1 FI to CFO Career Path Presentation to FMI Manitoba Chapter February 12, 2007

Presentation by Emer Mullan to FMI Manitoba Chapter2 Presentation Overview Context and Objective Background Detailed discussion of the FI to CFO Career Path template FI Community recruitment and development Questions?

Presentation by Emer Mullan to FMI Manitoba Chapter3 Context and Objective SFFOs have both individual and collective leadership responsibility for FI community Current process not working SFFOs have decided to take control and manage the FI community CFO model will have ripple effect on entire organization below CFO In general, FIs being promoted too quickly without adequate experience Need to manage expectations of new recruits Need to develop future CFOs Need a roadmap that reflects the collective wisdom of the senior leadership of the FI community

Presentation by Emer Mullan to FMI Manitoba Chapter4 SFFO Council Strategic Objective To facilitate building a sustainable FI functional expertise and capacity to support the next generation of public service management

Presentation by Emer Mullan to FMI Manitoba Chapter5 Background January 2006 – FI Working Group formed with Bill Carrothers as Chair and Emer Mullan was 1 of 15 other members FI Working Group was to develop a career path that, in the opinion of senior leaders within the SFFO community, is the ideal to prepare an FI to become a CFO Capture collective wisdom and wealth of practical experience

Presentation by Emer Mullan to FMI Manitoba Chapter6 Detailed Description of the FI to CFO Career Path The FI to CFO Career Path will: Focus on career leading to CFO, but we recognize there are other specialized FI career paths A roadmap and guide for managers and FIs to understand expectations in career planning

Presentation by Emer Mullan to FMI Manitoba Chapter7 Detailed Description of the FI to CFO Career Path SFFO Council FI to CFO career path is generic, but we recognize significant differences exist between departments Career path populated by work group with achievement requirements at each FI level Lively and engaging discussion by work group members Range of opinions on some issues Objective was to obtain the opinion of the SFFO community

8 Detailed Description of the FI to CFO Career Path Assumptions and Constraints Other occupational groups perform finance function (AS,ES,CR) but our focus on FIs Path relevant for non-FIs aspiring to become CFO Underlying assumption – Four levels for FI occupational group Focus on vision rather than current challenges constraining the development of this path Transition management will be formidable process First we must know where we are going then take stock of where we are and then address the management of the transition

Presentation by Emer Mullan to FMI Manitoba Chapter9 Detailed Description of the FI to CFO Career Path FI to CFO Career Path has 8 attributes: 1. Years in Level 2. Education * 3. Professional Accreditation 4. Bilingual Capacity 5. Experience – functional * 6. Experience – breadth * 7. Management Skills * 8. Competencies * * Denotes attributes with sub-components

Presentation by Emer Mullan to FMI Manitoba Chapter10 Detailed Description of the FI to CFO Career Path Table Structure: Each cell indicates skill required for promotion to the applicable FI level as indicated on the horizontal axis Levels: FI-01 to FI-04, EX Other refers to an EX in a specialist area other than a CFO or Deputy CFO position EX-DCFO refers to an EX in a Deputy CFO Position EX-CFO refers to an EX in a CFO Position

Presentation by Emer Mullan to FMI Manitoba Chapter11 Detailed Description of the FI to CFO Career Path 1. Years in Level Years an FI typically requires at each level to acquire skills required to advance to next level Assumes FIs will not stay in a single function for length of time indicated but will change functions during that period to get range of experience required

Presentation by Emer Mullan to FMI Manitoba Chapter12 Detailed Description of the FI to CFO Career Path 2. Education Formal education required to qualify for FI level indicated a) community college or part of undergraduate degree (FI-01) b) undergraduate degree, preferably in finance or a related field is essential for an FI-01 to become an FI- 02 if they do not have professional accreditation c) post graduate degree will improve capacity for strategic thinking but work group did not consider this essential NA means not applicable as Professional accreditation is essential at the FI-03 level

Presentation by Emer Mullan to FMI Manitoba Chapter13 Detailed Description of the FI to CFO Career Path 3. Professional Accreditation This is defined as a CA, CMA or CGA with the FI being a member in good standing Essential to become an FI-03

Presentation by Emer Mullan to FMI Manitoba Chapter14 Detailed Description of the FI to CFO Career Path 4. Bilingual capacity “As required” indicates Official Language policy drives language requirements Some regions designated unilingual even up to FI-04 but OL policy must be respected Bilingualism at CBC level is essential beyond FI-04

Presentation by Emer Mullan to FMI Manitoba Chapter15 Detailed Description of the FI to CFO Career Path 5. Functional experience Six distinct sub functional areas in Finance To become a CFO, FIs need diversity of experience and knowledge, as CFO must speak with authority in all functional areas Experience in both 5a Financial Planning and External Reporting and 5b Internal Resource Management prior to the EX level Essential for FIs to gain experience in two of four remaining areas prior to EX level (Accounting Operations, Financial Systems, Financial Policy, and Costing)

Presentation by Emer Mullan to FMI Manitoba Chapter16 Detailed Description of the FI to CFO Career Path 6. Experience – Breadth Experiential profile for ADMs well developed – WG built hybrid of this with six sub components (1) Program Delivery (2) Departmental Diversity (3) Central Agency (4) Regional (5) Complexity (6) Managerial

Presentation by Emer Mullan to FMI Manitoba Chapter17 Detailed Description of the FI to CFO Career Path Experience – Breadth (continued) (1) Program Delivery: CFOs expected, at some point in career, to manage a program delivering services Essential for promotion to DCFO & CFO level Experience in an administrative function in support of program delivery not considered adequate

Presentation by Emer Mullan to FMI Manitoba Chapter18 Detailed Description of the FI to CFO Career Path Experience – Breadth (continued) 2. Departmental Diversity CFO requires experience in small, medium and large departments to understand finance issues and gain different perspectives Essential for promotion to FI-04

Presentation by Emer Mullan to FMI Manitoba Chapter19 Detailed Description of the FI to CFO Career Path Experience – Breadth (continued) 3. Central Agency Experience required for FIs to understand inner workings of government and extend personal network Essential for CFO to have 12 to 18 months experience

Presentation by Emer Mullan to FMI Manitoba Chapter20 Detailed Description of the FI to CFO Career Path Experience – Breadth (continued) 4. Regional CFO require experience in a region Experience should include communications with senior staff in other levels of government Essential for promotion to FI-04 level

Presentation by Emer Mullan to FMI Manitoba Chapter21 Detailed Description of the FI to CFO Career Path Experience – Breadth (continued) 5. Complexity CFOs require extensive experience in the full range of financial management activities including operating funds, capital, and grants and contributions Essential for promotion to FI-04 level

Presentation by Emer Mullan to FMI Manitoba Chapter22 Detailed Description of the FI to CFO Career Path Experience – Breadth (continued) 6. Managerial Government’s new definition of manager is a person who has both delegated staffing authority and delegated financial signing authority Essential for promotion to FI-03 level

Presentation by Emer Mullan to FMI Manitoba Chapter23 Detailed Description of the FI to CFO Career Path 7. Skills (a) Oral and written communications (b) Risk Management (c) Negotiation skills/integration function

Presentation by Emer Mullan to FMI Manitoba Chapter24 Detailed Description of the FI to CFO Career Path 7. Skills (continued) (a) Oral and written communications As functional specialists CFOs must communicate effectively at top end of communication scale Required for CFOs to facilitate negotiations and convey information to senior management Intermediate level for FI-01 and FI-02 Strong level for FI-03 and FI-04 Advanced level for EX

Presentation by Emer Mullan to FMI Manitoba Chapter25 Detailed Description of the FI to CFO Career Path 7. Skills (continued) (b) Risk Management Prominent in modern comptrollership As a functional specialist, CFO must advise and speak competently on the integrated risk management policy of the government Ability (especially when faced with uncertainty) to make sound decisions and work effectively Intermediate level for promotion to FI-02 Strong level for promotion to FI-03 Advanced level for promotion to EX

Presentation by Emer Mullan to FMI Manitoba Chapter26 Detailed Description of the FI to CFO Career Path 7. Skills (continued) (c) Negotiation Skills/Integration Function “Honest broker” role of CFO, the capacity to mediate divergent points of view within an organization Integrating non financial results with financial results Intermediate level for promotion to FI-03 Strong level for promotion to FI-04 Advanced level for promotion to EX

Presentation by Emer Mullan to FMI Manitoba Chapter27 Detailed Description of the FI to CFO Career Path 8. Competencies Seven competencies as defined by PSHRMAC for managers (see separate attachment for explanations) (a) Values and ethics (b) Strategic thinking – Analysis (c) Strategic thinking – Ideas (d) Engagement (e) Management excellence – Action (f) Management excellence – People (g) Management excellence - Finance

Presentation by Emer Mullan to FMI Manitoba Chapter28 FI Community recruitment and development 1. FI Population Statistics 2. Financial Officer Recruitment and Development Program (FORD/IARD) 3. FI-03 FI-04 Development Pilot Project 4. FI-03 FI-04 External competition 5. AEXDP 6. EX-03 Recruitment 7. CMA/CIPFA Designation 8. CSPS – 20 courses in financial management and comptrollership