Transformational Leadership for Accountants

Introduction

  • The presentation aims to share the value an accountant brings to the profession and the people around them.

  • The goal is to see a different light in the accounting profession.

Accounting: More Than Just Counting Numbers

  • Appreciation of being an accountant often boils down to counting numbers.

  • Accounting involves looking at the details of each transaction for a better appreciation of the whole.

  • On a personal level, it's about understanding where your money goes and whether it was worth it.

Connecting to the Topic

  • The real sense of being an accountant lies in looking back and evaluating the worth of financial decisions.

  • The presentation will explore how to appreciate an accountant on a global business scale.

Session Objectives

  • Understand theories about leadership (transactional vs. transformational).

  • Identify principles and signs that demonstrate transformational leadership.

  • Recognize values that foster a transformational leadership approach.

  • Translate this approach for accountants and leaders in various contexts.

  • Reflect on the effort spent as a leader and whether it was worth it.

Global Business Challenges

  • The focus is on understanding global challenges and how they connect to a personal level.

Immediate Crisis: Inflation

  • Inflation is the speed at which prices go up.

  • A slowdown in inflation doesn't mean lower prices, but rather a slower increase.

  • The Philippines faces the challenge of importing inflation.

  • Working abroad often means higher salaries, but also higher operating costs for businesses.

  • Increased wages can lead to increased prices of goods and services, creating a cycle that fuels inflation.

  • Importing goods means paying higher prices due to premium labor, materials, and processes.

  • The Philippines is affected by imported inflation without corresponding increases in salaries.

  • Commodities like gasoline and metal ores are subject to higher prices due to higher costs abroad.

  • Pricing debts and fiscal costs further lessen purchasing power.

Supply Chain Disruption

  • The "last mile" is the connection of a product to the customer in a supply chain.

  • Consolidation of activities in the supply chain aims to achieve efficiency.

  • Centralized production and transportation are common examples.

  • Unique and niche needs require direct service based on customer requirements.

  • The Panama Canal's capacity has been a limiter for innovation in large-scale shipping.

  • Innovation led to larger ships that could carry more container vans.

  • Supply chain disruption is a global challenge due to varying demands and the need to decouple consolidated processes.

  • Many products now come from different parts of the world.

  • Innovations are still ongoing to bypass limitations like the Panama Canal.

  • The dispute in the West Philippines Sea is seen as a potential disruption in the supply chain.

Threat of Recession

  • Empty condominiums and real estate may indicate a looming recession.

  • Tariffs implemented by the US can lead to business cessation and relocation to other countries.

  • The Philippines has an advantage in labor arbitrage.

  • Overpopulation can become an asset if the population is converted to a productive one.

  • Labor market disruptions are primarily led by countries with significant resources.

  • India's population is projected to overlap China's by 2050.

  • The labor market disruption would shift different businesses across countries.

Warfare

  • Examples include the invasion of Ukraine by Russia and attacks between India and Pakistan.

  • Retaliation by European countries against Russia has financial implications.

  • Russia is a major source of crude oil, and disruptions affect the global supply.

Long-Term Megatrends

  • These trends have long term effects than daily affect.

Climate Change

  • Stronger typhoons and heat waves are examples of climate change.

Technological Disruption

  • Access to smartphones and artificial intelligence is widespread.

  • Technology can make jobs easier and increase efficiency.

  • Technology has disrupted the traditional workforce structure.

Demographic Shifts

  • Increased mobility has led to shifts in work and vacation patterns.

  • Demographic shifts also affect business decisions.

Social Instability

  • Social maturity can cause friction and differing views.

  • Differences in perspective can lead to instability.

Fracturing World

  • Challenges to jurisdictions and the pursuit of individual interests can fracture international agreements.

Albert Einstein Quote

  • "You can't use an old map to explore a new world."

  • Being a transformative leader means evolving your map and discovering yourself.

  • Leaders bring out a better version of you.

  • You cannot give what you don't have, so you should grow yourself to be an example for others.

Resetting as Leaders

  • Leaders need to pause and reflect on their map.

  • The reset involves looking back and asking where your time went.

  • This reset allows you to appreciate the things you are gaining and whether they are worth the sacrifice.

  • Is the lemon worth the squeeze? (Effort vs. Result)

Leadership Theories: Transactional vs. Transformational

  • Jennifer Wilson's interview by IFAQ distinguishes between transactional and transformational leadership.

Transactional Leadership

  • Manager-focused: "I'm the manager, you do it because I said so."

  • Outlines objectives and tells people what direction to head.

Transformational Leadership

  • Getting people to believe in what they need to do and be excited about it.

  • Getting people to understand the broader ideals and why we're doing it.

  • Firms are held back from creating new leaders because promotion is based on billing and client service, not people development.

  • Capacity is another issue, as nobody is freed up to develop new leaders.

Rewards and Acknowledgement

  • Traditional leadership is more transactional, while modern leadership is transformational.

  • Transformational leadership has always been there, but it has never been pronounced as much as now.

  • Rewards and acknowledgement are not inclusive of what will make you a transformational leader.

  • Transformational leadership focuses on the journey rather than just the outcome.

Kobe Bryant Example

  • Kobe Bryant played to learn, not just to win or not to lose.

  • The goal was to find improvement within themselves during the game.

Parent-Child Relationship

  • Parents would care about the values the child have more than anything.

  • Based on those values, it is what will carry them to further distances.

  • Translate those leadership to your workplace.

Deep Dive into Transformational Leadership

Transactional Leadership

  • Task-oriented, focusing on activities, roles, and compliance.

  • Relies on workflow processes, compliance, and structured policies.

  • There is a well defined reward system, but sometimes it is not enough.

Transformational Leadership

  • Relationship-oriented, putting the vision and purpose first.

  • Emphasizes employee development, creativity, and innovation.

  • Focuses on bringing out the best in individuals.

Employee Development

  • It boils down to us being humans, social beings.

  • The transformational leadership perspective of what you consider to be grows, but the core never changes.

  • You're not here to mold them based on what you think should be their roles. You are here to mold them so that they can actually bring out the best in them.

  • Recognizing those needs, recognizing those skill set, and then creating avenues that they could actually synergize.

  • With that approach, you can actually bridge what you eventually expected as a result.

  • Maximize productivity by maximizing the teams strengths and skillsets.

Thrive

  • If you pray for patience, you will be given a problem to be patient about.

  • Thriving is about learning and living, making it easier the next time you do it.

  • Instead of figuring things out yourselves, why don't you share what you've already figured out for those that are yet to figure those things out?

Four I's

  • Inspirational motivation, individualized consideration, intellectual stimulation, and idealized influence.

  • These are all designed to look at only individual being a special one, a unique one, and developing ways on how they can actually grow on the common ground across their teams.

Attributes of Transformational Leaders

  • Clear vision and collaboration.

  • Knowledge of profession and trends.

  • Maximizing competitive advantage: Know your strengths and improve on your weaknesses.

  • Always ask and look for feedback.

Be Appreciated

  • Not everyone is a baker simply because they love it

  • You need to be appreciated so that you know that what you do is valuable

  • The power of feedback is letting the other know that they are good at what they do.

Other Factors

  • Active listening.

  • Positive working environment: Balance criticism and appreciation.

  • Empowering leadership.

  • Accountability.

Framework

  • Technology, humans, and innovation at scale.

  • It's grounded that this is all for the development of the person, not the organization, not the meeting of the goals

  • Using what you have now, anticipating what happens in the future, all for the benefit of the development of your teammates or the human at the center.

Simon Sinek Quote

  • "Business is about people."

  • If you don't know your people, you don't know your business.

  • We have to be more aware of what our employees need in order to know our business needs.

Accountants Transforming into Leaders

  • Technology can be a great disruptor, but it can also be a great equalizer.

How Accountants are Relevant

  • In order to remain relevant, accountants will need to keep pace and embrace the changing dynamics linked to disruptive technology.

  • Accountants are needed on a much deeper, much relevant purpose because of technology.

What Does it Mean to be an Accountant

  • We have the knowledge of why businesses function as they are.

  • Skills sets and experiences have positioned us to lead the workforce.

Global Accountant Traits

  • Be a bridge in understanding what skillsets IT technicians lack.

  • We saved the lives of 3 orphans.

  • Audited because they wanted efficiency.

  • We have been branded by this company for the work ethic we provided as accountants.

Sustainability Traits

  • Making sure, you have achieved your goal, and that you have made sure the people of future generations are accounted for.

Ten small acts

  • Remagine yourself a ballerina, on a skateboard but with rubber shoes.

  • Don't be perfect.

  • Give them a reason to do it.

  • Manage your energy.

  • Choose joy and laughter.

  • Think like a child.

  • Be kind.

  • Do less to be more.

  • Active Listening.

  • Don't overthink this.

Conclusion

  • Understand what it means to become transformative.

  • Do I need to be a leader? No.

  • Give the best that you have to to someone that needs them and the value of that team will rise.