LEADERSHIPm

IoD/CIMA DIPLOMA INCOMPANY DIRECTION2005

SPECIFICALLY TAILOREDFOR CIMA MEMBERS ATBOARD LEVEL AND INSENIOR MANAGEMENTPOSITIONS

YOUR ROUTE TOCHARTERED DIRECTOR –THE PROFESSIONALQUALIFICATION FORDIRECTORS

the power of financial management in business

Over 3,000 business leaders have followed theIoD’s premier in-depth programmes, whichprovide the all round skills, knowledge andunderstanding essential for successfullydirecting a modern company from a strategicperspective.

Both organisations provide extensive supportto their members to help set the standard bywhich all directors should be measured.

THIS IS AN EXCELLENT AND UNIQUEPARTNERSHIP BETWEEN THE IODAND CIMA TO DELIVER THE HIGHESTQUALITY OF APPLIED TRAINING FOREXISTING AND ASPIRANT DIRECTORS.

PROFESSOR G ROLAND KAYE, CIMA PRESIDENT

Background

CIMA (the Chartered Institute of ManagementAccountants) supports over 136,000 membersand students in 155 countries. CIMA’soverriding objective is the ever greateremployability of its students, passed finalistsand members. Recognised as one of the twoforemost management accounting bodies inthe world, its focus on management functionsmake it unique. CIMA prides itself on thecommercial relevance of its syllabus andprogramme of life long learning, which arecontinually enhanced to reflect the latestdevelopments in business. CIMA isinternationally recognised as offering thefinancial qualification for business.

The Institute of Directors (IoD) currently hasaround 55,000 members. The IoD championsthe need for greater professionalism in UKboardrooms. Directors realise that highstandards of excellence and professionalism inthe boardroom are essential for businesssuccess and the IoD has been supportingdirectors, from various sectors, in theirprofessional development for many years.

Introduction

The debate about corporate governance hasmeant that companies need to ensuredirectors – both executive and non-executive– understand and comply with the law. It isvital they are up-to-date with best practiceand current business thinking.

CIMA’s CPD Policy and Product Frameworkhave two over-riding aims – to enhance theemployability of CIMA members throughouttheir working lives, and to place CIMA at theheart of the professional development of allAccountants in Business. Those who are, oraspire to become directors of organisations,are increasingly required to demonstrate thatthey have benchmarked their knowledge,understanding and expertise against leadingedge practice.

Against this background, the IoD and CIMAhave joined forces and created the IoD/CIMADiploma in Company Direction. Theprogramme reflects the issues and concernsfacing CIMA members today. It covers aspectsof corporate governance, directors’

responsibilities, and strategy on how toimprove business performance. It also providesdelegates with an excellent opportunity tomeet, network with, and learn from their peersin other organisations. Successful completionof the Diploma can lead to the IoD’sprofessional qualification, Chartered Director,which demonstrates the ultimate in directorprofessionalism.

ISS HAVE REVIEWED THE PROGRAMMEAND UNANIMOUSLY DETERMINEDTHAT IT MET WITH OUR STANDARDSOF ACCREDITATION. AS A RESULT, THECOMPANIES WITH DIRECTORS WHOATTEND THIS PROGRAMME WILL GETAN UPWARD ADJUSTMENT TO THEIRGOVERNANCE RATING.

INSTITUTIONAL SHAREHOLDER SERVICES

The Chartered Institute of Management Accountants26 Chapter StreetLondon SW1P 4NPUnited Kingdom

T. +44 (0)20 8849 2251F. +44 (0)20 8849 2450E. cima.contact@cimaglobal.comwww.cimaglobal.com/professionalqualifications

The Diploma in Company Direction

Benefiting from the experience the IoD hasamassed from delivering successfulprogrammes for over 20 years, the Diplomais designed to cover the key areas in whichdirectors and leaders must be competent. Itexplores the fundamental differences betweenmanagement and direction.

On successful completion of the exam,participants will be awarded the IoD/CIMADiploma in Company Direction. Onceachieved, candidates can then pursueChartered Director status via the IoD.Further details about becoming a CharteredDirector can be found later in the brochure.

The Diploma in Company Direction is aimed atall those responsible for providing strategicleadership and is designed to enhanceparticipants’ ability to:

• Fulfil their roles effectively, efficiently andconfidently.

• Apply skills and knowledge to improvebusiness performance.

• Create a wider understanding of the corporatepurpose.

• Gain a common set of business principles andvocabulary.

• Create a network of peer level delegates.• Adopt a structured approach to succession

planning and benchmarking.

ACHIEVING THE DIPLOMACOMPLETION OF EIGHT MODULESAND A PASS IN AN EXAM ACHIEVESTHE DIPLOMA IN COMPANYDIRECTION AND SATISFIES ONE OFTHE CRITERIA IN ACHIEVINGCHARTERED DIRECTOR STATUS.

CHARTERED DIRECTORSUCCESSFUL COMPLETION OF APROFESSIONAL REVIEW RESULTS INTHE AWARD OF CHARTEREDDIRECTOR.

Diploma in Company Direction – structureand content

The Diploma is structured as a series of eightfacilitated courses, ranging from one to threedays, comprising 15 days study in total, whichis to be taken over a period of 9 months.The programme is designed to provide acomprehensive review of the areas in whichstrategic leaders must show competence: roles,responsibilities and legal liabilities of directors,finance, strategy, marketing, people, decisionmaking and change.

One of the key elements of the Diploma is the way in which learning is delivered. Theprogramme is designed to be highly interactiveand concentrates on giving participants a realunderstanding of the issues under discussion.The study group will be kept deliberately small to facilitate a high quality learningenvironment. As a result, places will be strictlylimited. Enrolment also gives participants ayear’s membership of the Institute of Directors.

The course tutors encourage full involvementand are flexible in their approach, respondingto the dynamics and needs of the group as awhole. Their aim is to provide participants withthe awareness they need to fulfil their learningresponsibilities and to help delegates achievesuccess in a practical and applicable way.

Upon being awarded the IoD/CIMA Diploma inCompany Direction, candidates may pursueChartered Director status.

Course profiles

The Role of the Company Director and theBoard

The Role of the Company Director and Boardwill explain how a board should operate,the director’s personal and collectiveresponsibilities, duties, key tasks and legalliabilities. It will also detail why directors andboard meetings are different from managers,executives and their operational meetings.Key learning outcomes are:

• Understand key duties, roles andresponsibilities of directors, corporategovernance and the board’s role.

• Distinguish the crucial differences betweenmanagement, direction and ownership.

• Understand how to help improve boardeffectiveness.

The Director and the Law

The Director and the Law is an exploration ofthe legal duties, responsibilities and liabilitiesof a director. It will explain the importance ofunderstanding the legal requirements made ondirectors as well details of the law itself. Keylearning outcomes are:

• A detailed knowledge behind the defining ofthe legal status of a company.

• An understanding of the legal duties andliabilities of individual directors and the board.

• An awareness of the disclosure of informationneeds and associated legal requirements.

Finance for Non-Financial Directors

Finance for Non-Financial Directors aims toemphasise and develop an understanding ofthe role of finance in supporting the agreedstrategies and in monitoring and controllingperformance. Key learning outcomes are:

• Evaluate the sources of finance available andtheir relative advantages.

• Understand and interpret the terminology usedin finance.

• Know how to compile financial statements inaccordance with accounting principles andstandards.

• Distinguish between management accountsand the statutory financial reports of acompany.

• Evaluate and monitor the financial health of abusiness – spotting the warning signs.

• Develop project appraisal skills usingdiscounted cash flow techniques.

Strategic Business Direction

Strategic Business Direction is designed todevelop an understanding of the role ofstrategy in defining and agreeing the futurepotential of the organisation and helps developskills in strategy formulation, implementationand management. Key learning outcomes are:

• Evaluate the roles and responsibilities instrategic thinking, analysis, choice andimplementation.

• Understand the board’s role in defining thepurpose of a company, how that should beestablished and developed and the vision,goals and values of a company.

• Manage the relationship between businessstrategy, functional strategies and tacticalplans.

• Develop strategic thinking tools.• Understand and assess the strategic options

using suitability, feasibility and acceptabilitycriteria.

• Develop risk assessment skills associated withthe identification of strategic opportunitiesand the setting of strategic objectives.

• Manage the relationships between strategy,structure and systems.

Effective Marketing Strategies

Effective Marketing Strategies provides anoverview of the principles of marketingstrategy, looking at why marketing isimportant, how marketing strategies aredevised, implemented and controlled in orderto create customer value and improve thecompany’s market performance. Key learningoutcomes are:

• An understanding of the role and responsibilityof the board in determining marketing strategy.

• An appreciation of the dynamics of the marketand how to determine a company’s position.

• How to evaluate and assess appropriatemarketing tactics and how to select the rightones.

IGNORANCE OF THE LAW IS NOEXCUSE! AS DIRECTORS IN OURBOARDROOMS, WE EACH HAVE THE DUTY TO PLAY A BROAD ‘NON-SPECIALIST’ ROLE, FOR WHICHWE MUST KEEP OURSELVES ABREASTOF ONGOING BEST PRACTICE.

CHARLES CLAYTON, C DIR, FCMA, COMPASS GROUP

People Mean Business

People Mean Business explores the issues ofaligning human resource strategies to businessgoals. It looks at the professional frameworkswithin which directors can enhance theinvestment made in people, so adding value tothe business. Key learning outcomes are:

• Re-assess and align human resource policiesand practices in the light of corporate strategy.

• Understand how to gain competitiveadvantage through people.

• Implement effective reward, recognition andremuneration strategies.

• Implement and manage strategies for thedevelopment of people.

• Understand the implications of employmentlaw.

Effective Board Decision Making

Effective Board Decision Making looks atcollective decision-making by boards and topteams. It explores the methods of improvingthe effectiveness of the board’s decisionmaking. Key learning outcomes are:

• Understanding the strategic issues facing theboard.

• Developing skills to improve the effectivenessof decision making.

• Gaining control of decision making at boardmeetings.

• Appreciating the role of the director as astrategic thinker.

• Evaluating the implementation of decisions.

Leading and Directing Change

Leading and Directing Change examines howdirectors and boards provide direction andleadership in implementing major change. Keylearning outcomes are:

• Understand the most effective processes forimplementing change.

• Anticipate and counter resistance to changeand how to overcome barriers.

• Manage the board’s role in providing directionand leadership in implementing change.

• Evaluate the external and internal pressures forchange within companies.

Achieve Chartered Director Status

Individuals who are awarded the IoD/CIMADiploma in Company Direction, and who meetthe IoD practical experience criteria, may electto progress to Chartered Director, theprofessional qualification for directors.Influential companies and institutions nowsupport Chartered Director as the leadingdesignation for executive directors and non-executive directors.

Chartered Directors lead organisations,whether in the private or public sector, at thehighest strategic level. If you wish to continueyour professional development, enhance yourskills still further and fine-tune your businessperformance, completing the CharteredDirector qualification is the next step. Forinformation on Chartered Director visitwww.iod.com/chartered

ONE OF THE BEST WAYS OFIMPROVING LEADERSHIP STANDARDSIN THE BOARDROOM IS THROUGHTHE CHARTERED DIRECTOR AWARD,AND WE COMMEND IT TO EVERYONEWHO ASPIRES TO LEAD IN BUSINESSOR ALREADY DOES SO.

INVESTORS IN PEOPLE

DEBORAH LE NOURY, C DIR, FCMA, INVESTEC ASSET MANAGEMENT

I WAS AWARE THAT THE RESPONSIBILITIESOF A DIRECTOR WERE VERY DIFFERENTFROM THE RESPONSIBILITIES OF AMANAGER, AND I WANTED MYCONTRIBUTION ON THE BOARD TO BETHE VERY BEST IT COULD POSSIBLY BE.

Where are the study days being held?

All study days will be held at CIMA, 26Chapter Street, London SW1. Details can befound from the CIMA website –www.cimaglobal.com. Study days commenceat 9:00 and finish at 17:00. Refreshments areavailable throughout the day including lunch.There is no additional cost for either lunch orrefreshments.

What does the exam involve?

The 3 hour exam consists of multiple-choicequestions, testing the candidate on the fullrange of the subjects studied as well as somefundamental cognitive skills. Several questionswill relate to a chosen case study.

A candidate must obtain an overall pass markin order to be awarded the Diploma. Thosewho do not reach the required percentage canretake the exam. In the event of a retake beingrequired, areas of exam weakness will beindicated, and a further exam fee is payable.

If I pass the exam do I become a CharteredDirector?

No. Passing the exam proves you have therequisite knowledge to apply for Chartered Director. To become Chartered, aprofessional review with the IoD will berequired. For full details of what is involvedvisit www.iod.com/chartered

How do I apply?

To request an application form please emailmarketing@cimaglobal.com. Once yoursubmission has been received and approved by the Programme Administrator, a letterconfirming acceptance will be sent, along withan invoice for the full amount of theprogramme.

Frequently Asked Questions

Who is eligible to do the IoD/CIMADiploma in Company Direction?

The IoD/CIMA Diploma in Company Directionis open to directors. It may also be availablefor other senior managers.

How long does the programme last?

The programme has been designed to becompleted within 9 months. The learningprocess requires that participants attend studydays, taken over the course of the year.

How much does the Diploma in CompanyDirection cost?

The IoD/CIMA Diploma in Company Directionis available to CIMA members at the specialprice of £6,500 (ex.VAT). This includes Diplomaand Chartered Director enrolment and tuitionfees, 12 months IoD membership, all coursematerials, refreshments and lunch on studydays as well as the exam fee. Applicants mustpay for the whole programme in advance.