Professional Issues Update for Learning Professionals

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?


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


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


The tornado of changes from CPA Vision Project circa 2000


Remember the good old days?


“What got you here, won’t get you there.” - Emmanuel Gobillot - Leadershift

This time it is different.


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


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


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)


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$


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$


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


• Change• Complexity• Compliance• Convergence• Cascade• Competition 19

The Letter for today is “C”


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4x=1890 7x=1670

Change


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%


6,000 pages500 Million words

17,000 pages

The CPA Profession and CPE


How is your knowledge inventory?


Compliance


When do we think about infrastructure?

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Federal Laws& Regulations

State Laws & Regulations

ProfessionalStandards


• 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


28Danger


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


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.”


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


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


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


• Continuous Learning

• Collaboration• Competencies

= Career Success! 40

The Letter for today is still “C”


“...where the most important skill is the ability to acquire new skills.”

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Picture: John Drake - Flickr


2"It really is about this...


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.


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


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


Training Spending is back on the rise


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!$


Our$Distribu*on$Channels$

Public$ On4site$ e4Learning$


!"!!!!

!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!


Haven’t we been here before?

1992 2001

2001 2011

CPE$Profession$–$Training$0Environmental$Scan$

20092006


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


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


Professional Issues Update for Learning Professionals

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