Professional Issues Update For BIG (biz-ind-ed-govt-nfp) Professionals

By: Tom Hood, CPA, CITP, CGMA

Prepared for Marriott International Finance &

Accounting Team August 23, 2012

What’s gone away or been invented in

your lifetime?

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Beloit College’s 2016 Mindset List •  They have always lived in cyberspace, addicted to a

new generation of "electronic narcotics.” •  Michael Jackson's family, not the Kennedys,

constitutes "American royalty.” •  If they miss The Daily Show, they can always get

their news on YouTube. •  They have never seen an airplane "ticket.” •  They can't picture people actually carrying luggage

through airports rather than rolling it. •  A significant percentage of them will enter college

already some hearing loss.

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Beloit College’s 2016 Mindset List •  Having grown up with MP3s and iPods, they never

listen to music on the car radio and really have no use for radio at all.

•  They have had to incessantly remind their parents not to refer to their CDs and DVDs as "tapes.”

•  History has always had its own channel. •  They watch television everywhere but on a

television. •  They grew up, somehow, without the benefits of

Romper Room. •  Bill Clinton is a senior statesman of whose

presidency they have little knowledge. 4

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What is the #1 reason organizations fail?

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Research from CGMA, Deloitte, PWC, & IBM

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Rebooting Business!

“…an  indisputable  leadership  challenge  that  ul3mately  requires  new  models,  bold  ideas  and  personal  courage  to  ensure  that  this  century  improves  the  human  condi3on  rather  than  capping  its  poten3al.”      –  World  Economic  Forum  

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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 Process – i2a: Strategic Thinking - Future Forums

30 Future Forums 1,000 CPAs

Identified these top trends

What CPAs think about the future

http://www.bizlearning.net/live/i2afutureforums

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Change Complexity Compliance Convergence Cascade Competition 16

The Letter for today is “C”

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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.” 79%

51%

6,000 pages 500 Million words

17,000 pages

The CPA Profession and CPE

Compliance

Federal Laws & Regulations

State Laws & Regulations

Professional Standards

Top Risks facing CFOs

Source: Deloitte CFO Signals 2Q 2012 Organizations are more likely to achieve goals when properly communicated risk appetite guides management in setting goals & making decisions

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Private Company Standards

State  Legisla3on  

CPA Day in Annapolis – January 16, 2013

State  Legisla3on  

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CPA  Day  –  Jan  16,  2013  

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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.”

•  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

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Tsunami of 1099K and info returns

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CPAs in Tax The increase in IRS activity is swamping our tax practitioners and costing them hundreds of hours in chasing down IRS notices.

Maryland - 1099R - 2008

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Convergence

Public Company

Private Company

Int’l Company

Financial Reporting

Auditing

Ethics

State Boards of Accountancy

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Sarbanes-Oxley Act of 2003

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Dodd-Frank - the bill that keeps on giving

CPAs required to register as debt settlement advisors

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Cascade!

Federal Accounting Standards

"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."

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 & our Business & Industry members

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Continuous Learning

Collaboration Competencies

= Career Success! 41

The Letter for today is still “C”

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

Picture: John Drake - Flickr

It really is about this...

Top ten skills needed

Source: IBM 2012 Global CEO Study 45

CFOs moving up the value chain!

The Wall Street Journal, Feb 27, 2012 The current view pushed by business schools & carried into the executive suite sees CFOs as little more than numbers crunchers who settle the books & look after regulatory compliance The people who have the strongest grasp of a company’s finances need to be part of strategic thinking from the ground up!

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The new value drivers

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New Skills – Existing Talents

Source: CGMA Report – New Skills – Existing Talents 48

CGMA – Fast-track to Leadership

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www.bizlearning.net

Staff Principal/Director

Senior Senior Manager

Manager

Decision making by specification,

task specific work

1st level supervision on established guidelines & standards

1st level of strategic thought & focus on boundary spanning

activities

Assess & understand longer-term variables

& accomplishing future goals

Leading and/or developing new practice areas, strategic alliances

& talent Critical Turning Point The

Bounce

Copyright 2012 – Business Learning Institute 53  

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Wisdom from the MACPA Leadership Academy

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.

Next class: December 4,5,6, 2012

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Paul DePodesta - VP of Player Development for the New York Mets formerly Asst GM of Oakland A’s

Adopt a moneyball mindset

1. Ask the naive question 2. Be the house (measure, odds, risk) 3. A willingness to try anything 4. look around (especially outside) 5. Confidence matters - believe in yourself

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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 2011

A final word on collaboration…

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A leader’s job is to provide hope and inspiration..."

Tom  Hood,  CPA.CITP  CEO  

Maryland  Associa8on  of  CPAs  Business  Learning  Ins8tute  

(443)  632-­‐2301  E-­‐mail  tom@macpa.org  

Web  hNp://www.macpa.org  Blog  hNp://www.cpasuccess.com  hNp://www,bizlearningblog.com  

   

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www.cpasuccess.com www.bizlearningblog.com

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