for the Strategic Business Advisor Key Competencies for the Strategic Business Advisor FMI Vancouver Chapter May 6, 2014 Prepared by: Office of the Comptroller General Treasury Board of Canada Secretariat Presented by: Sylvie Séguin, CGA Acting Senior Director Financial Management Community Development Office of the Comptroller General

Presentation Overview Part I: Knowing the Expectations Competencies The ideal strategic business advisor Part II: Investing in your Career Learning and development tools to support you in managing your career Talent management for the FM community

What Are “Competencies”? Defined as… The characteristics of an individual that underlie performance or behaviour at work.* They are: Measurable Observable “Can do” + “Will do” = Competencies (Skills, knowledge) (Behaviour) *Source: Public Service Commission of Canada 3

Competency Overview The Competency Iceberg The iceberg is a great visual to depict competencies. At the surface we can see the individual’s skills and knowledge – you are the go to person for financial advice to clients or policy interpretation or for systems support. This, although quite significant is only a partial glimpse of what is underneath. It is the “what” you do. What is below the surface is unique to an individual – his/her values, attributes, personality and preferences which are translated into behaviors or the “how” an individual does what he/she does. Competencies allow us to better get to know the individual. 4 4

Who uses competencies? Competencies are used by: Professional accounting bodies (CA, CGA, CMA, CPA) Office of the Chief Human Resources Officer (Key Leadership Competencies) Educational institutions

Competencies are used as part of sound Human Resources practices Statements of Merit Candidate Assessment Tools Job Competency Profiles Competencies are used in a variety of HR activities but most particularly in recruitment and staffing; learning and development and performance evaluation. We will look at each element individually throughout the training session. Professional Dev Program Performance Objectives Learning Curriculum Performance Assessment Learning Plans

Financial Officer Competency Dictionary The key competencies (behavioral and technical) to successfully fulfill requirements of a job/profession There is a progression in proficiency (logical and cumulative) Indicators describe behaviors that an employee demonstrates at that proficiency level List includes key behaviors for each competency, it is not exhaustive List has to be manageable and accessible Each indicator is measurable and uses action verbs Vocabulary must be relevant to users but also be in plain language Competencies provide commonality and structure of process. We call a competency dictionary, the listing of all key competencies used by an organization. For the purposes of this exercise, the competency dictionary includes both the behavioral and functional profiles for the FI classification group. Within a competency profile there is progression in proficiency (scale). Behaviours at lower levels are implicit at higher levels. The indicators include key behaviours for each competency that best represents the competency definition and proficiency levels sought. 7

Key aspects of each competency Competency title and short definition Key indicators associated with each proficiency level Level 1 Underlying Notion Level 2 Underlying Notion Level 3 Level 4 Indicators Relate to basic behaviours Active behaviours reflecting an action, a concern or an attitude Proactive behaviours that are often initiated based on knowledge or past experience Comprehensive behaviours that relate to actions that have an impact beyond one’s immediate team and more on the larger organization Competencies introduce the concept of common language. The definition of the competency is important as it provides common understanding and meaning of the competency (i.e. communication will mean the same thing to everyone regardless of whether this competency is being used for staffing, learning or evaluation). Criteria (indicators) are used to define proficiency levels within a competency. These in turn translate expectations. For example, under the first level of proficiency, the expectation is that the individual is more centered on themselves and their own work. The level of influence is limited and responsibilities and accountabilities are limited in scope. As the proficiency level increased, the influence over others increases as does the scope of responsibilities and accountabilities. The list of criteria that is used to demonstrate the proficiency level is not exhaustive. There may be additional criteria that are not represented in the competency profile but that may be just as useful in demonstrating proficiency. Determining proficiency is not an exercise in ticking all the boxes. It is more of ensuring that there is sufficient evidence provided to determine that the level of proficiency required has been attained while respecting the definition of the competency. A rule of thumb is that at least 50% or more of the most common criteria are strongly demonstrated. Proficiency levels equate to corresponding FI level 8 8

FI Competency Dictionary Oral and Written Communications: Listening to others and communicating articulately through speech or in writing FI-01 FI-02 FI-03 FI-04 Listens and questions effectively Shares information willingly Responds constructively to diverse views Writes clearly and concisely, using appropriate vocabulary and grammar and message is easily understood Maintains timely communications honestly and respectfully Communication flow is logical and presents a reasonable sequence of thoughts Presents ideas clearly and persuasively Communicates in a manner that generates enthusiasm and commitment Listens to other points of view and strives to give a balanced picture Maintains open and continuous communication with others Describes complex financial/technical issues clearly for both non-financial and financial audiences Builds a consensus and successfully addresses diverse views Outlines policy requirements and provides guidance within policy Defends and/or secures support for ideas or initiatives through such methods as briefing notes, position papers, and recommendations to senior management Delivers confident, consistent, and coherent messages in presentation Is sensitive to the timing of communication relative to other factors in the environment Uses varied communication systems, methodologies and strategies to promote dialogue and deliver difficult messages Bring a copy of the competency dictionary and illustrate the two profiles. What does competencies mean for you as a financial officer? Common language and understanding Identification of sought after behaviors (as identified in criteria) Standardization – consistency (assess using a common structure, makes sense, takes the guess work out) 9

FI Competency Dictionary Functional competencies Financial Accounting and Reporting Financial Planning and Resource Management Financial Policies Financial Systems The FI functional competencies are aligned with the four major financial management functions within government (accounting and reporting, planning and resource management, policy and systems). Included, where appropriate, are functional activities such as internal control, revenue management, and costing. Both the behavioural and functional profiles have been aligned to the competency maps of the Canadian accounting bodies. 10

FI Competency Dictionary Behavioral competencies Oral and Written Communications Risk Management Negotiation/Persuading Values and Ethics Strategic Thinking - Analysis Strategic Thinking - Ideas Engagement Management Excellence - Action Management Excellence - People Management Excellence - Finance Comprised of 10 competencies, 7 of which are the Key Leadership competencies developed by OCHRO. 11

Successful Performers Poor Performer Successful Performer Far Exceeds Expectations Successful performers: Display professional behaviour in a consistent manner; Fulfill job requirements by being productive and effective at their work level Perform at or above the job level (quality, timeliness and responsiveness) as a matter of course Use particular approaches and demonstrate specific behaviours that facilitate meeting of objectives In competencies, we look for individuals to be proficient at a given level (as required by the position). A successful performer will display the behaviour consistently, not just once in a while. A successful performer is effective at his/her work level (as determined by the requirements of the position). A successful performer will perform at or above the requirements of the position naturally, without great effort. They do this by adopting particular approaches or specific behaviours that allow them to meet their work objectives (this is the “how” of competencies). 12 12

Hiring the Right People Competency-based staffing and selection methods: the better the “fit” between the requirements of a job and the competencies of an incumbent, the higher job performance and job satisfaction will be Competency-based staffing tools and methods are designed to elicit details regarding candidates’ critical experiences, based on the premise that past performance is a good predictor of future performance on the job The Statement of Merit Criteria lists the qualifications used to assess candidates when staffing a particular position. Competencies are an integral part of the essential qualifications identified in the SOMC and should reflect the most critical competencies for that particular role or job. A behavioral interview is one of the best methods of assessing competencies. It allows an interviewer to explore, in depth, situations in a candidate’s past when relevant behaviors have (or have not) been demonstrated. This type of interview is based on the assumption that the way a person has behaved (performed) in the past is a fairly accurate predictor of how he/she will behave in the future. (i.e. Describe a time when you were asked to come up with a new approach to an old problem?) The same behavioral interview questions can be used to validate a candidate’s references. When requesting references from candidates, managers should check that these can confirm some of the responses provided in the interview. 13

Learning and Development Competencies should be used as a basis for the development of learning plans, and can help managers focus on the learning activities that best correspond to the development needs of their employees Key questions for managers: Is the individual performing to his/her best ability? What may be keeping him/her back? Is the individual ready for a promotion? Are there other elements that should be considered? Key questions for employees: Am I performing to my best ability? What is keeping me back? What other work would I like to perform? Am I ready for a promotion? What else do I need to consider? In learning and development, a competency-based approach is used by managers to identify employee competencies to be developed. When applied systematically across the wider FM community, this approach can help maximize the use of resources in the development of learning programs that target common needs.   From an employee perspective, competencies can be used to identify which skills and behaviors need to be developed in order to improve their performance in the current position and what areas they need to focus on for growth. 14

Performance Assessment Use of competencies in the performance management cycle ensures that individuals are evaluated on criteria that are relevant to the job and they are aware of these criteria It facilitates communication with management and provides benchmarks against which performance can be evaluated Provides transparency and a greater sense of empowerment Provides a common understanding of the expectations of the work and enables the individual to self-assess against identified benchmarks.

The Ideal Strategic Business Advisor: Key Competencies

The Ideal Strategic Business Advisor Behaviours Behavioural Competencies Tells the story behind the numbers Asks the right questions Is business-oriented Is strategic advice–oriented Understands the big picture Is an agent of change Is client-focused Understands risk tolerance and takes into consideration risk appetite Is trustworthy Is flexible Oral and Written Communications Strategic Thinking – Analysis Strategic Thinking – Ideas CFO Role – Catalyst & Strategist Slide shows the behavioural competencies and how you would demonstrate them as a strategic business advisor Remember to ask the right questions to provide the right recommendations Risk tolerance – this will depend on your client group and senior management Trustworthy: if you are not seen as trustworthy, you will be excluded Your engagement and communication competencies will be needed to work with the partners and key stakeholders you are advising - management will be making business decisions based on your advice By demonstrating the above behaviours, you will be demonstrating your leadership abilities. Engagement Risk Management “Leadership”

The Ideal Strategic Business Advisor Behaviours Functional Competencies Balances strategic advice Monitors projects Alignment of roles Ensures policies are respected Supports and facilitates decision making Delivers Implements Planning and Resource Management Accounting and Reporting Planning and Resource Management, Financial Policy and Financial Systems CFO Roles – Steward & operator

Barriers Perceptions of finance function: Seen as: focused on itself rule-bound the centre for control process-oriented vs. results-oriented adding cost to running programs (i.e., overhead) Not only do we have to be seen as trustworthy, as a function, we have some barriers to overcome when working with our clients.

Part II: Investing in your Career Learning and development tools to support you in managing your career Talent management for the FM community

Take Charge of Your Career Familiarize yourself with the FI competencies and the tools and resources in the Employee’s Guide Look at competencies at FI-02, FI-03 and FI-04 levels to determine where you need to grow Assess your skills and experience using the “FI to CFO Career Path” Develop an action plan

Learning and Development Tools FI to CFO Career Path Welcome to Pages Learning Maps FI Core Curriculum Manager’s Guide to Financial Officer Competency-Based Management Self-Assessment in Talent Management for the Finance Community – Employee Guide to Competency-Based Management Available at: www.gcpedia.gc.ca/wiki/Financial_management_community

FI to CFO Career Path The guide was prepared by the DCFO Council and approved by the Comptroller General and the financial management community. Keep in mind that it is a guide, and not a policy.

FI to CFO Career Path (cont.) Under functional experience, items a – d show the strategist and catalyst roles of the CFO Items e – i are focused on the steward and operator role Under breadth of experience, you can see the value of gaining a diverse is experience.

FI to CFO Career Path (cont.)

Welcome to Pages

Welcome to Pages Available for each FI level in the career path Provides guidance to FIs on how to best position themselves to meet the requirements of their position and for growth within the FM community Competencies to develop and master by level Recommended learning opportunities by level Development and learning required to reach the next level

Learning Maps Learning map for each FI level Linked to core curriculum Five segments: Required training Learning activities needed to do the job Learning activities to prepare for a future position Learning activities to develop leadership skills Other suggested training Provides learning to further develop competencies and aid in career progression

FI Core Curriculum Developed by the OCG in collaboration with the CSPS. The curriculum has four streams: Basic stream: foundational level courses (F-111, F-112, F-113) Functional stream: core knowledge at the operational and analytical level – the “how to” of the curriculum Strategic stream: designed to develop participants critical thinking skills, includes strategic series Development stream: complementary training recommended for all FIs

Learning Pyramid 10% 20% Feedback and Coaching 70% Experience Formal Training 20% Feedback and Coaching 70% Experience (stretch assignments, shadowing, etc.) We tend to think of learning as formal classroom learning, but that is only responsible for 10% of our learning. It’s also costly, time-consuming and dependent on your department’s learning budget and availability of suitable courses. You can supplement your learning with on-line courses, and your own program of study and independent reading Surveys and research have found that most of our workplace learning actually takes place while we are on the job. In other words, learning by doing. By thinking beyond formal learning, we can free ourselves to learn in more creative, spontaneous ways. Learning from experience can take many forms – from simple things such as practice or trial and error to more structured experiences such as taking on a new project to seeking a stretch assignment to job shadowing. And if you can then get feedback or coaching as you take on the new challenge, you will learn even more Feedback can come from different sources – you may want to find a coach or a mentor, but you can also get valuable feedback from a manager, a colleague or one of your peers. Consider joining a network where you’ll have more access to potential coaches, mentors and informal feedback

Finding opportunities Volunteer your time and learn new skills: FMI Regional councils Committees Universities Non-profit organizations Boards of directors If you can’t find stretch assignments in your current job, you may want to think about other ways you can grow within your current role As an FI you have valuable skills – many ways to gain experience, make connections and obtain your PD hours. Don’t limit yourself to formal learning.

Talent Management for the FM Community

Current Initiatives in Talent Management Rejuvenated FORD Program FM Community: Learning and Professional Development Needs CFO Talent Management Institute on Governance Next Generation On-line pilot with academia

Rejuvenated FORD Program

FORD Campaigns Past, Present and Future Current FORD Program Hybrid FORD Program (Fall 2013 Campaign) Rejuvenated FORD Program (Fall 2014 Campaign) Eligibility Bachelor degree with 6 accounting courses Recent bachelor’s degree with 6 intermediate and/or advanced courses in accounting or auditing; OR Bachelor’s degree in any field with a recent accounting designation Recent bachelor’s degree and acceptance into a professional accounting designation program (CPA/CGA) Length of program Varies by department (1 to 2 years) 2 years standard across all departments Experience verification model Minimum 30 months time in seat, as required by professional designation program Program completion criteria 2 rotations in one year 2 rotations in two years Minimum 2 rotations during 30 months Completion of F111, F112, F113 Successful completion of professional education program (includes final exams) Departmental recommendation for promotion Promotional aspect Varies by department OCG to create an FI-02 pre-qualified pool of FORD candidates for those who meet the program completion criteria Graduation 12 months 24 months; and Successful performance (criteria not yet finalized) TBD, but likely to be: 30 months time in seat; or At some point in time, successful completion of CPA academic requirements (pre– or post–final exam)

FORD Hybrid Campaign Fall 2013 Major changes from previous campaigns: 24 months and 2 rotations (vs. one year) OCG to provide 3 to 4 one-day training sessions MOU to reflect 24 months Anticipated opening of inventory in Spring 2014: Many bilingual candidates Inventory numbers based on expected departmental requirements Focus on candidates who pursued a specialization in accounting Note: Enquire about regional needs for FI-01 recruits. Speak to Regional Council.

FM Community: Learning and Professional Development Needs Based on responses to 2012 FM community fact-based questionnaire, the following are the learning and professional development needs identified: Oral and Written Communications Engagement Strategic Thinking – Analysis and Ideas Management Excellence – People

CFO Talent Management Objectives: Ensure an adequate future supply of qualified individuals in the community who can fulfill the requirements of the CFO position Develop a robust system of succession planning for critical positions within the community Identify competency gaps within the CFO community and its feeder groups and ensure plans are in place to address them

CFO Talent Management Developmental Initiatives In collaboration with the FM community, the OCG developed the following training products: On-line Public Sector Financial Management Leadership Development Program, September 2013 Comptrollership Leadership Bootcamp – Director (EX-01) level, September 2013 Next Gen CFO Course – aimed at future ADM level CFOs - EX-03 level participants, November 2013 Online Public Sector Financial Management Leadership Development Program developed with a post-secondary institution focussed on leadership & soft skill development 2 year online program resulting in attainment of a graduate level financial management masters certificate Comptrollership Leadership Bootcamp developed with the Institute of Governance focussed on leadership role of financial management executive within the Government of Canada Next Gen CFO Course developed with an international public accounting firm focussed on the CFO ADM level role and development of a personal learning plan to develop the “gap” competencies Program runs successfully in UK by HM Treasury and is being adapted for the Government of Canada.

CFO Talent Management: Next Steps All pilots successfully completed Results of recent on-line program to develop leadership and managerial competencies showed that FI-03, FI-04, and EX-01 have different learning needs Currently considering a tiered approach to leadership and management development for transitional groups at FI-03, FI-04, and EX-01 levels  

Other Resources www.myschool-monecole.gc.ca Financial Management Institute of Canada (FMI) (www.fmi.ca) CICA (www.cica.ca) CPA (www.cpacanada.ca) CMA (www.cma-canada.org) CGA (www.cga-canada.org) http://www.gcpedia.gc.ca/wiki/Financial_management_community 42

Contact us: Sylvie Séguin, CGA Acting Director Financial Management Community Development sylvie.seguin@tbs-sct.gc.ca 613-946-6242 Julie Tremblay, CPA, CA Special Advisor – Learning and Development julie.tremblay@tbs-sct.gc.ca 613-952-3350 Monique Main, CA Manager, FORD/IARD and CAST Programs monique.main@tbs-sct.gc.ca 613-946-7635