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Welcome back for a special bonus
episode of IMA's Count Me In podcast.

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As you know,

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this series is dedicated to bring you
the latest perspectives and learnings on

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all things affecting the
accounting and finance world,

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as told by the experts working in the
field and thought leaders shaping the

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profession. Well,

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IMA is pleased to announce that it has
continued to shape the profession through

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its CMA certification and has just
officially certified it's 100,000th.

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To celebrate this milestone
IMA has planned a month
long celebration to promote

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the impact the CMA has had on the
accounting and finance profession.

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To kick off the celebration, IMA's
brand content and storytelling manager,

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Margaret Michaels, spoke with IMA's
senior vice-president of certifications,

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exams, and constant
integration, Dennis Whitney,

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about the state of management accounting
profession and the trends impacting its

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future.

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Keep listening to hear this insightful
and celebratory discussion about IMA's

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CMA program.

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Great. Well thank you Dennis for
joining the Count Me In podcast.

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The first question is about the
certified management accountant

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or CMA program that was launched in 1972

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by IMA.

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Can you tell me a little bit about what
the impetus for creating a certification

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program like this was?

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Yeah sure Margaret, thank
you for having me today.

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I'm very happy to talk
about the CMA program. Yeah,

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it's interesting, back in the 1960s,

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IMA started seriously
thinking about a certification

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program.

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The impetus behind that was that
rightly so they believe that management

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accounting was a distinct profession
from public accounting and

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that the competencies
needed inside organizations

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were different from public accounting.
There was quite a bit of overlap.

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You know,

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financial accounting is necessary
both for public accountants

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and accountants working
inside the company, but there
are distinct competencies,

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cost management, financial planning,

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and analysis that are very important
for accountants working inside

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organization.

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So they identified that need
and they started the planning

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process to develop the CMA program.

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And it took several years of planning,

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but they had their first Board of
Regents meeting in the beginning of

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1972 and rolled out the first exam in

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December of 1972.

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Wow. So the CMA has a long
history and how does IMA

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ensure that the program is relevant
to the profession right now and

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evolves alongside it?

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Yeah,

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the CMA program has evolved
quite a bit over these,

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almost 50 years now. You know, when
we first developed the CMA in 1972,

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there was more of a
focus on cost accounting,

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but today the focus is more on a planning,

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analysis, decision support, and
also technology and data analytics.

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So the way we keep up with
the profession is, you know,

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we're constantly scanning the
environment, reading research papers,

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talking to CFOs, corporate controllers.

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But what we also do is every
six years or so, five to six,

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seven years, we do what's
called a job analysis survey.

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So with that,

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we identify the tasks that
management accountants do every

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day and what they need to know
to do their job efficiently and

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effectively. And so from that research,

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we're able to develop the content
specification outlines and the new exam

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and keep up to date with the profession.

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And how does continuing education
fit into the CMA program?

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Yeah, well, you know,

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it's interesting that you use the word
program because the CMA is a program.

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It's not just the exam.
When you finish the exam,

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you're required to do 30 hours of
continuing education every year,

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including two hours of ethics and the
reason for that is management accountants

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need to stay on top of the
latest trends in the profession.

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They need to develop new
skills, new techniques.

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You know, if you got your
CMA 20 years ago, you know,

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most of that knowledge is still relevant,

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but there are new skills and in order
to maintain your relevance on your

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job and add value to your company
and also help you develop your

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career, it's very important that
you keep your skills current.

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So that's why we have the continuing
education as part of the program.

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That makes sense.

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And I'm sure that continuing education
aspect appeals to a lot of professionals

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who are looking to stay current right now.

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In looking at the growth
of the CMA program,

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it seems as if the CMA has been growing

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most significantly in the last
five years with 50,000 CMAs

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added from 2016 to the
present. And for perspective,

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it took 50 years or from 1972 to

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2016 to reach the first 50,000 CMAs.

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So what trends do you think
are contributing to the CMA's

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astronomical growth in
the last five years?

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Well there are a couple of
factors that go into that.

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First of all, for most of our
history, we were pretty much a US,

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primarily a US certification.

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I mean, we are still a US certification,

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but our candidate growth
has expanded beyond the US.

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So about 10 years or so ago,

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we started seriously looking
to develop markets overseas.

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So we've seen tremendous growth
overseas. Now we're still,

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we're growing actually
quite well in the US,

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but we're actually growing
very, very well overseas,

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especially China. We've seen
tremendous growth in China.

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But we've also seen growth
in Europe, middle east,

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very strong growth in the middle
east over last 10 years. And India,

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India is a market now that's
really growing quite a bit.

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And also Southeast Asia, for example,
in the Philippines and Vietnam.

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So it's a global growth
and that's attributed,

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contributed a lot to the
growth of the program.

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The other thing is that we've,

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we really work hard to
communicate the value of the

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CMA. And for example, we have
every year now for the last,

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I'm not exactly sure how
many years, five years or so,

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we've been doing a commercial and an ad

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campaign where we make sure
that we tell the public,

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not just our CMA's and our candidates,

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but tell corporations through business
development and tell the public

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through marketing, how
relevant the CMA is.

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So that increasing exposure has
more people who know about the CMA

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and more people who realize
the importance of the CMA,

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particularly hiring managers.
So we're seeing, for example,

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more ads saying CMA preferred
and I think those are

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the reasons primarily
for the growth. Well,

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one other thing actually is a
bigger exposure on the university

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campuses. So more students are
interested in the program as well.

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That makes a lot of sense and
clearly now more than ever,

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hiring managers and organizations are
faced with challenges revolving around

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rebuilding post COVID and the talent

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war that we hear about where
there's fierce competition for

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CMAs in particular.

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So as organizations look to build

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a more enhanced digital
capabilities and transform their

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finance and accounting departments,

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how does the CMA specifically
prepare them for those types of

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challenges?

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Well the

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CMA has a very unique set of
skills. So, you know, for example,

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over the last year we all
had the terrible challenge

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of the pandemic. A lot
of companies struggled,

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but it really was the accountants
working inside organizations,

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many of them CMAs,

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who were able to help companies manage

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cash better, to implement
strong internal controls,

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to identify risks.

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And those risks also extend to information

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technology risks like cybercrime,

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cybersecurity is a big risk these
days and management accountants,

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CMAs, can help in identifying those risks
and identifying ways to mitigate those

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risks. So that's on the
one hand in maintaining

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a company, as stewards, good stewards
of the company, financial stewards,

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but also as we move out
of the pandemic into a

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new world where technology as you say,

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will be more and more part of our lives,

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particularly artificial
intelligence. Management accountants,

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CMAs in particular,

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have the ability to work
as strategic business

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advisors to senior management.
So they can sit at the table,

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help them to identify new
opportunities for growth,

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ways of adding value to the company,

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because they have the critical thinking
skills, the strategic insight skills,

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and these strong financial analysis
skills to help companies create

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competitive advantage and become
successful for the long-term sustained

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success for the long-term.

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And sustain success for the
long-term definitely involves strong

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competency in technology, data
analytics, and other emerging areas.

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And so the CMA exam has to
reflect those competencies

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and has to make sure that
people that earn the CMA are

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entering the workforce ready and able
to handle those types of challenges.

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And in 2020,

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ICMA introduced a revised CMA content

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specification outline to include
new competencies in technology,

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data analytics,

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and other emerging areas necessary for
management accountants to do their job.

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So what was involved in
updating the CMA exam?

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Yep. Well that's, you know, that's
a big job and it's, you know,

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it goes back to what I said a little
earlier about doing a job analysis survey.

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So, you know,

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we want to make sure that our exam
stays relevant and as you say, you know,

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technology is impacting all professions
and it's having a big impact

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on the accounting profession. So
technologies like RPA, blockchain,

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artificial intelligence,

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they are currently impacting the jobs and

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will do so even more in
the future. So, you know,

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we want it to reflect that in the
exam to make sure that our management

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accountants or our CMAs

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have the skills that are
needed now and in the future.

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So what we did is we surveyed all
of our members around the world,

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plus other management accountants
around the world too, you know,

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we had a very long survey. It's almost,

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it takes about 45 minutes to complete.

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So it's a big commitment of time
on the people who participate,

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which is a great benefit to us,

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but we asked them what they do on the
job basically. And when we did that,

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we saw that technology and data analytics
is becoming more and more and more

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important in their everyday
work. So that's why,

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what we did is we took those
results and work with the

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Board of Regents who did say,

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a committee of CMAs who
helped govern the CMA exam.

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We work with them to identify the
actual skills and the learning

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outcome statements that they
need to be up to date with those

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technology and analytical skills.

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So we created the new
content specification outline
along with the learning

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outcome statements, which go
into a lot more depth. And then,

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you know, from that there's
a lot more work too,

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because then we have to develop new
questions, which is a long process.

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We have to make sure that we
communicate the changes to

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our stakeholders, including our
candidates of course, and our CMAs,

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but also our review course providers.

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They need to know what's going to be
on the exam. So it was a big process.

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It really takes about, you know,

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from the beginning of starting the
job analysis survey to actually

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coming out with the new exam is
probably close to a two year process.

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That's a really long timeframe and it
certainly makes sense that you have to

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take into account all of those various
stakeholders that you mentioned.

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Earlier you talked about students and

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how they oftentimes just learn
about management accounting

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in either entry-level jobs, or maybe if
they're lucky a professor mentions it.

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And they then enroll in the CMA program

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and take the test and study
for it while they're in school.

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What is IMA doing specifically to

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help students and make
them workforce ready,

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able to succeed in an environment
where technology skills are as

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important and as foundational
as finance and accounting

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ones.

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Yeah, we're actually doing quite
a bit. We have, for example,

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we have the campus influencer program,

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and this is a program
it's managed by staff,

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but basically volunteers go
out and they talk to students.

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They give presentations to students
about a rewarding career in management

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accounting and also about
the CMA exam. We have a,

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every year we have what we call
the Student Leadership Conference,

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where students, really
from all over the world,

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come to learn about the
profession and in particular,

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they can go to sessions, for
example, on data governance,

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which is actually a section on the CMA
exam and they can learn about those

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skills and then apply them when they
go back to school in their classes.

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We also have,

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we just started what we're calling
a student series of bi-annual

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panel, where we invite
professionals, successful management

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accountants, mostly CMAs, or CFOs,

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or corporate controllers
and they talk about their

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career,

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their job and explain how interesting
a career it is and what skills they

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need to do their job. And I
mean, in terms of resources,

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it's a long list of
resources to talk about one,

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is the CMA.

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So we actually give scholarships
to students to take the exam for

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free.

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So each college and university
can give up to 10 scholarships to

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their top students and they can
take the entire exam at no cost.

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And that's been very successful. In fact,

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I think there's been close
to 16,000 scholarships

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granted,

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and these are granted
throughout the entire world.

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So it's been a very successful program.

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The thing about the CMA is you can
take the exam while you are in college,

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you know,

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generally should be junior or senior to
make sure you have the coursework and

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then you have seven years to get
the experience to earn the CMA.

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So it's a great way to

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show that you have mastered these
skills when you're looking for new jobs

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and including those technology
skills, which you mentioned, you know,

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and then also just with the
student memberships that we have,

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it's a very nominal fee
and you have access to

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our strategic finance magazine,

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which has articles on
technology every month.

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We have our research reports, you know,

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we did a recent report on

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RPA. So I think, you know,

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we do quite a bit for students
and the future, I think,

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is going to be bright for the CMA program
because there's a lot of young people

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interested in it and they're getting
the skills they need to have successful

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careers.

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It sounds like IMA puts a
lot of weight on making sure

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that there is a pipeline of
talent and grooming future leaders

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through all of these kinds
of student initiatives.

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So it makes perfect sense also
when we're celebrating the 100,000

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CMA to talk about the future as lying with

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undergraduate students and making
sure that we're preparing them to be

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workforce ready and able to handle
the challenges that will come with the

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future.

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Yep, absolutely. We

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look forward to the next 50 years. I
certainly won't be around for that,

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but I look forward to seeing much
success for the CMA program in the future

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and another 100,000 CMAs.

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This has been Count Me In,

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IMA's podcast providing you
with the latest perspectives
of thought leaders from

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the accounting and finance profession.

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If you like what you heard and you'd
like to be counted in for more relevant

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00:18:39,381 --> 00:18:40,940
accounting and finance education,

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visit IMA's website at www.imanet.org.