Leaders or Followers

Approximately 3,400 CPAs took personal responsibility in the creation of the Core Purpose and the Vision Statement for the profession. For the Vision to be a true success, all CPAs must recognize and understand the opportunities that the Vision presents. All CPAs must take individual responsibility to personalize the Vision in their working lives.

The following phases are the mental transitions people make as they progress from the time they first become aware of an opportunity to the time they are willing to take personal responsibility for it.

AWARENESS Becomes aware of an opportunity or innovation but lacks detailed information.

INTEREST Seeks additional information about the opportunity.

EVALUATION Considers whether there is value in the opportunity.

TRIAL Experiments with the innovation on a small scale to estimate its usefulness.

ADOPTION Fully commits to take advantage of the opportunity and implement the innovation.

What is the difference between leaders and followers? The Adoption Model illustrates how innovators and early adopters are leaders. The majority of the population waits for these leaders to undertake the process of change before joining in.

INNOVATORS are venturesome and willing to try new ideas at some risk. They are the first 2 1/2 percent to adopt innovation.

EARLY ADOPTERS are guided by respect from others. They are opinion leaders in their community and adopt new ideas early but carefully. They are the next 13 1/2 percent to adopt innovation.

LATE ADOPTERS are deliberate. They adopt new ideas before the average person but are rarely leaders. They are the next 34 percent to adopt innovation.

LAGGARDS are bound by tradition, suspicious of changes, mix with other tradition-bound people, and adopt innovation only because it has now taken on a measure of tradition itself. They are the last 16 percent to adopt innovation, and often only make change when there are no alternatives.

Where Are You? Where Do You Need To Be?

The CPA profession has historically adapted to new models of behavior, business practice, and technological innovation in the Late Majority portion of the cycle. By the time uniform standards, checklists, and guidelines can be written and systems perfected, the innovation or change has likely reached maturity at the apex of the bell curve.

At this stage, the innovation tends to be a commodity with value only in the "faster, better, cheaper" model of the marketplace. Unless the profession is prepared to compete for razor thin profit margins in the world of high volume and mass markets, CPAs will need to adapt to change much earlier in the cycle.

Innovators and Early Adopters actively seek opportunities and position themselves to take advantage of changes in the marketplace by leveraging opportunities and innovations to create new working prototypes. They are willing to assume reasonable risk and lead change in exchange for the opportunity for higher salaries and profit margins. These leaders are positioned to shape the rules of the game, enhance their reputation, and capture market share when the value of the innovation is highest.

Their professional judgment is called into play more often, making their work more rewarding through a variety of experiences which enhance their understanding of the business environment, the needs of the marketplace, and further support their role as innovative leaders. This entrepreneurial mindset can be cultivated.

Change has a momentum of its own that will not wait for CPAs to catch up. If some will lead, others will follow. The luxury of endless analysis and protracted decision-making, and the security of "sure things" are gone.