The Benefits ofCertification for FP&A Professionals

Report
The Benefits of
Certification for
FP&A Professionals
Sara Nichols
VP of Finance, Kforce Inc.
March 15, 2013
Content Based on AFP Whitepaper
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Agenda
 Why the FP&A Certification?
 Role of AFP in the Certification
 FP&A as a Profession and Function
 Certification Development and Timeline
 Questions/Comments
3
Why the FP&A
Certification?
4
Role of Professional Certification
 Develops people- acquisition of
knowledge, skills and abilities
 Qualifies people- confirmation that people
have required knowledge, skills and
abilities
 Distinguishes people- differentiates
between proficiencies
 Recognizes people- acknowledgement of
people who consistently perform to
standards
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Role of Professional Certification
Helps employers by:
 better defining and developing technical job
competencies
 identifying job candidates who have acquired those
attributes
Helps practitioners by:
 developing knowledge and skills required to perform
technical job competencies
 recognizing competence - elevating professional status
 advancing career and improving marketability
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Role of AFP
in the
FP&A Certification
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AFP Mission
To be the global resource and
advocate for the finance profession
 Network of 16,000 individual members and
150,000 registered subscribers worldwide
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AFP Experience as Certifying Body
 Sponsor of the Certified Treasury
Professional (CTP) and Certified
Cash Manager (CCM) credentials
 Earned by more than 24,000
individuals in 54 countries since 1986
 2,500~ individuals register annually
to take exam
 83% of Fortune 500 companies hire
CTPs
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AFP Experience as Certifying Body
AFP has demonstrated know-how to:
 develop and maintain a psychometrically
sound and legally defensible credential
according to industry approved best
practices
 develop and use professional standards to
certify individuals
 to facilitate and administer a certification
created by and for finance practitioners
10
Resource for Reliable, Unbiased Content
 30+ years as provider of educational
programs
 Original content, practitioner driven: not a
pay-to-play model
 Publisher of body of knowledge for a
certification
 Not-for-profit organization
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FP&A as a Profession
and Function
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What is Included in the FP&A Function?
Strategic Planning
and Budgeting
Financial Measures
and Performance
Metrics
Preparation of Financial
Presentations for BOD
Coordination with
Divisional Teams on
Key Deliverables
Financial
Planning &
Analysis
Ownership of Core
Processes and Enabling
Technology, Drive
Standardization
Analyze Results and
Trends, Model
Scenarios
Forecasting (demand,
cash flow,
performance)
Corporate &
Business Reports &
Analysis
13
FP&A as a Field / Function
 High value in being able to transform data
into knowledge (Where can the
organization produce greatest ROI?)
 Growing importance of function (Where is
the company going?)
 Practitioners taking on expanded roles in
FP&A practice within organizations
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FP&A as a Field / Function
Sits at intersection of
 Accounting
 Treasury
 Finance
and
 Sales
 Operations
 Investor Relations
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Challenges Facing FP&A Professionals
 Varied organizational reporting structures,
inconsistent visibility
 Limited professional development
resources available
 higher education
 continuing education
 best practices
 No agreement on job performance
competencies
 Little consensus on proper techniques
companies use to model and forecast
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Field of Financial Planning and Analysis
“The hottest position today is financial
planning and analysis.”
(Korn Ferry International’s
Chuck Eldridge, 2009)
“64% of executive level (CFO, CEO) [survey]
respondents report FP&A hardest position
to fill.”
(APQC/ American Productivity and Quality Center,
Sept, 2012)
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Certification
Development and
Timeline
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FP&A Certification Drivers
Need for:
1. Defined universal principles and
standards of practice for the complex
FP&A profession
2. Practitioners to be recognized for their
understanding of those complex
processes, tools and best practices and
therefore well-positioned to drive strategic
business decisions at companies
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Process of Designing a Valid,
Defensible Certification Program
Sequential steps:
1. Job Analysis- job tasks and the knowledge,
skills and abilities (KSA) needed
2. Test Specifications- importance of tasks,
KSAs by domain, cognitive level of knowledge
3. Body of Knowledge- principles and
standards of professional practice
4. Assessment- bank of items
5. Cut Score- minimum competency level
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FP&A Job Analysis Process and Findings
 12 FP&A volunteers recruited
 Diverse group
 Years experience, industry, members/nonmembers
 2 ½ day facilitated discussion
 Identified consensus of tasks and processes
 Created profile of the AFP Certified FP&A
Professional
 Review of survey instrument and results
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JTA Survey: Highlights of Findings
 Tasks always performed and
extremely important
 Validate data (i.e. assess quality/consistency
of data)
 Build budgets, forecasts, annual plans
 Use basic and advanced spreadsheet
functions
 Tasks seldom performed, low
importance
 Work with rating agency professionals
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JTA Survey: Highlights of Findings
 Extremely important knowledge,
skills, abilities (KSAs) needed:
 Ability to communicate with and gather
information from business partners
 Ability to integrate information and data into
analysis
 Ability to create financial statement projections
 Ability to perform variance analysis and
reporting
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JTA Survey: Highlights of Findings
Extremely important KSAs, cont’d
Knowledge of database structures
and functions
Ability to implement basic
spreadsheet functions
Ability to implement advanced
spreadsheet functions (cross
tabulations, matrix tables, macros,
etc.)
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JTA Survey: Highlights of Findings
 70% of respondents have graduate
degrees
 Global profession- 30% non-U.S.
 51% have 2-5 individuals in
immediate FPA group
 Financial Planning and Analysis in
most job titles
 Reports to CFO, VP/SVP Finance,
Treasurer or Controller
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FP&A Test Specifications
 Multi-part exam
 Part 1: Financial Acumen- 100-150 items
• Domain A- Gathering and interpreting information
• Domain B- Communicating/coordinating work with
other professionals
 Part 2: Financial Analysis-100-150 items
• Domain A- Analyzing information
• Domain B- Building financial projections
• Domain C- Using technology/software
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Development Timeline
 ID reference materials (reading list, item
citations)
 Write items (~1,200)
 Develop exam prep product (available Sep
2013)
 Deliver Beta exam (Sep/Oct 2013)
 Registration open (Nov 2013)
 Deliver live exam (Feb 2014)
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Development Timeline
 Finalize
 Requirements including education, experience,
continuing education, etc.
 Pricing and exam delivery options
 Grandfathering criteria, policies and
procedures
 Exam update process/frequency
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The New FP&A Credential
Will…
 Set standards in the corporate FP&A profession
 Be a symbol of excellence
 Signify that an individual has:
 demonstrated the knowledge and skills
required to perform competently in today's
complex finance environment
 passed a rigorous examination
 agreed to abide by a professional code of
ethical conduct
 committed to keeping knowledge current by
meeting continuing education requirements
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FP&A Resources from AFP
 FP&A Newsletter
 Monthly, 11,000+ subscribers from 110 countries,
editorial advisory board
 Facilitated Roundtable Discussions
 Led by Brian Kalish, around the country/world
 Track at AFP Annual Conference
 Educational sessions, networking events
 Webinars, virtual seminars
 LinkedIn Group
 Research
 Cost of Capital Survey
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Get Involved!
 Let us know what you want to learn about
 AFP Annual Conference
 Webinars, seminars
 Share your knowledge
 Write an article (750 words)
 Participate in a FP&A Roundtable
 Volunteer on committees
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Certification for FP&A Professionals
Donna Berzellini
Managing Director,
Certification, AFP
Brian Kalish
Finance Practice Lead,
AFP
[email protected]
[email protected]
301.961.8809
301.961.6564
www.FPAcert.org
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Certification for FP&A Professionals
Questions and Comments?
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