The #1 reason clients leave their CPAs is that they are receiving service instead of proactive advice. Tom will show how firms are exploring new value added services and position their practices for success in a rapidly changing world. He will discuss the major "shift change" and the trends shaping business today and give participants a framework to provide more proactive services and strategic advice and a plan to get started. But these services require new skills and approaches which is a big opportunity for firm HR and Learning Leaders. Presentation to AGN International in San Diego #NARM16 for Managing Partners in MAP Track

1. The
Future
Ready
CPA
-­‐
Moving
from
Compliance
to
Reliance
Tom
Hood,
CPA,
CITP,
CGMA
@tomhood
#NARM16

2. Download today’s slides at …
www.SlideShare.net/thoodcpa

3. Your Learning Journey

4. Vote for a question
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conversation:

5. The # 1 Challenge

6. 0 2 4 6 8
Poor reputation
No personal relationship
Inadequate staff to meet needs
Not using state-of-the-art technology
Fees were too high
Expertise of former CPA was lacking
Referral to a new firm from someone I
trust
CPA had poor responsiveness
CPA didn’t give proactive advice, only
reactive service
Why SMBs Leave Their CPA / Accountant

7. www.blionline.org
Source: CPA.COM Insight into the CPA of the
Future Study 2014
Only 8% of CPAs are Future Ready
Future Ready is the capacity to be
aware, predictive, and adaptive of
emerging challenges, tech
innovations, and trends and changes
in business, population, and social
environment.

8. “You can’t stop the waves, but
you can learn how to surf.”
– Jon Kabat Zinn
Oceans of Opportunity

9. #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.!

10. 5 Steps to be Future Ready
1. Context
2. Certainty
3. Capacity
4. Competence
5. Core Beliefs

11. Context

12. “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.”
- Klaus Schwab - WEF

13. Big Waves of Change

14. More Uber cars than yellow taxis on the road in NYC

16. Gradual then Sudden

17. Race Against the Machines?
Source: Frey & Osborne –The Future of Employment – Oxford University

19. Could technology jeopardize professions?
There is a new generation
of machine in action now,
and these are systems …
that can replace parts of,
and sometimes all of,
certain kinds of
professional work.
—Richard Susskind
Author, The Future of the Professions
Even as technology has
helped to automate some
aspects of the tax and
insurance markets, the
remaining jobs in these fields
require lots of human
judgment and creativity that
is very difficult to automate.
—Andrew Chamberlain
Glassdoor chief economist
VS

20. What does the future hold?
Technology is changing and disintermediating
many trades and professions
• Medical, Legal, Accounting
Patterns and Trends
• Automation replacing routine tasks – higher order (soft skills
and analytics) necessary to survive
• Alternative options to services and knowledge – automated or
otherwise – Tax and Audit implications
• Globalization, specialization and consolidation changing the
landscape.
• Domain expertise matters

21. In the next five
years we will
TRANSFORM
How we market,
sell ,
communicate,
collaborate,
innovate, and
educate
– Dan Burrus

22. The
Faster
you
go,
the
Farther
Ahead
You
Have
to
Look

23. Certainty

24. Can you predict the
future?

25. • Linear & Exponential Change
• Cyclical Change
• HardTrends vs SoftTrends
Certainty

26. HardTrends
Four HardTrends:
1. Government Regulation
2. Technology
3. Demographics
4. Globalization

27. 12,000 CPAs, 75,000
Comments over 15
years

28. Relationships & Collaboration

29. Capacity

30. TheTop 6 Ways to Create Capacity in
your Firm
• Maximize software & tools you have
• Use the latest and most efficient technologies
• Workflow & Process Efficiency
• Focus on your best ‘A’ clients
• Communicate your services (cross-sell)
• Engage your people

31. Competency
Disrup>ons
before
they
disrupt
Problems
before
you
have
them
Customer
Needs
before
they
have
them
New
Opportuni>es
before
the
compeEEon
AnEcipate
Source:
Daniel
Burrus

32. #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.!

33. The Research
The latest research inside and
outside the CPA Profession re-
affirms theTop Competencies and
Skills needed by Accounting and
Finance Professionals

34. 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
theseTop 5
Skills

35. • AnEcipaEon
• Strategic
Thinking
• External
Awareness
• Vision
• ConEnuous
Learning
• InnovaEon
• CreaEvity
• Problem
Solving
• PrioriEzaEon
• Business
Acumen
• Decisiveness
• Influencing/
Persuading
• EmoEonal
Intelligence
• Consensus
Building
• CollaboraEon
• InspiraEon
• Risk
Management
• CommunicaEon
http://www.blionline.org/ao

36. V
A
L
U
E
Adding Insight forAction
Information
Wisdom
Knowledge
Data
Compliance
Reliance
Source: CGMA & DIKW Pyramid
V
A
L
U
E

37. Trust
Integrity
Objectivity
Excellence
Lifelong Learning
Core Beliefs &Values
Protect the Core & Stimulate Progress

38. 5 Steps to be Future Ready
1. Context
2. Certainty
3. Capacity
4. Competence
5. Core Beliefs

39. Closing Thoughts
What does this mean to the
#FutureReady CPA Firm?

41. The Shift Change
1. Leadership!
2. Learning!
3. Technology!
4. Generations!
5. Workplace!

43. 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

45. The BigThree
Career Development – Flex Work - Purpose

46. The
New
Big
Six
Source: Gallup

47. Top Ten Things Next Gen leaders
Want You to Know!
1. Look Beyond the Billable Hour
2. More Focus on Career Development
3. Engage Us in your Vision and Purpose
4. More Coaching and Mentorship
5. More Frequent Feedback
6. More Leadership Development
7. More Transparency
8. Thank You!
9. More Collaboration
10. More Focus on the Future

48. Firms evolving for the future
Structure,
strategy,
business
model
Client and
relationship
building
Use of
technology
Staff development
and culture
Key factors for success

50. V2S
–
i2a
–
8-­‐S
Model
Strategy Staff
Skills
Structure
Style
Systems
Shared
Vision
Shared
Values
www.blionline.org

51. The Magnetic Firm
Purpose Driven Great
Leadership
Culture
Of Growth
Inspiring
Workplace
Vision, Purpose
andValues 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
TechnologyTools
- mobile

52. Internal Strategy
Workplace Technology

53. This is the CEOs office!

54. We surveyed our team after two weeks…!

55. Slack

57. “How would you think differently about
your strategy if you knew your
advantage might not last?”

58. Innovation is not
Invention

59. Innovation is not
Creativity

60. Innovation is creating
value in anticipation
of future trends and
customer needs.

61. 66
“Any type of differentiation
in your practice that drives
preference.”
Geoffrey Moore: Innovation

62. Innovation Priorities in Firms
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

63. 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
6. Technology-enabled firm

64. Disruption and RONI
The gap is widening, faster!
Source: Clayton Christensen, “Innovation Killers”
We think this
is trade-off

65. We are in the “Groan Zone”
70

68. Calendar -The No. 1 App
Spend just one hour per week in the future…

69. 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/