professional issues update for learning professionals
DESCRIPTION
What are the latest trends facing the CPA Profession? and what about the impact on the learning professionals that serve CPAs? This presentation is for the NE CPE 2012 Conference in Clearwater, Florida for the AICPA & State CPA Society Professional Development & CPE Directors.TRANSCRIPT
ProfessionalIssuesUpdatefor CPEProfessionals
By: Tom Hood, CPA, CITP, CGMA
2012 North East CPE Conference
February 20, 2012Clearwater, FL
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“# 1 reason organizations fail is that they miss the weak signals of disruptive change.”
– Andrew Zolli
What is the #1 reason organizations fail?
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Re-Set, Re-Think, Re-Imagine - 2011
Anticipation of a very large business model change amidst rapid change – Steve King
There are two recessions – the obvious one and the not so obvious, the end of the
industrial age where perfecting the model was the key. The new model will be completely different. – Seth
Godin#4 Rethinking the Business Model (25)
from AICPA MFG
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In our hyper-networked, mobile, social, global world, the rules and plans of yesterday are increasingly under pressure; the enterprises and individuals that will thrive will be those willing to adapt in a disciplined, unsentimental way.
Generation Flux is a term that describes all of this - the chaotic business era that we have moved into - as well as the people who are poised to thrive in this environment. - Robert Safian - editor FastCompany
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The tornado of changes from CPA Vision Project circa 2000
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Remember the good old days?
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“What got you here, won’t get you there.” - Emmanuel Gobillot - Leadershift
This time it is different.
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You ain’t seen nothing yet!
The idea of a hierarchy that fundamentally empowers the few and disempowers the many is more or less dead. - Gary Hamel Forbes
“Command and control hierarchical structures are being disintegrated” - Danah Boyd - Microsoft Researcher
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If Content is kingContext is the kingdom!
- Will Avgerakis - AICPA
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1. Changing demographics - Aging workforce, diversity, 4 generations in the workplace
2. Increased globalization, economic shifts and increasing competition 3. The technological revolution - cloud, social, big data & XBRL 4. Issues around information security, privacy & data integrity 5. Shift to consumer and employee power (from push to pull) 6. Changes in the way we communicate - mobile, txt, skype 7. Work-life challenges or conflict - "do more with less", 24/7 work 8. Information Overload - filter failure 9. Increasing complexity of rules and standards (IFRS, GAAP, PCAOB,
SEC) 10. Economic uncertainty - deficit, debt and pressure on government
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1. Partner Accountability
2. Bringing in New Clients
3. Retention of Current Clients
4. Fee Pressure / Pricing of Services
5. Developing a Succession Plan
Top Five Issues Facing CPA Firms (PCPS)
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Top$Seven$Issues$Facing$CPA$Firms$Issues$Facing$CPA$Firms$
1. Succession$planning$2. Accountability$and$buy>in$3. Communica@on$(lack$thereof)$4. Managing$millennials$5. Work$/$life$balance$6. Leadership$development$7. Managing$change$
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Top$10$Issues$–$Maryland$CFOs$
1. Communica:ng$effec:vely$(new$tools$vs.$faceBtoBface)$
2. Talent$/$training$/$succession$planning$3. Economic$environment$4. Genera:onal$/$workBlife$balance$5. Supply$chain$/$rising$costs$6. Strategic$planning$in$uncertainty$7. Financial$literacy$about$business$8. Increasing$government$regula:ons$9. IT$security$/$privacy$10. Mul:Btasking$and$increasing$workload$
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Our new research bears out that the human dimension – relationships with customers, employees, partners and communities – will be key to getting things moving again and sustaining success over the long run.
CGMA & your Business & Industry members
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• Change• Complexity• Compliance• Convergence• Cascade• Competition 19
The Letter for today is “C”
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4x=1890 7x=1670
Change
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Complexity“the biggest challenge facing enterprises from here on will be the accelerating complexity and the velocity of a world that is operating as a massively interconnected system.”
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79%51%
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6,000 pages500 Million words
17,000 pages
The CPA Profession and CPE
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How is your knowledge inventory?
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Compliance
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When do we think about infrastructure?
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Federal Laws& Regulations
State Laws & Regulations
ProfessionalStandards
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• Accountancy bills (20 states) - 51
• Auditor Rotation (3 states) - 8
• Mobility (2 states) - 6
• Regulation of Tax Preparers (3 states) - 5
• Tax on Accounting Services (6 states) - 11
• Peer Review (4 states) - 7
• State Board Consolidation (6 states) 8
State Legislation and Regulatory
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28Danger
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Tsunami of 1099K and info returns
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CPAs in TaxThe increase in IRS activity is swamping our tax practitioners and costing them hundreds of hours in chasing down IRS notices.
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Convergence31Monday, February 20, 12
SEC$FASB$
FASB$PCFRC$
IASB$IFRS$&$SME$
PCAOB$ AICPA$ASB,$ARSC,$PRB$
IAASB$
AICPA$PEEC$
AICPA$PEEC$
IFAC$
PublicCompany
Private Company
Int’lCompany
FinancialReporting
Auditing
Ethics
State Boards of Accountancy
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Cascade
“a series of steps or stages that, once initiated, continues to the final step because each step is triggered by the preceding one, resulting in amplification of the signal, information, or effect at each stage.”
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Sarbanes-Oxley Act of 2003
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Dodd-Frank - the bill that keeps on giving
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CPAs required to register as debt settlement advisors
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Cascade!
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MACPA�s Social Media Map
82,027 views
80,568 views
450 members 3,570 followers
1,251 connections
450 connections
Top 50 Business Blogs - 2011
Top Accounting Blogs – 2009, 2010, 2011
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The generation gap is widening
"For Gen Y, training and development is the most highly valued employee benefit. The number choosing training and development as their first choice of benefit is
THREE times higher than those who chose cash bonuses."
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“You can’t stop the waves, but you can learn to surf”- Jon Kabat-Zinn
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• Continuous Learning
• Collaboration• Competencies
= Career Success! 40
The Letter for today is still “C”
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“...where the most important skill is the ability to acquire new skills.”
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Picture: John Drake - Flickr
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2"It really is about this...
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3 Critical WorkforcePriorities1.Rapidly developing workforce skills and capabilities2.Fostering collaboration & knowledge sharing3.Developing future leaders
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Wisdom from the MACPA Leadership Academy
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According to these young professionals, the future is one in which CPAs:
● are proactive, flexible, adaptive and collaborative by nature;● have regained the trust of their clients and
the public at large;● have successfully bridged the profession’s
“leadership gap” by focusing on succession planning, personal growth, and generational cooperation;● have created the profession’s premier
global industry standards and best practices;● have redefined the profession through
work / life integration, collaboration, and a team-first approach; and● have earned a reputation as technological
innovators.
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The collaboration curve replaces the experience curve
“The organizations that will become the household names of this century will be renowned for sustained, large-scale, efficient innovation.
The key to that capability is neither company loyalty nor free-agent autonomy but, rather, a strong collaborative community.”
HBR, July-August 201147
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How to increase your Complexipacity
1.Improved forecasting methods2.Better risk mitigation3.Making tradeoffs4.Ensuring diversity of thought (collaboration)
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■ Companies increase training to fill skill gaps
■ Training groups gain efficiencies■ Extending the reach of the training
organization■ Changing roles with the L&D
function■ Making it stick - reinforcement■ Social learning becomes
mainstream■ Outsourcing for efficiency 49
Trends in Learning & Development
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Training Spending is back on the rise
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Our$Challenge$
Tradi/onal$Training$
E2Learning$25%$
New$Compe//on$
Google$search$for$CPE$shows$42,500,000$results$1,260,000$in$Maryland$alone!$
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Our$Distribu*on$Channels$
Public$ On4site$ e4Learning$
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!"!!!!
!500!!
!1,000!!
!1,500!!
!2,000!!
!2,500!!
!3,000!!
2001! 2002! 2003! 2004! 2005! 2006! 2007! 2008! 2009! 2010! 2011!
MACPA%&%BLI%*%CPE%Course%Revenue%by%Fiscal%Year%
Public!Course!Revenue!
In"House!Course!Revenue!
Webcast!Revenue!
e"learning!
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Haven’t we been here before?
1992 2001
2001 2011
CPE$Profession$–$Training$0Environmental$Scan$
20092006
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Paul DePodesta - VP of Player Development for the New York Mets formerly Asst GM of Oakland A’s
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Adopt a moneyball mindset
1. Ask the naive question2. Be the house (measure, odds, risk)3. A willingness to try anything4. look around (especially outside)5. Confidence matters - believe in yourself
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Become a Linchpin
1.Providing a unique interface between members of the organization2.Delivering unique creativity3.Managing a situation or organization of great complexity4.Leading customers5.Inspiring staff6.Providing deep domain knowledge7.Possessing a unique talent
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A leader’s job is to provide hope and inspiration...
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Tom Hood CPA, CITP. CGMA CEO
Business Learning InstituteMaryland Association of CPAs
http://www.bizlearning,net
(800) [email protected]
Follow me on: Twitter: http://www.Twitter.com/tomhood
LinkedIn: http://www.linkedin.com/in/tomhood Facebook: http://www.facebook.com/thoodcpa
Plaxo: http://tomhood.myplaxo.comSlideshare: http://www.slideshare.net/thoodcpaYoutube: http://www.youtube.com/thoodcpaSecond Life avatar name: Rocky Maddaloni
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