From the President's Desk

By Terri Polley, FAF President and Chief Executive Officer
Winter 2016/2017

Accounting Leaders: The Next Generation

Companies, not-for-profits, and governments, through their accounting and financial reporting, provide users of financial statements with the information they need to invest capital, lend or donate money, or determine how public officials are spending tax dollars.

Better financial reporting results in better capital allocation decisions. Investors, lenders, and donors make better-informed decisions about where to invest their money. Bond holders and citizens can better assess the financial condition of their state and local governments.

More informed decisions inspire greater confidence in the capital markets, which ultimately strengthens our economy.

For that reason, accountants are entrusted with an important responsibility—namely, to provide our capital markets with the highest-quality information possible. It's a responsibility that requires more than just technical accounting expertise. It requires the ability to connect all aspects of the business, government, or not for profit, and tell its financial story with integrity and insight. In other words, it requires leadership.

So what does it take to become a great leader, particularly as an accountant?

"Accounting Leaders: The Next Generation" is our new video series in which we explore that question. We asked our stakeholders—ranging from seasoned leaders in the profession to those just entering the accounting field—about the qualities and characteristics that current leaders in the accounting profession possess. We also asked them about the skills younger accountants and students looking to enter the profession will need to become successful.

While leadership may be defined in different ways, most would agree that today's leaders have a responsibility to pave the way for their successors, and ensure that they have the needed skill sets to grow and develop as leaders.

So, this video series can be a resource for accountants—those who identify and mentor future leaders and those who aspire to become accountants themselves—to learn more about the profession and the skills it takes to succeed.

Over the next few months, we will post on the FAF website short videos that feature interviews with current and future accounting leaders. The videos will include insights from financial statement users, preparers, auditors, regulators, accounting standard setters, academics, and others representing a cross-section of our stakeholders.

The videos, which are a part of our strategic goal to discuss issues of importance to the profession, will examine the challenges facing the profession, and how current leaders can equip future leaders to be able to address them. Upcoming topics will include:

• The role of diversity—including gender, ethnic, and international/cultural diversity—in the development of future leaders
• The changing landscape of the accounting profession
• Advice to students looking into the accounting profession

The first video — "What Makes for A Great Leader?" features an array of accounting leaders discussing the qualities, characteristics, skills, and personalities that determine leadership in our profession.

When interviewing the video participants, I found a common theme—namely, they all believe that leaders possess "something extra" beyond technical accounting skills. This "something extra" can include:

Business skills—like having a compelling vision and purpose, the ability to organize and prioritize, and using a business lens when dealing with technical issues.

Softer skills—like having the ability to inspire, relating well to all types of people, applying critical thinking, and possessing curiosity and a sense of humor.

After we shut off the camera, there was plenty to think about and reflect on. This video is designed to answer some questions. We also hope it will be a catalyst to help our viewers begin to start a conversation about what makes a great leader, and ask follow-up questions.

For example, one question that came to my mind—where does that "something extra" come from?

If you believe that leaders are made—then the desire to learn, teach, mentor, listen, collaborate, and observe can help you progress on the path to leadership.

However, if you believe that leaders are born—then the ability to use your IQ, social intelligence, charisma, empathy, integrity, judgment, and self-awareness can play a large role in career success.

Perhaps a great accounting leader is one who can fuse the two together.

Regardless of how future accountants derive their leadership skills, it is obvious that the future of the profession is very promising. This is especially true if future accountants have or build the characteristics and qualities discussed in this video.

And that is good news not only for the accounting profession as a whole, but also for what we do here at the FAF, the Financial Accounting Standards Board (FASB), and the Governmental Accounting Standards Board (GASB). Because a strong accounting profession will continue to help us:

• Identify FASB and GASB candidates from varied accounting, financial, business, and academic backgrounds
• Hire experienced and knowledgeable technical staff members, and
• Appoint advisory group members who bring current and diverse perspectives to the standard-setting Boards.

In the end, that means that we all are doing our part to ensure the continued robustness of our capital markets, and serve financial statement users.

As always, I invite you to share your comments and suggestions on this video series or other issues related to the FAF and its standard-setting Boards at presidentsdesk@f-a-f.org. Please also join me in thanking the video participants for sharing their perspectives with us.