Competency Map 05

June 2006 Final
Competency Framework and Map

for the CMA Profession

June 2006 Final
Competency Framework and Map for the CMA Profession
Table of Contents Page
Introduction................................................................................................ 1
Section 1
CMA Competency Framework................................................................... 3
Functional Competencies..................................................................... 5
Enabling Competencies........................................................................ 7
CMA Competency Stages .................................................................... 8
Section 2
CMA Competency Map............................................................................ 15

June 2006 Final

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.
All professionals develop and refine their abilities throughout their careers. CMA Canada
understands this and wants to ensure its members, their employers and clients present and
future, appreciate how CMAs expand their strategic management accounting competencies
as their careers unfold. Accordingly, a CMA Competency Framework and Map (CMA
Competency Map) has been developed for the profession by CMA Canada and its affiliated
partners.
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 life cycle approach to developing and maintaining a CMAs competencies post-
certification.
The three pillars of the CMA profession are accounting, management, and strategy. In
todays business environment, the three are very closely related. This is what makes CMAs
so valuable breadth and depth of critical strategic knowledge, including a strong
foundation in accounting. The integrative application of expertise in the three pillar areas
defines a CMAs unique value to an organization.
In the CMA Competency Map, the interdependence of the three pillars is illustrated by the
six functional competencies that form the core of the CMA knowledge set:
strategic management;
risk management and governance;
performance management;
performance measurement;
financial management; and
financial reporting.

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Introduction (continued)
Although functional skills are an important part of any professionals development, a range
of soft skills is also needed to complete the successful strategic managers knowledge set.
These enabling skills often create the most effective senior executives. The CMA
Competency Map indicates four enabling competencies that address what might be
considered soft skills. Truly successful leaders use them to make sure that the six functional
competencies are delivered efficiently and effectively. The enabling competencies are:
problem solving and decision making;
leadership and group dynamics;
professionalism and ethical behaviour; and
communication.
Together, these ten competencies describe the unique and well-defined blend of technical
expertise and personal characteristics that is expected at the point of CMA certification. Yet,
the CMA Competency Map goes further, extending far beyond the boundaries of the CMA
Canada accreditation process to address subsequent career progression and lifelong personal
growth.
For CMAs, the purpose of the competency map is to reinforce their role as strategic
financial management professionals. CMAs provide innovative strategic leadership and
bring an integrating perspective to decision making in organizations around the world. With
this competency map, CMAs now have a structured approach for building, confirming, and
maintaining their professional competencies throughout their careers.
The remainder of this document is arranged in two sections. Section 1 explains the principal
elements of the CMA Competency Map, providing context and background. Section 2
presents the CMA Competency Map.

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Section 1
CMA Competency Framework
This section explains the pillars of the CMA profession and the primary elements of the
CMA Competency Map: the functional competencies, the enabling competencies, and the
competency stages.
The CMA designation rests on a foundation of three interrelated and interdependent
dimensions: accounting, management and strategy. These pillars of the profession form a
knowledge base supporting 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, is the more specific territory of the
strategic management accounting profession and the individual strategic financial
management professional within it. This differentiated territory, represented by the dotted
circle, is secured by the integrative and balanced application of knowledge and expertise from
all three areas.
Strategy
Management Accounting

CMA CMA defined by the balanced integration of the three core pillars of Strategy (S),
Management (M) and Accounting (A).

Differentiated territory for the strategic management accountant.


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CMA Competency Framework (continued)
An overview of the three pillars of the CMA profession is presented below. It must be
emphasized that, in both theory and practice, the pillars are non-hierarchical and that
balanced integration is fundamental to the brand essence of the strategic financial
management profession. However, for illustrative purposes, the respective functional
fields are described in the sequence in which prospective CMAs typically master them.
Accounting is often a prerequisite to developing higher-level management skills which, in
turn, are usually necessary for the fulfilment of strategic responsibilities within an
organization.
1. Accounting
The functional knowledge and expertise of CMAs has been and will continue to be
grounded in accounting, and includes an understanding of the internal and external
forces that affect the numbers involved in accounting. Specifically, CMAs harness
accounting knowledge in support of such considerations as revenue alternatives, cost
management, and value building. Simply put, this pillar involves getting thenumbers
right.
2. Management
Today, CMAs function as integral members of the management teams in their
respective organizations, and this will continue to be the case in the future.
Consequently, CMAs must comprehend the process of achieving organizational
goals and be able not only to manage people but also to understand, anticipate, and
react to internal and external forces. In short, this pillar involves using the right
numbers to implement strategy effectively.
3. Strategy
Increasingly, CMAs serve as resources in formulating and implementing a corporate
mission and vision, and this historic role will continue to be theirs. CMAs play an
active part in ensuring that value creation for stakeholders is maximized by balancing
and influencing strategic factors. In sum, this pillar involves using both thenumbers and
an awareness of external and internal forces to manageexisting strategies and generatenew
ones.

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Functional Competencies
The functional competencies comprise the knowledge base common to all CMAs. These
competencies are not defined directly in terms of accounting, management, or strategy. It
is the interrelationship of these three pillars that defines a CMAs unique positioning, and
this is reflected in the six functional competencies, as follows:
F1. Strategic Management The ability to chart a path that enables an organization
to achieve sustainable value creation.
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 the evaluation of internal controls, the application of
risk reduction strategies, and other governance activities.
F3. Performance Management The ability to implement appropriate systems to
support decision making, set performance targets, and monitor performance with
respect to target achievement. Performance management focuses on managing
both costs and revenues.
F4. Performance Measurement The ability to evaluate performance with respect
to the organizations established strategy and targets.
F5. Financial Management The ability to set financial objectives and manage
financial resources and risk .
F6. Financial Reporting The ability to understand, produce, and analyze the
information disclosed in an organizations financial statements. Financial reporting
focuses on the needs of external parties such as shareholders, creditors, and
regulatory agencies.
As illustrated below, these six functional competencies are integrative processes within
the knowledge framework established by the three pillars of the profession and, more
specifically, within the differentiated territory of the strategic management accountant.

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Functional Competencies (continued)
Strategy
Management Accounting
Strategic
Management
Risk Management
& Governance
Performance
Measurement
Performance
Management
Financial
Reporting
Financial Resource
Management

Differentiated territory for the strategic management accountant.
Functional Competencies.


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Enabling Competencies
Functional competencies are essential, but knowledge alone does not define a
professional. Of equal importance are enabling competencies, which reflect the manner
in which the professional conducts himself/ herself and how decisions are made and
communicated. These enabling competencies are at the professional core of being a
CMA, a strategic financial management professional. The four enabling competencies
are:
E1. Problem Solving and Decision Making Innate analytical and problem-solving
skills and the capacity for innovative and integrative thought, as well as the ability to
connect parts and wholes, identify and manage priorities, and adopt a broad view.
E2. Leadership and Group Dynamics The ability to work in, build, and lead teams.
This involves skill in such areas as organization, goal setting, collaboration, process
management, coaching, mentoring, empathy, flexibility, negotiation, and change
management.
E3. Professionalism and Ethical Behaviour The ability to operate with honesty,
integrity, credibility, self-confidence, self-control, organization, attention to detail, and
independence as well as the ability to cope with ambiguity, identify conflicts of interest,
exercise due diligence, protect the public interest, adhere to the rules of professional conduct,
and enhance the reputation of the profession.
E4. Communication (both written and oral) The ability to communicate effectively.
This involves listening, understanding, speaking, and writing with clarity; the art of
persuasion; and skill in communicating complex matters to all levels of the organization.

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CMA Competency Stages
Changes will occur in the tasks performed and positions held by a CMA as his/ her career
evolves. To reflect this, the CMA Competency Map defines competency acquisition over
typical career stages, extending far beyond the boundaries of the accreditation process.
Full development of the competencies requires stimulating, continuing professional
education and individual member commitment to lifelong learning.
The CMA Competency Map focuses on career stage development rather than
specialization. Specialization involves building a narrow, technically focused competency
set. For example, specialists in tax compliance and public accounting have built on the
competencies that are at the core of the definition of a CMA. In contrast, career stage
development involves expanding a persons functional and enabling skills so that the
individual has a greater understanding of how decisions affect the whole organization.
For instance, a person who has mastered many of the competencies might reconfigure a
particular function so that it operates more effectively as an integrated part of the
business. Such a reorganization might improve efficiencies, communication between
functions, decision-making processes, and so on.
CMAs are defined as strategic financial management professionals. As such, they are
ideally suited to C-suite positions of authority Chief Financial Officer (CFO), Chief
Executive Officer (CEO), Chief Risk Officer (CRO), and Chief Information Officer
(CIO), to name a few and there are CMAs across Canada working in these roles.
CMAs are equally well-suited to other positions and careers in which the skills of a
strategic financial management professional are relevant. Through a combination of
professional certification and ongoing career accomplishments, members will rise to
senior leadership positions in their chosen industries and sectors.
CMA Canada recognizes that individuals with varying career and academic backgrounds
are attracted to the profession. These differences are encouraged and supported
vigorously by CMA Canada in its competency development model. Since CMAs achieve
certification and develop competencies at different stages in their respective careers, the
competency map considers both the process of developing the required competencies,
and the career conditions that members typically experience.
The CMA Competency Map presents four stages of competency development:
acquisition, basic proficiency, advanced proficiency, and mastery. In the outline that
follows, information is provided for each competency stage with respect to:
Career Profile a general articulation of the current stage of the individuals
career.
Competency Approach a general articulation of the way in which the
necessary competencies would be developed, confirmed, or maintained at the
current competency stage.

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CMA Competency Stages (continued)
Exit Characteristics a general articulation of the characteristics that would
be present at the end of the competency stage in order for the individual to
progress to the next stage.

Competency Stage 1 (CS-1): Acquisition
At this stage of competency development, the prospective candidate is focused on
acquiring the specific body of knowledge and related career skills that 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 variety of levels.
Career Profile Typically, prospective candidates are either in the process of
completing undergraduate studies relevant to the CMA
designation or have completed a qualifying degree within the
previous five to seven years. Many are working at junior
levels of management and a significant number have achieved
roles at the middle-management level. A proportion of
individuals possess, or are working toward, a graduate-level
degree in a related discipline and have substantial career
experience in either the general business field or specialist
functions (e.g. engineering, science, etc.) within their
organizations.
Competency Approach Individuals acquire the foundational body of knowledge
through structured academic studies either at a recognized
post-secondary institution or in a specialized program of
instruction offered by a CMA Canada affiliate at the
provincial level. Also, to support personal development of
identified competencies, individuals deliberately undertake
to acquire relevant career experience, using information
provided by a provincial affiliate of CMA Canada. In the
case of a prospective candidate who has earned an advanced
degree or other professional designation, including those of
international origin, the Prior Learning Assessment and
Recognition system (PLAR) system may be applied and
such an individual acknowledged to have achieved a high
level of competency at this phase.
1

1
The PLAR system is commonly applied to prior learning, including professional designation programs.
For further information on PLAR concepts, see <http://fcis.oise.utoronto.ca/~plar/index.html>.

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Competency Stage 1 (CS-1): Acquisition (continued)
Exit Characteristics Individuals hold recognized university degrees (or
equivalents) and are able to demonstrate that they have
acquired the necessary body of foundational knowledge and
career experience by completing an examination that
evaluates general suitability for entry to Competency Stage
2.

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Competency Stage 2 (CS-2): Basic Proficiency
At the direction of a provincial affiliate of CMA Canada, the individual undertakes a
structured program of instruction based on the national syllabus. At the same time, the
individual is subject to a structured monitoring process at his/ her place of employment,
to ensure that necessary core competencies are demonstrated in the workplace.
Career Profile Typically, individuals are operating at the lower end, and
have demonstrated progression toward the higher end, of the
middle-management layer. A proportion of individuals are
working at an advanced or senior level within the middle-
management layer. A number of individuals hold other
professional credentials or a combination of credentials and
advanced specialist degrees.
Competency Approach Individuals progress toward, and demonstrate, a basic
level of proficiency in all core competency areas. In
addition, individuals deliberately undertake to progress in
their careers in order to demonstrate the effective
application of specified core competencies in a business
context. Necessary competencies are developed through a
structured program of competency-based training offered
by a provincial affiliate of CMA Canada either directly or
in partnership with a qualified post-secondary institution.
This training, based on national accreditation standards
and the CMA Competency Map, may be offered at a
different instructional levels and duration may be matched
to individual capabilities.
Exit Characteristics Individuals have achieved the CMA designation by
demonstrating, through competency-based evaluations in
a range of settings and formats as well as verifiable
practical experience, that they have met the basic level of
proficiency expected of a certified member. Typically,
individuals continue to expand upon their core
competencies at this level of proficiency for up to five
years after certification, in preparation for advancement to
the next competency stage.

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Competency Stage 3 (CS-3): Advanced Proficiency
The individual is focused on applying core competencies in his/ her ongoing career
experience and on developing additional competencies specific to an industry or sector,
or to a functional specialization (e.g. finance, information technology IT, etc.).
Career Profile Usually, individuals are early- to mid-career professionals
with between five and ten years of post-certification
experience. Most have achieved more senior positions
within the middle-management layer. A significant
number hold introductory senior management positions in
their areas of functional specialization or in the
organization as a whole.
Competency Approach Individuals deepen their proficiency in core competencies
or expand their range of career-specific competencies
through a structured program of self-directed continuing
professional learning and development (CPLD) based on
their personal career goals. Competency development also
occurs through ongoing career experience, as
demonstrated by progressive expansion of organizational
accountabilities and scope of authority.
Exit Characteristics Individuals maintain records of their increasing proficiency
and continuing growth in competency, reporting periodically
to the appropriate CMA Canada affiliates. CMA members
are supported in proficiency development and in the
expansion of competencies by applicable CPLD programs at
the national or provincial level. Members gain specialist
certification within the CMA designation by completing
advanced programs of competency-based training and
demonstrating an enhanced level of proficiency.

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Competency Stage 4 (CS-4): Mastery
The individual can demonstrate mastery of the core competencies in his/ her ongoing
career experience and continues to pursue additional career-specific competencies in an
industry or sector, or within the context of a functional specialization (e.g. finance, IT,
etc.).
Career Profile Individuals are late-career professionals, having between
10 and 25 years of post-certification experience. Operating
in senior management roles, they have the incontestable
capability to respond to situations with both an integrative
organizational perspective and an external market view,
drawing on a vast array of experiences accumulated over
the years. Most individuals are either the highest-ranking
financial officers in their organizations or financial
professionals with specialized knowledge in particular
functional areas. A significant proportion of individuals
are operating in the desired C space, and some of these
are leaders of large enterprises or significant strategic
business units.
Competency Approach Individuals deepen their core competencies to the mastery
level and acquire various degrees of proficiency in a range
of complementary, career-specific competencies. These
actions are supported by a structured program of CPLD
that includes guiding the development of members at
earlier levels of proficiency either by participating in
structured mentoring or by serving as a strategic advisor.
Exit Characteristics Individuals retain core competencies at the mastery level
throughout the remainder of their careers and continue to
demonstrate an advanced level of proficiency (or higher) in a
range of career-specific competencies.

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Routes to CMA Certification
The competency stage approach provides for multiple entry points to the profession,
respecting the fact that candidates come from a variety of career and academic
experiences and that each begins with a different balance among the three pillars of
accounting, management, and strategy. The diagram below illustrates the potential routes
to certification.
All those wishing to achieve the designation must demonstrate a CS-2 Basic Proficiency
level, regardless of career stage. Following certification, each CMA continues to develop
as a designated strategic financial management professional over the remainder of
his/ her career.

Differentiated territory for the strategic management accountant

Strategy
Accounting
Management
Senior-level entrant from workforce
(CMA Executive Program)
MBA entrant via
combined program
B.Comm entrant from
undergraduate
program

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Section 2
CMA Competency Map
For each competency stage (CS-1 to CS-4), the map defines ten higher-level competencies
six functional (F1 to F6) and four enabling (E1 to E4). On the following pages, each of these
competencies is presented in a separate table (Tables F1 through F6, and Tables E1 through
E4). Within Tables F1 through F6, the functional competencies are explained in terms of
sub-competencies.
As a result, each of the four competency stages (acquisition, basic proficiency, advanced
proficiency, and mastery) is described with respect to a total of 14 functional and 4 enabling
competencies. At this level of detail, the way in which competencies are developed over the
course of a career can be fully understood.


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CMA Competency Map

F1. Strategic Management The ability to chart a path that enables an organization to achieve sustainable value
creation.

CS-1:
Acquisition
CS-2:
Basic Proficiency
CS-3:
Advanced Proficiency
CS-4:
Mastery
1.1 Mission/Vision statement
Defining what the organization
aspires to be and how this will be
achieved.

The ability to state and
explain the role of a given
organizations mission
and vision statement.
The ability to interpret
and apply the vision and
mission statement of
his/her organization.
The ability to critique
his/her organizations
mission and vision
statement and suggest
changes.
The ability to design and
establish a process to
develop a new mission
and vision statement.
Areas of application:
Organizational culture.
Goals and objectives.
Public image.
CS-1:
Acquisition
CS-2:
Basic Proficiency
CS-3:
CS-4:
Mastery
The ability to define an
appropriate strategy for a
given organization.
The ability to analyze
strategy by performing an
internal and external
scan.
The ability to develop
appropriate strategic
alternatives for his/her
organization using
scenario/ sensitivity
analysis.
The ability to evaluate the
strategic options with
respect to the risk profile
of his/her organization
and recommend the
optimal strategies.
1.2 Strategy formulation Setting
strategic direction by designing a
value proposition (what to sell, to
whom to sell it, and how to
produce it efficiently) which takes
advantage of the organizations
strengths and opportunities while
mitigating its weaknesses and
avoiding external threats.

The ability to establish
strategy implementation
stages.
External scans (e.g. five forces analysis, PEST, etc.).
Internal scans (e.g. value chain analysis, resource/capability analysis, etc.).
Alternative organizational strategies (e.g. cost leader, differentiation, joint venture, merger/acquisition, organic growth, etc.).
Scenario/sensitivity analysis.

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CMA Competency Map

F1. Strategic Management (continued)

CS-1:
Acquisition
CS-2:
Basic Proficiency
CS-3:
CS-4:
Mastery
The ability to describe the
steps in the strategy
implementation process
for a given organization.
The ability to identify and
select the appropriate set
of financial and non-
financial resources to
enable the
implementation of a
strategy for his/her
organization.
The ability to design a
series of steps to align
financial and non-financial
resources in his/her
organization.
The ability to evaluate
framework for the
alignment of financial and
non-financial resources,
including functional areas,
and recommend changes.
1.3 Strategy implementation
Aligning the organizations
resources and success factors to
ensure accomplishment of the
strategy.

The ability to establish an
evaluation process for
strategic performance.
Organizational structure (simple, divisional, matrix, etc.).
Management control framework (shared values, code of conduct, measurement and incentive systems, etc.).
Corporate social responsibility strategy.
Organizational culture.


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CMA Competency Map

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 the evaluation of internal controls, the application of risk reduction strategies, and other
governance activities.

CS-1:
Acquisition
CS-2:
Basic Proficiency
CS-3:
CS-4:
Mastery
The ability to document
the information flow in
functional areas within a
given organization and
identify control
deficiencies.
The ability to analyze the
flow of information in
his/her organization and
identify control
deficiencies.
The ability to suggest
improvements to correct
control deficiencies in
his/her organization as
well as design and
implement new processes
and systems of internal
control.
impact of control
deficiencies on the risk
profile of his/her
organization.

2.1 Internal control Evaluating
internal control processes from a
risk management perspective.

The ability to set
acceptable risk levels for
evaluate alternative risk
management initiatives.
Process flow diagrams for functional areas (e.g. sales, accounts payable, accounts receivable, treasury management, etc.).
Correction of control deficiencies in established processes (e.g. with respect to segregation of duties, data entry, and output quality).
Design and Implementation (e.g. process re-engineering, new internal control systems, etc.).
Aligning incentives with chosen risk levels.


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CMA Competency Map

F2. Risk Management and Governance (continued)

CS-1:
Acquisition
CS-2:
Basic Proficiency
CS-3:
CS-4:
Mastery
2.2 Enterprise Risk Management
Evaluating the organizations
strategies from a risk
management perspective.

risks associated with a
given organizations
strategies.
risks associated with
alternative strategies for
The ability to develop and
implement appropriate
strategies, taking into
consideration the risk
profile of his/her
organization.
The ability to assess and
recommend changes to
his/her organizations risk
management strategies,
taking into consideration
the changing business
environment.
Risk levels related to the organizations strategic objectives, acceptable risk levels, and policies and procedures for reducing risk.
Shifts in the external environment that impact the organizations exposure to risk.
Changes in the operating environment that impact strategic risk.
Strategy formulation and control systems.


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CMA Competency Map

F2. Risk Management and Governance (continued)

CS-1:
Acquisition
CS-2:
Basic Proficiency
CS-3:
CS-4:
Mastery
The ability to test for
compliance of activities
with a given set of
strategies; the ability to
identify, research, and
document both existing
and emerging external
compliance issues.
analyze current
governance issues as
well as the potential
impact of emerging
issues on his/her
organizations reporting
requirements
The ability to prepare
documents (e.g. the
MD&A) that comply with
the external reporting
requirements for his/her
organization.
The ability to develop an
information framework to
comply with the range of
regulatory requirements
applicable to his/her
organization.
2.3 Governance Assessing the
organizations activities with
respect to the appropriateness
and achievement of its strategies
as well as organizational
compliance with established
regulatory guidelines.
The ability to establish a
code of conduct and
ethical values for his/her
organization and
incentive schemes that
promote compliance.
Compliance with current and emerging requirements (e.g. compliance testing with respect to strategic initiatives and regulatory pronouncements,
documentation and research of emerging external compliance requirements).
Management incentives.
Code of corporate conduct and ethical values.

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CMA Competency Map

F3. Performance Management The ability to implement appropriate systems to support decision making, set
performance targets, and monitor performance with respect to target achievement. Performance management
focuses on managing both costs and revenues.

CS-1:
Acquisition
CS-2:
Basic Proficiency
CS-3:
CS-4:
Mastery
3.1 Cost Management Ensuring the
effective and efficient use of
organizational resources through
the application of appropriate
tools and systems.
The ability to define and
describe the attributes of
a given cost management
system.
attributes of the cost
management system in
implement a cost
management system in
and draw conclusions
about his/her
organizations cost
management system.
Product and service costing (e.g. job order, process, and ABC costing systems; allocation of indirect and joint costs, etc.).
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, etc.).
Planning and budgeting (e.g. operational and financial budgeting, capital budgeting, project management, etc.).
CS-1:
Acquisition
CS-2:
Basic Proficiency
CS-3:
CS-4:
Mastery
3.2 Revenue management
Managing the revenue stream,
using internal and external
sources of information, in order
to achieve the organizations
chosen value proposition.
The ability to define the
information that is
required to support the
value proposition for a
given organization.
information needed to
support his/her
organizations value
proposition.
The ability to determine
progress toward
achieving its value
proposition.
progress toward achieving
its current value
proposition and
recommend changes
where necessary.
Pricing of the organizations outputs.
Customer profitability analysis.
Competitive intelligence/benchmarking.


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CMA Competency Map

F4. Performance Measurement The ability to evaluate performance with respect to the organizations established
strategy and targets.

CS-1:
Acquisition
CS-2:
Basic Proficiency
CS-3:
CS-4:
Mastery
4.2 Individual performance
measurement Using incentive
and compensation systems to
align individual and
organizational goals

The ability to identify the
attributes of the incentive
and compensation
systems for a given
organization.
attributes of the incentive
and compensation
systems in his/her
organization.
The ability to identify
problems in the incentive
and compensation
systems of his/her
organization and propose
alternatives.
proposed improvements
in the incentive and
compensation structure of
recommend changes.
Various incentives and their respective effects (e.g. short- versus long-term effects, fixed versus variable pay, etc.).
Elements of the compensation mix (e.g. cash, stock, options, etc.) and the corresponding tax implications.
CS-1:
Acquisition
CS-2:
Basic Proficiency
CS-3:
CS-4:
Mastery
4.1 Organizational performance
measurement Measuring
progress towards the
achievement of strategic and
operational goals by developing,
implementing, and operating
performance reporting systems.

attributes of the
performance
measurement and
reporting system in a
given organization.
The ability to analyze and
interpret the output of
performance
measurement and
reporting system.
implement a performance
measurement and
reporting system for
performance metrics in
light of strategic and
operational goals,
evaluate performance
relative to those goals,
and recommend changes.
Responsibility accounting and transfer pricing.
Stakeholder analysis (e.g. non-financial measures, balanced scorecard, triple-bottom line reporting, etc.).

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CMA Competency Map

F5. Financial Management The ability to set financial objectives and manage financial resources and risk.

CS-1:
Acquisition
CS-2:
Basic Proficiency
CS-3:
CS-4:
Mastery
5.1 Financial Resource Management
Setting financial objectives and
managing financial resources.

process of establishing
financial objectives and
the principles of
managing financial
resources in a given
organization.
The ability to participate
in managing the financial
resources and in setting
the financial objectives
and goals of his/her
organization.
The ability to recommend
changes to his/her
organizations financial
objectives and lead the
management of financial
resources.
financial objectives and
ensure optimization of
financial resources.
Financial objectives and goals.
Organizational debt requirements.
Investment portfolios and financial instruments.
Buy versus lease decisions.
Pension assets.
Assessing 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).


June 2006 Final
24

CMA Competency Map

F5. Financial Management (continued)

CS-1:
Acquisition
CS-2:
Basic Proficiency
CS-3:
CS-4:
Mastery
5.2 Financial risk management
Analyzing financial risk to
maximize opportunities and
mitigate threats by assessing
financial risk in the external
environment, identifying and
evaluating operational funding
requirements, and developing and
recommending strategic financial
plans and forecasts.

describe financial risk
strategies for a given
organization.
The ability to analyze and
interpret financial risk
strategies that are
appropriate for his/her
organization.
The ability to design,
develop and implement
appropriate financial risk
strategies for his/her
organization.
and improve the
effectiveness of his/her
risk strategies.
Sources of capital (e.g. public versus private financing, debt versus equity financing, etc.).
Financial strategy.
Legal corporate form.
Type of investment (e.g. direct investment, outsourcing, strategic alliance, etc.).
Impact of tax on finance and investment decisions.
Strategic business plans and forecasts (e.g. new markets/products, mergers and acquisitions, joint ventures, and strategic alliances).


June 2006 Final
25

CMA Competency Map

F6. Financial Reporting The ability to understand, produce, and analyze the information disclosed in an
organizations financial statements. Financial reporting focuses on the needs of external parties such as
shareholders, creditors, and regulatory agencies.

CS-1:
Acquisition
CS-2:
Basic Proficiency
CS-3:
CS-4:
Mastery
6.1 Financial statement preparation
Producing accurate financial
statements in compliance with
GAAP and regulatory
requirements by efficiently
managing and adapting
financial accounting systems in
response to current and future
developments.
The ability to understand
GAAP and other reporting
requirements, describe
the components of
financial statements, and
prepare a set of financial
statements for a given
organization.
The ability to prepare and
analyze his/her
statements.
implement a financial
reporting system in his/her
organization.
financial reporting system
and assess improvement
strategies.
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 Generally Accepted Accounting Principles (GAAP) and regulatory requirements.


June 2006 Final
26

CMA Competency Map

F6. Financial Reporting (continued)

CS-1:
Acquisition
CS-2:
Basic Proficiency
CS-3:
Advanced Prof.
CS-4:
Mastery
6.2 Financial analysis - Evaluating
performance and risk by using
benchmarks, ratios, and trend
and comparative analysis.
apply methods of financial
statement analysis for a
given organization.
financial condition from
the financial statements.
analysis of his/her
condition and draw
appropriate conclusions.
The ability to assess the
analysis of his/her
condition and recommend
appropriate changes in
strategy.
Financial benchmarks.
Comparing performance to budgets.
Financial ratios.


June 2006 Final
27

CMA Competency Map

E1. Problem Solving and Decision Making Innate analytical and problem-solving skills and the capacity for
innovative and integrative thought, as well as the ability to connect parts and wholes, identify and manage
priorities, and adopt a broad view.

CS-1:
Acquisition
CS-2:
Basic Proficiency
CS-3:
CS-4:
Mastery
The ability to collect and
analyze data, generate
preliminary alternatives,
and propose a solution to
a given problem.

The ability to collect and
analyze data, generate
preliminary alternatives,
and propose a solution for
a defined problem in
his/her workplace.

The ability to generate
and review alternatives,
establish decision-making
criteria, perform a risk
analysis, and recommend
solutions for his/her
organization.
The ability to define a
problem for his/her
organization, review the
problem-solving process,
mentor the efforts of
others, approve a solution,
and ensure its
implementation.
The ability to examine
hypothetical business
cases and make
decisions.

The ability to make and
implement short-term (i.e.
daily to monthly) decisions
involving his/her position
or workgroup.

implement medium-term
(i.e. monthly to yearly)
decisions involving his/her
department and other
functional areas.
implement long-term
decisions involving his/her
organization and its
external environment.

Problem solving and decision
making Using a systematic
approach for problem solving and
applying integrative thinking,
judgement, and stakeholder analysis
to decision making.
In general, the scope of
these decisions is
comparatively narrow,
with nominal effect on
others.
In general, the scope of
these decisions is
comparatively narrow,
with nominal effect on
others.
These decisions are
departmental in scope and
affect others in the
organization.
These decisions are at an
organizational level and
affect others both within
the organization and in the
external environment.
Strategy formulation.
Risk assessment.
Mergers and acquisitions.
Development of organizational structure.
New product development.

Market development.
Investment decisions.
Incentive structure.
Budget formulation.

June 2006 Final
28

CMA Competency Map

E2. Leadership and Group Dynamics The ability to work in, build, and lead teams. This involves skill in such areas as
organization, goal setting, collaboration, process management, coaching, mentoring, empathy, flexibility, negotiation,
and change management.

CS-1:
Acquisition
CS-2:
Basic Proficiency
CS-3:
CS-4:
Mastery
The ability to recognize
opportunities consistent
with organizational goals
and take the initiative to
act on such opportunities.

The ability to lead
individuals effectively
within his/her functional
area.

The ability to mentor
others in the development
of leadership skills,
delegate effectively, and
implement change
consistent with the culture
of his/her organization.

The ability to lead by
example as an effective
member of his/her
organizations executive
team set strategic
direction, align human and
non-human resources,
evaluate organizational
culture, and lead change.
Leadership and group dynamics
Achieving organizational goals
through individual action and team
efforts.

The ability to work
effectively as a team
member, making
appropriate personal
contributions to the quality
of overall team
performance.
The ability to lead single-
function teams, assigning
appropriate tasks and
taking responsibility for
team outcomes.

The ability to construct
and lead cross-functional
teams, assigning major
tasks, leading effective
team meetings, and taking
responsibility for the
overall outcomes.
team and committee
structures of the
organization, examine
information flow, and
evaluate overall team
outcomes.
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.


June 2006 Final
29

CMA Competency Map

E3. Professionalism and Ethical Behaviour The ability to operate with honesty, integrity, credibility, self-confidence,
self-control, organization, attention to detail, and independence as well as the ability to cope with ambiguity, identify
conflicts of interest, exercise due diligence, protect the public interest, adhere to the rules of professional conduct, and
enhance the reputation of the profession.

CS-1:
Acquisition
CS-2:
Basic Proficiency
CS-3:
CS-4:
Mastery
The ability to develop the
inherent qualities and
acquire the
demonstrable behaviours
that are critical to
professionalism and
ethical conduct.

The ability to
demonstrate appropriate
professional and ethical
judgement in making
decisions within his/her
organization.

The ability to recommend
changes to his/her
organizations code of
conduct.

and monitor his/her
organizations code of
conduct and whistle
blowing policies as well
as mentor others in the
application of the code
and related policies.
Professionalism and ethical behaviour
Developing the inherent qualities and
acquiring the necessary skills that result
in professional and ethical conduct.
Inherent qualities: personal integrity and
honesty, organization, self-control, self-
confidence, attention to detail,
credibility, an independent nature, the
ability to work with ambiguity, etc.
Demonstrable skills: identifying conflict
of interest situations, protecting the
public interest, exercising due care and
diligence, protecting confidentiality of
information, demonstrating professional
courtesy, enhancing the professions
reputation, adhering to the rules of
professional conduct, mentoring others,
etc.

potential professional and
ethical conflicts in a given
situation and commit to
the CMA Code of
Conduct.

potential professional
and ethical conflicts in
his/her organization, and
commit to the CMA Code
of Conduct.
resolve professional and
ethical conflicts in his/her
organization, and commit
to the CMA Code of
Conduct.
resolve professional and
ethical conflicts in his/her
organization, and commit
to the CMA Code of
Conduct.
All applications of functional and enabling competencies in all competency stages.

June 2006 Final
30

CMA Competency Map

E4. Communication (both written and oral) The ability to communicate effectively. This involves listening,
understanding, speaking and writing with clarity; the art of persuasion; and skill in communicating complex matters
to all levels of the organization.

CS-1:
Acquisition
CS-2:
Basic Proficiency
CS-3:
CS-4:
Mastery
The ability to use
appropriate
communication structures
and presentation
techniques with
confidence in a given
situation.

The ability to select
appropriate modes of
communication for
conveying financial and
non-financial information
effectively and confidently
to an audience within
The ability to develop a
wide variety of written
reports for his/her
organization that meet the
needs of specific
audiences.

existing communication
structures within his/her
organization and
recommend changes
where needed.

The ability to listen
effectively in a given
situation.

The ability to listen
effectively and facilitate
the expression of others in

The ability to demonstrate
respect for the views of
others and encourage
feedback within his/her
organization.
The ability to create a
communication structure
within his/her organization
that respects the views of
others and encourages
feedback.
Communication (both written and
oral) Understanding and
communicating effectively in a
variety of settings.
The ability to document
issues clearly and
concisely in a manner
appropriate to the
audience in a given
situation.
The ability to communicate
ideas clearly and concisely
in a manner appropriate to
the audience in his/her
organization.
The ability to make
effective presentations on
specific organizational
issues that meet the
needs of the intended
audience.
external communication
structures for his/her
organization that project the
desired organizational
image.
Communication of the vision and mission statement.
Management discussion and analysis.
Financial and non-financial reports.

Communication of the value proposition.
Strategic business plans.

Competency Map 05

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June 2006 Final

Competency Framework and Map

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