For several years, we have seen a strategic shift in the way that the chartered accountant plays a role in business. In earlier years, the accountant and/or the accounts department were viewed as a back-office function that only ran the numbers and submitted financial information. In today’s working environment, accountants are playing a far more strategic role when it comes to decision-making within the organisation.
This shift has called for a chartered accountant who plays an active role as a strategic business partner, a mentor, an advisor and/or coach, and in some instances even a counsellor. It also calls for a purpose-driven individual who appreciates that giving is better than receiving. John C Maxwell pens it clearly to say that, ‘Most people who desire success focus almost entirely on themselves, they usually think in terms of what they can get – in position, power, prestige, money, and perks. But that’s not the way to become truly successful. To do this, you must give to others.’
A new pressure for change agents – developing a ‘mentoring’ mindset
The CA change-agent already possesses the technical skills (IQ), a skill that is vitally needed in today’s environment. The added pressure now calls for an aptitude for essential skills linked to emotional intelligence (EQ), which is of equal importance. This is no more evident than the role accountants play within the small, medium and micro enterprise (SMME) space. As SAICA Enterprise Development (SAICA ED), an entity belonging to SAICA, we implement and manage entrepreneurial programmes for SMMEs. We have seen for our business requirements that we need a financial coach or mentor that portrays both the IQ and EQ attributes.
Consider the following scenario: you have a mentoring session and according to your meeting goals you intend to cover cashflow management. Firstly, the SMME is late attending the session. At the start of the meeting, you jump right into the session goals, yet the SMME’s response to your session is almost non-existent. As the mentor, you are becoming increasingly frustrated as the SMME appears not to be participating or not forthcoming.
What is your next move?
A mentor that is not displaying EQ may view the SMME as lazy and not bringing their part to the session. However, a mentor that has been intentional in developing these EQ skills and leadership will quickly pick up that the behaviour demonstrated by the SMME may be unusual and appreciates that the session may require a refocus of the conversation. What you do next as a mentor will be the difference between tearing someone down or lifting someone up. Leading someone is a privilege and your influence may affect someone’s life positively or negatively.
Adopting a ‘mentor’ mind-set
Our society needs CAs who are technically skilled finance individuals. Their expertise (IQ) will turn businesses around for the better. A growing SMME business leads to the possibility of greater job creation. Through their mentorship they give SMME business owners a hand-up; a hand-up for their employees and a hand-up for their own families – and by default a hand-up to society at large. As change-agents they are equipping the SMME − teaching them how to do a job− in other words, how to run their small business.
Our society also needs CAs who possess the necessary essential skills. Development is different: when you develop the person, you are helping them improve as an individual. This calls for our CAs to adopt a mentor’s mind-set. John C Maxwell gives us an easy guide to the next steps we need to take to adopt a mentor mindset. A quick synopsis highlights the following:
- Make people development your top priority:
- Commit yourself to developing people.
- Limit who you take along:
- Spend 80% of your time focusing your attention on the top 20% of people around you – avoid spreading yourself too thin.
- Develop relationships before starting out:
- Building relationships with people before starting on the journey together allows you to find out what type of travelling companions you are going to have.
- Give help unconditionally:
- Do not go into developing people with the idea of getting something out of it.
- Let them fly with you for a while:
- This requires on-the-job training.
- Put fuel in their tank:
- People cannot go far without the necessary resources (books, podcasts, etc) for their own continued growth.
- 7 Stay with them until they can solo successfully:
- Stay with them until they are ready to go it alone.
- Clear the flight path:
- Give your mentees clear direction and support.
- Help them repeat the process:
- Help them to repeat the process by developing others. We need to produce generational business leaders.
In closing, as SAICA ED, we have seen the positive effects our CAs have had on our SMMEs. It has been remarkable to watch and witness the CAs(SA) that we partner with taking our SMMEs on a journey of change for the better. There is no greater return than to know it is purpose-led when our CAs give and then see how their efforts are making a radical impact in the community at large through better SMMEs, the landing of new contracts and business opportunities and evident job creation.
In this month’s spotlight we are showcasing AM PhakaMalele Inc.
AM PhakaMalele Inc was established in 2008 with a core focus of accounting, tax, audit, and advisory services. Their passion lies in helping business owners use company data to make informed decisions.
‘I believe that a business needs accurate, reliable financial data to assist management to make informed decisions. This is especially critical in family-owned business where the difference between personal ambition and business objectives may be blurred,’ says director Tshepo Phaka.
For more info on AM PhakaMalele Inc check out their website: http://www.amphaka.co.za/.
Author
Jill Johnson, Senior Executive at SAICA Enterprise Development
