Good practice, a guide

How many times have you sat down to complete a task and thought, 'I am sure someone else has already done this somewhere'? The challenge then is to find it. In the end though, after a bit of searching you often give up and reinvent the wheel.

CPA Australia is currently working with organisations and members to develop a central database comprising analytical tools, case studies, documented procedures and template policies representing 'good practice' in the corporate sector. Our aim is to provide valuable assistance to members by accessing these good practices and helping you do your job more efficiently.

This initiative is part of the long-term commitment from CPA Australia to deliver value to members who work in a variety of geographic and business sectors. It demonstrates CPA Australia's approach to the 'we mean business' theme of recent advertising campaigns, and is designed to leverage off the knowledge of members. It is being sponsored by CPA Australia's board corporate committee and is being championed by Warren Saxelby FCPA.

'The title is deliberately 'good practice', not 'best practice',' says committee chairman Steven Lim.

'The idea is to take practices that have worked well but not get bogged down in debating what defines a best practice in any one area. CPA Australia has core competencies in issues leadership, professional development and information sharing. This project brings those together in a really practical and exciting way to support members and their organisations.'

The guide has been split into four key areas: external reporting and risk management, specialist functions, business strategy and value drivers, and general administrative procedures.

Each of these areas breaks down into many others, with the sources of information being widespread. An area such as capital management may cover:

Overview of capital markets
Tools for capital raising, including requirements of the Corporations Act
Relative cost of capital markets
Financial instruments
Calculating WACC
Balance sheet structure
Role of hybrids
On- and off-balance sheet financing

Organisations are committed to good practice but individuals do not have a lot of time to read in-depth articles and translate them into useful outcomes. The distinguishing feature of the guide is that it aims to provide practical tools to help people with their day-to-day work. It fills the gap between textbook and reality.

Organisations of all sizes have already committed to participate, from some of Australia's top 20 corporations, through to medium-size businesses. Participating organisations are asked to make their own existing good practices available to CPA Australia. All sensitive information is removed, with final documents being approved by participating organisations before publication on a CPA database.

There will be minimal work requirements for participating organisations, as the guide will only make use of existing documents.

A number of editorial panels have been established to provide resources to edit the material to make it suitable for general publication.

Organisations will benefit through having access to the database, which will document a wide range of good practice case studies, analytical tools, documented procedures and template policies. Some organisations have seen the guide as a good way to support their clients.

Paul Wappett, general manager development for CPA Australia, sees the potential for this concept to be extended into other sectors, such as the SME sector and public sector, once the model is established. 'It's an initiative that allows individual members to assist other members, and the profession generally, merely by sharing the good things they do in their organisations,' he says. 'It's a strikingly simple demonstration of the power of a professional association: members sharing great ideas. We're indebted to Warren for having the passion to bring the initiative to fruition a great example of an experienced member contributing back to the profession.

'CPA Australia is talking to a range of organisations about how to best ensure the continuing sustainability of the Good Practice Guide. Initial documents will be available on a restricted basis by the middle of 2007 and will be enhanced and expanded beyond this date.

We welcome the assistance of members and organisations who may have an interest in either contributing to the database or drafting or editing information to be included in the guide.

The contribution may be as small as a single policy that your organisation has successfully developed and implemented.

If you would like to know more about the Good Practice Guide and would like to explore how you or your organisation can be a part of the project, write to cfonews@cpaaustralia.com.au.