At the cutting edge of the diamond

There may be the odd wrinkle; perhaps the merest hint of a worry line here, or a crease there. But it has to be said that after almost three years in the role, Allen Blewitt, global brandbearer-in-chief for ACCA, is looking remarkably chipper for a man with the weight of expectation of 360,000 members and students worldwide firmly resting on his shoulders. But in the run-up to a major debate on the future of the accountant at the World Congress in Istanbul, where ACCA will be the lead sponsor, what are the issues which keep the CEO awake at night? Can the profession now burnish a reputation badly tarnished by the debacle of the Enron and subsequent scandals? How does Blewitt see ACCA’s role in the restoration, and just what does the future hold?

Where is the new generation?

‘The profession worldwide is moving past its initial reaction to the embarrassment of Enron and WorldCom,’ he says. ‘It has digested most of the increase in regulation and oversight and is dealing with, if not necessarily happy with, a pretty intrusive level of regulation, particularly on those who are impacted by developments such as Sarbanes-Oxley. But my hunch is that one of the biggest issues for many accountants, whether in business or practice, is where are they going to find the next generation of accountants, because there is a global shortfall. As I travel, I hear CFOs and managing partners of firms all asking themselves how they will attract, and more importantly retain, highly mobile professionals.’

To be fair, Blewitt and his team are doing everything they can to help on this front. With ACCA’s new professional syllabus about to kick off, is the CEO satisfied that the seemingly endless round of consultations have made their mark? ‘ACCA 2007 has achieved fantastic feedback,’ he responds without hesitation. ‘We are on course for making ACCA 2007 a world-beater. We have refreshed the technical content and scope of the syllabus to meet the future needs of accountants and injected a strong element of professional ethics, and we are bringing the right product to the market at the right time. I am personally committed to active member engagement in the process of consulting about future direction,’ he adds, citing the variety of electronic technology ACCA is using to sample the views of members. ‘This is happening on a constant basis,’ he says, ‘and we have achieved a member retention rate of over 97%.’

Malaysia and Turkey

As we speak, Blewitt and ACCA’s governing Council are newly returned from Kuala Lumpur, Malaysia, where ACCA has, for the first time, held a Council meeting outside Europe. So how did it go? ‘In my view, subject to a review by Council, it was outstandingly successful. We engaged with over 2,000 members and students in Malaysia. That is quite an achievement and it justifies the decision of Council to demonstrate tangibly that we are part of the global accounting community.’

It is no secret that one of Blewitt’s main priorities has been enhancing ACCA’s reputation locally and worldwide, and with ACCA’s Council he has taken the lead on a number of high profile initiatives of which ACCA’s sponsorship of the imminent World Congress is probably the most high profile. But why now?

‘The reason why Council took the decision was that this event is taking place in Turkey, which is a hub of future members of the profession for ACCA. Also, we are a global player in the accounting profession with a board presence on IFAC for a second term, and this initiative is part of our support for the global profession and gives us the opportunity to support our colleagues at TÜRMOB and IFAC. This is all about demonstrating our good citizenship and extending our reputation in this part of the world,’ he replies.

International brand building

‘In the last three years we have put considerable and consistent effort into building our reputation and influence in multiple markets. We seek out opportunities to speak at high level conferences, we provide high level commentary and technical expertise on professional policy issues in a range of markets around the world, and this demonstrates that ACCA, as a professional body, is committed to far more than just growth and that we are prepared to participate in building our own and the profession’s reputation. I decided two years ago to drive us much more strongly down the path of influencing public policy. Instead of criticising after legislation is produced, we wanted to influence the development of legislation and regulation in the early stages. And we’ve done that. We’ve already set up that function and we’ve achieved a great deal in the UK in terms of enhancing our reputation and influence, and in terms of being consulted by the opinion leaders at the formative stage. The next step for ACCA is to take what we’ve learned from the UK and Brussels and inject this expertise internationally into our most important international jurisdictions.’

Blewitt believes that this is something ACCA is well placed to do as an organisation, which the individual member cannot achieve alone. ‘We are achieving a great deal of influence, and our research shows that ACCA’s brand recognition is much stronger than it was three years ago, and we are seen as a highly respected international accounting organisation and not just a fast growing organisation. There is a leadership responsibility we take because we can take advantage of the skills of our elected Council, committees and volunteers on high level technical advisory committees. The mere fact that we are putting a policy representation forward is good for ACCA’s reputation and brand, and far better than silence.’ Clearly, this is something about which the CEO feels very strongly.

Whither IFRS?

And what of the issue of international accounting standards, on which ACCA has been a pioneering supporter for many years? ‘It would be premature to form a verdict at this stage,’ Blewitt asserts. ‘IASB has a number of strong challenges ahead of it, and the major one for ACCA is IFRS for SMEs. This is a grassroots issue. The IASB has done a very sensible thing and slowed down the production of standards. We are entering a phase which involves not just understanding the new standards but implementing them satisfactorily, and for accountants in public practice this means review by their professional body on their compliance. We must do more to assist our members with understanding and implementation.’

A climate of competition

In the wake of a failed merger between three members of the Consultative Committee of Accountancy Bodies (CCAB) in the UK, competition is also a challenge at the forefront of the CEO’s mind. Blewitt emphatically sees the future in strategic partnerships. He responds: ‘We have an established infrastructure on the ground and an international business model which is extensible to international markets, rather than a UK model which is being stretched to deal with other markets. I am heartened by the number of national bodies in maturing markets which have sought partnership with ACCA to assist them, for example, in the regulation of their own members, and in the delivery, management and administration of CPD, to enable them to be fully active and complying members of IFAC. We have consciously and explicitly sought to be much more of a partner than simply a provider of education and training.’ He cites Cyprus as a favourite example. ‘We are now assisting Cyprus with the training for and delivery of quality assurance services, and assisting them with CPD.’ He also believes that more and more ACCA members are themselves realising the flexibility of ACCA’s CPD scheme. ‘Whenever I talk to our senior members one-on-one they are delighted to hear how flexible our requirements are.’

In this crucible of constant change, Blewitt does not underestimate the challenges ahead, but he is confident that, with Council’s strategic lead, ACCA is moving in the right direction and it is clear he relishes the prospect of ACCA shining in Istanbul as Diamond Sponsor of the World Congress.