development strategy to 2015 - CIPFA · 4 | CIPFA Development strategy to 2015 The best of times...

CIPFA Development strategy to 2015 | 1

development strategy to 2015

2 | CIPFA Development strategy to 2015

Helping us to help youIn 2001, and again in 2006, CIPFA published five year plans for the development of the Institute. These have helped us to steer a positive course and to make significant strides forward during a period of relentless change for both the public services and the accountancy profession – the Institute’s two principal spheres of interest and activity. Annual reports have kept members and students informed of our progress.

A further four years on we now need to review and refresh our strategy and to set a new course for the period to 2015. This must be ambitious to build on the successes and achievements of the past, and carefully tailored and grounded to address the distinctively difficult economic conditions which seem certain to endure over this period. The new strategy must try to strengthen CIPFA’s increasingly positive reputation as the pre-eminent institute for public financial management on the world stage, and assure delivery of practical, high quality services locally, supporting individual CIPFA members and students and their employers working on the frontline of vital public services. It must enable the Institute to meet the needs and expectations of a growing range of partners and stakeholders, and it must emphasise at all times our overriding duty to serve the public interest.

We hope that members and students will take pride in the Institute’s progress and a close and committed interest in its future development. CIPFA has long traditions of active participation by its members and students which has provided the inspiration and innovation to enable the Institute to punch above its weight. It is critically important that we carry those traditions and strengths forward to help combat the challenges which the future holds.


Foreword by the PresidentThere is no doubt that the next few years will be characterised by great uncertainty and, in the public services, significant retrenchment. The effects of the global financial crisis which began in 2007 continue to reverberate and some of the most disruptive aftershocks are now occurring as Governments around the world struggle to limit damage to and rebalance the public finances. The UK is no exception and the Coalition Government has embarked upon a rebalancing project which involves unprecedented reductions in funding.

In many ways this is a very difficult backcloth against which to prepare CIPFA’s Development Strategy for the next five years to 2015. Nevertheless, plan we must, to ensure that the Institute focuses its energies and resources on the right things; contributes powerfully to tackling the full spectrum of daunting challenges facing members, public bodies and Governments; identifies and mitigates risks; and emerges stronger, fitter and even more influential.

Above all we must work together to ensure that the Institute is there to support all of its members and students in such challenging times. In that context I must thank everyone – groups and individuals – who have contributed such thoughtful comments on our draft strategy and helped to shape this final document.

Amongst all of the current uncertainty I believe that there are three critically important positives from which we should draw real encouragement and strength. First, the crisis and its effects place the Institute and CIPFA members right at the centre of the stage. So we do not need to jockey for position or fight to be heard. But we do have to be very thoughtful and considered about the advice that we offer and determined about the real difference we intend to make.

Secondly, public financial management in all of its different facets is now a global concern. And CIPFA is extremely well placed to be a critically important commentator and the leading professional accountancy institute for its development. So this is an area of significant opportunity on which we must capitalise.

Thirdly, many of the opportunities for greater efficiency and effectiveness lie at the interface between different public services. I believe that this is an area in which the Institute and CIPFA members are uniquely well placed to make a real difference.

As it happens, 2010 also marks the 125th anniversary of the Institute’s inaugural meeting in Manchester in 1885. What better way to celebrate this proud milestone than by bringing CIPFA members’ unique skills and expertise to bear, in the public interest, to ensure that the people and communities which need them receive the high quality services they deserve.

Jaki Meekings DavisPresident


The best of times and the worst of timesThe past decade has been a roller-coaster of sharply contrasting emotions and experiences. After a period of sustained growth in many economies, the global financial crisis has precipitated an era of significantly increased uncertainty.

For the accountancy profession it has been the decade in which we have seen significant progress in the development, adoption and implementation of international standards spanning financial reporting, auditing, education and ethics. And at the same time it has marked scandals like Enron and WorldCom, the demise of Arthur Andersen, and critical failures in the banking and financial services sector.

For the public services it will be remembered, first, for significant investment and concerted emphasis on modernisation and reform, and, more recently, for the crippling impact of recession on the public finances, heralding major reductions in the spending plans for the next few years.

In both spheres – the accountancy profession and the public services – the decade has posed searching questions about public trust and confidence which at best have still to be fully answered. These remain critical challenges which we ignore at our peril.

But all is not gloom and doom! Over the course of the decade many of the agendas closest to CIPFA members’ hearts have come strongly to the fore. Most significantly, excellence in public financial management and governance – the Institute’s core interests – have become ever more widely acknowledged as pre-requisites for high performing public service organisations.

Looking ahead the position is swathed in risk and uncertainty not least as the finance function in public bodies prepares to manage within its reduced budgets. More positively, however, it is difficult to escape the conclusion that CIPFA members will be in very great demand. Their roles will be centrestage and their skills, knowledge and expertise indispensable to Governments and organisations which are ready for new and greater challenges and serious about reshaping public services and maximising value for taxpayers’ money. The next five years, though in many ways daunting, are therefore also likely to be a period of significant opportunity.

development strategy to 2015


Aiming highThe best strategies are clear about core purpose and vision and express explicit organisational priorities.

CIPFA’s Strategic Purpose is summarised as follows:

‘Working to promote high standards and deliver excellence in financial management and governance throughout the public services.’

We believe that this captures not only the driving force and rationale for the vast majority of the CIPFA Group’s activities but also describes the essence of the roles performed by most CIPFA members.

Our vision for CIPFA is expressed as:

‘To be acknowledged globally as the leading institute for public financial management and governance.’

We hope to fulfil our purpose and realise this vision by pursuing the priorities which are summarised in the following Four Strategic Themes:

Strategic Theme 1 –To give active support to CIPFA members and other public service leaders by providing information, insight, advice and training through challenging times.

Strategic Theme 2 –To champion and support improvement in standards of public financial management and governance.

Strategic Theme 3 – To lead the debate on public financial management and governance, continuously enhancing the authority and reputation of CIPFA and its members.

Strategic Theme 4 – To increase CIPFA’s impact and influence through a growing and diverse membership.

In order to deliver these Strategic Themes it will be critically important to manage the resources at our disposal as efficiently and effectively as possible.


Strategic Theme 1 – To give active support to CIPFA members and other public service leaders by providing information, insight, advice and training through challenging times

Why is this theme a priority?Following the global financial crisis, recession and uncertainty have characterised many economies. In many instances Government finances have become severely overstretched. Very careful stewardship and management of public finances will therefore be required for a sustained period ahead with ever greater emphasis placed upon efficiency, productivity, improvement and delivery of greater value for taxpayers’ money.

CIPFA members will be at the heart of these challenges whether working as chief executives, chief financial officers, management accountants, auditors or in a range of other critically important roles. Working closely with other public service leaders, their contributions will make a real difference to organisational performance and to front-line public services.

In order to assure their success CIPFA must provide the best possible support to members, students and their employing organisations, placing particular emphasis on enabling effective leadership and management; steering strategic and operational planning; sharpening skills and expertise for the times; sharing and capitalising upon information and intelligence; developing and signposting relevant tools and techniques; promoting best practice and supporting implementation of tailored solutions.

The overriding challenge is to help members to play fully effective roles in helping to lead, build and shape organisations and teams which can perform very strongly through an extended period of retrenchment and very tight funding.

The public services are likely to be a very tough and stressful working environment over this period as organisations strive to deliver ambitious reforms whilst at the same time shedding jobs and saving money. We may not be able to change the overriding climate but we can help to build resilience by working closely together and supporting each other.


Strategy Actions and leversTo maintain a continuous dialogue and exchange of information with members, stakeholders and customers to ensure that we understand their changing needs.

� Intelligent use of our Customer Relationship Management (CRM) systems throughout CIPFA including our regions, branches and societies to manage and better analyse all of our knowledge from contact with practitioners.

� Regular surveys of the CIPFA member/customer panel, chief finance officers and other constituencies.

� Regular dialogue with CIPFA regions, branches and societies and other channels which enable understanding of the issues which are challenging members and students.

� Use of modern media to encourage regular feedback of views and intelligence from members, stakeholders and customers.

� Encourage member-to-member support through formal and informal networking, mentoring and other initiatives facilitated by CIPFA regions, societies, branches and networks, and other practitioner for a such as CFO societies.

To anticipate the pressures and tensions which are likely to be experienced by leaders such as chief executives and chief finance officers (CFO) and heads of internal audit (HIA).

� Develop and publish further guidance on challenges facing leaders of public service organisations building on the thinking reflected in Leading in Hard Times1.

� Promote CIPFA’s high level guidance on the Role of the CFO in the Public Services2 and encourage organisations to adopt it on a ‘comply or explain’ basis.

� Develop CIPFA’s suite of Internal Audit guidance and services including publishing new guidance on the role of the HIA in the public services3.

� Provide confidential ‘sounding board’ support for members grappling with ethical dilemmas. � Encourage initiatives to strengthen organisational and personal resilience.

To develop and promote relevant tools and techniques to enable organisations to manage the challenge of reduced funding.

� Build on the After the Downturn and Rebalancing the Public Finances4 reports. Undertake further research to assess the scale of the funding reductions which organisations face and the strategic responses available to them.

� Review and, where appropriate, update guidance on medium and long term planning, forecasting, zero and priority based budgeting, benchmarking, procurement etc.

� Provide training and implementation support to enable organisations to make effective use of relevant techniques.

To encourage leaders to develop long term strategies for ‘after the cuts’.

� Ensure that guidance on leadership roles includes focus on short, medium and long term challenges. � Encourage focus on investment as well as cuts. Reducing costs is not the only priority. It is also

critical to create effective, sustainable organisations, staffed by well trained, well motivated teams, able to deliver efficient, high quality services.

� Develop and promote best practice in performance review and management to support effective commissioning and procurement.

� Highlight the need for and support the development of strategies to address long term challenges such as climate change, relief of poverty, changing demographics, etc.

� Ensure that the development needs of younger members and students are being actively addressed, including leveraging the experience of existing senior members, in preparation for their elevation to higher profile leadership roles and positions of increased responsibility

strategic theme 1- actions and levers

1 http://www.cipfa.org.uk/managingthecuts/ 2 http://www.cipfa.org.uk/panels/finance_director/download/role_cfo.pdf 3 http://www.cipfa.org.uk/roleoftheHIA/index.cfm4 http://www.cipfa.org.uk/managingthecuts/


Strategy Actions and levers

To encourage and support collaboration initiatives between public bodies and with other partners.

� Encourage public bodies to work closely together to try to deliver the best possible service and value outcomes from the resources available.

� Promote CIPFA’s Sharing the Gain5 publication and resources to share practical experience and highlight good practice from successful collaboration projects

� Understand the different dynamics of public-public, public-private, and public-third sector collaborations and tailor products, services and advice accordingly

� Support organisations to broker and implement collaboration initiatives

To improve CIPFA Group services continuously and ensure they represent outstanding quality and value and are accessible to as many members as possible.

� Leverage the skills, knowledge and enthusiasm of CIPFA members to ensure that CIPFA products and services really do reflect best practice.

� Capture more systematically and better analyse and interpret all of our knowledge from contact with practitioners including examples of innovative or excellent practice.

� Continuously review and improve all of our services to maintain an affordable and sustainable cost base and to ensure exceptional quality and value.

� Adapt and where appropriate develop new services to address emerging issues eg pensions, remuneration strategies, sharing services, better budgeting and performance management techniques, etc. Discontinue services which are no longer as relevant in the new climate.

� Expand use of new media to provide more convenient, accessible services to more users. � Review cost structures and pricing policies.

Measuring PerformanceOur principal performance measure in relation to Strategic Theme 1 will be member, student and customer satisfaction. We intend to continue to survey opinion regularly, to report results and to utilise intelligence gleaned to improve our products and services. Sales of CIPFA products and services will be another important measure.

5 http://www.cipfa.org.uk/sharingthegain/

strategic theme 1- actions and levers (continued)


Strategic Theme 2 – To champion and support improvement in standards of public financial management and governance

Why is this theme a priority?Over the past decade international standards have developed apace. As well as International Financial Reporting Standards (IFRS) we have also witnessed the progress of International Public Sector Accounting Standards (IPSAS), International Standards on Auditing, International Accounting Education Standards, and the Code of Ethics for Professional Accountants.

High standards and good practice in public financial management and governance are a means to an end. That end is high quality decision making and the delivery of efficient and effective public services. In order for CIPFA to maintain its reputation and leadership role within the profession, we must contribute actively to the development of these standards, encourage their adoption at country/jurisdiction level, and support their implementation in relevant organisations locally. In developing countries in particular the challenges of implementation are huge and require strategic work at both national and local levels to grow and develop self-sustaining professional capacity.

Good governance in public service organisations is not yet the subject of an international code or standard. Nevertheless it is an area in which CIPFA has a strong track record which we should look to promote and further develop, not least as some governance practices are likely to be stress-tested by the challenging economic climate.

Highest standards of public financial management and governance demand high performing organisations and teams, including appropriately trained and skilled staff; clear definition of roles; effective control systems; a culture of professionalism and public service; and much more. This underlines the importance of CIPFA’s work to promote understanding of broadly focused definitions of public financial management and governance, and to develop and support implementation of models and frameworks to enable organisations to identify strengths and weaknesses, prioritise improvements and make highest standards a practical reality.

High standards are also relevant in the broader context in which public trust and confidence in Governments is at a relatively low ebb. Implementing higher standards, and being seen to do so, is not a silver bullet, but it is one practical way in which organisations can look to inspire greater trust.


Strategy Actions and leversTo influence the development of international standards, spanning financial reporting, auditing, education and ethics, encourage their widescale adoption, and support their successful implementation.

� Support CIPFA members and technical advisers on standard setting bodies and plan for their succession.

� Use membership of key groups, formal responses to consultations, speaking opportunities, articles and publications, and contacts with Governments and other professional bodies to advocate adoption of relevant standards.

� Support implementation of standards by publication of codes and guidance; organisation of courses, conferences and other events; work with donor agencies; assistance commissioned by individual organisations; promotion of the CIPFA/ICAEW Certificate in International Public Sector Financial Reporting Standards.

To lead and, where appropriate, work with partners, to develop strategic frameworks and tools for improvement of public financial management and governance.

� Promote CIPFA’s Public Financial Management - A Whole System Approach6 as a strategic framework for managing systematic improvement of financial management at country/jurisdiction level.

� Promote and support widescale implementation of the CIPFA Financial Management Model7 for driving improvement at organisation level.

� Promote and support development of codes and frameworks for better governance including the Good Governance Standard for Public Services8.

� Work with partners to encourage international sharing of good practice in relation to public sector governance at both Government and individual entity levels.

� Use membership of key groups, formal responses to consultations, speaking opportunities, articles and publications to help identify and promote best practice.

To address the challenges of more accessible, informative financial reporting.

� Build on the ‘Back to Basics’ and ‘Telling the Whole Story’ consultations to develop options for simplifying published financial statements and providing informative commentary to highlight key issues for users.

� Work with partners to develop and promote more effective reporting in relation to long term fiscal sustainability.

To promote greater transparency and accountability in Government and public bodies

� Encourage openness and sharing of information about the conduct of the business of Government and public bodies.

� Promote and support benchmarking of cost and performance information between public bodies as a natural means of questioning and improving performance and facilitating sharing of good practice.

To champion environmental sustainability throughout the public services.

� Continue to support the Prince of Wales’ Accounting for Sustainability (A4S) project. � Encourage systematic embedding of sustainability considerations within both strategic and

operational decision making. � Promote and support implementation of the A4S Connected Reporting framework and the work of the

new International Integrated Reporting Committee which positions sustainability reporting within the broader context of corporate reporting.

Measuring PerformanceOur principal performance measures in relation to Strategic Theme 2 will capture the quality of CIPFA’s contributions to national and international standard setting processes; the number of countries/public bodies which adopt and, with CIPFA’s assistance, successfully implement relevant standards; and the extent to which CIPFA’s leadership enables greater transparency and accountability, more accessible and informative financial reporting and more systematic consideration of environmental sustainability in public decision making.

strategic theme 2 - actions and levers

6 http://www.cipfa.org.uk/international/whole_system_approach.cfm 7 http://www.cipfa.org.uk/panels/financial_management/fm_model.cfm 8 http://www.cipfa.org.uk/pt/download/governance_standard.pdf


Strategic Theme 3 – To lead the debate on public financial management and governance, continuously enhancing the authority and reputation of CIPFA and its members

Why is this theme a priority?CIPFA is not like other accountancy bodies. We specialise in the distinctive challenges of publicly funded, publicly accountable organisations. Many of our members work in public service bodies which are led by elected or appointed governors with responsibility for provision of critically important services. As well as owing loyalty to their employers they have a duty to serve the public interest and to understand and observe the high standards which are expected in relation to the management of public money.

Public financial management and governance matter. How public money is managed, and how publicly funded services are led, should be questions of significant interest to every citizen in every country. The answers make a difference to people’s lives and help to shape the communities in which we live and work.

CIPFA’s panels and networks, where practitioners share ideas, discuss common concerns and strive to identify best practice, provide a vital space for debate, challenge and synthesis of new thinking.

As an acknowledged expert in public financial management and governance, CIPFA is extremely well placed to lead the debate and campaign for improvements in both systems and practice. By doing so from a vantage point which is independent of sectional interests and informed by practitioner experience, we can often make a particularly distinctive and influential contribution which is demonstrably in the public interest.

Public service organisations are constantly evolving and changing to respond to new circumstances, demands and expectations. These pressures are likely to be a feature of the next few years. In order to keep pace and to justify our reputation as experts both CIPFA and its members must therefore change too. Sometimes our role is to lead, pushing the frontiers of new ideas and new practice; sometimes it is to respond to other developments and pressures, and to assist public organisations to address new challenges boldly, with competence and confidence.

The role and importance of CIPFA members cannot be overstated here. Their conduct and performance is ultimately the yardstick by which the Institute as a whole is measured.

By continuously changing, adapting and improving we move with the times, we enhance the reputation of the Institute and CIPFA members, and we demonstrate our value and relevance in the most tangible way possible – by delivering results.


Strategy Actions and leversTo develop CIPFA’s leadership role in the global accountancy profession as the pre-eminent institute on public financial management.

� Make active contributions to the work of the International Federation of Accountants (IFAC) and the Federation of European Accountants (FEE) and other regional groupings of accountancy and auditing organisations and plan for the succession of members in key leadership roles.

� Strive to exemplify highest standards including in relation to IFAC’s Statements of Membership Obligations.

� Contribute actively to civil society agendas which support the distinctive and critically important roles of public, private and not-for-profit organisations in public service delivery and reform.

To develop and implement tailored plans for deepening CIPFA’s involvement and presence in specific target countries/jurisdictions and services.

� Identify specific services and/or countries in which the public interest is likely to be best served by more intense CIPFA involvement.

� Identify specific ways in which CIPFA involvement is likely to add most value. � Make CIPFA’s services available to more accountants working in the public services, where

appropriate entering into memoranda of understanding, mutual recognition agreements and joint projects with professional bodies and other organisations.

� Support and nurture new CIPFA groups formed to deepen involvement in specific countries, services or policy areas.

To expand engagement with both policy makers and practitioners to enable informed perspectives and insights.

� Arrange regular dialogue with public sector leaders and opinion formers. Emphasise the fundamental importance of good governance to public services which are recognised for both high value and high performance.

� Promote understanding of the practical actions required at Government, organisation and individual levels to deliver good financial management and effective governance.

� Enable better policy by representing the views, insights and concerns of practitioners clearly to policy makers.

� Develop a deeper understanding of alternative financial models and systems eg Islamic finance.

To maintain an informed view of economic conditions and how they are changing, and to review and evaluate how they are impacting on the funding and delivery of public services.

� Actively monitor how different countries/jurisdictions and organisations are responding to the prevailing climate and highlight likely medium and long term implications.

� Encourage information sharing and identify and promote effective strategies and good practice. Highlight poor practices which are likely to lead to medium and long term difficulties.

� Monitor and assess the likely impact of policy and operational responses on public financial management and governance capacity and capability in the medium and long term. Highlight good and poor practice.

To position CIPFA as an authoritative source of information, intelligence, analysis and news.

� Maintain the high quality of Public Finance, Public Money and Management, and other newsletters and briefings.

� Use new media more extensively and effectively to make more of our information - including breaking news - available more widely, more immediately.

� Ensure that CIPFA’s research and thought leadership programmes focus on acknowledged key issues and produce high quality outputs which are widely read. Ensure that follow-through activities are systematically planned, including conferences and meetings with Ministers and other key players.

Measuring PerformanceOur principal performance measures in relation to Strategic Theme 3 will capture the nature and extent of our debate leadership activity, including frequency of access to and influence upon policy makers; and extent of media coverage and profile.



Strategic Theme 4 – To increase CIPFA’s impact and influence through a growing and diverse membership

Why is this theme a priority?Members are the ambassadors of the Institute. They are the people who can make the most positive and effective impact in organisations on the front-line of public service delivery. They are the flag bearers for excellent public financial management and governance who demonstrate the quality, value and practical strengths of CIPFA’s products and services. The values which CIPFA members bring to their roles are, of course, rooted in their common initial professional development experience – the CIPFA professional qualification.

CIPFA’s membership – at nearly 17,000 members and students – is currently concentrated in the UK. There are significant opportunities, in both the UK and internationally, to grow the membership base as more and more decision makers conclude that public financial management and governance are specialist fields which require the particular knowledge, skills and expertise which CIPFA members bring to the table.

The extent of CIPFA’s impact and influence is not determined exclusively by membership numbers but there can be no doubt that they are an important factor in the Institute’s long term success.

As well as leveraging and sharing CIPFA’s knowledge and understanding of public financial management and governance, international growth will enable the Institute and its members to learn from other systems and cultures and to advance the science of public finance and accountancy in accordance with our Royal Charter. Increasing diversity within the CIPFA membership will broaden knowledge and understanding and strengthen the Institute going forward.


Strategy Actions and leversTo continue to develop CIPFA’s professional qualification to ensure that it maintains its position as the leading qualification for public financial management and governance and for those aspiring to leading roles in the profession.

� Ensure that accurate market intelligence, reflecting the changing needs of public service organisations and leaders, is brought to bear in periodic reviews of the CIPFA professional qualification.

� Ensure the effective promotion of the qualification so that public service leaders understand the specialist knowledge, skills and expertise which distinguish CIPFA members.

� Develop tailored strategies for the promotion and marketing of the qualification and appropriate variants in particular target sectors and countries/jurisdictions.

To embed the highest standards of public financial management and governance in CIPFA qualifications’ syllabi and content.

� Ensure that the syllabi and content of all CIPFA qualifications exude high standards so that CIPFA members and students continue to be recognised for their leading edge knowledge, skills and expertise.

� Ensure that CPD products and services, including courses and publications, are similarly informed by high standards and best practice so that members may clearly show that they have maintained the value and currency of their qualified status.

To enable the CIPFA qualification to be accessible to as many employers and students as possible.

� Implement new arrangements for commissioning education providers to deliver CIPFA training in order to secure increased accessibility and cost effectiveness.

� Review the available methodologies and media for e-learning and e-assessment and ensure that they are used appropriately in relation to CIPFA qualifications.

To maximise CIPFA’s reach and effectiveness as the leading international professional accountancy membership body.

� Develop effective and appropriate membership models and services for CIPFA members overseas. � Review existing subsidiary and international qualifications to assess and improve their relevance and

effectiveness in international markets. � Investigate potential professional alliances and relationships with training partners to establish

greater development capacity and delivery capability and infrastructure. � Pursue strategic reciprocal agreements with key partner organisations to develop and deliver the

maximum potential benefit of CIPFA’s unique expertise and learning content as widely as possible.

Measuring PerformanceOur principal performance measures in relation to Strategic Theme 4 will be member and student numbers; and the number and impact of strategic partnership agreements maintained by CIPFA.

Play your PartWe welcome volunteers who would relish the opportunity to play a part in helping CIPFA to deliver its strategy over the next five years. You can enquire about volunteering opportunities by emailing [email protected]


Registered office:3 Robert Street, London WC2N 6RL

T: 020 7543 5600 F: 020 7543 5700www.cipfa.org.uk

The Chartered Institute of Public Finance and Accountancy. Registered with the Charity Commissioners of England and Wales No 231060

development strategy to 2015 - CIPFA · 4 | CIPFA Development strategy to 2015 The best of times...

Documents

Transcript of development strategy to 2015 - CIPFA · 4 | CIPFA Development strategy to 2015 The best of times...