Impact on profession and preparation for tomorrow cs ca nirc_22_nov[1]
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Transcript of Impact on profession and preparation for tomorrow cs ca nirc_22_nov[1]
Impact on Profession and Preparation for Tomorrow
A Rethinking Exercise onRole of the Professionals
Pavan Kumar Vijay, President
Time has come for fundamental Rethinking
Why Rethinking?
Need for Rethinking
• Professions are also exposed to variety of RISK FACTORS– Internal Risk– Technological Risk– Legislative Risk– Competitive Risk
• Professionals need to change with Changing Paradigm
• Increasing expectations of Society from Professionals
• Professionals need to grow on a Sustainable Basis
RISK FACTORS
Internal Risk Factors
• Focus on Legal Recognition - Consistent focus on legal recognition even when professionals have wider knowledge to perform variety of roles
• Limited Focus on Professional Development – After becoming professionals members do not attends programmes to update their skills and knowledge
• Research and Development – Professionals are so busy with routine activities that they forget importance of proactive research and development
• Reactive Strategy – Traditional Professionals act very late, whereas MBAs and MCAs change with time and technology
Internal Risk Factors
• Poor Communication Strategy – Capabilities of professionals are not highlighted properly at various forums
• Poor Employability – Lack of effective training and awareness in the industry
• Lack of Entrepreneurial Skills – Members still prefer less paying secured jobs than starting practice
• Lack of Self Confidence – “our members lack confidence”, “we can’t do it better than advanced countries”, “big 4 are threat”, “we cannot match anybody”, etc
Technological Risk Factors
• Technology does not come with a warning (A decade old NSE accounts for 86% Turnover)
• ERP and Financial Accounting Software have already taken most of the accounting jobs
• E-Commerce is wiping off Middle Management from the organisational hierarchy
• Financial decisions and legal compliances are becoming automatic
• Financial and Secretarial Software and Websites make it so easy that one professional can handle any number of companies
Legislative Risk Factors
• DCA Vision Statement – Towards simplified corporate laws facilitating growth of corporate sector
• Dilution of much awaited Companies Bill 2003
• All expert reports suggest further liberalisation and simplification of law
• Naresh Chandra II Committee recommends concessions to small companies and says that the company law was made in days of License Raj and now it must change for enhancing competitiveness of India
• We still find English Case Laws for Non-Compliance of Law
Competitive Risk Factors
• Global competitor need no explanation
• Reducing distinction between services provided by professionals – CS, CA, CWA, LLB all are now recognised for issuing
various certificates and representing in all Tribunals
• SEBI, BSE, NSE, and other organisations have started their own Learning Institutes
• Private Institutions are getting recognition from Government, Regulators and Industry
• Private Institutions are becoming Deemed Universities, thus adding to competition
Similarity of Services by Professionals
Difference: Exclusive Qualification Required by Law
AdvocatesChartered
Accountants
Cost and Works Accountants
Company Secretaries
Appearance in Courts
Financial Audit
Cost Audit Secretarial Compliance Audit
• Legal Advisory
• Management Consulting
• Due Diligence
• IT and BPO
• HR Consulting
• Representation & Negotiations
90% of Services are SIMILAR
All this is something happened over the years
Something more is happening
Changing Paradigm
WEALTHSHARING
Voluntary Adherence to Good CORPOARATE GOVERNANCE
WEALTHMANAGEMENT
WEALTHCREATION
GLOBALISATION OF TRADE AND COMMERCE
TECHNOLOGICAL
ADVANCEMENTS
PUBLIC PRIVATE PARTNERSHIP
These are bringing opportunities
… and also big challenges
… that may question the existence of professionals providing traditional services
”Corporate Governance is the
application of best management practices,
compliance of law in true letter and spirit
and adherence to ethical standards for
effective management and distribution of
wealth and discharge of social
responsibility for sustainable development
of all stakeholders”
Corporate Governance for ICSI
Need of regulatory controls and policing may not arise in the era of Self-Governance and
Corporate Social Responsibility
Globalisation
• Vasudev Kutumbakam becoming a reality
• Free and Fair Trade and Vanishing Economic Boundaries
• UN, WTO, WB, IMF, OECD, ADB and ICC are standardising rules for International Trade
• UN EDIFACT Standard for E-commerce is standardising information relating to Financial, Administration, Commercial and Transportation information
• Internet and Global ERP Vendors (SAP, Oracle, Baan, PeopleSoft, etc) are spreading Global Best Practices in Business
• All these moving towards Single Law for Trade and Commerce
Globalisation is a big THREAT for Pessimist Professionals
Threat Threat
Th
reat
Th
reat
Today or tomorrow we will have to face Global Competition
Technological Advancements
• Information, Communication and Transportation Technologies are redefining how business is done
• E-Governance (DCA21, EDIFAR, etc.) – Compliance on Click of Mouse
• Capital Market and Banking Integration – Straight Through Processing
• Artificial Intelligence (Expert Systems) – Automatic Decisions
• Enterprise Resource Planning (ERP) and E-Commerce – From Entry to Balance Sheet everything is automatic
• Computer Aided Design/ Manufacturing (CAD/ CAM) – quick new product decisions
In years to come computers will do most of our traditional work
Public-Private Partnership
• Partnership in National Development Projects
- National Highway Projects
- E-Governance & DCA21
- Township Development
- Development of SEZ, EPZ, STP, etc
• Mutual Trust between Government and Industry
• Example: Liberalization and Privatization Policy
• Enhancing Role of Voluntary Sector
Further relaxations in regulatory controls mean reduction in work for traditional
professionals
Some people may even Question
Will there be need of secretarial compliance audit, financial audit or cost audit in the era
of self-governance, free economies, e-governance and so many relaxations?
Time has come to rethink what traditional professionals will do in future
Rethinking Need for Various Professions
• There will always be need for giving people an opportunity of being heard
?
? ?
AdvocatesChartered
Accountants
Cost and Works Accountants
Company Secretaries
Three Professional BodiesNeed Fundamental Rethinking
Opportunities are there but need to be explored
Opportunities for Professionals
• Focus on Areas where Computers cannot enter
• Venturing into Unexplored Areas
• Diversification into New Segments
• Fulfilling Expectations of the Society
– Professionalism in National Development Projects
• Entrepreneurship
– Professionals know how to do business better than anyone
Areas where Technology Cannot Enter• Entrepreneurship
• Innovation/ Idea Generation
• Complex Decision Making
• Contingency Planning
• Crisis Management
• Human Resource Understanding and Development
• Relationship Building
Exploring Opportunities in Various Management Functions
We Already Deal with All Departments
MARKETING
R&D AND PRODUCTION
CORPORATE COMMUNICATION
STRATEGY
INFORMATION TECHNOLOGY
HRM
FINANCIAL
SECRETARIALAND LEGAL
There is need to learn little bit about these Management Functions
Professionals must diversify into New Segments
IPR & GENERAL
BUSINESS LAWSSTRATEGIC
MANAGEMENT
CORPORATE AND
SECURITIES LAWS
FINANCE, ACCOUNTs
AND TAXATION
IT AND
CYBER LAWSHRD AND
INDUSTRIAL LAWS
ENVIRONMENT
LAWS
INTERNATIONAL
TRADE LAW
Different Knowledge Areas
ADVISORY DOCUMENTATION REPRESENTATION
DUE DILIGENCE CERTIFICATION
COMPLIANCESCORPORATE
GOVERNANCESECURITITIESMANAGEMENT
Different Services
PUBLIC SECTOR
UNDERTAKINGS
PRIVATE LIMITED
COMPANIES
TRUSTS AND NGOS
COOP SOCIETIES AND
PRODUCER COMPANIES
MUNICIPAL BOARDS
Different Corporate Structures
SEMI-GOVERNMENT
ORGANISATION
UNLISTED PUBLIC
COMPANIES
LISTED PUBLIC
COMPANIES
SocietyExpects
Professionalism Here
Different Industry Segments
MEDIA AND
ENTERTAINMENT
INFRASTRUCTURE,
POWER AND TELECOM
IT SOLUTIONS
IT ENABLED
SERVICES AND BPO
TEXTILES
TOURISM AND HOTELCAPITAL MARKET AND
ITS INTERMEDIARIES
HOUSING AND
CONSTRUCTIONFMCG
AGRICULTURE AND
FOOD PROCESSING
CAPITAL GOODS
DRUGS, PHARMA
AND HEALTHCARE
BANKING AND NBFCS
FINANCIAL SERVICES
These are also open to professional entrepreneurs who wish to do business on
ethical principles
SMALLSCALE
MEDIUM
SCALE
LARGE
SCALE
Different Scales
INDIANOPERATIONS
MNCs
INDIANSUBSIDIARIES ABROAD
Different Geographies of Operations
Is it possible?
YES
All you need is:
• Understand Industry Needs
• Gain ‘Substantial Knowledge of Management’ – Learning little more than what is included in the CS or CA Courses
• Provide PQRS – Productivity, Quality, Reliability and Service
• Use 3Cs - Creativity, Confidence and Communication
• Conduct Periodical SWOT Analysis of Self
• Use Technology to Beat Technology
Providing PQRS
•Productivity – Management want you to use resources in most profitable manner
•Quality – There is no compromise on quality
•Reliability – Companies require trust in abilities and loyalty to company all the time
•Service – Value Added Services with courtesy and smile is absolute necessity
Using 3Cs
•Creativity – Innovation is the critical success factor
•Confidence – Believe in Yourself (Yes, You Can Do It)
•Communication – It is how you make people know about your creativity and confidence. It is Communication that creates opportunities.
Periodical SWOT Analysis
• Strengths: What are my strengths?
• Weaknesses: What are my weaknesses?
• Opportunities: What are new opportunities?
• Threats: What are new threats?
So that you can CHANGE with the TIME
Use Technology to Beat Technology
• Internet and E-commerce
• Enterprise Resource Planning (ERP)
• ERP for Professional Firms
• Customer Relationship Management Tools for Practising Firms
• Data Warehousing and Data Mining
• Computer Based Complex Business Analysis Models
There are many more...
AND
COOPERATE INSTEAD OF COMPETE
Global Success Call for Synergy of
BrandKnowledge
InfrastructureCapital
Let Collaboration be Buzz Word for Us
Quality of
Service
CorporateLaws
EconomicLaws
TaxationLaws
WTO & IPR
InternationalTrade Law
IT & BPOManagementConsulting
Finance and Accounting
Commerce
BrandSynergy
InfrastructureSynergy
CapitalSynergy
Collaborative Commerce
SingleWindowInterface
KnowledgeSynergy
GlobalPresence
Growing Revenues
Growing Customers
Growing Nations
CS + CA + CWA + MBA
+ LLB
OPTIMISM COMES FROM COOPERATION
For Optimists Globalisation means Opportunities in 145 Member Countries of
WTO
OpportunitiesOpportunities
Op
port
unit
ies
Op
portunities
Global Threats To Global Opportunities
It’s a matter of Perception and Positive Thinking
Thank You