Transparency in the age of Twitter

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John Stokdyk
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AccountingWEB.co.uk
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KPMG’s quotable chairman got the biggest reaction at the CGMA launch event by challenging senior finance executives to understand and embrace social media. John Stokdyk reports.

As the CGMA launch event meandered into a backwater about the role of transparency in management accounting, KPMG UK chairman John Griffith-Jones popped up with one of the most quotable comments of the day.

“I see my children on Facebook and Twitter - maybe this is the way forward for transparency in the future,” he said. “Maybe as CEOs we have to resort to the internet to get out of the trap of what’s secret and what’s in the open.”

The idea came as something of a shock to Rolls-Royce finance director Roger Tomlinson, who in spite of his forward-looking support for the new accounting qualification still belonged to the accountant as data gatekeeper school.

“Information on customers needs to be understood properly,” he argued. “Sometimes the financial numbers are difficult to understand and a lot of thought has to go into that. A free-for-all on Facebook would create a lot of problems.”

Griffith-Jones pointed out that the people coming into accountancy are “much less hung up” about their own on the Net, and have a similarly relaxed attitude to corporate information.

“Our people are on Facebook all the time. If we do something, it’s on the internet in a second,” he said.

“I can’t control what I communicate. If I make a mistake it’s used to circulate around the building. Now the spreading of that information is faster by a thousand times.

“I think you need to be more relaxed about what you keep back. All I’m saying is understand how [social media] works and that this is how your business will work in the future.”

Another CGMA panellist, SAB Miller non-executive director Helen Weir was more open to the Griffith-Jones hypothesis: “Transparency is going to happen, like it or not. But how are businesses going to use that trend to communicate better?”

According to Linda Cheung, a management accountant who set up Cubesocial.com last year to help organisations make better use of social media, the comments from Griffith-Jones and Weir make good soundbites because they catch the spirit of the moment - even if the people who made them aren’t doing a lot with the tools themselves.

“I do believe it’ll be just another way to talk. It’s unfortunate that professionals still talk about how to police it because that shows they’re still in a fear cycle. You don’t really have policing policies on how to use mobile phone or write emails.

“If you’re not seeing the upside, you’re missing half the perspective. Why not see it as way to communicate - and that you need to be thoughtful about how to use it?”

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20th Feb 2012 09:24

Changing the game

 

On the face of it, the dynamic world of social media and the traditionally conservative, structured world of accountancy seem poles apart. Tweeting, sharing multimedia content and collaborating online hardly sound like features that would add value for figure-hungry clients or the firms that serve them.

 

But just as the public is now being given more rights to information in their medical records, and can easily look up their credit rating, or bank/retail account status, clients of accounting services are demanding greater, more flexible access to their own business information.

 

Information services provision is now a product business, like any other. The knowledge that accountancy firms hold about their clients is of no value to anyone but the given customer, so they have nothing to gain by keeping this information locked up. By sharing it with the client, on the other hand, the firm has an opportunity to enrich the client relationship and promote additional services.

 

The investment required is minimal – simple iPhone or Android apps to provide information snapshots to clients’ mobile devices are easy to get up and running, allowing clients to see at a glance which invoices are outstanding, and so on.

 

To deny such content to clients who are now so accustomed to information freedom in just about every other aspect of their working and personal lives is to deprive them of full control over their businesses. In a fiercely competitive global market, what kind of service is that?

 

Kevin McLoughlin

UK Country Manager

Twinfield

 

www.twinfield.co.uk

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