It is Not What You Know, It is How You Share It
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Transcript of It is Not What You Know, It is How You Share It
It is Not What You Know, It is How You Share It
Mike JEANSPast President,Chartered Institute of Management AccountantsIndependent Management Consultant,Quagon ConsultingUnited Kingdom
It's not what you know, it's how you share it...
Mike Jeans
World Congress of Accountants
Hong Kong 2002
DRIVERS OF CHANGE
Main micro-drivers of change and their effects:
globalisation advances in ICT transformation to a knowledge economy dynamics of change demand for accountability (FMAC)
Interconnected factors
AGES OF THE ORGANISATIONTribal Agrarian Industrial Information Knowledge
Marketpiece Local Territory LocalCommunity
NationalColonial
International Global FreeTrade Areas
Vision Onegeneration
LandOwnership
MechanisationResourceownership
Market shareincrease
Long-termsustainability
Strategy &Goods
Survival offittest
Sustainabilityof land
EntrepreneurialProfit
Market shareProfit
FlexibilitySpeedCreativity
Processesand systems
Personalattributes
Crop rotationFarm Methods
MechanicalPaper based
IT based IT basedKnowledgebased
Resources Natural LandFarm Tools
Power sources(Steam, coal)Minerals
Technology TechnologyInformationPeople
Structure andrelationships
FamilyTribal Unit
FamilyCollective Unit
ComplexStructured
MatrixHierarchical
NetworksAlliancesVirtual Groups
KNOWLEDGE MANAGEMENT
The term coined by Peter Drucker in 1960sKnowledge as a key resource in today’s
economyKnowledge workers are the new capitalists
– they own the means of production – their knowledge
Capitalists in the traditional sense – becoming majority stakeholders through their stake in pension and mutual funds
DEFINITION
“Knowledge Management involves efficiently connecting those who know with those who need to know, thus converting personal knowledge into organisational knowledge”
WHAT KNOWLEDGE MANAGEMENT ISN’T
Devalued through overuse?A consultant-driven fad?Not an end in itself -- can’t be
implemented in a one-off initiative or by purchasing a piece of expensive new software
Technology just an enabler - allows scalability
OVERARCHING BUSINESS PURPOSE
Clear business purpose and benefitsA value proposition to inform the
implementation and drive it through every part of the system, including organisational culture
CULTURE
“You can’t manage knowledge, you can only manage the culture that leads to that knowledge being shared.”
But managing culture isn’t easyCulture influenced by structure,
resources, processes and systems
KPMG model
MARKETPLACE
MARKETPLACE
Vision
Vision
Resources
Processes and systems
Strategy and goals
Relationships and
structure
Culture
and values
KNOWLEDGE SHARING
Knowledge is power (especially in recession!)
Breaking down silo mentalityIncentivising knowledge sharing
ACCOUNTING KNOWLEDGE
Knowledge -- not information -- equals power
“Local knowledge and technical competence will be insufficient, instead a premium will be placed on value-adding contributions to management” FMAC
STRATEGIC ENTERPRISE MANAGEMENT
A management approach best suited to bridging the gap between strategy and operations
A process, not a systemRight people in the right place having
access to the right expertiseBETTER DECISION MAKING
Knowledge hierarchy
Wisdom
Knowledge with insight
Knowledge
Information with meaning
Information
Data with context
Data
Facts, observat ions, data points
SEM
STRATEGIC ENTERPRISE MANAGEMENT
SHAREHOLDER VALUE*Creation *Protection *Risk/return
Decisions
Decisions
Decisions
CULTURE, PEOPLE, STRUCTURE, PROCESS, SYSTEMS
EmpowerOperations
InformStrategy
Empower Operations
Inform Strategy
ABC BSC SEM Capability
SEM IMPLICATIONS FOR ACCOUNTANTS
Reducing the power of the finance function
But -- freeing up time to allow accountants to focus on more value-added activities
Repositioning of accounting function
IMPLICATIONS FOR THE ORGANISATION
Capitalising on knowledge creating a learning organisation
Knowledge can never be ‘owned’ by the company, only rented
Knowledge is portable -- implications for recruitment and retention
The virtue of forgetting
IMPLICATIONS FOR ACCOUNTING
Loss of distinction of accounting knowledge
Breakdown of silos -- teamwork
Continuing education and lifelong learning
Responsibilities of professional bodies --
CPD
Non-traditional delivery methods (Internet
and beyond)
SOFT or ‘PEOPLE’ SKILLS
Accountants becoming effective business partners: leadership communication influencing negotiating change management team building social and cultural skills
– The New CFO of the Future, KPMG & ICAA
FUTURE OF THE FINANCE FUNCTION
Accounting is still relevant despite the changes in the nature of accounting knowledge
FUTURE CHARACTERISTICS OF FINANCE
Finance Staff• Strong commercial acumen• Good analytical skills• Effective interpersonal skills• Consultative approach• Coaching ability
Finance Processing• Focussed on adding value• Integrated into business processes• Automated• Efficient and Effective
Finance Culture• Forward looking• Appreciate value rather than cost• Encourage openness and sharing of best practice• Encourage partnering with the business
Finance Systems• Flexible• Use emerging technologies• Integrated across the business• Reflect user’s requirements• Embedded controls• Enabling rather than constraining
Finance Strategy• Aligned with business strategy• Linked to business objectives• Practical and measurable
Finance Structure• Split accountability and responsibility• Be integrated with the business• Include a central advisory team
QUESTIONS
How does change impact on: CPD? Syllabus? context in which we train -- practical
experience? length of training? entry requirements?