The document discusses the need for CPA firms to reinvent themselves through innovation. It notes that while most firms see the need for innovation, few have identified clear innovation priorities or developed an innovative culture. The document provides strategies for firms to develop an innovation mindset, including understanding trends, prioritizing innovation initiatives, and cultivating skills like strategic thinking. It emphasizes that innovation must be a firm-wide, continuous effort to develop new offerings that create value for both existing and new clients.
14. Reinvention is not changing what
is, but creating what isn’t. A
butterfly is not more caterpillar
or a better or improved
caterpillar; a butterfly is a
different creature.
15. “The definition of innovation is
broadening. Once deemed the
exclusive province of R&D
departments, it is now widely
accepted as a fundamental part
of every aspect of a business.”
Source: CGMA Report Managing Innovation:
Harnessing the power of Finance
18. #PSTech
“One interesting finding of the survey is that
CPA firms, early majority or not, don’t really see
a competitive threat from specific challengers.”
– Erik Asgeirsson – CEO of CPA.COM
19. Race Against the Machines?
Source: Frey & Osborne –The Future of Employment – Oxford University
20. 74%
Next gen leaders do not believe their
organizations are encouraging practices
that foster innovation
Source: Deloitte Millennial Survey
30. Creating the Magnetic Firm
Purpose Driven Great
Leadership
Culture
Of Growth
Inspiring
Workplace
Vision, 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
EffectiveTechnology
Tools - mobile
31. The Six Steps of Talent &
Leadership Development
1. Talent & Leadership Strategy
2. Competencies
3. Career Path (Ladder)
4. Curriculum & Content
5. Compliance & Governance
6. Communicate and Inspire
34. !
10 Types of Innovation: Many
Options
Source: Ten Types of Innovation, Larry Keeley
“Pragmatic Innovation” by Amy Radin at Digital CPA Conference 2015
7. Service
how you service your customers
6. Product system
extended system that surrounds an offering
Product
performance
Offering
Product
system
Service
5. Product performance
basic features, performance and functionality
Channel
Delivery
Brand Customer
experience
10. Customer experience
how you create an overall
experience for customers
8. Channel
how you connect your offerings
to your customers
9. Brand
how you express your
offering’s benefit to
customers
Core
process
Process.
Enabling
process
3. Enabling process
assembled capabilities
4. Core process
proprietary processes that add value
Business
model
Finance
Networking
2. Networking
enterprise’s structure/
value chain
1. Business model
how the enterprise makes money
Inside-out Outside-in
35. !
Combining Types: Strongest Path
Business
model
Finance
Networking Channel
Delivery
Brand Customer
experience
Core
process
Process
Enabling
process
Product
performance
Offering
Product
system
Service
Source: Ten Types of Innovation, Larry Keeley
“Pragmatic Innovation” by Amy Radin at Digital CPA Conference 2015
37. Most Common Drivers of
Innovation
1. 31% organizations with and “innovation culture”
2. 17% have financial incentives for employees who innovate
successfully
3. 15% distribute regular employee surveys that ask for
innovative ideas
4. 13% have a clearly defined risk appetite that sets the
parameters for innovation
5. 10% use “stage-gate” processes that help early-stage
innovations while limiting risk
6. 5% participate in “crowd sourcing” through software or
social media
38. Recipe for Innovation
1. The right culture –
collaborative and inclusive
2. Purpose-driven and visionary
leadership
3. Continuous learning and
improvement
4. Competencies and skills to
support innovation
5. Tolerance for risk and failure
39. Tactics – How to jumpstart your innovation
Understand the hard trends
• Technology
• Demographics
• Regulations
Get an outside-in view of your organization
Start with the customer (not your product or services)
Ask questions like ‘what is hard for you?’
Keep abreast of what other firms are doing
Build new competencies
• Anticipation and Identifying trends
• Comfortable with failure
• Collaboration
Set priorities
12-18 months
Review every 90 days
40. Top Skills Needed for Accounting and
Finance Professionals
75%
covered by
theseTop 5
Skills
41. Q: To what extent does each of these functions contribute to innovation at your organization?
Source: AICPA Business and Industry Economic Outlook Survey, 3Q 2013.
- See more at: http://www.journalofaccountancy.com/news/2013/sep/20138692.html#sthash.vVK5v2vo.dpuf
42.
43. “My Firm’s Innovation Priorities
over the Next 12-18 Months”
32%
50%
38%
35%
2%
62%
46%
4%
41%
Implementing a cloud-based accounting solution.
Implementing a new offering for a specific market segment we
believe has growth potential.
Updating current offering(s) to be more competitive.
Deciding and moving forward on what our innovation priorities
should be.
Responding to a competitor who is outpacing us -- new entrant or
existing player.
Developing new offerings that expand the value we provide to our
existing clients.
Developing new offerings or approaches to the market that attract
new clients.
Innovation is not a priority we plan to focus on in the next 12 to 18
months.
Realizing value to the firm from existing innovation investments.
Source: 2015 Innovation in Public Accounting Profession Survey, by CPA.com
44. Changing Landscape of
Technology
“Up until about 10 years ago, Durkin said, accountants would
identify needs and then buy technology to fill those needs.
Now, he said, technologies are being developed before
accountants even identify needs.” –
Dennis Durkin, CPA, CFO
See more at: http://www.journalofaccountancy.com/news/2013/sep/
20138692.html#sthash.vVK5v2vo.dpuf
45. “It’s a Templosion”
“I like Tom Hood’s VUCA term to define the paradox. ‘Rapid, short-
term change and long-term leadership ideas and goals simply don’t
mesh well.’”
- Hubert Glover,
Author: The Making of the Twenty-First-Century Leader
“It’s aVUCA world –Volatile, Uncertain, Complex, and Ambiguous …
the answer to rapid changes and hyper-competition is a bold vision
and core value’s; maintaining values that don’t change while constantly
re-inventing the shorter term strategy.”
- Tom Hood, CPA.CITP,
President & CEO, Maryland CPA Society
46. Disintermediation
Removing the middleman -- a popular buzzword used
to describe how Internet-based businesses are using
cloud and mobile technologies to reach customers.
These companies provide products and services
cheaper and faster.
These technologies are revolutionizing the way
products and services are bought and sold, and
disintermediation is the driving force behind this
revolution.
48. Group Exercise
Let’s use Burrus’ hard trend framework
How can I give my customers the ability to do what
they can't do but would want to -- if they knew it was
possible? – Daniel Burrus
Identify 3 Hard trends/Soft trends predictable
problems/ opportunities for innovation
49. 1. Developing new offerings that expand the value we
provide to our existing clients
2. Implementing a new offering for a specific market
segment we believe has growth
3. Developing new offerings or approaches to the market
that attract new clients
4. Realizing value to the firm from existing innovation
investments
5. Updating current offerings to be more competitive
6. Deciding and moving forward on what our innovation
priorities should be
7. Implementing a cloud-based accounting system
Top Innovation Priorities for ‘Early Majority’ Firms over
the Next 12-18 Months*
*CPA.COM Innovation in Public Accounting Survey
50. Innovation Tools
• Business Model Canvas
• Anticipatory Organization to build skills
and create an innovative culture
• RONI - Risk of Not Investing
53. Disruption and RONI!
The gap is widening, faster!
Source: Clayton Christensen, “Innovation Killers”
We think this
is trade-off
54. “I am currently putting time and effort into building new
ways to differentiate our practice to build client
preference, either for existing clients or to attract new
clients”
54%38%
7% 1%
EARLY MAJORITY RESPONSES
To a great degree To some degree To a very limited degree To virtually no degree/ not at all
Source: 2015 Innovation in Public Accounting Profession Survey, by CPA.com
56. 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 2013 - 2015
Top 150 Influencer by Linked-In
Top 25 Influencers in Learning & HR - HR
Examiner
Top 25 Public Accounting Thought Leaders - CPA
Practice Adviser
Co-founder of the Business Learning Institute
CEO
Maryland Association of CPAs
(MACPA) www.macpa.org
Business Learning Institute
(BLI) www.blionline.org
http://www.linkedin.com/in/tomhood/