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ICMA Australia President Visits Manila

 

ICMA Australia President Derek Maullin, together with his wife, visited Manila on the second week of March 2010. Not so many people know that the Philippines is a country close to his heart because his wife is a Filipina herself, a Cebuana to be more exact.

 Despite the scorching heat of the sun, he still managed to visit many historic places in the capital, which are part of his itinerary, namely Luneta, Intramuros, and Malacañang. He also traveled around the Baclaran area, where he was mobbed by vagrants begging for alms. On his way to the other areas of the metropolitan, he was also shocked to see men taking a leak publicly. His wife told him that such a view is commonplace.

 Although Australian, he yearns for things that are genuinely Filipino. Primarily, he likes eating Filipino food. He also enjoys using the karaoke and “Magic Sing” for singing, which he said are not readily available in Australia. He is also planning to study the Filipino language as well. Even though his stay in the country was short, his wife can say that he truly enjoyed it. As what his wife always says to him, nothing can beat true Filipino hospitality. The other places that they plan to visit before leaving for Australia are the Greenhills Shopping Center and the Makati Central Business District.

 Last March 13, 2010, he gave an inspirational and enlightening speech to the participants, graduates, and members of CMA Philippines. This took place inside the Emerald function room of Crowne Plaza Galleria Manila situated at Ortigas Center. The attendees of the talk gave their full attention to Mr. Maullin as he discussed Predictive Management Accounting, a topic that is barely covered by management accounting courses in most countries, and should actually be given importance especially by management accounting professionals.

 

Quoting Mr. Maullin, he said “Call it Business Forecasting, the point with Predictive Management Accounting is it follows the rules of financial accounting, rather than some different set of constraints. I will not dwell on the detail processes available, other than I have enjoyed developing them extensively during the past 40 years of my own career and can attest to the merit of the exercise.”

 “The important things to remember:

1. The whole of business, balance sheet and KPI as well as the profit and loss account.

2. The accounting rules apply, not something different.

3. Keep the chart of accounts summarized and simpler than that used in the full detail of compliance work.

4. Learn how to harness the processing power of ODBC, SQLS, and data mining, to produce appropriate data summarized starting point.

5. Expect to go through multiply iterations before you get the formulas and detail balance right.

6. Expect more iterations before you get to work out how to ask sales and production personnel the right questions.

7. Remember as a forecaster you are trying to get a feel for the future, rather than achieve pinpoint accuracy. So accept that if your model is within 10% accurate when you have actual sales and production quantities, that is probably good enough.

8. The real win! Spend your time testing different opportunities and assessing different risks…that is here you will.”

 

“Add the greatest value for yours and everyone else’s efforts. And as a management accountant, that is what you are employed to do…to add values to the business outcomes.”