One thing every CPA agrees on is that this time it’s different. The question on everyone’s mind is what is the new normal? What are the major trends and issues you must be paying attention to? Tom Hood will share his insights on the four mega-trends affecting the CPA profession – Globalization, Workforce/Demographics, Technology, and Regulations/Standards and what they mean to your firm. You will also learn how leadership has fundamentally changed and what you can do to get ahead of the next waves of change.

1. The CPA Firm Today
How to Succeed in the New Normal
Wynn Hotel
Las Vegas, Nevada
November 17, 2010
Presented by:
Tom Hood, CPA.CITP
CEO
Maryland Association of CPAs
Business Learning Institute
1

2. The Recession is over? Smooth sailing ahead?

3. Or does it feel more like this?
Will the speed of change increase or
decrease?
Will things get more complex or
less complex?

4. Ever feel like this?
The Five C’s
• Change
• Complexity
• Compliance
• Convergence
• Competition

5. “As it relates to science and technology, the rate of
change in the next decade, is likely to be 4 to7 times
faster than in the last decade. If it is 4x faster it
would be like planning for 2010 in 1890, if it is 7x
faster it would be like planning for 2010 in 1670.”
-Expert on Education Panel, The Aspen Institute

6. Re-Set, Re-Think, Re-Imagine – The
new normal won’t be like it was before
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 Major Firms Group

7. Compliance - Regulations & Standards

8. The Federal Issues
• FTC Red Flags rule –
privacy & identity theft
• Tax Preparer Registration
& PTIN issue
• Patient Protection Act &
1099’s
• Sub S. Employment Tax
Issue
• H.R.5297 - Small Business
Jobs and Credit Act of
2010

9. Another way to look at standards & oversight
Public Company Private Company Int’l Company
Financial SEC FASB IASB
Reporting
FASB PCFRC IFRS & SME
Audit /Attest
AICPA
Performance
Standards
PCAOB ASB, ARSC, PRB
IAASB
Code of AICPA AICPA
Conduct
PEEC PEEC
IFAC
CPA
State Oversight & Enforcement of CPA License
Licensure

10. Globalization
As the globe
shrinks, oppo
rtunities
grow for
CPAs

11. Technology
• Cloud
• Mobile
• Location-based /
Augmented Reality
• Security / Privacy
• Social Media
• XBRL

12. Workforce & Demographics – Are you
ready for the shift change?
Email Facebook
Generation Generation
• 5 Generations at work
• Work-life balance line
• The Digital divide

13. The CPA Profession
Flat is the new growth
3% average growth
Some declines
Competition is increasing
Merger-mania continues

14. Top Ten Issues for MFG
1. Regulatory/Legislative (56)
2. Private Company Leadership (47)
3. Capital Markets Awareness / Recognition (34)
4. Rethinking Business Model (25)
5. Protect Audit/CPA Franchise (20)
6. Risk Management (Audit efficiencies) (20)
7. Leadership Development / Succession Planning (19)
8. Global / International (Clients / IFRS / Branding) (17)
9. Leveraging Technology & Social Media (17)
10. MFG Issues specific forums / focus groups (8)
14

15. Turbulent times require new skills and new
ways of thinking
“You can’t stop the waves, but you can learn to surf”
- Jon Kabat-Zinn
Photo: Pratt’s surfing page

16. Is leadership changing in the new normal?
“What got you here won’t get you there.”
– Emmanuel Gobillot - Leadershift

17. What Leadership does is the same…
• Engagement
• Alignment
• Commitment
• Accountability
“First I get all of my men facing the same direction.”
- Napoleon

18. How Leadership gets it done is changing!
From: Command & Control
To: Connect & Collaborate

19. Welcome to the New Normal! The Workplace
of the future is here
1. Freedom – The freedom to work when
and where you want
2. Customization – My job my life
3. Scrutiny – I know what you did last night
4. Integrity – Be a good company to work for
5. Collaboration – Teamwork
6. Entertainment – Work should be fun
7. Speed – Let’s make things happen now!
8. Innovation – Let me invent
“…when technology, demographics and global economics collide you are faced with a
category six (6) business revolution”
– Don Tapscott & Anthony Williams - Wikinomics

20. Zappos – the future of work

22. We want you to listen
& we want to start a movement
22
AICPA Leadership Academy – October 4-7, 2010 – Meeting summary by Business Learning Institute

23. The Five Qualities of Extraordinary
Leaders
1. Sight - Ability to see emerging
LC
“To keep pace in your industry, let
alone excel as a leader, requires
patterns and shift perspective when
necessary
2. Insight - Ability to learn faster than
the rate of change in your industry
3. Create - Ability to think strategically
your rate of learning to be greater
and creatively to gain insights that
than, or equal to, the rate of
create new opportunities and foster
change.”
innovation
4. Communicate - Ability to
collaborate inside and outside your
organization and to build and sustain
social networks of people engaged in
the work
5. Inspire – Ability to mobilize support
and engage others to join you in
ACTION 23

24. Leadership in the new normal
Three Critical Competencies
Built on strengths
Strengths- and positivity
Future-minded Based Self-awareness
and flexible mindset
Leadership In the moment
Ability to make
your thinking Strategic
visible to others Thinking
Network
Collaborative and
curious with the ability Leadership
to ask powerful questions Boundary
Crossing
Capable of engaging and
Inspiring people
AICPA Leadership Academy – October 4-7, 2010 – Meeting summary by Business Learning Institute 24

25. Putting it all together
- 4 Questions for Leaders
• Who are we?
• Where are we going?
• Why are we going there?
• How are we going to get there?

26. How can we make What
sense of the possibilities
changing & do we see?
complex world? What direction
should we go?
What does What new
it mean to future can we
us? create?
How is the
world
changing?
Who do we
need to enlist
to help us?

27. Culture Matters – Collaborate & Connect
20% Growth – 10% Organic 10% M&A
Very Low Turnover

28. What engagement
looks like –
Maryland CPA
Firm involving
their entire team
in strategic
planning

29. Leader as facilitator of powerful questions
The four most
important words
for organizations
are, “what do you
think?”
- Tom Peters

30. Put the odds in your favor
Leadership = Multiplication
•15 X – ROI strategy as
process & alignment
•8 X – Engagement & Trust
•3 X – Positivity
•20X – Return on Culture

31. Five Keys to Success in the New Normal
The Flywheel Effect
1. Strategic Planning continuously
2. Collaborative environment
3. Culture that focuses on people
4. Seek Opportunities & Builds on
Strengths
5. Harness the new skills & tools

32. The Tortoise was right
Sometimes you have to go slow to go fast

33. Elvis was wrong!
What we need is
a little more
conversation!

34. The only question for leaders
Have I made
you feel
stronger and
more capable?
Source: Emmanuel Gobillot -
LeaderShift

35. Tom Hood, CPA.CITP
CEO
Maryland Association of CPAs
Business Learning Institute
(443) 632-2301
E-mail tom@macpa.org
Web http://www.macpa.org
Blog http://www.cpasuccess.com
http://www,bizlearningblog.com

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