The XYZ Credential
An opportunity to lead the professional services industry in the 21st century. Editorial written by Jim Emerson, president, The Emerson Company, which has been the leading analyst for the larger professional service firms for nearly 20 years. Emerson's Opinions on Professional Services is a publication issued periodically by The Emerson Company and serves as a forum to promote professional criticism and opinion. The company's primary goal, through publications and research services, has been to help the profession continuously improve. For more information on The Emerson Company see www.emersoncompany.com. Dated July 23, 2001--Reprinted With Permission. Fundamental shifts in the nature of business have created new challenges and opportunities in professional services. The pace of change, technology, globalization, environmental and political factors, talent shortages, and the increasing complexity of business transactions are driving this shift. Businesses and individuals today are required to integrate knowledge to successfully solve challenges. And this issue extends far beyond the largest multinational companies to middle-market companies, emerging companies, and individuals. In response to this reality, there is a clear need for professionals who have the knowledge and experience to bring disparate competencies together to solve complex problems. While this quarterbacking function has been going on in an informal manner for some time, credible independent research would indicate that the market need has matured to the point that a much more formal credential process is warranted. Clients want a higher level of assurance that the integration function is being handled by professionals who have the skills, training, and experience to get the job done in a comprehensive and quality manner. In response to this opportunity, the American Institute of Certified Public Accountants has launched its XYZ credential initiative. The XYZ label is simply the placeholder name for a yet-to-be selected title. A previous name, "Cognitor" had been used; however, the AICPA membership did not find the "Cognitor" label appealing and it was dropped. Once the credential is officially launched, a new global professional body, separate from the AICPA, will be formed to provide the ongoing infrastructure and support for the credential. Essentially, the XYZ credential will constitute a new profession that will be different and distinct from other existing professions and will complement, not compete, with the other credentials. Under the AICPA plan, professionals who possess the XYZ credential will have specific integrative competencies, professional competencies, and cross-disciplinary knowledge. Integrative competencies represent the true differentiators of the XYZ professional and demonstrate the capacity to envision, strategize, conceptualize, and innovate. These competencies include creating and leveraging knowledge, systemic thinking, future focus, strategic thinking, innovation, conceptual skills, and a global perspective. Professional competencies are the enablers that allow the XYZ professional to be effective. These competencies include an entrepreneurial orientation, stakeholder focus, external focus, analytical prowess, organizational insight, networking and resourcing, recognized expertise, impactful communication, compelling influence, dedication to excellence, and lifelong learning. The XYZ professional must also have a solid knowledge base. This knowledge differs from knowledge required for other credentials in that it covers a much broader range of functional expertise. This cross-disciplinary knowledge covers accountancy, business law, corporate finance, human resources, information technology, marketing/sales, and operations. The knowledge required in each of these areas is not at the depth of a professional who works exclusively in the area; however, the XYZ must have a big picture understanding of specifically how a competency brings value in a business sense. …