Merry Christmas to Peter Wilson. When it was suggested that Peter Wilson should be independent of the old board so that we can have a fresh start Peter responded with "That's your issue". Summary of the meeting here: viewtopic.php?f=23&t=594
A good summary of where we are up to by Joe Aston of the AFR, linked to from here: viewtopic.php?f=5&p=4137#p4137
If you are new to this website read the story so far: viewtopic.php?t=321#p1793
Check out some of the AFR articles, too many to list and check out some of the ABC reports: http://www.afr.com/business/accounting/ ... 215-h055ej http://www.afr.com/business/accounting/ ... 211-h02x1d http://www.abc.net.au/news/programs/the ... s,/8626662
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10 Apr 2018 - AFR - Numbers game as losses lead to big cuts at Chartered Accountants ANZ

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JWheldon
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10 Apr 2018 - AFR - Numbers game as losses lead to big cuts at Chartered Accountants ANZ

Post by JWheldon » Wed Apr 11, 2018 1:06 pm

For all those members that have now joined the ICAANZ, it may be time for the Chartered Accountants to have their own independent review?

Sounds like major changes required at ICAANZ. Will the Professional Year course, change to a computer based multiple choice system, which is subcontracted out to an organisation like the PDL Academy and become like the CPA Program? I would be sure that a lot of the Chartered Accountants would not be very pleased with this.

The whole not for profit sector is in need of major changes with regards to accountability. Are those in power ready to take the step for change and reform the sector for the better?

What do other members think?

http://www.afr.com/business/accounting/ ... 314-h0xg80


Australian Financial Review

10 April 2018

Numbers game as losses lead to big cuts at Chartered Accountants ANZ


by Edmund Tadros

Up to one in six staff face the chop at Chartered Accountants ANZ as the nation's second largest accounting body calls in two consulting firms to help transform the operations of the loss-making outfit.

The Australian Financial Review can reveal that chief executive Rick Ellis is overseeing a program in which up to 15 per cent, or about 70 positions, of the 500-odd roles at CA ANZ will be cut over time, a variety of functions will be outsourced and spending on travel and information technology will be slashed, all in an effort to stem losses totalling almost $15 million over the past two financial years.

Mr Ellis said the organisation had always flagged a few years of losses after it was formed in 2014 with the merger of the Institute of Chartered Accountants Australia and its New Zealand arm but that he aimed to get back into profit by the end of this financial year.

"At the end of the day, any organisation that's in red does have to look at a combination of cost reduction, which in my mind equals productivity improvements; investments in technology, which do eliminate jobs and that's just the way the world works; but also in growth initiatives, particularly in our case around education and membership," he said.
Staff cuts

The behind-the-scenes financial drama around spending at CA ANZ has played out as the body's long-time CEO, Lee White, left last April and as Mr Ellis took on the leadership position in August.

It also has happened as rival accounting body CPA Australia experienced an unprecedented member uprising, mainly over the way member funds were used, that saw CEO Alex Malley fired, the entire board resign and a promise of wholesale reform from the new board

Despite this uprising, CPA's 2017 annual report showed the accounting body posting an increase in overall consolidated profit of $10.4 million, up from $8.2m in 2016.

In contrast, CA ANZ posted consecutive deficits of $8.2 million in 2015-16 and and $6.8 million in 2016-17.
The body's long-time CEO Lee White announced he was leaving last April and Mr Ellis took on the leadership position in ...
The body's long-time CEO Lee White announced he was leaving last April and Mr Ellis took on the leadership position in August. Peter Braig

A key leg of the CA ANZ cost cutting is a radical reorganisation that will see dozens of staff cut from the organisation over time. Mr Ellis has brought in organisation design firm AlignOrg to consult on the new structure and distributed a preliminary plan to staff two weeks ago. Staff have since provided feedback on the plan, with many saying the cuts were too deep.

"The final input from our staff was basically the backend of [last] week and then we'll consider all of the inputs from staff, make adjustments where appropriate to the org design, then we'll share that with all staff and then we start to reshape," Mr Ellis said.

The final staffing plan, along with details of the planned cuts, will be provided to CA ANZ staff on Monday. Mr Ellis also flagged that the body would use outsourcing "where it makes sense".

"There will be aspects of our delivery of operations or delivery of services that we will outsource ... it's probably more in the member services area ... there will be some outsourcing in IT services. It's quite normal in any business where you outsource as opposed to have programming capability in-house," he said.

Mr Ellis also wants to reduce travel costs from $5 million last year to $3 million this year. The body also has not renewed the contracts of a number of temporary staff andhas put on hold a range of thought leadership projects.
IT spending

One of the key causes of the operating deficits is big spending on information technology, which totalled $15 million over the past four years. Two key projects highlighted as particularly expensive by a number people familiar with CA ANZ operations are a Deloitte Digital-designed website and the troubled Kairos data analytics platform.

Deloitte Digital was called in to develop a revamped website for CA ANZ, with the eventual cost of the project about $3 million, more than double the original $1.5 million budget.

A CA ANZ spokesman would not comment, saying the cost was commercial in confidence, but said the "website investment is delivering significant returns in members' satisfaction and usage which has increased dramatically ... the volume of unique visitors to the site has increased by 25.8 per cent".

Another issue is that the body continues to struggle to integrate its Salesforce member management system with the Deloitte Digital website, with Mr Ellis saying "we've made substantial progress in the last six months" but admitting "there are still some issues being resolved".

Then there is the much-hyped Kairos project. CA ANZ spent millions developing the cloud-based suite of programs and tools for small and medium accounting practices.

The laudable aim was to help smaller practices use more efficient technology in their businesses and to provide to members access to data-crunching capabilities.

But the loss-making service fell well short of plans to have about 3000 paying subscribers by last September and CA ANZ is now looking to have an IT partner market the service.

"We have not hit our targets, which led us to review Kairos," a spokesman said. "That review found that Kairos' functionality, purpose and capability all rated highly. However, our ability to market and sell Kairos was limited. To bridge this gap we are negotiating with an IT distribution partner who has much greater expertise than us in taking software to the market."
Second Road workshops

Consultant Second Road, which was bought by technology consultancy Accenture last year, has carried out about 100 workshops with CA ANZ staff and a range of members from different backgrounds and organisations to help inform the new strategy for the body.

"Second Road would tell us that we held more workshops than they've ever done before for any organisation," Mr Ellis said.

The three main findings from the workshops were that the body's education offering had to be delivered more flexibly and offer more variety to deal with the differing needs of members, the body needed to advocate for a wider range of members, and members wanted help in using the latest technology in their practices or business.

Mr Ellis said he planned to partner with digital start-up, incubation and acceleration hubs to co-develop services for members.

He defended his spending on external consultants, saying part of his responsibility was to "ensure we represent the interests of our members and the profession today and into the future".

"We engaged Second Road to ensure we thoroughly explored and defined the future needs of our diverse membership base," he said. "It is critical that we translated these needs into a contemporary forward looking organisation and therefore we engaged AlignOrg as specialists in this field.

"We will not comment on the costs associated as these are commercial in confidence, but we did significantly compress the time usually invested in these types of projects to ensure a quick and efficient outcome for the organisation and our members."

edmundtadros@afr.com.au

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Re: 10 Apr 2018 - AFR - Numbers game as losses lead to big cuts at Chartered Accountants ANZ

Post by nakedadmin » Wed Apr 11, 2018 9:01 pm

Kairos sounds like the equivalent of a CPAA Advice money pit.
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The Nude CPA
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Re: 10 Apr 2018 - AFR - Numbers game as losses lead to big cuts at Chartered Accountants ANZ

Post by The Nude CPA » Thu Apr 12, 2018 10:12 am

JWheldon wrote:
Wed Apr 11, 2018 1:06 pm
A CA ANZ spokesman would not comment, saying the cost was commercial in confidence, but said the "website investment is delivering significant returns in members' satisfaction and usage which has increased dramatically ... the volume of unique visitors to the site has increased by 25.8 per cent".
I wonder how much of that increased volume could be attributed to CPAs looking to jump ship...

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Re: 10 Apr 2018 - AFR - Numbers game as losses lead to big cuts at Chartered Accountants ANZ

Post by certified sane » Thu Apr 12, 2018 11:38 am

I do not think anyone can compare an open review into a failed business venture to what CPA did with Advice. Without the hard work and dedication by the troublesome few destabilisers the CPA debacle would still be hidden from the members, let alone the public. From my reading ICAANZ has publically acknowledged its failures and losses. I am far more comfortable in dealing with them in a transparent and business minded way than what has been occurring at CPA for so long.

Besides, its much better to be making a loss due to programs designed to assist members than the surpluses that included disgusting remuneration packages of KMP and egotistical marketing spending. Of course loss making has a finite life but after jumping ship I have no regrets.

fidgetspinner
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Re: 10 Apr 2018 - AFR - Numbers game as losses lead to big cuts at Chartered Accountants ANZ

Post by fidgetspinner » Sat Apr 14, 2018 7:41 pm

CAANZ never had an OTT CEO like AM but as accountants we have to bottomline it and in the losses at CAANZ speak for themselves. Like CPA they had a failed initiative intended to benefit members. Clearly they both underestimated the costs and risks of attempting to establish an in house member service and the lack of demand.

The CEO has gone but has the board been held to account?

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Red_Ferrari
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Re: 10 Apr 2018 - AFR - Numbers game as losses lead to big cuts at Chartered Accountants ANZ

Post by Red_Ferrari » Fri Apr 20, 2018 6:12 pm

fidgetspinner wrote:
Sat Apr 14, 2018 7:41 pm
The CEO has gone but has the board been held to account?
It hasn't. It might happen if the entire board is removed at the AGM.

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