We tend to think of “innovation” in terms of new technology – gadgets, hardware, new apps, and software. But true innovation more often comes in the form of new business models, workflows, service offerings, and office and staffing patterns. This session will center on those innovations that are significantly impacting our firms and our clients. You never know where innovation might sprout! This session was produced for the DCPA15 Conference in Las Vegas.

1. Innovation Is Not Just for Technology
Companies Anymore!
Tom Hood, CPA, CITP, CGMA @tomhood
CEO
Maryland Association of CPAs
Business Learning Institute
www.blionline.org

2. 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 2015 (11th year in Top 100)
Top 150 Influencer by Linked-In
Top 25 Influencers in Learning & HR by HR Examiner
Top 25 Public Accounting Thought Leaders by CPA Practice
Adviser
Working on Learning Management with AICPA/CPA2Biz,
Cloud Curriculum, Performance Management /XBRL,
Leadership & Generations
CEO
Maryland Association of CPAs
(MACPA) www.macpa.org
Business Learning Institute (BLI)
www.blionline.org
http://www.linkedin.com/in/tomhood/

3. 3

4. The # 1 Challenge

5. Will
disruption
come from
inside your
industry?

6. The Warning Signs
• I don’t buy my own company’s products or services
• We are investing at the same levels or even more and not
getting margins or growth in return
• Customers are finding cheaper or simpler solutions to be “good
enough”
• Competition is emerging from places we didn’t expect
• Customers are no longer excited with what we have to offer
• We are not considered a top place to work by the people we
would like to hire
• Some of our very best people are leaving
• The growth trajectory has slowed or reversed
www.blionline.org/rita

7. “How would you think differently about your strategy if
you knew your advantage might not last?”

8. What?

9. www.blionline.org
Source: CPA.COM Insight into the CPA of the
Future Study 2014
92% of CPAs are NOT Future Ready
Future Ready is the capacity to be
aware, predictive, and adaptive of
emerging challenges, tech
innovations, and trends and changes
in business, population, and social
environment.

10. Gradual then Sudden
ExponentialTimes!

11. More Uber cars than yellow taxis on the road in NYC

14. Will your job be done by a machine?
Source: NPR Planet Money, May, 2015

15. In the next five
years we will
TRANSFORM
How we market,
sell , communicate,
collaborate,
innovate, and
educate
– Dan Burrus

16. So What?

17. • Agricultural Age Land Ownership
• Industrial Age Means of Production
• Information Age Information
• Creative Age INNOVATION
Source:The Nomura Research Institute
Shift in the Source of Competitive Advantage

18. 74%
Next gen leaders do not believe their
organizations are encouraging practices that
foster innovation
Source: Deloitte Millennial Survey

19. “Innovation at the institutional level is needed to sufficiently shift an
organization’s mindset to allow new ideas to truly emerge and thrive.
While our current business leaders can debate how and where to
innovate, it’s clear how much importance our future leaders place on
innovation—not just as a driver of business growth but also as a
catalyst for solving society’s most pressing problems.”
- Barry Salzberg, CEO of Deloitte

20. Innovation is not Invention

21. Innovation is not Creativity

22. Connect the dots
“They used to say knowledge is power, but now there’s google…”
Illustration by David Somerville based on original
by Hugh McLeod @gapingvoid

23. Innovation is creating value
in anticipation of future
trends.

24. WWGD
What would Google Do?

25. What about these guys?
Colleagues Against
Virtually Everything!

26. Disruption and RONI
The gap is widening, faster!
Source: Clayton Christensen, “Innovation Killers”
We think this
is trade-off

27. Now What?

28. The Innovator’s playbook
1. Competency
2. Context
3. Certainty
4. Collaborative
5. Culture Core

29. Competency
Disrup'ons
before
they
disrupt
Problems
before
you
have
them
Customer
Needs
before
they
have
them
New
Opportuni'es
before
the
compe22on
An2cipate
Source:
Daniel
Burrus

30. ANTICIPATION
Strategic
Thinking
External
Awareness
Vision
Con2nuous
Learning
Innova2on
Crea2vity
Problem
Solving
Priori2za2on
Business
Acumen
Decisiveness
Influencing/Persuading
Emo2onal
Intelligence
Consensus
Building
Collabora2on
Inspira2on
Risk
Management
Anticipation –The Critical Competency
• Anticipating and reacting to the
nature and speed of change.
• Acting decisively without always
having clear direction and
certainty.
• Navigating through complexity,
chaos, and confusion.
• Maintaining effectiveness despite
constant surprises and a lack of
predictability.
Source: Conference Board Global Leadership Forecast 2015

31. Certainty - HardTrends
Four HardTrends:
1. Government Regulation
2. Technology
3. Demographics
4. Globalization

32. 12,000 CPAs, 75,000
Comments over 15
years
Context

33. What are the hard
trends for me and
my customer?
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?
www.blionline.org/ao

34. 3
4
Common Themes in Organizational Strategy
Source: Gretchen Pisano at AICPA Leadership Academy – i2a: Insights to Action

35. Connect, Collaborate, and Co-create

36. Strategic Thinking Process!
Sight-Insight describes the context from hindsight, foresight, and current insight
then you can create from opportunities, communicate and inspire action.!

37. Building an Innovative Culture
BLI’s 8-S Strategy Model
Strategy Staff
Skills
Structure
Style
Systems
Shared
Vision
Shared Beliefs
www.blionline.org
Copyright Business Learning Institute - 2015

38. 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 andTeam
based
EffectiveTechnologyTools
- mobile
Copyright Business Learning Institute - 2015

39. The Innovator’s playbook
1. Competency-based
2. Context
3. Certainty
4. Collaborative
5. Culture Core

40. Case Study

41. MACPA / BLI value
proposition!
!
The value we bring!
to this venture

42. Draft business model

43. The leaders are the ones who take the first steps
“Tom
Hood
and
his
colleagues
at
the
Maryland
Associa2on
of
CPAs
never
fail
to
amaze
and
impress.
Some2mes
you
can
find
them
orchestra2ng
a
flash
mob
of
accountants
or
puPng
down
stakes
in
the
virtual
world
of
Second
Life,
but
most
recently
the
associa2on
has
goRen
serious
about
XBRL
and
has
undertaken
a
project
to
demonstrate
XBRL's
scope
and
versa2lity
by
tagging
its
own
financial
statements
and
showing
how
non-­‐profits
can,
well,
profit
from
the
experience.
“What
message
can
you
learn
from
the
MACPA's
XBRL
project?
First,
you
can
start
examining
your
own
client
base
to
see
who
can
benefit
from
the
experiences
of
MACPA.
But
the
bigger
message
is,
stop
wai2ng
for
other
people
to
tell
you
what
works
and
what
doesn't.
Be
proac2ve
and
experiment.
That's
what
new
technology
is
all
about.
Whether
it's
cloud
technology,
IFRS
and
XBRL,
social
media,
or
choreographing
a
dance
–
the
leaders
are
the
ones
who
take
the
first
steps.”
-­‐-­‐
Gail
Perry,
editor,
Accoun2ngWEB

44. Calendar -The No. 1 App
Spend just one hour per week in the future…

45. Tools

46. Confidential – Internal Use Only
Key
Partners
§ Who are our key
partners?
§ Who are our key
suppliers?
§ Which key resources are
we acquiring from
partners?
§ Which key activities do
partners perform?
Key
Activities
§ What key activities does
our value proposition
require?
Value
Proposition
§ What value do we
deliver to the customer?
§ What customer problem
are we solving?
Customer
Relationships
§ What type of relationship
do our member segments
expect us to establish and
maintain with them?
Customer
Segments
§ For whom are we
creating value?
Key
Resources
§ What key resources do
our value propositions
require?
Channels
§ Through what channels do
our member segments
want to be reached?
§ How do we reach the
member now?
Cost Structure
§ What are the most important costs inherent in our business model?
§ Which key resources are most expensive?
§ Which key activities are most expensive?
Revenue Streams
§ For what value are our members really willing to pay?
§ How much does each revenue stream contribute to overall revenues?
Strategic Positioning GrowthOperational Excellence
This canvas helps develop new business models and opportunities
46