BOTSWANA INSTITUTE OF CHARTERED ACCOUNTANTS (BICA)

Transcription

1 1 BOTSWANA INSTITUTE OF CHARTERED ACCOUNTANTS () STRATEGIC PLAN FINAL JANUARY 2013

2 2 TABLE OF CONTENTS TABLE OF CONTENTS... 2 PURPOSE OF THIS DOCUMENT... 4 DOCUMENT AMMENDMENT HISTORY... 4 PRESIDENT FOREWORD... 5 CEO S FOREWORD... Error! Bookmark not defined. 1. THE STRATEGY DEVELOPMENT PROCESS STRATEGY EXPECTATIONS & ASSUMPTIONS Strategy Expectations: Strategy Assumptions: THE VISION, MISSION AND CORE VALUE STATEMENTS Vision Mission Core Values Core Values CURRENT REALITY The Distinctive Competencies of s Competitive Advantages Major Current Concerns about Structural Factors that enable or hinder from Operating Effectively Structural Factors that Enable Structural factors that Hinder Emerging Stakeholder Requirements THE STRATEGY MAP THE CORPORATE SCORECARD Results (Impact) Perspective Customer & Stakeholder Perspective Internal Process Perspective STRATEGY CORE TEAM STRATEGY RISK ANALYSIS... 20

3 3 9. Implementation Roadmap - Way Forward DEFINITION OF TECHNICAL TERMS ABBREVIATIONS & ACRONYMS CONSULTANT DETAILS... 26

4 4 PURPOSE OF THIS DOCUMENT This document captures the Strategy The Strategy was developed by members of the Secretariat management team and Council through a facilitated workshop process. DOCUMENT AMMENDMENT HISTORY Version Date Description of Amendment Amended by August 2012 Create First Draft Chilipi Mogasha August 2012 Incorporate comments from Chilipi Mogasha August 2012 Incorporate further comments Chilipi Mogasha from September 2012 Final document Chilipi Mogasha

5 5 PRESIDENT FOREWORD As the strategy period draws to a close, I look back with Pride and satisfaction that the strategy has given a much needed direction and focus to steer the institute. The last 3 years have been a key period for the Institute, seeing through the transition from BIA to through the enactment of the Accountants Act 2010 and formation of Botswana s first Professional Chartered Accountancy qualification. I wish to express my sincere appreciation to our Past Presidents, Council Members and management for their efforts in rolling out the strategy and making what it is today. Special appreciation to go to Ministry of Finance and Development Planning, the World Bank and Institute of Chartered Accountants in England & Wales for their guidance and support through the process and most importantly to our stakeholders, members and the Public for all the confidence and support to the profession. To refresh, the strategy was built on 4 key pillars, namely Qualification, Governance and Capacity, Standards, codes & procedures and Continuous Professional Education initiatives. The tangible results seen after the first strategy period urged the Council to proceed with the next strategy. In 2012, the Council commissioned a strategy refresh session and this was actively led by the Management through a 3 day interactive session, which involved consultations with Council members, past presidents and some key stakeholders. The session was commenced after a stakeholder consultation session through an internal questionnaire. The output of the strategy session, which was done using a balance scorecard approach, was a 4 year strategy for the period The document was put through a stakeholder session in November 2012 and after incorporating the valuable stakeholder comments was approved by Council later in November I would like to thank all who took part in this session/consultations and offering us their valuable insights, experience and views. Thanks to Innolead consulting for facilitating this session (and the previous strategy session ) With a vision to be the leading accountancy professional body with an internationally recognised professional accountancy qualification, the current strategy outlines qualitative and quantitative targets to achieve the vision and mission. The targets are tracked from results, process, people and stakeholders perspective and have 4 key focus areas, namely, Positioning the Qualification and Brand, Increasing the number of members and professional accountants in Botswana, Ensuring that attains sustainability and Improving the Services that offers To requote a famous saying Take time to deliberate, but when the time for action comes, stop thinking and go in. Amidst the current challenging times, has taken bold steps and it is

6 6 imperative to drive further with a unified desire for success. We believe this strategy would assist to achieve the competitive targets that have been set On behalf of Council and myself, I wish the Leadership a great success. Welcome to strategy PULA.

7 7 1. THE STRATEGY DEVELOPMENT PROCESS The methodology followed to develop the strategy is aligned to, in addition to other best practice methodologies, the Balanced Scorecard Premium Execution Process as developed by Kaplan and Norton 1. It aims to create an integrated, closed loop, strategic management process that links strategy formulation and planning with operational execution. Figure 1: Kaplan and Norton Premium Execution Process This strategy document covers phases 1, 2 and 3 and was developed using the Innolead Consulting Strategy Facilitation Workshop (SFW ) process which as described next; 1 The Execution Premium, Robert Kaplan and David Norton, August 2008

8 8 Step 1- Determine Strategic Destination Figure 2: Innolead SFW Process The organisation s management develops the strategy using Internal Analysis, External Analysis, Future Analysis and other applicable tools. Step 2- Develop/Describe the Strategy The organisation plans its strategy using the Strategy Map tool. The Strategy Map articulates the organisation s strategy from explicit cause and effect relationships between the identified strategic objectives. In addition to being an effective strategy planning tool, the strategy map, with the Balanced Scorecard described next, serves as a powerful strategy management and strategy communication tool. Step 3- Translate the Strategy The Strategy Map is used as a framework to translate the strategy into operational terms through the development of a balanced scorecard and the identification of the initiatives that will drive performance. This will be used to measure strategy performance during implementation. Step 4- Align Management to the Strategy The Strategy is cascaded to develop aligned scorecards for all functional and support units in the organisation. This will ensure that all units understand how they contribute to the successful implementation of the strategy. Step 5- Manage Performance The functional and support scorecards are linked to the individual performance management process to develop aligned performance contracts for all employees. This ensures that all employees understand how they are expected to contribute to strategy implementation through their everyday operational activities and involvement in strategic projects. The rest of this document follows the structure of the process described above.

9 2. STRATEGY EXPECTATIONS & ASSUMPTIONS Strategy Expectations: The Strategy aims to fulfil the following expectations: 1. To develop a clear understanding of the organisation s Current Reality or As Is. 2. To paint a clear picture of where the organisation aspires to go and how. 3. To identify what may hinder the organisation achieving its goals and how these barriers will be removed. 4. To answer the question- Who are s customers and stakeholders and what is the organisation s value proposition to them? 5. To provide an understanding of the industry s competitive environment. 6. To address the organisation s long term sustainability. 7. To ensure that has the right organisational structure and human resources to implement the strategy. 8. To address the positioning of the brand. 9. To ensure that will have the right leadership to drive the strategy. 10. To establish the right culture. 2.2 Strategy Assumptions: The Strategy is based on the following assumptions: 1. There are sufficient financial and human resources to execute the strategy. 2. The organisation has the required infrastructure. 3. The Botswana Government and ICAEW will continue to support for the duration of this strategy. 4. There will be continuity in the key team. 5. There will be buy-in and commitment to the strategy from the management and Council. 6. The Botswana economy will continue to experience a shortage of professional accountants for the strategy period and beyond.

10 10 3. THE VISION, MISSION AND CORE VALUE STATEMENTS 3.1 Vision 2016 This vision statement captures s desired future state - what the organisation aspires to be: 3.2 Mission The mission is a brief statement that defines why exists. It describes the fundamental purpose of the organisation, especially what it provides for its clients and key stakeholders. To protect public interest through: * Promoting the accountancy profession * Facilitating quality professional accountancy services through the monitoring and regulation of professional accountants 3.3 Core Values * Developing professional accountants

11 Core Values The core values represent the attitudes, behaviours and characters that will create an enabling environment for the successful implementation of the strategy.

12 12 4. CURRENT REALITY Vision alone is not enough. It is only by starting with an honest and diligent effort to determine the truth of your current situation that the decisions you need to make become self-evident- Jim Collins- Good to Great The Current Reality covers both internal and external factors to determine the AS IS environment. It is the departure point for charting the desired strategic direction for the organisation. In this section the current reality has been analysed through the following 5 categories: Distinctive Competencies Competitive Advantages Internal Structures Major Current Concerns Stakeholder Emerging Requirements 4.1 The Distinctive Competencies of Distinctive competencies are defined as any knowledge, skills, attitudes, capabilities and values that make unique from its competitors. The is uniquely positioned to provide practical work experience (supervised and monitored) through approved training employers in support of its qualification. 4.2 s Competitive Advantages What is the combination of elements in the model which enable it to better satisfy the needs of its customers and stakeholders and achieve its strategic goals in the process? What enables the organization to thrive? The legal backing through the Accountants Act No 12 of 2010 and the Financial Reporting Act No 11 of The Continuous Professional Development (CPD) services that provides to its members The financial support of the Government of Botswana The strategic partnership with ICAEW The provides a more fit for purpose qualification (not a one size fits all as with other qualifications) that its local competitors are not in a position to match. is the only professional body whose members are allowed to conduct audits in the country

13 4.3 Major Current Concerns about The following were identified as the major issues of concern for the achievement of this strategy: does not have sufficient human resources to implement the strategy. Current pass-rates are low. This has been primarily attributed to the compulsory requirement to study and work simultaneously, the calibre of the current student pool as well as other challenges in the delivery of the qualification. There is a high compliance to standards burden as a result of an onerous regulatory framework. This situation is expected to worsen going forward as the trend towards increasing regulation continues. The is currently over-dependent on its strategic partners, other service providers and the Government of Botswana It will not be easy to position the brand to compete against the more established competition. will not be able to effectively compete if it does not attain reciprocity for its qualifications. The organisation has not done enough research to adequately inform its understanding of its client s needs. The does not get enough support from non-practice firms. There is inadequate participation of citizens in the Institute. is negatively affected by the Government s slow turnaround times such as decision making, disbursement of funds, etc. The organisation has not developed an examination question bank to mitigate against unforeseen events Structural Factors that enable or hinder from Operating Effectively Structural factors that enable or hinder to function effectively (processes policies, practices, mental models, assumptions/culture etc.) Structural Factors that Enable The Accountants Act No 12 of 2010 The current Policies and Procedures The Secretariat has been significantly strengthened through the recent addition of new positions to the structure. has a highly experienced Council and the support of practicing members The brand is new and thus presents an opportunity to position it favourably in the market through the right marketing and branding.

14 4.4.2 Structural factors that Hinder 14 The Institute does not have sufficient IT systems to support the effective execution of its business processes A number of the committee structures have overtime, become ineffective resulting in bureaucracy and delayed decision making. Inadequate market intelligence as a result of not conducting market and customer research. The remuneration structure is currently linked to that of the Government and this constrains the organisation s ability to attract and retain key skills. 4.5 Emerging Stakeholder Requirements Emerging Stakeholder requirements are trends, patterns and other key driving forces in s operating environment. A. Key Stakeholder members, student members, and member firms tuition provider, ATEs, and examiners Government of Botswana Public Sector Private Sector Employers ICAEW B. Identified Emerging Stakeholder Needs, Trends & Patterns Increased public interest protection expectations from the wider society Increased legislation and standards (e.g. The establishment of the Botswana Accountancy Oversight Authority (BAOA) The need for clients to absorb continuously increasing fees (fee pressure) Companies continue to appreciate the need for a well-established accountancy function Continued shortage of accountants in the market The emergence of other professions that the youth perceive as more appealing. An increased number of unemployed graduates are excluded from government funding

15 for the qualification due to current government policy. A student cannot be sponsored for more than four years THE STRATEGY MAP The strategy map describes the strategy through the chosen objectives and measures. The measures link together in a chain of cause and effect from the performance drivers in the Resources and People perspective all the way to the Business Results perspective. The cause and effect linkages outline the specific path that will follow to achieve the Strategy and hence clearly articulate the strategy story. It is therefore the how of the strategy that shows the path that will chart from its Current Reality towards the Vision. Strategy implies the movement of an organisaton from its present state to a disirable but uncertain future position. Because the organisation has never been to this future place, the pathway to it consists of a series of linked hypothesis. The strategy map specifies these cause and effect relationships, making them explicit and testable- Kaplan and Norton The Strategy has 4 Key Focus Areas 1. Positioning the Qualification and Brand 2. Increasing the number of members and professional accountants in the Country 3. Ensuring that attains sustainability 4. Improving the Services that offers Figure 3: Strategy Map

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17 17 6. THE CORPORATE SCORECARD 6.1 Results (Impact) Perspective The Results Perspective captures the High Level Targets that translate and quantify the vision. The attainment of the targets below will signal that has achieved its target performance milestones on the roadmap towards its long term vision. The table below shows the specific Results Objectives that will drive this strategy. STRATEGIC OBJECTIVE KPI BASELINE TARGET 2016 Increase in total number of Professional Accountants Increase the number of Qualified Accountants Increase the number of members Increase revenue generation # of Professional Accountants # of Chartered 0 55 Accountants # of Members # of Technicians Revenue (P 000) 6,000 11, Customer & Stakeholder Perspective This strategy appreciates that it is only through the fulfilment of a compelling customer and stakeholder value proposition that will realise its goals in the Results Perspective and hence the Vision. The table below shows the specific customer and stakeholder objectives and initiatives that will drive this strategy. Strategic Objective Increase Stakeholder satisfaction Improve the credibility of the Brand Increase member benefits Increase the coverage of CPD events KPI Baseline Target 2016 % Stakeholder Satisfaction Index Brand Perception Index Number of Member Benefits # of CPD events # of New CPD events 60% (Estimated) 45% (Estimated) 90% 80% Related Objectives & Initiatives Determine the baseline for the Stakeholder Satisfaction Determine the baseline Perception Index Maintain IFAC Membership To develop and approve plan for increased CPD Coverage

18 Increase the Quality of services Categories % Complaints Resolved % Success Rate (AQM) 60% (Estimated) 95% 30% 70% To develop a IT Strategy Internal Process Perspective The Internal Process Perspective identifies the key strategic processes that will need to excel at in order to successfully deliver on its Customer and Stakeholder Value Proposition. The table below shows the specific Internal Process Objectives and Initiatives that will drive this strategy. Strategic Objective KPI Baseline Target 2016 Related Objectives & Initiatives To ensure that 100% of Trainers and ATEs go through the Trainer Improvement Programme annually To implement an Induction Programme for students Develop Professional Accountants % 1st Time Pass Rate NA 25% To implement a bi-annual Student Support Forum for students To monitor compliance of Tuition Providers through the approved framework To develop an Examinations Databank To develop an Tuition Provider Self- Assessment tool Annual Enrolment Addressed by Marketing Strategy Technician Qualification Monitor Compliance Improve Marketing Manage Strategic Relationships Annual Enrolment % CPD Compliance % Compliance to Registration # of Membership Enquiries # of Qualification Enquiries % SLA Compliance N/A % 90% 73% 90% NA 5000 NA 95% To establish and Implement Accounting Technician qualification To implement the disciplinary process To review and develop Marketing Strategy To effectively manage key strategic partnership Technical % of 50% 90% To strive to successfully resolve at least

19 Support Enquiries Successfully Resolved (estimated) 19 90% of all technical enquiries submitted to. 6.4 People and Resources Perspective The organisation s Human Resources are the foundations on which the strategy is built. They are the ones that will improve and run the process and implement the projects and initiatives required by the strategy. It is important that they are supported by ensuring that there are adequate resources and systems in place. The table below shows the specific People and Resource Objectives and Initiatives that will drive this strategy. Strategic Objective Relevant Committees and Experts KPI Baseline Target 2016 % Quorum Formed <50% (estimated) 100% Related Objectives & Initiatives To review all existing committee structures To introduce monetary incentives for Council & Committee members Attract and Retain Key Staff % Key Posts Filled 40% 100% To ensure that the structure is aligned to the new strategy To review the Conditions of Services and align to new strategy Improve Employee Skills Improve Employee Engagement Reduce Dependency on Government % Average Staff Performance % Average Leadership Performance % Staff Engagement % Non- Government Funding 50% (Estimated) 50% (Estimated) 60% (Estimate) 90% 90% 90% 67% 79% To develop HR Strategy To develop annual Training Plan aligned to the HR strategy To implement the Scheme of Service To determine the baseline for employee engagement To ensure that the strategy is communicated to all employees To cascade the Strategy To increase the % of Non Goverment funding from 67% to 79% by 2016

20 20 7. STRATEGY CORE TEAM Role Description Name Strategy Project Sponsor The Project Sponsor holds a senior position within the organisation and ensures sufficient funding and resource availability for the project. In addition, the Project Sponsor is responsible for the motivation and visibility, at a senior level, throughout the organisation. President Strategy Project Coordinator The role is to assist in the day-to-day coordination of activities and implementation of the strategy supporting the Project Managers and the CEO CEO 8. STRATEGY RISK ANALYSIS Risk management is a continuous process as part of good project governance practice. It involves identifying, ranking and coming up with risk response strategies to maximise the probability of success of the strategy project. The risks are classified into three categories being: High, Medium and Low. Mitigation actions are identified for the High and Medium Risks. The initial identified risks are captured in the tables below: High Risks: 1 The possible loss of key staff members critical to the strategy implementation Mitigation: to develop a Succession Plan Responsible: CEO Due Date: Q1 2013

21 21 Medium Risks: 2 Insufficient Budget may delay implementation of key strategy initiatives Mitigation: Monitor Responsible: Finance Due Date: On Going Low Risks: 3 Failure to meet implementation timelines Mitigation: Monitor 4 Loss of key strategic partners Mitigation: Addressed in the strategy 5 Lack of staff buy-in Mitigation: Addressed through cascading and communication 9. Implementation Roadmap - Way Forward In line with the strategy development process and good practice, the next steps in maintaining the momentum of this project and implementing this strategy are as follows; 9.1 Approval of the Strategy The Council is responsible for approving this strategy for implementation. 9.2 Communication of the Strategy It is essential that the communicates the strategy extensively to its employees to ensure awareness, build understanding and gain buy-in and commitment (employees cannot be expected to help implement a strategy that they are not aware of or do not understand). You can never over communicate a vision. When you think you have communicated enough you are probably wrong by a factor of 10, maybe a 100 or even a 1000!-John Kotter- Leading Change

22 Cascading the Strategy Scorecards To realise maximum benefit the executive will need to link the corporate strategy to the functional and support unit strategies. This is achieved through the cascading and translation of the corporate strategy to develop next level scorecards that will describe how the units will contribute to the overall strategy as well as how their performance will be measured. The objective is to achieve alignment both vertically and horizontally throughout the organisation. This will ensure that all employees understand the strategy and are motivated to contribute to its delivery. 9.4 Alignment of Resources and the Budget Figure 4: Strategy BSC cascading process To ensure that there are adequate resources to implement the strategy, will need to ensure that strategy is linked to the annual budgets and develop aligned operational plans. 9.5 Strategy Management The Strategy Management Team consisting of the CEO and Directors is responsible for ensuring that strategic planning is linked with operational planning, implementation, feedback and learning throughout.

23 23 Figure 5: The Office of Strategy Management (OSM) 9.6 Monitoring the Strategy Implementation To monitor the implementation of the strategy will need to put the following processes in place: Operational Review Meetings Monthly meetings are held to examine the performance of the different units and address problems that arise or persist. Strategy Review Meetings Bi Monthly meetings are held to review performance in line with the Strategy Scorecards and feed into the reports to Council. 9.7 Annual Reviewing of the Strategy In addition to the above meetings the strategy Management Team conducts separate annual meetings to test whether the fundamental strategic assumptions remain valid and address whether the strategy is working.

24 Expectations Issues raised to ensure that the output is focused on issues important to Assumptions Those constraints or issues which will form the basis for the scoping of the strategy 10. DEFINITION OF TECHNICAL TERMS Current Reality Vision Mission Core Values Strategy Map Balanced Scorecard Strategic Objectives Factors which refer to the current situation within, either positive or negative. This involves a) Distinctive Competencies, b) Emerging Stakeholder Requirements, c) Major Concerns, and d) Major Structural Factors that either support or hinder the functioning of. Captures what aspires to be. A vision gives shape and direction to the organisation s future, and it helps people set goals and milestones to take the organisation closer to the desired future state. The mission statement defines what exists for. Represent the organisational attributes that will drive towards the Vision and Core Purpose. Values describe how an organisation intends to operate on a day-to-day basis, as it pursues its vision. Values are best expressed in terms of behaviour. Describes the Strategy through the selected strategic objectives and measures. The measures link together in a chain of cause and effect from the performance drivers in the Leadership, People and Strategy Perspective all the way to the Business Results perspective. The cause and effect linkages outline the specific path that will follow to achieve its strategy. The balanced scorecard links the high level measures with targets from the strategy. The selected measures represent a tool for the leadership to use to communicate to members and stakeholders the outcomes and performance drivers by which the organisation will achieve its strategic vision, mission and objectives. Strategic areas that focus on specific and targeted performance in order to achieve the desired results

25 ABBREVIATIONS & ACRONYMS CA CEO CPD CVP HR ICAEW IFAC KPI SLA OSM Botswana Institute of Chartered Accountants Chartered Accountant Chief Executive Officer Continuous Professional Development Customer Value Preposition Human Resources Institute of Chartered Accountants in England and Wales International Federation of Accountants confederation Key Performance Indicator Service Level Agreement Office of Strategy Management

26 CONSULTANT DETAILS The Strategy Review process was facilitated by Innolead Consulting. CONTACT ADDRESS: Innolead Consulting Gaborone International Finance Park Kgale Terrace Plot 140, Unit 2 Tel: Fax: PEOPLE FOCUSED CONSULTING