Steering a Course for the Future

The new chairman hopes to use his position to help CPAs take advantage of the opportunities of a new century. With an eye on the future, yet mindful of the strong foundation built by his predecessors, Robert K. Elliott assumed the AICPA chairmanship at the Institute's annual meeting in Seattle in October. "I'm aware I'll be in the chair when the digits `click over' to the year 2000. I suppose that's symbolic of the beginning of a new century or even a new millennium for the Institute and for the profession. " Elliott thinks this time of transformation--as exemplified by the CPA Vision Project--provides a good opportunity for people focused on the future to lead the profession. He says the changes will be dramatic--both for members and for the AICPA. Elliott's resume reflects his forward-looking focus. He chaired the AICPA strategic planning committee and the special committee on assurance services. He also served on the special committee on financial reporting and the Auditing Standards Board. Elliott graduated from Harvard with a bachelor's degree in math and earned an MBA in public accounting from Rutgers University. He joined the Philadelphia office of KPMG immediately thereafter and has worked for the firm for his entire career. Today he is a partner in New York City, a member of the firm's office of the chairman and a trustee of the KPMG Foundation. For much of the Institute's 112-year history, Elliott points out, the speed of change wasn't very great. The AICPA and its predecessors created enormous value for members by being "constant and steady, the profession's conscience and ballast. " And the results have been spectacular. "We have a profession that is both highly regarded by the public and beneficial to our economy. " But Elliott says the days when the accounting profession could steer a steady course based solely on its traditions are past. "That doesn't mean we give up the traditions, but the course we must steer requires greater organizational nimbleness than the Institute has had to demonstrate before. " PART OF A REVOLUTION As the economy moves to a postindustrial, information-based era, Elliott says CPAs' basic role as "information people" will become increasingly important. "To prosper, an information-era company must have even more information and knowledge and use it even more quickly than ever before. The positioning of the CPA profession is ideal to capitalize on these opportunities" Whether CPAs themselves are ready to take advantage of the opportunities is a more difficult question. "The competencies needed to prepare financial information such as GAAP reports and tax returns focus on applying a set of rules to get a standardized product. The competencies in a more customer-oriented environment require CPAs to get into the heads of decision makers, determine their information needs and supply exactly what they need. It's much less a standardized, one-size-fits-all product. " While the old competencies are still relevant, Elliott says, "we need new ones. Many CPAs today already have those competencies, especially financial managers and those in public practice who do tax or management consulting. " But some members are struggling to make the transition. A lot of work can be done by increasingly smart software, and standardized products are "under threat of technology substitution. Someone trying to compete with cheap software is under price pressure. " And that, Elliott says, is "not a happy place to be. " REPUTATION AND VISION Elliott sees the CPA's current image as a bundle of mostly positive qualities. He cites "our reputation for integrity, objectivity, honesty, industry, competence and diligence. " But, he says, the profession displays what some regard as negative qualities--being too detail oriented or technical. "We must be careful not to position CPAs only as statutory auditors. " For Elliott, the question is, "How can we reposition the CPA--if you think of the designation as a brand--to carry forward the positive attributes while shedding the negative ones? …