Navigating Turbulent Times Navigating the 5 C’s

July 6, 2012

Tom Hood, CPA, CITP, CGMA

MACPA-­‐Logo-­‐medium.jpg  

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“...where the most important skill is the ability to acquire new skills.”

Picture: John Drake - Flickr

• Change  • Complexity  • Compliance  • Convergence  • Compe<<on  

MANAGING  THE  SEA  CHANGE  

The  “New  Normal”  

h=p://www.endoAusiness.com    

Survival is not mandatory

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www.bizlearning.net  A  Tahi'an  reef  and  a  Kauaian  surfer,  both  in  perfect  focus.  Photo:  Noyle/SPL  

“You  can’t  stop  the  waves,  but  you  can  learn  how  to  surf.”    

–  Jon  Kabat-­‐Zinn  

Humans  are  fundamentally  “sight”  creatures  

And  the  power  of  making  our  thinking  visible  to  others…  

We  need  longer  sightlines  during  periods  

of  rapid  change  

“Innovation distinguishes between a

leader and a follower - Steve Jobs”

Technology

Ideas

People

Technology Ideas People

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

What we see…

Scans

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Meetings

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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

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Listen to your junior officers

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Generations – the # 1 issue

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You have three years!

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Go social, Go native!

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Five Qualities of Extraordinary Leaders

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

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Start With Why

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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

Our i2a Strategic Thinking System is built on proven and researched strategic planning and change management principles.

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Growth & Innovation

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Inner Circle Bought-in

Informed Leaders I support it

Pragmatists I’ll wait & see

Skeptics Prove it to me

No-Nos I don’t like this

Tipping  point    which  way  will  they  go?  

This is your risk point!

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.

What can you do to boost your odds?

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Strategy  as  Process  -­‐  Our  i2a  Framework  

How do you tip the odds in your favor?

•  Engagement •  Alignment •  Commitment •  Accountability

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Strategy as Process using a simple framework that can be repeated

And cascaded throughout your organization

Rocket fuel for strategy

Tipping the Odds in Your Favor

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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."

Why executives should care about Employee Engagement

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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

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 energies, actions, and practices. Through alignment, we become part of something big because we do what it takes to play our part."

- Etienne Wenger Communities of Practice

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Alignment focuses on the future and builds trust.

Alignment is about getting their discretionary effort.

Cascading Alignment throughout the organization creates Commitment

Firm-wide

Regional & Practice 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

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You are probably reaching the rider, BUT … are you reaching the elephant? How?

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Feedback From Partner’s Meeting

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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

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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. 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.

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Learning & Leadership

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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

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Tom Peters advice on keeping your L > C

"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

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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

Trends in Learning & Development

American Institute of CPAs

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

The  DNA  of  the  CPA  Values  &  Competencies  

•  Leadership  •  Communica<on  •  Strategic  Thinking  •  Collabora<on  &  Synthesis  •  Technologically  Savvy  

Practice Areas

Competencies

Staff Levels

• How we work

•  Skills we need •  Knowledge •  Skills •  Abilities

• How we grow •  Career Paths

The Learning Matrix Aligned to your Strategy

www.macpa.org

Customized to meet your firm Competencies and aligned with your strategy

Staff Principal/Director

Senior Senior Manager

Manager

Decision making by specification,

task specific work

1st level supervision on established guidelines & standards

1st level of strategic thought & focus on boundary spanning

activities

Assess & understand longer-term variables

& accomplishing future goals

Leading and/or developing new practice areas, strategic alliances

& talent Critical Turning Point The

Bounce

Copyright 2012 – Business Learning Institute

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

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  

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

Seth Godin & Tom Peters

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Success  in  a  Connected  World  

Thought  Leadership  

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Social  Media  Engages  &  Shares  Insights  

The  twi=er  stream  from  AICPA  Leadership  Academy  

Real  Time  Focus  Group  

Example  of  using  Twi=er  to  get  immediate  real  <me  feedback  for  this  preso  

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?  

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!  

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  

Featured  our  blog  post  

http://dld.bz/agc8f

The  post  was  even  featured  in  an  accoun<ng  educator’s  “daily”  distributed  to  his  followers.  

My network map

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1  –  1,736  2  -­‐    430,700  3  –  10,337,400  

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Paul DePodesta - VP of Player Development for the New York Mets formerly Asst GM of Oakland A’s

Adopt a moneyball mindset

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