Beyond Traditional Cost Reporting - A Wakeup Call for CMAs in Employment

Abstract

The need for un-learning re-learning the cost management competencies have emerged as a major game changer for a CMA in employment. The emergence of Cross Functional Teams in Cost Management in leading Companies, have shifted the CMA from under the Financial Reporting function to reporting directly to the Business Head. The cost reporting focus has also shifted to Business Strategy Driven from the Historical (Does) cost structure. The process owners need to have multi-dimensional cost sheets, at different levels, tuned to their needs, which talk in their (non-financial) language, so that they can take action then and there itself in case of deviations from norms. They also require a Real Time (Would) and Futuristic/Target (Should) Cost, for decisions on the go. The TCM methodology (© CII-TCM Division) has developed excellent TCM Architecture based on TCM Maturity Model Level 5 Companies’ best practices. It provides a golden opportunity to the CMAs in employment to swim in the Blue Ocean rather than compete in a blood bath in the Red Ocean of Financial Reporting. The CII-ICMAI MoU can be a major enabler in this learning exercise.