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It is Not What You Know, It is How You Share It

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

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It is Not What You Know, It is How You Share It

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  1. It is Not What You Know, It is How You Share It Mike JEANS • Past President, • Chartered Institute of Management Accountants • Independent Management Consultant, • Quagon Consulting • United Kingdom

  2. It's not what you know, it's how you share it... Mike Jeans World Congress of Accountants Hong Kong 2002

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

  4. AGES OF THE ORGANISATION

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

  6. DEFINITION • “Knowledge Management involves efficiently connecting those who know with those who need to know, thus converting personal knowledge into organisational knowledge”

  7. WHAT KNOWLEDGE MANAGEMENT ISN’T • Devalued through overuse? • A consultant-driven fad? • Not an end in itself -- can’t be implemented in a one-off initiative or by purchasing a piece of expensive new software • Technology just an enabler - allows scalability

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

  9. CULTURE • “You can’t manage knowledge, you can only manage the culture that leads to that knowledge being shared.” • But managing culture isn’t easy • Culture influenced by structure, resources, processes and systems

  10. KPMG model

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

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

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

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

  15. SEM IMPLICATIONS FOR ACCOUNTANTS • Reducing the power of the finance function • But -- freeing up time to allow accountants to focus on more value-added activities • Repositioning of accounting function

  16. IMPLICATIONS FOR THE ORGANISATION • Capitalising on knowledge  creating a learning organisation • Knowledge can never be ‘owned’ by the company, only rented • Knowledge is portable -- implications for recruitment and retention • The virtue of forgetting

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

  18. SOFT or ‘PEOPLE’ SKILLS • Accountants becoming effective business partners: • leadership • communication • influencing • negotiating • change management • team building • social and cultural skills • The New CFO of the Future, KPMG & ICAA

  19. FUTURE OF THE FINANCE FUNCTION • Accounting is still relevant despite the changes in the nature of accounting knowledge

  20. FUTURE CHARACTERISTICS OF FINANCE • Finance Strategy • Aligned with business strategy • Linked to business objectives • Practical and measurable • Finance Structure • Split accountability and responsibility • Be integrated with the business • Include a central advisory team • Finance Staff • Strong commercial acumen • Good analytical skills • Effective interpersonal skills • Consultative approach • Coaching ability • Finance Processing • Focussed on adding value • Integrated into business processes • Automated • Efficient and Effective • Finance Systems • Flexible • Use emerging technologies • Integrated across the business • Reflect user’s requirements • Embedded controls • Enabling rather than constraining • Finance Culture • Forward looking • Appreciate value rather than cost • Encourage openness and sharing of best practice • Encourage partnering with the business

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

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