Living on the edge - FInding a Competitive Edge in Turbulent Times

Living on the Edge: finding a competitive edge in turbulent times

Tom  Hood,  CPA,  CITP,  CGMA  CEO  

@tomhood  MACPA  @macpa  

Business  Learning  Ins?tute  @bizlearn  

Moderator: Tom Hood •  Named as fourth Most Influential in

Accounting by Accounting Today Magazine •  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

Tom Hood, CPA, CITP, CGMA CEO MACPA www.macpa.org and Business Learning Institute (BLI) www.blionline.org

http://www.linkedin.com/in/tomhood/

www.SlideShare.net/thoodcpa  

@tomhood  @MACPA  

Download  today’s  slides  at  …  

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Insights  to  Ac?on    

“One  without  the  other  is  either  useless  or  destruc?ve”  T  

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What is the #1 reason organizations fail?

The “New Normal”

http://www.endofbusiness.com

Source:  Brian  Solis  author  of  The  End  of  Business  as  Usual  

The Challenge

The New Normal - VUCA

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http://www.burrus.com

Inattentional blindness

The Paradox

"The faster things change, the more important it is to look ahead."

The Challenge

Nothing happens without the commitment of our PEOPLE. ROI = ROP

The Challenge

The Question How do I increase my odds and make the right bets on which strategies to pursue and how to get them done in a VUCA world?

The Opportunity – Be the House

•  15 X – ROI on Strategy as Process & Alignment (Jim Collins – Built to Last)

•  8 X – Engagement & Trust (Gallup)

•  10X – Return on Leadership (Information Masters)

•  20 X – Return on Culture (Information Masters)

•  3 X - Return on Positivity (Dr. Barbara Frederickson)

“In order to buy-in, I have to weigh in.” – Pat Lencioni

ROI = ROP

ROP = ROA x ROC x ROL

Return on Investment Cri8cal  Areas   Investment   Return  

People   2%   20%  

Processes   2%   15%    

Organiza?on  Structure   2%   10%  

Culture   1%   20%  

Leadership   1%   10%  

Informa?on   10%   15%  

Technology   82%   10%  

Source:  Informa?on  Masters  –  Secrets  of  the  Customer  Race  by  John  McKean  

Create - Start with why?

People don’t buy what you do, they buy why you do it!

#Vision&Strategy  

“If you don’t have a vision for your firm or yourself, you’ll just get sucked into somebody else’s vision” – adapted from Watts Wacker, Futurist

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Why Reassess & Renew

Where are we going

Link & Leverage

How are we going to

get there

Why we do what we do. Purpose &

Values

Our strategic Initiatives and priorities

How are our day to day activities

connected to our purpose & strategy

What did we learn? How is the world changing?

Critical Turning Point The

Bounce

Copyright 2012 – Business Learning Institute

Our envisioned future. What do we want to be, do, create, experience,

and have?

High  Performance  Organiza?ons  –  Strategic  &  Systema?c  

Strategy as Process: ���Our i2a Framework

A  tale  of  two  firms  •  One  founded  in  1921  •  One  founded  in  1977  •  One  has  967  staff  &  $202  million  in  Revenue    

•  One  is  Top  20  and  the  other  is  no  longer  in  existence  

A  tale  of  two  more  firms…  

And  two  more…  

If Content is king Context is the kingdom!

- Will Avgerakis - AICPA

Sight & Insight

• Hindsight – How did we get here? •  Insight - SCOT • Foresight – What do we know

about the future?

The Research

2 1,000 10,000

Haven’t we been here before?

1992 2001

2001 2011 2009 2006

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CPAs  are  trusted  advisors  who,  combining  insight  with  integrity  deliver  value  by:  

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Communica8ng  the  total  picture  with  clarity  and  objec?vity  Transla8ng  complex  informa?on  into  cri?cal  knowledge  

An8cipa8ng  and  crea?ng  opportuni?es    Turning  insights  into  ac8on  to  transform  vision  into  reality    

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Accountability is # 1 Issue

• Engagement • Alignment • Commitment • Accountability

Strategy as Process creates employee engagement

Gallup studies proved that corporations with higher engagement levels generated: •  27% higher profits •  50% higher sales •  50% higher customer loyalty •  38% above average productivity “Employee Engagement is an outcome-based concept. It is the term which is used to describe the degree to which employees can be ascribed as aligned and committed to their organization such that they are at the most productive.”

-The International School of Human Capital Management

Cascading Alignment throughout the organization creates Commitment

Firm-­‐wide  

Regional  &  Prac?ce  Levels  

Office  Level  

Individuals  Align  Their  Goals  to  the  Firm  

Cascading by understanding the top level goals ���and linking the ���next level down ���through the ���organization

Sample alignment worksheet from

MACPA

#2 Skill = Communication

#Change- Technology & the Caveman

S-­‐Curves  &  Business  Model  Innova?on  

•  ROA!  •  L>C  •  CC  >  EC  

#Change  

Don’t  be  a  C.A.V.E  man  

Colleagues  Against  Virtually  Everything  

#ChangeEqua?on  

D  *  V  *  F  >  R  

Leading  Innova?on  

1.  "OK,  let's  give  it  a  whirl!”    2.  "It's  harder  than  it  looks.”    3.  "It  seems  to  be  working!”    4.  "We're  reaching  the  point  of  no  return.  Do  we  really  want  to  do  this  forever?”    5.  "Hey,  we're  star?ng  to  get  really  good  at  this."     Source:  IDEO  Project  Mood  Chart  

“In  a  period  of  rapid  change  and  increasing  complexity,  the  winners  are  going  to  be  the  people  who  can  LEARN  faster  than  the  rate  of  CHANGE  and  faster  than  their  COMPETITION.”  

-­‐  Tom  Hood,  CPA.CITP.CGMA  7/4/13   T  

Four Generations in the Profession Millennials (Gen Y) - Born btw 1980 & 2000 Generation X - Born btw 1965 & 1979 Baby Boomers - Born btw 1946 & 1964 Matures (Traditionalists) - Born btw 1945 & 1925

Workforce  &  Demographics  –  Are  you  ready  for  the  shit  change?  

Email Generation

Facebook Generation

These guys are retiring

These are making the purchasing decisions

These are the new workers

Workforce���#TalentWar

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hup://cpa.tc/2qh    

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theBounce

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#CC>EC #  1  Skill  is  Collabora8on  #  2  Skill  is  Communica8on  according  to  2012  IBM  Global  CEO  Study  

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Historical Context – The Perfect Storm

•  Web 2.0 •  Globalization •  Generations

Source: Don Tapscott - Wikinomics

Five Things Every Professional Needs to be Good At

1.  Learning and staying on the cutting edge. 2.  Managing your career (yep, you have to

take charge of your own career). 3.  Doing the work (research, productivity,

communication). 4.  Interacting with your peers and colleagues. 5.  Becoming a thought leader in your field. - Allen Blue co-founder Linked-In

hup://lnkd.in/HghTcX  

Twitter & MACPA

Social media = social capital real world examples

#SocialAccoun?ng  

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Five Things to Get You Started

1.  Create  a  digital  footprint  

2.  Start  listening  3.  Make  friends  4.  Create  &  Share  5.  Recognize  &  

Reciprocate  

http://www.cpalearning2.com

#Innovation

•  Lots of ways to mess up!

•  Heat is needed to shape the glass

•  Long setup time for quick finish

•  Try, learn and adjust -Tim McFadden

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It is more important to have your team:

•  Thinking strategically than having a strategic plan. •  Understanding the direction and foundation (vision, values

& strategic intent) of the firm than having a detailed five-year plan.

•  Engaging in the firm’s future as a whole organization, not just the partners.

•  Aligning and on the same page than working independently in their own silos.

•  Engaging and participating than being idle observers. •  Focusing on the future than questioning the past.

Where do you start?

• Build on Strengths • Seek High Leverage Opportunities

• Involve your whole firm • Leverage Technology

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You can’t stop the waves but you can learn how to surf. �– Jon Kabbat-Zin �

A  leader’s  job  is  to  define  

context  and  provide  hope  and  inspira?on..

.    

Tom  Hood,  CPA.CITP  CEO  Maryland  Associa8on  of  CPAs  Business  Learning  Ins8tute  (443)  632-­‐2301  E-­‐mail  tom@macpa.org  Web  hUp://www.macpa.org  Blog  hUp://www.cpasuccess.com  Blog  hUp://www.bizlearningblog.com      

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