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Fall Town Hall PIU

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Lookout Post

2016 The State of My Industry: Accounting

Tom Hood, CPA, CITP, CGMA fluencer#MyIndustry@tomhood

Big Waves of ChangeOceans of Opportunity

“We stand on the brink of a technological revolution that will

fundamentally alter the way we live, work, and relate to one another. In its

scale, scope, and complexity, the transformation will be unlike anything humankind has experienced before.”

Borrowed from the US Army War College, VUCA was coined by The Institute for the Future to describe the rapidly changing and complex business environment since the Great Recession of 2008.

Technology is #1 Hard Trend

Source: Miovision July 17, 2013 “The Internet of Things and Transportation”

From the World Economic Forum in Davos, 2016

A 3-D printed carbon fiber house and SUV that share energy and will disrupt these industries:1.  the construction and building industry, including suppliers, supply chain, and

unskilled labor;2.  the automotive and transportation industry, including components makers and the

classic assembly line; and,3.  the electric-utilities industry.

Race Against the Machines?

Source: Frey & Osborne – The Future of Employment – Oxford University

Source: CPA.COM Insight into the CPA of the Future Study 2014

92% of CPAs are NOT Future Ready

Future Ready is the capacity to be aware, predictive, and adaptive of emerging trends, innovations and

changes in business, population, and the social environment.

The Fourth Industrial Revolution

Cognitive Computing has three unique capabilities: 1) natural language processing, 2) hypothesis generation and evaluation, and 3) dynamic learning.

Are we at a Strategic Inflection Point?

“You can’t stop the waves, but you can learn how to surf.”

– Jon Kabat Zinn

Oceans of Opportunity

91%

Of firms expect to continue

record hiring levels

11%

Projected accounting job growth between 2014 and 2024

Demand for Accounting is Strong

And according to the DOL BLS, faster than the average for all occupations

References: US Department of Labor, Manpower Group Talent Shortage 2015

38%  of  employers  interna2onally  report  talent  shortages  in  2015  

2009:  30%  

Employment  of  accountants  and  auditors  is  projected  to  grow  11  percent  from  2014  to  2024,  faster  than  the  average  for  all  occupa2ons  –  US  Dept  of  Labor  2015  

Accoun2ng  and  finance  staff  

#1  in  demand    

#8  in  talent  shortage      

Demand for Accounting is Strong

•  2 of Top 10 Best Jobs (US News & World Report) •  Top 20 Happiest Professions (Huff Post) •  Top 10 in Demand Jobs/Hardest Jobs to Fill –

(Manpower Group)

And Career is Attractive

# 1 Most Profitable

industry according to Sageworks

# 1 In small/mid-size business growth rates averaging

12% in 2016

Demand for Accounting is Strong

The Rise of the #DigitalCPAShift from Tangibles to Intangibles

Accoun2ng  firms  con2nuing  diversifica2on  

$50  billion  

40  

30  

20  

10  

2010  

$42  

$9  

$12  

$19  

Revenue split at top 100 accounting firms

2014  

$54  

$17  

$15  

$20  

Advisory services

91% growth! now nearly one-third of revenue

Tax 17% growth

but now just over one-quarter of revenue

Audit and accounting 6% growth

now 37% of revenue — was 45% in 2010

Other

CFO à COO à CEO

There is a growing trend in CFOs moving to new roles as COOs and even CEOs as they lead business transformation.

•  And Learn how to surf

Six Steps to Ride the Waves1.  Embrace Digital.2. Anticipate.3. Collaborate.4.  Learning as the next

competitive advantage.

5.  Protect the Core (Purpose & Values).

6. Make time for the future.

ANTICIPATION  Strategic  Thinking  External  Awareness  

Vision  Con2nuous  Learning  

Innova2on  Crea2vity  

Problem  Solving  Priori2za2on  

Business  AcumenDecisiveness  Influencng/Persuading  Emo2onal  Intelligence  Consensus  Building  

Collabora2on  Inspira2on  

Risk  Management  

An2cipate!  

Three  Hard  Trends:  1. Government  Regula2on  2. Technology  3. Demographics  

Legislative / Regulatory / Standards

Federal •  Tax Due Dates changes •  Mobile Workforce legislation

Federal Regulators •  DOL Overtime Standards

Standards •  Peer Review Future of Practice Monitoring In Progress •  CPE Standards – due October 1, 2015 •  CPA Exam Standards due November 30, 2015 •  FASB Not-For-Profit Exposure Draft Comments •  Revenue Recognition

Mobile workforce

Patent holding companies

* DOL overtime

* Cash basis

* IRS Service Levels

* Top Priorities of Maryland Managing Partners  

IRS Issues

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  con2nuing  educa2on  and  boost  quality.    We  believe  the  contents  of  these  leders  to  be  reasonable  under  the  circumstances.”    

 -­‐  AICPA  Regulatory  Affairs    

Stats  from  DOL  Maryland  is  16th  in  #  of  plans/par2cipants/assets  with  282  firms  audi2ng  1,614  plans  with  3  million  par2cipants  and    $264.12  billion  in  plan  assets  24%  of  all  audits  and  22%  of  all  plans  

“if you don’t have time to participate in the legislative process, be prepared to accept the consequences of those

who do.” 3,400 bills filed in 2016 up from average of 2,500!

Legislative / Regulatory / Standards

State Board •  Positioning for Firm Mobility •  CPE tracking and audits •  Peer Review

State •  Offense

- Supersedeas (Appeal Bond) Caps - Tax Dues Dates - Wynne Interest Rates - Peer Review – Subpoena Power - Firm Mobility

•  Defense - Oppose Mandatory Paid Leave - Stop Comparative Fault – Liability - Stop Sales Taxes on Services

Jeff  Lawson  tes2fies  in  SUPPORT  -­‐  SB  1024  

MACPA in Annapolis

•  Reduc2on  in  Rates  •  Corporate  Single  Sales  Factor  

•  Interest  Rate  on  Tax  Deficiencies  &  Refunds  

Jerry  Beard  -­‐  STAX  

Are you Leading the Transformation of Finance and Accounting? !

“The real way it was in finance—in the world I grew up in—is we spent all our time looking backwards…[Modern Finance and Accounting] is now it’s about looking to the future.” – Safra Catz, CEO of Oracle (formerly CFO)

Integrated Reporting – Integrated Thinking!

Understanding, accounting and managing the ‘capital assets”!

CFO à COO à CEO

There is a growing trend in CFOs moving to new roles as COOs and even CEOs as they lead business transformation.

The Shift Change

1.  Leadership!2.  Learning!3.  Technology!4.  Generations!5.  Workplace!

The  Shil  Change  sets  the  context  around  the  workplace  –  How  can  we  be  nimble  and  

innova2ve?  

The challenge & opportunity is to make the shift from the first curve to the second curve at the right time and with the

right strategy

New  rules:  Go  to  war  for  talent  

www.blionline.org

The BLI Magnetic Firm Framework

Creating the Magnetic FirmPurpose Driven Great

LeadershipCulture

Of GrowthInspiring

WorkplaceVision, Purpose and Values based

Transparent and Inspirational Leadership

Learning Culture- Self and Formal Development

Flexible and Open Work Environment

Focus on Strengths and Positivity

Build Consensus and Commitment

Career & Growth Orientation – Career Paths

Work/Life Balance

Inclusive and Diverse Leadership Development at all levels

Customer focused Coaching and Feedback

High Performance – Insight to Action

Anticipatory and Proactive

Collaborative and Team based

Effective Technology Tools - mobile

What’s your purpose?

Core values:•  Integrity•  Competence•  Lifelong learning•  Objectivity•  Commitment to excellence

CPAs…Making sense of a changing and complex world

CPAs are trusted advisors who help people and organizations shape their future. Combining insight with integrity…

Case  Study  

MACPA/BLI would make the “shift” and create an open collaborative environment to increase

collaboration, learning, and our ability to move faster.

Our  Three  Goals  

Goal  1.  Help  employees  iden2fy  and  address  the  challenges  and  opportuni2es  that  have  the  greatest  impact  on  the  business.  Goal  2.  Help  employees  strengthen  high-­‐impact  connec2ons  by  enabling  them  to  collaborate  easily  with  others  inside  and  outside  the  organiza2on.  Goal  3.  Amplify  the  impact  of  those  efforts  by  building  an  infrastructure  that  allows  small  improvements  to  scale  easily  across  the  organiza2on.  

Photo by Gwenaël Piaser - Creative Commons Attribution-NonCommercial-ShareAlike License http://www.flickr.com/photos/22841923@N02   Created with Haiku Deck  

MACPA’s Digital Transformation (Cloud/Mobile) Strategy

1.  Digitization & workflow –shifting resources and systems to growth areas

2.  Virtualization – Moving IT infrastructure to cloud

3.  Transformation to cloud – Increase use of existing systems of engagement (collaboration and communication tools)

4.  Transformation to cloud – New cloud based systems – accounting

5.  Transformation to cloud – Move AMS and MACPA website

MACPA/BLI Office Move!

BLI & Future of Learning

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

Slack

Develop our APP Solution Bundle

app ecosystem!

collaborative!

We have not arrived…!

#FutureReady!Is the capacity to be anticipatory (aware, predictive and adaptive) of emerging technology and trends in business, demographics, and the social environment impacting your organization and industry.!

The ResearchThe latest research inside and outside the CPA Profession re-affirms the Top Competencies and Skills needed by Accounting and Finance Professionals

Leaders need new skills in a VUCA world

•  Anticipating and reacting to the nature and speed of change.

•  Acting decisively without always having clear direction and certainty.

•  Navigating through complexity, chaos, and confusion.

•  Maintaining effectiveness despite constant surprises and a lack of predictability.

Source: Conference Board 2015 Ready-Now Leaders Report

25% are not VUCA ready

3X Performance in Top 20%

CPA Horizons 2025 (AICPA)

The CPA Horizons 2025 Report by the AICPA researched the Top Competencies needed by the CPA Profession for the future (2025) and was validated by thousands of CPAs in a grassroots electronic and in-person facilitations.

The Chartered Global Management Accounting Competency Framework was developed in 2014 by the AICPA and CIMA Joint Venture and follows the BLI ‘Bounce’ Framework.

Top Skills Needed for Accounting and Finance Professionals

BLI Research in 2015 with over 1,000 responses from all segments of the CPA Profession identified these top skill needed to be successful in these rapidly changing times. This confirms and reinforces the research from the Conference Board, AICPA CPA Horizons 2025 report, Bersin, and Burrus Research..

75% covered by these Top 5

Skills

This led to our work with world renowned futurist and business advisor and best-selling author, Daniel Burrus of Burrus Research. We worked with Dan to add the context of the accounting and finance profession to his Anticipatory Organization learning system to create the Anticipatory Organization” Accounting and Finance edition .

http://www.blionline.org/ao

Learn How to

Anticipate!!

•  An2cipa2on  •  Strategic  Thinking  •  External  Awareness  •  Vision  •  Con2nuous  Learning  •  Innova2on  •  Crea2vity  •  Problem  Solving  •  Priori2za2on  

•  Business  Acumen  •  Decisiveness  •  Influencing/Persuading  •  Emo2onal  Intelligence  •  Consensus  Building  •  Collabora2on  •  Inspira2on  •  Risk  Management  •  Communica2on  

In November, 2015 we developed a strategic partnership with Daniel Burrus, a world-renowned global futurist and business consultant who had researched the top competencies requested in his work with many Fortune 500 companies. These aligned with own research at BLI.

Jump  the  Disrup2on  Curve  

D x V x F > R Dissa9sfac9on  with  Status  Quo  =  Shared  meaning  and  context  created  collabora2vely    

Vision  for  future  –  Strat  House  and  agreement  on  Top  5  Opportuni2es    

First  steps  -­‐  Top  5  ac2ons  using  Strat  House  or  Ac2on  plans  

The  Change  Equa2on  Breaking  the  Pull  of  the  Past  

Resistance  to  change  

Mapping the AOAF learning program to the CGMA

Competency Modelshows comprehensive coverage of these skills

ANTICIPATION  Strategic  Thinking  External  Awareness  

Vision  Con2nuous  Learning  

Innova2on  Crea2vity  

Problem  Solving  Priori2za2on  

Business  Acumen  Decisiveness  

Influencing/Persuading  Emo2onal  Intelligence  Consensus  Building  

Collabora2on  Inspira2on  

Risk  Management  Communica2on  

An2cipatory  Organiza2on:  Finance  /  Accoun2ng  Edi2on  

CGMA  Competency  Framework  

Mapping the MBA Express learning program to the

CGMA Competency Modelshows comprehensive coverage of these skills

•  ADDING  VALUE:  GeOng  the  most  by  giving  the  most  

•  BUSINESS  STRATEGY:  Thinking,  planning,  ac9ng,  and  leading  

•  LEADERSHIP  STRATEGY:  Taking  people  to  new  places  and  higher  ground  

•  PERFORMANCE  MANAGEMENT:  GeOng  to  be[er  results,  faster  

•  POWERFUL  COMMUNICATION:  Conveying  meaning  and  earning  an  audience  

 

MBAexpress  (All  modules)  CGMA  Competency  Framework  

AOAF recognized as 2016 Top Learning Product

"As knowledge workers and professionals whose value springs in large part from their expertise, accountants are both serious about their ongoing education, and well-positioned to capitalize on new ideas and new ways to demonstrate their competence to clients…

The point of the coursework is to teach you, literally, how to predict the future by identifying reliable trends — and it actually works. The applications for firm strategy, client service, and guiding your own career are endless.”

It also saw a push on different ways to educate the profession, including in small bites…offering to help accountants boost their careers by bringing more value to the table.

"The  An2cipatory  Organiza2on  Learning  System  helps  establish  a  mindset,  a  common  language  and  eventually  a  culture  of  being  an2cipatory  for  our  clients.  By  making  this  an2cipatory  skillset  a  core  strength  of  our  teams,  it  brings  crea2ve  and  new  ideas  that  make  us  more  valuable  to  our  clients  and  it  creates  a  game  changer  for  our  firm.”        -­‐  Joey  Havens  Execu2ve  Partner,  HORNE  LLP  Top  50  CPA  Firm    

•   It’s  possible  to  see  what’s  coming  based  on  hard  trends.    Important  in  posi2oning  our  organiza2ons  for  future  success  and  iden2fying  our  next  compe22ve  advantages.  

 •  It  was  interes2ng  to  me  that  even  if  a  sol  trend  is  based  on  a  

sol  assump2on,  it  could  s2ll  be  rela2vely  likely  to  happen.    •  It’s  possible  to  an2cipate  disrup2on  and  stay  ahead.    Important  

because  it  opens  all  kinds  of  possibili2es.    •  I  learned  how  to  think  differently.    It  takes  prac2ce  but  it’s  

worth  it.    

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  a/ribute  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  Breless,  inspiring  and  effecBve  champion.                                        – Accounting Today

Membership Organization How we connect, protect, and achieve.

Norfolk  pines  

"The  best  2me  to  plant  a  tree  was  20  years  ago.  The  second  best  2me  is  now."  

MACPA  Delega2on  to  AICPA  Council  at  Regional  Council  in  NY  

Competency  framework  

Global  Management    

Accoun2ng  Principles  

CGMA  Exam  

CGMA  code  of  ethics  

Professionaliza2on  of  Management  Accoun2ng  

MACPA  Student  Leadership  Academy  –  June,  2015  

Next  class  –  June  2-­‐4,  2016    

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

New  CPAs    Swearing-­‐in  Ceremony  

MACPA  Leadership  Academy  –  August,  2015  

Next  class  –  August  24-­‐26,  2016    

Maryland  is  the  best  state  in  the  na2on  to  have  your  CPA  license  –  Maryland    Senator  Brian  Feldman,  CPA  

Calendar!

Upcoming  events  and  programming  for  Business  &  Industry  members  

If there is a conversation about the future of the profession, you're bound to hear Hood's name mentioned as one of the people leading the way. – Accounting Today

Tom Hood, CPA, CITP, CGMA

CPA Practice Adviser Accounting Hall of Fame Named the Second Most Influential in Accounting by Accounting Today Magazine 2015 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/