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2016 The State of My
Industry: Accounting Tom Hood, CPA, CITP, CGMA fluencer #MyIndustry @tomhood

Big Waves of Change Oceans
of Opportunity

“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.”

Borrowed from the US Army
War College,VUCA was coined byThe Institute for the Future to describe the rapidly changing and complex business environment since the Great Recession of 2008.

Technology is #1 HardTrend Source:
Miovision July 17, 2013 “The Internet ofThings andTransportation”

From the World Economic Forum
in Davos, 2016

A 3-D printed carbon fiber
house and SUV that share energy and will disrupt these industries: 1. the construction and building industry, including suppliers, supply chain, and unskilled labor; 2. the automotive and transportation industry, including components makers and the classic assembly line; and, 3. the electric-utilities industry.

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

Source: CPA.COM Insight into the
CPA of the Future Study 2014 92% of CPAs are NOT Future Ready Future Ready is the capacity to be aware, predictive, and adaptive of emerging trends, innovations and changes in business, population, and the social environment.

The Fourth Industrial Revolution

Cognitive Computing has three unique
capabilities: 1) natural language processing, 2) hypothesis generation and evaluation, and 3) dynamic learning.

Are we at a Strategic
Inflection Point?

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

91% Of firms expect to
continue record hiring levels 11% Projected accounting job growth between 2014 and 2024 Demand for Accounting is Strong And according to the DOL BLS, faster than the average for all occupations

References: US Department of Labor,
Manpower Group Talent Shortage 2015 38% of employers interna2onally report talent shortages in 2015 2009: 30% Employment of accountants and auditors is projected to grow 11 percent from 2014 to 2024, faster than the average for all occupa2ons – US Dept of Labor 2015 Accoun2ng and finance staff #1 in demand #8 in talent shortage Demand for Accounting is Strong

• 2 of Top 10
Best Jobs (US News & World Report) • Top 20 Happiest Professions (Huff Post) • Top 10 in Demand Jobs/Hardest Jobs to Fill – (Manpower Group) And Career is Attractive

# 1 Most Profitable industry
according to Sageworks # 1 In small/mid-size business growth rates averaging 12% in 2016 Demand for Accounting is Strong

The Rise of the #DigitalCPA
Shift fromTangibles to Intangibles

Accoun2ng firms con2nuing diversifica2on
$50 billion 40 30 20 10 2010 $42 $9 $12 $19 Revenue split at top 100 accounting firms 2014 $54 $17 $15 $20 Advisory services 91% growth! now nearly one-third of revenue Tax 17% growth but now just over one-quarter of revenue Audit and accounting 6% growth now 37% of revenue — was 45% in 2010 Other

CFO à COO à CEO
There is a growing trend in CFOs moving to new roles as COOs and even CEOs as they lead business transformation.

• And Learn how to
surf

Six Steps to Ride the
Waves 1. Embrace Digital. 2. Anticipate. 3. Collaborate. 4. Learning as the next competitive advantage. 5. Protect the Core (Purpose &Values). 6. Make time for the future.

ANTICIPATION Strategic Thinking
External Awareness Vision Con2nuous Learning Innova2on Crea2vity Problem Solving Priori2za2on Business AcumenDecisiveness Influencng/Persuading Emo2onal Intelligence Consensus Building Collabora2on Inspira2on Risk Management An2cipate! Three Hard Trends: 1. Government Regula2on 2. Technology 3. Demographics

Legislative / Regulatory / Standards
Federal • Tax Due Dates changes • Mobile Workforce legislation Federal Regulators • DOL Overtime Standards Standards • Peer Review Future of Practice Monitoring In Progress • CPE Standards – due October 1, 2015 • CPA Exam Standards due November 30, 2015 • FASB Not-For-Profit Exposure Draft Comments • Revenue Recognition

Mobile workforce Patent holding companies
* DOL overtime * Cash basis * IRS Service Levels * Top Priorities of Maryland Managing Partners

IRS Issues

DOL ALERT “The DOL
will ask for stakeholder support, and will strongly encourage state boards of accountancy to consider more rigorous review of firms performing ERISA audits and examine how licensing requirements might play a role in improving con2nuing educa2on and boost quality. We believe the contents of these leders to be reasonable under the circumstances.” -­‐ AICPA Regulatory Affairs Stats from DOL Maryland is 16th in # of plans/par2cipants/assets with 282 firms audi2ng 1,614 plans with 3 million par2cipants and $264.12 billion in plan assets 24% of all audits and 22% of all plans

“if you don’t have time
to participate in the legislative process, be prepared to accept the consequences of those who do.” 3,400 bills filed in 2016 up from average of 2,500!

Legislative / Regulatory / Standards
State Board • Positioning for Firm Mobility • CPE tracking and audits • Peer Review State • Offense - Supersedeas (Appeal Bond) Caps - Tax Dues Dates - Wynne Interest Rates - Peer Review – Subpoena Power - Firm Mobility • Defense - Oppose Mandatory Paid Leave - Stop Comparative Fault – Liability - Stop Sales Taxes on Services

Jeff Lawson tes2fies in
SUPPORT -­‐ SB 1024 MACPA in Annapolis

• Reduc2on in Rates
• Corporate Single Sales Factor • Interest Rate on Tax Deficiencies & Refunds Jerry Beard -­‐ STAX

Are you Leading the Transformation
of Finance and Accounting? !

“The real way it was
in finance—in the world I grew up in—is we spent all our time looking backwards… [Modern Finance and Accounting] is now it’s about looking to the future.” – Safra Catz, CEO of Oracle (formerly CFO)

Integrated Reporting – Integrated Thinking!
Understanding, accounting and managing the ‘capital assets”!

CFO à COO à CEO
There is a growing trend in CFOs moving to new roles as COOs and even CEOs as they lead business transformation.

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

The Shil Change sets the
context around the workplace – How can we be nimble and innova2ve?

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

New rules: Go to war
for talent

www.blionline.org The BLI Magnetic Firm
Framework

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

What’s your purpose?

Core values: • Integrity •
Competence • Lifelong learning • Objectivity • Commitment to excellence CPAs…Making sense of a changing and complex world CPAs are trusted advisors who help people and organizations shape their future. Combining insight with integrity…

Case
Study

MACPA/BLI would make the “shift”
and create an open collaborative environment to increase collaboration, learning, and our ability to move faster.

Our Three Goals Goal
1. Help employees iden2fy and address the challenges and opportuni2es that have the greatest impact on the business. Goal 2. Help employees strengthen high-­‐impact connec2ons by enabling them to collaborate easily with others inside and outside the organiza2on. Goal 3. Amplify the impact of those efforts by building an infrastructure that allows small improvements to scale easily across the organiza2on.

Photo by Gwenaël Piaser -
Creative Commons Attribution-NonCommercial-ShareAlike License http://www.flickr.com/photos/22841923@N02 Created with Haiku Deck

MACPA’s Digital Transformation (Cloud/Mobile) Strategy
1. Digitization & workflow –shifting resources and systems to growth areas 2. Virtualization – Moving IT infrastructure to cloud 3. Transformation to cloud – Increase use of existing systems of engagement (collaboration and communication tools) 4. Transformation to cloud – New cloud based systems – accounting 5. Transformation to cloud – Move AMS and MACPA website

MACPA/BLI Office
Move!

BLI & Future of Learning
1. Social Learning. 2. Mobile / nano 3. Cloud-based 4. Collaborative. 5. Competency-based learning

Slack

Develop our APP Solution Bundle
app ecosystem! collaborative!

We have not arrived…!

#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.!

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

Leaders need new skills in
aVUCA world • Anticipating and reacting to the nature and speed of change. • Acting decisively without always having clear direction and certainty. • Navigating through complexity, chaos, and confusion. • Maintaining effectiveness despite constant surprises and a lack of predictability. Source: Conference Board 2015 Ready-Now Leaders Report 25% are notVUCA ready 3X Performance inTop 20%

CPA Horizons 2025 (AICPA) The
CPA Horizons 2025 Report by the AICPA researched theTop Competencies needed by the CPA Profession for the future (2025) and was validated by thousands of CPAs in a grassroots electronic and in-person facilitations.

The Chartered Global Management Accounting
Competency Framework was developed in 2014 by the AICPA and CIMA JointVenture and follows the BLI ‘Bounce’ Framework.

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

This led to our work
with world renowned futurist and business advisor and best-selling author, Daniel Burrus of Burrus Research.We worked with Dan to add the context of the accounting and finance profession to his Anticipatory Organization learning system to create the Anticipatory Organization”Accounting and Finance edition . http://www.blionline.org/ao

Learn How
to
Anticipate!!

• An2cipa2on • Strategic
Thinking • External Awareness • Vision • Con2nuous Learning • Innova2on • Crea2vity • Problem Solving • Priori2za2on • Business Acumen • Decisiveness • Influencing/Persuading • Emo2onal Intelligence • Consensus Building • Collabora2on • Inspira2on • Risk Management • Communica2on In November, 2015 we developed a strategic partnership with Daniel Burrus, a world-renowned global futurist and business consultant who had researched the top competencies requested in his work with many Fortune 500 companies.These aligned with own research at BLI.

Jump
the
Disrup2on
Curve

D x V x F
> R Dissa9sfac9on with Status Quo = Shared meaning and context created collabora2vely Vision for future – Strat House and agreement on Top 5 Opportuni2es First steps -­‐ Top 5 ac2ons using Strat House or Ac2on plans The Change Equa2on Breaking the Pull of the Past Resistance to change

Mapping the AOAF learning program
to the CGMA Competency Model shows comprehensive coverage of these skills ANTICIPATION Strategic Thinking External Awareness Vision Con2nuous Learning Innova2on Crea2vity Problem Solving Priori2za2on Business Acumen Decisiveness Influencing/Persuading Emo2onal Intelligence Consensus Building Collabora2on Inspira2on Risk Management Communica2on An2cipatory Organiza2on: Finance / Accoun2ng Edi2on CGMA Competency Framework

Mapping the MBA Express learning
program to the CGMA Competency Model shows comprehensive coverage of these skills • ADDING VALUE: GeOng the most by giving the most • BUSINESS STRATEGY: Thinking, planning, ac9ng, and leading • LEADERSHIP STRATEGY: Taking people to new places and higher ground • PERFORMANCE MANAGEMENT: GeOng to be[er results, faster • POWERFUL COMMUNICATION: Conveying meaning and earning an audience MBAexpress (All modules) CGMA Competency Framework

AOAF recognized as 2016 Top
Learning Product "As knowledge workers and professionals whose value springs in large part from their expertise, accountants are both serious about their ongoing education, and well-positioned to capitalize on new ideas and new ways to demonstrate their competence to clients… The point of the coursework is to teach you, literally, how to predict the future by identifying reliable trends — and it actually works. The applications for firm strategy, client service, and guiding your own career are endless.” It also saw a push on different ways to educate the profession, including in small bites…offering to help accountants boost their careers by bringing more value to the table.

"The An2cipatory Organiza2on Learning System
helps establish a mindset, a common language and eventually a culture of being an2cipatory for our clients. By making this an2cipatory skillset a core strength of our teams, it brings crea2ve and new ideas that make us more valuable to our clients and it creates a game changer for our firm.” -­‐ Joey Havens Execu2ve Partner, HORNE LLP Top 50 CPA Firm

• It’s possible to see
what’s coming based on hard trends. Important in posi2oning our organiza2ons for future success and iden2fying our next compe22ve advantages. • It was interes2ng to me that even if a sol trend is based on a sol assump2on, it could s2ll be rela2vely likely to happen. • It’s possible to an2cipate disrup2on and stay ahead. Important because it opens all kinds of possibili2es. • I learned how to think differently. It takes prac2ce but it’s worth it.

Tom Hood, CPA, CITP, CGMA
• CPA Practice Adviser Accounting Hall of Fame • Named the Second Most Influential in Accounting by Accounting Today Magazine 2015, 2013 • Top 150 Influencer by Linked-In • Top 25 Influencers in Learning & HR by HR Examiner • Top 25 Public Accounting Thought Leaders by CPA Practice Adviser • Working on Learning Management with AICPA/CPA2Biz, Cloud Curriculum, Performance Management /XBRL, Leadership & Generations CEO Maryland Association of CPAs (MACPA) www.macpa.org Business Learning Institute (BLI) www.blionline.org http://www.linkedin.com/in/tomhood/ Hood's greatest a/ribute isn't that he consistently glimpses the future more quickly than the rest of us (though he does). It's that he's able to bring it back to the present and serve as its Breless, inspiring and effecBve champion. – Accounting Today Membership Organization How we connect, protect, and achieve.

Norfolk pines "The best
2me to plant a tree was 20 years ago. The second best 2me is now."

MACPA Delega2on to AICPA Council
at Regional Council in NY

Competency framework Global Management
Accoun2ng Principles CGMA Exam CGMA code of ethics Professionaliza2on of Management Accoun2ng

MACPA Student Leadership Academy –
June, 2015 Next class – June 2-­‐4, 2016

Guide for Becoming a CPA
www.cpaguide.macpa.org

New CPAs Swearing-­‐in
Ceremony

MACPA Leadership Academy – August,
2015 Next class – August 24-­‐26, 2016

Maryland is the best state
in the na2on to have your CPA license – Maryland Senator Brian Feldman, CPA

Calendar!

Upcoming events and programming for
Business & Industry members

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 2015 Top 150 Influencer by Linked-In Top 25 Influencers in Learning & HR by HR Examiner Top 25 Public Accounting Thought Leaders by CPA Practice Adviser Working on Learning Management with AICPA/ CPA2Biz, Cloud Curriculum, Performance Management /XBRL, Leadership & Generations CEO Maryland Association of CPAs (MACPA) www.macpa.org Business Learning Institute (BLI) www.blionline.org http://www.linkedin.com/in/tomhood/