Dynamic Environment and Challenges to the Profession / Institute 3.5.2 Competition beyond the Profession Consequences for the Profession The Chartered Accountants will form alliances with specialist niche market firms. Consequences for the Institute The Institute will need to demonstrate relevance to firms employing non chartered accountant advisers ( In Addition to CAs) Technological Access to Skill Sets(3.5.3) Consequences for the Profession Global competition/Global alliances will present opportunities for some sectors of the profession and threats to others. Consequences for the Institute The Institute's relevance to its increasingly mobile membership will be questioned - a network of memberships with other bodies will be required. Small firms will require assistance in realising opportunities in the global business environment. The Institute will need to counter the threats among post graduate Members to market their technical qualification rather than their CA qualification. Specialisations(3.5.4) Consequences for the Profession   The CAs will have the opportunities to compete against and/or to form alliances with specialist organisations.   Specialisation will replace the service vs. public practice Membership dichotomy. Consequences for the Institute To maintain relevance, the Institute's Member services will need to reflect the increasing and diverse specialisation among the Membership. (Notwithstanding the above point) Members will expect the Institute to view them as individuals Promotion of Chartered Accountants designation will need to emphasize both the traditional Chartered Accountants strengths/core values and the CA specialisations. Decline of the Intermediary(3.5.5) Consequences for the Profession CAs will need to develop new skills (or attain these via alliances) to meet demands for full service deliveries Consequences for the Institute The Institute will need to promote the full range of services CAs offer. Virtual Corporations( 3.5.6) Consequences for the Market Place New linkages between business partners will be possible. The life span of Virtual Organisations will be short. The location of corporate Head Offices and Branches will become increasingly irrelevant. Demand for Commercial Business District (CBD) Property will decline. Technology businesses will proliferate. Consequences for the Profession The cost structure will need constant review to ensure the profession remains competitive. New Business Management Methods(5.5.7) Consequences for the Profession New Management skill will be needed to run knowledge based organisations. Consequences for the Institute The Institute's Education Programme will need to include training in new Management techniques. Ownership and Control of Accounting Firms(3.5.8) Consequences for the Profession CAs in large firms will need to demonstrate continued independence despite ownership changes. The profession will need to be aware of availability of different forms of finance. Consequences for the Institute The Institute will need to promote the full range of services that Chartered Accountants offer. The Institute will need to determine its role regarding new ownership issues. Members will seek training on capital market issues. The Institute will have the opportunity to market the independence of Chartered Accountants as a key differentiator. Out Sourcing and Contracting(3.5.9) Consequences for the Profession Process and skill sets will replace organisational structures based on function. CAs will work in the virtual market place rather than big organisations. Consequences for the Institute The Institute will need to define its role with respect to outsourcing and the impact of outsourcing on the independence of CAs. Demand for New Knowledge and Skills(3.6 ) Information Management Skills(3.6.1 ) Consequences for the Profession CAs will source and present specialist information. Reporting by CAs will be expected to synthesise and interpret information from multiple sources. CAs will need to partner with experts in communications. New Reporting standards will be needed. Consequences for the Institute The Institute will need to operate as a knowledge based organisation by adopting the appropriate structures and delivery mechanisms for its educational and other products. 3.6.2 The Knowledge Based World Consequences for the Profession Firms will need sophisticated IT and tele communications systems. New opportunities and threats will emerge as new competitors with large capital reserves enter the market . One of the consequences could be pressure on CAs to sell financial services. The professionals will be able to assist business in transforming information to knowledge to create competitive advantage. Firms will be able to develop expert systems based on traditional knowledge. Consequences for the Institute Information and Communications technology will become a core competency of the profession. The Institute will need to review the rules regarding ownership of Member's firm. The Role of the Volunteer (3.6.3) Consequences for the Profession CAs will spend increasingly more time on further study and will have less time to volunteer for Institute roles. Mentorship and supervised training roles will be limited due to lack of volunteer resources. Consequences for the Institute Increased operating costs (Specially Educational Training or Education Cost) will increase the Institute's demand for volunteer inputs. Possible diminution "loyalty" to the designation will negatively impact on the Institute's ability to attract the volunteer. The Institute will need to identify appropriate incentives to maintain volunteer input. Qualifications(3.6.4) Consequences for the Profession International recognition of Chartered Accountant designation will need to be extended so that CAs can successfully compete in all major markets. Existing Membership reciprocity agreements will need to be maintained and extended. Consequences for the Institute The Institute will need to be more flexible with respect to pre-requisite qualifications for entering into its professional programme. Education programmes will need to deliver two types of knowledge - Industry specific and generalist. To ensure a quality premium for Indian graduates, the Institute will need to:   Identify what is based on practice and influence University curriculum. Interface with Government and Business. Place pressure on Government to lift education standards. If Universities fail to respond to educational challenges, the Institute will have, further opportunities in the Education Market. New agreements will be sought with other international associations so that CAs can operate in all major global markets. Changing Demand for Performance Measures(3.6.5) Consequences for the Profession Training programmes on few forms of non-financial measurement system will be required. Standards for reporting and auditing will change. Need to create an interface between financially trained and non-financially trained professional. The professional will be subject to the conflicting requirements of business, and specialisation and multi skilling. Consequences for the Institute The Institute will have the opportunity to help define the future roles of CFO (e.g. Risk, Treasury, Performance) and to ensure that CAs competencies enable Members to succeed in such roles. The Institute will have the opportunity to create a learning environment that integrates financial and non-financial performance models. Education programmes will need to accommodate training on non-financial measurement. Continuing Professional Education (CPE)(3.6.6) Consequences for the Profession CAs will seek Continuing Professional Education relating to their areas of specialisation and assist them in adding value to business. Members in small practices will need to broaden their technology skills. Consequences for the Institute The Chartered Accountant designation will need to reflect the attainment and retention of specialised skills. The Institute will need to appraise:   Its role as Continuing Professional Education providers Vs Broker. Alternative strategies to ensure the competitiveness of its continuing Professional Education (Privatisation alliances, outsourcing etc.) Globalisation of Business Community (3.6.7) Consequences for the Profession CAs will require detailed knowledge of international accounting and tax systems. Globalisation and liberalisation will impact on accounting firms in the same manner as business. The profession will be segmented into two groups - Those who are involved internationally and those who are not. Consequences for the Institute The Institute will operate with the challenge of meeting the needs of disparate Membership group. Unless the Institute addresses the globalisation issues, it will remain relevant only to those Members who operate locally. Globalisation of Chartered Accountant programme will be essential for Members who provide services to transnational clients/employees. Changing Attitudes to Work/Family Issue and Changing Work Environment( 3.7 ) Demand for Knowledge based Workers(3.7.1) Consequences for the Profession Challenges to Indian CA will include:   Management of Information Technology. Change Management Workplace diversity Education needs Episodic career patterns CAs will need generalist and specialist knowledge. Consequences for the Institute The Institute will need to define its role vis-à-vis multi disciplinary firms. The Institute will need to promote the professionalism and quality of CAs designation. 3.7.2 Career in Intra (Cross Function) and Inter Organisational Success Consequences for the Institute The Institute has the opportunity to develop strategic alliances to facilitate Members' career progress and thus, to maintain Member loyalty. Reduced Importance of Spatio - Temporal Factor(3.7.3) Work patterns set by Global Information flows Work Located where skills and Technology are Consequences for the Profession Advances in Technology will lead to:   Commoditisation of traditional products. Emergence of new competitors in traditional markets. Consequences for the Institute The Institute will need to address leadership and training issues regarding:   Membership diversity. Impact of change on the profession. Demands for flexibility in provision of services to Members. The Development of new services (e.g. Assurance). Ethical Challenges to the Profession. Previous