Managing Change in an Ever-Changing Profession BY MELISA GALASSO Disruption is everywhere! The rate of change we are currently experiencing has led us to describe our environment as VUCA (Volatile, Uncertain, Complex and Ambiguous). This change impacts all aspects of the CPA profession and is driven in large part by expanding use of technology by both auditors and preparers. Cloud computing and RPA are considered standards today and we do not have to look too far into the future to see machine learning and artificial intelligence become commonplace as well. Today, in lieu of asking staff to read thousands of lease agreements to adopt GASB 87 or Topic 842, firms are leveraging machine learning to have computers read the leases, identify the key terms and provide a summary. This leaves staff to focus on the important element – adopting the standard! Artificial intelligence, virtual reality, blockchain all at one point seemed very futuristic. Now, these are commonplace in business and industry. Virtual reality is driving improvements in training by providing realistic simulations to test skills in a virtual environment and blockchain is helping companies track the movement of assets in seconds. Preparers are being asked to change their focus from reporting about the past to focus on assisting in decisions about the future. Instead of reporting on past events, finance executives will be asked to leverage data to determine how businesses can achieve certain outcomes. A McKinsey study1 evaluated various aspects of the accounting profession and found that 42% of finance activities today could be fully automated with technology already in existence, while another 19% could be mostly automated. While, accountants won’t be replaced by technology, many of the tasks today will be automated leaving CPAs to focus on higher-value tasks. The skills of the future are skills that computers can’t perform. Emotional intelligence, creativity, and people management are squarely in the human corner. Therefore, CPAs need to focus not only on technical skills but also on developing their people skills. The CPA exam is also evolving to incorporate technology and higher-order thinking skills. Rote memorization is no longer seen as a skillset of choice. Memorizing dates and definitions are easily searched and thus no longer carry the same value. Instead, application and analysis are needed. We ask more of staff today because computers have 1
https://www.mckinsey.com/business-functions/ strategy-and-corporate-finance/our-insights/botsalgorithms-and-the-future-of-the-finance-function
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ASCPA Connections
replaced the mundane work we asked of staff decades ago. As change continues to accelerate, firms and organizations need to develop methodologies to not only manage change but also to enable change. Change must be seen as an opportunity to grow. However, we know some CPAs do not embrace change and instead try to find ways to continue to do things the ways that have worked in the past to minimize disruption. Firms and organizations need to embrace strong change management programs to bring them on board. Change requires a vision of the future that compels people to come along for the ride. Moreover, innovative solutions come from environments where people feel safe and are willing to fail (but fail fast). Communication and leadership skills can coach people through the change and create buy-in. Without a strong change management program, employees may feel like a given change is simply the flavor of the month and never fully buy-in. CPAs need to embrace this change or risk becoming like Blockbuster, Kodak, and other industries that held on to the past. Let’s disrupt our profession, before someone else does! Melisa F. Galasso is the founder and CEO of Galasso Learning Solutions LLC. A CPA with over 15 years of experience in the accounting profession. Melisa designs and facilitates several self-study and live-courses for the ASCPA in advanced technical accounting and auditing topics, including not for profit and governmental accounting. Search for Galasso on www.ascpa. org/CPE to find her courses.
ASCPA’S MANAGING CHANGE IN AN EVER- CHANGING PROFESSION Leader: Melisa Galasso Course Code: MCCP-MG Self-Study Available Until 4/29/21 2.0 hours of A&A
