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Delivering value and accountability: how finance can help Logo cima

  CIMA & National Audit Office Expert Panel |   Free |   National Audit Office |   Oct 2014 |   Thought leadership

In May 2013, the NAO and CIMA convened a panel of finance experts from across the public and private sectors to improve shared understanding around the best use of costing information and techniques. The panel took the opportunity to focus its attention on supporting the implementation of the Financial Management Review (FMR) by identifying ways in which a strong, integrated finance function can help accounting officers, permanent secretaries and boards deliver value and support accountability. This report draws on the combined expertise of the public and private sector members of the panel and the case examples they have provided.

Topics covered:
  • Management accounting: Technical: Cost accounting & management: Cost management, Expert

6 Comments/Reflections

Robert Smith

Robert Smith Mar 2020

This is a good high level report that identifies how overall cost management needs to be strategically driven.

The report then identifies 5 key factors that should enable the finance function to meet these requirements:
  • The organisation understands its business model.
  • Leadership demands, uses and rewards the right management information.
  • The finance function has the right structure and skills.
  • There is one version of the truth on costs and value.
  • There is the right balance of stability and flexibility in the financial framework.

The use of case studies to illustrate the core propositions made the report more readable and translatable into actions that can me taken in my organisation.

What competency did I develop?
Reinforced the linkage between strategy and cost management.

What can I do now that I couldn't before?
This has helped me improve the structure of my thought process for driving cost down whilst improving outputs and outcomes.

Did I meet my objectives?

What will be the wider impact on my team, organisation and career?
Using a more structured approach will enable a better method for communicating to team members and the board the strategic rationale and process from improving cost effectiveness whilst driving value outputs. This will lead to a more profitable organisation.
Hubert Roddy

Hubert Roddy Sep 2018

A very interesting and useful document, although a little out of date at this stage (2018). While heavily slanted towards the public sector, the principles listed and information given in the case studies can frequently be applied to all organisations, large and small. I also felt that it might be useful to me as an aid to understanding the Government approach to value for money in their dealings with the charities with which I'm involved.

I found it necessary to suspend disbelief on some of the reported outcomes (prisons, Thameslink etc) in the light of subsequent events. There is also a certain amount of scepticism necessary in evaluating the reported successes of organisational change where the report of success comes from the groups charged with instigating the change.

However, all-in-all a worthwhile document and one which I will save and may well come back to.
Victoria Tolfts

Victoria Tolfts Jan 2018

A really good article, reflecting on and pulling together much of what we should already know and do, and providing a good structure and checklist of those responsibilitiees.
Ian David

Ian David Feb 2017

A well structured article demonstrating the scaleability of the approach and a variety of case studies where it had been successfully implemented.
Adrian Cook

Adrian Cook Oct 2015

Useful in my role as Finance Business Partner in large global org. Finance being trusted and valued very important, and BP not getting into swamped.