Part I (Information Management Today): Roughly 50 years ago, Russell Ackoff wrote about the importance, or lack of importance, of information that management needs in “Ackoff’s Management Information

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Statements on Management Accounting SMAs present IMA’s position on best practices in management accounting. These authoritative monographs cover the broad range of issues encountered in practice.

© April 2019 Institute of Management Accountants 10 Paragon Drive, Suite 1 Montvale, NJ, 07645 www.imanet.org/thought_leadership Contents Introduction ........................................................................\ ... 4 Competency by Domain ....................................................... 5 Competencies Mapped to the 2020 CMA Exam ................. 7 Select Learning Resources by Domain ................................. 8 Strategy, Planning & Performance ........................................ 9 Strategic and Tactical Planning ..................................... 10 Decision Analysis .......................................................... 11 Strategic Cost Management ......................................... 12 Capital Investment Decisions ........................................ 13 Enterprise Risk Management ........................................ 14 Budgeting and Forecasting .......................................... 15 Corporate Finance ........................................................ 16 Performance Management ........................................... 17 Reporting & Control ........................................................... 18 Internal Control ............................................................. 19 Financial Recordkeeping ............................................... 20 Cost Accounting ........................................................... 21 Financial Statement Preparation ................................... 22 Financial Statement Analysis ......................................... 23 Tax Compliance and Planning ....................................... 24 Integrated Reporting .................................................... 25 Technology & Analytics ....................................................... 26 Information Systems ..................................................... 27 Data Governance .......................................................... 28 Data Analytics ............................................................... 29 Data Visualization .......................................................... 30 Business Acumen & Operations ......................................... 31 Industry-specific Knowledge ......................................... 32 Operational Knowledge ................................................ 33 Quality Management and Continuous Improvement ... 34 Project Management ..................................................... 35 Leadership ........................................................................\ ... 36 Communication Skills .................................................... 37 Motivating and Inspiring Others ................................... 38 Collaboration, Teamwork, and Relationship Management ...................................... 39 Change Management ................................................... 40 Conflict Management ................................................... 41 Negotiation ................................................................... 42 Talent Management ...................................................... 43 Professional Ethics & Values ............................................... 44 Professional Ethical Behavior ........................................ 45 Recognizing and Resolving Unethical Behavior ............ 46 Legal and Regulatory Requirements ............................. 47 Conclusion ........................................................................\ ... 48 THE FUTURE OF MANAGEMENT ACCOUNTING IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK 3 THE FUTURE OF MANAGEMENT ACCOUNTING IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK 43 IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK Copyright © 2019 IMA (Institute of Management Accountants). All rights reserved. IMA MANAGEMENT ACCOUNTINGCOMPETENCY FRAMEWORK TECHNOLOGY & ANALYTICS BUSINESS ACUMEN & OPERATIONS CATA LY ST PARTNER LEADERSHIP CHAMPION REPORTING & CONTROL STEWARD STRATEGY, PLANNING & PERFORMANCE VISIONARY PROFESSIONAL ETHICS & VALUES GUIDE IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK Management accounting is a profession encompassing finance and accounting professionals working inside organizations. Their role involves partnering in management decision making, devising planning and performance management systems, and providing expertise in financial reporting and control to formulate and implement an organization’s strategy.

Technology is redefining the role of the management accountant while also significantly changing the business landscape and the management accounting profession at an unprecedented speed. To keep pace with the changing business environment and advances in technology, IMA has analyzed the emerging competencies needed by management accountants and has updated the IMA Management Accounting Competency Framework. This enhanced Framework identifies six domains of core knowledge, skills, and abilities that finance and accounting professionals need to remain relevant in the Digital Age and perform their current and future roles effectively. The Framework and associated materials are offered as guidance for skills assessment, career development, and talent management within the profession. THE FUTURE OF MANAGEMENT ACCOUNTING IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK 54 IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK Copyright © 2019 IMA (Institute of Management Accountants). All rights reserved.

COMPETENCIES BY DOMAINDOMAIN COMPETENCIES The competencies required to envision the future, lead the strategic planning process, guide decisions, manage risk, and monitor performance.

The competencies required to manage technology and analyze data to enhance organizational success.

The competencies required to measure and report an organization’s performance in compliance with relevant standards and regulations. • Strategic and T actical Planning • Decision Analysis • Strategic Cost Management • Capital Investment Decisions • Enterprise Risk Management • Budgeting and Forecasting • Corporate Finance • Performance Management • Internal Control • Financial Recordkeeping • Cost Accounting • Financial Statement Preparation • Financial Statement Analysis • Tax Compliance and Planning • Integrated Reporting • Information Systems • Data Governance • Data Analytics • Data Visualization REPORTING & CONTROL STRATEGY, PLANNING & PERFORMANCE TECHNOLOGY & ANALYTICS 5 IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK Copyright © 2019 IMA (Institute of Management Accountants). All rights reserved.

COMPETENCIES BY DOMAINDOMAIN COMPETENCIES The competencies required to contribute as a cross-functional business partner to transform company-wide operations.

The competencies required to collaborate with others and inspire teams to achieve organizational goals.

The competencies required to demonstrate the professional values, ethical behavior, and legal compliance essential to a sustainable business model. • Industry-Specific Knowledge • Operational Knowledge • Quality Management and Continuous Improvement • Project Management • Communication Skills • Motivating and Inspiring Others • Collaboration, Teamwork, and Relationship Management • Change Management • Conflict Management • Negotiation • Talent Management • Professional Ethical Behavior • Recognizing and Resolving Unethical Behavior • Legal and Regulatory Requirements BUSINESS ACUMEN & OPERATIONS LEADERSHIP PROFESSIONAL ETHICS & VALUES THE FUTURE OF MANAGEMENT ACCOUNTING IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK 6 THE FUTURE OF MANAGEMENT ACCOUNTING IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK 76 IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK Copyright © 2019 IMA (Institute of Management Accountants). All rights reserved.

COMPETENCIES MAPPED TO THE 2020 CMA EXAM This chart illustrates how the CMA exam aligns with the broader body of knowledge specified in IMA’s Competency Framework for finance and accounting pr ofessionals. Domain 2020 CMA Exam* Competencies Strategy, Planning & Performance Reporting & Control Technology & Analytics * CMA Part 1: Financial Planning, Performance, and Analytics | CMA Part 2: Strategic Financial Management • Strategic and Tactical Planning.........................

• Decision Analysis..............................................

• Strategic Cost Management.............................

• Capital Investment Decisions...........................

• Enterprise Risk Management............................

• Budgeting and Forecasting..............................

• Corporate Finance............................................

• Performance Management............................... Part 1 Part 2 Part 1 Part 2 Part 2 Part 1 Part 2 Part 1 • Internal Control.................................................

• Financial Recordkeeping..................................

• Cost Accounting...............................................

• Financial Statement Preparation.......................

• Financial Statement Analysis............................

• Tax Compliance and Planning..........................

• Integrated Reporting........................................ Part 1 Part 1 Part 1 Part 1 Part 2 N/A Part 1 • Information Systems.........................................

• Data Governance.............................................

• Data Analytics...................................................

• Data Visualization............................................. Part 1 Part 1 Part 1 Part 1 Domain 2020 CMA Exam* Competencies Business Acumen & Operations Leadership Professional Ethics & Values • Communication Skills.........................................

• Motivating and Inspiring Others......................... • Collaboration, Teamwork, and Relationship Management......................................................

• Change Management.........................................

• Conflict Management......................................... • Negotiation.........................................................

• Talent Management............................................ • Industry-Specific Knowledge............................

• Operational Knowledge...................................

• Quality Management and Continuous Improvement....................................................

• Project Management........................................ N/A N/A Part 1 N/A N/A N/A N/A N/A N/A N/A N/A • Professional Ethical Behavior............................

• Recognizing and Resolving Unethical Behavior............................................................

• Legal and Regulatory Requirements................ Part 2 Part 2 N/A THE FUTURE OF MANAGEMENT ACCOUNTING IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK 87 IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK Copyright © 2019 IMA (Institute of Management Accountants). All rights reserved.

SELECT LEARNING RESOURCES BY DOMAIN REPORTING & CONTROL STRATEGY, PLANNING & PERFORMANCE TECHNOLOGY & ANALYTICS BUSINESS ACUMEN & OPERATIONS LEADERSHIP PROFESSIONAL ETHICS & VALUES IMA Strategy and Competitive Analysis Learning Series ® (Online Courses) FP&A Certificate (Online Courses) Strategic Management Webinar Series COSO ERM Certificate Program (Online Courses and Live Workshops) IMA Thought Leadership (Research) IMA Thought Leadership (Research) Strategic Finance Technology Articles IMA Excel Series (Online Courses) Inside Talk: Tech-Talk Webinar Series IMA Educational Case Journal (IECJ ®) The Master Guide to Controllers’ Best Practices (Book) COSO Internal Control Certificate Program (Online Courses and Live Workshops) IMA Knowledge Exchange- Advantage Combo (Online Subscription Package) Statements on Management Accounting (SMAs) IMA Thought Leadership (Research) Statements on Management Accounting (SMAs) IMA Educational Case Journal (IECJ ®) Management Accounting Quarterly (MAQ) Strategic Finance Articles IMA Live! (Online Subscription Package) IMA Statement of Ethical Professional Practice IMA Educational Case Journal (IECJ ®) IMA Ethics Series (Online Courses and Live Workshops) Statements on Management Accounting (SMAs) Strategic Finance Ethics Column IMA’s Leadership Academy (Webinars and Live Workshops) Strategic Finance Leadership Column and Articles IMA CPEdge™ (Online Subscription Package) Statements on Management Accounting (SMAs) Management Accounting Quarterly (MAQ) T o see a complete listing of 1,000+ learning resources, including thought leadership research, articles, webinars, online courses, and on-the-job activities, visit CareerDriver ® at www.imanet.org/CareerDriver. IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK 9 IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK The competencies required to envision the future, lead the strategic planning process, guide decisions, manage risk, and monitor performance. 9 IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK STRATEGY, PLANNING & PERFORMANCE VISIONARY Copyright © 2019 IMA (Institute of Management Accountants). All rights reserved. LIMITED KNOWLEDGE BASIC KNOWLEDGE APPLIED KNOWLEDGE SKILLED EXPERT STRATEGIC AND TACTICAL PLANNING Assess key business factors, and drive value through strategy and operating plan development and execution Limited knowledge, skills, and/or experience with strategic and tactical planning Demonstrate an understanding of how individual goals support organizational strategy Perform analyses that support the strategic planning process Recognize the value and importance of thinking long term for the organization Demonstrate an understanding of the importance of pursuing strategies aligned with organizational mission, vision, and core values Implement annual and/or short-term departmental goals linked to strategy Explain how tactical plans link to organization-wide strategy Identify critical success factors (CSFs) and related key performance indicators (KPIs) necessary for successful strategy implementation Communicate organizational strategy effectively Consider limited resources and necessary trade-offs when recommending business decisions Assess strengths, weaknesses, opportunities, and threats (SWOT) facing the organization (e.g., PESTEL (political, economic, social, technological, environmental, legal) analysis) Identify strategic issues and drivers of competitive advantage by employing industry analysis techniques, such as Porter’s Five Forces and scenario planning Introduce innovative programs and processes that enhance organizational corporate social responsibility (CSR) and environmental objectives Utilize business intelligence resources to identify strategic opportunities Oversee the implementation of strategic initiatives, including allocation of resources, while balancing long-term strategy and short- term objectives Communicate perceived strategy/organizational gaps and alignment issues Evaluate the impact of strategic decisions on the value chain Leverage strategic planning experience in multiple business environments to identify the key drivers of sustainable competitive advantage in a specific situation Develop strategy governance processes and measures for innovation effectiveness Define the organization’s sustainable value-creation model, and drive innovation Synthesize complementary and competing factors in a complex environment to determine trade-offs (e.g., resources, capital, technology, capabilities) when formulating the optimal strategy for the organization Drive CSR strategies and environmental sustainability strategies that advance the organization’s competitive advantage Use various data sources to identify leading indicators, predict competitors’ initiatives, and drive contingency plans Communicate the vision, strategy, and execution plan effectively, internally and externally, to gain support and compliance Recommend new methods and approaches (e.g., scenario planning, war gaming) for strategy development THE FUTURE OF MANAGEMENT ACCOUNTING IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK STRATEGY, PLANNING & PERFORMANCE 10 10 IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK STRATEGY, PLANNING & PERFORMANCE VISIONARY Copyright © 2019 IMA (Institute of Management Accountants). All rights reserved. LIMITED KNOWLEDGE BASIC KNOWLEDGE APPLIED KNOWLEDGE SKILLED EXPERT DECISION ANALYSIS Evaluate decision alternatives using analytical techniques, and make recommendations Demonstrate an understanding of the basic types and purpose of decision-support tools (e.g., breakeven analysis, net present value) Demonstrate research skills Limited knowledge of decision analysis Perform cost-volume-profit (breakeven) analysis to support product decisions Evaluate data for decisions such as make or buy, lease or own, and sell or process further Perform scenario analysis Demonstrate critical thinking skills, including objective analysis, synthesis, and evaluation, to form evidence-based decisions Evaluate nonroutine projects (e.g., special orders, outsourcing, business segments) Identify the most important criteria for selecting the best alternative to support an organization’s strategic goals Evaluate potential profitability using external and internal data sets Evaluate and incorporate environmental (e.g., political, regulatory, market) and social factors when making strategic decisions Lead complex decisions involving high risk, ambiguity, and significant strategic consequences Develop a framework for decision making (e.g., identify specific decision-support methods to use in given situations) Employ innovative methodologies when approaching complex decisions (e.g., Monte Carlo simulation, real options) Implement revenue and cost models that reflect causal operational relationships to provide nonfinancial managers financial decision support information THE FUTURE OF MANAGEMENT ACCOUNTING IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK STRATEGY, PLANNING & PERFORMANCE 11 11 IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK STRATEGY, PLANNING & PERFORMANCE VISIONARY Copyright © 2019 IMA (Institute of Management Accountants). All rights reserved. LIMITED KNOWLEDGE BASIC KNOWLEDGE APPLIED KNOWLEDGE SKILLED EXPERT STRATEGIC COST MANAGEMENT Identify cost drivers, and perform cost modeling to enhance organizational decision making Limited exposure to strategic cost management concepts Demonstrate an understanding of basic cost concepts Use inventory control tools within parameters to optimize stocking levels Use capacity planning, utilization, and costing tools and techniques Analyze costs across the value chain to support cost- effective global sourcing decisions Trace costs to analyze and improve customer profitability Analyze the profitability of products and services by tracing costs throughout the value chain Incorporate life-cycle costs in product and service profitability projections Calculate costs using various costing methodologies (e.g., standard, activity-based, throughput costing) Conduct basic product and service costing including incremental analyses for special orders Implement managerial costing models and processes to improve decision support beyond basic cost accounting Recommend the appropriate costing approach to use in a given business situation Analyze and make recommendations regarding optimal capacity utilization to support the business plan, addressing idle and excess capacity Utilize causal activity and resource management techniques, lean and agile principles, and other value chain improvement methodologies to optimize operations Determine optimal sourcing based on comprehensive operational and cost analysis of the value chain Implement sophisticated cost management techniques (e.g., activity-based costing, Theory of Constraints, resource consumption accounting) Leverage managerial costing knowledge, models, and analytics to recommend cost reduction strategies/tactics as part of a long-term strategy Deploy causal, decision- oriented managerial costing models and strategic cost management throughout the organization’s value chain Reconcile managerial cost calculations for decision support with cost accounting calculations for external financial reporting, and explain the differences THE FUTURE OF MANAGEMENT ACCOUNTING IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK STRATEGY, PLANNING & PERFORMANCE 12 12 IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK STRATEGY, PLANNING & PERFORMANCE VISIONARY Copyright © 2019 IMA (Institute of Management Accountants). All rights reserved. LIMITED KNOWLEDGE BASIC KNOWLEDGE APPLIED KNOWLEDGE SKILLED EXPERT CAPITAL INVESTMENT DECISIONS Analyze long-term investment alternatives using quantitative and qualitative techniques, and make recommendations Limited exposure to capital investment decisions Identify basic investment decision terms and techniques and their use in decision support (e.g., net present value, internal rate of return) Evaluate capital investment projects using common quantitative techniques (e.g., net present value, internal rate of return) Identify nonquantitative factors (e.g., social, safety, moral, aesthetic) that affect investment decisions Evaluate relevant cash flows for capital budgeting decisions, and estimate future return on capital Prepare capital expenditure plans, and determine funding requirements Evaluate alternative scenarios using sensitivity analysis Analyze quantitative and qualitative data for merger, acquisition, and divestiture opportunities Develop cost-of-capital hurdle rate/weighted average cost of capital Identify and calculate future opportunities and choices (real options) Recommend potential new business ventures (e.g., new products, new services, new markets) based on quantitative and qualitative factors Conduct mergers and acquisitions (M&A) analysis for complex transactions, and make recommendations to senior management and the board THE FUTURE OF MANAGEMENT ACCOUNTING IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK STRATEGY, PLANNING & PERFORMANCE 13 13 IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK STRATEGY, PLANNING & PERFORMANCE VISIONARY Copyright © 2019 IMA (Institute of Management Accountants). All rights reserved. LIMITED KNOWLEDGE BASIC KNOWLEDGE APPLIED KNOWLEDGE SKILLED EXPERT ENTERPRISE RISK MANAGEMENT Identify, assess, and manage risks within an organization Limited knowledge of enterprise risk management Demonstrate an understanding of the need for organizational risk management and its relationship to internal controls Identify types of risk within an organization (e.g., financial, competitive, reputational) Analyze operational risk (e.g., internal processes, people, and systems or external factors such as legal, fraud, security), and implement mitigation strategies Analyze financial risk (e.g., interest rate, credit, foreign exchange, capital structure), and implement mitigation strategies Manage contractual relationships, policies, and coverage for insurable risks Assist operational managers with identifying and quantifying risks and opportunities Implement appropriate risk management systems based on a widely recognized framework (e.g., Committee of Sponsoring Organizations of the Treadway Commission (COSO)) Recommend financial risk management strategies (e.g., portfolio diversification and hedging, options, other derivatives) Perform an environmental scan using tools such as PEST (political, economic, societal, technology) analysis Evaluate risk concerning the competitive landscape Prepare risk communications required by regulatory agencies Analyze strategic risk, including competition and reputation/brand Develop and report metrics that provide leading/early indicators of emerging risks Develop and recommend strategic risk mitigation and risk response strategies (e.g., to address competitive risk, technology risk) Implement enterprise risk management with overall organizational strategic plans and governance Lead the development of responses to high-impact and high-probability scenarios Analyze environmental, social, and governance risks, and implement mitigation strategies THE FUTURE OF MANAGEMENT ACCOUNTING IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK STRATEGY, PLANNING & PERFORMANCE 14 14 IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK STRATEGY, PLANNING & PERFORMANCE VISIONARY Copyright © 2019 IMA (Institute of Management Accountants). All rights reserved. LIMITED KNOWLEDGE BASIC KNOWLEDGE APPLIED KNOWLEDGE SKILLED EXPERT BUDGETING AND FORECASTING Project financial and operational resources necessary to develop a financial plan aligned with the organization’s strategic goals Limited exposure to budgeting and forecasting Perform data collection or data-entry tasks in support of the budget or forecast Demonstrate an understanding of the basics of the forecasting and budgeting process, including purpose and use Use basic tools and techniques of forecasting, such as moving averages and extrapolation Project short-term sales, cash flows, inventory requirements, or other financial data in support of operations within limited parameters Analyze historical revenues and expenses to determine seasonal patterns and anticipate annual requirements Analyze fixed and variable operational and financial relationships as part of the budgeting process Identify and analyze the relationship between different resources and requirements of a comprehensive financial or operational forecast Synthesize and interpret data from multiple sources Anticipate capital requirements to support growth initiatives and optimization Demonstrate and understand linkages between budget lines, and perform appropriate planning (e.g., if sales go up, commissions should also go up) Validate assumptions made by departments Develop a master budget to support the goals of a small to midsize organization or department/division of a large organization Prepare the projected income statement, balance sheet, and cash flow statement Evaluate capacity constraints for budgeted activity levels Forecast in an environment of uncertainty using sensitivity analysis Use statistical techniques such as regression, exponential smoothing, and confidence levels Analyze and synthesize data from external sources to recognize patterns and predict customer behavior Enhance the forecasting accuracy through the discovery of key and relevant trends by exploring large data sets using data analytics and data mining techniques Recommend an appropriate budgeting methodology (e.g., flexible, continuous, rolling, zero-based) to use in a given business situation Link the budgeting process to the strategic planning process Integrate and consolidate information from multiple departments Perform long-term analysis in periods of uncertainty using advanced statistical techniques Lead collaborative forecasting efforts incorporating information from multiple internal and external expert sources and sophisticated modeling techniques Communicate complex forecasts and budgets to others Design and lead the budget and financial planning process across multiple business units in a complex organization using advanced software tools THE FUTURE OF MANAGEMENT ACCOUNTING IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK STRATEGY, PLANNING & PERFORMANCE 15 THE FUTURE OF MANAGEMENT ACCOUNTING IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK STRATEGY, PLANNING & PERFORMANCE 1615 IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK STRATEGY, PLANNING & PERFORMANCE VISIONARY Copyright © 2019 IMA (Institute of Management Accountants). All rights reserved. LIMITED KNOWLEDGE BASIC KNOWLEDGE APPLIED KNOWLEDGE SKILLED EXPERT CORPORATE FINANCE Manage a company’s short-term and long-term financing needs Limited knowledge of corporate finance Demonstrate an understanding of the concepts related to managing organizational liquidity Demonstrate an understanding of basic financial instruments Distinguish between short- term and long-term financing needs Measure the performance of financial investments Perform valuation calculations of financial instruments Forecast cash requirements, analyze receivables quality, and perform investment of short-term cash Calculate financial ratios related to loan covenants and liquidity levels Evaluate and/or implement specific financing strategies (e.g., funding sources, short- term or long-term uses of surplus cash) Analyze alternative means of raising capital (e.g., common stock, bonds, preferred stock, factoring, venture capital) Develop and implement working capital policies (e.g., cash, accounts payable, accounts receivable, inventory management) Ensure compliance with loan covenants Ensure short- and long-term financing plans support and align with the strategic plan Recommend appropriate financing in complex environments considering both traditional and nontraditional financial instruments Maintain relationships with banks and other sources of funds (e.g., investment banks, venture capitalists) Develop working capital policies in complex situations (e.g., multinational corporations, rolling up multiple divisions, subsidiaries) Recommend dividend and/ or stock repurchase policies and plans THE FUTURE OF MANAGEMENT ACCOUNTING IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK STRATEGY, PLANNING & PERFORMANCE 1716 IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK STRATEGY, PLANNING & PERFORMANCE VISIONARY Copyright © 2019 IMA (Institute of Management Accountants). All rights reserved. LIMITED KNOWLEDGE BASIC KNOWLEDGE APPLIED KNOWLEDGE SKILLED EXPERT PERFORMANCE MANAGEMENT Design performance management systems, evaluate the success of strategic and tactical initiatives, and recommend corrective actions where appropriate Limited exposure to performance management Demonstrate an understanding of the purpose of performance management processes and their use in supporting the strategy (e.g., achieving goals, incentives, governance) Perform isolated and/or simple variance analysis Calculate traditional performance measures in alignment with organizational strategy Calculate transfer prices under existing methodology Perform a comprehensive variance analysis, and interpret drivers of performance variances Analyze the impact of transfer pricing on business unit performance beyond tax consequences Develop and implement a performance measurement process aligned with the overall strategic goal-setting process Optimize performance management and financial reporting processes to provide useful and timely management information (e.g., use of key performance indicators (KPIs), balanced scorecards, dashboards) Assess the robustness, reliability, and rigor of performance measurement systems Transform variance analysis into actionable insights Develop transfer-pricing strategy to optimize organizational performance Define and communicate an effective performance management system in a complex environment (e.g., public, global, multientities, complicated corporate structures) Ensure that performance measurement processes, compensation programs, and systems are closely aligned with the organization’s value- creation model and support the board’s decision-making role Utilize insights gained from performance management system to effect organizational change IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK 18 IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK REPOR TING & CONTROL The competencies required to measure and report an organization’s performance in compliance with relevant standards and regulations. THE FUTURE OF MANAGEMENT ACCOUNTING IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK REPORTING & CONTROL 1918 IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK REPORTING & CONTROL STEWARD Copyright © 2019 IMA (Institute of Management Accountants). All rights reserved. LIMITED KNOWLEDGE BASIC KNOWLEDGE APPLIED KNOWLEDGE SKILLED EXPERT INTERNAL CONTROL Implement procedures and processes that ensure data security, protect an organization’s assets, and meet legal and reporting requirements Demonstrate an understanding of the purpose of internal controls for use in financial reporting, compliance, and operations Identify basic internal controls (e.g., segregation of duties, physical controls, audit trails, limits of authorization) Limited knowledge of internal control processes Verify accuracy of general ledger and subledgers through various accounting procedures and controls Implement and/or test a system of internal controls under management direction Ensure compliance with applicable policies and procedures, including those mandated by the Sarbanes-Oxley Act of 2002 Prepare internal audit reports (i.e., compliance, operational, financial) Perform internal control risk assessment using frameworks such as the Committee of Sponsoring Organizations of the Treadway Commission (COSO) Design an effective internal control system, including technology controls, that is responsive to the specific risks of the organization Develop processes to monitor the effectiveness of risk management and internal controls processes, and remediate as necessary Develop an internal audit plan for the organization Provide assurance to management and other stakeholders regarding internal controls (e.g., Sarbanes-Oxley Act compliance) over financial reporting and nonfinancial reporting Design and implement internal controls in complex environments (e.g., public, global, multientities, complicated corporate structures) Integrate internal controls with the enterprise risk management system THE FUTURE OF MANAGEMENT ACCOUNTING IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK REPORTING & CONTROL 2019 IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK REPORTING & CONTROL STEWARD Copyright © 2019 IMA (Institute of Management Accountants). All rights reserved. LIMITED KNOWLEDGE BASIC KNOWLEDGE APPLIED KNOWLEDGE SKILLED EXPERT FINANCIAL RECORDKEEPING Leverage financial accounting skills to record and analyze financial transactions and balances Understanding limited to a specific function (e.g., accounts receivable, accounts payable, payroll transactions) Perform transactional/ operational accounting functions, including journal entries, accruals, and reversals Perform account reconciliations, and prepare schedules to support the preparation and/or audit of financial statements Analyze special accounts (e.g., deferred tax asset/ liability), and prepare related journal entries Manage fulfillment of internal and external audit requirements including checklists and schedules Evaluate efficiency and effectiveness of accounting processes, and make recommendations to optimize them Analyze complex financial transactions, and ensure they are recorded properly in accordance with accounting standards Analyze proposed transactions to determine the potential impact on financial statements Design appropriate recordkeeping procedures in complex situations (e.g., derivatives, hedging) Design appropriate recordkeeping procedures for multinational organizations, including consolidations across segments and industries THE FUTURE OF MANAGEMENT ACCOUNTING IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK REPORTING & CONTROL 2120 IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK REPORTING & CONTROL STEWARD Copyright © 2019 IMA (Institute of Management Accountants). All rights reserved. LIMITED KNOWLEDGE BASIC KNOWLEDGE APPLIED KNOWLEDGE SKILLED EXPERT COST ACCOUNTING Support external financial reporting by compiling and analyzing costs incurred by an organization Limited exposure to costing concepts and methods Identify basic cost classifications (e.g., fixed, variable, direct, indirect) and their use for financial reporting and inventory valuation Calculate basic product/ service costs Coordinate cost collection efforts Calculate costs using an efficient methodology and practice for your industry in accordance with accounting standards Prepare cost reports and variance analysis for management Demonstrate an understanding of the difference between absorption costing and variable costing Calculate joint product costs and by-product costs Implement cost accounting processes and systems appropriate for your industry’s financial reporting Recommend the appropriate cost accounting approach to use for a business’s external financial reporting requirements Analyze the projected impact on financial statements of major business decisions affected by costing methodologies Reconcile managerial cost calculations for decision support with cost accounting calculations for external financial reporting, and explain the differences THE FUTURE OF MANAGEMENT ACCOUNTING IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK REPORTING & CONTROL 2221 IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK REPORTING & CONTROL STEWARD Copyright © 2019 IMA (Institute of Management Accountants). All rights reserved. LIMITED KNOWLEDGE BASIC KNOWLEDGE APPLIED KNOWLEDGE SKILLED EXPERT FINANCIAL STATEMENT PREPARATION Leverage financial accounting skills needed to prepare financial statements for internal and external stakeholders Limited exposure to financial statement preparation Identify basic financial statements, their purpose, and their elements Understand basic U.S.

Generally Accepted Accounting Principles (GAAP), International Financial Reporting Standards (IFRS), and/or country-specific reporting frameworks Apply knowledge of more advanced financial accounting standards (e.g., leases, pensions, deferred taxes) Research, recommend, and apply appropriate accounting treatments Prepare basic financial statements for both internal and external stakeholders Prepare a comprehensive set of footnotes Analyze the impact of changing accounting standards on the financial statements Prepare Management Discussion & Analysis (MD&A) for a public company or a similar report for a private company Ensure compliance with all applicable regulatory requirements regarding financial reporting Implement efficiencies to continuously improve the quality and speed of the financial close process Prepare complex financial statements Reconcile financial statements prepared using various reporting standards (e.g., IFRS and U.S. GAAP) Prepare applicable quarterly and annual regulatory filings THE FUTURE OF MANAGEMENT ACCOUNTING IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK REPORTING & CONTROL 2322 IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK REPORTING & CONTROL STEWARD Copyright © 2019 IMA (Institute of Management Accountants). All rights reserved. LIMITED KNOWLEDGE BASIC KNOWLEDGE APPLIED KNOWLEDGE SKILLED EXPERT FINANCIAL STATEMENT ANALYSIS Analyze a company’s financial statements to assess performance Limited exposure beyond understanding basic financial statements Demonstrate an understanding of the interrelationship among basic financial statements Calculate financial ratios Analyze financial statements and financial data to guide decision making Interpret the meaning of financial ratios Analyze the impact of changes in reporting standards or accounting methods on financial statements Analyze loan covenants, and report on compliance Perform comparisons of two entities or an entity to industry average using common-size financial statements Perform trend analysis by comparing performance over time Design a system of financial ratios and other performance indicators appropriate for a specific financial situation Analyze the impact of foreign operations on reported financial results, including foreign exchange transactions Analyze the potential impact of macroeconomic, social, political, and environmental factors on the organization’s financial results Coordinate and integrate a comparison of financial statement ratios across the organization Perform and interpret business unit and intercompany trend analysis Analyze the impact on financial ratios from complex financial transactions (e.g., mergers and acquisitions (M&A), divestitures) Analyze the financial statements of competitors, customers, and suppliers, and interpret trends to provide input to the planning and forecasting processes THE FUTURE OF MANAGEMENT ACCOUNTING IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK REPORTING & CONTROL 2423 IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK REPORTING & CONTROL STEWARD Copyright © 2019 IMA (Institute of Management Accountants). All rights reserved. LIMITED KNOWLEDGE BASIC KNOWLEDGE APPLIED KNOWLEDGE SKILLED EXPERT TAX COMPLIANCE AND PLANNING Implement procedures and processes to ensure accurate and timely tax filings and effective tax strategies Limited exposure to tax compliance and planning Demonstrate an understanding of business taxation general concepts and rules Demonstrate an understanding of book vs.

tax differences in financial statements Gather data and provide input to tax returns, and understand the relationship of various tax schedules to each other Ensure the recordkeeping system supports tax reporting and reflects the tax environment of the organization Prepare accurate and timely tax filings Analyze the tax impact of alternative business decisions Provide tax advice for business decisions Manage fulfillment of government tax auditors’ information requests Research and advise on international tax issues Develop and implement appropriate policies and procedures to ensure tax efficiency and compliance Manage taxation responsibilities in multiple jurisdictions and multiple industries Formulate tax strategy for multinational corporations Evaluate the risk and impact of changes in tax laws, and recommend mitigation strategies Use effective tax strategies to improve cash flows Lead tax strategy and planning for a complex organization Work with tax authorities within country-specific regulatory frameworks to finalize tax liability in complex situations THE FUTURE OF MANAGEMENT ACCOUNTING IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK REPORTING & CONTROL 2524 IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK REPORTING & CONTROL STEWARD Copyright © 2019 IMA (Institute of Management Accountants). All rights reserved. LIMITED KNOWLEDGE BASIC KNOWLEDGE APPLIED KNOWLEDGE SKILLED EXPERT INTEGRATED REPORTING Report organizational value created over time for stakeholders and society, including financial and nonfinancial information Limited exposure to integrated reporting Demonstrate an understanding of the elements of sustainability reporting Compile and summarize data to measure various forms of capital—for example, financial, manufactured, intellectual, human, social and relationship, and natural Prepare reports to providers of financial capital, regulators, and other stakeholders in response to their multicapital information needs Demonstrate a systems approach to integrated reporting, and identify barriers Design systems to efficiently collect information on relevant capitals over time Develop a balanced set of leading and lagging performance metrics based on the different forms of capital and other value-relevant frameworks Design reports to present the value the organization creates, recognizing different perspectives and incorporating material financial and nonfinancial sustainability measures Assess and report on the relationship among the different capitals Ensure integrated reports are prepared in accordance with suitable criteria, including relevance, completeness, reliability, neutrality, and understandability Develop and communicate an integrated strategy for the organization around the different forms of capital Lead through integrated thinking the development of future-oriented reports to benefit all stakeholders, including employees, customers, suppliers, business partners, communities, governmental bodies, regulators, and policy makers IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK 26 IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK TECHNOLOGY& ANAL YTICS The competencies required to manage technology and analyze data to enhance organizational success. 26 IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK TECHNOLOGY & ANALYTICS CATALYST Copyright © 2019 IMA (Institute of Management Accountants). All rights reserved. LIMITED KNOWLEDGE BASIC KNOWLEDGE APPLIED KNOWLEDGE SKILLED EXPERT INFORMATION SYSTEMS Use technology to effectively support operational and financial processes, solve problems, analyze data, and enhance business performance Minimal exposure to data and information systems beyond data input Demonstrate an understanding of processes related to a single module in a financial system (e.g., accounts payable module in an enterprise resource planning (ERP) system) Demonstrate competence in using basic hardware and software tools Identify different types of data (e.g., structured, unstructured, numeric, text, sensor) Prepare basic business process flowcharts (e.g., inventory control) with information gained from relevant stakeholders Demonstrate an understanding of the potential applications of emerging technologies (e.g., cloud computing, blockchain, robotic process automation, artificial intelligence) Manage the general ledger (GL) module (e.g., chart of accounts, journal entries, trial balance) Control and manage how and when data enters the financial systems from other modules Work closely with the Information Technology department to implement solutions to business issues and leverage opportunities Document business requirements for information system design Demonstrate an understanding of elements in relational databases Utilize relational database concepts, including primary and secondary keys, when designing reports Design relational database tables Design ERP workflows, multi- level charts of accounts, and system integration for sound financial control Manage implementation of emerging technologies to improve financial processes Use and train others in how to use multiple modules within an enterprise-wide system (e.g., material requirements planning (MRP), purchasing, warehouse management, customer relationship management (CRM)) Identify data sources, and define acceptance tests for integration of information into performance management systems Recognize and address the cascading impact of changes in an integrated systems environment Automate data collection, validation, and reporting using software tools Design and implement new data models as the business and environment evolve Identify data flow weaknesses, and recommend potential improvements Design systems structure to optimize operational and financial performance Evaluate, recommend, and implement the appropriate ERP system in a complex environment Design data marts and data warehouses to provide access to information throughout an organization THE FUTURE OF MANAGEMENT ACCOUNTING IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK TECHNOLOGY & ANALYTICS 27 27 IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK TECHNOLOGY & ANALYTICS CATALYST Copyright © 2019 IMA (Institute of Management Accountants). All rights reserved. LIMITED KNOWLEDGE BASIC KNOWLEDGE APPLIED KNOWLEDGE SKILLED EXPERT DATA GOVERNANCE Ensure the availability, utility, integrity, and security of data Limited knowledge of data governance Limited knowledge of the life cycle of data (creation, retention, storage, obsolescence, deletion) Exercise sound data stewardship by complying with all data policies and documenting procedures followed Comply with data retention, archival, and disposal policies as part of the data life-cycle process Demonstrate an under- standing of the business and reputational impact of making decisions with incorrect, poor-quality, invalid, and/or incomplete data Demonstrate an understanding of the need to protect the security and privacy of stakeholder data Demonstrate an understanding of the basic principles of data security Communicate potential data errors and weaknesses in procedures Implement controls such as penetration and vulnerability testing to detect and thwart cyberattacks Implement an effective financial systems environment to support internal controls Demonstrate an understanding of data governance frameworks such as the Committee of Sponsoring Organizations of the Treadway Commission (COSO) and Control Objectives for Information and Related Technologies (COBIT) Implement processes to protect the privacy of stakeholder data Implement sound data retention, archival, and disposal policies Identify and correct incomplete or inaccurate data Improve processes for preventing and correcting issues with data Balance risk and materiality when determining the level of security Evaluate costs and benefits when recommending strategies for data management Use data process validation and security tests such as unit testing, penetration testing, and acceptance testing criteria Develop early warning systems and other risk mitigation data strategies Manage the flow of data throughout its life cycle (e.g., risk of stale data or incomplete emerging data) Participate as part of a cross- functional team to evaluate available technologies and platforms to meet business needs Design and implement data governance systems in accordance with established frameworks such as COSO and COBIT Design governance implementation processes, including the creation of appropriate unit, integration, penetration, and acceptance testing criteria Set policies for data retention and storage processes in accordance with legal requirements Automate data cleansing processes THE FUTURE OF MANAGEMENT ACCOUNTING IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK TECHNOLOGY & ANALYTICS 28 THE FUTURE OF MANAGEMENT ACCOUNTING IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK TECHNOLOGY & ANALYTICS 2928 IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK TECHNOLOGY & ANALYTICS CATALYST Copyright © 2019 IMA (Institute of Management Accountants). All rights reserved. LIMITED KNOWLEDGE BASIC KNOWLEDGE APPLIED KNOWLEDGE SKILLED EXPERT DATA ANALYTICS Extract, transform, and analyze data to gain insights, improve predictions, and support decision making Limited knowledge of data analytics Create spreadsheets and manipulate data using basic functions and formulas such as graphs, filtering and sorting data, and importing data Calculate basic descriptive statistics such as ratios and basic averages to reveal trends Demonstrate an understanding of the importance of using data to make business decisions Demonstrate an understanding of business intelligence and data mining Extract, transform, and query data using appropriate tools such as Structured Query Language (SQL) Interpret information needs and translate into actionable requests for data analysis Use descriptive analytics to evaluate efficiency and effectiveness of business initiatives Use simple linear regression to predict business outcomes and interpret results Determine and report cause and effect using diagnostic techniques Perform ad hoc exploratory data analysis using query languages Utilize specialized reporting tools (e.g., eXtensible Business Reporting Language (XBRL)), and interpret results Design organizational templates for use by others Mine large data sets to reveal patterns and provide insights Use predictive analytics techniques to interpret results, draw insights, and make recommendations Apply statistics to a data set using specialized statistical software and/or business intelligence software Use multiple regression for predictive and prescriptive purposes, and interpret results Transform raw, unstructured data into a form more appropriate for analysis (e.g., data wrangling) Implement solutions using multiple query, scripted, or interpreted languages (e.g., SQL, Python, R) Build prescriptive models to optimize organizational performance (e.g., goal seeking) Use advanced statistical tools for exploratory data analysis to reveal patterns and discover insights to achieve business outcomes (e.g., cluster analysis, time-series analysis, Monte Carlo analysis) THE FUTURE OF MANAGEMENT ACCOUNTING IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK TECHNOLOGY & ANALYTICS 3029 IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK TECHNOLOGY & ANALYTICS CATALYST Copyright © 2019 IMA (Institute of Management Accountants). All rights reserved. LIMITED KNOWLEDGE BASIC KNOWLEDGE APPLIED KNOWLEDGE SKILLED EXPERT DATA VISUALIZATION Present data visually to better explain key patterns, trends, and correlations Limited knowledge of data visualization Create simple charts and graphs using visualization tools (e.g., Excel, Tableau) or prebuilt visualization code packages Demonstrate an understanding of how to best communicate results with basic visualizations (e.g., line, bar, pie, scatter plots) Utilize table and graph design best practices to avoid distortion in the communication of complex information Demonstrate an understanding of how to best communicate results with intermediate visualizations (e.g., histograms, area charts, heat maps) Evaluate data visualization options, and select the best presentation approach for the intended audience Demonstrate an understanding of how to best communicate results with advanced visualizations (e.g., Sankey plots, bubble charts, network diagrams) Accelerate decision making using visualization tools and/or code packages to construct multivisual dashboards combining relevant visualizations Utilize simplicity of design techniques to present results of complex data analysis in an understandable manner Utilize advanced features of visualization applications Interpret and communicate complex analyses to stakeholders using advanced data visualization techniques at an audience-appropriate level Construct custom visualizations using JavaScript—either in website or with business intelligence platforms Demonstrate expertise in all three aspects of data visualization: substantive, statistical, and artistic IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK 31 IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK BUSINESS ACUMEN& OPERA TIONS The competencies required to contribute as a cross-functional business partner to transform company-wide operations. 31 IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORKBUSINESS ACUMEN & OPERATIONS PARTNER Copyright © 2019 IMA (Institute of Management Accountants). All rights reserved. LIMITED KNOWLEDGE BASIC KNOWLEDGE APPLIED KNOWLEDGE SKILLED EXPERT INDUSTRY-SPECIFIC KNOWLEDGE Understand and master dynamics and drivers of business success in a specific industry Limited knowledge of the industry in which the company operates Demonstrate an understanding of the industry based on limited work experience or exposur e to reports in the business media Evaluate the supply chain, and identify risks related to specific vendors and customers Keep pace with industry developments pr oactively Monitor the activities of competitors Identify sources of competitive intelligence Perform a financial ratio analysis of competitors Prepare the discussion of risk for external reporting (e.g., the Management Discussion and Analysis (MD&A) section in the annual report) Analyze the annual reports of customers, competitors, and suppliers Analyze the industry competitive structure, including the level of competitive rivalry Master industry-specific accounting and tax requirements Serve as an expert on the specific industry, including value chain, competitive issues, r egulatory matters, and customer perspectives Serve as an expert speaker and/or advisor on industry matters Formulate ways to increase competitive advantage and/or identify new sources of value cr eation Lead an organization’s competitive analysis team Evaluate an organization’s strategic risk (i.e., determining if the strategy is aligned with market and industry conditions) THE FUTURE OF MANAGEMENT ACCOUNTING IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK BUSINESS ACUMEN & OPERATIONS 32 THE FUTURE OF MANAGEMENT ACCOUNTING IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK BUSINESS ACUMEN & OPERATIONS 3332 IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORKBUSINESS ACUMEN & OPERATIONS PARTNER Copyright © 2019 IMA (Institute of Management Accountants). All rights reserved. LIMITED KNOWLEDGE BASIC KNOWLEDGE APPLIED KNOWLEDGE SKILLED EXPERT OPERATIONAL KNOWLEDGE Serve as a valuable business partner to operational units outside the accounting/finance department Limited exposure to business operations beyond the accounting/finance department Demonstrate an understanding of the flow of information and materials thr ough the organization Work closely with other functions including Pr ocurement, Materials Management, Production, Research, Marketing, Information Technology, Human Resources, Legal, Facilities, Customer Service, and across business units Participate in the formulation of solutions to operational issues beyond the finance department W ork on cross-functional teams as a business partner to implement multidepartment change Demonstrate operational knowledge through job r otation and/or participation in cross-functional projects Serve as an expert leading manufacturing, production, distribution, or service delivery as a result of experience gained through job rotations or previous career positions Develop creative solutions to optimize performance across the value chain Serve as a business partner recognized by other teams and business areas as having operational expertise THE FUTURE OF MANAGEMENT ACCOUNTING IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK BUSINESS ACUMEN & OPERATIONS 3433 IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORKBUSINESS ACUMEN & OPERATIONS PARTNER Copyright © 2019 IMA (Institute of Management Accountants). All rights reserved. LIMITED KNOWLEDGE BASIC KNOWLEDGE APPLIED KNOWLEDGE SKILLED EXPERT QUALITY MANAGEMENT AND CONTINUOUS IMPROVEMENT Use quality management and continuous improvement tools and techniques effectively Limited exposure to quality management and/or continuous improvement approaches Recognize quality improvement tools (e.g., process mapping, Kaizen, fishbone diagrams) Perform trend analysis of quality measures Demonstrate an understanding of quality improvement approaches (e.g., lean, Six Sigma, total quality management (TQM)) Calculate the cost of quality and expected savings from improvement efforts Use quality management tools and approaches to improve the accounting/finance operation Represent finance/accounting on operational quality impr ovement teams Lead cross-functional and departmental quality improvement efforts Use quality management tools and approaches to improve cross-functional operations Master one or more quality management methodologies such as Six Sigma Use quality management tools and approaches to optimize the operations of partners in the supply chain Serve as an expert and champion/sponsor of multiple, complex quality management initiatives Lead value stream mapping and analysis to optimize operations THE FUTURE OF MANAGEMENT ACCOUNTING IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK BUSINESS ACUMEN & OPERATIONS 3534 IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORKBUSINESS ACUMEN & OPERATIONS PARTNER Copyright © 2019 IMA (Institute of Management Accountants). All rights reserved. LIMITED KNOWLEDGE BASIC KNOWLEDGE APPLIED KNOWLEDGE SKILLED EXPERT PROJECT MANAGEMENT Plan and organize resources, both people and financial, in order to complete a major undertaking or event Limited exposure to formal project management tools Demonstrate an understanding of basic project management tools (e.g., timelines, checklists, milestones) Participate on teams using project management tools (e.g., Gantt Charts and critical paths) and approaches (e.g., Waterfall, Agile, Scrum) Lead projects using project management tools, including scheduling of resources Champion/sponsor multiple simultaneous projects that have significant budgets using project management tools Instill a culture of project management professionalism that guides the organization with formalized approaches IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK 36 IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK LEADERSHIP The competencies required to collaborate with others and inspire teams to achieve organizational goals. THE FUTURE OF MANAGEMENT ACCOUNTING IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK LEADERSHIP 3736 IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK LEADERSHIP CHAMPION Copyright © 2019 IMA (Institute of Management Accountants). All rights reserved. LIMITED KNOWLEDGE BASIC KNOWLEDGE APPLIED KNOWLEDGE SKILLED EXPERT COMMUNICATION SKILLS Listen effectively to others, and convey thoughts or ideas through various forms of communication including written, spoken, and nonverbal Limited knowledge, skills, and/or experience communicating in a professional setting Organize and present thoughts, information, and facts logically Understand verbal and nonverbal cues and their importance Prepare clear and concise written communications Listen effectively, ask questions, and express concerns Tailor communications to culturally diverse audiences Recognize differences in others’ communication styles, and adjust own as appropriate Communicate both positive and negative results effectively with sensitivity to the listener Make effective presentations (i.e., engaging, motivating, concise, well-prepared) Use technology (e.g., social media) tools effectively as a communication vehicle, taking into consideration recipients’ preferences Design communication programs, taking into consideration global diversity and local customs and norms Develop communication strategies to optimize messaging through tools, tone, and timing Answer difficult questions from key stakeholders (e.g., staff, board members, auditors, investment analysts, the media) effectively, providing persuasive and credible responses Coach others on how to communicate effectively and build consensus Excel at the use of technology tools to expand leadership presence THE FUTURE OF MANAGEMENT ACCOUNTING IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK LEADERSHIP 3837 IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK LEADERSHIP CHAMPION Copyright © 2019 IMA (Institute of Management Accountants). All rights reserved. LIMITED KNOWLEDGE BASIC KNOWLEDGE APPLIED KNOWLEDGE SKILLED EXPERT MOTIVATING AND INSPIRING OTHERS Influence, motivate, and gain support of others in order to achieve organizational goals through the use of emotional intelligence, accountability, and setting the “tone at the top” Limited knowledge, skills, and/or experience with motivating and inspiring others Recognize the importance of motivation Identify strengths and areas for growth of team members Recognize differences in personality style and preferences when motivating team members Provide effective advice and feedback to enable individual contributors to achieve goals and improve performance Consider the impact of emotions on communication and interactions with others Demonstrate the importance of continuously expanding professional knowledge, skills, and abilities for self and team in order to grow expertise and add value to the organization Identify and adopt appropriate leadership style for a given situation Provide positive feedback to staff as appropriate, and communicate recognition to the team and others Build effective teams, and implement innovative ways to motivate team members Anticipate emotional reactions, and respond effectively in guiding and leading others Inspire others to perform to their full potential and exceed expectations Motivate teams across the organization to overcome challenging situations Coach others on how to motivate individuals/teams effectively Lead managers to inspire and motivate their teams Lead by example, especially in difficult times THE FUTURE OF MANAGEMENT ACCOUNTING IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK LEADERSHIP 3938 IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK LEADERSHIP CHAMPION Copyright © 2019 IMA (Institute of Management Accountants). All rights reserved. LIMITED KNOWLEDGE BASIC KNOWLEDGE APPLIED KNOWLEDGE SKILLED EXPERT COLLABORATION, TEAMWORK, AND RELATIONSHIP MANAGEMENT Work effectively with others in order to achieve a trusting relationship that yields positive results Limited knowledge, skills, and/or experience with collaboration and teamwork Communicate with team members in a respectful and consistent manner Contribute to team achievements by taking responsibility for own efforts and seeking input/assistance when needed Work across departmental boundaries, and contribute beyond individual responsibilities to achieve team goals Listen proactively to others, encourage collaboration, and help build consensus among team members Give credit to members of the team for their contributions Collaborate with partners in the value chain to achieve beneficial working relationships and positive outcomes Provide constructive feedback and assistance to others in addressing issues or conflicts Seize opportunities to team with others to achieve positive results Encourage an integrated approach to performance management, and discourage functional silos Collaborate on innovative products, services, and/or processes that will help the organization succeed Consider the importance of corporate culture when assessing opportunities to enter into partnerships with other organizations Serve as a role model in thinking outside the silo/ business area to identify opportunities for innovation THE FUTURE OF MANAGEMENT ACCOUNTING IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK LEADERSHIP 4039 IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK LEADERSHIP CHAMPION Copyright © 2019 IMA (Institute of Management Accountants). All rights reserved. LIMITED KNOWLEDGE BASIC KNOWLEDGE APPLIED KNOWLEDGE SKILLED EXPERT CHANGE MANAGEMENT Lead an organization, team, or individuals through transition toward a desired vision or goal Limited knowledge, skills, and/or experience with change management Understand the importance of change as a critical element of continuous improvement Seek to understand change and to accept implementation Participate in change initiatives, and encourage acceptance of change by coaching with empathy and patience Develop plans to support change initiatives effectively with an appropriate degree of urgency Communicate reasons for change and associated plans to make the change Collaborate with other leaders in evaluating and executing change initiatives Encourage continuous improvement, and coach staff on how to maximize resulting benefits Identify barriers or resistance to change initiatives, seek ways to overcome them, and gain commitment Champion change by leading the organization through a major transition to achieve strategic goals Promote the vision for change, and lead major organizational change efforts effectively Create an organizational culture that seeks innovation and embraces change Make innovation a clear priority, and communicate that every function has the opportunity and ability to contribute to this goal THE FUTURE OF MANAGEMENT ACCOUNTING IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK LEADERSHIP 4140 IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK LEADERSHIP CHAMPION Copyright © 2019 IMA (Institute of Management Accountants). All rights reserved. LIMITED KNOWLEDGE BASIC KNOWLEDGE APPLIED KNOWLEDGE SKILLED EXPERT CONFLICT MANAGEMENT Resolve issues using appropriate influencing skills and tools to achieve successful business goals and arrive at the best organizational outcomes Limited knowledge, skills, and/or experience with conflict management Understand that conflict is inevitable and that avoidance is not a solution Address conflict in a timely manner, and seek appropriate solutions Anticipate others’ reactions, and consider others’ viewpoints to promote mutual understanding Analyze the causes and components of conflict, including stakeholder viewpoints, competing priorities, and limited resources Raise issues to appropriate management when resolution is not achieved Deal effectively with difficult situations by asking clarifying questions, exploring solutions, and establishing boundaries for all parties Intervene to defuse tension with tactful and assertive approaches Engage in respectful debate regarding issues of importance Develop and disseminate techniques and tools to guide conflict resolution Engage effectively in crucial and difficult conversations Encourage passionate debate about issues and ideas to move the organization forward Create a culture where constructive conflict leads to continuous improvement 41 IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK LEADERSHIP CHAMPION Copyright © 2019 IMA (Institute of Management Accountants). All rights reserved. LIMITED KNOWLEDGE BASIC KNOWLEDGE APPLIED KNOWLEDGE SKILLED EXPERT NEGOTIATION Reach agreement between two or more parties to achieve the best outcome for the organization and an acceptable solution to negotiating parties Limited knowledge, skills, and/or experience with negotiation Recognize the importance of positive business relationships in successful negotiations Present a clear and concise point of view using relevant data Anticipate probable points of disagreement to be negotiated Follow a defined process for negotiations, ensuring that risks are identified and mitigated and that corporate goals are achieved Utilize a tactful and creative approach to solving problems, and reach consensus where all parties feel a win was achieved Understand the impact of diversity and cultural differences on negotiations Document contractual terms and decisions about roles and responsibilities to promote lasting agreement and positive outcomes Achieve timely and positive results through negotiation skills Serve as a successful go-to negotiator or arbitrator Gain consensus consistently from all parties in order to achieve win-win organizational solutions Demonstrate sensitivity to the impact of global political and economic issues on cross- border negotiations THE FUTURE OF MANAGEMENT ACCOUNTING IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK LEADERSHIP 42 42 IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK LEADERSHIP CHAMPION Copyright © 2019 IMA (Institute of Management Accountants). All rights reserved. LIMITED KNOWLEDGE BASIC KNOWLEDGE APPLIED KNOWLEDGE SKILLED EXPERT TALENT MANAGEMENT Select, develop, retain, and reward people to ensure a strong workforce and successful business performance Limited knowledge, skills, and/or experience with performance and talent management Recognize the desired levels of performance for self and team Understand the importance of team dynamics, approaches, and output Understand the importance of talent selection and ongoing performance management for organization success Interview and select team members effectively, aligning skills with responsibilities and assignments Delegate responsibility, promote independence, and solicit feedback from the team Recognize excellent team performance, and reward positive results Prepare annual performance appraisals, and use relevant and specific examples to ensure feedback is meaningful to employees regarding goals and performance Recommend professional development resources for career advancement and closing skills gaps Develop effective staff recruitment and retention practices Develop key performance indicators (KPIs) that align with overall business objectives Create a trusting environment for team members to ask questions and offer ideas freely Coach and develop staff on achieving performance goals Engage in career path discussions and succession planning for the team Hold managers accountable for the performance of their teams Promote talent management and the importance of diversity across the organization Establish succession plans for key roles in the organization Promote a culture of performance by communicating a clear vision and shared values Inspire others by demonstrating the importance of teaming to achieve successful business results Develop performance reward/ incentive systems to drive behavior aligned with the organization’s strategic initiatives THE FUTURE OF MANAGEMENT ACCOUNTING IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK LEADERSHIP 43 IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK 44 IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK PROFESSIONAL ETHIC S & VA LUES The competencies required to demonstrate the professional values, ethical behavior, and legal compliance essential to a sustainable business model. 44 IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK PROFESSIONAL ETHICS & VALUES GUIDE Copyright © 2019 IMA (Institute of Management Accountants). All rights reserved. LIMITED KNOWLEDGE BASIC KNOWLEDGE APPLIED KNOWLEDGE SKILLED EXPERT PROFESSIONAL ETHICAL BEHAVIOR Comply with a set of guiding principles that govern a person’s behavior in the workplace Recognize that professional standards and organizational policies exist Act in an ethical manner in accordance with societal norms, values, and laws Demonstrate an understanding of the need for professional ethics in business situations (e.g., confidentiality, competence, integrity, credibility) Act in accordance with the standards and principles outlined in the IMA Statement of Ethical Professional Practice or other relevant standards Recognize potential ethical conflicts in one’s responsibilities based on organizational and/or professional guidelines Recognize the importance of an organization’s core values and how they promote ethical behavior Foster a culture of ethical behavior and accountability within the organization Design, implement, and strive to continuously improve a company-wide ethics program Advise and train others on how the organization’s ethics code applies to questionable situations they may encounter Lead in establishing and maintaining the appropriate ethical tone throughout the organization Provide expertise and serve as a role model regarding complex ethical conflicts faced by organizations Foster an ethical supply chain by establishing and enforcing relevant organizational policies and ethical standards THE FUTURE OF MANAGEMENT ACCOUNTING IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK PROFESSIONAL ETHICS & VALUES 45 45 IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK PROFESSIONAL ETHICS & VALUES GUIDE Copyright © 2019 IMA (Institute of Management Accountants). All rights reserved. LIMITED KNOWLEDGE BASIC KNOWLEDGE APPLIED KNOWLEDGE SKILLED EXPERT RECOGNIZING AND RESOLVING UNETHICAL BEHAVIOR Identify ethical conflicts and lapses in the workplace, and take appropriate action Be aware of the potential existence of unethical behavior or fraudulent activity in the workplace Understand the importance of trustworthy behavior Recognize ethical conflicts such as conflicts of interest or situations susceptible to fraud Follow appropriate reporting protocols when unethical behavior is suspected Help identify and resolve business situations that include ethical dilemmas (e.g., sales targets, incentive compensation, travel and entertainment expenses) Apply critical thinking, an objective mind-set, and professional skepticism in business situations Recognize differences in cultural norms that could interfere with ethical decision making Apply organizational policies and the IMA Statement of Ethical Professional Practice to potential ethical conflicts Train others in the organization’s ethics policy, the concepts of the fraud triangle, the IMA Statement of Ethical Professional Practice, and/or other ethical constructs Apply professional judgment, knowledge of strategies, and best practices to resolve complex ethical conflicts Recognize “red flags” and risks in complex situations that may indicate purposeful misrepresentation Assist others to resolve ethical conflicts Apply internal control expertise to design procedures that reduce the likelihood of fraud and ethical conflicts Design an ethics and compliance program that includes training, supply chain communication, and vendor/ customer qualifications Be recognized as an ethics thought leader promoting the management accounting profession and values Champion the spirit of ethical behavior within the organization and across the supply chain THE FUTURE OF MANAGEMENT ACCOUNTING IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK PROFESSIONAL ETHICS & VALUES 46 46 IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK PROFESSIONAL ETHICS & VALUES GUIDE Copyright © 2019 IMA (Institute of Management Accountants). All rights reserved. LIMITED KNOWLEDGE BASIC KNOWLEDGE APPLIED KNOWLEDGE SKILLED EXPERT LEGAL AND REGULATORY REQUIREMENTS Execute the organization’s strategy with integrity, complying with the law, regulations, and standards Comply with the organization’s legal and regulatory environment Understand the necessity for legal requirements and the linkage to protecting the public interest Provide guidance to staff on identifying legal and regulatory conflicts Manage compliance with employment, safety, and other business regulations in the spirit and the letter of the law Manage compliance with industry-specific laws, regulations, and reporting requirements Design and implement programs, policies, and procedures to ensure compliance with laws and regulations When laws and/or regulations conflict or are unclear, make ethical decisions consistent with fiduciary responsibilities Lead compliance efforts with complex and sometimes contradictory business regulations in the spirit of protecting the public interest (e.g., tax codes, U.K. Bribery Act, U.S. Foreign Corrupt Practices Act, E.U. General Data Protection Regulation, anti- money laundering/combating terrorist financing regulations) THE FUTURE OF MANAGEMENT ACCOUNTING IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK PROFESSIONAL ETHICS & VALUES 47 Conclusion The business world is rapidly changing, with new technologies changing t\ he skills needed by accounting and finance professionals for career success. Management accountants will need new and enhanced competencies in areas ranging from technology and analytics, to strategic management, business acumen, and professional values and ethics. The Competency Framework contained in this SMA is based on a job analysi\ s conducted by ICMA ® (Institute of Certified Management Accountants) and validated by su\ bject matter experts. It forms the basis for the content of the CMA exam. It covers the competencies\ in six domains needed by today’s management accountant: Strategy, Planning & Performance, Reporting & Control, Technology & Analytics, Business Acumen & Operations, Leadership, and Professional Ethics & Values. Each skill area comprises specific knowledge and skills, which are organized by increasing levels from “limited knowledge” up to “expert.” Management accountants can use this framework as a guide to keep their s\ kill sets relevant for today’s business environment. Providing the foundation for IMA’s CareerDriver ® Assessment Tool, it provides a pathway for finance and accounting professionals looking to advance their careers as well as serving as a valuable tool for employers looking to enha\ nce the capabilities of their finance and accounting teams. THE FUTURE OF MANAGEMENT ACCOUNTING IMA MANAGEMENT ACCOUNTING COMPETENCY FRAMEWORK 48