Personal Effectiveness and Communication - Essay Example

Personal Effectiveness Individual Report There are so many areas that everybody will identify important in order to succeed not only in career butalso in personal life. Among those are cognitive and personal skills (communication, information technology, problem-solving, personal skills, working with others and improving own learning and performance) which are essential to occupational proficiency in all sectors and at all level. "Transferable" implies that the skills are transferable to different situations, for example, in my case I would like to work on the skills that I will be able to use not only during my last years of university, but also at the workplace. One of the most difficult prospects is identifying where your strengths lie and in which new role you would be good at. There are hundreds of skills that you developed over time, but it is even more challenging to combine which tasks you are good at and which ones you enjoy the most. The reconciliation of both will determine your strengths. I am trying to identify my weaknesses and strengths all the time in order to make the most of my career opportunities. Besides, I realize that it is easier to focus and develop your strengths than trying to eliminate weaknesses. Every time I try to engage into a new activity, I am always naturally worried that I won't have the necessary skills for a new activity or responsibility. However, after I sat down and gave a thought about the type of role that I would like to fulfill, it became easier for me to look at the skills that I already have in abundance that will be suitable for that or another activity, responsibility. I have made a whole list of the things that I am excellent or good at, then a list of things that I am not good at or do not enjoy doing them. The list of strengths and skills helps me to identify what else I can work on and I have also developed an excel matrix and time schedule of things that I would like to work on and monitor my performance. I will engage my best friend in order to have a subjective opinion and some hints on how to direct my progress. Here are a few examples of transferable skills that I have identified to be very important and below each skill there is a scale with criteria's based on which I will judge my performance. I have developed a matrix in Excel, which will help me to structure my developments over time and keep on track my progress. COMMUNICATION Communication is an essential part of any activity, whether it involves working with other colleagues or with customers or clients, communicating with professors, negotiating with peers, etc. It is also one of the most easily identifiable transferable skills. After I have looked on how I communicate within my existing role, it's easy to see that I need to work on a more professional style of communication that will suit work environment better. WORKING IN A TEAM Teamwork is another easily identifiable skill. Being able to work with others is an asset in any role. During the last year I have been working 5 times in a team. In two case I have been leading the team of 6 people during the business game and during one we won the first prize, which is an example of a successful team player. However, my team role tends to have a slight hint of dictatorship, which I will work on and will try to develop more collaborative approach to team negotiation ship. In my opinion, being able to choose the role within a team is an excellent asset, as in a now day's society almost in every job I will have to work in a team and it is essential to be not only leading but also submissive. Level 4 Level 3 Level 2 Level 1 - Identifies strengths & development areas for members improvement - Provides development and training opportunities to others to improve performance - Gives subordinates advice and coaching to improve their technical skills - Gives honest and constructive feedback to team members to aid their development - Designs and delivers skills training in a variety of areas - Provides constructive feedback from a range of sources - Provides one-on-one coaching to others to help them modify ineffective behavior - Develops and manages the carrying out of development plans inside the team - Creates opportunities for new development experiences - Identifies challenging processes to develop individuals at all levels - Ensures successful transfer of skills inside the team - Creates and maintains enthusiasm, furnishing performance feedback - Supervises development plan progress - Promotes a learning within a team - Designs approaches for skills training and development - Maintains and develops the team's intellectual capital - Identifies opportunities for professional growth - Stimulates steady performance improvement and works to achieve development plans INTERPERSONAL SKILLS: INFLUENCE, NEGOTIATION AND IMPACT The way you interact with others makes the place where you are either a fantastic or not-so-nice place to be. If you are in charge of training a new person at work, for example, even if it is just showing them the basics, it will be the interpersonal skills that you have that will be of use. Next week Gill looks at how to go about making an instant career change. Level 4 Level 3 Level 2 Level 1 - Uses logical argument - Backs up argument with facts and data - Presents the pro's and con's of different options - Summarizes the key points of own argument - Confident in putting own position across - Willing to confront issues to get them resolved - Stresses the importance or urgency of requests - Uses third parties to resolve conflict when appropriate - Gives information and presents key arguments covering all aspects of the problem to be dealt with - Presents own position using persuasive style & language - Stresses the benefits of the approach being proposed - Gains buy-in by getting others to see advantages - Negotiates internally and externally - Willing to compromise to achieve outcomes and overcome obstacles - Seeks closure - Stimulates others' participation and involvement in the carrying out of duties, emphasizing costs and benefits and/or advantages and disadvantages - Actively seeks out senior management to influence - Involves all relevant people to gain their agreement - Sells the wider benefits of the preferred approach - Handles objections skillfully by acknowledging issues and putting forward alternatives - Persuades through actions that influence the choices and behaviors of others. - Influences and convinces others with own enthusiasm and personal style - Sees situation as a partnership and aims for a win-win outcome - Negotiates lasting agreements among parties with potentially conflicting priorities, values and cultural contexts - Obtains the agreement and trust of others, identifying their problems and finding appropriate solutions ANALYTICAL SKILLS It is of paramount importance to have an analytical approach to whatever you do in your life. Being able to identify problems to be addressed to Break problems into their component parts and analyze them logically to reach conclusions. Being able to do so, it is vital to gather all necessary information related to the problem and go beyond the questions that are routine or required. I believe that after I work on this skill I will be able to identify critical elements, inter-relationships and trends within the information and as a result generates a range of alternative solutions to resolve the situation. Level 4 Level 3 Level 2 Level 1 - Seeks to gather facts (internal and external) - Pays attention to detail - Considers all the information - Checks information thoroughly for accuracy - Reflects on information gained & summarises - Applies objective reasoning to problems - Identifies problems to be addressed - Uses research to gain information - Collects sufficient data to reach a decision without getting bogged down in detail - Breaks problems into logical chunks; cross checks across the problem - Uses funneling process to arrive at the root of the problem - Spots gaps in data - Anticipates need for information to resolve issue - Identifies and gathers relevant information from a range of different sources and perspectives - Considers people and emotional issues in analysis - Recognizes themes and trends within data - Identifies key issues - Develops hypotheses and tests them out - Sees relationships in seemly unrelated data - Creates models and processes to solve complex problems - Understands medium and long term impact of problems/solutions on people and organizational processes - Shows lateral thinking and creative vision in addressing complex problems - Identifies critical elements of complex problems and provides targeted and logical solutions. - Interprets the data and salient elements for the best solution to the problem. - Able to apply a general principle and common standards to a specific situation Business Report Nowadays, every Chief Financial Officer (CFO) stands at the center of a complex combination of internal and external relationships, all of which must be carefully maintained and integrated. As a result, the CFO must balance the companies' internal financial operations, processes and transactions with external relationship expectations. In this business report to the chief executives I would like to shed some light on the changing role of the CFO within the organization, as well as discuss the survey that was conducted by Deloitte and present additional information from other studies. I believe this study will trigger interest and will question and current role of our FO and areas for inmprovement within finance department. I have collected information on different functions within finance department, but due to the time limit I would like to present some new developments within Account Payable Department. Deloitte conducted a survey of Chief Financial Officers to develop a benchmark study on finance function and gain a perspective on current priorities and challenges CFOs are confronted with. The main findings of this survey include the following points. The survey engaged CFOs of international companies. Organizations in a study ranged in size from less than 100 mio revenue (21% of the sample) to more than 500 mio (46% of the sample Despite this fundamental shift in CFO's focus from transaction processing to business decision making, surveyed CFOs still spend around 50% of their time on financial and accounting activities. The importance of these day to day activities is also reflected in his priorities for the coming year. About 28% of the companies consider the optimization of the Finance organization as a top priority for the next year. The CFO is constantly looking to find the right balance between the costs of his department and attracting and keeping the right people. High on the agenda for the coming year remain priorities such as Corporate Governance and Risk management. The companies spend on average about 1,3% of their revenue on the finance department. Two elements seem to be the driver of the finance department cost: Economies of scale: bigger companies clearly seem to enjoy economies of scale effect. Their finance cost as a percentage of revenue is way below the average. Listed companies: as listed companies need to comply with more stringent rules, they need to spend more on their finance department. However, they also enjoy economies of scale effect. However, companies are looking for different ways to improve their cost effectiveness of the finance function. Companies engage in reducing costs by implementing shared services or by standardizing certain activities across the company. An increasing number of companies have taken some measures with respect to treasury, accounts payable and taxes. The potential benefits from sharing services are not fully realized within billing and payroll. When it comes to systems and applications, about 75% of the participants have more than 3 applications supporting the main finance processes. However, only 14% of the companies are still working with in-house developed application. Forty percent of the companies still rely on spreadsheet applications to support their main finance processes. When reviewing the different sub-functions (Close the books, Reporting, Accounts Receivable, etc), of the finance department the above outlined evolutions are also reflected in these priorities. Cost reduction through automation (electronic invoicing, purchase order system, etc) and processes re-engineering (days sales outstanding management, sharing services, etc.), and control in the broad sense (accuracy of the billing, tax planning and documentation, improve credit check, etc.) are constantly returning themes and priorities. After checking the literature on this topic, only one clustering by Robert C. Lowes1 of the University of California (Santa Barbara) could be found. Lowes sets up the following clustering for a base organization (see figure 1). His categories are the following: corporate audit, corporate accounting, management reporting & business analysis, investor relations and treasurer. Figure 1: Breakdown of CFO responsibilities for a base organization However, for a more expanded organization, he used the following categories (see figure 2). Figure 2: Breakdown of CFO responsibilities for an expanded organization Accounts Payables under review The cost of the department Working capital management: payment terms and supplier days outstanding Payment methods applied Functional analysis: activities handled within the Accounts Payable department Priorities for Accounts Payable for 2007 The cost of the department: The cost of the department can be measured in different ways, such as Accounts Payable department cost as a percentage of revenue, or the cost per processed invoiced. Figure 3: Account Payable cost as a % of revenue The average cost per invoice is around 7.33 and it appears to be almost twofold of invoice processing costs of the US companies with the median costs of 4.77 2. Definite reasons for this difference are not available at first sight however there are some considerations that need to be taken into account: Invoices in Europe tend to be more complex due to VAT, country specific elements. In a US market, economies of scale are easier to implement. Those economies of scale are realized through centralization and consolidation. *Data from APQC(2005) exchange rate of =1.2 $ Figure 1: Cost per invoice In addition to the cost per invoice, the number of invoices processed per FTE can also serve a representative measure of the productivity of the Accounts Payable department. *Data from APQC(2005) exchange rate of =1.2 $ Figure 5: Productivity The productivity of Accounts Payable functions of top quartile companies is more than twofold higher compared to the bottom quartile. The average productivity of the companies surveyed is still below the productivity of American companies. The urge to improve productivity in this area is acknowledged the majority of the participants. 58% of the companies surveyed are working on electronic invoicing and an invoice scanning introduction and further implementation. Working Capital Management Working Capital Management on the Accounts Payable side is impacted by two main drivers: 1. Payment terms as agreed with the supplier 2. Actual average days outstanding The payment terms as agreed with the supplier are highly industry and country driven. Benchmarking those terms is therefore something that needs to be approached with healthy skepticism. However there are several 'tips and tricks' that can assist you in assessing and improving your current situation: The financial statements of main supplier are a good source of information, they allow you to assess your own payment terms against those of its other customers. Payment terms are often last on the agenda of the Purchase department. Make them aware of the impact, and make sure those terms are a key element in the supplier selection and evaluation process. Besides the agreed upon payment terms, there are also the actual payment terms. A comparison has been made between the contractually agreed payment terms and the average days outstanding. Figure 6: Payment terms Figure 7 Payables average days outstanding By preference the contractual terms and the actual payment terms should be aligned. Late payment can result in numerous questions from the supplier, and therefore increased pressure on the organization. Early payments negatively impact the available working capital of the company. Payment methods applied At the end of the Purchase cycle, a payment is performed. Automating this final step in the cycle has been a priority over the last years. The positive outcome of this automation process is also reflected in the survey results. 93% (50% EDI - 43% alternative electronic methods) of the payments are performed electronically. Figure 8: Payment methods Functional analysis The functional analysis gives an overview of the activities conducted within or outside the Accounts Payable department. There are several elements that determine where an activity is performed: Internal control/ segregation of duties (e.g. ordering - receiving - invoice processing - payment should by preference be segregated). Efficiency: document storage and error/inquiry handling can be handled by an in-house or outside expert. Figure 9: Functional analysis Looking forward: priorities for 2007 The top four priorities that are mentioned among CFOs regarding accounts payable are: 1. Assessing the set up of a shared service center 2. The implementation of electronic invoicing 3. Invoice scanning 4. Introduction of a purchase order system The impact and outcome of these priorities on the purchase cycle process can in some cases be questioned: Purchases conducted without a purchase order and an approved delivery result in a substantial additional workload: Invoices need to be pre-registered before being 'sent around' in the organization for approval. Invoices are circulating in the organization waiting for approval. Month end accruals need to be followed up manually. In addition, this weakens to a large extend the internal control environment. The use of a purchase order limits the risk of unapproved purchases. Based on the research that was presented above, I would like to draw attention to the areas of possible improvements: Request suppliers to mention the purchase order reference and cost center on the invoice. Invoices which are non compliant should be sent back to the supplier, accompanied by an explanatory note. A 'black list' of employees not complying with the purchase procedure can be set up on a quarterly basis. Enforce the creation of a purchase order, even if the delivery and invoicing have taken place already. Thank you for your attention and hope that we can start implementing some changes within our organization!!! Bibliography for Personal Report: 1. Cryer, P. Transferable skills, marketability and lifelong learning: the particular case of postgraduate research students. Studies in Higher Education, 23:2, 207-216,1998. 2. Article Title: Realising Your Own Value. Newspaper Title: Evening Chronicle. June 3, 2004. 3. John Abbott Turning Learning Upside Down and Inside Out, School Administrator. Volume: 55. Issue: 1. January 1998. Bibliography for Business Report: 1. APQC Open Standards Benchmarking Collaborative (OSBC) Research. "By the numbers Accounting." 2005. 2. De Tijd. "Strategische rol financieel directeur groeit." 17 October 2005. 3. Andersen Global Best Practices. "Finance & accounting report." 2001. 4. Deloitte Nederland. "De agenda van de CFO." September 2004. 5. Jeremy Hope, Reinventing the CFO: how financial managers can transform their roles and add greater value, Harvard Business School Press, 2006. 6. Lowes, C. Robert. "Chief Financial Officer - CFO: Brings Logic & Order to what would otherwise be Chaos." 6 June" 2006. 7. http://www.econ.ucsb.edu/classes/econ194/ (The University of California). Read More