UNIT CMI 706 Assignment: Finance for Strategic Leaders: The Role, Scope, and Impact of Finance

KEY INFORMATION FOR LEARNERS

Overview of assessment tasks

Each task in this assessment brief has been developed to enable you to evidence achievement of the learning
outcomes and assessment criteria for CMI 706: Finance for Strategic Leaders. Each of the assessment criteria must
gain a pass outcome for you to successfully achieve the unit.

Preparation for the assessment

 Before you begin the assessment brief please read the CMI 706 unit specifications thoroughly as only the content
related to the achievement of the assessment criteria will be assessed.

 Research the topics being assessed. Suggested reading/web resources are provided on the CMI 706 unit
specification. Your tutor may signpost you to relevant resources. Additionally, you may access excellent online
resources at ManagementDirect https://members.md.cmi.org.uk/.

 If you are enrolled on the Trailblazer Apprenticeship programme you are encouraged to review the Senior Leader
Master’s Degree Apprenticeship standard.
Completing the assessment brief

 The assessment brief contains a series of tasks which are clearly referenced to the relevant assessment criteria
and indicative content.

 Refer to the Assessment Guidance Table at the end of the assessment brief which outlines the requirements for a
Pass or Refer.

 Evidence must be provided in the evidence booklet. Additional work-based evidence such as plans or
documentation (which has been referred to within the main text) should be included at the end of the booklet
marked ‘Work Based Evidence’. Appendices are not a requirement of this assessment brief. If appendices are
included these will not be marked or moderated by the CMI.

 Work based evidence must be accompanied by a supporting statement in the learner evidence box, to explain the
link to the assessment criteria. Work based evidence (where required by the task) must not exceed SIX (6)
pages. Files embedded in the booklet must not exceed 10MB.

 The evidence booklet must be completed in a professional manner (e.g. applying business conventions for writing
formal reports) and by using Microsoft Word, Rich Text Format or another compatible software programme.

 An appropriate referencing system (such as Harvard Referencing) must be used to ensure the original source(s)
of quotations or models can be verified.

 Finally, you must sign the Learner Authenticity statement (an electronic signature is accepted).
Learner support For information regarding policies and procedures for assessment (e.g. special assessment arrangements, learner
support, appeals, complaints, certification, confidentiality, plagiarism) you should contact your tutor or Centre manager
and refer to the CMI Level 7 in Strategic Management and Leadership Practice.

INTRODUCING ASSESSMENT BRIEF CMI 706

Practicing leaders must have an understanding of the Finance function to be an effective decision maker within their
role. Finance impacts on all aspects of an organisation and has a profound influence on the development and
achievement of strategic objectives.

Assessment brief CMI 706 has been designed to enable leaders to evidence theirunderstanding of the scope,
complexity and role of Finance within an organisational context. They will develop an understanding of how Finance
impacts on strategic decision making.

 ASSESSMENT TASKS AND WORD COUNT

Assessment brief CMI 706 features the following assessment tasks. Further detail is provided against each assessment
task within the brief.

Guideline word count

The written word, however generated and recorded, is still expected to form the majority of assessable work produced
by Learners at Level 7. The amount and volume of work for this unit should be broadly comparable to a word count of
3500 – 4000 words within a margin of +/-10%. The excessive use of word count is not grounds for referral, however the
CMI reserve the right to return work to the Centre for editing and resubmission by the Learner.

The following are excluded from inclusion in word count, if used and not required by the assessment brief an
introduction to a job role, organisation or department, index or contents pages, headings and sub headings, diagrams,
charts and graphs, reference list or bibliography, reflective statement drawn from undertaking the assessment and how
this has impacted on the learner’s work.

Please see the CMI Assessment Guidance Policy for further guidance.

THE SCOPE OF THE FINANCE FUNCTION WITHIN AN ORGANISATIONAL CONTEXT

The Finance function impacts on all aspects of an organisation as well as contributing to strategic decision making.
The aim of Task 1 is to evidence the leader’s understanding of how the Finance functionsupports organisational
success.

They will have an opportunity to discuss the scope, boundaries and governance of Finance within an organisation and assess the impact of current and emerging technology on Finance Assessment brief CMI 706 features the following assessment tasks. Further detail is provided against each assessment task within the brief.

TASK 1

You are required to write a report entitled:

‘The scope of the Finance function within an organisational context’

The report must include well-chosen examples and be based on an organisation you know well or have researched.

It must be presented in THREE (3) sections:

i.The Finance function role in supporting organisational success
You are required to critically appraise how the Finance function supports organisational success (AC1.1)

ii. The scope, boundaries and governance of Finance within an organisational context You are required to discuss the scope, boundaries and governance of Finance within your chosen organisational context. You much include reference to relevant legal and regulatory frameworks. (AC1.2)

iii. Technological impact on Finance You are required to critically assess a minimum of THREE (3) current and emerging technological factors
which impact on Finance in an organisational context. (AC1.3)

Guidance for completion of Task 1

 The report must be based on an organisation you know well or have researched.

 The report must include well-chosen examples which illustrate the role of Finance within an organisational
context.

 The report should include subheadings. You may choose to include tables and diagrams (as appropriate) to
support your report.

 Please note: your response for Section ii need not cover all types and use of Finance, rather the response
should be focussed on Finance within the organisational setting of your choice.

 Please refer to the indicative content for each of the assessment criteria (AC) outlined in the unit specification

THE ROLE OF FINANCE IN STRATEGIC DECISION MAKING

Strategic decision making is greatly influenced by the role of Finance. Whilst it is not an expectation for leaders to be
accountants, an understanding of the role of Finance enables leaders to make strategic decisions in a more insightful
way.

The aim of Task 2 is to enable leaders to assess the influence of financial and cost analysis on strategic decision
making and discuss approaches for legal and ethical financial reporting. Exemplars of financial analysis and cost
analysis are presented in the table below.

Exemplars of Financial and Cost Analysis

Financial Analysis

Financial statement (e.g. statement of financial position, balance sheet, profit and loss statement, report). Use of key financial ratios (e.g. Liquidity, profitability, solvency, efficiency/effectiveness)

Cost Analysis

Budgeting and cashflow. Costing methods (e.g. fixed cost, variable cost, activity costs, marginal, project costing). Investment appraisal (e.g. Discounted Cash Flow. Internal Rate of Return. Net Present Value. Return on Investment. Payback. Return on Capital Employed. Weighted Average Cost of Capital).

Answer

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