A word from the president: 'the finance function has a key role in developing truly sustainable cities'.
Author | Luck, Keith |
Technology and sustainability are a crucial combination when it comes to ensuring that our cities will remain fit for purpose. If we don't know exactly how they will look half a century from now, at least we have a good idea of how big they'll be. In 1950 New York was the only mega-city - ie, one with a population exceeding 10 million. Today there are 24 mega-cities around the world and more are expected to join their ranks. The United Nations estimates that seven out of 10 people will be city-dwellers by 2050.
It's something of a modern marvel that mega-cities continue to function under the weight of their ever-expanding populations. September's FM app reported on the emergence of city states - those whose economies outweigh those of many nations and which present serious fiscal stewardship challenges. The article ("Metropoles apart") concluded by suggesting that sharing information on how best to establish effective financial management structures could be the way forward.
This is exactly what CIMA has set out to do. The institute maintains that the finance function has a key role to play in developing truly sustainable cities. This is particularly true with regard to performance management. As I know from my own work with UK local authorities, a strong management accounting team can ensure that services are performed efficiently to deliver the desired results.
And efficiency is at the heart of the matter. To meet the demands of citizens, businesses and other constituents of increasingly diverse urban communities - and to rise to the ongoing challenge of doing more with less - city administrators worldwide must ensure that their operations are highly efficient. Only then can they achieve better outcomes for their communities and demonstrate value for money.
Given my public-sector background, I'm particularly pleased to report that, as part of our CGMA management accounting innovation agenda, we are exploring approaches to...
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