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