The theme of the Northeast CPE Conference is "Today You Can See Tomorrow". Tom Hood is the opening presentation where he will focus on the forces affecting the CPA profession and set the context for the changing world of CPE (Continuing Professional Education). The theme is Leadership in the New Normal and how to lead in turbulent times.

1. Today You Can See Tomorrow
Northeast CPE Conference - 2011
Professional Issues Update
Leadership in the New Normal
Tom Hood, CPA.CITP
Maryland Association of CPAs
Business Learning Institute
1

2. Thought Leader in Leadership - Learning - Technology
“With a social media outreach in the tens of thousands, Hood is well
Tom Hood known for his pioneering use of Second Life, multimedia and social
CPA.CITP networking tools to communicate and educate.” That is what Accounting
Today magazine said in their 2010 profile of Tom as one of the Top 100
BIO Most Influential People in the CPA profession (his sixth time).
Tom is best known for his role in helping CPAs “shape their future” through his work at
the Maryland Association of CPAs and the Business Learning Institute, a center for the
tom@macpa.org development of leadership and strategic thinking skills for CPAs. He stands out in three
areas, leadership, learning, and technology.
(443) 632-2301
He was recently named as one of the Top 25 Thought Leaders in Public Accounting
Web Technology by CPA technology Advisor, one of the Top 25 Online Influencers in Talent
Management by HR Examiner and as one of the Top 100 Most Influential People in the
CPA Profession by Accounting Today Magazine (sixth time in 2010).
www.macpa.org
www.bizlearning.net Tom and his team have facilitated and taught the Major Firms Group (Top 100 CPA
firms) for the AICPA, the AICPA Leadership Academy and facilitated strategic plans with
numerous national AICPA committees and leading CPA firms from all over the US, along
Blogs with corporations and non-profits. Tom also co-authored BLI’s i2a - Insights to Action a
strategic thinking system that is used to cultivate leaders and a strategic planning process
www.cpasuccess.com to help organizations navigate today’s permanent whitewater environment.
www.bizlearningblog.com
He is a nationally recognized author, speaker, and consultant. Tom and the MACPA have
www.cpalegislativeinsider.com been featured in the Journal of Accountancy, Accounting Today magazine, and
www.slacpa.org AccountingWeb. He also won the AICPA Special Recognition Award for his
www.cpaisland.com contributions to the profession leading the CPA Vision Project in 2003. He is also
considered as a thought leader in the Association Community speaking at the
DigitalNow Conference and the ASAE (American Society of Association Executives)
Social Media Tom likes to say much of his success as a CPA is due to membership in associations. He
has been an active volunteer since starting his career. He has been past-president of the
www.twitter.com/tomhood
Maryland Association of CPAs (1993-1994) and currently on the AICPA CPE Advisory
www.linkedin.com/in/tomhood Committee. He has served on several key national committees - the AICPA Enhanced
www.facebook.com/thoodcpa Business Reporting Committee and AICPA Special Committee on Mobility. He is also a
http://www.slideshare.net/thoodcpa member of the ASAE, World Future Society in addition to the AICPA & MACPA.
http://www.youtube.com/user/
In addition to his history as an association executive and CEO, Hood has experience as a
thoodcpa
high level executive in industry, specifically as treasurer and CFO of Bryn Awel
Corporation, a privately owned $75 million highway construction company.
Second Life He is a graduate of Loyola College (B.A. in Accounting) and has a Master’s in Finance
SL Rocky Maddaloni (Real Estate) from Johns Hopkins University and a Master’s equivalent in Information
http://slurl.com/secondlife/CPA Systems from the University of Baltimore. He also obtained the Certified Information
%20Island/146/189/21/ Technology Professional (CITP) certification from the AICPA.

3. The recession is over? Many of our CPAs
are continuing to see rough seas ahead
2

4. CPAs and
businesses are
feeling
overwhelmed by
the rapid and
turbulent pace of
change

5. You would like to be ahead of the waves
instead of being crushed by them

6. Today we will show you how you can survive
and even thrive these waves of change
Photo: Pratt’s surfing page

7. Our agenda
• What do we see?
– Economy
– Regulations & Standards
– Globalization
– Technology
– Workforce & demographics
• What does it mean to lead in
turbulent times?

8. A useful framework for dealing with
change – strategic thinking using our i2a –
Insights to Action System
Making sense of
What
a changing &
possibilities
complex world
do we see?
What does it What direction
mean to us? should we go?
Who do we need to
How is the
inspire to help us get
world
there?
changing?

9. Report from the future…

10. Re‐Set, Re‐Think, Re‐Imagine
Anticipation of a very large business model
change amidst rapid change – Steve King
There are two recessions – the
obvious one and the not so
obvious, the end of the industrial
age where perfecting the model
was the key. The new model will be
completely different. – Seth Godin
#4 Rethinking the Business Model (25)
from AICPA MFG

11. The Economy

12. Where have the jobs gone – 8,000,000
down
Source: Small Business Labs blog – Fidelity.com

13. Are we in the “Loch Ness Monster”
Economy?
“Characterized by a
series of dips
superimposed on a
slow underlying
economy thru 2020”
‐ Business Redefined by Ernst & Young

14. Regulations & Standards

15. The Federal Issues
• FTC Red Flags rule – privacy
& identity theft
• Tax Preparer Registration &
PTIN issue
• Patient Protection Act &
1099’s
• Sub S. Employment Tax Issue
• H.R.5297 ‐ Small Business
Jobs and Credit Act of 2010 –
1099s
• Tax Patents

16. Massive legislation in a very short time
Patient Protection Act Dodd-Frank Wall Street Small Business Tax Relief
Reform & Consumer Act
Financial Protection Act

17. A useful framework to
understand the CPA profession
The CPA profession is part of the bigger infrastructure
that supports the US free market system. Like the pipes under
urban streets, it is often invisible until it breaks.

18. The (infra) Structure of the CPA Profession
Federal & State Laws & Regulations
– SEC, DOL, Treasury, GAO, PCAOB
CPA Profession Standards – AICPA &
FASB, GASB, FASAB, IASB
State CPA Statutes (Law)
State Boards of Accountancy issue licenses and regulate CPAs

19. Recent example – The Dodd – Frank Wall Street
Reform and Consumer Financial Protection Act of 2010
Crisis hits news
Bureau of Consumer
Financial Protection
848 pages!
533 regulations
60 studies
94 reports

20. What did we do when you were forced
to have a license in every state you file
A
taxes in? WA
MT ME
VT
ND
K
OR MN NH
ID
SD WI
WY NY *MA
MI
• Collaborative effort with AICPA – NE IA *PA CT RI
NV OH
CPA/SEA – NASBA & State CPA
CA
UT
CO
IL IN
WV
DE NJ
VA
KS
HI Societies MO KY
NC
MD
TN DC
• 47 states passed legislation in three
AZ
NM
OK
AR SC
(3) years MS AL *GA
TX LA
• Maryland enacted it in 2008 FL
Awaiting Governor Signature - 1
PR
CPA Mobility Legislation Pending - 2
GU
U.S. VIRGIN ISLANDS
CPA Mobility Enacted 46
* CPA Mobility Enacted Only for
Other Mobility States – GA, PA, MA
19
In Process

21. It’s 7:00 am at a town hall
meeting in Aberdeen when the
AICPA alert comes in…

22. More than 100 MACPA members call our senators and we
defeat the amendment!

23. Protecting by advocating for members
(CPAs) = real results!
Working together with the AICPA and many State CPA Societies achieved these:
Retained independent structure of financial
accounting standards (FASB)
Modified provision to audit broker‐dealers
(PCAOB)
Exempted CPAs from CFPA registration due to
existing licensing and oversight
Stopped excessive liability exposure for
auditors (aiding & abetting)
Commented on SOX 404(b) exemptions

24. Professional Standards are also rapidly
changing

25. Another way to look at standards & oversight
Public Company Private Company Int’l Company
Financial SEC FASB IASB
Reporting
FASB PCFRC IFRS & SME
Audit /Attest
AICPA
Performance
Standards
PCAOB ASB, ARSC, PRB
IAASB
Code of AICPA AICPA
Conduct
PEEC PEEC
IFAC
CPA
State Oversight & Enforcement of CPA License
Licensure

26. Six Ways Convergence is happening
1. FASB – IASB Convergence Project
2. SEC IFRS – The Long and winding roadmap
3. Private Company Standards
4. AICPA Auditing Standards Board ASB Clarity
project
5. AICPA Professional Ethics Executive
Committee – convergence
6. Green / Sustainability reporting

27. Globalization
As the globe
shrinks,
opportunities
grow for
CPAs

28. 5 Forces of Globalization
1. Growth of consumers in emerging economies
2. Technologies that empower consumers &
communities
3. Increase in labor productivity in developed markets
4. Shift of economic activity between and within
regions
5. Increasingly global markets for labor & talent

29. Growth is projected to come from
overseas for the next five years while the
US remains flat

30. Priority #1 Exports by Small to Medium
Enterprises (SME’s)
• 33 % shipments
overseas by UPS
• 25% of small
practices had
international clients
• US targets 100%
increase in exports
by SMEs

31. Technology
• Cloud
• Mobile
• Location‐based /
Augmented Reality
• Security / Privacy
• Social Media
• XBRL

32. It’s the power of the network

33. Are you on Facebook?

34. It’s the power of the network

35. Social media = social capital
real world examples

37. The IRS is on Twitter are you?

38. The AICPA is on Twitter are you?

39. CCH is on social media

40. Workforce & Demographics

42. 5 Generations in the workforce
Live First, Work Second
Digital
Natives

43. Workforce & Demographics – Are you
ready for the shift change?
These guys are retiring These are the
new workers
These are making the
purchasing decisions
Facebook
Email
Generation
Generation

44. Bright spot?

45. What today’s workers want
• Engage your top performers
• Coach tomorrow’s leaders
• Manage your Millennials
Think AMP
• Autonomy
• Mastery
• Purpose

46. The CPA Profession
Flat is the new growth
3% average growth
Some declines
Competition is increasing

47. Accounting Firms Most Trusted
Advisors
• Generally speaking, how believable do you normally find
statements made by someone who works for one of
these organizations or groups
• “Echo Boomers” (18‐34) rated accounting firms highest–
74%
67%
62%
Acctg Firms
55%
51% Banks
49% 47% Investment Firms
Health Ins. Co.
36%
Mortgage Companies
Gov't regulators
Credit Card Co.
Source: Harris Poll, May 18

48. CPAs most profitable small businesses

49. Top 10 Issues Facing CPAs
1. Economic Outlook
2. Tax
3. Business Operations
4. Implementation and Execution
of Plans
5. New Business Development
6. Personal/Professional
Development
7. Management and Leadership
8. Financial Regulatory Reform
9. Access to Financing and Credit
10 New Accounting Standards,
IFRS
Source: CPA Trendlines for AICPA Feb, 2010

50. Top Ten Issues for MFG
1. Regulatory/Legislative (56)
2. Private Company Leadership (47)
3. Capital Markets Awareness / Recognition (34)
4. Rethinking Business Model (25)
5. Protect Audit/CPA Franchise (20)
6. Risk Management (Audit efficiencies) (20)
7. Leadership Development / Succession
Planning (19)
8. Global / International (Clients / IFRS /
Branding) (17)
9. Leveraging Technology & Social Media (17)
10. MFG Issues specific forums / focus groups (8)
49

51. Grant Thornton report outlines 8 key areas
for CFOs to focus on
1. Developing soft skills
2. Understanding and applying international
accounting standards
3. Understanding complex accounting & auditing
standards
4. Adapting to an evolving regulatory framework
5. Addressing new external reporting needs
6. Understanding ERP or IT systems & XBRL
7. Employing quantitative risk management
techniques
8. Possessing specialized industry knowledge &
company's non-financial business drivers

52. What is leadership and why
is it important?

53. “You can’t stop the waves, but you can learn to surf”
- Jon Kabat-Zinn
Photo: Pratt’s surfing page

54. Leadership is still about…
• Engagement
• Alignment
• Accountability
• Commitment
“First I get all of my men facing the same direction.”
- Napoleon

55. How is leadership changing?
“What got you here won’t get you there.”
– Emmanuel Gobillot - Leadershift

56. How Leadership gets it done is changing!
From: Command & Control
To: Connect & Collaborate

57. Turbulent
times require
new skills and
new thinking
Source: Chief Learning Officer magazine

58. Five Qualities of Extraordinary Leaders
1. Sight - Ability to see emerging
patterns and shift perspective
when necessary
2. Insight - Ability to learn faster
than the rate of change in your
industry
3. Create - Ability to think
strategically and creatively to
gain insights that create new
opportunities
4. Communicate - Ability to
collaborate inside and outside
your organization and to build
and sustain social networks of
people engaged in the work
5. Inspire – Ability to mobilize
support and engage others to
join you in ACTION

59. Leadership = Multiplication
•15 X – ROI strategy as
process & alignment
• 8 X – Strengths
• 6 X – Trust & Engagement
•3 X ‐ Positivity

60. Five Keys to Success in the New Normal
The Flywheel Effect
1. Strategic Planning continuously
2. Collaborative environment
3. Culture that focuses on people
4. Seek Opportunities & Builds on
Strengths
5. Harness the new skills & tools

61. Does it really work?
Four Examples
Service Profit Chain
AICPA Major Firms

62. The Tortoise was right
Sometimes you have to go slow to go fast

63. Elvis was wrong!
What we need is
a little more
conversation!

64. Leadership defined
The four most
important words
for organizations
are, “what do you
think?”
‐ Tom Peters

65. The only question for leaders
Have I made
you feel
stronger and
more capable?
Source: Emmanuel Gobillot -
LeaderShift

66. Tom Hood, CPA.CITP
CEO
Maryland Association of CPAs
Business Learning Institute
(443) 632‐2301
E‐mail tom@macpa.org
Web http://www.macpa.org
Blog http://www.cpasuccess.com