REVISITING THE CPA VISION, LOOKING AT THE PROPOSED GLOBAL CREDENTIAL.

From the profession's grassroots sprouted the CPA Vision a few years back, which explored market forces impacting the profession and defined a set of aspirations to ensure a vigorous future for all CPAs. Members eagerly captured the spirit of the Vision and developed innovative ways to embody it in their work environments. The Vision is, after all, the profession's roadmap to the future.

As the national home for all CPAs, the AICPA continually carves new pathways that will enable members to realize the CPA Vision. These pathways cover a range of activities. From strengthening and extending the profession's bedrock services to upholding the CPA hallmarks of integrity and objectivity to developing new business opportunities, the AICPA strives to maintain the relevancy and vitality of the profession.

Through this special report, members will see how the Institute, working with volunteer member committees and task forces, is meeting its mission of serving members in all segments of the profession and areas of the country. Revisit the CPA Vision and see how the proposed global credential, a market-driven credential signifying a set of competencies -- not a license to deliver particular services, is just one of the many Vision-aligned initiatives fitting in the picture.

All the Things We Do

This past year has been a busy one: strengthening the audit, modernizing independence rules, protecting the public and CPAs in the tax area, showing leadership in technology, and addressing the needs of members in business and industry. Here are some of the highlights spanning the realm of CPA work:

* The AICPA raised serious public policy and self-regulation concerns with a General Accounting Office proposed standard on auditor independence in Government Auditing Standards. The proposal would create yet a third set of independence standards -- the AICPA's and Securities and Exchange Commission's being the others -- and would be especially harmful to smaller entities that rely on the expertise of their usually smaller CPA firms.

* Responding to the AICPA leadership's and members' opposition to its proposed rule on auditor independence, the SEC voted on a negotiated compromise that addressed many of our major professional and public interest concerns. Furthermore, the Institute achieved protection from the rule for smaller firms in the critical service areas of information technology consulting and internal audit outsourcing.

* New initiatives addressed the important issue of quality of earnings, an area of concern for both the profession and the SEC. Through a special one-day conference, a two-day continuing professional education course, a collection of real-life cases with commentary by experts, new AICPA InfoBytes learning modules, and a special report in the July/August CPA Letter, the AICPA promoted high quality in earnings reporting and helped both auditors and financial statement preparers understand their roles in the process. Quality of earnings initiatives will continue next year as well.

* A new charter for the Public Oversight Board approved by the AICPA Board of Directors significantly enhanced the POB's authority to oversee the audits of public companies.

* While an exhaustive study last year by the POB's Panel on Audit Effectiveness concluded audit quality is sound, the Institute committed significant resources -- human and financial -- to address all of the panel's recommendations. Development of new standards and guidance to improve the risk-based audit model including the detection of fraud, and an enhanced peer review program and streamlined disciplinary process for auditors of public companies, are among the efforts of AICPA teams and their respective member committees to implement the many recommendations.

* Members of Council enthusiastically supported a new, five-year $25 million recruitment initiative to help reverse the trend of decreasing student interest in the CPA profession. Expected to launch in late 2001, the direct marketing program will target young people aged 16-22. This campaign is in addition to the Institute's existing student recruitment efforts.

* The Institute further strengthened the profession's image through the sixth year of the national image enhancement campaign, which for the first time had a national network radio strategy. It also included an advertising partnership program with the state CPA societies; more than 30 states joined the effort.

* An international consortium of more than 95 organizations, headed up by the AICPA, developed and launched eXtensible Business Reporting Language (XBRL). XBRL supplies an XML-based framework that is revolutionizing the way businesses create, exchange and analyze financial reporting information. XBRL and the committee's efforts in developing it have generated substantial media coverage.

* CPA2Biz--the profession's own business services provider -- started to roll out its solutions, tools and value-added content to CPAs across the country through its Professional Services Division. The Application Solutions Division that will launch later this year is developing a comprehensive business services hub that offers an integrated suite of best-in-breed business applications. One group of applications is geared toward CPA firm management; the other will address the needs of small- to medium-sized businesses.

* To streamline the development and delivery of valuable new products and services, the AICPA established the Member Innovation Team. The pioneering process and staffing structure creates self-directed groups to work full time on specified projects to achieve the goals and objectives of the volunteer leadership.

* Research on the roles of members in business and industry and in government sheds light on how employers and coworkers view the CPA credential. Insights gleaned from the research will be used to target programs and services for members in industry and in government.

* A number of the AICPA's suggestions for overhauling the estate and gift tax system make their way into the 2001 Economic Growth and Tax Relief Reconciliation Act signed into law in June. Thanks to provisions based on those suggestions, major potential traps for unwary taxpayers or practitioners were eliminated or mitigated. The Institute's suggestions were based on research that included a survey of practitioners.

* The AICPA Board of Examiners and a joint committee with the National Association of State Boards of Accountancy are working together to revise the Uniform CPA Examination and computerize its delivery by Nov. 2003. Among other things, new sections of the exam will test important skills not readily measured in paper-based formats, such as using research tools.

CPA/Global Business Credential

All of the past year's initiatives had one goal in common: to move the profession closer to realizing the aspirations outlined in the CPA Vision, while preserving and extending the critical role CPAs play in society. This is also true of the proposed global business credential.

An important outcome of the CPA Vision was the need expressed by members for expanding the CPA's professional footprint, extending into different services, and achieving global reach. It is with these goals in mind that the AICPA's member-driven Strategic Planning Committee began exploring the concept of a new complementary credential. As they wrestled with tactics for making the Vision a reality, the committee considered a number of important issues. Among those issues was the fact that some CPAs do not want their brand stretched; they want to remain fully and exclusively associated with foundation services. Other factors included the mandates of a stringent regulatory environment, employment practices, difficulty in selectively changing stereotypes, and challenges in modernizing the CPA Exam and accounting education. In this light, the global business credential was conceived.

In the pages that follow, you will learn the thinking behind the proposed credential and where its development and implementation stands today. Then, illustrative scenarios will show you what circumstances may lead a CPA to pursue the credential, should it be approved by the membership this fall.

Background

A new business credential, rooted in a unique set of competencies and market opportunities, may one day be an option for CPAs and other professionals who want to seize new opportunities presented by a knowledge economy without geographic boundaries. An international consortium of professional accounting organizations, including the AICPA, has been studying the development of a global business credential characterized by its breadth of knowledge, strategic focus, future orientation and professional rigor.

Frequently identified by the placeholder name "XYZ," the credential would be administered by a new self-funded international organization, which would establish global standards of ethics and competency, thereby contributing to higher and more consistent quality professional services in the worldwide business marketplace. National Credential Granting Organizations would be created to issue the credential in accordance with the global standards for admission. In the U.S., this would be a new entity operated and managed separately from the AICPA. The AICPA would remain focused on its advocacy for the CPA profession.

In May 2001, the AICPA governing Council passed a resolution presented by delegates of the California and Texas CPA societies to launch a member information and response program on the global business credential. The resolution also authorized a member mail ballot asking for the authority to create a separate self-funded organization that would issue the global business credential in the U.S. The ballot would be mailed to members in late Oct. 2001, and the voting period would last through Dec.

The chart below shows how the CPA, MBA and XYZ credentials compare with respect to eight different facets.

Comparing Credentials
                             CPA   MBA   Global
                                         Credential

Cross-disciplinary           No    Yes   Yes

CPE required                 Yes   No    Yes

Code of ethics               Yes   No    Yes

Work experience required     Yes   No    Yes

Internationally consistent   No    No    Yes
competency, standard

Admission examination        Yes   No    Yes

Regulatory-based             Yes   No    No

Based on a license to        Yes   No    No
perform a set of services

The proposed credential shares several characteristics with the MBA, but it is intended to possess many critical distinctions. Its requirements (code of ethics, defined competency set, extensive relevant work experience, continuous learning and re-assessment, rigorous examination) are rooted in the values and traditions of the CPA profession. Moreover, those requirements would be consistent from country to country. As a result, the global business credential would signify the same professional quality and level of expertise wherever and whenever it is used, and would not be dependent on the reputation of any particular academic program. Anyone wishing to obtain the credential would have to earn his or her way through a system as rigorous as the one associated with the CPA profession.

Admission Requirements, A Jump Start for CPAs

If the proposed global business credential becomes available, CPAs will have an accelerated pathway to obtaining it. During an interim period, CPAs and certain other professionals with at least five years of relevant experience can earn the credential by completing an exacting self-assessment, subject to randomly selected audits, in lieu of the credential's standard entry point, a high-level examination. The self-assessment will cover the candidate's:

* Understanding of and commitment to a rigorous Code of Ethics.

* Ability to integrate knowledge from multiple business disciplines.

* Ability to apply this knowledge to provide strategic business insight.

* Ability to demonstrate mature professional competencies.

On the other hand, applicants for the credential who do not hold a professional credential recognized by the global organization will be required to have eight years of relevant work experience and attestations as to their qualifications by two holders of the global credential.

All credential holders would have access to a world-class knowledge resource. This resource would create an unparalleled global online learning platform available on a 24-hour, seven-day-a-week basis and include networking opportunities among professionals in diverse disciplines around the globe. An e-learning platform would support the self-directed study and philosophy of the global business credential.

The online knowledge resource will include a comprehensive and continuously updated database for competency, business problem solving and knowledge enhancement. Among the features of the knowledge resource will be a powerful search engine, interactive communication and a mechanism for tracking completion of self-assessments.

Why CPAs May Want this Credential

There are five fundamental reasons why individual CPAs may choose to obtain the global business credential as an additional credential, should it become available:

* To enhance individual brand equity by association with a newly established global professional credential, with continuing learning and ethical requirements, that is not regulated by government or hampered by pre-existing market perceptions.

* To gain national and international recognition for strategic business advisory competencies already achieved.

* To gain access to a unique self-assessment process linked to powerful tools for building on and maintaining required competencies.

* To access a worldwide knowledge network and learning system to acquire new competencies, which in turn could lead to new market permissions and client development.

* To become a member of a network of elite professionals who share an internationally consistent set of ethics and competencies recognized worldwide by colleagues, customers and suppliers.

The global business credential is not about renaming or rebranding the CPA. It is about establishing a new credential that many CPAs, especially those operating outside of traditional CPA fields or those immersed in the new digital world economy, might want to acquire. The global business credential represents an opportunity for CPAs to create value for their clients and employers, as well as for their own careers.

It's a Want to, Not a Have to

But the proposed credential is not for every CPA, just as the profession's other initiatives in areas such as information technology and business valuation are not. CPAs who feel they would not benefit from a global, interdisciplinary credential are not required, or even recommended, to pursue it.

In fact, there are some CPAs who strongly believe that the new global credential will dilute the CPA brand by causing confusion and competition in the marketplace. This position asserts that the global credential's association with a broad range of diverse professionals, business practices, knowledge management, and strategic positioning will diminish the attractiveness of the CPA profession and relegate the CPA's expertise to audit and attest services.

Illustrative Scenarios

There are many CPAs who are also asking, What will this credential look like in real-life? What are the competencies that will distinguish CPA/XYZs? In practice, what value does knowledge management and knowledge integration contribute to the market-place, the work force and individual brand equity? The possibilities are extensive, but if and until the global business credential is created, they cannot be realized.

To help CPAs get a better sense of how the credential might work, we have created a set of scenarios illustrating the circumstances that may lead some CPAs to pursue the global business credential. Clearly, there are CPAs who in similar circumstances would choose not to obtain the credential. For this reason, we also provide a few scenarios showing why some CPAs would choose not to add the second credential to their professional portfolio. Remember, these scenarios (many of which are based on composites of member interviews) are not meant to be exhaustive, but rather illustrative.

Example #1

Jane is a 35-year-old CPA who was trained at a mid-sized CPA firm in Cincinnati, where she was promoted to manager. An ardent supporter of the CPA brand, Jane has been very successful in capitalizing on her professional background.

After five years as manager, Jane left the CPA firm to become controller of the subsidiary of a major client. Her CPA competencies, including deep understanding of business infrastructures and financial processes, had made her the top candidate for this new position. While controller, she developed a passion for systems work, transferred to the parent company's IT department and began developing IT strategy for the group. After two years, a headhunter led her to the IT consulting section of a Group B CPA finn, where she focused on developing e-business solutions for dot-coms, including strategic financial plans and knowledge systems.

She clearly has acquired extensive understanding of a broad range of business competencies in knowledge management, technology, and strategic decision making, and she understands the limitations of data-bound systems and the need for building and utilizing knowledge systems. When considering her professional options, Jane identified two probable career paths that could leverage her knowledge and provide maximum rewards: strategic consulting or opportunities in IT management/knowledge systems.

For Jane, XYZ is a way to build on and complement her CPA credential. She is especially interested in the XYZ as an independent validation of the wide range of professional competencies she offers beyond those originally tested by the CPA examination.

Example #2

Brown & Johnson, LLC is a 12-employee firm in Austin, Texas. Pete Brown and Mary Johnson, who were previously colleagues at an established local CPA finn, founded the finn eight years ago. Both Pete and Mary are CPAs, but Pete has concentrated on building an A&A and tax practice, while Mary has focused on advising clients on technology solutions. She brought on four non-CPA technology consultants to handle this growing area of practice. With these "techies" on board, Mary has moved her efforts up the value chain and now advises clients on acquisitions, integration of technology and business initiatives and other growth strategies.

Mary herself wants to obtain the XYZ to gain access to a learning platform and global network that will enable her to remain ahead of the curve in various disciplines, including business law and technology. She is equally concerned that her employees obtain the credential to provide clients with additional independent assurance of their commitment to quality and ethical standards and their ability to integrate knowledge systems. Pete does not think the XYZ holds additional value for him, but agrees with Mary that having a combination of CPAs and XYZs on staff could provide a growth track for their firm.

Example #3

Clarence started out in public accounting, but soon after switched to a finance position at a Fortune 500 company. After 12 years, he worked his way up through the company's ranks by holding diverse positions in subsidiaries located in several countries around the world. Now a CFO, he is focused on enhancing the company's U.S. strategic analysis unit and hiring new staff members for three key positions.

Through firsthand knowledge, Clarence has learned to appreciate the competence and professional assets held by many non-North American executives. He has found, however, that the lack of an internationally consistent business credential makes it difficult to promote the assets of these executives to his U.S. counterparts.

Clarence also is aware of a number of CPAs in his company who are viewed as financial historians and are not consulted on broad business strategy. He has urged these colleagues to consider pursuing the XYZ as a way to further establish their credibility for these new strategic positions, gain acceptance from other officers and demonstrate a commitment to continue building their interdisciplinary knowledge. For those individuals who are not CPAs, the XYZ will also ensure that they understand and abide by the ethical behavior and commitment to learning that Clarence has come to expect from CPAs.

Since he makes it a professional policy not to ask others to do what he is unprepared to do himself, Clarence has decided to obtain the XYZ credential first.

Example #4

Robert is a 36-year-old CPA who already has attained an MBA in finance. He is a partner with three fellow MBA graduates in a consulting firm that advises companies, particularly in California and New York, in risk management, growth strategy and IT implementation. Robert's business is burgeoning, even with the economic downturn for many dot-coms. This is because his finn has been able to guide many traditional "brick and mortar" companies in leveraging their strengths, brand assets and distribution capabilities to successfully develop and build e-businesses while Internet competition is down. Robert loves the challenge and excitement of integrating new economy thinking and technology with traditional business principles. He believes that established companies have the history, experience and wisdom to achieve instant Internet market advantage.

As a member of his state CPA society, Robert has heard of the proposed global credential, but he's not interested. He believes his MBA credential garners him the prestige, career versatility and earning power he deserves. And because he is a partner in his own consulting finn, he feels his talents and skills are best applied to growing his business rather than pursuing an additional credential.

Example #5

Marty is a CPA in a medium-sized finn that has focused primarily on traditional services, most particularly tax. In recent years, he has been trying to move into new areas to provide greater value to his client base, as well as improve his firm's bottom line. Marty finds, after several inquiries, that many of his clients are going to others for services he feels he can and should provide, with a little extra education.

Curious about the XYZ credential but not convinced that it would provide real benefit to him, Marty decided to work through the XYZ self-assessment process necessary for admission. He was surprised when the results showed several competency gaps that he'd need to bridge in order to qualify for the XYZ credential. In his case, the gaps were related to business law, institutional politics and risk management. Considering where his firm's growth opportunities were greatest, Marty realized that he in fact wanted to strengthen these particular competencies. As a result, he has decided to plot a professional development path for himself, using in part the XYZ's unique Knowledge Resource Network that is linked to the self-assessment. The network leads him to a related body of knowledge, and then to courses that specifically address the identified gaps.

He is now weighing the possibility of taking the self-assessment again, this time not out of curiosity but because he'd like to be able to earn the credential.

Example #6

Judy is a CPA/JD who has decided to branch out on her own and specialize in advising family businesses and affluent individuals. Although she has done very well leveraging her broad base of accounting, financial and legal knowledge gained from her training as a CPA and lawyer, she still feels that she is missing certain professional skills that could differentiate her from other advisors. In particular, she believes her services could be more marketable if she had more knowledge in human resource management and IT. For these reasons, she is very drawn to the learning and networking opportunities provided by the XYZ, as well as its potential for personal branding opportunities.

Through access to a worldwide learning platform that includes best practice forums, Judy will be able to fast-track and target her attainment of certain interdisciplinary competencies. Unlike other executive education programs, the XYZ requires her to maintain her knowledge base and adhere to high standards of competence and ethics. She believes the CPA/JD/XYZ combination will help her gain acceptance from senior executives and general management officers and validate skills beyond those implied by her legal and financial background. An added bonus is her ability to network with other professionals around the world who have broken into a similar market space.

Example #7

Jimmy is a 51-year-old CPA and a partner in an Alabama-based CPA firm. He has been trying to expand his practice and provide new services to his clients. Recently, a local footwear manufacturer and long-time client mentioned an interest in accessing cheaper labor sources and alternative material utilization, prompting Jimmy to consider diversifying in other countries to achieve that goal. The client wanted to know how to evaluate whether such a move would be beneficial and if so, how to maximize the advantages. While Jimmy was eager to take on the work, the client was unsure that Jimmy's firm had the strategic planning experience and network to tackle more than the kinds of problems the firm has handled in the past. This project would involve the economic, political, regulatory, international and social considerations of moving a division of an existing business into a foreign country, as well as setting up a strategic business alliance. The client told Jimmy that because of their relationship he would consider him for the job, but he would also be asking other consultants for proposals.

A globally recognized XYZ credential would be a great addition to Jimmy's portfolio of skills and may give him a leg up in competing for this project. His ability to demonstrate "general contractor" skills and abilities would be critical to the client's success.

Example #8

Sarah, a 42-year-old CPA with 15 years of experience at a utility company, was vying for the newly vacant position of CFO. The other candidates who were being considered were from outside the company--and industry--and lacked the specific knowledge and relationships that Sarah had built over the last decade. The CEO was aware of Sarah's accomplishments and strong financial background, but he was looking for someone with an interdisciplinary and perhaps international business view. He had interviewed several MBAs and uncredentialed management consultants who he thought had stronger leadership ability, strategic vision and communication and interpersonal skills.

The XYZ credential and its learning programs could give Sarah the edge she needs to convince the CEO that she's the perfect candidate for the CFO position.

Example #9

Stan is a 55-year-old CPA who, for the past 30 years, has built a thriving practice providing a variety of financial services, mainly in the areas of assurance and audit, to manufacturing companies around the town where he grew up, Okmulgee, Oklahoma. Stan practices with his two sons, Rick and Alan, who are also CPAs.

Nearing retirement, Stan plans to hand over the reins of his business to Rick and Alan in five to seven years, but he is concerned about the future of his own business and of the CPA profession. There are fewer manufacturing companies in northern Oklahoma and technological automation has forced him to lower some of the fees he charges for his services. He is encouraging his sons to pursue the CPA Vision, particularly the opportunities provided by business assurance and advisory services.

Stan and his sons have discussed the proposed global credential. Stan believes that the credential would not provide any benefit to him at this point in his career and he doesn't believe it will help his sons either. Rather than pursue the new credential, Stan believes his sons should continue to serve the profession's core values while pursuing CPA specializations in information technology or business valuation.

Example #10

Louis is a partner in a medium-sized CPA firm that operates in a booming local economy. Over the past few years, the firm has been forced to compete with out-of-state firms to provide consulting services as well as a wide array of business professional services. Louis feels personally and professionally challenged to increase the value and range of services offered by his firm.

His competitive positioning is being further eroded because of the firm's difficulty in attracting young people who can demonstrate higher level competency sets. Increasingly, they have begun hiring individuals with MBAs or IT backgrounds. But Louis has found that many of these candidates lack certain key attributes common to CPAs, namely an understanding of business ethics and fundamentals.

Louis wants to show potential employees, especially those from accounting programs, that his firm is modeling the opportunities inherent in the CPA Vision. He has worked hard to ensure that his firm offers a wide variety of options and career paths. He and his partners also want to demonstrate that they are committed to helping their professional staff gain a broad base of knowledge across business disciplines. Under his direction, the firm also has decided to encourage and support non-CPA employees in their pursuit of the XYZ credential, which maintains the core values of the CPA profession while widening the scope of professional competencies.

Louis and his partners believe that the XYZ competencies combined with those of a CPA will provide his firm with a competitive edge and demonstrate their capability to use information to create economic value for clients.

Example #11

Susan joined Bricks-n-Clicks (BnC) Company as corporate controller in 1994 after seven years with one of the 10 largest CPA firms in the U.S. While at BnC, Susan has developed, implemented and maintained all of the company's financial activities. In addition, she has gained valuable operations and general management experience. When she became CFO in 1997, she took charge of a number of operating teams as well as logistics, supply chain analysis and product design.

As the company CEO contemplates a successor three or four years down the line, the chief contenders are Susan and Bill Jones, an engineer and MBA who was recently named COO. The successful candidate will lead this growing company, while the other will be considered for a high-level strategic position elsewhere in the company. Susan considered going for an MBA, but then shifted interest to the XYZ. She believes it not only gives her access to the type of interdisciplinary knowledge and learning associated with the MBA, but it also further reinforces her commitment to live up to exacting professional and ethical standards of the CPA. In the end, Susan has determined that adding the XYZ to her professional portfolio will improve her chances of advancing to the top leadership role.

Example #12

Tony is a 52-year-old CPA and a sole practitioner. He strongly believes that he is always at the decision-making table when his clients make hard choices about business operations and strategic directions. Over the years, he has come to view himself as the silent, independent partner who helps guide his clients through both rough and smooth waters. However, he recently found out that one of his biggest clients has hired a team of three new non-CPA professionals to solve a long-term problem in the encryption of their management information systems.

At a luncheon with his client, Tony points out that the approach taken by the company will actually cost them significantly more than an alternative solution Tony had been considering. Still, his client is reluctant to change directions and explains that the issue is not financial but rather technological, and therefore really falls outside the CPA expertise. Tony makes a passionate argument on how the CPA has provided him not only with finance expertise but also a strong technological background, but the client remains skeptical.

Months later, several problems in the way the project has been managed force the company's CEO to rethink his position. Tony is asked to try to correct the cost overruns and resolve the encryption issue, which he does successfully. Tony believes the XYZ may have helped his client to view his range of competencies differently. More importantly, he believes that as the XYZ gains additional market understanding and acceptance, he may have additional professional clout to avoid this type of lost opportunity in the future.

Example #13

A multinational corporation is reconsidering its strategic direction. It has assembled a senior strategy team and relies heavily on Ann Adams, the one member of the team who holds both the CPA and XYZ credentials. Ann's dual credentials have underscored for the senior management team her unique commitment to interdisciplinary knowledge, international and cultural sensitivities, and professional/ethical rigor.

Ann conducts a preliminary change-management analysis. She points out that there are types and sources of information that are pertinent, but are not being considered in this particular decision-making process. She identifies engineering, marketing and human resources as essential parts of the solution, and points out the specific challenges they face in moving into countries whose political environments have not been fully investigated.

Ann views her role as a CPA/XYZ as being one of knowledge investigator and integrator. She believes her core strength is analyzing business strategy and ensuring that a company's knowledge base for decision-making is complete and relevant. In her opinion, the interdisciplinary competency base of the XYZ credential is its defining feature. By combining the XYZ's strengths with the deep business acumen associated with the CPA, Ann is convinced she has improved her professional positioning.

Example #14

A large and successful private company is on the acquisition trail. It is considering a number of opportunities and has acquired the services of Rick, a CPA/XYZ to assist in its deliberations. Rick is conducting a preliminary analysis of the impact that various acquisitions will have on the company's niche, direction and organizational culture.

Building on his background as a CPA, Rick examines acquisitions from a number of vantage points -- including marketing, finance, engineering and organizational behavior. He doesn't carry out this analysis alone. He skillfully selects experts in each area and integrates their input into the decision-making process as required. Rick also summarizes the knowledge gained from the analysis of potential acquisitions and identifies other types of acquisitions that the company should consider but, to this point, had not included in its strategic radar.

Rick remained on contract as an integral member of the decision-making team until the list of potential acquisitions, and the integration strategy for each, was complete. The company is considering involving Rick or another CPA/XYZ at the implementation stage as well because of the unique perspective and multidisciplinary approach they offer on problem solving.

Example #15

Since completing her undergraduate degree in accounting in 1980, Nancy has spent her entire career at a Big 5 accounting firm. While there, she has earned her CPA credential, honed her skills in a variety of divisions and locations, and risen in rank from staff accountant to one of the managing directors of the firm's investment banking subsidiary, where she assists clients through mergers and acquisitions, restructurings and financings. Nancy believes the firm has given her opportunities to challenge herself, seek greater responsibility, and move beyond the traditional accounting service areas she started in 21 years ago.

Nancy sees no reason for pursuing the proposed global credential. She believes the firm provides a strong brand for her to market her skills worldwide and she plans to stay there until she retires. Having experienced both the financial growth and career advancement she envisioned when she entered the profession, Nancy credits the firm with providing her with the tools and resources necessary to achieve her level of success. Nancy also recognizes that her firm's license to operate abroad provides her with the global outreach her career needs.

Example #16

Lois is a 44-year-old CPA who began her career at a mid-size CPA firm in Washington, D.C. Lois especially enjoyed working with clients in consulting services to identify how management decisions impact the bottom line. After six years, however, Lois wanted more variety in daily responsibilities and greater earning power. She, therefore, decided to return to school for an executive MBA program, where she could continue to work full-time and complete her MBA in five years. Lois specialized in management consulting.

With the business knowledge of an MBA and the financial acumen of the CPA, Lois found her skills in high demand. After completing the executive MBA program, she took a position with a firm that worked only with the CEOs and senior executives of Fortune 500 companies in the areas of corporate organizational design, change management and leadership development. Lois excelled in consulting with high-level clients and rapidly increased her income.

As more MBAs have entered the market, however, Lois has experienced increased competition. Her company has begun hiring MBAs who also have Ph.D.'s in behavioral or organizational psychology and is encouraging employees like Lois to return to school. Unwilling to commit to the years of study and research a Ph.D. requires, Lois investigates her options and learns about the global business credential. She is especially interested in the wide range of competencies it validates and believes that the designation would reassure her employers that she already has achieved the organizational knowledge and strategic insight necessary for the kind of consulting she performs. In addition, Lois knows her employers would be impressed with the access the credential provides to an elite network of professionals around the world. She believes this global network would introduce her and her company to new opportunities and clients.

Example #17

Kevin is a 38-year-old CPA who six years ago left a major firm in Rochester, N.Y., to start his own practice. Moving away from audit and assurance, Kevin initially focused on working with start-up companies. He found that he was able, because of his astute knowledge of finance and accounting, to help several of his clients build rapidly growing small businesses based on large business thinking models.

Now he is looking to expand his practice, but he has encountered difficulty persuading medium-sized businesses that he can offer an extensive range of business and professional competencies as well as a deep understanding of business knowledge systems. In several cases, he has lost prospective clients to consultants whose credentials included the MBA. Kevin believes the XYZ will be a good option for him as he competes for new clients: it provides access to interdisciplinary information and a network of experts, validates the competencies he already has achieved, and at the same time meets the standards set by the CPA profession.

Example #18

After having spent four years in Chicago with a Big 5 firm, the last two in the emerging businesses practice, Joe Smith, CPA, returned to his small but thriving Michigan hometown to start his own practice. Seven years later he leads a staff of four (divided between CPAs and non-CPAs) who have become the trusted advisors to several booming service companies. These companies include two specializing in imports from Asia and the European Union, as well as four traditional manufacturers of machine goods who have found new markets in South America.

Joe was instrumental in helping develop the strategic redirection of his clients and helped to facilitate their move into new markets. Several of the Venezuelan and European trading partners, looking for further U.S. Midwest strategic alliances, are uncertain where to start. Joe might have the kind of practice to help them out. With the global acceptability and perspective of the XYZ credential, he could further demonstrate his capabilities and competitive advantage.

More importantly, Joe views the XYZ credential as being somewhat akin in intent to the International Organization for Standardization (ISO). He hopes that colleagues and business partners also will obtain the XYZ, giving them a shared professional standard that would provide additional quality assurance and facilitate the exchange of intellectual capital.

Example #19

Senior management of a multinational corporation is frustrated that the company is unable to achieve its potential. The company has hired two CPA/XYZs to assist its senior team. Their role is to assist the company in making the best possible use of knowledge to identify optimal business decisions. Early in their work, the CPA/XYZs identified the company's outstanding talent pool. Equally evident was the lack of synergy among processes and departments. Talented people achieved excellence in their own work, but often in ways that were not complementary to other efforts in the enterprise.

The CPA/XYZs approached this dilemma through an XYZ-developed knowledge management model. They analyzed the types of information that were necessary to optimal decision-making and the processes that should be used to transform that information into a complete and coordinated body of decision-making knowledge.

They identified many instances of departments that were overwhelmed by changes in their environment and others that were not aware of the full spectrum of interdisciplinary resources required to fully address the challenges they faced. They also found weaknesses in the organization's approach to retaining corporate knowledge and duplication of efforts. This made the company vulnerable to repeating its mistakes. Even the decision-making process used by the senior management was shown to have flaws in its use of identifying and acting on critical corporate knowledge.

The senior management team was at risk of misreading the knowledge that it used as a foundation for making its decisions. The CPA/XYZ team developed strategies for the company to better acquire, organize, integrate and leverage knowledge so as to make smarter decisions and achieve the desired level of synergy among members of its highly talented workforce.

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Looking for a Quick Rundown of Pros and Cons?

One of the most common phrases in the English language is: "There are two sides to every story." The global credential is no exception.

In an effort to enable members to learn both opponents' and proponents' reasons for their positions, the AICPA has prepared a "Summary of Points of View." It appears in the Sept. issue of the Journal of Accountancy.

The summary presents arguments given both "for" and "against" the proposed credential in each of these areas: creating a new credential, admitting other professions, spending member dues, developing an interdisciplinary framework, creating a multi-national oversight organization and developing a self-funded financial structure. Seeing a balanced approach point by point may be one of the best ways for members to make an informed decision about whether the credential is a worthwhile venture for the profession.

Italy Joins Global Credential International Consortium

Italy's two leading accountancy bodies, the Consiglio Nazionale dei Dottori Commercialisti and the Consiglio Nazionale dei Ragionieri e Periti Commerciali, have joined the global credential initiative. Italy is the first European country to become a member of the Global Credential Steering Committee, which is leading and coordinating the global credential's development and launch.

The two Italian accounting organizations are in the process of merging and together will represent over 90,000 Italian accountants. It will join key accountancy bodies from Australia, Canada, New Zealand and the United States who are already members of the committee.

RELATED ARTICLE: Admission Requirements

* University education

* High-level credential examination

* 5 years of experience (for those who already hold a recognized credential such as CPA)

* 8 years of experience and attestation by 2 existing credential holders (for those who do not already hold a recognized credential)

* Commitment to uphold ethics and continuous professional development.

RELATED ARTICLE: Global Credential Member Information Center

The Global Credential Member Information Center's frequently updated Web site provides access to the business plan and a competency framework document, summarizes research results, offers frequently asked questions, and features a feedback section. In addition, through this Web site members can view a video of a pro-con debate that took place at the May Council meeting.

www.globalcredential.aicpa.org

[e-mail]

202/434-9263

202/737-7410

RELATED ARTICLE: Members to Be Surveyed on Non-CPA Eligibility

The resolution passed by Council on the global credential initiative requires that, under the supervision of the leadership of the AICPA and three state CPA societies, a statistically valid survey of members be conducted to ascertain their attitudes on the issue of the eligibility of non-CPAs to obtain the credential. During Sept., a random sample of members from the various segments of the profession will be asked to participate in a telephone survey. The results of this survey will be part of the "member reaction" discussions at Council's Oct. meeting.