Finance Competency Framework

Finance
Competency Framework
Table of Contents
PAGE
Finance Competency Framework Overview2
Competencies support the achievement of the Finance Vision4

Introduction to the Competency Framework5
Competencies link to talent and career management6
Four tips to identifying which competencies to work on.7
Overview of competency groupings..8
Lafarge Leadership Profile Competencies...

9
Overview of each competency..10
Finance examples of Leadership Profile competencies...16
Finance Behavioral Competencies..17

Proficiency Scale... 17
List.18
Overview of each competency.....19
Finance Technical
Competencies.25
List.25
Overview of each competency.....26
Competency Framework Finance
Mar 25, 2015
Finance Competency Framework Overview
Mar 25, 2015
Finance Competency Framework

LEADERSHIP COMPETENCIES
Vision and
Purpose
Leading People
Driving for
Results
Custom er
Focus
Leading Change
Integrity and
Value
Decision Making
Negociating
Organizational
Skills
Problem Solving
BEHAVIORAL COMPETENCIES
Personal
Involvem ent and
Openness
Interpersonal
Skills
TECHNICAL COMPETENCIES
Broad
Financial
Statem ent
Analysis
Capital Project
Analysis
Industry and
Product
Know ledge
Project
Managem ent
Analytical
Modeling
Forecasting and
Planning
Support and
Financial
Processes
Transactional
Accounting and
Analysis
Acquisition and
Divestment
Analysis
IFRS and
International
Statutory
Requirem ents
Accounting and
Consolidation
Credit and
Collection
Risk and
Insurance
Managem ent
Treasury :
Cash
Managem ent
Treasury :
Financing
Treasury :
Financial risk
m anagement
System s
Risk
Assesm ent
Financial
Com m unication
Internal Control
and
Practices
Managerial
Reporting
Specific
Tax Analysis on
Incom e Tax Law
Business
Com pliance
Decisions
Cross Border
Tax
Im plications
Mar 25, 2015
Finance Vision
The competency framework supports the achievement of the Finance

Vision:
Establish an organization which focuses on value-creation for the business
through efficient financial processes and more effective business support
Achieving this vision will require that we refocus finance in the following three areas:
Operations
Provides decision support

and business performance management
Competency Centers
Delivers and maintains expertise

for Lafarge: (Tax, Treasury, Corporate
Accounting, Internal Audit)
Shared Services Centers
Drives efficiencies in record-to-report

and transactional processes
Accounting
Transactions
(Financial Shared Services Centers)
Mar 25, 2015
Introduction
This competency framework guides Finance professionals in developing

leadership, technical, and functional proficiency.
A competency is a cluster of related knowledge, skills, and attributes
Competencies:
Contribute to successful performance
Can be measured against well-accepted standards
Can be improved via learning and development
The guide contains important information related to the competencies required
to achieve the Finance Vision at Lafarge:
Leadership Profile Competencies
Finance-Specific Behavioral Competencies
Finance-Specific Technical Competencies
Take some time to familiarize yourself with the content of this guide.
As you do, think about your strengths and development needs.
Use this information during performance reviews and in the creation
of your Individual Development Plan (IDP)
Mar 25, 2015
Competencies Overview
Competencies link all aspects of career and talent management.
Mar 25, 2015
Choosing Competencies
Four tips to identify what competencies to work on.
Tip 2
Tip 3
Tip 1
Consider the nature of your current role: individual contributor, manager, executive?
Consider the nature of your next role: individual contributor, manager, executive?
Review your strengths and developmental opportunities from your past 1-2
performance appraisals.
What strengths do you have today which must be stronger or maintained for the
future?
What new competencies do you need to develop most urgently?
In what areas do you think you are stronger than others do?
In what areas have you not had the opportunity to develop or become skilled?
Tip 4
Bundle these together and choose 2-5 competencies on which to focus, based on:
How difficult will it be to develop each of these?
How much support will you have?
To what extent are your developmental needs related? Can you kill two birds with
one stone?
Mar 25, 2015
Finance Vision
Overview of Competency Groupings:
Lafarge Leadership Competencies

These skills and attributes are common to all employees of Lafarge regardless of function or
business line
Examples of each of the six leadership competencies have been provided to help Finance
professionals understand how to translate these competencies to their day-to-day work
Finance Behavioral Competencies

Behavioral competencies are those skills and attributes that help understand the manner in
which we get our work done
For example, skills such as having good interpersonal skills, making good decisions, and
possessing business acumen are essential
Finance Technical Competencies

These are the skills that are specific to your function only
Often, doing the work requires a higher level of proficiency in a technical competency than
managing it
Mar 25, 2015
Lafarge Leadership Profile Competencies
Lafarge Leadership Profile competencies are relevant for all

employees regardless of function or line of business
Mar 25, 2015
10
Lafarge Leadership Profile
Vision & Purpose
Mar 25, 2015
11
Leading People
Mar 25, 2015
12
Driving for Results
Mar 25, 2015
13
Customer Focus
Mar 25, 2015
14
Leading Change
Mar 25, 2015
15
Integrity and Values
Mar 25, 2015
16
Finance Examples
Finance examples of Leadership Profile competencies

Vision and Purpose
Leading People
Driving for Results
Mobilize people and inspire them

to achieve key finance KPIs and
objectives
Develop department employees to
other positions for bench strength
Communicate with candor, sharing
what is known, stating what is not
yet known and addressing
problems, issues and challenges
Provide employee recognition
through formal and informal
systems
In addition to technology, consider

process and organization to
ensure optimum structure
Critical review of financials to
validate against business
performance resulting in material
corrections
Actively participate in the
development of strategic goals for
the organization
Establish policies and procedures
to control spending and safeguard
financial and physical assets
Customer Focus
Leading Change
Integrity and Values
Know and understand external

customers needs, opportunities
and threats
Treat internal clients as business
partners
Provide creative financial solutions
to increase business and
decrease costs
Establish and comply with Service
Level Agreements (SLAs)
Support an enhanced and
consistent customer experience
Review and recommend changes

to governance and financial
policies to ensure alignment with
changes
Communicate and ensure
understanding of finance strategy
and KPIs across the business
Able to influence key stakeholders
to adopt new practices and
approaches
Continuous business process

improvement to drive efficiency
and effectiveness
Liaise with other Divisions,
Business Units, etc. to ensure
optimal business operation
Honest and direct in dealing with

internal & external customers;
represents Lafarge in a
professional and positive manner
Demonstrate a commitment to
improving and adhering to safety
policies in all work environments
Mar 25, 2015
17
Proficiency Scale
Behavioral and Technical competencies are grouped into levels to

differentiate between basic and more advanced proficiencies.
Level A
Level B
Level C
Level D
Basic:
Intermediate:
Advanced:
Expert:
Demonstrates basic
knowledge and ability
and, with guidance, can
apply the competency in
common situations that
present limited difficulties.
Demonstrates solid
knowledge and ability,
and can apply the
competency with minimal
or no guidance in the full
range of typical situations.
Would require guidance
to handle novel or more
complex situations.
Demonstrates advanced
and can apply the
competency in new or
complex situations.
Guides other
professionals.
Demonstrates expert
and can apply the
competency in the most
complex situations.
Develops new
approaches, methods or
policies in the area. Is
recognized as an expert,
internally and/or
externally. Leads the
guidance of other
professionals
Mar 25, 2015
18
Personal Involvement and Openness

Interpersonal skills
Decision Making
NegotiatingCentral Finance
Organizational Skills
Problem Solving
A different set of competencies and capabilities is required for all Finance

professionals in the future.
Mar 25, 2015
19
All Finance
Personal Involvement and Openness
Level A
Demonstrates a basic
interest of all important
aspects of specialisation or
profession
Thinks things through
carefully
Shows eagerness to learn,
openness
Level B
Level C
Level D
Maintains state of art

knowledge of advances in
own specialisation or
profession
Shares expertise with others
and differentiates own
opinions from the companys
position and ability to deliver
Deals with concepts and
complexity comfortably
Enhances performance by
applying knowledge outside
core speciality area
Uses analysis to diagnose
issues/problems and
recommend solutions to
improve performance
Seeks opportunities to
influence and raise level of
awareness of new
developments outside the
company and demonstrates
this during interviews,
presentations, etc.
Mar 25, 2015
20
All Finance
Interpersonal Skills
Level A
Interacts with others to
ensure business
requirements are being met
Level B
Builds formal and informal
relationships beyond
immediate contact
Level C
Level D
Can speak effectively and

persuasively on
controversial or complex
topics
Demonstrates effective
relationships throughout the
organization to drive
business performance
Mar 25, 2015
21
All Finance
Decision Making
Level A
Level B
Judges straightforward
situations rationally, taking
into account the necessary
facts, policies and guidelines
Judges situations involving

moderate levels of risk,
considering several possible
and objectively weighing
alternatives
Level C
Level D
Judges situations where

different parties hold
different views, considering
many alternatives
Makes objectives decisions

that have long-term impact
on the organization
Takes into account all
possible sources of
information, assesses risks
ad all future implications
Mar 25, 2015
22
All Finance
Negotiating
Level A
Is able to influence others
within the organization
Level B
Conducts internal and
external negotiations without
damaging relationships
Level C
Skilled at negotiating with
vendors and customers
ensuring all data is
considered and the best
interests of Lafarge are
represented
Level D
Acts as resource to other
Lafarge employees in
negotiations and decision
making
Mar 25, 2015
23
All Finance
Organizational Skills
Level A
Level B
Level C
Level D
Shows interest in
understanding the inner
workings of the
organization beyond his/her
area
Plans and controls own
routine work on a daily basis
to achieve objectives
Uses systems and
resources productively
Works to build relationships

with individuals in
Operational and Centralized
Finance as well as other
departments
Knowledgeable about
Company policies and
procedures
Delegates tasks to promote
development of employees
Encourages employees to
manage projects on their
own; does not micromanage
Cognizant of cultural
differences which exist
within Lafarge; applies this
knowledge as appropriate
Ensures understanding and
compliance with Corporate
policies
Establishes effective
relationships at the Group
level to ensure sharing of
best practices
Creates an environment of
trust and engagement for all
team members
Communicates effectively
and frequently with all team
members through various
mechanisms to
accommodate geographical
locations
Effectively achieves results

utilizing both formal and
informal channels in the
organization
Can seek advice and
brainstorm with individuals
in other areas of the
business; including those
external to Finance
Structures department
practices, processes and
procedures to involve and
enable all team members
regardless of work location
Ensures employees working
at a distance feel included
and connected to their
manager
Mar 25, 2015
24
All Finance
Problem Solving
Level A
Doesnt leave issues
unresolved
Level B
Seeks input from others
when addressing problems
Level C
Level D
Uses creativity to resolve

problems; thinks outside the
box
Looks beyond the problem

at hand to identify
secondary issues and proactively addresses them
Mar 25, 2015
25

Broad
Financial
Financial Statement
Statement Analysis
Analysis
Capital
Capital Projects
Projects Analysis
Analysis
Control
Process
Process and
and Business
Business Models
Models
Industry
Industry and
and Product
Product Knowledge
Knowledge
Project
Control
Project Management
Management
Control
Analytical
MS
Analytical Modeling
Modeling
MS +Control
+Control
Forecasting
MS
Forecasting and
and Planning
Planning
MS +Control
+Control
Risk
Control
Risk Assessment
Assessment
Control
Internal
VB
Internal Control
Control Practices
Practices
VB
Financial
Financial Communication
Communication and
and Managerial
Managerial
Reporting
YBA
Reporting
YBA
Specific
Support and Financial Processes

Transactional Accounting and Analysis
Acquisitions and Divestment Analysis
MS
MS
MS
MS
S.
S. Rochier
Rochier (MS)
(MS)
IFRS and International Statutory

Requirements
Accounting and Consolidation
Credit and Collection
Tax Analysis on Business Decisions
Income Tax Law Compliance
Cross Border Tax Implications
Pension Accounting
Risk and Insurance Management
Insurance captives management
Treasury
MS
MS
MS
MS
Cath.
Patrice
Patrice
Patrice
Patrice
Patrice
Patrice
Patrice
Patrice
Cash Management
Financing
Financial Risk Management
Information Systems
Financial Systems
Lieven
Lieven
In
In Italics:
Italics: Responsible
Responsible for
for keeping
keeping updated
updated
Mar 25, 2015
26

Financial Statement Analysis
Level A
Understand &
Produce
Level B
Analyse & report
Level C
Design & Improve
Level D
Leverage & Vision
Understands content and

interrelationships between
the income statement,
balance sheet, and cash
flow statement
Utilizes tools, models, and

skills to provide analysis
of business unit
profitability
Compares business unit
profitability through
budgets, forecasts and
historical data
Benchmarks Internal
results
Reviews and challenges
income statement,
balance sheet, and cash
flow statement
Specifies analyses
relevant to understanding
the profitability of the
business
Recommends solutions to
meet business objectives
of the unit
Benchmarks external
(competition) results
Judges and extracts

messages and meaning
from reports and data
Provides strategic
recommendations to the
management team based
on this information
Drives and recommends
the structure on financial
statements
Examples:
Examples:
Examples:
Examples:
Implements financial
analyses in Excel
spreadsheet models
Gathers benchmarking
information
Reviews reports on
business unit profitability
using tools such as ratio
analysis, trend lines, and
baselines
Provides statistical
analysis against targets
(KPIs)
Interprets financial
statement results and
makes recommendations
for suitable options for
operations
Identifies key benchmarks

that apply to the
corporation, for
consistency in analysis
and reporting
Encourages the use of
advanced methods of
detecting issues or risks
in financial data
Mar 25, 2015
27

Capital Project Analysis
Level A
Level B
Level C
Level D
Analyzes project
alternatives using
appropriate quantitative
analysis Group tools.
Understands the main
drivers & indicators of
project profitability
Understands the Group
policies for accounting
and purchasing
Prepares effective
documentation for capital
application request (IR).
Highly conversant in
calculating EVA, NPC,
ROCE EPS, IRR,
identifies drivers of EVA,
EPS, ROCE, NPV that
impact decision
Runs sensitivity analysis
Reviews and
recommends, within
policy, approval for capital
projects. Makes effective
arguments based on
strategic rational and
context to justify
expenditures
Ensures Capital Projects

Analysis results maximize
Group main financial
indicators (i.e. NPV, EPS,
)
Chooses the right projects
in order to maximize NPV,
EPS,
Challenges projects and
modifies approach
proposed in order to
maximize NPV, ROCE,
EPS
Sets capital expenditure
procedure
Identifies alternatives
Examples:
Examples:
Examples:
Examples:
Calculates NPV, IRR,

EVA, EPS, ROCE etc.
Applies to equipment and
portfolio (land and/or
business)
Justifies individual
projects in larger business
context. Assists in
calculating financial
impact of leasing vs.
buying.
Calculates NPV, ROCE of
alternatives
Utilizes competitive
analysis to influence
capital project decisions
Follows up on analyses
and learns from
mistakes/inaccuracies
Mar 25, 2015
28

Business Model, Industry and Product knowledge
Level A
Level B
Level C
Level D
Is familiar with Lafarges

products and operating
models in own division.
Understands the Group
products.
Has a basic
understanding of
economic indicators: GDP
and interest rates.
Uses understanding of
similarities and
differences between
product line to inform
decisions
Understands Lafarges
competitive advantages/
disadvantages
Understands thoroughly
the core competencies of
the business unit
Familiar with competitors
in own product line
Deep understanding of
operating models of own
product lines and
products. Follows trends
of competitors/ identifies
their key advantages/
disadvantages
Prepares benchmarks.
Has a deep
understanding of macro
economic factors and
their impact on the
business.
Understands Lafarge and

industry/ competition
enough to anticipate/
react to change favorably
for the Group.
Has a deep
understanding of
operating models and and
products of all product
lines.
Examples:
Examples:
Examples:
Examples:
Identifies common
business practices across
product lines
Is able to forecast trends

based on KPIs.
Is able to forecast long

term trends for the group.
Is able to interpret how
economic indicators
impact the business in the
short, medium and long
term
Mar 25, 2015
29

Project Management
Level A
Level B
Level C
Level D
Performs with minimal

supervision
Values time and uses it
effectively and efficiently
Concentrates efforts on
the most important
priorities
Maintains a conscious
balance between work
and personal life
Leads projects of low to

medium complexity to
successful completion
Manages and supervises
other project resources
and contractors
Manages tensions and
conflicts
Looks for collective
success
Sets priorities accurately
Leads complex projects to

successful completion
Is able to act in over-seer
role for projects managed
by others
Can orchestrate multiple
activities at once to
accomplish a goal
Gets more out of fewer
resources
Commissions projects
that impact company
strategic direction
Provides executive
sponsorship to complex
projects
Integrates projects with
other corporate priorities
Sees opportunities for
synergy and integration
where others dont
Examples:
Examples:
Examples:
Examples:
Keeps an agenda
Uses software tools to

keep track of projects
His/her projects improve

results
Mar 25, 2015
30

Analytical Modeling
Level A
Level B
Level C
Level D
Uses spreadsheets and

other tools to develop
understanding of
quantitative issues.
Understands and applies
basic EVA, DCF, NPV,
ROCE as appropriate
Creates complex
analytical models and
draws actionable
conclusions from results.
Assists business partners
with compiling financial
impact of capital projects
Knows inter-relationships
among key drivers
Validates complex
analytical models against
business situation
Evaluates competing
proposals on relative
impacts
Educates people to apply
EVA principles to day-today and investment
decisions
Uses results of analytical

models to make corporate
business decisions
Uses Financial Model to
set performance
objectives
Performs post investment
audits
Examples:
Examples:
Examples:
Examples:
Uses Group Financial

Model
Builds models for

sensitivity analysis and
economic cycle analysis.
Knows Lafarges way to
measure financial
performance.
Applies models to
acquisition/ divestment
opportunities
Uses Statistical Process
Controls
Uses linear programming
Evaluates alternative
capital proposals, M&A,
spin-offs, divestment
Qualifies business
decisions for buying or
selling
Mar 25, 2015
31

Forecasting and Planning
Level A
Level B
Level C
Level D
Understands the need for

accurate forecasting and
budgeting and its impact
on operations. Gathers
financial data to
accurately assess future
financial performance
Creates budgets/
forecasts with business
partners
Anticipates trends in
business and adapts to
meet new challenges
Determines financial
impact of line
performance plans
Prepares and
consolidates performance
plan for business unit
Provides budget
methodology and highlevel assumptions
in improvement of
performance plans
Ensures effective
implementation of the
performance plan process
to drive KPIs
Reviews and evaluates

business unit strategic
plans against overall
Division goals
Drives the Groups
standards for budgets and
forecasts and establishes
parameters for
performance reporting
Ensures alignment of
capital expenditures with
corporate objectives
Examples:
Examples:
Examples:
Examples:
Gathers information
pertinent to Management
Cycle Analysis.
Develops relevant
indicators
Prepares business units

presentation to the Group
execs. Assists business
partners in interpreting
data (appropriations,
spending, carryovers,
etc.).
Performs sensitivity
analysis
Ensures the strategic

review documents meet
the objectives of the
Group
Has full responsibility for

Management Cycle at
Division level
Mar 25, 2015
32

Risk Assessment
Level A
Level B
Level C
Level D
Understands the
importance of assessing
business risks and
mitigation tactics
Quantifies risk within own

scope. Communicates
risk assessment to
management
Expert in the analysis of

risk
Assists in communication
of risks to external
communities
Recommends mitigation
strategies
Expert in the analysis of

risk and the application to
Lafarge businesses
Drives development of a
sound risk profile
Communicates
appropriate risks to
internal and external
communities
Examples:
Examples:
Examples:
Examples:
Includes accurate
analysis of risks in capital
budget requests
Communicates risk to
Board of Directors,
external auditors,
shareholders or potential
investors
Mar 25, 2015
33

Internal Control Practices
Level A
Level B
Level C
Level D
Understands the
importance of Internal
Control
Is able to manage internal
control within the
processes she / he is
involved in (i.e. check
effective implementation
of Group internal control
standards and identify
areas of improvement of
the process)
Shares information with
management on internal
control issues and areas
of improvement
Drives the implementation

of Internal Control
standards within the
process she / he is
involved in
Drives continuous
process improvement
within the process she /
he is involved in
Mobilizes own team to
implement action plans
and continuously improve
IC
Has a deep
understanding of all
processes and related IC
aspects pertaining to the
organization
Drives continuous
process improvement
Proactively anticipates the
impact of changes on IC
Mobilizes BU Senior
Management (Excom) on
significant internal control
issues and process
improvement
Has a broad knowledge of

IC at Lafarge and
performs benchmarks
with other Groups to
define overall approach
Is an expert of processes
and leads process
improvement
Defines and maintains
Group internal control
tools
Mobilizes Group Senior
Management on major
internal control issues and
process improvement
Examples:
Examples:
Examples:
Examples:
Prepares procedures in
line with Internal Control
Standards requirements
Performs gap analysis

with Group Guidelines
and implements related
action plans
Reviews KPI / exception
reports. and identifies
action plan to improve the
process
Organizes systematic
benchmark to find areas
of process improvement
His/her projects improves
efficiency of processes
Defines vision and

strategy for group
internal control
approach
Mar 25, 2015
34

Financial Communication and Managerial Reporting
Level A
Understand &
Produce
Level B
Analyse & report
Level C
Design & Improve
Level D
Leverage & Vision
Understands the
importance of accurate
and coherent
management &
operations reporting
Interprets financial data
and communicates the
meaning behind the
numbers
Performs consistency
checks to ensure
coherency
Produces first set of
management reporting
Provide preliminary
information (deviations,
issues)
Prepares effective and
timely management and
operations reports
Ensures management
and operations are getting
the information they need
on a timely and quality
basis
Builds understanding and
awareness of
management and
operations information
Trains others on financial
topics
Effectively explains
financial information to
non-finance people
Assimilates large amount
of financial information to
reach conclusions
Assesses the relevance
and importance of the
content of reports
Is proactive in anticipating
management needs for
reporting
Assimilates financial
information of entire firm
and formulates defensible
story to explain results.
Ensures effective use of
management and
operations reports to drive
corporate operational
policies and growth
systems development
Examples:
Examples:
Examples:
Examples:
Helps produce Results

Packages. Conveys the
key elements and drivers
of complex issues

with interpretation of
management and
operation report data.
Advises operations
personnel in development
of presentations for execs
Presents results of
financial analysis to line
management
Speaks as voice of
Finance for external
audiences
Mar 25, 2015
35

Support and Financial processes
Level A
Level B
Level C
Level D
Has basic understanding

of finance and support
processes.
Has a more detailed

understanding of some
processes.
Is able to see the impact
of processes on the
financial statements.
Is able to organize the

closing process.
Can effectively manage
certain processes to
ensure a more efficient
closing.
Consistently looks to
optimize the process.
Can balance efficiency
with control.
Has a deep
understanding of all major
financial and support
processes.
Consistently uses the
available tools in the most
effective way.
Examples:
Examples:
Examples:
Examples:
Basic understanding of:

It systems
Organisation
Monthly close process
Reporting tools
Is able to identify route

causes of errors in certain
financial and support
processes that impact the
financial statements.
Is responsible for a
certain part of the closing
process.
Is responsible for the

closing process.
Can demonstrate they
have made systematic
process improvements.
Can produce reliable

financial statements at
D+5
Can demonstrate a track
record of reducing the
closing cycle and costs.
Mar 25, 2015
36

Transactional Accounting and Analysis
Level A
Level B
Level C
Level D
Can process financial

data in Lafarge systems
Verifies that the

information is accurately
registered in the
corresponding accounts
and master files.
Investigates variances,
identifies influence of
specific drivers
Manages people and

systems to reduce
transaction processing
costs
Is responsible for correct

and timely transaction
registry
Examples:
Examples:
Examples:
Examples:
Processes A/P or A/R,

G/L entries, data entry,
bank reconciliations,
monthly close
Verifies balance in
statements
Mar 25, 2015
37

Acquisition and Divestment Analysis
Level A
Level B
Level C
Level D
Prepares analyses of
financial impact of
acquisitions/ divestments
Participates in due
diligence
Understands how key
Merger & Acquisition
(M&A) issues impact
financial priorities in own
direct environment
Understands synergies
quantification
Reviews financials and

adjusts plan to include
potential acquisitions/
divestments
Conducts due diligence
Prepares pro-forma
statements
Applies principles of
purchase accounting and
realises the opening
balance sheet accounts,
validated by the auditors
Identifies and quantifies
synergy opportunities
Analyzes potential
acquisition/ divestment
projects to recommend
action
Reviews data from due
diligence and open
balance sheet
documentation prior to
submission to
auditors/final validation
Aligns the new acquired
structure with the Lafarge
policies and processes,
and takes into account
the risk areas
Recommends synergy
strategies
Evaluates opportunities
and contributes to
corporate decisions
Links analysis to external
events, competing capital
requirements, and
corporate strategies in
acquisition
recommendations
Sets Lafarge M&A policies
Examples:
Examples:
Examples:
Examples:
Identifies/ negotiates
alternative business
arrangements to
consummate the
transaction (tax, legal)
Mar 25, 2015
38

IFRS and International Statutory Requirements
Level A
Level B
Level C
Level D
Understands basic
guidelines on statutory
requirements and
potential impact on
Lafarges operations.
Can link international
statutory requirements to
Lafarge accounting
practices and cycles
Is sensitive to
organizational needs
while applying statutory
requirements. Ensures
that accounting practices
align with international
requirements
Effectively balances
requirements. Is able to
convince the group of the
impact of these
requirements and stays
ahead in effectively
updating the
implementation
Drives the need to closely

comply with these
requirements within the
organization
Examples:
Examples:
Examples:
Examples:
Enters the recurring US to

IFRS converting journal
entries. Gathers specific
information about
international requirements
and checks consistency.
Prepares monthly crossborder invoices
Identifies new
requirements
Promotes reconciliation
showing a common
language
Communicates what
makes the differences
Q&A with the Group and

with the Divisions
Develops short-term/longterm plans to ensure the

optimized process to deal
with different groups
Mar 25, 2015
39

Accounting & Consolidation
Level A
Level B
Level C
Level D
Knows basic rules of

consolidation
Knowledge of the HFM package
as used by the Group
Knowledge of HFM as a tools
Basic knowledge about local
GAAP/IFRS
Knows rules of consolidation

Reviews and understands
reports from the consolidation
package
Checks consistency with other
management analysis
Detects and solves
discrepancies in the HFM
package
Anticipates and can simulate the
impact of an operation on the
BU accounts, coordinates with
other Competency Centers
Coordinates with other

competency Centers to
anticipate impacts on the
accounts and on the tool of
future significant operations
impacting the UO (purchasing,
treasury, tax, legal, )
Understands fully the
consolidation rules &
mechanisms
Redesigns HFM : structure &
reports
Good knowledge of IFRS as
applied by the Group
Examples:
Basic rules of consolidation :
intercompany
elimination/reconciliation,
exhaustivity of data
Conversion to Group currency,
consolidation methods
Tasks performed : data entry,
check blocking & non blocking
controls
Makes basic coherence checks
Examples:
Checks and challenges
Freecashflow, Variance analysis
Checks and challenges
coherence between operating
/financial indicators
Examples:
Consolidation : elimination of
intercompany gains/losses,
disposal valuation, net equity
analysis
Training & support to basic
consolidation population
Writes notes in the annual report
Examples:
Assigns priorities and goals for
pension staff
Examples:
Ensures that pension accounting
is properly done at Lafarge
In depth knowledge of IFRS in

general
Watches out for changes,
anticipates evolutions and
challenges IFRS rules
Translates new IFRS rules in
accounting/consolidation
process
Expert for consolidation
treatment of complex operations
and their impact on group
accounts (Figures, disclosures)
Sets policies to other
departments to ensure their
contribution to Group accounts
Examples:
Advises decision makers
regarding hard choices in
pensions
Finance Competencies workshop
5 Oct 07
40

Credit and Collection
Level A
Level B
Level C
Level D
Understands the
principles of sound credit
management and impact
on organizational
profitability. Has
knowledge of laws
governing credit practices
Applies knowledge of law

governing credit practices.
Effectively executes
credit and collection
activities. Applies proper
accounting for credit
Assesses and manages

A/R portfolio to minimize
risk while maximizing
profitability. Is proactive
in anticipating economic
trends affecting
collectability
Executes secondary
review to ensure integrity
of A/R portfolio. Drives
appropriate policies to fit
the competitive
environment with
sensitivity to profitability
and risk
Examples:
Examples:
Examples:
Examples:
Verifies trade references

on new credit application,
doing Equifax, Credit
Guard, and Dun and
Bradstreet reports
Mar 25, 2015
41

Tax Analysis and Business Decisions (1/2)
Level A
Level B
Level C
Level D
Understands basic
guidelines on statutory
requirements and
potential impact on
Lafarges operations.
Can link international
statutory requirements to
Lafarge accounting
practices and cycles
Is sensitive to
requirements. Ensures
that accounting practices
align with international
requirements
Effectively balances
requirements. Is able to
convince the group of the
impact of these
requirements and stays
ahead in effectively
updating the
implementation
Drives the need to closely

comply with these
requirements within the
organization
Examples:
Examples:
Examples:
Examples:
Enters the recurring US to

IFRS converting journal
entries. Gathers specific
information about
international requirements
and checks consistency.
Prepares monthly crossborder invoices
Identifies new
requirements
Promotes reconciliation
showing a common
language
Communicates what
makes the differences
Q&A with the Group and

with the Divisions
Develops short-term/longterm plans to ensure the

optimized process to deal
with different groups
Mar 25, 2015
42

Tax Analysis on Business Decisions (2/2)
Level A
Understands impact of tax
planning on business
decisions.
Level B
Provides tax advice on less
complex business
transactions
Identify and document tax
risks & exposures
Understand transfer pricing
guidelines and validates its
correct implementation
through various transactions
Level C
Level D
Provides tax driven advice

on alternative ways to
structure complex business
transactions.
Identifies key tax related
issues and corroborates
findings with outside
specialists as needed.
Ensures proper tax planning

at the country or regional
level.
Ensures tax risk
management is effective.
Handle the relationship with
tax authorities
Monitor accurate tax risks

reporting
Monitor effective tax rate in
close coordination with
consolidation team
Examples:
Examples:
Examples:
Examples:
In an asset sale,understand
the companys P&L impacts
for current and deferred tax
Asset allocation on asset

deals.
Asset vs. stock, basic step

up transactions, structuring
complex deals and evaluating
cost/benefit of alternatives.
Define the structures to be

chosen for an acquisition in
order to optimize debt push
down.
Manages due diligence and

prepares recommendation to
structure acquisition/sales
Negotiate and obtain a tax

ruling
Advice on a service
transaction to apply a cost
plus price methodology
Mar 25, 2015
43

Income Tax Law Compliance / Indirect Tax Compliance
Level A
Level B
Understand basic income

tax law to be aware of
impact in transactions
review calculations and

monitor tax forecast
prepared by accountants or
SSC
Clear understanding of
current indirect and other
commodity taxation laws
Prepares moderately
complex income tax returns
Identifies areas in
financial transactions that
have potential tax impact
and advice accordingly
Effectively applies
Commodity, Sales/Use tax
laws and ensures correct
and timely payment
Level C
Level D
Prepares complex
income tax returns
Consolidate tax
calculation to prepare local
group position
Identifies opportunities for
tax savings
Can recognize potential
tax issues and advise on
their provisioning
Manage full compliance

with tax laws on both
domestic and international
such as CFCs rules ,or
imputation of foreign tax
credits
Ensure transfer pricing
documentation is sufficient
at country level and can be
produced in a determined
time frame
Interprets, recommends,
and disseminates changes
in tax laws applicable to NA
business
Manage the overall audit

process by the local tax
authorities
Example:
Example:
Example:
Example:
Understands gain/loss at
a basic level
medium level, reviewing tax
calculations
high level, charitable
contributions,
condemnations, asset price
allocation
Validates annual tax

provision
Understand the difference

between direct and indirect
tax from a P&L point of
view
Mar 25, 2015
44

Cross Border Tax Implications
Level A
Understands crossborder tax implications of
transactions
Able to find appropriate
answers in international
documentation (OECD)
and relevant double
taxation avoidance treaties
Level B
understand and advice
on impact of international
structures related to
company flows, i.e.:
Dividend, royalty,
interest, capital gain
Level C
Level D
Understand and manage

complex situation
combining international
debt push down,
acquisition structuring and
complex interco financing
Examples:
Examples:
Examples:
Arms length
understanding of concept
Make comparison
between multiple location
for a new regional holding
company in a joint venture
environment
Advice on an
international LBO structure
in which the group holds a
significant stake
Define and implement

the overall international
strategy in term of debt
and flows optimization
Define and implement
the transfer pricing group
policy, the level of
documentation and
appropriate guidelines
Mar 25, 2015
45

Risk and Insurance Management
Level A
Level B
Level C
Level D
Demonstrates a basic
knowledge of all
important aspects of
insurance contracts
Is able to identify and

assess local risks and to
ensure appropriate
reporting of such risks to
Corporate Risk Mgt
Develops a good
understanding of Lafarge
insurance schemes and
loss prevention programs
Understands and is able

to ensure effective
implementation across
its organization of
Lafarge Insurance
principles
Implements and monitors
Group insurance
programs at Bus level
Participates to loss
prevention process
If need be, can actively
contribute to negotiating
Group insurance
contracts and to
selecting other service
providers.
Understands insurance
captive management
Defines Lafarge
Insurance Principles
Proposes costs effective
solutions to protect the
assets & activities of the
Group
Defines the structure of
insurance programs
(level of retention, limits,
) and loss prevention
policy and process.
Places insurance
programs and negotiates
policy wording
Examples:
Examples:
Is able to inform on
premium, franchise,
value of insured assets,
Can have a contact with

local brokers to get
further explanations
Ensures correct and

timely process of BUs
insurance values in
LROL
Ensures timely
notification of claims or
losses
Ensures timely payment
of insurance premiums
and fees
Examples:
Examples:
Ensures that local
coverage complies with
Lafarge principles and
Selects main insurers,
that all assets and
brokers and service
activities are properly
providers through RFP
insured
process
Recommends rules of
Define the level of group
allocation of premiums
retention, franchises,
and fees within the
Group in compliance with
Competency Framework Finance Mar 25, 2015
46
tax and legal regulations

Treasury: Cash Management (and Short Term Financing)
Level A
Level B
Level C
Level D
Understands and analyses

cash movements.
Monitors bank balances on

bank accounts.
Organises cash
management.
Defines policies and monitors

their application.
Collects and enters treasury

forecasts
Negotiates bank conditions.
Measures risks attached to

cash investment.
Ensures compliance with local

regulations.
Ensures opening and closing

of bank accounts.
Defines and implements

internal control rules.
Can liaise with banks to get

basic information on bank
accounts / balances/ fees.
Check applications of bank
conditions.
Ensures fund flows.
Prepares Treasury forecasts

and daily treasury positions.
Ensures short term
financings on a daily basis.
Prepares reporting.
Negotiates short term
financings (overdraft).
Understands cash
investment tools.
Reports on bank activity.
Manages bank mandates.

Proactively challenges
treasury forecasts.
Monitors and reports on cash
management/
investment.
Manages bank relationship
globally.
Mar 25, 2015
47

Treasury: Financing (Short, Medium and Long Term)
Level A
Checks on interest
computation and interest
rates applied.
Knows the basis references
of interest rates in its
environment.
Level B
Knows market standards for
legal documentation on
financing and interest
computation rules.
Level C
Level D
Negotiates medium and long

term financings with banks.
Defines financing policies and

anticipates on financing needs
based on the budgets /
projects,...
Studies and analyses various

financing options Makes
recommendations.
Monitors and reports on
financings.
Seeks for getting enhanced

financings (tax exempt or
other type of subsidised loans.
Decides between various
financing options.
Defines and implements
internal control rules.
Mar 25, 2015
48

Treasury: Financial Risk Management
Level A
Level B
Level C
Is aware of Foreign
Exchange risks.
Prepares foreign exchange

position.
Follows exchange rate

levels and short term
evolutions.
Measures Risk
sensitivities. Understands
and implements standard
hedging techniques and
their accounting treatment.
Understands most hedging

techniques and their
accounting treatments.
Proposes Risk
Management policies and
monitors their application.
Recommends hedging
strategies.
Ensures compliance with

local regulations.
Reports on hedging
activities.
Decides between various

hedging options.
Monitors flows of funds

related to purchases /
sales of currencies and
derivative instruments.
control rules
Level D
Ensures a centralized Risk

management.
Mar 25, 2015
49

Systems
Level A
Level B
Level C
Level D
Is proficient with use of

typical office software tools
and Internet
Advanced user of common

office software packages.
Advanced user of
spreadsheets
Has broad knowledge of

programming languages
and interfaces
Is proficient in the
conception and use of
Databases
Can develop complex

applications
Examples:
Examples:
Examples:
Examples:
Basic user of Microsoft Suite

(Word, Excel, PowerPoint,
Access). Uses Lotus Notes
e-mail and databases
Advanced user of Microsoft

Suite for financial modeling,
presentations, etc.
Advanced user of Lotus
Notes (i.e.. Database
development)
Design Database reports

Excel Macro instructions
Visual basic
Design Database reports

Essbase applications
Understands the basic

functionality of financial
systems and ERPs.
Has knowledge of Group
and Division chart of
accounts
Has knowledge of the
workings of Financial
Systems controls
Can control reports
Effectively utilizes financial

systems to achieve accurate
and consistent financial
reporting. Ensures
appropriate controls are in
place and upheld
Can give technical support

and training on Financial
Systems
Recommends controls to
put in place
Identifies and addresses
inadequacies
Understands processes
Leads in the area of

Financial Controls.
Drives output of financial
system.
Challenges data output
Examples:
Examples:
General Ledger and subaccounts
Stock reconciliation
Examples:
Examples:
Design ERP processes
Design output from ERP
implementation
(General ledger, accounts

payable, accounts
receivable, billing, fixed
assets, inventory, job
costing, consolidations)
Mar 25, 2015
50

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Mar 25, 2015