Networking A Tool for Growth of SMPs

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Networking A Tool for Growth of SMPs

• Dr. Ashok HaldiaSecretary, ICA India

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Networking

• What is Networking?
• What form might it take?
• Why it is important to SMPs?
• Indian Experience.
• Lessons for member-bodies

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What is Networking?

• 1. Networking is an arrangement whereby two or
  more firms come together under common control,
  ownership or management, or otherwise for their
  professional interest
• 2. Networking is cooperative efforts of two or
  more firms to share knowledge, resources and
  expertise with or without pooling these for
  pursuing their professional interest on
  non-competing basis
• 3. Networking is meeting people who can be of
  help and being a help to them

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What is Networking? (Continued)

• 4. Networking is inter or intra exchange of
  services or information
• 5. Involve common professional and economic
  benefit
• 6. Formal agreement is not necessary
• 7. Referral Knowledge sharing not considered
  networking for regulation
• 8. Merger/amalgamation or consolidators are not
  network

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Networking in its Various Forms

• Associates
• Alliances
• Subcontracting
• Networking among networks
• Referral (Business links)
• Knowledge sharing Problem solving forums

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Why Networking?

• Increasing clients needs
• Internationalizing of market
• Opportunity available as second firms
• Problem solving and mentoring
• Knowledge sharing
• Reduction in cost of serving client

• Where size of firm matters
• Where specialization matters
• For becoming one stop shop
• For consolidation of practices

By
Connecting Leveraging
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Why Networking?

• Increasing clients needs
• Internationalizing of market
• Opportunity available as second firms
• Problem solving and mentoring
• Knowledge sharing
• Reduction in cost of serving client

• Where size of firm matters
• Where specialization matters
• For becoming one stop shop
• For consolidation of practices

By
Connecting Leveraging
Help becoming large While remaining small
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Indian Experience

• Conventionally, organised and structured as small
• SMPs faced with changing market needs and client
  expectations - Globalization and emerging
  opportunity
• Pressure is to expand, diversify and extend
  geographical reach
• Challenge before ICAI is to help them overcome
  limitations of size Capacity Building

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Indian Experience - 2

• ICAI measures to promote networking
• Enabling regulatory framework
• Creating awareness on elements of successful
  networking
• Continuing professional education (Study Circle
  and Chapters, Seminars,Conferences,
  Publications)
• Facilitating web enabled networking
• Catalytic role for international networking

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Indian Experience - 3

• Recent Trends
• Increased networking market-led
• Momentum for formal networking yet to pick up
  Threats to networking
• Successful networking leads to merger/partnership
• Has helped focus on quality assurance
• Use of internet for problem solving/knowledge
  sharing

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Threats to Networking

• Organizational and leadership skills
• Relationship issues
• Regulatory aspects of networking
• Cost of managing network
• Maintaining quality standards

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Role of Accounting Bodies

• Promote the concept
• Evolve a practical framework
• Publicize success stories
• Dont over regulate

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Thank You
ICAI
ashokhaldia_at_icai.org