Session for MACPA's Beach Retreat on July 6, 2012. The 5 C's (seas) Change, Complexity, Compliance, Convergence, and Competition. We covered the latest trends in social business and what it means from a leadership and change management perspective.

1. Navigating Turbulent Times
Navigating the 5 C’s
July 6, 2012
Tom Hood, CPA, CITP, CGMA
MACPA-­‐Logo-­‐medium.jpg

2. 2
Picture: John Drake - Flickr
...where the most important skill is the ability to
acquire new skills.

3. MANAGING
THE
SEA
CHANGE
• Change
• Complexity
• Compliance
• Convergence
• Compe<<on

4. The
“New
Normal”
h=p://www.endoAusiness.com

5. Survival is not mandatory
www.bizlearning.net

6. “You
can’t
stop
the
waves,
but
you
can
learn
how
to
surf.”
–
Jon
Kabat-­‐Zinn
A
Tahi'an
reef
and
a
Kauaian
surfer,
both
in
perfect
focus.
Photo:
Noyle/SPL
www.bizlearning.net

8. Humans
are
fundamentally
“sight”
creatures
We
need
longer
sightlines
during
periods
of
rapid
change
And
the
power
of
making
our
thinking
visible
to
others…

10. Innovation distinguishes between a
leader and a follower - Steve Jobs

11. Technology

12. Ideas

13. People

14. Technology
Ideas
People

15. Insight to action - one without the other is either
useless or destructive

16. What we see…

17. Scans
www.bizlearning.net

18. Meetings
www.bizlearning.net

19. 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

20. www.bizlearning.net

21. Listen to your junior officers
www.bizlearning.net

22. Generations – the # 1 issue
www.bizlearning.net

24. www.bizlearning.net

25. You have three years!
www.bizlearning.net

26. Go social, Go native!
www.bizlearning.net

27. 1. Sight - Ability to see emerging patterns
and shift perspective when necessary
2. Insight – Ability to think strategically and
critically to gain insights
3. Create – Seek high leverage
opportunities that build on your strengths
4. Communicate - Ability to make your
thinking visible to others and the ability to
collaborate inside and outside your
organization
5. Inspire – Ability to mobilize support and
engage others involved in doing the work
to join you in ACTION
27
Five Qualities of
Extraordinary Leaders

28. Start With Why
www.bizlearning.net

29. The Opportunity – Be the House
Our i2a Strategic Thinking System is built on proven and
researched strategic planning and change management principles.
• 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
www.bizlearning.net

30. Growth & Innovation
www.bizlearning.net

31. What can you do to boost your odds?
Tipping
point
which
way
will
they
go?
This is your
risk point!
Inner Circle Informed Pragmatists Skeptics No-Nos
Bought-in Leaders I’ll wait & see Prove it to me I don’t like this
I support it
Adoption of almost everything happens along a bell curve according to Geoffrey Moore.
Change and ideas are no different, the key is to tip the odds in your favor and pay attention to
the numbers of people in each level of your organization and within each group.
www.bizlearning.net

32. Strategy
as
Process
-­‐
Our
i2a
Framework

33. How do you tip the odds in your favor?
Strategy as Process
using a simple framework that
can be repeated
And cascaded
throughout your
organization • Engagement
• Alignment
• Commitment
Rocket fuel • Accountability
for strategy
www.bizlearning.net

34. Tipping the Odds in Your Favor
Kim Cameron states, "Those who positively energize others are higher performers.
Position in the energy network is four times the predictor of performance compared
to position in the information or influence networks."
www.bizlearning.net

35. Why executives should care about
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
www.bizlearning.net

36. Turn the Flywheel with Alignment
“Alignment is a mode of belonging
that is not confined to mutual
engagement. The process of
alignment bridges time & space to
form broader enterprises so that
participants become connected
through the coordination of their
Alignment focuses on the energies, actions, and practices.
future and builds trust.
Alignment is about getting Through alignment, we become part
their discretionary effort. of something big because we do
what it takes to play our part."
- Etienne Wenger
Communities of Practice
www.bizlearning.net

37. Cascading Alignment throughout the
organization creates Commitment
Cascading by understanding
the top level goals
and linking the
next level down
through the
organization
Firm-wide
Sample alignment
Regional & Practice Levels worksheet from
MACPA
Office Level
Individuals Align Their Goals to the Firm
www.bizlearning.net

38. You are probably reaching the rider, BUT
… are you reaching the elephant? How?
www.bizlearning.net

39. Feedback From Partner’s Meeting
www.bizlearning.net

40. www.bizlearning.net

41. Lessons from Switch:
How to Change Things When Change is Hard
Each person has an emotional Elephant side and a rational Rider side.
You’ve got to reach both. And you’ve also got to clear the way for them to
succeed. In short, you must do three things:
• Direct the rider
• Find the bright spots
• Script the critical moves
• Point to the destination
• Motivate the elephant
• Find the feeling
• Shrink the change
• Grow your people
• Shape the path
• Tweak the environment
• Build habits
• Rally the herd
www.bizlearning.net

42. 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.
Our 12a: Insights to Action framework allows you to engage and align
your firm and engage your people in the meaningful work of your
organization. This increases buy-in and discretionary effort that
defines high performing organizations.
www.bizlearning.net

43. Learning & Leadership
www.bizlearning.net

44. Find your Edge
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 your
competition.
- Tom Hood, CPA,
CITP,CGMA
CEO of the MACPA & the
Business Learning
Institute
44

45. Tom Peters advice on keeping your L > C

46. "In a world that shows no
signs of slowing down, no
individual can rest on his
or her intellectual laurels…
The future belongs to this
organizations, as well as
those individuals, that
have made an active,
lifelong commitment to
continue to learn.”
- Howard Gardner
Five Minds for the Future
46

47. Superior Talent Generates Results"
& Superior Learning Strategy
Generates Superior Talent
 26% higher revenue per employee
 40% lower turnover among high
performers and 17% overall
 29% higher level of engagement
 36% higher readiness in
leadership and management
47
Trends in Learning & Development

48. What CPAs have said about the future:
1. Changing demographics - Aging workforce, diversity, 4 generations in the
workplace
2. Increased globalization, economic shifts and increasing competition
3. The technological revolution - cloud, social, big data & XBRL
4. Issues around Information Security, Privacy & data integrity
5. Shift to consumer and employee power (from push to pull)
6. Changes in the way we communicate - mobile, txt, skype
7. Work-life challenges or conflict - "do more with less", 24/7 work
8. Information Overload - filter failure
9. Increasing complexity of rules and standards (IFRS, GAAP, PCAOB, SEC)
10. Economic uncertainty - deficit, debt and pressure on government
http://www.slideshare.net/thoodcpa/top-trends-to-watch-2012-cpa-horizons-2025
American Institute of CPAs

49. The
DNA
of
the
CPA
Values
&
Competencies
• Leadership
• Communica<on
• Strategic
Thinking
• Collabora<on
&
Synthesis
• Technologically
Savvy

50. The Learning Matrix
Aligned to your Strategy
Practice Areas
• How we work
• Skills we need
• Knowledge
Competencies
• Skills
• Abilities
• How we grow
Staff Levels
• Career Paths

51. Customized to meet your
firm Competencies and
aligned with your strategy
www.macpa.org

52. Staff
Principal/
Decision making Director
by specification, Leading and/or
task specific work
developing new practice
areas, strategic alliances
& talent
Critical
Turning
Senior
Point
Senior
1st level supervision The
on established
Bounce
Manager
guidelines & Assess & understand
standards
longer-term variables
& accomplishing
future goals
Manager
1st level of strategic
thought & focus on
boundary spanning
activities
Copyright 2012 – Business Learning Institute

53. The Business Learning Institute developed the AICPA Leadership Academy in 2009 replacing
the Kennedy School of Harvard University. Since then we have run it consecutively for the
AICPA and in 3 states and 2 firms, developing some of the Profession’s top leaders

54. Why
CEOs
should
care
about
Social
Media
“In-­‐forming
is
the
individual
person's
analog
to
open-­‐sourcing,
outsourcing,
insourcing,
supply-­‐chaining,
and
offshoring.
Informing
is
the
ability
to
build
and
supply
your
own
personal
supply
chain—a
supply
chain
of
informaCon,
knowledge,
and
entertainment.
In-­‐
forming
is
about
self-­‐collaboraCon—
becoming
your
own
self-­‐directed
and
self-­‐
empowered
researcher,
editor,
and
selector
of
entertainment.
–
Thomas
Friedman

55. Why CEOs should blog?
1. Thought Leadership (Jody Padar example)
2. Engagement with more members and shared
insights (AICPA Leadership Academy)
3. Real Time Focus group
4. Communication and connecting your organization
(Marriott Story & MACPA CFO Conference)
5. MACPA uses of social media
6. The Power of Blogging
7. Case Studies (Connecting to Thought Leaders, Connecting to Members –
Books, MACPA Beach Retreat & NE CPE Conference)
8. Top Ten (Social) Learning Technologies
9. Risk Management
10. It is bigger than you think - Social Organizations
11. Getting Started
12. If you Need Help & Resources

56. Seth Godin & Tom Peters
www.bizlearning.net

57. Success
in
a
Connected
World

58. Thought
Leadership

59. Social
Media
Engages
&
Shares
Insights
The
twi=er
stream
from
AICPA
Leadership
Academy
35

60. Real
Time
Focus
Group
Example
of
using
Twi=er
to
get
immediate
real
<me
feedback
for
this
preso

61. The
Marrio=
Story
“Bill’s
blog
makes
me
feel
connected
to
the
organiza'on
in
a
way
I
had
not
felt
before.
I
feel
more
informed
and
closer
to
the
organiza'on
than
ever
before.”
–
from
a
Marrio=
Finance
Team
member
during
an
MACPA
Professional
Issues
update
at
their
HQ
in
Bethesda,
MD
].
What
if
you
could
keep
your
organiza<on
informed
and
inspired
by
your
thoughts?

62. Case
Study
–
MACPA
Beach
Retreat
The
next
three
slides
show
the
way
you
can
use
social
media
to
engage
a
broader
audience
and
create
a
resource
for
par<cipants.
1. Post
preso
on
www.slideshare.net
2. Embed
it
and
other
resources
and
links
in
your
blog
post
3. Tweet
it
out
and
use
the
@name
of
people
men<oned
4. Let
the
conversa<on
con<nue!

63. Follow
the
links
How
social
media
can
be
used
for
leadership
&
learning
• Live
session
at
MACPA
Beach
Retreat
• Video
interview
w/
Emmanuel
Gobillot,
author
of
Leadershik
h=p://youtu.be/3nUhFut5CjM
• Post
preso
on
www.slideshare.net
h=p://dld.bz/afX8M
• Blog
post
about
Beach
Retreat
session
on
www.cpasuccess.com
h=p://dld.bz/afX2K
• Blog
sends
out
tweet
h=p://dld.bz/agc52
men<ons
example
from
class
twi=er
handles
• Tom
Peters
responds
h=p://dld.bz/agc5U
• Emmanuel
Gobillot
responds
on
Twi=er
h=p://dld.bz/agc6v
• And
on
www.bizlearningblog.com
w/
comment
h=p://dld.bz/agc6C
• And
involved
Joe
Bou=e
h=p://dld.bz/agc6Q
• And
featured
by
Dr.
Steve
Hornik
(UCF
–
Accoun<ng)
h=p://dld.bz/agc8f

65. The
post
was
even
featured
in
an
accoun<ng
educator’s
“daily”
distributed
to
his
followers.
http://dld.bz/agc8f
Featured
our
blog
post

66. My network map
1
–
1,736
2
-­‐
430,700
3
–
10,337,400
www.bizlearning.net

68. 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
Paul DePodesta - VP of Player
Development for the New York Mets
formerly Asst GM of Oakland A’s
68
Adopt a moneyball mindset