Competency Map

for the CMA Profession

 Table of Contents

Page

Introduction ................................................................................................................................ 1
Section 1 – Framework for the Competency Map...................................................................... 3

Knowledge Areas ................................................................................................................. 3

Enabling Competencies ....................................................................................................... 6

CMA Competency Stages ................................................................................................... 7

Section 2 – CMA Competency Framework .............................................................................. 12
 Competency Map for the CMA Profession

Introduction

Certified Management Accountants (CMAs) do more than just measure value – they create it.
As the leaders in management accounting, CMAs apply a unique mix of financial expertise,
strategic insight, innovative thinking and a collaborative approach to help grow successful
businesses.

Every professional develops and refines their abilities throughout their careers. CMA Canada
understands this and wants to make sure its members and their employers, present and future,
appreciate how CMAs expand their strategic management accounting competencies throughout
their careers. A competency framework and map for the CMA profession illustrates this concept.

Simply put, competencies define what a CMA can do. These competencies evolve in the course
of a career and the CMA Competency Map reflects this evolution, articulating a career cycle
approach to developing and periodically verifying a CMA’s competencies post-certification.

The competency map clearly indicates that, although functional skills are an important part of
any professional’s development, a range of soft skills are also critical. They properly balance a
successful strategic manager’s knowledge set.

The three pillars of the CMA profession are accounting, management and strategy. In today’s
business environment, the three are very closely related. This is what makes CMAs such a
valuable commodity, since they possess breadth and depth of critical strategic knowledge,
including a strong foundation of accounting knowledge. The integration of the three defines the
CMA’s unique value to an organization.

Six functional competencies are at the core of the CMA knowledge set, providing a bridge
across these three pillars. The competencies are:
• strategic management;
• risk management and governance;
• performance management;
• performance measurement;
• financial resource management; and
• financial reporting.

Four additional competencies address what might be considered “soft” skills. These often create
the most effective senior executives – truly successful leaders use them to make sure the six
core functional competencies are delivered efficiently and effectively. These competencies are:
• problem solving and decision making;
• leadership and group dynamics;
• professionalism and ethical behaviour; and
• communication.

Although these competencies describe a unique and well-defined area of technical expertise
and personal characteristics that are expected at the point of CMA certification, the competency
map goes a step further, extending far beyond the traditional boundaries of the CMA Canada
accreditation process. The map directly addresses career progression and personal growth.
Competency Mapping Framework for the CMA Profession 2

The purpose of the competency map is to firmly reinforce for CMAs their role as strategic
financial management professionals. CMAs provide innovative strategic leadership and an
integrating perspective to decision making in organizations around the world. With this
competency map, CMAs now have a structured approach with which to build, confirm and
maintain their competencies.

The remainder of this document is structured as follows. Section 1 sets out the principle
elements of the Competency Map, and provides context and background to the map. The actual
Map follows in Section 2.
Competency Mapping Framework for the CMA Profession 3

Section 1
Framework for the Competency Map

The three primary elements of the Competency Map are discussed in this section: knowledge
areas or functional competencies; enabling competencies; and the competency stage approach.

1 Knowledge Areas

The Three Pillars

The current and future CMA designation rests on a foundation of three interrelated and
interdependent knowledge anchors: accounting, management, and strategy. These anchors
form a knowledge base that serves to frame the wider business territory that many different
designations, degrees, and specialized programs seek to serve. For example, traditional MBA
programs are designed to place candidates on the axis between Management and Strategy.

At the centre of this three-dimensional framework (the dotted circle) is the more specific and
differentiated territory for the strategic management accounting profession (and the individual
strategic financial management accounting professional within it), which is secured by the
integration of all three areas acting in concert.

Strategy

Management Accounting
Diagram 1

CMA CMA defined by the balanced integration of the three core knowledge anchors
of Strategy (S), Management (M) and Accounting (A).
Differentiated territory for the strategic management accountant.
Competency Mapping Framework for the CMA Profession 4

Accounting – The CMA functional knowledge and expertise is grounded in accounting,

including knowledge of the internal and external forces affecting the numbers. Specifically,
CMAs harness accounting knowledge to consider factors such as revenue alternatives,
managing costs, and building value in the organization. Simply put, this anchor involves getting
the numbers right.

Strategy – Current and future CMAs function effectively as an integral part of the management
team. Consequently, they must understand the process of achieving goals within their
organizations, how to manage people, and how to understand, anticipate and react to internal
and external forces. In short, this anchor is about using the right numbers to effectively
implement strategy.

Management – Both historically and looking forward, CMAs increasingly serve as a resource in
formulating and implementing the mission and vision for the organization, and play an active
role in ensuring that value creation for stakeholders is maximized by balancing and influencing
strategic competitive factors. In sum, this anchor is about using the numbers and awareness of
external and internal forces to generate and manage new or existing strategies.

It must be emphasized that, both in theory and practice, the three anchors are non-hierarchical
– indeed, a level of equilibrium between the anchors is central to positioning as strategic
financial management professions. No one anchor should dominate. For illustrative purposes,
however, the anchors are presented in the sequence in which prospective CMAs typically come
to master the respective functional fields. As an example, accounting often precedes the
development of higher-level management skills, which, in turn, are usually a foundation for the
achievement of strategic-level responsibilities within the organization.

Functional Competencies

Functional competencies reflect the common knowledge base of all CMAs. These competencies
are not defined in the same way the three pillars of strategy, management, and accounting are
above. It is the interrelationship among these three pillars that defines CMA’s unique
positioning. The six functional competencies, however, better elucidate the fundamental
interrelationships among the pillars. The six functional competencies are:

F1. Strategic management – The ability to chart a path to achieve sustainable value
creation within an organization.

F2. Risk Management and governance – The ability to evaluate strategic, operational
and financial risks and ensure that these are adequately measured, managed and
controlled, while at the same time establishing appropriate governance. This includes
internal control evaluation and risk reduction strategies and governance activities.

F3. Performance Management – The ability to set performance targets and implement
appropriate systems to support decision making and monitoring of performance
toward the achievement of these targets. This includes a focus on managing both
costs and revenues.

F4. Performance Measurement –The ability to evaluate performance consistent with the
Competency Mapping Framework for the CMA Profession 5

organization’s established strategy and targets.

F5. Financial Resource Management – The ability to set financial objectives and goals,
manage financial resources, and financial risk management.

F6. Financial Reporting – The ability to recognize, measure, disclose and analyze
information in an entity’s financial statements. Financial reporting focuses on the
needs of the external users (e.g. shareholders, creditors and regulatory agencies).

As illustrated below, these six functional competencies clearly provide a bridge across the three
pillars.

Strategy

Strategic
Management Performance
Measurement

Risk Performance
Management & Management
Governance
Financial
Reporting

Financial Resource
Management Management Accounting
Diagram 2

Differentiated territory for the strategic management accountant.

Functional Competencies.
Competency Mapping Framework for the CMA Profession 6

2. Enabling Competencies

Knowledge alone does not define a professional. Enabling competencies – competencies which
reflect the manner in which the professional conducts himself or herself, and how decisions are
made and communicated – are of equal importance. These enabling competencies are at the
professional core of being a CMA, a strategic financial management professional. They are:

E1. Decision making and problem solving – This basket of enabling competencies
includes such personal attributes as: analytical and problem-solving skills; the ability to
relate “parts” and “wholes”; the ability to understand and manage priorities; and having
an innovative and creative orientation.

E2. Leadership and group dynamics – This includes attributes such as: leadership
abilities – being able to lead and build teams; empathy; enthusiasm for collaboration;
process and change management skills; negotiation skills; and coaching/mentoring
skills.

E3. Professionalism and ethical behaviour – This group of competencies include:

personal integrity; professionalism; self-organization, self-control, and self-confidence;
attention to detail; independence and the ability to work with ambiguity.

E4. Communication (both written and oral) – This group of competencies includes:
listening, comprehension, oral and written skills; persuasiveness; and the ability to
communicate complex matters to all levels of the organization.

3. CMA Competency Stages

The tasks performed and positions held by a CMA evolve over the course of his or her career.
To reflect this, the competency map extends far beyond the traditional boundaries of
accreditation processes by defining competencies across career stages. Developing those
competencies requires stimulating continuing professional education and individual member
commitment to lifelong learning.

The competency map focuses on career stage development, not specialization. Specialization
involves building a narrow, technically focused competency set – a tax professional, for
instance. Career stage development, in contrast, implies expanding a person’s functional and
enabling skills. Such an individual will have a greater understanding of how decisions affect the
whole organization. For instance, a person that has mastered many of the competencies might
effectively reconfigure a particular function in an organization so that it operates more effectively
as an integrated part of the business. Such a reorganization might improve efficiencies,
establish better communications between functions, improve decision-making processes, etc.

Specializations such as tax compliance, public audit and information technology are not
incorporated into the map. Instead, the map defines competencies that are at the core of our
definition of a CMA.

CMAs are defined as strategic financial management professionals. As such, they are ideally
suited to senior positions such as that of the Chief Financial Officer and other C-suite positions
of authority – Chief Executive Officers (CEOs), Chief Risk Officers (CROs) and Chief
Competency Mapping Framework for the CMA Profession 7

Information Officers (CIOs), to name a few. Indeed, there are CMAs across Canada working in
these roles, among other positions. The CMA is equally suited to other career routes where the
skills of a strategic financial management professional are relevant.

CMA Canada expects that a substantial number of members will, through a combination of
professional certification and ongoing career accomplishments, rise to senior leadership
positions in their chosen industries or other sectors. It is also expected that a wider range of
members will achieve significant career success in mid- to senior-level management layers, in
generalist and specialist roles.

CMA Canada recognizes that individuals with varying backgrounds, in both career and
academic achievement, are attracted to the profession. These differences are vigorously
encouraged and supported by CMA Canada in its competency stage model. It is acknowledged
that CMAs achieve their designation and develop in their careers in different stages, so the
competency stage model considers both the process of developing the required competencies,
and the typical career conditions a member may experience.

The map presents four distinct competency stages: acquisition, basic proficiency, advanced
proficiency, and mastery. For reference and comparison, each competency stage identifies the
following:

 Career profile – a general articulation of the current career stage of the individual at each
potential competency stage.
 Competency approach – this provides a general articulation of the way in which necessary
competencies would be developed, confirmed, or sustained at each level.
 Exit characteristics – this is a general articulation of the characteristics that would be
present at the end of the competency stage in order to progress to the next stage.

Competency Stage 1 (CS-1): Acquisition

At this stage of development, a prospective candidate is focused on acquiring the specific body
of knowledge and related career skills that will support the development of the core
competencies necessary to achieve the CMA designation. These formative characteristics are
acquired through a combination of structured academic study in key knowledge areas, and
ongoing career experience at a range of potential levels.

Career profile:
Commonly, such individuals will be completing undergraduate studies relevant to the
designation, or will have completed a qualifying degree within the last five to seven years. Many
will be working at more junior levels of organizations, with a significant number already having
achieved roles within middle management. In the workforce, a proportion of individuals will
already possess or be working toward a graduate-level degree in a related discipline, and have
substantial career experience in either the general business field, or a specialist function within
the organization (such as engineering or sciences).

Competency approach:
Individuals in this competency stage acquire the foundational body of knowledge through a
structured program of academic studies, either through a recognized post-secondary institution
or through specialized instruction offered by a CMA Canada affiliate at the provincial level.
Competency Mapping Framework for the CMA Profession 8

Individuals who already have completed advanced degrees or other professional designations,
including those having completed international programs, may be reviewed against a common
system for prior learning assessment and recognition (PLAR), and acknowledged to have
achieved a high level of competency acquisition at this phase. Individuals will also typically
undertake a deliberate process of acquiring relevant career experience in support of developing
identified competencies, using information provided by CMA Canada affiliates in different
provincial jurisdictions.

Exit characteristics:
The individual will hold a recognized university degree (or equivalent), and be able to
demonstrate that they have acquired the necessary body of knowledge and foundational career
experience by completing an exam that evaluates general suitability for entry to competency
stage 2.

Competency Stage 2 (CS-2): Basic proficiency

At this stage of development, the individual undertakes a structured program of instruction at the
direction of a CMA Canada affiliated provincial body, based on a common national competency
syllabus. In parallel, the individual is subject to a structured monitoring process in his/her
employment, to ensure that necessary core competencies are demonstrated in the individual’s
workplace.

Career profile:
An individual at this level is typically operating within the lower end of the middle-management
layer, with demonstrated progression toward the more senior levels of this career stage. A
proportion of individuals at this competency stage will be at an advanced level within the middle-
management layer, or may already be operating at a senior level. A number of individuals at this
competency stage may hold other professional credentials or a combination of credentials and
advanced specialist degrees.

Competency approach:
Individuals at this stage build toward and demonstrate a basic level of proficiency in all core
competency areas. Necessary competencies are developed through a structured program of
competency-based training, offered either directly through a CMA Canada affiliated provincial
society, or in partnership with a qualified post-secondary institution. Competency-based training
may be offered at a number of different levels of instruction and duration matched to individual
capabilities, but based on the common competency map and uniform national accreditation
standards. In addition, the individual undertakes a deliberate process of career progression in
his/her workplace to demonstrate that specified core competencies can be applied effectively in
the workplace.

Exit characteristics:
Individuals will have achieved the CMA designation by providing a clear demonstration that they
have met the basic level of proficiency expected of a certified member, through a combination of
competency-based evaluations in a range of settings and formats, and verifiable practical
experience. Individuals will typically continue to expand upon their core competencies at this
level of proficiency for up to five years after designation, in preparation for advancement to the
next competency stage.
Competency Mapping Framework for the CMA Profession 9

Competency Stage 3 (CS-3): Advanced proficiency

At this stage, individuals are focused on expanding their core competencies through a
combination of broad applications in their ongoing career experience, pursuing the development
of additional career-specific competencies in their industry or sector, or pursuing further
competencies within their functional specialization in the organization (e.g. finance or IT).

Career profile:
The individual is an early to mid-career professional, between five and ten years after
certification. Within their organizations, they have usually achieved more senior positions within
the middle-management layer, and a significant number have begun to achieve introductory
senior management positions in their areas of specialization, or more generally within the
organization.

Competency approach:
Individuals expand upon and/or deepen their proficiency within core competencies through a
structured program of self-directed continuing professional learning and development (CPLD),
based on their individual career progression goals. Competency development also occurs
through the acquisition of ongoing career experience, as demonstrated by the progressive
acquisition of more organizational accountabilities and an expanded scope of authority.

Exit characteristics:
Individuals maintain ongoing records of competency development and progressive proficiency
growth, including periodic reporting to the necessary CMA Canada affiliated provincial
jurisdiction. The CMA member is supported in this proficiency development, or the expansion of
career-relevant competencies, by applicable CPLD programs at the national or provincial level.
This includes the possibility of the member receiving specialist certifications within the
designation by completing advanced programs of competency-based training and
demonstrating an enhanced level of proficiency.

Competency Stage 4 (CS-4): Mastery

At this stage, individuals are able to demonstrate ongoing mastery of core competencies
through applications in their ongoing career experience, and the pursuit of additional career-
specific competencies in their industry sector or within the context of their functional
specialization in the organization (e.g. finance or IT).

Career profile:
The individual is a late-career professional, having between 10 and 25 years of experience after
designation. The individual has the incontestable capability to respond to situations, both from
an integrative organizational perspective and from an external market context by drawing on a
vast array of potential responses accumulated through years of experience. Operating in a
senior management capacity, they are usually the highest ranking financial officer in the
organization, or are a financial professional with specialized knowledge in a functional area. A
significant proportion will be operating in the desired “C” space, and may be leaders of large
enterprises or significant strategic business units.

Competency approach:
The individual deepens their core competencies to the mastery level, and acquires a
complementary range of career-relevant competencies at various degrees of proficiency and/or
mastery. These are supported by a structured program of CPLD, including being involved in
Competency Mapping Framework for the CMA Profession 10

guiding the development of other members at earlier levels of proficiency through a structured
process of mentoring, or by serving as a strategic adviser.

Exit characteristics:
The individual maintains core competencies at an advanced proficiency level or higher
throughout the remainder of their career, continually demonstrating mastery in a range of
career-relevant competency areas.

This career competency approach provides for varying entry points and approaches – that is, it
respects the fact that individuals with different career experience and relative academic
achievement, or with a different balance between the three anchors of strategy, management,
and accounting, may have an interest in pursuing the CMA designation. For those wishing to
pursue the designation, a CS-2 basic proficiency is required, regardless of relative career
seniority. Each then continues to progress over the remainder of their career as a designated
strategic financial management professional.
Competency Mapping Framework for the CMA Profession 11

Section 2

Competency Map

The Competency Map defines competencies as functional or enabling, and each one is
represented in all four competency stages. There are ten higher level competencies – six
functional competencies and four enabling competencies. Each of these competencies is
presented in separate competency tables below (Tables F1 through F6, and E1 through E4).
These tables define the 10 higher level competencies. For the six functional competencies, sub-
competencies are defined for each career stage (acquisition, basic proficiency, advanced
proficiency, and mastery).

For the 14 sub-competencies, each of the four career stages (acquisition, basic proficiency,
advanced proficiency, and mastery) is explained. At this level, a member can fully understand
how competencies change with career progression.
F1. Strategic management – Charting a path to achieve sustainable value creation in an organization

CS 1: Acquisition CS 2: Basic CS 3: Advanced Prof. CS 4: Mastery

Proficiency
1.1 Vision/Mission – What the firm Is able to state and Is able to interpret and Is able to critique their Is able to design and
aspires to be and how it will be explain the role of a apply the vision and organization’s mission establish a process to
achieved. given organization’s mission statement of and vision statement develop a new vision/
mission and vision their organization. and suggest changes. mission statement.
statement.
Task examples:
• Corporate culture
• Goals and objectives
• Public Image

CS 1: Acquisition CS 2: Basic CS 3: Advanced Prof. CS 4: Mastery

Proficiency
1.2 Strategy formulation – Setting Define an appropriate Analyze the strategy Develop appropriate Evaluate the strategic
strategic direction by designing a strategy for a given for your organization strategic alternatives for options and
value proposition (who we sell to, organization. by performing an your organization using recommend the optimal
what we sell and how to produce it internal and external scenario/sensitivity strategies appropriate
efficiently) that takes advantage of scan. analysis. for the risk profile of the
the firm’s strengths and organization.
opportunities while avoiding
external threats and mitigating its Establish
weaknesses. implementation stages.
Task examples:
• External scan (e.g. five forces analysis, PEST).
• Internal Scan (e.g. value chain analysis, resource/capability analysis)
• Alternative corporate strategies (e.g. cost leader or differentiation, joint ventures, mergers and acquisitions, organic growth)
• Scenario/sensitivity analysis
• Strategy implementation
Competency Mapping Framework for the CMA Profession 13

CS 1: Acquisition CS 2: Basic CS 3: Advanced Prof. CS 4: Mastery

1.3 Strategy implementation –
Alignment of firm resources/actors
to ensure accomplishment of the
strategy.
Proficiency
Is able to describe the Is able to identify and Is able to design and Is able to evaluate and
steps in the strategy select the appropriate suggest a series of advise on the steps for
implementation set of financial and steps to align financial the alignment of
process for a given non-financial resources and non-financial financial and non-
organization. which will lead to the resources for their financial resources for
implementation of a organization. their organization
strategy for their including the alignment
organization. of functional areas.

Is able to establish the

strategic performance
evaluation process.
Task examples:
• Organizational structure (simple, divisional, matrix)
• Management control framework (e.g. shared values, code of conduct, measurement and incentive systems)
• Corporate Social Responsibility strategy
• Organizational culture
Competency Mapping Framework for the CMA Profession 14

F2. Risk Management and Governance – The ability to evaluate the strategic, operational and financial risks and ensure that
these are adequately measured, managed and controlled as well as establishing appropriate governance. This includes
internal control evaluation and risk reduction strategies and governance activities.

CS 1: Acquisition CS 2: Basic CS 3: Advanced Prof. CS 4: Mastery

Proficiency
2.1 Internal control – Evaluating Is able to document the Is able to analyze the Is able to design and Is able to evaluate and
internal control processes from the information flow in information flows in implement new draw conclusions on
risk management perspective. functional areas within their organization and processes and internal the impact of control
a given organization identify control control systems as well deficiencies on the risk
and identify control deficiencies. as suggest profile of the company.
deficiencies. improvements to
correct control Set acceptable risk
deficiencies in their levels and evaluate
organization. alternative risk
management initiatives
available to the
organization.
Task examples:
• Process flow diagrams for functional areas (e.g. sales, accounts payable, accounts receivable, treasury function)
• Control deficiencies in established processes (e.g. segregation of duties, data entry function, and quality control over outputs)
• Design and Implementation (e.g. process re-engineering, design of new internal control systems, changes in the business
environment and its impact on risk)
• Risk levels and procedures for reducing risk (i.e. policies for establishing strategic and operational risk at acceptable levels and
aligning incentives with chosen risk levels)
Competency Mapping Framework for the CMA Profession 15

CS 1: Acquisition CS 2: Basic CS 3: Advanced Prof. CS 4: Mastery

Proficiency
2.2 Enterprise Risk Management – Is able to describe the Is able to analyze risks Is able to develop and Is able to assess and
Evaluating the organization’s risks associated with a associated with present appropriate recommend changes to
strategies from a risk management given organization’s alternative strategies strategies taking into their organization’s
perspective. strategies. for their organization. consideration the risk strategies based on the
profile of their changing business
organization. environment.
Task examples:
• Risk levels related to the organization’s strategic objectives
• Shifts in the external environment and implications for the organization’s exposure to risk
• Impact of the strategic risk levels
• Strategy formulation and control systems, changes in the operating environment, and its impact on strategic risk
• Acceptable risk levels and procedures for reducing risk

CS 1: Acquisition CS 2: Basic CS 3: Advanced Prof. CS 4: Mastery

Proficiency
2.3 Governance – To assess Is able to identify, Is able to identify, Is able to prepare Develop the range of
whether strategies are appropriate research and document analyze and provide compliant external external reporting
and achieved and the organization emerging external information on reports such as the requirements in line
is in compliance with established compliance issues and emerging issues that MD&A. with applicable
regulatory guidelines. also to test for will be potential threats regulation and
compliance of activities to the organization’s establish a code of
with a given set of existing reporting conduct and ethical
strategies. requirements. values for the
organization. Establish
incentive schemes that
promote compliance.
Task examples:
• Current and emerging compliance of activities (e.g. compliance testing of activities to strategic initiatives and regulatory
pronouncements, documentation and research of emerging external compliance requirements)
• Management incentives
• Code of corporate conduct and ethical values
Competency Mapping Framework for the CMA Profession 16

F3. Performance Management – The ability to set performance targets and implement appropriate systems to support
decision making and monitoring the achievement of these targets. This includes a focus on managing both costs and
revenues.

CS 1: Acquisition CS 2: Basic CS 3: Advanced Prof. CS 4: Mastery

3.1 Cost Management – Using
organizational resources in an
effective and efficient manner
through the application of
appropriate tools and systems.
Proficiency
Is able to define and Is able to analyze the Is able to design and Is able to evaluate and
describe the attributes attributes of the cost implement a cost draw conclusions about
of a given cost management system in management system in the organization’s cost
management system. the organization. the organization. management system.

Task examples:
• Product and service costing (e.g. job order, process and ABC costing systems, allocation of indirect and joint costs)
• Cost control and process improvement (e.g. activity-based management and continuous improvement projects, target costing, and
business process re-engineering)
• Cost-based analyses (e.g. contribution margin/product mix, CVP analysis, relevant costs)
• Planning and budgeting (e.g. operational and financial budgeting, capital budgeting, project management)

CS 1: Acquisition CS 2: Basic CS 3: Advanced Prof. CS 4: Mastery

Proficiency
3.2 Revenue management – Using Is able to define the Is able to analyze the Is able to determine the Is able to evaluate the
internal and external sources of information information needed to organization’s progress organization’s progress
information to manage the revenue requirements to support the toward achieving its toward achieving the
stream as well as to achieve the support the value organization’s value value proposition. current value
organization’s chosen value proposition for a given proposition. proposition and
proposition. firm. recommend changes
where necessary.
Task examples:
• Pricing of the organization’s offerings
• Customer profitability analysis
• Competitive intelligence/benchmarking
Competency Mapping Framework for the CMA Profession 17

F4. Performance measurement –The ability to evaluate performance consistent with the organization’s established strategy
and targets.

CS 1: Acquisition CS 2: Basic CS 3: Advanced Prof. CS 4: Mastery

Proficiency
4.1 Performance reporting systems Is able to define the Is able to analyze and Is able to design and Is able to establish the
– Developing, implementing and attributes of the interpret the output of implement a performance metrics
operating systems to measure performance the organization’s performance for the organization
progress towards the achievement measurement and performance measurement and given strategic and
of strategic and operational goals. reporting system in a measurement and reporting system for the operational goals,
given organization. reporting system. organization. evaluate performance
relative to those goals
and recommending
change
Task examples:
• Responsibility accounting and transfer pricing
• Stakeholder analysis (e.g. non-financial measures, balanced scorecard, triple bottom line reporting)

CS 1: Acquisition CS 2: Basic CS 3: Advanced Prof. CS 4: Mastery

Proficiency
4.2 Incentive and compensation Is able to identify the Is able to analyze the Is able to identify Is able to evaluate the
systems – Aligning individual and attributes of the attributes of the problems and propose proposed alternatives
organizational goals. incentive and incentive and alternatives for the and recommend
compensation system compensation system organization. changes to the
for a given firm. in the organization. incentive structure in
the organization.
Task examples:
• Incentive effects (e.g. short versus long term time horizon, fixed versus variable pay)
• Factors in compensation mix (i.e. cash, stock, options), including relevant tax implications
 Competency Mapping Framework for the CMA Profession 18

F5. Financial Resource Management – The setting of financial objectives and goals, managing financial resources, and
financial risk management.

CS 1: Acquisition CS 2: Basic CS 3: Advanced Prof. CS 4: Mastery

Proficiency
5.1 Setting financial objectives and Is able to describe the Is able to participate in Is able to lead the Is able to specify and
goals and managing financial process for establishing managing the financial management of establish financial
resources. financial objectives and resources and in financial resources and objectives and ensures
the principles of setting the recommends changes optimization of the
managing financial organization’s financial to the organization’s organization’s financial
resources in a given objectives and goals. financial objectives and resources.
organization. goals.
Task examples:
• Financial objectives and goals
• Organization’s debt requirements
• Investment portfolios and financial instruments
• Buy vs. lease decisions
• Pension assets
• Understand and assess the value of a business
• Day-to-day operational functions
• Cash budgets
• Treasury functions (e.g. dividend policy, alternative sources of financing, cash flow and working capital)
Competency Mapping Framework for the CMA Profession 19

CS 1: Acquisition CS 2: Basic CS 3: Advanced Prof. CS 4: Mastery

5.2 Financial risk (strategies)
management – Includes financial
risk assessment to mitigate and/or
manage opportunities and threats;
assesses external environmental
risk; identifies and evaluates
operational funding requirements.
Develops and recommends
financial strategic business plans
and forecasts.
Proficiency
Is able to define and Is able to analyze and Is able to design, Is able to evaluate and
describe financial risk interpret financial risk develop and implement draw conclusions about
strategies for a given strategies appropriate appropriate financial the effectiveness of the
organization. for the organization. risk strategies. organization’s financial
risk strategies, and
make changes for
future improvements.

Task examples:
• Sources of financing (e.g. public vs. private, debt vs. equity)
• Financial strategy
• Legal form of the entity
• Direct investment, outsourcing, or strategic alliances
• Impact of tax on finance and investment decisions
• Strategic business plans and forecasts (e.g. new markets/products, acquisitions and mergers, joint ventures and strategic alliances)
 Competency Mapping Framework for the CMA Profession 20

F6. Financial Reporting – The recognition, measurement, disclosure and analysis of information in an entity’s financial
statements. Financial reporting focuses on the needs of the external users (e.g. shareholders, creditors and regulatory
agencies).

CS 1: Acquisition CS 2: Basic CS 3: Advanced Prof. CS 4: Mastery

6.1 Financial statement
preparation and design -
Managing accounting records
and systems, and the accounting
cycle, efficiently and accurately
to produce financial statements
that comply with regulatory and
GAAP requirements. Adapts
financial accounting systems in
response to current and
emerging developments.
Proficiency
Is able to define and Is able to prepare and Is able to design and Is able to evaluate,
describe the analyze the implement a financial draw conclusions and
components of a given organization’s financial reporting system in the assess strategies for
set of financial statements. organization. improvements in the
statements. organization’s financial
Understands GAAP and reporting.
other reporting
requirements.

Task examples:
• Financial statement preparation
• Accounting records and systems
• Accounting cycle
• Accounting treatment for transactions
• Reporting obligations
• Reliability of financial information
• Internal accounting policies
• Budgets and forecasts
• Compliance with regulatory and GAAP requirements
Competency Mapping Framework for the CMA Profession 21

CS 1: Acquisition CS 2: Basic CS 3: Advanced Prof. CS 4: Mastery

6.2 Financial statement analysis -
Benchmarking performance and
evaluating risk through the use of
ratio, trend and comparative
analysis.
Proficiency
Is able to define and Is able to perform Is able to evaluate and Is able to recommend
apply methods for analysis on the draw conclusions about changes in strategy
financial statement organization’s financial the analysis of the based on the output
analysis for a given statements. organization’s financial from financial statement
organization. condition. analysis.

Task examples:
• Financial benchmarks and comparative performance
• Organization’s performance to budgets
• Financial ratios
Competency Mapping Framework for the CMA Profession 22

Enabling Competencies

Enabling competencies are those competencies that support the effective application of the functional competencies. As the
application of functional competencies become more readily available, the distinct advantage for CMAs will be found in the ability to
demonstrate enabling competencies at a significantly higher level than others in all situations. The demonstration of enabling
competencies must occur within a context of various tasks that will vary by situation.

E1. Problem Solving and Decision Making

CS 1: Acquisition CS 2: Basic CS 3: Advanced Prof. CS 4: Mastery

Proficiency
Problem solving and decision Is able to collect and Is able to collect and Is able to review Is able to define a
making – Problem solving in a analyze data as well as analyze data as well as alternatives, generate problem, review the
systematic manner. Decision generate preliminary generate preliminary alternatives, establish problem-solving
making including integrative alternatives and alternatives and decision criteria, process as well as
thinking, judgment and propose a solution to a propose a solution for a perform a risk analysis mentor the efforts of
stakeholder analysis. given problem. defined problem in their as well as make and others. Approve and
workplace. present preliminary ensure the
Is able to examine and recommendations. implementation of the
make decisions in Is able to make and final recommendation.
hypothetical business implement short-term Is able to make and
cases. (i.e. daily to monthly) implement medium- Is able to make and
decisions involving their term (i.e. monthly to implement long-term
The scope of these position, work group yearly) decisions decisions involving their
decisions is generally and department level. involving their organization and its
comparatively narrow, department and other external environment.
with nominal effect on The scope of these functional areas.
others. decisions is generally The scope of these
comparatively narrow, The scope of these decisions is at an
with nominal effect on decisions is at a organizational level,
others. departmental level, affecting others inside
affecting others in the and outside the
organization. organization.
Examples of applications to functional competencies:
• Strategy formulation
• Risk assessment
• Mergers and acquisitions
• Organizational structure development
• New product development
• Market development
Competency Mapping Framework for the CMA Profession 23

• Investment decisions
• Incentive structure
• Budget formulation
Competency Mapping Framework for the CMA Profession 24

E2. Leadership and Group Dynamics – Ensuring effective human interaction to achieve the overall goals of the organization

CS 1: Acquisition CS 2: Basic CS 3: Advanced Prof. CS 4: Mastery

Leadership and group
dynamics – The ability to
set/achieve organizational
goals through motivating
individuals in both individual
and group/team settings.
Examples include being in
charge, developing others,
direction setting, exerting
personal influence, situational
negotiation/adaptation skills, and
the ability to work
collaboratively.
Examples of applications to functional competencies:
Leadership and teamwork skills apply to some degree across all functional tasks, but are particularly important in the following contexts:
• Project management
• Change management
• Strategic planning
Proficiency
Is able to recognize Is able to lead Is able to mentor and Is able to set strategic
opportunities to take individuals within their build leadership skills in direction, lead change,
initiative consistent with functional area others, delegate align the human and
organizational goals effectively. effectively and non-human resources
and act on such implement change of the organization,
opportunities. Is able to lead single within the organization work as an effective
function teams and consistent with member of the
Is able to work assigning appropriate corporate culture. executive team and
effectively as a team tasks and taking lead by example, and
member including responsibility for Is able to construct and evaluate corporate
making appropriate outcomes. lead cross-functional culture.
personal contributions teams, including
and adding to the assigning major tasks, Is able to define the
quality of the overall leading effective team overall teamwork and
team performance. meetings, and taking committee structures
responsibility for the within the organization,
overall outcomes. examine overall
outcomes and
information flow from
teams to the
organization.
Competency Mapping Framework for the CMA Profession 25

E3. Professionalism and Ethical Behaviour

CS 1: Acquisition CS 2: Basic CS 3: Advanced Prof. CS 4: Mastery

Proficiency
Professionalism and ethical behaviour Is able to understand Is able to demonstrate Is able to identify and Is able to establish
– Professional and ethical behavioural and describe the appropriate resolve ethical and and monitor the
competencies are divided between distinction between professional and professional conflicts organization’s code of
competencies inherent in individuals and inherent and ethical judgment in in the organization and conduct and whistle
can be developed, and professional skills professional skills and decision making. recommend blowing policies as
that all who aspire to the profession must why they are critical to appropriate resolution well as mentor others
demonstrate. The following describes the professionalism. to the conflicts. in the application of
nature of inherent competencies and Identifies potential the policies.
observable professional behaviour: professional and Is able to recommend
• Inherent ethical and professional ethical conflicts in a adaptive changes to
competencies: personal integrity and given situation. the organization’s
honesty, self-organization, self-control, code of ethics.
self-confidence, attention to detail,
autonomous/independent nature,
coping, credibility, working with
ambiguity, etc.
• Observable professional
behaviour: identifies conflict of interest
situations; protects the public interest;
exercises due care and dilligence;
protects confidentiality of information;
demonstrates professional courtesy;
enhances the profession’s reputation;
adheres to the rules of professional
conduct; mentors others; etc.
Understands and commits to the CMA
professional code of ethics across all
competency stages.

Examples of applications of functional competencies:

Demonstrated throughout all competency stages and functional and enabling competencies.
Competency Mapping Framework for the CMA Profession 26

E4. Communication

CS 1: Acquisition CS 2: Basic CS 3: Advanced Prof. CS 4: Mastery

Proficiency
Communication (written and oral) Is able to communicate Is able to select Is able to develop a Is able to evaluate
– Includes: listening, effectively and appropriate modes of wide variety of written existing communication
comprehension, oral and written confidently before an communication to reports for specified structures within the
skills, persuasion, communication of audience, using effectively and purposes within the organization and
complex matters to all levels of the appropriate confidently convey organization that meets recommend changes
organization, etc. presentation techniques financial and non- the needs of the where needed.
in a given situation. financial information to intended audience.
an audience within their Is able to create a
Is able to listen organization. Is able to demonstrate communication
effectively in a given through their actions the structure that respects
situation. Is able to listen ability to respect the the views of others and
effectively and facilitate views of others and encourages feedback
Is able to document the expression of others encourage feedback within the organization.
issues clearly and in their organization. within the organization.
concisely in a manner Is able to establish
appropriate to the Is able to communicate Is able to make appropriate external
audience in a given ideas clearly and effective presentations communication
situation. concisely in a manner on specific structures that project
appropriate to the organizational issues the desired corporate
audience in their that meet the needs of image.
organization. the intended audience.

Examples of applications to functional competencies:

• Communicating the vision/mission statement
• Management Discussion and Analysis
• Financial and non-financial reports
• Organization’s value proposition
• Strategic business plans