Reinvent Your Firm with Strategic Innovation
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The document discusses the need for CPA firms to reinvent themselves through innovation. It notes that while most firms see the need for innovation, few have identified clear innovation priorities or developed an innovative culture. The document provides strategies for firms to develop an innovation mindset, including understanding trends, prioritizing innovation initiatives, and cultivating skills like strategic thinking. It emphasizes that innovation must be a firm-wide, continuous effort to develop new offerings that create value for both existing and new clients.
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Reinvent Your Firm with Strategic Innovation
- 1. It May Be Time to Reinvent Your Firm! Tom!Hood,!CPA,CGMA,CITP! June!29th,!2016!
- 3. Download today’s slides at … www.SlideShare.net/thoodcpa
- 4. Vote for a question Respond to Poll Ask a Question BLI.CNF.IO Select your session and join the conversation:
- 11. Top!5!Challenges! 1. Doing!more!with!less! 2. Being!reac>ve!versus! proac>ve! 3. Change!management! 4. Not!enough!>me! 5. Talent!reten>on!
- 12. Top!5!Skills!Needed! 1. Strategic!&!cri>cal!thinking! 2. Communica>on! 3. Analy>cal!skills! 4. Inspiring!and!mo>va>ng!others! 5. Collabora>on!and!mobilizing!consent!
- 14. Reinvention is not changing what is, but creating what isn’t. A butterfly is not more caterpillar or a better or improved caterpillar; a butterfly is a different creature.
- 15. “The definition of innovation is broadening. Once deemed the exclusive province of R&D departments, it is now widely accepted as a fundamental part of every aspect of a business.” Source: CGMA Report Managing Innovation: Harnessing the power of Finance
- 16. WHY?
- 18. #PSTech “One interesting finding of the survey is that CPA firms, early majority or not, don’t really see a competitive threat from specific challengers.” – Erik Asgeirsson – CEO of CPA.COM
- 19. Race Against the Machines? Source: Frey & Osborne –The Future of Employment – Oxford University
- 20. 74% Next gen leaders do not believe their organizations are encouraging practices that foster innovation Source: Deloitte Millennial Survey
- 26. www.blionline.org No. 1Issue is People!
- 27. 1. Look!Beyond!the!Billable!Hour! 2. More!Focus!on!Career! Development! 3. Engage!Us!in!your!Vision!and! Purpose! 4. More!Coaching!and!Mentorship! 5. More!Frequent!Feedback! 6. More!Leadership!Development! 7. More!Transparency! 8. Thank!You!! 9. More!Collabora>on! 10. More!Focus!on!the!Future! Ten!Things!Young!Professionals!Want!You!to!Know!
- 29. www.blionline.org The BLI Magnetic Firm Framework
- 30. 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
- 31. The Six Steps of Talent & Leadership Development 1. Talent & Leadership Strategy 2. Competencies 3. Career Path (Ladder) 4. Curriculum & Content 5. Compliance & Governance 6. Communicate and Inspire
- 32. Geoffrey Moore: Innovation “Any type of differentiation in your practice that drives preference.”
- 33. Innovation is creating value in anticipation of future trends & customer needs.
- 34. ! 10 Types of Innovation: Many Options Source: Ten Types of Innovation, Larry Keeley “Pragmatic Innovation” by Amy Radin at Digital CPA Conference 2015 7. Service how you service your customers 6. Product system extended system that surrounds an offering Product performance Offering Product system Service 5. Product performance basic features, performance and functionality Channel Delivery Brand Customer experience 10. Customer experience how you create an overall experience for customers 8. Channel how you connect your offerings to your customers 9. Brand how you express your offering’s benefit to customers Core process Process. Enabling process 3. Enabling process assembled capabilities 4. Core process proprietary processes that add value Business model Finance Networking 2. Networking enterprise’s structure/ value chain 1. Business model how the enterprise makes money Inside-out Outside-in
- 35. ! Combining Types: Strongest Path Business model Finance Networking Channel Delivery Brand Customer experience Core process Process Enabling process Product performance Offering Product system Service Source: Ten Types of Innovation, Larry Keeley “Pragmatic Innovation” by Amy Radin at Digital CPA Conference 2015
- 36. Top Challenges We asked: What are you biggest challenges - Pick the top 5
- 37. Most Common Drivers of Innovation 1. 31% organizations with and “innovation culture” 2. 17% have financial incentives for employees who innovate successfully 3. 15% distribute regular employee surveys that ask for innovative ideas 4. 13% have a clearly defined risk appetite that sets the parameters for innovation 5. 10% use “stage-gate” processes that help early-stage innovations while limiting risk 6. 5% participate in “crowd sourcing” through software or social media
- 38. Recipe for Innovation 1. The right culture – collaborative and inclusive 2. Purpose-driven and visionary leadership 3. Continuous learning and improvement 4. Competencies and skills to support innovation 5. Tolerance for risk and failure
- 39. Tactics – How to jumpstart your innovation Understand the hard trends • Technology • Demographics • Regulations Get an outside-in view of your organization Start with the customer (not your product or services) Ask questions like ‘what is hard for you?’ Keep abreast of what other firms are doing Build new competencies • Anticipation and Identifying trends • Comfortable with failure • Collaboration Set priorities 12-18 months Review every 90 days
- 40. Top Skills Needed for Accounting and Finance Professionals 75% covered by theseTop 5 Skills
- 41. Q: To what extent does each of these functions contribute to innovation at your organization? Source: AICPA Business and Industry Economic Outlook Survey, 3Q 2013. - See more at: http://www.journalofaccountancy.com/news/2013/sep/20138692.html#sthash.vVK5v2vo.dpuf
- 43. “My Firm’s Innovation Priorities over the Next 12-18 Months” 32% 50% 38% 35% 2% 62% 46% 4% 41% Implementing a cloud-based accounting solution. Implementing a new offering for a specific market segment we believe has growth potential. Updating current offering(s) to be more competitive. Deciding and moving forward on what our innovation priorities should be. Responding to a competitor who is outpacing us -- new entrant or existing player. Developing new offerings that expand the value we provide to our existing clients. Developing new offerings or approaches to the market that attract new clients. Innovation is not a priority we plan to focus on in the next 12 to 18 months. Realizing value to the firm from existing innovation investments. Source: 2015 Innovation in Public Accounting Profession Survey, by CPA.com
- 44. Changing Landscape of Technology “Up until about 10 years ago, Durkin said, accountants would identify needs and then buy technology to fill those needs. Now, he said, technologies are being developed before accountants even identify needs.” – Dennis Durkin, CPA, CFO See more at: http://www.journalofaccountancy.com/news/2013/sep/ 20138692.html#sthash.vVK5v2vo.dpuf
- 45. “It’s a Templosion” “I like Tom Hood’s VUCA term to define the paradox. ‘Rapid, short- term change and long-term leadership ideas and goals simply don’t mesh well.’” - Hubert Glover, Author: The Making of the Twenty-First-Century Leader “It’s aVUCA world –Volatile, Uncertain, Complex, and Ambiguous … the answer to rapid changes and hyper-competition is a bold vision and core value’s; maintaining values that don’t change while constantly re-inventing the shorter term strategy.” - Tom Hood, CPA.CITP, President & CEO, Maryland CPA Society
- 46. Disintermediation Removing the middleman -- a popular buzzword used to describe how Internet-based businesses are using cloud and mobile technologies to reach customers. These companies provide products and services cheaper and faster. These technologies are revolutionizing the way products and services are bought and sold, and disintermediation is the driving force behind this revolution.
- 48. Group Exercise Let’s use Burrus’ hard trend framework How can I give my customers the ability to do what they can't do but would want to -- if they knew it was possible? – Daniel Burrus Identify 3 Hard trends/Soft trends predictable problems/ opportunities for innovation
- 49. 1. Developing new offerings that expand the value we provide to our existing clients 2. Implementing a new offering for a specific market segment we believe has growth 3. Developing new offerings or approaches to the market that attract new clients 4. Realizing value to the firm from existing innovation investments 5. Updating current offerings to be more competitive 6. Deciding and moving forward on what our innovation priorities should be 7. Implementing a cloud-based accounting system Top Innovation Priorities for ‘Early Majority’ Firms over the Next 12-18 Months* *CPA.COM Innovation in Public Accounting Survey
- 50. Innovation Tools • Business Model Canvas • Anticipatory Organization to build skills and create an innovative culture • RONI - Risk of Not Investing
- 51. Tools: Business Model Canvas
- 52. • An>cipa>on! • Strategic!Thinking! • External!Awareness! • Vision! • Con>nuous!Learning! • Innova>on! • Crea>vity! • Problem!Solving! • Priori>za>on! • Business!Acumen! • Decisiveness! • Influencing/Persuading! • Emo>onal!Intelligence! • Consensus!Building! • Collabora>on! • Inspira>on! • Risk!Management! • Communica>on! http://www.blionline.org/ao
- 53. Disruption and RONI! The gap is widening, faster! Source: Clayton Christensen, “Innovation Killers” We think this is trade-off
- 54. “I am currently putting time and effort into building new ways to differentiate our practice to build client preference, either for existing clients or to attract new clients” 54%38% 7% 1% EARLY MAJORITY RESPONSES To a great degree To some degree To a very limited degree To virtually no degree/ not at all Source: 2015 Innovation in Public Accounting Profession Survey, by CPA.com
- 55. Closing Thoughts When everything is changing it is important to know what should not change…
- 56. 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 2013 - 2015 Top 150 Influencer by Linked-In Top 25 Influencers in Learning & HR - HR Examiner Top 25 Public Accounting Thought Leaders - CPA Practice Adviser Co-founder of the Business Learning Institute CEO Maryland Association of CPAs (MACPA) www.macpa.org Business Learning Institute (BLI) www.blionline.org http://www.linkedin.com/in/tomhood/