The document summarizes key aspects of talent management within finance functions. It discusses how effective talent management requires a holistic approach that identifies, develops, deploys, and retains talent. It also highlights that talent management is important for finance functions to meet various pressures and challenges, and help maximize people power. The report provides examples of how leading organizations take integrated approaches to talent management that include competency frameworks, learning and development opportunities, and structured career paths.

1. ACCOUNTANTS FOR BUSINESS
Maximising people power
EFFECTIVE TALENT MANAGEMENT IN FINANCE
A report from ACCA in partnership with KPMG

2. Maximising people power
‘ACCA recognises the value requires a holistic approach
that effective finance functions to talent management.
can bring to every organisation.
Whether in times of economic ‘The report sends some
growth, recession or gradual clear messages about the
recovery, finance professionals importance of integrated
need to provide the information talent management for
required by managers to make finance and should leave
strategic decisions and achieve no doubt that developing
day-to-day operational success. talent is a vital issue for all
finance leaders, and one
‘Each member of the finance that must be addressed if
team has an important role finance functions are to fulfil
to play, whether striving to their potential and provide
be an influential business the necessary support their
partner, meeting financial organisations need to thrive
reporting requirements or in this increasingly complex
delivering efficient transaction and challenging world.’
processing. The challenge
is to create the appropriate
finance function structure
and provide the necessary
support to enable each
individual to deliver their Helen Brand
role most effectively. This Chief executive, ACCA

3. At a glance...
Recent ACCA research confirmed Securing the right talent is one of Talent management is broader
RESEARCH
CHALLENGES
BIG PICTURE
the vitally important role that the biggest challenges CFOs face. than the individual: ensuring the
finance plays within organisations, In KPMG research among over function is structured to maximise
with over half of survey 500 senior finance executives, the talent pipeline, that roles
respondents indicating that the over 50% of respondents said are designed to give challenge
role of finance professionals had that difficulty finding and retaining and enrichment to the individual
become more important since the skilled finance professionals was a and value to the organisation,
global economic crisis. major barrier to improving finance is key to an integrated talent
function performance. This was management strategy.
One of the most critical roles their number one concern, as
is that of the Finance Business it had been in previous KPMG Finance functions face many tough
Partner (FBP) – the most studies. This is encouraging, challenges as their organisations
business-facing finance role. because CFO ‘buy in’ to talent strive to generate growth and
FBPs provide the insight and management is critically important keep costs to a minimum. Talent
analysis to support strategic – and not just when markets management will be critically
decision making. Fulfilling the role are buoyant, but for the long important for their success. The
effectively requires a mixture of term. Sustained CFO support is best way for finance teams to
strong technical and commercial necessary to maintain momentum meet the demands placed on
skills and capabilities, which behind development policies them – and provide maximum
finance professionals will not and practices. value to their organisations – is
necessarily possess unless they by systematically identifying,
have undertaken structured developing, deploying and
development activity. retaining those who make
a significant difference
and contribution to the
organisation’s success.
‘The performance of the organisational structures
finance function is invariably and career paths and
crucial to the success of competency frameworks
almost every organisation. as well as learning and
Finance directors are under development interventions.
increasing challenge to deliver And everything we do is
maximum return on investment aligned to the organisational
in capability, and there is a strategy and current situation.
universal desire to boost the
strategic and commercial ‘This report looks to summarise
impact of the function; to the key trends, with some
move from being a reactive suggestions and examples
provider of management of how companies and
information to a proactive organisations have used a
value-adding function that strategic approach to finance
shapes the strategic agenda. talent management to generate
a competitive advantage
‘Our advisors have a deep for their organisation.’
understanding of finance
functions – the roles, the
processes, the outputs –
and we tailor our activity
accordingly. We take a
holistic approach to talent Ian Lithgow
management, looking at Partner, KPMG LLP (UK)

4. Executive summary E Executive summary
This report provides a follow-up to a March 2010 ACCA survey on talent management securing the talent pipeline comprehensive learning
the challenge in bringing a preferred finance model to life is Leading organisations offer a comprehensive range of learning
practices across the finance profession1. A key finding of this research was that less than 20% that certain skills, capabilities and experience levels will be and development activities which can be selected to suit
of organisations had a talent strategy that fully integrated talent identification, development, required of the finance professionals who are employed. these individual needs. recent trends include a shift towards
deployment and retention activity across the finance team. Most talent management practices may not necessarily be available in the organisation, or even collaborative e-learning, while online finance portals providing
in the wider recruitment market. the finance model must access to management tools, research and best practice are also Financial management capability roles within the function and the skills define the return on investment in
were found to be informal, sometimes run in isolation, and often functionally based without being therefore take account of the current availability of skills, and widely used. experiential learning is particularly popular with Finance talent management: capability Frameworks framework and capabilities they would build, the development interventions.
part of an integrated, wider plan. the potential for the organisation to develop desired skills in younger finance professionals, and could include secondments,
For a major Uk bUilding society Drawing on both the client’s business client was able to boost individual
future among its retained finance professionals. creating the job rotations and ‘stretch’ assignments. Organisations are strategy and extensive experience of development (and through that, There are qualitative measures
necessary talent pipeline can be particularly challenging for increasingly developing virtual finance academies to provide a working in talent management across engagement and retention) and also in place to track stakeholder
FBPs, as these require commercial knowledge and strong softer structure to finance training and ensure consistency. financial services, KPMG developed a ensure a strong talent pipeline moved perceptions of the financial
This is a concern because finance functions now have a real Why talent management matters skills (communication and negotiation capability, for example), Background FigUre 2: excerpt From the capability development principles
framework with three distinct capability through the critical roles, delivering management function, both
opportunity to make a difference to their organisations’ success Talent management is high on the agenda for many CFOs as well as core financial expertise. structured career paths As part of a large organisation-wide categories as show in Figure 4. strong performance in the areas where from across the business and
– whether in private or public sector, listed multinational or because of the significant challenges faced by finance Organisations need to develop structured career paths for cost optimisation programme, KPMG strategic principles programme and intervention this had the highest impact. internally. Likewise, retention and
SME. The economic crisis provided heightened visibility of the functions. Finance teams are under various pressures: to aspiring FBPs, for example, will generally require focused finance personnel, so that individuals aspiring to reach a worked with one of the UK’s largest principles A blended portfolio of interventions to engagement across key segments
value that professional accountants bring, and the next decade minimise their own costs as well as costs organisation-wide, development, often involving rotations into non-financial particular position – such as that of FBP – can clearly see building societies to improve talent build capability REsulTs is tracked. Initial feedback has
Individual must take increased responsibility Individuals across financial management must
presents an enormous opportunity for finance professionals to to generate maximum value in a period of slow economic commercial roles, to help them develop the capabilities and the future steps that could help them develop the skills, management within their financial and ownership for their learning and have a consistent developmental experience and The development of the capabilities Quantitative measurement of the been strongly positive, with
help create and sustain long-term value for organisations. But growth and to position the company to take opportunities that commercial insights they need. this pipeline creation is part competencies and experience necessary. From an organisational management function. development best practice is shared was supported by a blended portfolio impact of talent management activity financial management participants
this goal depends on the people within finance and the way arise as economic conditions improve, and to respond to new of an effective workforce planning strategy, which should be perspective these are also helpful with strategic workforce of products as show in Figure 5 on business performance is notoriously recognising the investment made in
This must be a function-wide approach that a blended approach to delivery is key – a mix of
that the organisation develops and applies their talents. In an regulatory and tax pressures around the world. In order to meet developed and embedded within the organisation. planning and succession planning in the business or institution. The team was made up of around 130 difficult. The business is naturally them and the positive commercial
is flexible enough to accommodate both ‘on the job’ training, classroom based learning,
economic environment focused on cost, the ability of employers these challenges and maintain a motivated pool of finance individuals, the majority of whom had team and individual needs while providing a and coaching and mentoring Clearly defined career paths tracking spend on talent management, impact it has had, and business
to realise and leverage the talent within their finance functions professionals, CFOs need to establish great talent practices. integrated talent management performance measurement and reward a high degree of technical knowledge, consistent and high quality experience A final key element of the talent and KPMG is working with them to stakeholders both acknowledging
will be more important than ever. integrated talent management practices are the next stage the objectives against which finance professionals are targeted typically underpinned by a professional management activity was the map spend on capability-specific the commitment to commercialising
Provide tracking and mi reporting capability smes within financial management will be
talent management Within finance in the evolution of talent development and the development need to be aligned to the overall organisational strategy, with qualification. development of career paths for the training against changes in capability the function and starting to see
to identify best practice and instil a involved in materials development and delivery
Integrated talent management brings together all three elements restructuring of these processes is essential for cFOs who aspire to run rewards linked to individual achievements. tools can also continuous improvement culture finance population: by setting out the levels; identifying the correlation the impact in their dealings with
of the value creation cycle2 that ACCA has previously identified: In order to improve finance function effectiveness, CFOs great finance functions. What does great talent management enable individuals to benchmark themselves against desired Despite this strong technical expertise, typical career progression, the key between the two can then be used to financial management.
people, performance and professionalism. It recognises the typically consider restructuring finance operations. The for finance look like? Our report suggests a number of key competencies for certain roles, helping them to manage their the financial management team
importance of identifying people with talent and potential, and preferred operating model for finance will be determined components, which cover all aspects of the individual’s own career development. was not well-regarded within the management activity, and act as with the client. This evaluation, along
of creating targeted development opportunities. in part by the characteristics of the organisation and the employment experience. company. Poor accuracy of data and an anchor throughout the work: with the individual’s stated goals and
wider economic environment. However, talent management ongoing review reporting skills, a perceived lack of all activity is validated against the aspirations, shaped the creation of a
It links recruitment and development structures with must be incorporated into any planning for finance function definition of talent the talent management framework needs to be regularly decisiveness, and limited knowledge principles to ensure it is strategically bespoke development plan. Figure 4: Capability Categories
competency frameworks, performance appraisals and reward restructuring. The success of moves to streamline finance the organisation needs to clearly identify what talent looks like assessed to ensure it continues to meet the requirements of the of the building society and financial aligned and adding value.
systems, creating clear standards and reference points so activity, reduce transaction costs or improve the ability of – the key skills and behaviours that finance professionals need wider organisation and the finance function itself. market as a whole meant the financial The next stage was for KPMG to
management team were not providing critical success factors work with the client on developing a Technical capabilities These focused on defining the core technical accounting and finance
that a culture of high performance can be developed. These finance to provide insight to operational managers depends to have in order to deliver the organisational strategy. skills needed by finance professionals
practices also help organisations sustain value, because great ultimately on the availability of individuals with the right mix the drive for transparency constructive insight or challenge, or As with the above principles, KPMG capability transformation programme
talent programmes ensure the right behaviours and promote the of knowledge and experience which must be facilitated by recruitment and talent identification With pressure on costs across organisations, transparency of assisting the organisation in making worked consultatively with the client to that would ensure both the function as Enabling knowledge Designed to build understanding of the company, the current financial
importance of professionalism. Finance professionals play a key effective talent management. Furthermore, the future demands recruitment activity needs to take account of short-term and talent management spend is increasingly important. though strategic decisions. identify the key factors necessary to the a whole and its individual employees market and the changes it is going through. Building these capabilities
would allow the client to add commercial value and move beyond being
role in sustaining value for the long term, adjusting their focus and needs that will be placed on the finance function will long-term needs. sometimes experienced hires can fill core evaluating return on investment is notoriously difficult in this success of the activity. Once defined, effectively contributed to delivering the
technical experts
according to the changing environment in which they work require differences in the way talent is identified, determined vacancies while younger finance professionals are developing area, new effort is being placed on finding ways to measure As a result, the building society had the interventions were developed to building society’s strategy.
and the challenges it creates. Integrated talent management and developed. their skills. talent may also be recruited from elsewhere in the the impact of spending on different forms of learning and a finance team who, although very ensure that they incorporated the Behavioural capabilities Based on the client’s leadership behaviours and values, these defined
strong technically, were ineffective critical activity on which success is capaBility transformation the behavioural traits that are fundamental to operating effectively and
frameworks are an essential ingredient to creating and organisation, bringing individuals into finance who have an development and other aspects of the talent management
professionally across the business
sustaining value for the long term. finance function effectiveness established business or commercial understanding. framework. in this way, spending can be targeted on activities in translating this expertise into recognised as being dependent. There were two main elements to the
A CFO’s preferred model for finance could incorporate a that have most impact on the creation of an effective, effective organisational support. finance talent management led by
This report looks at how talent management can shape and number of elements: centres of excellence bringing together competency frameworks strategically aligned and value-adding finance function. The team needed to be strategically While the principles defined the KPMG: the development of a financial Figure 5: a blended portFolio oF produCts
influence the structure of finance functions, and highlights the specialists in disciplines such as tax or risk, shared services these define the technical, business and behavioural aligned to the organisation talent management requirements for management capability framework,
practices organisations should be adopting in order to deliver to improve efficiency, outsourced or offshored services to competencies required in every finance role at each level. and more proactive in order to the business, KPMG also evaluated and the construction of a blended
Classroom training Bespoke modules were developed for the client and the existing
the best possible talent development for finance professionals. reduce costs and improve transaction quality and flexibility, they can be used to benchmark existing talent, identify talent function across the organisation every employee against the capability development portfolio to build the portfolio was mapped against the new capabilities
and business partnering to provide analysis and support to the gaps and develop structured career paths that enable finance as genuine commercially-focused framework developed in conjunction required capabilities.
organisation through commercially minded finance business professionals to develop the necessary skills and competencies. business partners. Masterclasses and Activities such as key industry speakers and access to recommended
knowledge forums books or journals assisted the financial management team in keeping up
partners (FBPs). The FBP role has become increasingly to date with market conditions
important, positioning finance as a key provider of business targeted development approach
analysis and insight to support decision making and some finance roles will be more critical to the success of KPMG was asked to review the On-the-job learning A structured approach to knowledge transfer on the job, allowing instant
achievement of strategic objectives. approach to talent management FigUre 3: excerpt From the critical sUccess Factors application of skills acquired
organisations. the developmental needs of individuals in these
roles should take priority where resources are scarce. Note that within financial management. Working Coaching and mentoring The use of business subject matter experts to share expertise and
junior roles can be as critical as more senior ones. with the client, a set of capability embedded in the Capability development will not work in isolation – it must be develop junior employees, with the added benefit of a reduction in key
development principles and some people and performance integrated into all people and performance management processes, man dependency
critical success factors were defined. management processes such as retention, talent development, reward and promotional criteria
E-learning A cost-effective, easily measured and highly flexible intervention
targeted and mandatory The capability development interventions and activities are targeted at
capability development principles specific development needs and at driving up the overall capability of Work shadowing and A centrally coordinated approach to building capability within key talent
Key to KPMG’s methodology is the financial management. job rotation populations through work allocation
development of guiding principles. ‘Non-attendance and non-completion will not be acceptable’, which
These provide the link between would mean by not completing the required training the individuals’
1 Talent management in 2010: foundations for growth, ACCA 2010 objectives cannot be met for the year
2 The value creation model for business: 2010 and beyond, ACCA 2010 organisational strategy and talent
6 maximising people power: effective talent management executive summary 7 maximising people power: effective talent management 19 20
in finance in finance
In‑depth
About the report
case studies
Maximising people power: This is a concern because finance
effective talent management functions now have a real opportunity to
make a difference to their organisations’ In addition to the survey results,
in finance provides a follow‑up success. The economic crisis provided the report includes case studies
to a March 2010 ACCA heightened visibility of the value that with leading organisations:
survey on talent management professional accountants bring, and
the next decade presents an enormous TALENT MANAGEMENT IN
practices across the finance
opportunity for finance professionals to FINANCE TRANSFORMATIONS
profession. A key finding of help create and sustain long-term value The UK arm of a major European
this research was that less for organisations. But this goal depends Life Insurer worked with KPMG
than 20% of organisations had on the people within finance and the to transform its finance function
way that the organisation develops and by designing an organisation that
a talent strategy that fully
applies their talents. In an economic delivers the overall strategy – and
integrated talent identification, environment focused on cost, the ability has finance talent management
development, deployment of employers to realise and leverage principles embedded at all levels.
and retention activity across the talent within their finance functions
will be more important than ever. TALENT MANAGEMENT AND THE
the finance team. Most talent
FINANCE BUSINESS PARTNER ROLE
management practices were The report looks at how talent KPMG recently worked with two
found to be informal, sometimes management can shape and influence clients to develop the strategy
the structure of finance functions, and and structure of finance business
run in isolation, and often
highlights the practices organisations partnering within their organisations.
functionally based without should be adopting in order to deliver
being part of an integrated, the best possible talent development FINANCE TALENT MANAGEMENT:
wider plan. for finance professionals. CAPABILITY FRAMEWORKS FOR A
MAJOR UK BUILDING SOCIETY
One of the UK’s largest building
societies worked with KPMG to
improve talent management within
their financial management function,
as part of a large organisation-wide
cost optimisation programme.
For the full report:
www.accaglobal.com/accountants_business

5. Headline findings
WHY TALENT MANAGEMENT This can be particularly challenging • definition of what real talent looks like
MATTERS when seeking to develop finance
• recruitment of individuals with
Talent management is high on the business partners (FBPs) – finance
appropriate skills, capabilities and
agenda for many CFOs because of the professionals who work closely with
development potential
significant challenges faced by finance operations to provide a ‘finance lens’
functions. Finance teams are under on organisational decision making. • competency frameworks to define the
various pressures: to minimise their own This is a high-profile finance role, and key talent requirements
costs as well as costs organisation-wide, one with the potential to add great
• targeted development to ensure
to generate maximum value in a period value to the organisation. But it also
limited resources are focused on the
of slow economic growth and to position demands a broad mixture of skills and
most critical finance roles
the company to take opportunities that competencies, which can usually only be
arise as economic conditions improve, developed through a structured training • comprehensive learning, with a range
and to respond to new regulatory and and development programme. of development options
tax pressures around the world. In
• structured career paths to help
order to meet these challenges and SECURING THE TALENT PIPELINE
individual finance professionals
maintain a motivated pool of finance The challenge in bringing a preferred
develop their skills and careers in line
professionals, CFOs need to establish finance model to life is that certain skills,
with organisational needs
great talent practices. capabilities and experience levels will be
required of the finance professionals who • performance measurement and
Integrated talent management sits at the are employed. These may not necessarily reward to align finance professionals
heart of finance function effectiveness be available in the organisation, or and their achievements with the
and is therefore of critical importance. even in the wider recruitment market. delivery of organisational strategy
It is an essential requirement if finance The finance model must therefore
functions are to meet the changing and take account of the current availability • ongoing review to ensure the talent
challenging demands made of them, of skills, and the potential for the management framework continues to
and ensure they have appropriate organisation to develop desired skills meet finance and organisational needs.
professionals with the right skills and in future among its retained finance
competencies available in the right professionals. Creating the necessary Adopting an integrated approach to
place at the right time. This is a key talent pipeline can be particularly talent management offers a tremendous
factor in supporting the value creation challenging for FBPs, as these require opportunity to add value and build the
cycle, whereby finance professionals commercial knowledge and strong softer influence of the finance function within
apply their talents and skills to support skills (communication and negotiation organisations: too often the people
organisational performance and enable capability, for example), as well as core and talent implications of activity are
value to be sustained for the long term. financial expertise. overlooked or misunderstood. Our
experience shows that the organisations
TALENT MANAGEMENT WITHIN Aspiring FBPs, for example, will that put talent management at the heart
FINANCE RESTRUCTURING generally require focused development, of their finance function are building
In the drive to develop the most efficient often involving rotations into the capability that gives the finance
and effective finance functions, CFOs non-financial commercial roles, to function – and through them the wider
have shown themselves willing to adopt help them develop the capabilities and organisation – a competitive advantage
new structures and operating models. Yet commercial insights they need. This and invaluable source of differentiation
identifying the most appropriate finance pipeline creation is part of an effective in an economic climate where that has
function structure cannot be undertaken workforce planning strategy, which never been more important.
in isolation. It must be designed in should be developed and embedded
the context of the prevailing economic within the organisation. THE DRIVE FOR TRANSPARENCY
climate and the specific organisational With pressure on costs across
characteristics. Fundamentally, organisations, transparency of talent
INTEGRATED TALENT MANAGEMENT management spend is increasingly
talent management issues must be
Ensuring the talent pipeline is flowing important. New effort is being placed
considered from the start to ensure that
properly for FBP and all other finance on finding ways to measure the impact
the preferred finance function model
roles takes time and commitment. of spending on different forms of
is achievable.
It requires an integrated talent learning and development and other
management framework containing a aspects of the talent management
number of key elements: framework. In this way, spending can
be targeted on activities that have most
impact on the creation of an effective,
strategically aligned and value-adding
finance function.

6. ACCA (the Association of Chartered Certified Accountants)
About ACCA
is the global body for professional accountants. We aim to
offer business-relevant, first-choice qualifications to people of
application, ability and ambition around the world who seek a
rewarding career in accountancy, finance and management.
Founded in 1904, ACCA has consistently held unique core
values: opportunity, diversity, innovation, integrity and
accountability. We believe that accountants bring value to
economies at all stages of their development. We seek to develop
capacity in the profession and encourage the adoption of global
standards. Our values are aligned to the needs of employers
in all sectors and we ensure that, through our qualifications,
we prepare accountants for business. We seek to open up the
profession to people of all backgrounds and remove artificial
barriers, innovating our qualifications and their delivery to meet
the diverse needs of trainee professionals and their employers.
We support our 140,000 members and 404,000 students
in 170 countries, helping them to develop successful careers
in accounting and business, based on the skills required by
employers. We work through a network of 83 offices and centres
and more than 8,000 Approved Employers worldwide, who
provide high standards of employee learning and development.
Through our public interest remit, we promote appropriate
regulation of accounting and conduct relevant research to ensure
accountancy continues to grow in reputation and influence.
KPMG LLP, a UK limited liability partnership, is a subsidiary of
About KPMG
KPMG Europe LLP and operates from 22 offices across the UK
with nearly 11,000 partners and staff. The UK firm recorded
a turnover of £1.6bn in the year ended September 2010.
KPMG is a global network of professional firms providing
audit, tax, and advisory services. We operate in 150 countries
and have more than 138,000 professionals working in
member firms around the world. The independent member
firms of the KPMG network are affiliated with KPMG
International Cooperative (‘KPMG International’), a Swiss
entity. KPMG International provides no client services.
The information contained in this publication is provided for general purposes only. While every effort has been made to ensure that the information is accurate and up to
date at the time of going to press, ACCA and KPMG accept no responsibility for any loss which may arise from information contained in this publication. No part of this
publication may be reproduced, in any format, without prior written permission of ACCA. © ACCA February 2011.