Presentation at ASAE10 Annual Meeting & Expo in Los Angeles. using the Digital now framework of Inspect, Innovate, Integrate, Hugh Lee & Don Dea cover how senior executives in associations can successfully innovate. Tom Hood from the Maryland Association of CPAs is featured as a case study.

1. The Association That Innovates Integrates: The Senior Executive’s RoleAugust 22, 20101:30PM - 2:45 PM Tom Hood, CPA.CITP, CEO & Executive Director Maryland Association of CPAs Hugh Lee, President, Fusion Productions Don Dea, Co-founder, Fusion Productions www.asaecenter.org Connecting Great Ideas and Great People

3. “In order to understand the future, we need to look back at least twice as far.” ~Jane McGonigal, ForecasterInstitute of the Future

4. Before the Turn of the Century

5. Evolution of the Internet Web 2.0: Collaboration Web 3.0: Ubiquitous and Intelligent Web 1.0: Information

6. 2000 2010 46% of adults use internet 75% of adults use internet Pew Internet Where We’ve Been: Then and Now

7. Where We’ve Been: Then and Now 2000 2010 5% havebroadband at home 62%havebroadband at home Pew Internet

8. Where We’ve Been: Then and Now 2000 2010 50% own a cell phone 80% own a cell phone Pew Internet

9. Where We’ve Been: Then and Now 2000 2010 0% connectto internet wirelessly 53% connectto internet wirelessly Pew Internet

10. Where We’ve Been: Then and Now 2000 2010 <10% use “cloud” >66% use “cloud” Pew Internet

11. Where We’ve Been: Then and Now 2000 2010 = slow, stationaryconnections built around my computer = fast, mobileconnections built aroundoutside servers and storage Pew Internet

12. Information Overload

13. Speaking of growth… Charlene Li: DigitalNow DigitalNow-Li

14. Generations Online in 2009 70% 30% Pew Internet Pew Internet

15. Activity Pyramid: Online Pursuits by Generation The majority of teens and Gen Y use Social Networks Active engagement with social media More advanced online entertainment Older generations typically do not engage with the internet past e-commerce More advanced communication and passive social media use Basic online entertainment The vast majority of online adults from all generations uses email and search engines E-commerce Research and information gathering Email and search Pew Internet Pew Internet

16. Why Should We Care?

17. #1 – Demographics is destiny. These guys are retiring These are the new workers These are making the purchasing decisions Facebook Generation Email Generation 1964 Age 46 1984 Age 26 1948 Age 62 Source: John Newton, Alfresco

18. Stakeholder/Members/Users Expectations Increase

19. … and the “long tail” becomes more important-- Chris Anderson

20. Flattened Hierarchy Time Shifting Virtual Connections Digital Tools Convergence Constant Change Privacy Culture Changing Face of Communications Members Consumers Stakeholders Students Professionals

21. Technological Obsolescence … “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” Anthony Warren and Gerald Susman, The Pennsylvania State University

22. DigitalNow Model Inspect Innovate Integrate

23. Inspect

24. Dashboards

25. Executive Dashboard

26. Innovate 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. Anthony Warren and Gerald Susman, The Pennsylvania State University

27. Innovate Anthony Warren and Gerald Susman, The Pennsylvania State University

29. Impose market and competitive discipline

30. Lay out clear operations specifications

31. Articulate and document assumptions

32. Plan to checkpointsRita Gunther McGrath

33. Integrate

34. MACPA CASE STUDY

35. Inspect - Start with Strategy and make sure everyone can ‘see’ your thinking Structure & Governance project – 2 years, 90% membership support, 150% dues increase during a recession On-site training & Business Learning Institute – R&D investment + ¾ FTE Social media Career Center – Learning & Compliance System

36. MACPA’s Strategic Position 14,188 18,876 State CPA Societies 689 10,500 2,015 2,802 6,973

37. MACPA’s National Rankingamong State CPA Societies MD is in Top Ten

39. Vision Prioritization GridWhere is your portfolio ? 10 Vision Aligned 5 1 10 1 5 Business Purpose

40. Market Size $39,800,000 Market Size $9,950,000 On-site Training

41. Inspect – Our questions Does it have good strategic fit? Market share and market knowledge and getting the data Does it focus on our strengths? Collaborative planning + open leadership Technology as an accelerator of strategy

42. Significant Elements of the Plan Member Service Center - knowledge management (2 FTE) Increased public relations (1 FTE)- focus on students entering the profession Increased marketing emphasis (1 FTE) - Integrated Marketing Conferences, Committees, Chapter CPE all delivered under Professional Development - Conference Manager (1 FTE)

43. What does this plan accomplish ? Allocates resources based on Strategic Priorities (effectiveness) Structures MACPA based on deliverables to the membership Accountability for results Positions MACPA in a leadership role and succession planning for the profession

44. How do we know this will work ?Risk Profile Plan has extensive member involvement from its inception Consistent with all leading edge studies and theories (ASAE 14 trends, CPA Vision, horizontal, value-based mgmt) Staff led design teams and empowerment Staff increases & Revenue targets are within State Society peer group ranges

45. Innovate Executive sponsorship – CEO a must! Separate budget & allocated staff Feedback loop and progress review Sense & respond approach

46. The Projects Structure & Governance & New services to members BLI + on-site training Social media strategy Career Center – Learning + Compliance + Careers

47. Integrate + another I This is the hard part… Involvement of key people Strategy as process Board – Staff Partnership & Collaboration I2A – Insights to Action Sight – Insight – Create – Communicate – Inspire to Action

49. Strategic Plan Progress The group felt we made a lot of progress on our major strategic priorities 45

50. Setting our Priorities 46 We put our priorities into categories and assigned “champions”

51. Our Commitment Wall 47

55. Summary Inspect: Critical Indicators Innovate: SAR Integrate: Execute

56. You can…Ignore itFight it or Harness its power

57. “The best time to plant a tree was 20 years ago, the second best time is today”Chinese proverb

58. Contact Us

59. Social Network