Learning Culture in a CPA Firm

It has often been said that formal learning is 30% of what we learn and informal learning is 70%.

We are all familiar with the process of formal CPA training. From the university level, where we are educated in the classical manner of lectures, assignments, reports and a graded evaluation to the continuing education series we are required to obtain. Where we obtained our degree is often the hallmark when we begin our careers in public accounting. The industry places a prestigious emphasis on obtaining a CPA designation that demonstrated competence by passing a rigorous exam. Formal education is characterized by assessment of learning outcomes. And all that accounts for 30% of what we know in this knowledge business!

Informal learning is a haphazard concoction of life experiences, on the job training, coaching, self discovery, and mentoring relationships (just to name a few). They are often unplanned, seldom have stated goals and objectives, most likely have little evaluation of outcomes and possibly with the exception of mentoring relationships rarely train the "teacher" of the informal learning experience.

For a moment put yourself in the shoes of a new accounting intern, who just came from a formal learning environment where maybe 80% of learning is formal and 20% is informal. Then ZAP ZING ZONG !!! you are transported to a learning environment where formal learning is 30% . What's the first thing you are going to think? Most likely that you are not learning as much. A withdrawal from taking tests and getting feedback on what you learned immediately takes place in the intern to 1st year. In most situations the accountant is not aware of the informal learning that is taking place.

Now let's take a look at the firm learning objectives. Most CPE plans are done to achieve the requirements of AICPA, State Licensing, Quality requirement of an industry (such as government audits) and lastly, firm strategy to develop people in the ever expanding breath of service needs to grow a successful firm. If you take a good look at the CPE plan chances are it only addresses the 30% of formal learning. Some firms can add another 10% for having written mentoring plans. So how do we know that the balance of 60-70% of the learning objectives are in alignment with firm strategies?

In my opinion, and that's what a blog is for, there are methods to better plan the informal learning goals and objectives to achieve a learning culture that is one of the keys to a firms success. The first method involve practice based inquiry. According to Johnson and Pratt(2005) for the type of intellectual or cognitive learning to take place in an informal learning the "teachers must expressly articulate their thinking to learners in order to make it visible to them and the learner must also make visible their thinking." On the job training, situational learning, life experiences, and self discovery are all forms of apprenticeship of intellectual cognitive thinking skills. By exercising practice based inquiry at or near the conclusion of an audit the informal learning becomes solidified and recognized in the mind of the learner. Once this visibility is achieved the learner can then apply the knowledge to ever increasing complex intellectual questions and increasingly complex thinking.

Here's a sample of some of the practice based inquiry I use at the end of an audit:

• INDUSTRY- How did you come to understand the industry sector of the recent audit? By hearing? By reading? By experience in the audit? By discussion with client employees? Did you do any self inquiry (such as google)?
• LEVERAGE OF TECHNOLOGY- How was learning accomplished in terms of the new technology? By training sessions? By experience learning? By trail and error? By sharing with co workers?
• RESOURCES- Did having a whiteboard listing the assigned and unassigned areas of the audit help you manage your time? Feel a sense of accomplishment? Did it help you experience the project management tools at work? Did you make use of knowledge based tools during the audit? Did you make any self inquiry or refer to textbooks, CPA review either physically or by recall?
• RISK ASSESSMENT- How did your experience enhance your understanding of audit risk? How did you feel about materiality?
• COMMUNICATION- What opportunities did you encounter? To write? To listen? To communicate?
• PROBLEM SOLVING- Where there any instances in any context in the recent audit?

Keep in mind when asking questions and listening to answers that the intellectual apprenticeship is to "involve you within" rather than "tell you about". The steps are to Model the skill, provide scaffolding support to encourage self discovery, coach with hints and feedback, and finally self directed learning by generalizing the intellectual knowledge and apply it to other situations.

The questions are aligned with the AICPA educational core competencies that were developed for the formal university educational goals. The alignment helps the new accountant transition from the goals and objectives in the formal systems to work life experiential learning. Making visible the 70% informal learning provides sense of accomplishment and clarity of purpose.

----Terri, 8/11/2010

Johnson J. and Pratt, D. (2005) The apprenticeship perspective: modeling ways of being. Ed. Five perspectives on teaching in adult and higher education. Kreiger: Malabar FL.