Accounting Complexity and Resource Planning Revisited. Eric Ennes Babson Capital Management, LLC

Transcription

1 Accounting Complexity and Resource Planning Revisited Eric Ennes Babson Capital Management, LLC

2 Our Discussion Topics The evolving role of a controller in today s business environment Weighing growth and complexity against sufficient accounting controls Workforce Management: Planning the appropriate level and types of resources Motivating and retaining staff / Providing staff education and training Our Objective Today: Share Observations, Thoughts, and Ideas

3 The evolving role of a controller in today s business environment Increasing regulation and complex accounting rules are constantly expanding your role and responsibilities When ever and where ever possible, educate your company, and its senior management Financial statement complexities Consolidation-palooza Footnotes, footnotes, and more footnotes Risk management and mitigation Controls are becoming trendy in the business Take advantage of this! No longer a back office job An evolving leader in every organization So, what s a leader? LEADERSHIP is making others BETTER as a result of your presence and MAKING SURE that impact lasts in your ABSENCE - Sheryl Sandberg, COO Facebook What do leaders do? Support decision makers in your group encourage them to take calculated risks Coach according to each individual s needs remember, everyone has their own motivations Teach and encourage creativity this usually results in improved engagement and increased efficiencies Lead Up Teach your team how to get you to listen and understand them Inspire and Engage Get your team to do what is needed because they want to, not just because you want them to What can I do? Know your staff as a group and individually; then execute situational leadership (talent, tenure, & tendencies) Know your leadership style and look to manage conflicting areas Empower your staff Develop the next generation of leaders for your team

4 Weighing growth and complexity against sufficient accounting controls Growth and Complexity Organizational Growth New Products & Channels New International Markets Central Support of Global Operations Growth Through Acquisition Constant Accounting Changes Employee Excitement Sufficient Accounting Controls Organizational Risk Internal Accounting Complexities Regulatory Reviews & Reporting Tax, Transfer Pricing, Business Presence Dilemmas Extensive Purchase Accounting Requirements Accounting Policy Reviews & Staffing Accounting Control Evidence Requirements The Controller s Role: Find the right balance of these for your company; then get out in front and educate your organization

5 Planning the appropriate level of resources Accounting policy changes and demands are seemingly never ending A real strain on our resources - IFRS Conversion (if ever) - Foreign & Domestic Regulatory Changes - Increased Disclosure Requirements - Redefine a Going Concern - Revised Consolidation Determination Rules - Financial Instruments - Insurance Contracts - Revenue Recognition - Foreign Currency Matters - More Intense Auditor Standards from the PCAOB What do you do? Prioritize / Assess Impact / Partner with your audit firm - Make a list Yes, MAKE A LIST! - Work down that list, in order of importance - Your audit firm can help you influence the staffing process For associate development (as part of staffing) you should consider: - Rotational assignments on your team - If you are a global firm, geographic opportunities for development (boots on the ground) Develop an ongoing talent assessment process - Map the requirements to your team s capabilities and define the gaps, then initiate training, or hiring (if you can) - The job market is improving manage burnout very closely - Implement (or re-visit) succession planning regularly (we re going to need it)

6 Motivating and retaining staff Learn to manage individual team members based on their generational tendencies Baby Boomers - Live to work - Work is very important Generation X - Work to live - Seek to balance work and life Generation Y and Millenials - Work my Way - Aspire to blend work and life Understand what motivates each associate match your management style to their motivational mindset - Prevention Focus (what can I lose?) VS Promotion Focus (what can I gain?) Manage Globally - Match your style to the cultural differences Keep an eye out for market based compensation adjustments - Accounting is growing alongside the so-called STEM labor sectors - Unemployment rates are low, and due to increased specialization, demand is growing Lastly, when you can, MAKE IT FUN and above all, SHOW THAT YOU CARE - Multiple demands, routine, and boredom can destroy morale, and increase turnover - Organize relief efforts BUT, find out what they like, not what you like - Promote and openly communicate associate development

7 Providing staff education and training A suggested approach to training - View it as more than CPE credits - For some, it can be used as a reward system (they might like the travel, networking, etc.) - Enhancing specialized skills on your team benefits them and your firm. If the labor market continues to improve, you may be training the street, but you need to accept this an move on. Encourage education and training on non-accounting topics, where this skill set could improve the overall effectives of your accounting organization - Project management - Communications - Leadership

8 Questions? Contact Information: Eric Ennes - Managing Director, Global Controller (O) (C) [email protected] Babson Capital Management, LLC 470 Atlantic Avenue Boston, MA 02210