Global Passport for Success

Global Passport for Success By Jim Gurowka, CAE From a small U.S.-based certification 40 years ago to a mighty international passport, the CMA has truly become a global credential with active certified members in almost 100 countries. This represents phenomenal growth in a program this age. As economies continue to grow and become more international, finance and accounting professionals the world over have looked for a tool to help them and their companies grow and prosper on the international stage. For many of them, the CMA credential has been the answer. S e p t e m b e r 2 0 1 2 I S T R AT E G I C F I N A N C E 4 3

In fact, the growth of the CMA program outside the United States is a relatively recent phenomenon. It really only started in the 1990s when the exams became computerized and available globally through the Prometric testing platform. Prior to the conversion to computer-based testing, global growth was limited mostly to individuals who took the CMA exams in the U.S. and then moved to other countries. As exams became available outside the U.S., people started to hear about the CMA program, review course providers began to offer exam preparation courses, and chapters started to spring up to support new international members. Interest, exams, and stature started to grow for the CMA program in many countries. But the global success of the CMA program wasn t always assured. In the first several years, participation was slow. By 2001 (almost 30 years after the program was launched), only 10% of the new CMAs granted were to members outside the U.S. By 2012, this number had shot up to more than 60%. Don t forget that the number of CMAs granted in an individual country is still highest in the U.S., but CMA growth is highest outside the U.S. right now (see Figure 1). In addition, more than 75% of exams taken are taken outside the U.S. This growth stems from a remarkable tradition of excellence within IMA to cultivate a world-class standard that s admired globally, the ability of IMA volunteers and staff to grow the program in a strategic sense, and active members willing to advocate for the CMA program wherever they work. This growth is very positive for the profession and for those working in the profession wherever they live. Global salary surveys have clearly demonstrated the value of the CMA program to individuals well-being. Middle East salary surveys show that CMAs earn more than double the salary of similar noncertified professionals. In China, a recent salary survey showed that CMAs earn approximately 40% more than noncertified professionals. The fact that CMAs can earn substantially more than noncertified professionals in most regions of the world shows that the CMA adds considerable value for those obtaining the credential, no matter where they live. The ability of the credential to have this effect globally is a testament to the need for IMA to continue to increase the certification internationally and assist those in the profession. Middle East salary surveys show that CMAs earn more than double the salary of similar noncertified professionals. A Proud History Many people think that global growth is the result of a series of well-planned steps, good strategy execution, and sizable investment. For IMA and the CMA program, initial global growth just happened. It followed members. As CMAs and others in the U.S. moved to other countries, they promoted the program and encouraged management accountants to join. They set up chapters in South America, Europe, Asia Pacific, and additional markets, and the program began to grow slowly but surely. The emergence of Middle Eastern countries as important global trading partners and the need for members to enhance their educational background led many in the region to turn to the CMA program as a way to differentiate themselves and to make a difference in the companies they work for. As large-scale course providers such as Morgan International began to market and support the CMA credential, candidate numbers in the region increased to a point where there are now more than 1,400 active CMAs and almost 6,000 CMA candidates pursuing the credential. It s estimated that more than 30,000 people from the Middle East region have taken CMA exam preparation courses within the last decade. As the Middle East grew quickly, Europe continued its steady growth and interest. Led by the Netherlands and Russia, the CMA program became the go-to U.S.-based accounting credential in these countries. Again led by CMA review course providers (Vrije University in Amsterdam and Hock Training in Russia), the program continued to grow and attract finance and accounting professionals interested in elevating themselves and their career. Traditionally, these two locations have had the highest pass rates in the region and continue to promote, support, and train CMA candidates. These high-growth countries have now been joined by high-quality course providers in Switzerland and Turkey who have helped grow IMA membership in these diverse and important 4 4 S T R AT E G I C F I N A N C E I S e p t e m b e r 2 0 1 2

70% 60% 50% 40% Figure 1: Percent of CMAs Granted Outside the U.S. the next new frontier for IMA and the CMA program. Indian professionals share the same desire to improve themselves, and, though the market is very competitive, the value of the CMA program is translating into membership growth and CMA growth. IMA remains very excited about the prospects for this market. 30% 20% 10% 0% 2001 2002 2003 2004 2005 2006 2007 2008 2009 countries. As additional course providers and partners in Germany and Austria join the program, we expect membership to grow quickly there as well. Finance and accounting professionals in Asia Pacific have always had a long history of personal development, education, and desire for certifications. For IMA, Taiwan and Hong Kong led the way in developing CMAs. Based on that initial success, IMA conducted an environmental assessment and concluded that mainland China was at the right stage of its economic development to benefit greatly from the introduction of the CMA program to its finance and accounting professionals. Opening up the Chinese market has led to a desire among finance and accounting professionals in both multinational companies and Chinese state-owned enterprises to seek higher knowledge and professionalism. In many instances, this has led them to the CMA program. In this case, IMA has invested in the country, partnered with a very respected government agency (State Administration of Foreign Experts Affairs SAFEA), and built an extensive network of CMA course providers. The result has been a dramatic increase in membership and CMAs. Both have doubled in each of the last three years in China. While growth will eventually slow, it should still continue upward for the foreseeable future. The second-largest country in the world by population India represents 2010 2011 2012 An Exciting Future As exciting and dramatic as the growth has been in the past, the potential for CMA global growth in the future is unlimited. The former Soviet Union countries, countries in the Asia Pacific region, and those in Latin America have hundreds of thousands of accounting professionals for whom the CMA would be beneficial. It s estimated that there s a need for 300,000 or more management accountants in China alone. This represents a tremendous opportunity for IMA to help influence the profession in China and beyond. IMA s goal has always been to work with other associations and partners to grow the profession. Working with SAFEA, ACCA (Association of Chartered Certified Accountants), and other partners, IMA intends to raise the level of awareness of the profession in China and increase the body of research and literature related to management accounting there. As people become excited about the profession, they will enter the CMA program and become CMAs. As a mission-driven association, IMA is committed to increasing the capabilities of those in the accounting and finance profession and being a thought leader to all those interested in expanding their knowledge. IMA s commitment to this philosophy is nowhere more evident than in China. A commitment to serve the more It s estimated that there s a need for 300,000 or more management accountants in China alone. S e p t e m b e r 2 0 1 2 I S T R AT E G I C F I N A N C E 4 5

Figure 2: IMA Regions and Offices EUROPE OFFICE Staff: 2 Members: 2,100 CMAs: 824 Parts Written: 453 THE AMERICAS AND GLOBAL HEADQUARTERS Staff: 70 Members: 47,000 CMAs: 15,400 Parts Written: 2,225 MIDDLE EAST OFFICE Staff: 5 (MCI) Members: 8,600 CMAs: 1,370 Parts Written: 3,121 ASIA PACIFIC OFFICE Staff: 9 Members: 6,500 CMAs: 1,300 Parts Written: 3,608 than three million accounting and finance professionals in China, most of whom don t speak English but desire to improve themselves and the organizations they work in, led the ICMA Board of Regents to approve a translation of the CMA exam into Simplified Chinese. Based on the success of the old four-part exam in Chinese, the revised twopart exam is scheduled to be rolled out in December 2012. To complement the translated exam, the CMA Learning System and question bank have also been translated into Chinese, and there s a full Chinese IMA website at www.imanet.org.cn. Exam candidates can register in Chinese, obtain continuing professional education (CPE) in English or Chinese, and get customer service help in both languages (including ICMA assistance from Montvale, thanks to IMA s Chinese-speaking staff). They can also read Strategic Finance, Statements on Management Accounting, the IMA Educational Case Journal, and various research publications all in Chinese. In addition, they can attend CMA certificate presentation events to all new CMAs in China three times per year. While the CMA program is run from the U.S. office, everything is now available in Chinese and English. Management accountants in China can fully participate in the profession and enjoy all the benefits of being a CMA in their native language or in English. Is Russian, Arabic, or any other language next? It s too soon to tell. Any decision to translate goes through a rigorous evaluation process to determine need, impact, effect, and overall benefits of translation vs. providing only support tools in multiple languages. As the economies of Eastern Europe and Asia Pacific continue to compete on the world stage, the need for the value management accountants bring to the organizations they work in becomes critical for success. While there are CMA candidates and members in more than 122 countries, the numbers are relatively small in some parts of the world. IMA believes that there s no reason why CMAs shouldn t be present in large numbers everywhere. The profession isn t bound by geography but is tied together by a common bond of dedication to the profession and a desire to continually improve our lives. If the CMA can help bring this worldwide community together, then the community is better off. The CMA program in Latin America has had a long and varied history. Some of IMAs first and most successful international chapters were there. In the 1970s and 4 6 S T R AT E G I C F I N A N C E I S e p t e m b e r 2 0 1 2

1980s, IMA had chapters in Mexico, Columbia, Argentina, Peru, and Brazil (Sao Paulo and Rio), and CMAs were active in these markets. In the 1960s, IMA was busy developing an international strategy and a method of supporting those in the profession wherever they were located. In fact, the 1962 international committee identified Latin America as a prime area for IMA to expand. As the CMA program became established in the U.S., IMA began to promote the program through these international chapters. At one point in time, the CMA was translated into Portuguese for the Brazilian market. But over time, various economic issues and priority decisions saw these chapters slowly become inactive to the point where their membership has declined significantly. Nevertheless, IMA is still interested in Latin America and wants to grow the profession there. A partnership with the Brazilian Management Accounting Association (ANEFAC) is the first step toward encouraging the CMA program in Latin America. In fact, ANEFAC used to be the IMA chapter in Sao Paulo, so there s a rich history to draw on. As I mentioned earlier, the CMA credential has become a global passport for finance and accounting professionals worldwide to proudly say they are part of a family of more than 37,000 other CMAs in approximately 100 countries. Yet there s still so much more potential. To help grow the number of certified professionals and increase IMA s global reach, IMA has set up an extensive network of offices, partners, and course providers around the world that will continue to expand. The CMA credential intends to be the credential of choice for people everywhere. Expanding Through Partnerships Throughout this article, I ve mentioned IMA s partnerships with various organizations, which is one of the main ways IMA integrates the CMA credential into the local marketplace. Local or national associations, such as the Austrian Controllers Institute, Jordan Association of Management Accountants, Dutch Controllers Institute, Southern African Institute of Business Accountants, ANEFAC, Accountant and Auditors Association of UAE, Indian Cost Accountants Institute, and others, work with IMA to promote the profession and certification. In areas where the local association has a certification of its own, IMA works with it to offer the local certification to meet specific in-country needs and offer the CMA credential for those interested in an international certification. In areas where there s no local management accounting certification, IMA works with a local partner to promote and grow the CMA program. These partnerships allow the CMA program to thrive in other countries without having to compete with local partners. The program has really benefitted from IMA and great international association partners working together. Leveraging IMA s Global Footprint With offices in Montvale, N.J.; Zurich, Switzerland; Dubai, UAE; and Beijing, China; IMA can serve members on a 24- hour basis and provide member support in local markets, customized to local needs and responsive to local issues in a manner not possible at any other point in IMA s history. (See Figure 2 for some statistics.) The ability to address local concerns has allowed the CMA program to tap into the expertise of local partners and course providers in markets where there s an interest in finance and accounting certification programs. From having almost no presence in local markets five years ago, IMA now manages a network of 24 chapters, 10+ local partnerships with governments and other associations, and more than 125 CMA review course providers (using both IMA and non-ima learning materials) from its three international offices. As I indicated previously, course providers and partners are key to the program s ability to grow in specific markets because local knowledge and support help CMA candidates make more informed choices about study options that will help them pass the CMA exams. Local corporate awareness helps get the word out to employers about the CMA program, which assists in increasing CMAs employability. Growing the profession isn t a passive activity. IMA is now very active in ensuring that CMAs, wherever they are located, have access to members, staff, and support close at hand. What s Ahead? The CMA program is in a phase of rapid international growth. More finance and accounting professionals are taking the CMA exam than at any point in the history of the certification. Through partnerships, course providers, staff involvement, and a commitment to serve the community, IMA has positioned the CMA credential to be the goto credential for those in the profession. I can t overstate the value of a credential with a U.S. pedigree and international relevance. The best days of the CMA are ahead. SF Jim Gurowka, CAE, is vice president, international development at IMA in Montvale, N.J. You can reach him at (416) 616-3997; (800) 638-4427, ext. 1561; or jgurowka@imanet.org. S e p t e m b e r 2 0 1 2 I S T R AT E G I C F I N A N C E 4 7