accounting in a vuca world - the anticipatory cpa

Tom Hood, CPA, CITP, CGMA CEO

Accounting in a VUCA World The Anticipatory CPA

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Norfolk pines

Captain Cook & Norfolk Pines on Maui

91%

Of firms expect to con2nue record hiring

levels

16%

Projected accoun2ng job growth between 2010 and

2020

73%

Of investors express confidence in U.S. capital

markets

87%

Of key decision makers say CPAs are valuable to their

orgs

Our Profession stands strong

Maryland Na8onal Leadership

1.  Lyle Benson 2.  Wayne Berson 3.  Ed Karl 4.  Jody Padar 5.  Tom Hood + Vice-‐Chair of AICPA, Kimberly Ellison-‐Taylor CEO of NABA, Jina E8enne

Mobile workforce

Patent holding companies

* DOL overtime

* Cash basis

* IRS Service Levels

* Top Priorities of Maryland Managing Partners

DOL ALERT

“The DOL will ask for stakeholder support, and will strongly encourage state boards of accountancy to consider more rigorous review of firms performing ERISA audits and examine how licensing requirements might play a role in improving con8nuing educa8on and boost quality. We believe the contents of these leZers to be reasonable under the circumstances.”

-‐ AICPA Regulatory Affairs

Stats from DOL Maryland is 16th in # of plans/par8cipants/assets with 282 firms audi8ng 1,614 plans with 3 million par8cipants and $264.12 billion in plan assets 24% of all audits and 22% of all plans

Legisla8ve / Regulatory / Standards •  State Board

–  Posi8oning for Firm Mobility –  CPE tracking and audits –  Peer Review

•  State – Offense

•  Firm Mobility •  Supersedeas (Appeal Bond) Caps •  Peer Review – Subpoena Power

– Defense •  Stop Compara8ve Fault – Liability •  Stop Sales Taxes on Services •  Stop Nullify NDA & Non-‐Compete •  Mandatory Leave

CPA Day in Annapolis – January 21, 2016

“if you don’t have 0me to par0cipate in the legisla0ve process, be prepared to accept the consequences of

those who do.”

States with a comprehensive defini8on of aZest

Upholding the profession’s public interest mission

Pennsylvania, Rhode Island and Guam have ac8ve legisla8on to adopt a comprehensive defini8on

Puerto Rico

U.S. Virgin Islands

Guam

Marianas

Defini8on of AZest

Bachelor's & Master’s in Accoun8ng

Source: AICPA 2015 Trends in Supply & Demand

Source: Updated 2015 Trends Report data

What’s driving our pipeline concerns?

Adapted from: Global Management Accounting Principles – CIMA/AICPA 2014

CAPACITY COMPETENCY CREDIBILITY

Strategy Process Management Business Relations Project Management

Influence Negotiation Communication Collaboration & Partnering

Team Building Coaching & Mentoring Driving Performance Change Management Motivating and inspiring

Financial Accounting Cost Accounting Business Planning Management reporting Tax strategy, planning

American Institute of CPAs®

The AICPA Proposal: Joining forces to protect, promote and grow an evolving accounting profession


Evolving the relationship

Evolution of the JV


Next step in the journey

Maintain the two membership bodies – AICPA and CIMA –while integrating their strategies, management and operations

Deliver better and more relevant resources for members

Strengthen advocacy, speaking with the power of more than 600,000 professionals worldwide on critical issues important to you

Recognize and support public and management accounting as critical components of the end-to-end accounting profession

Elevate awareness of the CPA and CGMA and the opportunities they unlock

Requires a membership vote from both AICPA and CIMA

Evolve the existing joint venture into an association that is the voice of professional accounting worldwide.

Those who build great companies understand that the ul8mate throZle on growth for any great company is not markets, or technology, or compe88on, or products. It is one thing above all others: the ability to get and keep enough of the right people. -‐ Jim Collins

War for Talent MACPA Pipeline Ini8a8ves

MACPA Leadership Academy – August, 2015

Next class – August 24-‐26, 2016

MACPA Student Leadership Academy – June, 2015

Next class – June 2-‐4, 2016

New CPAs Swearing-‐in Ceremony

November 10, 2015 Hilton BWI Hotel 6:30pm – 9:00 pm

Guide for Becoming a CPA www.cpaguide.macpa.org

BLI & Future of Learning

1. Social Learning.2. Mobile / nano3. Cloud-based 4. Collaborative.5. Competency-based learning

5 Steps to be Future Ready

1. Context 2. Certainty3. Capacity4. Competence 5. Core Beliefs

Context!

Gradual then Sudden!

Exponential growth fueled by Technology (Moore’s Law)!

Moore’s Law visualized 25,600 Times More Storage

Exponen8al Times Value of Smartphone & Apps

More Uber cars than yellow taxis on the road in NYC

AirBnB Rooms available surpasses Hilton & Marriott

Gradual then Sudden

92% of CPAs are!NOT

Future Ready!!Future Ready is the

capacity to be aware, predictive, and adaptive of emerging challenges, tech innovations, and trends and

changes in business, population, and social

environment.!

Source: CPA.COM 2014 CPA of the Future Study!

'If the rate of change on the outside exceeds the rate of change on the inside, the end is near.’ – Jack Welch

Will your job be done by a machine?

Source: NPR Planet Money, May, 2015

Certainty!

ANTICIPATION Strategic Thinking External Awareness

Vision Con8nuous Learning

Innova8on Crea8vity

Problem Solving Priori8za8on

Business AcumenDecisiveness Influencng/Persuading Emo8onal Intelligence Consensus Building

Collabora8on Inspira8on

Risk Management

An8cipatory Organiza8on: Accoun8ng/Finance Edi8on www.blionline.org/ao

Three Hard Trends: 1. Government Regula8on 2. Technology 3. Demographics

Capacity!

The Top 6 Ways to Create Capacity in your Organization

•  Maximize software & tools you have•  Use the latest and most efficient technologies•  Workflow & Process Efficiency•  Focus on your best ‘A’ clients•  Communicate your services (cross-sell)•  Engage your people

http://www.blionline.org/ao

Competency!

Maryland Public Company Collaboration Top Four Issues

1.  Learning & Talent Development 2. Global Structure of Finance

Function 3. Managing Risk & Innovation 4.  Insight to Action*

* This started our journey to research the competencies needed for accounting and finance professionals to provide “insight to action” and shift from reactive to proactive.

ANTICIPATION Strategic Thinking External Awareness Vision Con8nuous Learning Innova8on Crea8vity Problem Solving Priori8za8on Business Acumen Decisiveness Influencing/Persuading Emo8onal Intelligence Consensus Building Collabora8on Inspira8on Risk Management

An8cipatory Organiza8on: Finance / Accoun8ng Edi8on

CGMA Competency Framework

Core Beliefs!

Integrity Competence Lifelong learning Objec8vity Commitment to excellence

Protect the Core

CPAs…Making sense of a changing and complex world

5 Steps to be Future Ready1. Context 2. Certainty3. Capacity4. Competence 5. Core Beliefs

V A L U E

Adding Insight for Action

Information

Wisdom

Knowledge

Data

Compliance

Reliance

Source: CGMA & DIKW Pyramid

V A L U E

Calendar!

Tom Hood, CPA, CITP, CGMA

•  CPA Practice Adviser Accounting Hall of Fame

•  Named the Second Most Influential in Accounting by Accounting Today Magazine 2015, 2013

•  Top 150 Influencer by Linked-In •  Top 25 Influencers in Learning & HR by HR

Examiner •  Top 25 Public Accounting Thought Leaders

by CPA Practice Adviser •  Working on Learning Management with

AICPA/CPA2Biz, Cloud Curriculum, Performance Management /XBRL, Leadership & Generations

CEO Maryland Association of CPAs (MACPA) www.macpa.org Business Learning Institute (BLI) www.blionline.org

http://www.linkedin.com/in/tomhood/

Hood's greatest aGribute isn't that he consistently glimpses the future more quickly than the rest of us (though he does). It's that he's able to bring it back to the present and serve as its 0reless, inspiring and effec0ve champion. – Accounting Today