What’s the Scenario?
Sally is a newly promoted Assistant Finance Manager at a medium-sized technology firm. She has always prided herself on her work ethic and ability to take on new challenges, but she now finds herself in a tricky situation. The company is expanding rapidly into new territories, and a crucial financial report is due for submission to the board. The Finance Manager (Sally’s manager) has asked Sally to prepare the first draft of the report, which includes complex financial forecasting and an assessment of the company's long-term financial viability in the face of this expansion.
Sally is eager to prove herself in her new role, but she starts to fear that she lacks the necessary expertise in financial forecasting and risk assessment. She considers asking for help from an external consultant or a more experienced colleague but worries that doing so might make her appear incapable in the eyes of her manager. Sally tells herself that she has enough general knowledge to complete the report and that, with some research, she can put something together before the upcoming deadline. However, as she begins working on the report, she realises that the calculations and assumptions she is making are based on a basic understanding of the raw data, and she starts to doubt whether her work will be fully accurate.
What should Sally do?
Guidance and Support
The dilemma Sally faces is common, especially for professionals in new roles who want to prove themselves. Not to worry! The CIMA Code of Ethics and wider ethics resources exist precisely to provide support to professionals of all levels of seniority. If you think the CIMA Code of Ethics is purely a rule book of dos and don’ts, then you would be wrong. More than that, it helps professionals to embed ethical thinking within their professional practice and to provide guidance on how to navigate the complexities of professional life.
The situation Sally finds herself in relates to the Fundamental Principle of Professional Competence and Due Care. According to Section 113.1 of the Code, professional accountants must "attain and maintain professional knowledge and skill at the level required to ensure that a client or employing organisation receives competent professional service, based on current technical and professional standards and relevant legislation" (R113.1 (a)). Furthermore, they are expected to "act diligently and in accordance with applicable technical and professional standards when providing professional services" (R113.1 (b)). Sally’s decision to proceed despite suspecting she lacks the necessary expertise puts her at risk of being in breach of this principle. If she were to submit a financial report that is not accurate, she could mislead the board and ultimately harm the company. If her projections are flawed due to inaccuracies in her calculations, the board might make critical decisions about the future of the company based on incorrect information, which could put the company at serious risk of financial instability.
It may yet still be possible for Sally to deliver on this report. She has already considered approaching a senior colleague with more experience in financial forecasting to assist. Taking the opportunity to collaborate with other colleagues is a great way for Sally to develop her professional competence while delivering on the CEO’s request. Seeking support from an external consultant may require additional budget which is not always possible. But, if the solution is available, that would likely be preferable than the risk of presenting an inaccurate report. Sally should be mindful that any external consultant signs an appropriately drafted agreement to ensure that confidentiality surrounding the company’s financials is maintained.
It is understandable that Sally would want to do her best by giving the report a go in the first instance. It is difficult to go back to a senior member of staff to communicate that you believe a task may be beyond your capability, especially if you have just been promoted. However, should she need to, Sally may wish to consider speaking with her manager to explain that, while she is fully committed to delivering a high-quality report, she would benefit from additional guidance or support. Many organisations would be willing to help upskill their employees to support their development. Sally can frame this as a sign of her commitment to self-improvement and to ensuring that she delivers the highest standard of work. Many organisations would appreciate employees with this level of dedication.
In addition to this, Sally could take the time to upskill herself by obtaining further training in financial forecasting. Professional development does not stop with earning the letters after one’s name. The CIMA Code encourages professional accountants to seek continuous professional development, requiring that they "maintain professional knowledge and skill to ensure that a client or employing organisation receives competent professional service" (R113.2). There is always more to know. More to learn. This should not deter Sally. Understanding that there is always more to know is freeing as it reminds us that growth is a natural state of existence. It should not be avoided but embraced. The more Sally learns, the more competent she becomes, the more confident she will be in delivering what is asked of her.
If Sally were to proceed without taking any steps to safeguard against the risks identified, she would not only risk her own job, reputation, and professional practice, she also runs the risk of exposing the company to financial harm for poorly informed strategic decisions. That could risk the intended expansion, meaning there are those who could have the same opportunities that she has, taken away from them as those new jobs would no longer be viable. Also, it could potentially place each current employee at risk of losing their job, impacting them and their families. The cascading effect of these decisions can be significant. That is why it is always prudent to consider seeking the necessary support in order to deliver on the high-quality of work expected. To do otherwise is to risk falling below the highest standards of practice expected on CIMA members.