well as after developing the theory to compare with the literature review to
assess whether the findings agree or contradict the outcome of the literature review also
provided credibility and dependability.
5.9.2 Transferability
The answer is transferable in that answer may be applied to any accountant in South
Africa. It can be applied to accountants working in industry or commerce working in
auditing firms.
5.9.3 Confrimability
The research was carried in such a way that every step was explained clearly to enable
another research to carry out the research and derive the same conclusion. An audit trail
was therefore developed. I am confident that the same research done by another
individual will yield the same results having followed the same audit trail.
5.10 Ethical Implications
Using the Velasquez approach 4 key questions were considered as shown below:
Does the action, as far as possible, maximize social benefits and minimize social
injuries?
The action will generate the greatest good for a greater number of people. As accountants
with wider skills sets will perform better, be better prepared for the challenges of stirring
the organisation ship once at the helm of different organisations with a positive impact on
the citizens.
Is the action consistent with the moral rights of those whom it will affect?
The actions did not violate any moral rights of anyone involved. The answer is not
prescribe an option but points out the possible choices that would be available and it would
be up to the individual accountant to choose which option is appropriate based on each
person‘s circumstances.
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Will the action lead to a just distribution of benefits and burdens?
The actions to not relate to distribution of any benefits or burdens but merely an increase in
the skills base that would be available to accountants. This will be in the interest of all
those affected.
The degree of care shown in the implementation of the answer.
The answer has not been implemented. Implementation if it had to occur would exercise a
high degree to care to ensure that the students/ trainees are not over loaded with a
curriculum that is too difficult to accomplish if the answer were to be implemented by the
professional bodies changing the curriculum. Other options would be based on the
individual‘s choice.
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APPENDIX A: INTERVIEW SCHEDULE
Interview Schedule
Categoy Name Company Status Date
Trainers Alex Wise Deloittes Done
2 Enrico Uliana UCT Done 22 Nov
Graduates Nombini Ntlahla DPE Done
3 Keneilwe Matlala DPE Done
Xoilile Mahlangu DPE Done 9/11/10
Professional Adam Seedat DPE Done 1/11/10
Accountants Musonda Chipalo IFC Done 12/11/10
5 Lenny Dhliwayo GSB Done
Chama
Kamukwenda ACCA Done
Kholeka ACCA Done
CEOs
Joachim
Vermooten DPE Done
4 David Brown Impala Mine Done 22 Nov 15:00
Mike Brown Nedbank Done Done
Sizwe Nxasana First Rand Done 24 Nov, 9:30
Partner Shelly Nelson Deloittes Done 24 Nov
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APPENDIX B: SAMPLE OF INTERVIEWS
The names have been withheld to maintain the confidentiality.
Candidate No 1
1. In my view chances of an accountant ending up in CEO position are reasonably high. Is the training provided to accountants adequate to prepare them for such eventualities? Yes it is adequate. I have not kept very close with recent developments and with the current university teachings but I think these would be similar characteristics to the ones I was familiar with.
2. What critical skills have been essential to perform well as a CEO, especially coming from an Accounting background? A number of characteristics that one needs to display 1. Organization- being a chartered accountant - a methodical approach helps to deal with the complexity of today’s problems. 2. Innovativeness need to think outside the box, think beyond what you have been taught, being able to find solutions that are not self evident. 3. Discipline, a rigorous sound qualification prepares one to approach issues with that mind set, 4. an important element is the ability to listen, having sat for many hours in lectures, prepares you to listen, always accept that you never know all the answers and need inputs from others.
3. How are these skills acquired, through accounting qualifications, other management courses or through experience? Base skills are gained from University and post graduate degrees and writing the board, but there is no substitute for experience, you have vast amounts of theoretical knowledge but it is how you use it that is important, using it to deal with practical problems. So it comes through experience and experience is time, there will be time you try to condense it and when it will be a far more intense experience in short periods of time but generally it does take time.
4. What would you recommend in addition to current curriculum to prepare accountants for management positions? I think the gaps would be more practical in flavor, there is a more theoretical imparting of knowledge. Adding to a practical flavor, particularly to the commercial side. More accountants end up in commerce. HR and people interaction, accountants don’t always have the best communication skills, empathetic approaches to life. I was least equipped in dealing with people issues. A lot of it is instinctive and a lot of it is experiential. But the area where we are not exposed is dealing with people and at the end of day even though we are accountants we have to deal with people.
5. In the absence of changes to the curriculum of accounting qualification what
would you recommend individual accountants to do to prepare themselves for possible appointment into management positions? There is no substitute for hard work, be prepared to put in the hours, listen to people within the organization, and learn as much as possible about the organization, hustle, and show
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enthusiasm, a willingness to get down to work, show dynamic energy. By taking those together with the knowledge that one has one will be able to prepare himself or herself for the challenge. CFO is one of the best roles in the company see an overview of the company, insight is more available to the CFO. The holistic view, view the company in totality helps to prepare the CEO.
6. What do you consider are the challenges faced by Accountants generally when they end up in a CEO position? I think for myself, becoming head of a mining company, usually run by mining people, this is the thing that one has to overcome, greatest challenge is not being an expert in the area that company is involved in and that could be perceived as a drawback. But I disagree with that generally Accountants are quick learners, being able to absorb vast amounts of information and being able to assess and use that information effectively and quickly are the biggest strengths. The biggest challenge is being pigeon holed as an accountant and not being seen as someone who can move between disciplines.
7. Would the skills required for a CEO in your organization be different if the organization was different, i.e. different level of education of staff, different competitors, subordinates maturity etc? Most skills are generic that enable one to jump from CFO to CEO. Ensure you understand your strengths and weakness and make sure that you appoint those with the relevant skills who will augment your skills. You cannot be an expert in everything
8. To what extent is your management influenced by desire to focus on financial matters at the expense of other managerial aspects? People do make it a point, but I tend to think we are in the business to make returns for stakeholders. The number of stakeholders has proliferated over a number of years and the challenge is to adapt to the changed business model. Having recognized that there are different stakeholders that require returns from the company, other than financial returns. At the end the day we can only satisfy the stakeholders if we are profitable business. Each element of the business has a P& L. I keep a P&L for each area of the business not necessarily financial. But a P & L in terms of pros and cons. Out of all the disciplines it is most geared towards having a financial understanding of the business.
9. How do you balance, family, business, spiritual, physical, emotional, social skills with the job? It is difficult. It is tricky, advice to younger people is to make sure you get the balance right. I try and make time available for the family. I have reduced my weekends workloads. I would rather work late during the week but leave weekend for family.
10. Did you expect to end up as a CEO/Manager or did it come as an unexpected development? I did not plan to become CEO though, planned to be CFO but liked to get involved in all aspects of the business. Now that I got it I am honoured. I will try
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to discharge my duty to best of my ability. I have learnt a lot as well over the four years. I am doing a few things right but still make mistakes. Traditional strategic thinking (1/3 of time), people management/operation (1/3 of time), stakeholder engagement (1/3 of time).
4½ years in auditing, at the back of my mind I knew I would not stay in the profession.
As an accountant it does not influence my risk taking unduly. I take informed risks
though some people think we are risk averse. But this is not the case. I am going in
with my eyes open.
Candidate No 2
1. What challenges do you see accountant facing when put into management positions? From observation challenge is ability to multitask. Often articles working on single project focus. Managerial position various task, battle o multi task, different level of communication. Second, managing people, in article task focus and doing, in manager directing efforts of other people, battle in mind set, job is direct other people, follow up, fall back on doing thing, that is where they see value. Don’t see value in directing or over see other people
2. What do you consider are the critical skills essential to perform well as a manager? Effective communication, project management skills, in commerce need technical skills, inter personnel skills,
3. How can these skills be acquired, is it through accounting qualifications, other management courses or through experience? I look at education section, best is on the job training, there is space for formal learning intervention
4. Do you provide training for Accountants to bridge the gap? We provide regularly New
Manager induction course, delegation, communication, technical skills, 40 hour, week long
5. In my view chances of an accountant ending up in CEO position are quite high is the training provided to accountants during the academic and professional training adequate to prepare them for such eventualities? It is a more leadership skills, some have better ability, broad business acumen, though knowledge of the industry, intangible, X factor staff. Another missed most today, being implementing execution, strong follow up
6. What would you recommend in addition to current curriculum? We have
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acknowledged that and SAICA has acknowledged that and they are revising the competence model. The way we have responded we have a business school for our training, taken MBA courses and built a three year curriculum for all article clerk, when they become managers have a business advice programme. Trust business adviser level at audit partner. Right through all the level there is a business and profession. Trainee get 360 hours of formal training
7. In the absence of changes to the curriculum of accounting qualification what would you recommend individual accountants to do to prepare themselves for possible appointment into management positions? Skipped
8. In addition to leadership skills and traits what makes a leader successful?
Important, being able to direct effort of people, exceptional with people, fair on
people and hard on performance, clear target, clear vision, know yourself well
understand your leadership style and be adaptable
9. Do Accountants make good CEOs or are there challenges that may be addressed? If so what are these challenges? Depend on personal attitude. Some have broader interest to move out of finance. Personal research, often trainee if stay in auditing for less than 2 years, they can take risk after that they are risk averse. Advice to accountants, stay in auditing for two years then move out if your plan to go into commerce. Otherwise lose the urge. Accountants are very analytical. Engineers are solutions focused. Accountants are problem focused.
We should manage the risk, skills are there but attitude is lacking. A business
simulation game played between partners and trainee end up with trainees
winning due to trainees being more risk takers.
Candidate No 3 1. What are the critical skills that you consider when assessing the CEO’s
capabilities when loan application?
Good man management skills, ability to put together a good team,
appropriate delegation, ability to focus on the big picture. 2. What do you consider is the best way to acquire these skills as a qualified
accountant?
practice i.e. building up experience in actual working experience.
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3. What is the best approach to prepare an accountant for a management position?
practice i.e. building up experience in actual working experience. 4. Possibility of accountants ending up in managerial or CEO position are quite high.
Is the training provided to accountants adequate to prepare them for such eventualities?
I do not believe one can teach management skills, but rather they can be acquired through experience, supplemented by in-job training.
5. If not how may accountants bridge this gap? 6. To what extent for accountant that end up in management positions, are their
management practice influenced by desire to focus on financial matter such as cost control at the expense of other management functions. How does this affect their performance?
It depends on individuals. Some are able to adapt to management and move away
from the details to look at the big picture. Others are not able to make a
successful adjustment and become and tend to micro-manage.
7. How can the desire to focus on finance at the expense of other functions be avoided
if the challenge exists?
I do not see any challenge. Proper accountants are trained to look at the big
picture as well as the small picture. 8. Do you have any other related thoughts on this matter? None Candidate No 4
1. What do you consider are the critical skills essential to perform well as a CEO?
A CEO should be good at leading his team to achieve business objectives.
They should have a clear vision of where they want to take the organization
and be good
motivators so that they can motivate all staff to work to achieving the
organization’s goals
Ability to see the big picture and translate it into actionable targets for the
organization
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Attract and retain talent in an organization 2. What do you consider is the best way to acquire these skills as a qualified
accountant?
Accountants can gain the required skills through experience and formal
training.
Accountants should take responsibilities outside the traditional number
crunching functions and assist their organizations with other process and
soft matters that organizations deal with.
Formal training will expose Accountants to other critical business
fundamentals like dealing with soft problems which will enable
Spend time understanding why other organizational functions are required
and what they do
Be open minded and be open to new ways of thinking and stop seeing
everything through the eyes of financial standards (IFRS, IAS etc)
3. What is the best approach to prepare an accountant for a management position?
They should have a team to manage so that they acquire human dynamics
skills
Rotate in business functions to appreciate what the rest of the organization
does
Expose them to other operational aspects of the business(HR, IT, Legal,
Procurement etc)
4. Possibility of accountants ending up in managerial or CEO position are quite high. Is the training provided to accountants adequate to prepare them for such eventualities?
No, they should understand operations management before becoming CEOs
5. If not how may accountants bridge this gap?
Accountants are detailed people, they need to elevate themselves from
detail
Surround themselves with people from other backgrounds not necessarily
accounting
Gain exposure to general management
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Stop seeing numbers and costs in everything and make a conscious effort to
focus on non- financial matters
6. To what extent for accountant that end up in management positions, are their
management practice influenced by desire to focus on financial matter such as cost control at the expense of other management functions. How does this affect their performance?
Focusing on cost control will be detrimental to their performance since
financial control is not the only measure of success for companies
Understanding the value of other non-financial measure
6. How can the desire to focus on finance at the expense of other functions be avoided
if the challenge exists?
Employ a good accountant to worry about the numbers so that they can
free themselves up to other operational matters
8. Do you have any other related thoughts on this matter? None
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APPENDIX C: EVIDENCE OF GROUNDED THEORY PROCESS
Table: Categories Data
Subject Predicate Memos
1ST
Cate
ACA training articles puts accounting learning into context F
ACA training develops accounting skills F
ACA training entry qualification degree F
ACA training entry qualifications AAT F
ACA training entry qualifications GCSE include maths & English F
ACA training ethics training supports business decision making F
ACCA training advanced professional accountancy skills F
ACCA training Certificate in Accounting Technician F
ACCA training Degree F
ACCA training GCSE including English and Maths F
ACCA training over 21 years no academic qualification required F
ACCA training qualifying exam technical accountancy F
CA(SA) training advanced professional accountancy skills F
CA(SA) training entry qualification Certificate in Theory of Accounting F
CA(SA) training entry qualification Degree B Com F
CA(SA) training qualifying exam technical accountancy F
CPA training auditing and attesting F
CPA training business environment and concept F
CPA training communication F
CPA training Financial accounting and reporting F
CPA training Regulations F
Current curriculum academically focused memo
CEO hustled for results A
CEO work hard A
CEO work Long hours beyond normal 8 hours A
Accountants self selection at enrolment A
As CEO with Accountancy background I used financial skills A
As Leader I work Long hours beyond normal 8 hours A
Accountants control finances A
Accountants prepare financial statements A
Accountants prepare management accounts A
Accountants provide financial input to strategy A
Accountants report to management/ board A
Accountants set up internal controls A
Curent curriculum articles exposure to how business works B
Curent curriculum extra practical training during articles B
Current curriculum foundation B
current curriculum preparation for accountancy career B
Curent curriculum adequate as exposure obtained during training B
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Accountants use P & L metaphor J
Managers had technical skills J
Accountants technically qualified J
Current curriculum technically focused J
Training Deloittes has 360 hours trainee formal training I
Training Deloittes has business advice programme for managers I
Training Deloittes has business school for training I
Training
Deloittes has three year MBA curriculum for articled
clerks I
Training
Deloittes has Trust business adviser programme for
partners I
Training revising competence model I
As an Accountant I set goals for my self A
As accountant Aspired to but not expect to be CEO A
Current curriculum learn about all org functions G
As accountant has holistic view, most decision involve CFO G
Accountants trained on different business sectors through articles G
Accountants supervise accounting staff G
As an Accountant I worked towards partnership G
Managers interacted with multiple stakeholders H
Accountants central to organisation H
Accountants sign off on most decisions H
Accountants interact with multiple levels during articles training H
As an Accountant interact with whole company H
CEO listen to staff E
CEO communicate with all stakeholders E
CEO communicated with staff regarding their concerns E
CEO asked input from other E
CEO communicate with stakeholders, through email, meetings E
CEO dealing with people issues E
CEO listened before reacting E
CEO Not interrupting staff when they are talking E
CEOs Sell strategy to staff who do the job E
As CEO I communicated with staff E
As CEO I interacted with staff E
Leadership skills got team involved from start E
As CEO I motivated my staff through encouragement E
As leader I did socially responsible activities e.g. sponsorships A
CEO directed effort of others D
CEO shared his vision D
CEO accepted I did not know every thing D
CEO required work to be done D
CEO requires got things done through others D
Managers directed effort of others D
As CEO I directed my staff D
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As Leader I acknowledge good work by appreciation D
As Leader I acknowledge good work by reward D
As leader I got things done through others D
As leader I sell my vision to stakeholders D
Current curriculum include ability to get things done through other D
Leadership skills took team to direction required D
Leadership skills got buying in from stakeholders D
Manager got audit field work carried out work through others D
Manager was not able to do all work on my own D
CEO Empower people and hold them accountable E
Managers managed multiple projects G
CEO focus on business not just finance G
CEOs are not CFOs responsible beyond finance G
Leadership skills
I started by looking at the Financial position before other
issues G
Manager was able to see the big picture before detail G
Manager saw the big impact before going into detail G
Manager saw the cause and effect of action before acting G
Managers developed clear measurable targets K
CEOs developed clear strategy through annual strategic plan K
As leader I encourage staff to be honest and not sugar coat reality K
Manager carried my staff along to my vision K
CEO appointed Directors that had skills I did not have C
As Accountant pigeon holed as finance focused only C
CEO was challenged due to lack of industry expertise C
current curriculum communication skills not covered C
current curriculum HR not covered C
Training SAICA acknowledged that not adequate C
Current curriculum no soft skills C
current curriculum no leadership training C
current curriculum no strategic skills training C
Current curriculum not include people skills C
CEO took informed risks memo
CEO honoured my commitment memo
CEO demanded results MEMO
As an Accountant had ambition to become a leader memo
CEO Honest in my dealing with stakeholders memo
CEO strategic view memo
Current curriculum adequate as can be seen with number of CA s CEOs memo
Current curriculum prepares for senior positions memo
CEO Choose the right people that can deliver memo
CEO upright on dealing with stakeholders memo
CEO Develop staff trust Memo
Current skill adequate memo
CEO do things in a structured way memo
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CEO find solutions that are not self evident. memo
CEO found solutions that were not self evident memo
CEO innovative memo
CEO learned quickly memo
CEO thought beyond what I had been taught memo
My CA
qualification enabled rigour approach to issues memo
CEO enthusiastic memo
Training not adequate memo
Accountants unable to multi task memo
Accountants face communication challenges memo
Accountants task focused memo
Accountants unable to direct others memo
Managers adaptable memo
Managers clear vision memo
Managers communicated with staff Memo
Managers fair on people memo
Managers hard on performance memo
Accountants trained to respect deadlines memo
Accountants need broader appreciation of issues memo
Accountants training head start memo
CEOs Allow staff to error & learn from it memo
CEOs know their company well memo
CEOs know their employees well memo
Leadership success financial skills memo
Leadership success lack memo
Leadership success understand the business organisation is in memo
Accountants need broader appreciation of issues memo
CEOs have open minds memo
current curriculum well equipped memo
Technical
industries requires specialised skills memo
As CEO I lead my staff to my vision of where company should go memo
I as leader understand the business organisation is in memo
Leadership skills I view things with strategic mindset, helicopter view memo
As leader I motivate people to come with me to that vision memo
Source: Developed for first set of categories of grounded theory
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Table: Second set of Categories
Subject Predicate
1st
Cate
2nd
Cate Category
ACA training
articles puts accounting learning into
context F F Accounting and finance training
ACA training develops accounting skills F F Accounting and finance training
ACA training Qualifying entry degree F F Accounting and finance training
ACA training entry qualifications AAT F F Accounting and finance training
ACA training
entry qualifications GCSE include
maths & English F F Accounting and finance training
ACA training
ethics training supports business
decision making F F Accounting and finance training
ACCA training
advanced professional accountancy
skills F F Accounting and finance training
ACCA training
Qualifying entry Certificate in
accounting F F Accounting and finance training
ACCA training Qualifying entry degree F F Accounting and finance training
ACCA training GCSE including English and Maths F F Accounting and finance training
ACCA training
over 21 years no academic
qualification required F F Accounting and finance training
ACCA training
qualifying exam technical
accountancy F F Accounting and finance training
CA(SA)
training
advanced professional accountancy
skills F F Accounting and finance training
CA(SA)
training
entry qualification Certificate in
Theory of Accounting F F Accounting and finance training
CA(SA)
training entry qualification Degree B Com F F Accounting and finance training
CA(SA)
training
qualifying exam technical
accountancy F F Accounting and finance training
CPA training auditing and attesting F F Accounting and finance training
CPA training business environment and concept F F Accounting and finance training
CPA training Communication F F Accounting and finance training
CPA training Financial accounting and reporting F F Accounting and finance training
CPA training Regulations F F Accounting and finance training
Current
curriculum academically focused
CEO hustled for results A B Accountancy work environment
CEO work hard A B Accountancy work environment
CEO
work Long hours beyond normal 8
hours A B Accountancy work environment
accountants self selection at enrolment A B Accountancy work environment
As CEO
with Accountancy background I used
financial skills A B Accountancy work environment
As Leader I
work Long hours beyond normal 8
hours A B Accountancy work environment
Accountants control finances A B Accountancy work environment
Accountants prepare financial statements A B Accountancy work environment
Accountants prepare management accounts A B Accountancy work environment
Accountants provide financial input to strategy A B Accountancy work environment
Accountants report to management/ board A B Accountancy work environment
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Accountants set up internal controls A B Accountancy work environment
Current
curriculum
articles exposure to how business
works B A Accountancy work environment
Current
curriculum extra practical training during articles B A Accountancy work environment
Current
curriculum foundation B B Accountancy work environment
current
curriculum preparation for accountancy career B B Accountancy work environment
Current
curriculum
adequate as exposure obtained
during training B B Accountancy work environment
Accountants use P & L metaphor J B Accountancy work environment
Managers had technical skills J B Accountancy work environment
Accountants technically qualified J B Accountancy work environment
Current
curriculum technically focused J B Accountancy work environment
Training
Deloittes has 360 hours trainee
formal training I C accountancy training limitations
Training
Deloittes has business advice
programme for managers I C accountancy training limitations
Training
Deloittes has business school for
training I C accountancy training limitations
Training
Deloittes has three year MBA
curriculum for articled clerks I C accountancy training limitations
Training
Deloittes has Trust business adviser
programme for partners I C accountancy training limitations
Training revising competence model I C accountancy training limitations
As an
Accountant I set goals for my self A H Accountancy work environment
As accountant Aspired to but not expect to be CEO A H Accountancy work environment
Current
curriculum learn about all org functions G H Central to organisation
As accountant
has holistic view, most decision
involve CFO G H Central to organisation
Accountants
trained on different business sectors
through articles G H Central to organisation
Accountants supervise accounting staff G B Accountancy work environment
As an
Accountant I worked towards partnership G H Accountancy work environment
Managers interacted with multiple stakeholders H H Central to organisation
Accountants central to organisation H H Central to organisation
Accountants sign off on most decisions H H Central to organisation
Accountants
interact with multiple levels during
articles training H H Central to organisation
As an
Accountant interact with whole company H H Central to organisation
CEO listen to staff E E Soft skills
CEO communicate with all stakeholders E E Soft skills
CEO
communicated with staff regarding
their concerns E E Soft skills
CEO asked input from other E E Soft skills
CEO
communicate with stakeholders,
through email, meetings E E Soft skills
CEO dealing with people issues E E Soft skills
CEO listened before reacting E E Soft skills
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CEO
Not interrupting staff when they are
talking E E Soft skills
CEOs Sell strategy to staff who do the job E E Soft skills
As CEO I communicated with staff E E Soft skills
As CEO I interacted with staff E E Soft skills
Leadership
skills got team involved from start E E Soft skills
As CEO
I motivated my staff through
encouragement E E Strategic leadership
As leader I
did socially responsible activities e.g.
sponsorships A G Strategic leadership
CEO directed effort of others D G Strategic leadership
CEO shared his vision D G Strategic leadership
CEO accepted I did not know every thing D G Strategic leadership
CEO required work to be done D G Strategic leadership
CEO requires got things done through others D G Strategic leadership
Managers directed effort of others D G Strategic leadership
As CEO I directed my staff D G Strategic leadership
As Leader I
acknowledge good work by
appreciation D G Strategic leadership
As Leader I acknowledge good work by reward D G Strategic leadership
As leader I got things done through others D G Strategic leadership
As leader I sell my vision to stakeholders D G Strategic leadership
Current
curriculum
include ability to get things done
through other D G Strategic leadership
Leadership
skills took team to direction required D G Strategic leadership
Leadership
skills got buying in from stakeholders D G Strategic leadership
Manager
got audit field work carried out work
through others D G Strategic leadership
Manager
was not able to do all work on my
own D G Strategic leadership
CEO
Empower people and hold them
accountable E G Strategic leadership
Managers managed multiple projects G G Strategic leadership
CEO focus on business not just finance G G Strategic leadership
CEOs
are not CFOs responsible beyond
finance G G Strategic leadership
Leadership
skills
I started by looking at the Financial
position before other issues G G Strategic leadership
Manager
was able to see the big picture before
detail G G Strategic leadership
Manager
saw the big impact before going into
detail G G Strategic leadership
Manager
saw the cause and effect of action
before acting G G Strategic leadership
Managers developed clear measurable targets K G Strategic leadership
CEOs
developed clear strategy through
annual strategic plan K G Strategic leadership
As leader I
encourage staff to be honest and not
sugar coat reality K G Strategic Leadership
Manager carried my staff along to my vision K G Strategic leadership
CEO appointed Directors that had skills I C C accountancy training limitations
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did not have
As Accountant pigeon holed as finance focused only C C accountancy training limitations
CEO
was challenged due to lack of
industry expertise C C accountancy training limitations
current
curriculum communication skills not covered C C accountancy training limitations
current
curriculum HR not covered C C accountancy training limitations
Training
SAICA acknowledged that not
adequate C C accountancy training limitations
Current
curriculum no soft skills C C accountancy training limitations
current
curriculum no leadership training C C accountancy training limitations
current
curriculum no strategic skills training C C accountancy training limitations
Current
curriculum not include people skills C C accountancy training limitations
Acquire skills
by On the job training L L
Acquire leadership & soft skills
while as CEO
Acquire skills
by Leadership courses L L
Acquire leadership & soft skills
while as CEO
Acquire skills
by Board level participation L L
Acquire leadership & soft skills
while as CEO
Acquire skills
by Management studies (Post Grad) L L
Acquire leadership & soft skills
while as CEO
Acquire skills
by Experience L L
Acquire leadership & soft skills
while as CEO
Acquire skills
by
Continuous professional
development L L
Acquire leadership & soft skills
while as CEO
Acquire skills
by Entrepreneurial positions L L
Acquire leadership & soft skills
while as CEO
Acquire skills
by appreciation of other functions L L
Acquire leadership & soft skills
while as CEO
Acquire skills
by business interaction L L
Acquire leadership & soft skills
while as CEO
Acquire skills
by open minded L L
Acquire leadership & soft skills
while as CEO
Acquire skills
by appropriate delegation L L
Acquire leadership & soft skills
while as CEO
Acquire skills
by business mind L L
Acquire leadership & soft skills
while as CEO
Acquire skills
by advice L L
Acquire leadership & soft skills
while as CEO
Acquire skills
by exposure to business L L
Acquire leadership & soft skills
while as CEO
Acquire skills
by learning from people work with L L
Acquire leadership & soft skills
while as CEO
Acquire skills leadership courses L L
Acquire leadership & soft skills
while as CEO
Acquire skills on the job training L L
Acquire leadership & soft skills
while as CEO
Acquire skills Board level participation L L
Acquire leadership & soft skills
while as CEO
Acquire skills by management studies L L
Acquire leadership & soft skills
while as CEO
Acquire skills by on the job training L L
Acquire leadership & soft skills
while as CEO
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Acquire skills taking entrepreneurial positions L L
Acquire leadership & soft skills
while as CEO
Acquire skills by experience L L
Acquire leadership & soft skills
while as CEO
Acquire
Theoretical knowledge through
university L L
Acquire leadership & soft skills
while as CEO
Acquire skills
by courses L L
Acquire leadership & soft skills
while as CEO
Acquire skills
by Experience L L
Acquire leadership & soft skills
while as CEO
acquire skills by training L L
Acquire leadership & soft skills
while as CEO
acquire skills on the job training L L
Acquire leadership & soft skills
while as CEO
acquire skills new manager induction course, L L
Acquire leadership & soft skills
while as CEO
Acquire skills through experience L L
Acquire leadership & soft skills
while as CEO
Acquire skills class cannot provide everything L L
Acquire leadership & soft skills
while as CEO
Acquire skills pick up missing skills through MBA L L
Acquire leadership & soft skills
while as CEO
Acquire skills
through continuous professional
education L L
Acquire leadership & soft skills
while as CEO
Acquire skills by experience L L
Acquire leadership & soft skills
while as CEO
Acquire skills through business exposure L L
Acquire leadership & soft skills
while as CEO
Acquire skills leadership skills L L
Acquire leadership & soft skills
while as CEO
Acquire skills development plan L L
Acquire leadership & soft skills
while as CEO
Acquire skills on the job training L L
Acquire leadership & soft skills
while as CEO
Acquire skills through experience L L
Acquire leadership & soft skills
while as CEO
acquire skills understanding other functions L L
Acquire leadership & soft skills
while as CEO
acquire skills exposure to managing team L L
Acquire leadership & soft skills
while as CEO
Acquire skills by class room learning L L
Acquire leadership & soft skills
while as CEO
Acquire skills experience L L
Acquire leadership & soft skills
while as CEO
Acquire skills
Continuous professional
development L L
Acquire leadership & soft skills
while as CEO
Acquire skills Management studies (Post Grad) L L
Acquire leadership & soft skills
while as CEO
Accountants speed up process through MBA L L
Acquire leadership & soft skills
while as CEO
Accountants
pick up missing skills through
seminars L L
Acquire leadership & soft skills
while as CEO
As CEO
need MBA for good function
coordination L L
Acquire leadership & soft skills
while as CEO
Accountants
supplement skills with management
courses L L
Acquire leadership & soft skills
while as CEO
acquire skills working experience L L
Acquire leadership & soft skills
while as CEO
acquire skills on the job training L L Acquire leadership & soft skills
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while as CEO
Accountants
supplement training with
management courses L L
Acquire leadership & soft skills
while as CEO
Acquire skills through mentoring L L
Acquire leadership & soft skills
while as CEO
Acquire skills Leadership courses L L
Acquire leadership & soft skills
while as CEO
Acquire skills experience L L
Acquire leadership & soft skills
while as CEO
acquire skills through mentoring L L
Acquire leadership & soft skills
while as CEO
acquire skills through education L L
Acquire leadership & soft skills
while as CEO
Acquired skills
by thrown at the deep end L L
Acquire leadership & soft skills
while as CEO
Acquired skills
by support and advice L L
Acquire leadership & soft skills
while as CEO
Acquired skills
by learning from peers L L
Acquire leadership & soft skills
while as CEO
Source: Developed for second set of categories of grounded theory
Table: Concepts reflecting properties of categories
Subject Predicate
1st
Cate
2nd
Cate Category 1 Concepts Category 2
ACA
training
articles puts accounting
learning into context F F
Accounting and finance
training articles training
Accounting and finance
training
ACA
training
develops accounting
skills F F
Accounting and finance
training
develops
accounting skills
Accounting and finance
training
ACA training Qualifying entry degree F F
Accounting and finance training
Qualifying entry degree
Accounting and finance training
ACA
training entry qualifications AAT F F
Accounting and finance
training
Accounting
Technician
Accounting and finance
training
ACA
training
entry qualifications GCSE include maths &
English F F
Accounting and finance
training Maths & English
Accounting and finance
training
ACA
training
ethics training supports
business decision
making F F
Accounting and finance
training Ethics
Accounting and finance
training
ACCA
training
advanced professional
accountancy skills F F
Accounting and finance
training
Accounting
competence
Accounting and finance
training
ACCA
training
Qualifying entry
Certificate in accounting F F
Accounting and finance
training
Qualifying entry Certificate in
accounting
Accounting and finance
training
ACCA
training Qualifying entry degree F F
Accounting and finance
training
Qualifying entry
degree
Accounting and finance
training
ACCA training
GCSE including English and Maths F F
Accounting and finance training Maths & English
Accounting and finance training
ACCA
training
over 21 years no
academic qualification
required F F
Accounting and finance
training
Over 21 years no
academic
requirement
Accounting and finance
training
ACCA training
qualifying exam technical accountancy F F
Accounting and finance training
Accounting competence
Accounting and finance training
CA(SA)
training
advanced professional
accountancy skills F F
Accounting and finance
training
Accounting
competence
Accounting and finance
training
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CA(SA) training
entry qualification
Certificate in Theory of Accounting F F
Accounting and finance training
Certificate in accounting
Accounting and finance training
CA(SA)
training
entry qualification
Degree B Com F F
Accounting and finance
training degree
Accounting and finance
training
CA(SA)
training
qualifying exam
technical accountancy F F
Accounting and finance
training
Accounting
competence
Accounting and finance
training
CPA training auditing and attesting F F
Accounting and finance training auditing
Accounting and finance training
CPA
training
business environment
and concept F F
Accounting and finance
training business studies
Accounting and finance
training
CPA
training communication F F
Accounting and finance
training communication
Accounting and finance
training
CPA training
Financial accounting and reporting F F
Accounting and finance training
Accounting competence
Accounting and finance training
CPA
training Regulations F F
Accounting and finance
training regulations
Accounting and finance
training
Current
curriculum academically focused
CEO hustled for results A B Accountancy work environment enthusiastic
Accountancy work environment
CEO work hard A B
Accountancy work
environment hard working
Accountancy work
environment
CEO
work Long hours beyond
normal 8 hours A B
Accountancy work
environment hard working
Accountancy work
environment
accountants self selection at enrolment A B
Accountancy work environment self selection
Accountancy work environment
As CEO
with Accountancy
background I used financial skills A B
Accountancy work environment financial skills
Accountancy work environment
As Leader I
work Long hours beyond
normal 8 hours A B
Accountancy work
environment hard working
Accountancy work
environment
Accountants control finances A B
Accountancy work
environment control finances
Accountancy work
environment
Accountants prepare financial statements A B
Accountancy work environment maintain accounts
Accountancy work environment
Accountants
prepare management
accounts A B
Accountancy work
environment maintain accounts
Accountancy work
environment
Accountants
provide financial input
to strategy A B
Accountancy work
environment
financial input into
strategy
Accountancy work
environment
Accountants report to management/ board A B
Accountancy work environment
report to Management/Board
Accountancy work environment
Accountants set up internal controls A B
Accountancy work
environment
set up internal
control
Accountancy work
environment
Current
curriculum
articles exposure to how
business works B A
Accountancy work
environment articles training
Accounting and finance
training
Current curriculum
extra practical training during articles B A
Accountancy work environment articles training
Accounting and finance training
Current
curriculum foundation B B
Accountancy work
environment
accountancy
foundation
Accountancy work
environment
current
curriculum
preparation for
accountancy career B B
Accountancy work
environment
accountancy
foundation
Accountancy work
environment
Current curriculum
adequate as exposure obtained during training B B
Accountancy work environment
technical competence
Accountancy work environment
Accountants use P & L metaphor J B
Accountancy work
environment technically focused
Accountancy work
environment
Managers had technical skills J B
Accountancy work
environment
technical
competence
Accountancy work
environment
Accountants technically qualified J B Accountancy work environment
technical competence
Accountancy work environment
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Current
curriculum technically focused J B
Accountancy work
environment technically focused
Accountancy work
environment
Training
Deloittes has 360 hours
trainee formal training I C
accountancy training
limitations
Management
training
accountancy training
limitations
Training
Deloittes has business
advice programme for
managers I C
accountancy training
limitations
Management
training
accountancy training
limitations
Training Deloittes has business school for training I C
accountancy training limitations
Management training
accountancy training limitations
Training
Deloittes has three year
MBA curriculum for articled clerks I C
accountancy training limitations
Management training
accountancy training limitations
Training
Deloittes has Trust
business adviser
programme for partners I C
accountancy training
limitations
Management
training
accountancy training
limitations
Training
revising competence
model I C
accountancy training
limitations
Management
training
accountancy training
limitations
As an
Accountant I set goals for my self A H
Accountancy work
environment Ambitious
Accountancy work
environment
As accountant
Aspired to but not expect to be CEO A H
Accountancy work environment Ambitious
Accountancy work environment
Current
curriculum
learn about all org
functions G H Central to organisation holistic org view Central to organisation
As
accountant
has holistic view, most
decision involve CFO G H Central to organisation holistic org view Central to organisation
Accountants
trained on different business sectors through
articles G H Central to organisation holistic org view Central to organisation
Accountants
supervise accounting
staff G B
Accountancy work
environment head accounts unit
Accountancy work
environment
As an Accountant
I worked towards partnership G H
Accountancy work environment Ambitious
Accountancy work environment
Managers
interacted with multiple
stakeholders H H Central to organisation
interact multiple
stakeholders Central to organisation
Accountants central to organisation H H Central to organisation central to organisation Central to organisation
Accountants
sign off on most
decisions H H Central to organisation sign off Central to organisation
Accountants
interact with multiple levels during articles
training H H Central to organisation
interact multiple
stakeholders Central to organisation
As an
Accountant
interact with whole
company H H Central to organisation
interact multiple
stakeholders Central to organisation
CEO listen to staff E E Soft skills listen CEO soft skills
CEO
communicate with all
stakeholders E E Soft skills communicate CEO soft skills
CEO
communicated with staff
regarding their concerns E E Soft skills communicate CEO soft skills
CEO asked input from other E E Soft skills request input CEO soft skills
CEO
communicate with
stakeholders, through
email, meetings E E Soft skills communicate CEO soft skills
CEO dealing with people issues E E Soft skills people issues CEO soft skills
CEO listened before reacting E E Soft skills listen CEO soft skills
CEO
Not interrupting staff
when they are talking E E Soft skills listen CEO soft skills
CEOs
Sell strategy to staff who
do the job E E Soft skills sell strategy CEO soft skills
As CEO I communicated with staff E E Soft skills communicate CEO soft skills
As CEO I interacted with staff E E Soft skills interaction CEO soft skills
Leadership
skills
got team involved from
start E E Soft skills request input CEO soft skills
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As CEO
I motivated my staff
through encouragement E E Strategic leadership appreciation
CEO Strategic
leadership
As leader I
did socially responsible activities e.g.
sponsorships A G Strategic leadership
social
responsibility
CEO Strategic
leadership
CEO directed effort of others D G Strategic leadership leadership CEO Strategic leadership
CEO shared his vision D G Strategic leadership sell vision
CEO Strategic
leadership
CEO
accepted I did not know
every thing D G Strategic leadership delegate
CEO Strategic
leadership
CEO required work to be done D G Strategic leadership delegate
CEO Strategic
leadership
CEO
requires
got things done through
others D G Strategic leadership delegate
CEO Strategic
leadership
Managers directed effort of others D G Strategic leadership leadership
CEO Strategic
leadership
As CEO I directed my staff D G Strategic leadership leadership
CEO Strategic
leadership
As Leader I acknowledge good work by appreciation D G Strategic leadership appreciation
CEO Strategic leadership
As Leader I
acknowledge good work
by reward D G Strategic leadership appreciation
CEO Strategic
leadership
As leader I got things done through others D G Strategic leadership delegate
CEO Strategic leadership
As leader I
sell my vision to
stakeholders D G Strategic leadership sell vision
CEO Strategic
leadership
Current
curriculum
include ability to get things done through
other D G Strategic leadership delegate
CEO Strategic
leadership
Leadership
skills
took team to direction
required D G Strategic leadership leadership
CEO Strategic
leadership
Leadership
skills
got buying in from
stakeholders D G Strategic leadership sell vision
CEO Strategic
leadership
Manager
got audit field work
carried out work through
others D G Strategic leadership delegate
CEO Strategic
leadership
Manager was not able to do all work on my own D G Strategic leadership delegate
CEO Strategic leadership
CEO
Empower people and
hold them accountable E G Strategic leadership delegate
CEO Strategic
leadership
Managers managed multiple projects G G Strategic leadership multi tasking
CEO Strategic leadership
CEO
focus on business not
just finance G G Strategic leadership business focus
CEO Strategic
leadership
CEOs
are not CFOs responsible beyond
finance G G Strategic leadership business focus
CEO Strategic
leadership
Leadership
skills
I started by looking at
the Financial position
before other issues G G Strategic leadership
financial
background
influence
CEO Strategic
leadership
Manager was able to see the big picture before detail G G Strategic leadership holistic view
CEO Strategic leadership
Manager
saw the big impact
before going into detail G G Strategic leadership holistic view
CEO Strategic
leadership
Manager
saw the cause and effect
of action before acting G G Strategic leadership caution
CEO Strategic
leadership
Managers developed clear measurable targets K G Strategic leadership KPIs
CEO Strategic leadership
CEOs
developed clear strategy
through annual strategic plan K G Strategic leadership strategic planning
CEO Strategic leadership
As leader I
encourage staff to be
honest and not sugar
coat reality K G Strategic Leadership frank
CEO Strategic
leadership
Manager carried my staff along to my vision K G Strategic leadership sell vision
CEO Strategic leadership
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CEO
appointed Directors that
had skills I did not have C C
accountancy training
limitations compliment CEO soft skills
As
Accountant
pigeon holed as finance
focused only C C
accountancy training
limitations finance focused CEO soft skills
CEO
was challenged due to
lack of industry
expertise C C
accountancy training
limitations
lack industry
expertise CEO soft skills
current curriculum
communication skills not covered C C
accountancy training limitations
No communication training CEO soft skills
current
curriculum HR not covered C C
accountancy training
limitations No HR training CEO soft skills
Training
SAICA acknowledged
that not adequate C C
accountancy training
limitations
training not
adequate CEO soft skills
Current curriculum no soft skills C C
accountancy training limitations
no soft skills training CEO soft skills
current
curriculum no leadership training C C
accountancy training
limitations
no leadership
training CEO soft skills
current
curriculum
no strategic skills
training C C
accountancy training
limitations
No strategic skills
training CEO soft skills
Current curriculum not include people skills C C
accountancy training limitations
no soft skills training CEO soft skills
Acquire
skills by On the job training L L
Acquire leadership &
soft skills while as CEO on the job training
Acquire leadership &
soft skills while as CEO
Acquire
skills by Leadership courses L L
Acquire leadership &
soft skills while as CEO
continuous professional
development
Acquire leadership &
soft skills while as CEO
Acquire
skills by
Board level
participation L L
Acquire leadership &
soft skills while as CEO on the job training
Acquire leadership &
soft skills while as CEO
Acquire
skills by
Management studies
(Post Grad) L L
Acquire leadership &
soft skills while as CEO
continuous professional
development
Acquire leadership &
soft skills while as CEO
Acquire
skills by Experience L L
Acquire leadership &
soft skills while as CEO on the job training
Acquire leadership &
soft skills while as CEO
Acquire
skills by
Continuous professional
development L L
Acquire leadership &
soft skills while as CEO
continuous
professional
development
Acquire leadership &
soft skills while as CEO
Acquire skills by Enterpreneurial positions L L
Acquire leadership & soft skills while as CEO on the job training
Acquire leadership & soft skills while as CEO
Acquire
skills by
appreciation of other
functions L L
Acquire leadership &
soft skills while as CEO on the job training
Acquire leadership &
soft skills while as CEO
Acquire
skills by business interaction L L
Acquire leadership &
soft skills while as CEO on the job training
Acquire leadership &
soft skills while as CEO
Acquire skills by open minded L L
Acquire leadership & soft skills while as CEO on the job training
Acquire leadership & soft skills while as CEO
Acquire
skills by appropriate delegation L L
Acquire leadership &
soft skills while as CEO on the job training
Acquire leadership &
soft skills while as CEO
Acquire
skills by business mind L L
Acquire leadership &
soft skills while as CEO on the job training
Acquire leadership &
soft skills while as CEO
Acquire skills by advice L L
Acquire leadership & soft skills while as CEO
support and advice from Mentors
Acquire leadership & soft skills while as CEO
Acquire
skills by exposure to business L L
Acquire leadership &
soft skills while as CEO on the job training
Acquire leadership &
soft skills while as CEO
Acquire
skills by
learning from people
work with L L
Acquire leadership &
soft skills while as CEO on the job training
Acquire leadership &
soft skills while as CEO
Acquire
skills leadership courses L L
Acquire leadership &
soft skills while as CEO
continuous professional
development
Acquire leadership &
soft skills while as CEO
Acquire
skills on the job training L L
Acquire leadership &
soft skills while as CEO on the job training
Acquire leadership &
soft skills while as CEO
Acquire
skills
Board level
participation L L
Acquire leadership &
soft skills while as CEO on the job training
Acquire leadership &
soft skills while as CEO
Acquire skills by management studies L L
Acquire leadership & soft skills while as CEO
continuous
professional development
Acquire leadership & soft skills while as CEO
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Acquire
skills by on the job training L L
Acquire leadership &
soft skills while as CEO on the job training
Acquire leadership &
soft skills while as CEO
Acquire
skills
taking entrepreneurial
positions L L
Acquire leadership &
soft skills while as CEO on the job training
Acquire leadership &
soft skills while as CEO
Acquire skills by experience L L
Acquire leadership & soft skills while as CEO on the job training
Acquire leadership & soft skills while as CEO
Acquire Theoretical knowledge through university L L
Acquire leadership & soft skills while as CEO
continuous
professional development
Acquire leadership & soft skills while as CEO
Acquire skills by courses L L
Acquire leadership & soft skills while as CEO
continuous
professional development
Acquire leadership & soft skills while as CEO
Acquire
skills by Experience L L
Acquire leadership &
soft skills while as CEO on the job training
Acquire leadership &
soft skills while as CEO
acquire
skills by training L L
Acquire leadership &
soft skills while as CEO
continuous
professional
development
Acquire leadership &
soft skills while as CEO
acquire
skills on the job training L L
Acquire leadership &
soft skills while as CEO on the job training
Acquire leadership &
soft skills while as CEO
acquire
skills
new manager induction
course, L L
Acquire leadership &
soft skills while as CEO
continuous professional
development
Acquire leadership &
soft skills while as CEO
Acquire
skills through experience L L
Acquire leadership &
soft skills while as CEO on the job training
Acquire leadership &
soft skills while as CEO
Acquire skills
class cannot provide everything L L
Acquire leadership & soft skills while as CEO on the job training
Acquire leadership & soft skills while as CEO
Acquire
skills
pick up missing skills
through MBA L L
Acquire leadership &
soft skills while as CEO
continuous
professional
development
Acquire leadership &
soft skills while as CEO
Acquire
skills
through continuous
professional education L L
Acquire leadership &
soft skills while as CEO
continuous
professional
development
Acquire leadership &
soft skills while as CEO
Acquire skills by experience L L
Acquire leadership & soft skills while as CEO on the job training
Acquire leadership & soft skills while as CEO
Acquire
skills
through business
exposure L L
Acquire leadership &
soft skills while as CEO on the job training
Acquire leadership &
soft skills while as CEO
Acquire
skills leadership skills L L
Acquire leadership &
soft skills while as CEO on the job training
Acquire leadership &
soft skills while as CEO
Acquire
skills development plan L L
Acquire leadership &
soft skills while as CEO
continuous professional
development
Acquire leadership &
soft skills while as CEO
Acquire
skills on the job training L L
Acquire leadership &
soft skills while as CEO on the job training
Acquire leadership &
soft skills while as CEO
Acquire skills through experience L L
Acquire leadership & soft skills while as CEO experience
Acquire leadership & soft skills while as CEO
acquire
skills
understanding other
functions L L
Acquire leadership &
soft skills while as CEO on the job training
Acquire leadership &
soft skills while as CEO
acquire
skills
exposure to managing
team L L
Acquire leadership &
soft skills while as CEO on the job training
Acquire leadership &
soft skills while as CEO
Acquire
skills by class room learning L L
Acquire leadership &
soft skills while as CEO
continuous
professional
development
Acquire leadership &
soft skills while as CEO
Acquire skills experience L L
Acquire leadership & soft skills while as CEO experience
Acquire leadership & soft skills while as CEO
Acquire skills
Continuous professional development L L
Acquire leadership & soft skills while as CEO
continuous
professional development
Acquire leadership & soft skills while as CEO
Acquire
skills
Management studies
(Post Grad) L L
Acquire leadership &
soft skills while as CEO
continuous
professional
development
Acquire leadership &
soft skills while as CEO
Accountants
speed up process
through MBA L L
Acquire leadership &
soft skills while as CEO
continuous
professional
development
Acquire leadership &
soft skills while as CEO
Accountants
pick up missing skills
through seminars L L
Acquire leadership &
soft skills while as CEO
continuous
professional
development
Acquire leadership &
soft skills while as CEO
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As CEO need MBA for good function coordination L L
Acquire leadership & soft skills while as CEO
continuous
professional development
Acquire leadership & soft skills while as CEO
Accountants supplement skills with management courses L L
Acquire leadership & soft skills while as CEO
continuous
professional development
Acquire leadership & soft skills while as CEO
acquire
skills working experience L L
Acquire leadership &
soft skills while as CEO experience
Acquire leadership &
soft skills while as CEO
acquire
skills on the job training L L
Acquire leadership &
soft skills while as CEO on the job training
Acquire leadership &
soft skills while as CEO
Accountants
supplement training with
management courses L L
Acquire leadership &
soft skills while as CEO
continuous professional
development
Acquire leadership &
soft skills while as CEO
Acquire
skills through mentoring L L
Acquire leadership &
soft skills while as CEO
support and advice
from Mentors
Acquire leadership &
soft skills while as CEO
Acquire
skills Leadership courses L L
Acquire leadership &
soft skills while as CEO
continuous
professional
development
Acquire leadership &
soft skills while as CEO
Acquire skills experience L L
Acquire leadership & soft skills while as CEO experience
Acquire leadership & soft skills while as CEO
acquire
skills through mentoring L L
Acquire leadership &
soft skills while as CEO
support and advice
from Mentors
Acquire leadership &
soft skills while as CEO
acquire skills through education L L
Acquire leadership & soft skills while as CEO
continuous
professional development
Acquire leadership & soft skills while as CEO
Acquired
skills by thrown at the deep end L L
Acquire leadership &
soft skills while as CEO on the job training
Acquire leadership &
soft skills while as CEO
Acquired
skills by support and advice L L
Acquire leadership &
soft skills while as CEO
support and advice
from Mentors
Acquire leadership &
soft skills while as CEO
Acquired skills by learning from peers L L
Acquire leadership & soft skills while as CEO on the job training
Acquire leadership & soft skills while as CEO
Source: Developed to reduce codes to concepts to reduce data overload as well as
rename some categories
Table: First Affinity Diagram of concepts and categories
Accounting
and finance
training
Accountancy
work
environment
Accountancy
training
limitations
Central to
organisation
Soft Skills Strategic
leadership
Effort in
acquiring
leadership &
soft skills
Articles
enhance
training
Enthusiastic
attitude
Lack
Management
training
Holistic view listen to staff Appreciate
staff
Employ those
that
compliment
CEO
Develop
accounting
skills
Hard working Employ
those that
compliment
CEO
interact
multiple
stakeholders
Communicat
e with
stakeholders
Did socially
responsible
activities
training not
adequate
Qualifying
entry degree
Self select at
enrolment Accounting
& finance
focused
interact
multiple
levels
Communicat
e with staff
Provide
leadership
Continuous
professional
development
Qualifying
entry
Accounting
Technician
Work long
hours
lack industry
expertise
interact with
whole
company
Deal with
people issues sell vision Leadership
courses
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Qualifying
entry GCSE
plus maths &
English
Control
finances No
communicati
on training
sell strategy Delegate to
staff
Employ those
that
compliment
CEO
Ethics
included in
curricular
Maintain
accounts No HR
training
Communicat
e with staff
managed
multiple
projects
Support &
advice from
mentors
Qualifying
entry
Certificate in
accounting
Financial
input into
strategy
training not
adequate
business
focus
On the job
training
ex*ere5nce
Over 21
years no
academic
requirement
Report to
Management/
Board
no soft skills
training
holistic view
of issues
Develop
auditing
skills
Set up internal
controls no leadership
training
financial
background
influence
Business
studies Accountancy
technical
competence
No strategic
skills
training
cautious
Study
Communicatio
n
Accounting
& finance
focussed
Set and achieve
targets
Study
Regulations
Ambitious Strategic
planning
Provides
accountancy
foundation
Head finance
unit
Frank talk
with staff
Source: Developed to link concepts to categories
Table: Memos
Subject Predicate
Memo
CEO took informed risks
Accountancy work
environment
CEO honoured my commitment
CEO Strategic
leadership
CEO demanded results
CEO Strategic
leadership
As an Accountant
had ambition to become a
leader
Accountancy work
environment
CEO
Honest in my dealing with
stakeholders
CEO Strategic
leadership
CEO strategic view
CEO Strategic
leadership
Current curricular
adequate as can be seen
with number of CA s CEOs
Accountancy work
environment
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Current curricular prepares for senior positions
Accountancy work
environment
CEO
Choose the right people that
can deliver
CEO Strategic
leadership
CEO
upright on dealing with
stakeholders
CEO Strategic
leadership
CEO Develop staff trust CEO Soft skills
Current skill adequate
Accountancy work
environment
CEO
do things in a structured
way
Accountancy work
environment
CEO
find solutions that are not
self evident.
CEO Strategic
leadership
CEO
found solutions that were
not self evident
CEO Strategic
leadership
CEO innovative
CEO Strategic
leadership
CEO learned quickly
CEO Strategic
leadership
CEO
thought beyond what I had
been taught
CEO Strategic
leadership
My CA
qualification
enabled rigour approach to
issues
Accountancy work
environment
CEO enthusiastic
CEO Strategic
leadership
Training not adequate
Accountancy training
limitations
Accountants unable to multi task
Accountancy training
limitations
Accountants
face communication
challenges
Accountancy training
limitations
Accountants task focused
Accountancy training
limitations
Accountants unable to direct others
Accountancy training
limitations
Managers adaptable
CEO Strategic
leadership
Managers clear vision
CEO Strategic
leadership
Managers communicated with staff
CEO Strategic
leadership
Managers fair on people
CEO Strategic
leadership
Managers hard on performance
CEO Strategic
leadership
Accountants trained to respect deadlines
Accountancy work
environment
Accountants
need broader appreciation of
issues
Accountancy training
limitations
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Accountants training head start
Accounting and finance
training
CEOs
Allow staff to error & learn
from it
CEO Strategic
leadership
CEOs know their company well
CEO Strategic
leadership
CEOs know their employees well CEO soft skills
Leadership
success financial skills
CEO Strategic
leadership
Leadership
success lack
CEO Strategic
leadership
Leadership
success
understand the business
organisation is in
CEO Strategic
leadership
Accountants
need broader appreciation of
issues
Accountancy training
limitations
CEOs have open minds
CEO Strategic
leadership
current curricular well equipped
Accounting and finance
training
Technical
industries requires specialised skills
CEO Strategic
leadership
As CEO
I lead my staff to my vision
of where company should
go
CEO Strategic
leadership
I as leader
understand the business
organisation is in
CEO Strategic
leadership
Leadership skills
I view things with strategic
mindset, helicopter view
CEO Strategic
leadership
As leader I
motivate people to come
with me to that vision
CEO Strategic
leadership
Accountants shadow a CEO Central to Organisation
As CEOs would
need ability to organise
CEO Strategic
leadership
As CEOs would
need leadership
CEO Strategic
leadership
As CEOs would
need people skills CEO Soft skills
As CEOs would
need technical ability
CEO Strategic
leadership
Current should be formal training
Accountancy training
limitations
Current should be more strategic
Accountancy training
limitations
Accountants balanced and reflective
Accountancy work
environment
CEO extrovert
CEO Strategic
leadership
CEO system thinking
CEO Strategic
leadership
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CEO think strategically
CEO Strategic
leadership
Curricular should include leadership skills
Accountancy training
limitations
CEO achieves results
CEO strategic
leadership
CEO approachable CEO soft skills
CEO
build effective team
compliment CEO soft skills
CEO inspire by word or action CEO soft skills
CEO long relevant experience
CEO Strategic
leadership
CEO
motivate staff to work
towards company goals CEO soft skills
CEO spread positive attitude
CEO Strategic
leadership
CEO workers relate CEO soft skills
CEO
align his vision to market
needs
CEO Strategic
leadership
Accountants
stereo typed as focused on
finance
Accountancy training
limitations
Accountants code
of ethics
influence accountants
behaviour positively
Accountancy work
environment
Accountants
lack organisational
management to perform as
CEOS
Accountancy training
limitations
CEO motivate staff
CEO Strategic
leadership
Good CEO Open to divergent opinions
CEO Strategic
leadership
As CEOs would
need have clear plans
CEO Strategic
leadership
As CEOs would
need analytical
CEO Strategic
leadership
As CEOs would
need big picture view
CEO Strategic
leadership
As CEOs would
need decisive
CEO Strategic
leadership
As CEOs would
need emotional intelligence CEO soft skills
As CEOs would
need visionary
CEO Strategic
leadership
Accountants
too focussed on detail lose
big picture
Accountancy training
limitations
CEOs attract and retain talent CEO soft skills
CEOs
expose to general
management
CEO Strategic
leadership
CEOs
have clear vision of
organisations goals
CEO Strategic
leadership
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CEOs implement
CEO Strategic
leadership
CEOs motivate staff
CEO Strategic
leadership
CEOs see big picture CEO soft skills
CEOs
surround with people who
compliment them
CEO Strategic
leadership
CEOs sway team to leaders vision
CEO Strategic
leadership
Accountants adapt to CEO demands
Accountancy work
environment
CEO have good team CEO soft skills
CEO skills see big picture
CEO Strategic
leadership
Accountants
need further training before
CEO position
Accountancy training
limitations
Accountants
are narrow minded focused
on finance
Accountancy training
limitations
I don't delegate enough
Accountancy training
limitations
I have implementation challenges
Accountancy training
limitations
AS CEO build relationships CEO soft skills
AS CEO
motivate staff to work
towards company goals CEO soft skills
AS CEO social network CEO soft skills
Source: Developed to assess whether memos fit into emerging theory
