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ASAE 10 - Senior Executives Role in Innovation

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Presentation on Innovation in Associations at the ASAE 10 Annual Meeting in Los Angeles. Hugh Lee and Don Dea use their 3I framework (Inspect - Innovate - Integrate) to highlight how associations can and must innovate. They use Tom Hood and the Maryland Association of CPAs as a case study.

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ASAE 10 - Senior Executives Role in Innovation

  1. The Association That Innovates Integrates: The Senior Executive’s RoleAugust 22, 20101:30PM - 2:45 PM<br />Tom Hood, CPA.CITP, CEO & Executive Director<br />Maryland Association of CPAs<br />Hugh Lee, President, Fusion Productions<br />Don Dea, Co-founder, Fusion Productions<br />www.asaecenter.org<br />Connecting Great Ideas and Great People<br />
  2. “In order to understand the future, we need to look back at least twice as far.” <br />~Jane McGonigal, ForecasterInstitute of the Future<br />
  3. Before the Turn of the Century<br />
  4. Evolution of the Internet<br />Web 2.0: Collaboration<br />Web 3.0: Ubiquitous and Intelligent<br />Web 1.0: Information<br />
  5. 2000<br />2010<br />46% of adults use internet<br />75% of adults use internet<br />Pew Internet<br />Where We’ve Been: Then and Now<br />
  6. Where We’ve Been: Then and Now<br />2000<br />2010<br />5% havebroadband at home<br />62%havebroadband at home<br />Pew Internet<br />
  7. Where We’ve Been: Then and Now<br />2000<br />2010<br />50% own a cell phone<br />80% own a cell phone<br />Pew Internet<br />
  8. Where We’ve Been: Then and Now<br />2000<br />2010<br />0% connectto internet wirelessly<br />53% connectto internet wirelessly<br />Pew Internet<br />
  9. Where We’ve Been: Then and Now<br />2000<br />2010<br /><10% use “cloud”<br />>66% use “cloud”<br />Pew Internet<br />
  10. Where We’ve Been: Then and Now<br />2000<br />2010<br />= slow, stationaryconnections built around my computer<br />= fast, mobileconnections built aroundoutside servers and storage<br />Pew Internet<br />
  11. Information Overload<br />
  12. Speaking of growth…<br />Charlene Li: DigitalNow<br />DigitalNow-Li<br />
  13. Generations Online in 2009<br />70%<br />30%<br />Pew Internet<br />Pew Internet<br />
  14. Activity Pyramid: Online Pursuits by Generation<br />The majority of teens and Gen Y use Social Networks<br />Active engagement <br />with social media<br />More advanced online entertainment <br />Older generations typically do not engage with the internet past e-commerce<br />More advanced communication and passive social media use<br />Basic online entertainment <br />The vast majority of online adults from all generations uses email and search engines<br />E-commerce <br />Research and information gathering <br />Email and search <br />Pew Internet<br />Pew Internet<br />
  15. Why Should We Care?<br />
  16. #1 – Demographics is destiny.<br />These guys are retiring<br />These are the new workers<br />These are making the purchasing decisions<br />Facebook Generation<br />Email Generation<br />1964<br />Age 46<br />1984<br />Age 26<br />1948<br />Age 62<br />Source: John Newton, Alfresco<br />
  17. Stakeholder/Members/Users Expectations Increase<br />
  18. … and the “long tail” becomes more important-- Chris Anderson<br />
  19. Flattened Hierarchy<br />Time Shifting<br />Virtual Connections<br />Digital Tools<br />Convergence<br />Constant Change<br />Privacy<br />Culture<br />Changing Face of Communications<br />Members<br />Consumers<br />Stakeholders<br />Students<br />Professionals<br />
  20. Technological Obsolescence<br />… “market life cycles are now less than product development cycles, challenging even the most efficient engineering departments. To meet these challenges companies are developing new methods to reduce their product development times by employing 24/7 activities spread around the world”<br /> Anthony Warren and Gerald Susman, The Pennsylvania State University<br />
  21. DigitalNow Model<br />Inspect<br />Innovate<br />Integrate<br />
  22. Inspect<br />
  23. Dashboards<br />
  24. Executive Dashboard<br />
  25. Innovate<br />Successful innovation is the use of new technological knowledge, market knowledge, and business models that can deliver a new product or service, or product/service combinations, to customers who will purchase at prices that will provide profits.<br />Anthony Warren and Gerald Susman,<br />The Pennsylvania State University<br />
  26. Innovate<br />Anthony Warren and Gerald Susman, The Pennsylvania State University<br />
  27. Integrate<br />Growth in the Face of Uncertainty<br />Five Disciplines, working together<br /><ul><li>Define success before you start
  28. Impose market and competitive discipline
  29. Lay out clear operations specifications
  30. Articulate and document assumptions
  31. Plan to checkpoints</li></ul>Rita Gunther McGrath<br />
  32. Integrate<br />
  33. MACPA CASE STUDY<br />
  34. Inspect - Start with Strategy and make sure everyone can ‘see’ your thinking<br />Structure & Governance project – 2 years, 90% membership support, 150% dues increase during a recession<br />On-site training & Business Learning Institute – R&D investment + ¾ FTE<br />Social media<br />Career Center – Learning & Compliance System<br />
  35. MACPA’s Strategic Position<br />14,188<br />18,876<br />State CPA Societies<br />689<br />10,500<br />2,015<br />2,802<br />6,973<br />
  36. MACPA’s National Rankingamong State CPA Societies<br />MD is in Top Ten<br />
  37. Vision Prioritization GridWhere is your portfolio ?<br />10<br />Vision Aligned<br />5<br />1<br />10<br />1<br />5<br />Business Purpose<br />
  38. Market Size $39,800,000<br />Market Size $9,950,000<br />On-site Training<br />
  39. Inspect – Our questions<br />Does it have good strategic fit?<br />Market share and market knowledge and getting the data<br />Does it focus on our strengths? <br />Collaborative planning + open leadership<br />Technology as an accelerator of strategy<br />
  40. Significant Elements of the Plan<br />Member Service Center - knowledge management (2 FTE)<br />Increased public relations (1 FTE)- focus on students entering the profession<br />Increased marketing emphasis (1 FTE) - Integrated Marketing<br />Conferences, Committees, Chapter CPE all delivered under Professional Development - Conference Manager (1 FTE)<br />
  41. What does this plan accomplish ?<br />Allocates resources based on Strategic Priorities (effectiveness)<br />Structures MACPA based on deliverables to the membership<br />Accountability for results<br />Positions MACPA in a leadership role and succession planning for the profession<br />
  42. How do we know this will work ?Risk Profile<br />Plan has extensive member involvement from its inception<br />Consistent with all leading edge studies and theories (ASAE 14 trends, CPA Vision, horizontal, value-based mgmt)<br />Staff led design teams and empowerment<br />Staff increases & Revenue targets are within State Society peer group ranges<br />
  43. Innovate<br />Executive sponsorship – CEO a must!<br />Separate budget & allocated staff<br />Feedback loop and progress review<br />Sense & respond approach<br />
  44. The Projects<br />Structure & Governance & New services to members<br />BLI + on-site training<br />Social media strategy<br />Career Center – Learning + Compliance + Careers<br />
  45. Integrate + another I<br />This is the hard part…<br />Involvement of key people<br />Strategy as process<br />Board – Staff Partnership & Collaboration<br />I2A – Insights to Action<br />Sight – Insight – Create – Communicate – Inspire to Action<br />
  46. Strategic Plan Progress<br />The group felt we made a lot of progress on our major strategic priorities<br />46<br />
  47. Setting our Priorities<br />47<br />We put our priorities into categories and assigned “champions”<br />
  48. Our Commitment Wall<br />48<br />
  49. Summary<br />Inspect: Critical Indicators<br />Innovate: SAR<br />Integrate: Execute<br />
  50. You can…Ignore itFight it or Harness its power<br />
  51. “The best time to plant a tree was 20 years ago, the second best time is today”Chinese proverb<br />
  52. Contact Us<br />
  53. Social Network<br />