Key Skills Flashcards
How to think strategically?
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Take long term perspective
- Does the solution only fix issues in the short-term how will it affect the long term? issues of a business
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Look at the Whole Organisation as well as the SBU
- How do the plans/situation affect the organisation as a whole and on an individual SBU basis and how will it affect the relationships with each other.
- Setting the Direction of the organisation and integrating activities
- New strategies could require a change in the firm’s organisational structure, governance and systems, which all need to be integrated for success
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Consider the views of all the stakeholders
- Are decisions acceptable to all stakeholders with a high level of power?
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Analysing the organisations’ resources and defining the requirements
- Consider the resource requirements of the organisation’s plans
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Relating the organisation to its environment
- Are Strategies positioned with respect to the market, key trends, competitor activities, consumer demand
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How will it gain or sustain it’s a competitive advantage.
- How is the firm currently competing?
Define Evaluation
three aspects: assess, estimate and appraise
- Assess-the situation on key problems faced by the organisation
- Estimate trends and reasonable forecast of the potential outcome of actions
- Appraise solutions, objectively balancing the costs risks opportunities before recommending a solution.
Having a balanced argument -
- - Look at both financial and non-financial indicators
- - Needs of the wider stakeholders
- - Balance risk and return
Also, there is a need for Prioritisation of your points-
- Is the issue a strategic one or operational
- Urgency of the response
- The Impact and materially of the issue
- Not to underestimate the Ethical issues
- what is the relevance of the issue to the key question being asked
Evaluation means to carefully assess situations, proposals and arguments in a balanced way, using professional and ethical judgement to predict future outcomes and consequences as a basis for sound decision making.
In the exam, this means ensuring possible courses of action are examined from different perspectives and, where relevant, clearly stating reasonable assumptions and including points both for and against.
Conclusions and recommendations made should be consistent with the most persuasive factors presented which provide a logical argument for the course of action suggested.
Evaluation Skill
1.Advice on demonstrating ‘assessment’:
Assess and use professional judgement when considering organisational issues, problems, or when making decisions, taking into account the implications of such decisions on the organisation and those affected.
Carefully understand the current situation and the business response, by looking at the potential benefits and risks of the actions
- Consider the potential importance and urgency of a problem when deciding a suitable response to the problem
- Determine the potential advantages and disadvantages associated with a decision
- Determine the potential impact of a decision on key stakeholders, and how they are likely to react to it
Evaluation Skill
- Advice on demonstrating ‘estimate’:
Estimate trends or make reasonable forecasts of the implications to external and internal factors on the organisation, or of the outcomes of decisions available to the organisation.
- Present sensible, justified estimates and forecasts; for example, in assessing the impact which a change in the business environment could have on an organisation’s performance.
- Identify the possible impact that different decisions could have on an organisation’s performance.
Evaluation Skill
- Advice on demonstrating ‘appraise’:
Appraise facts, opinions and findings objectively, with a view to balancing the costs, risks, benefits and opportunities, before making or recommending solutions or decisions.
- Present the arguments for and against a proposed strategy, so that an informed decision can be made about whether or not to pursue that strategy
- Make decisions, or recommend solutions, which are appropriate to the circumstances, on the basis of a balanced appraisal of advantages and disadvantages. For example, do the potential benefits from a strategy justify the costs involved?
Define: Sceptisicim
Scepticism means to
- probe
- question
- challenge
information and views presented, to fully understand business issues and to establish facts objectively, based on ethical and professional values.
- Be sceptical of the information presented, is it correct, truthful and complete?
- Questioning the data, What were the source and the purpose of the information, has it been verified by the third party?
- Consider the ethical perspective
- Remember the need for “tact”, showing skill and sensitivity in dealing with others or with difficult issues.
Scepticism Skill
1.Advice on demonstrating ‘probe’:
Probe deeply into the underlying reasons for issues and problems, beyond what is immediately apparent from the usual sources and opinions available.
- Don’t automatically accept that the initial reason given to explain an issue is correct. is there further evidence to back up claims? (Is the explanation somebody gives you consistent with other evidence? Does the explanation properly explain the issue or problem you are addressing?) For example, if a management accountant is offering an explanation of variance between actual figures and budget, are you satisfied their explanation properly explains the variance?
- Draw together information from different sources, rather than just including the most obvious (or most easily accessible) points. Does information from one source support, or contradict information from another source?
Scepticism skill
- Advice on demonstrating ‘question’:
Question facts, opinions and assertions, by seeking justifications and obtaining sufficient evidence for their support and acceptance.
- Scrutinise any assumptions being made: are they reasonable; can they be supported by the evidence available? (Don’t simply accept everything you are told.)
- Question the motive or rationale behind facts or statements. For example, does the person making a statement have a vested interest in one decision being taken in preference to another? If so, how reliable, or objective, is their evidence likely to be?
- identify additional information or evidence which may be required to corroborate facts or assertions being made
Scepticism Skill
3.Advice on demonstrating ‘challenge’:
Challenge information presented or decisions made, where this is clearly justified, in a professional and courteous manner; in the wider professional, ethical, organisational, or public interest.
- Highlight the weaknesses of or problems with, the information presented or potential decisions
- Use evidence to support your challenge, and justify challenges you make, perhaps by demonstrating evidence of wider reading
- Identify potential alternative interpretations of information or alternative courses of action, to reinforce your challenge
- Your ‘challenge’ should focus specifically on the problems with a decision, rather than trying to evaluate problems against benefits
Define Communication
- Inform
- Persuade
- Clarify
Communication means to express yourself clearly and convincingly through the appropriate medium.
While being sensitive to the needs of the intended audience and also understanding both the context and situation. e.g
- Who are the readers and the level of business knowledge?
- What are the key questions or concerns?
- What arguments are more likely to persuade them?
Communication Skill
- Advice on demonstrating “inform”
- Think about who you are addressing in your answer: Who are the audience? eg Board reports focus on strategic issues, along with shareholder and stakeholder concerns.
- Adopt an appropriate tone to suit your audience: eg formal vs informal; use the language they will understand; will they understand the jargon and technical terms, or should you avoid them?
- Use an appropriate style of communication: eg written vs graphic; slides; diagrams
- If the question requirement asks you use a specific format, you must present in that format.
Communication Skill
- Advice on demonstrating ‘persuade’:
Persuade using compelling and logical arguments demonstrating the ability to counter-argue when appropriate.
- Support your arguments with facts
- Explain why you think a course of action is suitable/unsuitable
- Use ‘justifying’ words, such as ‘because’: ‘I recommend you do this because…’
Communication Skill
- Advice on demonstrating ‘clarify’:
Clarify and simplify complex issues to convey relevant information in a way that adopts an appropriate tone and is easily understood by the intended audience.
- Focus on key points, and avoid unnecessary detail
- Use succinct (Short and Brief) sentences
- Use headings to break down information into clearly identifiable sections
- Present your arguments in a logical order
Define Commercial Acumen.
three aspects: demonstrate awareness, use judgement and show insight.
Commercial acumen means showing awareness of the wider business and external factors affecting business, using commercially sound judgement and insight to resolve issues and exploit opportunities.
- Show deep understanding of the external environment, the internal situation and the key issues that will affect the business, and using your judgement, come up with appropriate recommendations that deal with the situation
In the exam,:-
- this includes considering the change in revenue, Why? and how to improve it?
- cost or profit as an important driver in decision making and
- avoid suggesting solutions which will have a negative financial impact, unless it is to address a wider sustainability issue, such as ethics and governance.
Commercial Acumen Skill
- Advice on demonstrating awareness:
Demonstrate awareness of organisational and wider external factors affecting the work of an individual or a team in contributing to the wider objectives.
- Think about the specific context of a scenario and identify how this affects a decision
- Make sure recommendations are appropriate – and practical – to the context of the scenario
