FAP Finance

PERSONNEL COMPETENCY PROJECT

Page / Contents
- 1f - / Competency Matrix
- 1 - / Overview / Instructions
- 2 - / Overview / Instructions (cont.)
Attachments
- 3 - / Attachment I – Leadership Behaviors
- 4f - / Attachment II – Competencies
- 4 - / Attachment II (cont.) – Sub Competencies
- 5 - / Attachment III – Assessment Levels
- 6 - / Attachment IV – Available Resources

OVERVIEW

The FAP finance competency matrix assessment process is a result of the business need to ensure that FAP finance employees have the appropriate skills for their jobs. Key outcomes of the process should include:

  • Identification of strengths
  • Identification of areas of development
  • Understanding of available resources to assist in the development of competencies

The finance competency matrix should be used as a tool for the employee and supervisor to ensure that employee can develop him/herself to be able to perform effectively.

The competency matrix provides the capability to document a high level assessment of the employees Global Leadership Behaviors, as well as an assessment of the specific FAP finance competencies. The first part of section II of the matrix shows the 3 high-level groupings of the Global Leadership Behaviors – and attempts to show their "umbrella-like" governance over the specific finance competencies in the second part of sections II. The Global Leadership Behaviors should be kept in mind during the entire assessment process.

Please note that this tool is not meant to take the place of an LDEP, PR, or regular feedback between an employee and supervisor. Rather, it is a tool to help facilitate the development of FAP finance personnel – and help ensure the "right people are in the right jobs at the right time".

INSTRUCTIONS

Please refer to the actual matrix on the facing page (or an electronic copy – available from your supervisor) while reading the following instructions.

  1. Section I. – Personal Data

Fill in appropriate personal data using the drop down menus.

  1. Section II. – Global Leadership Behaviors

As discussed briefly in the Overview section above, the matrix allows assessment of the high-level leadership behaviors. These leadership behaviors can be thought of as the "umbrella" that covers all competencies and job functions – and as a necessity to effective job performance. The three high-level leadership behaviors (shown in the three ovals at the top of section II of the matrix) are:

  • Flawless Execution – Passion for excellence
  • Integrity – Behaves with honor and dignity
  • Relationship – Cares, develops, safeguards

The electronic copy of the matrix contains drop down menus containing one of 5 assessment levels appropriate for the leadership behaviors. Choose from one of the following 5 for each behavior:

  1. Ineffective
  2. Somewhat effective
  3. Effective
  4. Very effective
  5. Role Model

Please see Attachment I in this document for more information on the leadership behaviors, their definitions, and how to assess them.

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INSTRUCTIONS (cont.)

  1. Section II. (cont.) – The Competency Matrix

The competency matrix has been developed so that FAP employees can analyze and understand their competencies, and to help employees and their supervisors identify areas of potential improvement and development. It will also help management ensure the right people are in the right jobs at the right time.

Four "core competencies" have been identified for FAP finance – they are across the top of the matrix. There are also seven "sub competencies" down the left-hand side of the matrix. Please read Attachment II of this document prior to completing the competency matrix – it explains the competency / sub competency relationship and contains definitions of the competencies.

When you are ready to fill out the matrix, it is important to remember to think about all of your experience – not just experience from your current position. Thinking about your experiences, assess your level of competency for each of the competency / sub competency combinations in the matrix using the drop down menus. There are five possible assessment levels:

NE.No Experience

  1. Student (Acquire)
  2. Practitioner (Apply)
  3. Teacher (Shape)
  4. Leader (Guide)

Please see Attachment III of this document for additional information about the competency assessment levels.

Note: Don't worry if you do not assess yourself as IIIs or IVs in all boxes. Few (if any) people in the company would be able to do that. Some of the sub competencies are fairly specialized and you may have had little or no experience to develop that competency / sub competency combination.

Once you have finished, meet with your supervisor to discuss and consense on an assessment of your Leadership Behaviors and Competencies. Use the matrix to work with your supervisor to identify potential areas of development.

  1. Resources

Attachment IV includes a list of available resources. After you and your supervisor have consensed on an assessment of your leadership behaviors and finance competencies, review the potential training resources and use as appropriate to build and strengthen them.

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LEADERSHIP BEHAVIORS

INTRODUCTION

The 12 Global Leadership Behaviors are grouped into 3 high-level leadership behaviors. These leadership behaviors are not specific to FAP Finance – they are common across all organizations and functions within Ford Motor Company. The personnel assessment matrix accommodates evaluation of the 3 high-level leadership behaviors, but it is important to keep the 12 specific leadership behaviors in mind while progressing through the assessment process. The 12 leadership behaviors (and their appropriate high-level grouping) are listed below.

FLAWLESS EXECUTION – Passion for Excellence

Business Acumen – Know-how that moves the Company forward

Innovation and Technical Excellence – Discovers better ideas and applies expertise

Commitment to Quality – Applies a Six-Sigma mindset

Courage – Fights to turn dreams into realities

Drive for Results – Sticks with it to get the job done

Customer Satisfaction – Makes a difference for the customer

INTEGRITY – Behaves with honor and dignity

Demands the Truth – Holds self and others to the highest standards

Does the Right Thing – Maintains an enterprise view

Drives Diversity – Respects and values each employee

RELATIONSHIP – Cares, develops, safeguards

Develops Employees and Teams – Fosters teamwork

Connects with customers – Customer is Job 1

Community Commitment – Makes a difference for the community

For more information on leadership behaviors, go to HR Online:

  • Click on "Professional Development"
  • Click on "Leadership Behaviors"

One of the more helpful tools available at the leadership behaviors website is the "Scaled Leadership Behaviors from 360 Process" file. This file has examples for each of the leadership behaviors to help assess your effectiveness according to the following scale:

Ineffective / Somewhat Effective / Effective / Very Effective / Role Model

The 5 assessment levels shown above are options in the drop-down menu boxes for each of the high-level leadership behaviors on the personnel assessment matrix.FINANCE COMPETENCIES

INTRODUCTION

The personnel assessment matrix breaks up the finance functional competencies into 2 groups:

  1. Core competencies
  2. Sub competencies

The core competencies are higher-level, general finance competencies applicable to all Ford Finance professionals. The sub competencies tend to be more specific, and are often related to specific job functions within finance. They can be thought of as specific applications of the governing core competencies. As Ford Finance professionals develop expertise in the core and sub competencies, they are working toward improving their operations know-how and business acumen.

Each competency / sub-competency combination in the matrix contains a drop down menu that contains 5 options – I, II, III, IV, or NE (no experience). Additional details regarding the assessment levels are discussed later in this document.

The following two sections contain descriptions/definitions of the core competencies and sub competencies.

CORE COMPETENCIES
  • INVESTMENT DECISION ANALYSIS
  • Limited capital for new products, sourcing decisions, cost reductions, new businesses, mergers and acquisitions, etc. – limited capital needs to be distributed among markets
  • Knowledge of decision-making methodologies to analyze and make recommendations / decisions on new projects
  • Knowledge of Ford processes / formats for investment proposals
  • TARR, SVA, etc
  • BUSINESS AND FINANCIAL PLANNING
  • Thorough understanding of business conditions and trends in market
  • General understanding of financial metrics and their inter-relationships
  • Understanding of economic factors of the business – FOREX, Interest rate, GDP, NPL, etc.
  • Knowledge of tax environment and government regulation
  • Thorough understanding of Ford business plan processes and requirements
  • BUSINESS PROCESS CONTROLS
  • Understanding of business processes and controls to manage information, guide personnel, and facilitate decision-making
  • Ability to identify and analyze relevant risks to the achievement of objectives
  • Ability to monitor business processes to ensure effectiveness
  • Develop ability to influence organization structure and discipline
  • TOTAL COST MANAGEMENT / COST REDUCTIONS
  • "Total Cost Management" mindset
  • Stress importance of these efforts to bottom line – to finance and operations
  • Basic cost reduction tools and techniques
  • Basic knowledge of Manufacturing Cost Analysis
  • Knowledge of Ford cost reduction processes
  • e.g., design vs. non-design
  • Knowledge of and ability to leverage Ford resources – e.g., cost optimization, CRID database, etc.

FINANCE COMPETENCIES (cont.)

SUB-COMPETENCIES
  • (NEW PRODUCT) PROGRAM ANALYSIS AND CONTROL
  • Knowledge of Ford processes for product development, including:
  • FPDS financial deliverables
  • Incremental vs. fully-accounted profit analysis, key data required
  • Control processes / procedures
  • Common formats / governance process
  • PROFIT FORECASTING
  • Thorough understanding of Ford-specific income statement, balance sheet, and cash flow statement – including their interactions and how to use them to drive the business
  • Pfx system – help with understanding on financial statements
  • Use financial knowledge to work within Ford profit reporting system and forecast process / requirements
  • Knowledge of profit / variance analysis
  • NET REVENUE, PRICING, MARKETING STRATEGY
  • Thorough understanding of business / industry / competition in market – most highly developed by being in market
  • Understand Ford revenue management, pricing development process, and market equations
  • "Business advisor" role to Marketing and Sales organization
  • Ensure that strategy maximizes revenue and achieves corporate objectives
  • TAX AND LEGAL
  • Need understanding of local tax laws as well as international tax issues – particularly important in markets
  • Ability to identify issues surrounding duties, transfer prices, etc. and their implications on corporate objectives
  • If issues are beyond individual's knowledge, must know who to contact for more expertise – and understand when it is important to contact them
  • TREASURY
  • General overview / understanding of cash flow needs
  • Knowledge of cash / asset management
  • Knowledge of balance sheet management
  • Understand the relationship between cash flow, the balance sheet, and the income statement
  • Knowledge of exchange rates and other economic factors' effect on cash and income
  • If issues are beyond individual's knowledge, must know who to contact for more expertise – and understand when it is important to contact them
  • Knowledge of Ford “Rules of the Road”
  • FINANCIAL ACCOUNTING
  • Need to know accounting standards in market as well as basic knowledge of US GAAP
  • Understanding of accounting concepts and processes
  • Knowledge of Ford Finance Manual – and understand where to find it for reference
  • Knowledge of Account Reconciliation Principle
  • FORD FINANCIAL SERVICES
  • If FMCC personnel in the markets have reporting relationship with FAP, then necessary to have specific credit competencies
  • If no reporting relationship, general knowledge of Ford Credit processes and inter-relationship with Automotive group is essential
  • Knowledge of retail / wholesale financing market including risk management and residual / credit loss in those markets
  • General understanding of marketing and sales business process

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COMPETENCY ASSESSMENT LEVELS

INTRODUCTION

The personnel assessment matrix contains a drop-down menu for each competency / sub competency combination. There are 5 assessment levels, or "levels of competency", each of which is described in the Key Attributes section below.

KEY ATTRIBUTES

NE -- No Experience

  • No experience in the competency / sub competency combination

I -- STUDENT (ACQUIRE)

  • Work under close supervision
  • Willingly accept direction; acknowledge lack of status and experience
  • Cooperate with others as part of a team
  • Earn the trust of colleagues by delivering the basics
  • Exercise "directed" creativity and initiative
  • Perform well under pressure; “deliver” within time and budget constraints
  • Learn the culture, i.e., “how we work here”

II -- PRACTITIONER (APPLY)

Assume responsibility for a definable project, process, or for clients

Establish recognized expertise in an area of importance to the organization

Work independently/produce significant results

Renegotiate relationship with supervisor, from task direction to broad guidance

Develop credibility/reputation for getting things done

Demonstrate resourcefulness in solving problems and overcoming obstacles

Accept accountability for results

Build strong relationships with co-workers

III -- TEACHER (SHAPE)

Remain technically up-to-date

Broaden perspective and skills, helping others to see the "big picture" of the business and industry

Support others through their ideas, knowledge and insight

Develop co-workers, particularly junior colleagues, as a formal manager, idea leader, project leader, or informal mentor

Build a strong internal and external network

Effectively represent the team or work unit to other internal and external groups

IV -- LEADER (GUIDE)

Provide strategic direction to the organization

Influence important organization decisions/actions in response to key opportunities/threats

Lead change through improvements in how the organization operates (e.g., systems/processes)

Exercise power, formal and informal, and responsibility, for the benefit of the organization

Obtain essential resources

Sponsor promising individuals to test and prepare them for key roles in the organization

Effectively represent the organization to key external contacts

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AVAILABLE DEVELOPMENTAL RESOURCES

INTRODUCTION

The sections below contain a summary of developmental resources. It is important to note that this list should not be considered all-inclusive, but rather a starting point.

General Finance (Core Competency) Resources:

  • (Worldwide Finance home page – variety of links)
  • (Finance competencies development links)
  • (F@ST Website – variety of links)
  • (General Auditor's Office Training)
  • (Finance Manual)
  • (Cost Optimization / Cost Estimating – link to training)

New Product Program Analysis and Control Resources:

  • (PD Finance Website)
  • (Ford Product Development System Website)
  • (Product Milestone Paper Pro-formas)

Profit Forecasting Resources:

  • tbd url(s) for profit forecasting (PFx web page?)

Net Revenue, Pricing, and Marketing Strategy Resources:

  • tbd url(s) for marketing (suggestions from Gelinas?)

Tax and Legal Resources:

  • tbd url(s) for tax and legal (suggestions from Andy Warner?)

Treasury Resources:

  • (Treasury Website)

Financial Accounting Resources:

  • (Accounting Website – link to training)

Ford Financial Services Resources:

  • tbd ford financial url(s)

FAP Specific Resources:

  • (General Ford Asia Pacific Website)
  • (FAP Transport to Learning Website)
  • (FAP Finance Transport to Learning)

DGRESS1 / KNOSER FAP Finance Competencies – Rev2, 12/05/2002