Ron Baker, author of Pricing on Purpose: Creating and Capturing Value (707-769-0965) says that the most recent creative service by the accounting profession was SSARS in 1978. Every other apparent innovation was actually an adoption of services offered by other professions, e.g., consulting and financial services.

A recent conference, at which Baker spoke, featured a repetition of age old subjects—recruitment and retention of people, chargeable hours, productivity, etc. Speakers offered the same old solutions—increase chargeable hours, increase leverage, achieve higher productivity, etc. What was missing, he says, was consideration of the "new realities of a knowledge organization."

Throughout history, major innovations have been created by young people—under 30 for the most part. Yet, in the accounting profession 62 percent of the AICPA members are over 40 and 60 percent of accounting firms have partners between 55 and 62.

If firms and the profession are to be innovative, they should delegate more responsibility and authority to the younger people in accounting firms. They will take more risks and make more mistakes. The trade-off is more value to clients of accounting firms.

From Partner Advantage Advisory, April 2006, p 1, Hudson Sawyer Professional Services Marketing Inc. www.hudsonsawyer.com . Subscription $279 per year; single issues?$25. Orders 800-945-6462.