Increasing Member Value for Next Generations Bill Reeb CPA, CGMA, CITP Lawson Carmichael AICPA Vice Chair Chief Operating Officer

54% of firms of all sizes recognize the need to change Digital is rapidly transforming firms and the profession 54% of firms of all sizes recognize the need to change Outsourcing Automation Development of a highly skilled, digitally proficient middle layer is key Source: 2016 PCPS Survey

Innovation and changing client demands affecting firms Technological innovation New client demands Changing operating model Artificial Intelligence Data analytics Blockchain Advisory Cyber risk Digital in the core CPA-led professional services firms New talent models Outsourcing

Advisory services risen 189% in 8 years due to client demand Revenue split at top 100 accounting firms $75 Non-traditional and Advisory services 189% growth Now more than one-third of revenue Tax 67% growth just over one-quarter of revenue $42 Audit and accounting 37% growth now 35% of revenue — was 45% in 2010 Other 50% growth 4% of revenue Based on: Accounting Today, Top 100 firms survey, 2010 and 2018

Gen X and Millennials rapidly becoming large % of membership 2007 2017 2025 (est*) Boomers >50% of members Gen X and Millennials >50% Four generations of members; Gen Z ~20% Note: includes regular voting members only; excludes honorary, college student, CPA exam candidate, and associate categories *Estimates based on internal data, Pew Research and US BLS generational growth projections

In member organizations, one’s needs differ throughout life Motivation Millennials Gen Xers Boomers Learning new skills 55% 51% 39% Career advancement 52% 40% 29% Mentoring & advice 47% 41% New job opportunities 46% 33% 19% Getting a new job 30% 14% Getting a promotion 38% 28% 12% Source: AICPA “Generation Z and the world of work.”; 2018 Member Education and Career Development Report, Community Brands

Young CPAs seek different relationship and proposition…. Need for training, but want it customized, flexible, on-demand and more soft skills High Seasoned CPAs Career growth between employers, locations, and even job functions Importance Med Young CPAs Special rates and discounts no longer a top draw Being part of a profession less important than historically Prefer digital vs in-person Low Career mobility Prestige Networking News & Technical Info Advocacy Training & Relevancy Member Discounts Consultative Advice Proposition Sources: 2017 internal research report “Generation Z and the world of work.”; 2018 internal marketing reports on customer archetypes; internal member satisfaction survey results (multi-year)

By 2025, how does the profession (including AICPA & State Societies) adapt our value proposition to serve the needs of the next generations while balancing the needs of the current core membership? 30 minute table top discussion Enter answers via Conferences IO Report outs