The Chartered Accountant - The Leader

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1 The Chartered Accountant - The Leader CA. Rajkumar S Adukia B.Com(Hons.) FCA, ACS,MBA, AICWA, LLB,Dip In IFRS(UK) rajkumarfca@gmail.com / To receive regular updates kindly send test to rajkumarfca-subscribe@yahoogropups.com

2 Changing Face of Business -Role of Chartered Accountants in Industry

3 Mega Trends/Disruptions Globalisation Changes in profile of business and business practices Technology Emergence of new services and extinction of traditional services User activism Regulatory activism Investor activism Social and other networks Standards and laws requiring compliance more complex

4 The world of today is a very different place in terms of creativity, self-expression, social belonging and sharing Collaboration Self-Promotion Search Our tools for locating documents are confusing and it is unclear who to turn to if I have questions. Mobility Social Networking

5 What should Chartered Accountants in Industry do? Be technology proficient Technical up-to-date Nimble Have strong analytical skills Jack of all and master of none Transition from a book keeper to a business accountant Be control conscious Develop strategic thinking Develop general management skills Focus on communication skills Be mobile

6 What should Chartered Accountants in Industry do? Be relevant Maintain the highest level of integrity

7 There are three kinds of people in this world: those who make things happen, those who watch things happen, and those who wondered what happened. Mary Kay Ash

8 What should Chartered Accountants in Industry do? Be a LEADER Make Things Happen

9 Definition of Leadership Leadership is a process whereby a person influences others to achieve a goal and inspires through motivation and direction.

10 What are the key functions of a Leader?

11 Function Planning Initiating Controlling Supporting Informing Evaluating Elements Seeking All available information Defining Group task, purpose/ goal Making a Workable Plan Briefing group about the plan and goals Explaining the importance of the plan and goals Allocating tasks to group members and setting group standards Maintaining group standards Maintaining discipline Ensuring actions are executed towards the goals Encouraging individuals, Creating team spirit Expressing acceptance of persons and their contribution Creating a Team Giving new information to the group, keeping them in the picture Receiving information from group Reconciling disagreements or getting others to explore Checking feasibility of an idea Evaluating group performance Helping the group to evaluate its own performance against standard

12 Motivation is the result of performing most of these functions well!!

13 Chartered Accountants as Business Leaders Today Chartered Accountants are a partner in Nation Building! Industry today recognises Chartered Accountants as leaders. To motivate more and more Chartered Accountants to come forward as leaders in Industry, the Institutions across various countries have created forums and award programs. Details of a few can be seen by going to the links below: (India) effectiveness-and-leadership/products/chartered-accountants- Leadership-Academy (Australia) (Canada)

14 Strengths of CAs Analytical skills number crunching Technical knowledge though restricted to laws/regulations Rigorous work ethic can work 24/7 Meeting deadlines thanks to the rigorous ICAI curriculum Ability to handle work pressure but may not be peer pressure Quick grasping

15 Goal Driven Leadership Aligning the goals of individuals... with the goals of the job.. with the goals of the department.. with the goals of the division.. with the goals of the corporation.

16 Virtues of Leadership Humility Seeking the Best for Others Expecting Excellence Integrity An Indomitable Spirit Impatience with the Status Quo

17 Different Leadership Approaches Directing Consultative Delegating Participative

18 Significant Leadership Styles Autocratic Style Democratic Style Laissez-Faire or Delegative Style

19 Autocratic Style Retains power and decision-making Does not consult staff, nor allowed to give any input Staff expected to obey orders without receiving any explanations Structured set of rewards and punishments

20 Advantages/ When to use Autocratic Style When new, untrained staff do not know which tasks to perform or which procedures to follow. Effective supervision provided only through detailed orders and instructions

21 Disadvantages/ When not to use Autocratic Style Staff become tense, fearful, or resentful Staff expect their opinions to be heard Staff depend on their manager to make all their decisions Low staff morale, high turnover and absenteeism

22 Significant Leadership Styles Autocratic Style Democratic Style Laissez-Faire or Delegative Style

23 Democratic Style Encourages staff to be a part of the decision making Keeps staff informed about everything that affects their work and shares decision making and problem solving responsibilities A coach who has the final say, but gathers information from staff before making a decision Staff like the trust they receive and respond with cooperation, team spirit, and high morale

24 Advantages/ When to use Democratic Style Staff s contribution to decision-making and problemsolving is important. Provides opportunities to develop a high sense of personal growth and job satisfaction. A large or complex problem that requires lots of idea inputs/ brain-storming to solve Encourage team building and participation

25 Disadvantages/ When not to use Democratic Style Not enough time to get everyone s input Easier and more cost-effective for the manager to make the decision Can t afford mistakes Manager feels threatened by this type of leadership Staff safety is a critical concern

26 Significant Leadership Styles Autocratic Style Democratic Style Laissez-Faire or Delegative Style

27 Laissez-Faire or Delegative Style Let it be the leadership responsibilities are shared by all Can be very useful in businesses where creative ideas are important Can be highly motivational, as people have control over their working life Can make coordination and decision making time-consuming and lacking in overall direction Relies on good team work and good interpersonal relations

28 Advantages/ When to use Laissez-Faire/ Delegative Style Staff highly skilled, experienced, and educated Staff have pride in their work and the drive to do it successfully on their own. Outside experts, such as staff specialists or consultants used

29 Disadvantages/ When not to use Laissez-Faire/ Delegative style When Staff feels insecure at the unavailability of a manager The manager cannot provide regular feedback to staff on how well they are doing. Managers unable to thank staff for their good work. The manager doesn t understand his or her responsibilities and hoping the staff cover for him or her

30 Which leadership style is best? Situational Leadership Style Adapts the style to aid the development of others in the organization. The motive is not self interest but the growth and effectiveness of the organization It is a model and not a theory

31 Supportive Behavior Situational Leadership Grid High Supporting Praise, Listen and facilitate For people who have High Competence Variable commitment S3 Coaching Direct and Support For people who have Some competence Some commitment S2 Delegating Directing Low Turning your responsibility for day-to-day decision making For people who have High Competence High Commitment S4 Structure, control and supervise For people who have Low competence High commitment Directive Behavior S1 High Blanchard and Hersey characterized leadership styles in terms of the amount of direction and of support that the leader gives to his or her followers, and so created this simple grid

32 Good Leadership is all about. Establishing a Quality Culture GETTING THEM TO LISTEN And eventually GETTING THEM TO CHANGE

33 BECOMING AN EFFECTIVE LEADER 33

34 Becoming A Leader Leaders are ordinary people who accept or are placed under extraordinary circumstances that bring forth their latent potential, producing a character that inspires the confidence and trust of others Myles Munroe Becoming A Leader, Everyone Can Do It

35 Challenges Of Being A Leader REJECTION CRITICISM LONELINESS PRESSURE & PERPLEXITY MENTAL AND PHYSICAL FATIGUE PRICE PAID BY THOSE CLOSEST TO YOU

36 Effective Leaders are Empowered Individuals PERSONALITY CHARACTERISTICS Dedication Persistence Commitment Self-Motivation Self-Responsibility

37 Leaders Must Empower Others By empowering others, leaders tap unlimited resources available to them by allowing others to: Use initiative Be resourceful Better accomplish the mission Use teamwork Take charge Use common sense and judgment

38 Leaders Must Empower Others Leadership has great flexibility in varying the level of empowerment based on the individual s capabilities and seriousness of the consequences of the individual s action/inaction. When assessing capabilities, consider the following: Willingness to accept empowerment Training Judgment Experience

39 Importance of Communication in Leadership Communication is the exchange of information and UNDERSTANDING. how to tell other what you are thinking how to get past filtering Communication downward cannot work because it focuses on what we want to say Communication: in the recipients language and perception from the recipients point of view with feedback mechanisms agree on the meaning of the code

40 Problems that an organization may face when they have ineffective leaders? Members don t feel valued Creates negative attitudes Not developing all employees Higher absenteeism Low productivity/poor quality Miscommunication

41 Managers vs. Leaders Managers Focus on things Do things right Plan Organize Direct Control Follows the rules Leaders Focus on people Do the right things Inspire Influence Motivate Build Shape entities

42 Benefits of Effective Leadership Members at all levels feel needed Promotes positive attitudes Utilize all resources Reduce complaints Members share ideas Less confusion Shared goals Fosters TEAM building

43 Change Leadership The most challenging aspect of business is leading and managing change The business environment is subject to fastpaced economic and social change Modern business must adapt and be flexible to survive Problems in leading change stem mainly from human resource management

44 Transformational Leadership requires Charisma (idealized influence) Inspirational motivation Intellectual stimulation Individualized consideration

45 Becoming a Leader Who Asks Questions Be more aware of the questions you ask Ask yourself more questions silently Before asking someone else a question, ask yourself the same question What do I want my question to accomplish? Frame so you encourage collaborative thinking Encourage your staff to ask you questions.

46 Types of employers for CAs Banking and financial services Manufacturing (brick and mortar businesses) Multi-nationals (MNCs) Consulting Services Retail

47 Competition for CAs Engineers MBAs Engineer + MBA CPA / CFA / CIA / CISA Software professionals

48 Developing Leaders Challenge the process Set the example, inspire by appealing to common values Be considerate and encourage your followers Provide structure; enable your followers to succeed Have an inspiring vision, communicate it with passion

49 New Leaders Take Note. General Advice Take advantage of the transition period Get advice and counsel Show empathy to predecessor Learn leadership Challenges Need knowledge quickly Establish new relationships Expectations Personal equilibrium

50 New Leader Traps Not learning quickly Isolation Know-it-all Keeping existing team Taking on too much Captured by wrong people Successor syndrome

51 Remember Today s Chartered Accountants are trained and equipped to be at the helm of wherever they are!

52 How Far Can You Go?

53 Questions

54 Thank you