In the News: CGMAs Can Bridge the Gap in Human Capital Management
David McCann at CFO.com spoke with Arleen Thomas, CPA, CGMA, AICPA SVP of management accounting, about a recent talent management survey for Chartered Global Management Accountants conducted jointly between the AICPA and the Chartered Institute of Management Accountants by the Economist Intelligence Unit. The report found that 43 percent of the CEOs, CFOs and human resource directors surveyed said their companies have missed financial goals in the past 18 months because of inadequacies in human capital management. Almost the same number, 40 percent, indicated that such shortcomings—which could include insufficient systems, processes or management information—have hindered their ability to innovate. “We believe that talent and the human dimension drive business growth and companies haven’t focused enough on that,” said Thomas. “Too many companies look at talent in terms of what they have to do to comply with labor laws and regulations, rather than understanding that it can be a competitive differential.”
The report recommends four steps for organizations to improve their human capital strategies:
- Get the right information. Human capital information needs to be credible and accurate. But data alone will not ensure it is useful or relevant when it comes to implementing the organization strategy. It also needs to be analyzed and translated into relevant and actionable information and insight to provide effective decision support.
- Establish accountability. Organizations must ensure there is clarity on responsibility, accountability and ownership for human capital performance management. The research findings highlighted that, for the most part, the CFO has the mandate from the CEO to take responsibility for measuring human capital performance.
- Set better performance measures. Organizations need to develop human capital metrics aligned to support and implement the broader business strategy. The measurement and management of such metrics need to come under the same level of scrutiny, focus and controls for both accuracy and relevancy as financials and other key data.
- Encourage partnering. Restructure for closer collaboration at the executive and operational levels, particularly encouraging partnering between finance and HR. In this partnering role, CGMAs can support HR and the firm in making credible human capital investment proposals and decisions based on robust management information.
Thomas added, in an AICPA press release, “It is clear from our research that many companies are falling short of their potential because they lack thorough, relevant information about their people to support effective strategy, hiring and training decisions. CGMAs can bridge this gap, combining broad perspective and analytical rigor to ensure the right focus and metrics that align talent management with business strategy.”
On July 1, 2013, CPAs from other states may find themselves singing the late 80s LL Cool J hit ‘Going Back to Cali.’ Accounting Today reported that California Governor Jerry Brown signed a law Thursday allowing CPAs from outside California to practice across state lines without needing an additional license. The law will bring California into conformance with the laws of 48 other states and the District of Columbia. "It is a significant benefit to CPAs with valid licenses in other jurisdictions who already practice in California or who would like to do so. Congratulations to the California Society of CPAs for its sustained efforts to achieve this milestone and to all the CPA firms and individual CPAs who contributed so tirelessly to the effort,” said AICPA president and CEO Barry Melancon.
CPA Practice Advisor recently wrote an article on the winners of the 2012-13 John L. Carey Scholarship award. The article notes that the AICPA has awarded a total of $50,000 in scholarships to ten students with liberal arts and other non-traditional undergraduate degrees that are pursuing graduate accounting degrees. “Education is a journey, not a destination. These deserving students will take lessons from their undergraduate backgrounds and apply them to their graduate accounting studies in a way that will provide a unique perspective which will serve them throughout their professional careers,” said AICPA Foundation President George Krull. The application deadline for the 2013-2014 AICPA John L. Carey Scholarship is April 1, 2013. Congratulations to the 10 winners!
Speaking of winners, the AICPA was recently named one of the top ten winners of the American Business Awards. Winners were determined by a points system based on the total number of awards won in the ABAs, with a Gold Stevie Award win counting for 3 points, each Silver Stevie Award for 2 points and each Bronze Stevie win counting for 1.5 points. Go, team AICPA go!