Financial Training Strategies in Government Departments and Agencies

Introduction

This paper has been produced by a working group of the Finance Training Network. Its aim is to cover the main considerations which need to be
addressed when designing a finance training strategy, including course content, delivery methods and timing. The paper also covers the obstacles which may arise, and draws on the lessons which departments have learned in the course of introducing financial training strategies.

2. The Finance Training Network was established in 1996, following Principal Finance Officers' agreement to proposals in the paper "Finance Training in the Civil Service". The Network has representatives from over 30 departments and agencies. This paper was commissioned by the Network following a workshop on financial training strategies held at the Treasury in April 1997.

Structure of  Paper

3. The paper is in three parts:

- first is a section which describes what a finance training strategy is, why finance training is important, and goes on to set out the main elements of a training strategy;

- second is a section on the possible content of a training programme for finance, who the main targets for training will be, what are the main means of delivering training, means of managing and coordinating a training strategy, how the training should be evaluated and points on the timing and "selling" of training;

- third is a section covering the possible obstacles to success, and some of the lessons which have been learned in departments which have run, or are running finance training strategies.

The terms of reference of the working group, and a list of its members are at the end of the paper.

General Points

4. The Working Group felt that this paper should be based on a series of checklists for those who are designing and introducing training strategies for finance and accountancy. But there are also pieces of text in some of the sections.

5. The Working Group also consider that it is worth making the following general points at the outset:

- first, it is vital that a training strategy for finance and accountancy should be treated as a coherent whole. This paper is aimed geared primarily
towards training for non-finance specialists, but a good strategy should encompass all training, from training for professional accountancy qualifications down to short awareness courses for non-financial managers. This has not always been the case in the past;

- second, a training strategy for finance and accountancy will have a greater chance of success if it forms part of the general training strategy for the department or agency, rather than existing as a separate activity;

- third, departments and agencies may want to consider at the outset whether to make a distinction between core training needs (which might be dealt with through a standard approach, and standard material), and specialised or unusual needs which can be dealt with separately;

- fourth, although many financial strategies are driven by a need to introduce new accounting systems, or a change in accounting methods (eg from cash to accruals), those designing training programmes may want to explain how accounting systems work at present, and describe those elements which will not change, as well as covering new developments;

- fifth, training has significant resource costs, both in terms of people and money. Resources will be a constraint in many organisations, and may be a determining factor in deciding on training methods and duration of training. So departments and agencies must consider resources early in the planning process, and get any necessary approvals.

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FINANCIAL TRAINING NETWORK NOVEMBER 1997

SECTION 1

WHAT IS A FINANCIAL TRAINING STRATEGY?

A Financial Training Strategy is a plan for the medium term (up to 3 years) which covers the means by which staff will learn and develop financial and accountancy skills necessary to do their jobs. The key elements are.

THE KEY ELEMENTS OF A TRAINING STRATEGY

- a needs analysis, covering the financial and accountancy skills and knowledge needed in the organisation;

- a skills audit to assess the extent to which those skills are already present;

- the identification of target groups for training and/or development;

- a policy on the methods for delivery of training (eg in house, or out source);

- a plan for publicity of the training strategy;

- a link to the organisation's competence framework, and any financial management standards which have been adopted within the organisation (eg Management Charter Initiative Unit 13) ;

- an estimate of the resources involved in delivering the strategy, both in terms of cost and staff time.

WHY HAVE TRAINING IN FINANCE AND ACCOUNTANCY?

Here are some of the reasons why finance and accountancy training must be an important part of any organisation's training and development plans:

- to improve the organisation's performance;

- to improve financial management;

- to improve management performance;

- because a new accounting system is being introduced and/or a different group of people will have access to the system;

- as part of a general drive to raise the level of competence in a number of areas;

- so that everyone has the same type of skills (eg after a merger);

- so that people can understand what they are being told by finance experts;

- to meet the needs of new policy initiatives;

- to meet the need of new management structures;

SECTION 2

This section covers the key issues and questions which need to be considered when planning formal training programmes.

WHAT WILL BE THE CONTENT OF THE TRAINING COURSES?

Content needs to be considered early during the planning process. Some departments which have decided to go to tender for training have given a
fairly broad statement of requirements with the aim of allowing tenderers some flexibility in proposing content. However, here are some key points:

- content needs to be discussed with finance managers internally;

- should match the competence structure (see the Financial Training Network paper "Financial and Accountancy Competences Framework" - issues in March 1997);

- may need to be modular, so that people can receive training only on those areas which affect their work;

- will depend on other system developments;

- should cover both knowledge and competence;

- should take account of the level of skills already in the organisation (eg via a skills audit or assessment by line managers);

- needs to be capable of being changed in the light of ongoing feedback and evaluation;

WHAT ARE THE MAIN TARGET GROUPS AND WHAT ARE THEIR TRAINING AND DEVELOPMENT NEEDS?

Any organisation is likely to have groups of people who need some understanding of financial and accountancy issues. These groups and their
(probably varied) requirements need to be identified. The following are possible groups:

- people in specialist finance areas;

- programme managers;

- project managers;

- senior management;

- support functions;

- budget holders;

- accountants;

- other users of financial information;

WHAT WILL BE THE METHODS OF DELIVERING TRAINING?

The delivery methods must suit the organisation, and may include a variety of styles and techniques. The following methods are the most common, and organisations should consider which is most appropriate.

- on the job training;

- direct training courses delivered in-house;

- direct training courses delivered by an external provider

- seminars;

- workshops

- written guidance;

- IT-based.

Other considerations on delivery

- will there be formal testing at the end of course - if so will it be unseen or "open book";

- which parts of the training will be mandatory and which voluntary?.

HOW WILL THE TRAINING STRATEGY BE CO-ORDINATED

- single co-ordinator, or working group(s), or both?;

- may need a project sponsor;

- consultation needs to involve both deliverers and customers;

- co-ordinators should review the match between needs and provision, review needs, review content of training;

- financial and accountancy training should be integrated with other training programmes.

EVALUATION

One of the key success factors for a training strategy will be effective evaluation methods. It is vital that action is taken to follow up points which
emerge from the evaluation. This should be set out in precise and focussed action plans, to include details of who has the responsibility for taking
action (eg the trainer; the manager; the trainee). Here are a few points on evaluation:

- there is a need for feedback at regular stages of the process;

- may be better to use a panel/discussion groups, as these will provide more useful material than feedback "happy sheets";

- there should be clear success criteria, and desirable outcomes so that the organisation can measure whether it has achieved its objectives.

- may want to include "front-end evaluation" (possibly through pilots) so that training can be "right first time"

- may want to make arrangements for post-development evaluation of individuals as a means of assessing the effect of training on their performance.

TIMING

Timing is another important consideration for those who are designing training strategies: train people too early, and there is a risk that the knowledge will deteriorate through passage of time or lack of practice; train people too late, and there is a risk that new systems and procedures will get off to a bad start. Getting timing wrong can also result in wasted or misused resources.

- may be sensible to phase the training: key issues first, then more of the "how" once people have thought about the issues;

- if the department is introducing new systems, training should be linked to implementation;

- various groups may need to be given priority;

- sensible to train managers first, both as a means of getting commitment to the training programme, and to achieve smoother transition to new
systems;

- if the training needs audit is being done as part of the annual appraisal process, the timing of the latter needs to be taken into account;

- it may be better to stage training, so that people have time to accumulate knowledge and skills;

- the programme could start with general awareness training, and then move on to more detailed areas;

- needs to be linked to implementation of new systems;

- need to plan for newcomers to the department;

SELLING THE STRATEGY

- selling needs to be related to the needs and responsibilities of managers;

- need to explain the benefits;

- needs to be done at a practical level;

SECTION 3

This last section covers the possible obstacles to success in introducing a training strategy and some of the key lessons which have been learned by departments and agencies. Before designing a training strategy, departments and agencies should consider whether the obstacles are likely to arise in their own organisations and, if so, how they can be tackled. In many cases, the obstacles can be avoided if organisations have dealt with the points in the checklists in the first two parts of the paper.

The key lessons section is drawn from the experience of a number of organisations. Again, many of these relate to points in other checklists. One key point, which all organisations mention, is the need to get visible commitment from the top of the office both to the strategy itself, and to the resources required to carry it through.

WHAT ARE THE POTENTIAL OBSTACLES TO SUCCESS?

- low regard for financial skills in the department;

- lack of knowledge about finance on the part of managers;

- poor targeting of training;

- no incentive to learn new skills;

- perceived lack of relevance to the job

- lack of support from key players;

- poor instructors and/or instruction material;

- other business needs taking priority, including other training programmes, and new initiatives;

- lack of availability of time to attend training;

- geographical factors - eg large number of small units;

- failure to link finance training to departmental programmes;

- federal structure of departments, leading to difficulties in coordination;

- fragile IT systems, which might disrupt training sessions.

KEY LESSONS LEARNED

- there needs to be a departmental commitment to training and development;

- finance training involves a major commitment of in-house resources: these should be evaluated at an early stage;

- need to take account of people's availability and other training commitments;

- there needs to be an analysis of the competences which staff need to do their jobs;

- finance training is not the same thing as accountancy training;

- get visible top level commitment (including attendance at courses etc);

- need commitment and involvement of users;

- need commitment and involvement of own finance team;

- finance specialists not necessarily the best people to teach people about finance - professional trainers are probably better;

- must be feedback mechanisms;

- training should not be regarded as a barrier, but as a means of doing the work better;

- allow sufficient time - avoid last minute rushes;

- too much detail in the strategy can hinder progress;

REMIT OF THE WORKING GROUP

To identify the considerations which need to be addressed when designing a finance training strategy for a department or agency and produce a paper for discussion by the Financial Training Network. The paper should identify issues which are relevant across Government, and provide departments and agencies with a structured framework for introducing a strategy. This work will build on the presentations and discussion at the Financial Training Network meeting held in April 1997.

Membership of Group

Valerie Archibald - Civil Service College

Keith Taylor - Ministry of Defence

Bob Tredgett - Department of Health

Phil Butlin - Department of Social Security

Tony Allum - Department of the Environment, Transport & the Regions

Duncan Slaughter - HM Treasury