How did the Leadership Skills Development Conference come about?

FR:

This was our third conference.  We started 3-1/2 years ago. 

When I retired from KPMG after 38 years, I started looking for ways to increase the number of minorities, specifically African Americans, in the accounting profession.  I also wanted to find ways to help them deal with issues involving diversity and to help them find ways to stay in the profession longer – those sorts of things.  Out of that interest came the opportunity to start the Leadership Skills Development Conference.  The program is sponsored by Howard University's School of Business Center for Accounting Education and supported by the major accounting firms, as well as some of the minority-owned CPA firms. 

We’ve begun reaching out to some of the other global accounting firms. So, it’s really an industry-wide effort aimed at bringing young African Americans professionals together to encourage them to pass the CPA exam, and to give them some of the leadership skills needed to be successful in the profession. 

What was your career path like?

FR:

I’m a career-long accountant.  I graduated in June of 1966 from Long Island University and the next month I joined Peat, Marwick, Mitchell & Co.  I retired from KPMG, the successor firm to Peat, Marwick, at the end of 2003. 

Before you retired, were you assisting young African Americans with their professional development?

FR:

I guess I've always been involved.  I was one of the founders of NABA [National Association of Black Accountants] back in 1969.  It was actually founded in my living room.  I was NABA’s first president.

FR:

At the time, the Big Eight accounting firms were all starting to open their doors to African Americans, or "blacks" as we were better known back then.  As a result, they were recruiting at different colleges and universities, and bringing them to major cities like New York and Chicago.  But no network existed to assist blacks at the time; and the firms certainly couldn’t provide a network to help their new hires transition from college into professional life.  Our desire to fill that void is what really gave rise to the start of NABA.

How is NABA involved with the Leadership Skills Development Conference?

FR:

NABA is involved only as a sponsor.

The Leadership Skills Development Conference grew out of my desire to address some of the issues that I saw confronting the accounting profession.  One of those issues dealt with the fact that a lot of minorities were not passing the CPA exam as rapidly as they should, or taking the exam when they should.  

Another issue was the high turnover among African Americans in the profession.  The accounting firms would hire them off of campus, but many would end up leaving the profession after three or four years.  Only a handful would remain and become successful. 

When I talked with new hires, I learned that they were unaware of successful black CPAs in firms like Ernst & Young.  So, one of the objectives of the conference was to give young professionals access to senior black talent within the profession.  I wanted them to know that there’s no reason for them not to aspire to leadership positions within their firms.

You enjoyed a long, successful career in accounting without the aid of black role-models and mentors.   Today’s new hires who seem to need mentoring and development that you didn't. What's different about the two generations?

FR:

When I was their age, I knew the accounting profession was just starting to open its doors; so, I knew I was a trail-blazer – one of the first.  I did not expect to see blacks in high-level positions in the firms. 

Today’s new hires know the country and the business world have been integrated since the Civil Rights Movement of the 1960s.  They take it for granted that blacks will be in high-level positions across firms.  They expect to see black partners.  When they don’t see them, or enough of them, then they view the profession as not providing equal opportunity for everyone.  Their expectation is that if you say the profession is open, then they ought to see it. 

My expectation was different – all I wanted was the chance to participate on a level-playing field.  People of my generation did not expect to see other people above us.  Being the firsts, we knew we were the ones that were going to make opportunities for others, and that other people would have greater opportunities than we had.  That’s a big difference.

In terms of reaching out to young people, how do you draw participants to the Leadership Skills Development Conferences?

FR:

This year, we had about 125 registered participants.  They came from eleven CPA firms – the Big Four, the other three firms that make up The Global Seven, and then five black-owned CPA firms. 

The conference was open to people who had one year or less in the profession.  In addition, the firms could send recent graduates that had just joined them or were about to join them.  About 75 to 80 percent of the attendees had nine months or less with their firms.  The rest had just joined, or were about to join one of the Big Four firms.  The attendees came from approximately 81 different colleges – about 10 HBCUs [Historically Black Colleges and Universities] were represented in that number.  Most of participants came from a major college. 

The Center [at Howard University] imposes a few requirements regarding participants.  Due to size restrictions, we limit the number of participants each firm can send to thirty.  The second requirement is that each participant be someone who has not yet passed the CPA exam.  A day and a half of the program is devoted to hands-on CPA exam preparation.  Throughout the entire week-long conference, we stressed the importance of becoming a CPA. 

The selection of participants is done by the individual firms from their offices nationwide.  I should add that the course materials and the presenters also come from the firms, not Howard University professors – although a few might participate.  We really seek and get support from the firms.  We go to a firm like E&Y and ask them to develop a session.  This year E&Y did a session entitled Building and Supporting Alliances. 

Firms work with me to develop the sessions and to select the presenters.  We try to get as many African American partners as possible to be presenters – not just from E&Y, but also from Deloitte, KPMG, Price Waterhouse and all the participating firms.

We want the participants to see black partners.  Seeing a black partner is still not an everyday occurrence, but each year more African Americans become partners – so, it’s an improving situation. 

Have you begun to track the success of the conference in terms of its influence on the attendees?

FR:

We are in the process of doing that – and improving upon that.  At the end of six months, and every six months after that, we send a survey to all of the participants.  We ask them where they stand in terms of passing the CPA exam.  We ask whether they have taken the exam, and if so, which part of the exam, and which parts they passed, and whether they have passed all of the parts.  We also ask whether they found the conference helpful in improving their performance after they returned to their firms.  We ask the firms to track performance improvements among the participants as well. 

We still haven’t received the level of responses I would like, but I am hoping that will change.  I send out the survey via email and I think there’s some hesitancy on the part of participants to tell me that they haven’t passed the exam.  I think that’s a good motivating factor for them.  In September, we’re going to survey our first class from three years ago.  I think we’ll be pleasantly surprised with the number of participants that pass the exam.  I wouldn’t be surprised, if after two or three years, 50-to-60 percent passed the exam. 

Passing the CPA exam is a vital measure of success, but I think gaining exposure to people such as yourself and other African American partners who participated in the conference has to be a positive experience, even though it might be harder to measure.

FR:

It is hard to measure, but the participants definitely benefit from the exposure. 

One of the things that excites me about the program is seeing the participants as we kick things off.  We start with our Sunday dinner and a keynote speaker who is either the number one or number two partner within one of the Big Four firms.  We start off the conference by telling the participants that the profession wants them to be successful, and to prove it, we have a top industry leader deliver the message.  Our first speaker was James Turley, chairman and CEO of E&Y.  Last year we had the chairman of Deloitte.  This year we had Timothy Flynn, the chairman of KPMG. 

The next day, we begin exposing the participants to African American partners who talk about the profession and how to prepare for the CPA exam.  By the end of the week, you see individuals recommitted to their careers and to the profession.  They are energized, motivated and excited.  They recommit to becoming CPAs, to staying with their firms and to performing well.  It’s really exciting to see.

Hats off to you for inspiring that level of commitment and excitement.  Thank you for sharing your experience with us.

FR:

Thank you for talking with me.