From Traditional Accountant to Management Consultant Presented by Marc R Bruce , CEO True North Group Sdn Bhd
Agenda <ul><li>Some background … perspective </li></ul><ul><li>Global trends in the accounting profession </li></ul><ul><l...
a time to reflect ... <ul><li>It’s about expanding your skills… </li></ul><ul><li>It’s about creating new career opportuni...
<ul><li>Hollywood movies are threatening to turn accounting into a 2 nd  class profession according to an academic study. ...
Video 1 Video 2 Video 3
Global Trends in the Accounting Profession from traditional accountant …
for accountants’ in business & industry … <ul><li>According to a  Global Best Practices Survey , the majority of finance e...
<ul><li>…  and in the profession … </li></ul><ul><li>a UK Study commissioned for a Business School as to why clients leave...
Has the balance tilted too far? The Accountant Compliance Strategic
the world needs you … <ul><li>A survey conducted by Price & Associates in the USA  (Sept. 2000)  found that less than 10% ...
<ul><li>Globally, Dun & Bradstreet estimate that 82% of businesses go under by their 10 th  anniversary, and over 95% of p...
<ul><li>AICPA Vision Project   (www.cpavision.org) </li></ul><ul><li>Around 3,400 CPA members devoted 21,456 hours to iden...
<ul><li>Vision Statement </li></ul><ul><li>CPA’s are the trusted professionals who enable people and organisations to shap...
<ul><li>Core Services </li></ul><ul><li>Assurance  – services that provide quality information for  decision making </li><...
<ul><li>Growth by Segment </li></ul><ul><li>  Past     Decade </li></ul><ul><li>Accounting & Audit   2% </li></ul><ul><li>...
The Accountant of the Future from traditional accountant …
the  accountant  of the future … <ul><li>Today, CFO’s are superb managers who, on top of strong financial and deal-making ...
Creating a Business Consulting firm from traditional accountant …
What is Business Consulting? <ul><li>Helping business owners   grow   and   manage   their businesses more   effectively ,...
The Malaysian Market <ul><li>Malaysia has a population of 26 million with 17,000 qualified accountants. There are 2,000 au...
Organisation Chart Systems Planning Training
The 4 Consulting Pillars Analysis &  Planning Systems & BPM Performance Measures Marketing   e-Commerce # 1 # 2 # 3 # 4
Consulting services offered … some examples <ul><li>First step … Strategic Planning </li></ul><ul><li>Then implementation ...
Leverage Effect  on Profitability at the Client Level  20,000 3,000 3,000 $ 30,000 7,000 1,000 500 $ 10,000 $1,500 Total I...
The Focus Partnership Business Development Advisors Providing tailored strategies, systems and training designed to unlock...
Practical Tips to Getting Started   <ul><li>“ Begin with the end in mind”. Clearly define your career direction. Prepare a...
Lead Generation Strategies <ul><li>Referrals </li></ul><ul><li>Strategic Alliances </li></ul><ul><li>Networking </li></ul>...
Strategic Planning from traditional accountant …
The Strategic Planning Process WHERE NOW HOW
Components of a Strategic Plan <ul><li>Analysis, benchmarking </li></ul><ul><li>Vision, Values, Purpose, Mission </li></ul...
Case Study from traditional accountant …
Malaysian Steel Fabrication & Furniture business <ul><li>Father and eldest daughter attended one of our seminar’s at the P...
Malaysian Steel Fabrication & Furniture business <ul><li>Created a Strategic Plan which took 3 months to develop – round t...
Contact details Email:  [email_address] Ph.  (03) 5121 3187
THANK  YOU   for your time today … any questions? Start making a difference!
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From Traditional Accountant to Management Consultant

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From Traditional Accountant to Management Consultant

  1. 1. From Traditional Accountant to Management Consultant Presented by Marc R Bruce , CEO True North Group Sdn Bhd
  2. 2. Agenda <ul><li>Some background … perspective </li></ul><ul><li>Global trends in the accounting profession </li></ul><ul><li>The Accountant of the Future … defined </li></ul><ul><li>Creating a Business Consulting firm </li></ul><ul><li>Strategic Planning </li></ul><ul><li>Case Study </li></ul><ul><li>Question time </li></ul>
  3. 3. a time to reflect ... <ul><li>It’s about expanding your skills… </li></ul><ul><li>It’s about creating new career opportunities … </li></ul><ul><li>It’s about adding value to your existing role … </li></ul><ul><li>It’s about helping other people … </li></ul><ul><li>It’s about you. </li></ul>
  4. 4. <ul><li>Hollywood movies are threatening to turn accounting into a 2 nd class profession according to an academic study. (Uni of Sth Australia) </li></ul><ul><li>Modern accountants are portrayed as “dowdy”, nerdish, anti-social and incompetent. </li></ul><ul><li>The lawyer as hero is common place: LA Law, Ally McBeal, The Practice … </li></ul><ul><li>For accountants, we have (bar propping) Norm Peterson from Cheers and Ernie Niles in Twin Peaks: “I can’t do that, I’m a coward, I’m a CPA” </li></ul><ul><li>If these perceptions are not changed there is a danger the best and brightest students will join other professions, they say. </li></ul><ul><li>The authors argue the profession must try to change public perceptions. </li></ul><ul><li>But, without action, there will be no heroes and accounting runs the risk of becoming regarded as a second class profession, they conclude. </li></ul><ul><li>Sunday Telegraph - Sydney </li></ul>The bean counters fight back
  5. 5. Video 1 Video 2 Video 3
  6. 6. Global Trends in the Accounting Profession from traditional accountant …
  7. 7. for accountants’ in business & industry … <ul><li>According to a Global Best Practices Survey , the majority of finance executives still spend most of their time directing and coordinating general accounting transactions, initiating and maintaining internal controls, preparing management reports and managing accounting employees </li></ul><ul><li>Despite compliance pressures (preparing statutory accounts) the principal role of the CFO remains improving organisational strategic and commercial performance. </li></ul>
  8. 8. <ul><li>… and in the profession … </li></ul><ul><li>a UK Study commissioned for a Business School as to why clients leave their auditor/accountant: </li></ul><ul><ul><ul><li>Reason # 1 - Not having a real understanding of the Client’s business – what makes the business tick? </li></ul></ul></ul><ul><ul><ul><li>Reason # 2 – Availability … returning phone calls and handling urgent matters </li></ul></ul></ul><ul><ul><ul><li>Reason # 6 – (and the bottom on the list!!) Price </li></ul></ul></ul>
  9. 9. Has the balance tilted too far? The Accountant Compliance Strategic
  10. 10. the world needs you … <ul><li>A survey conducted by Price & Associates in the USA (Sept. 2000) found that less than 10% of High Net Worth Individuals and Small Business owners currently obtain financial products and other services from their accountants, however , the majority would turn to their accountant for these services, if they could </li></ul><ul><li>The survey also found that clients who sourced such services from their accountants, were highly satisfied </li></ul><ul><li>Globally, over 2,265 new businesses are started every day! They need help </li></ul>
  11. 11. <ul><li>Globally, Dun & Bradstreet estimate that 82% of businesses go under by their 10 th anniversary, and over 95% of products fail. Every time a new venture starts, nearly 4 fail </li></ul><ul><li>A study conducted by Ohio University of 356 companies over 19 years found that 50% of all business decisions failed. Nearly 2/3 of executives never explore alternatives prior to making a decision, instead using manipulation, persuasion and heavy handedness. Only 7% considered long-term priorities or conferred with colleagues </li></ul><ul><li>Astonishingly, 91% of business people have confidence in their ability to make decisions </li></ul><ul><li>A NY University study found that over 65% of M & A’s have been failures resulting in negative shareholder value </li></ul>the world needs you …
  12. 12. <ul><li>AICPA Vision Project (www.cpavision.org) </li></ul><ul><li>Around 3,400 CPA members devoted 21,456 hours to identify both challenges and opportunities for the Profession in 2011 </li></ul><ul><li>Core Purpose (the accountant’s reason for being) </li></ul><ul><li>… making sense of a changing and complex world </li></ul>
  13. 13. <ul><li>Vision Statement </li></ul><ul><li>CPA’s are the trusted professionals who enable people and organisations to shape their future. Combining insight with integrity, CPA’s deliver value by: </li></ul><ul><ul><ul><li>Communicating with clarity and objectivity </li></ul></ul></ul><ul><ul><ul><li>Translating complex information into critical knowledge </li></ul></ul></ul><ul><ul><ul><li>Anticipating and creating opportunities; and </li></ul></ul></ul><ul><ul><ul><li>Designing pathways that transform vision into reality </li></ul></ul></ul>
  14. 14. <ul><li>Core Services </li></ul><ul><li>Assurance – services that provide quality information for decision making </li></ul><ul><li>Technology – improve decision making and knowledge management </li></ul><ul><li>Management Consulting – advice and insight on the financial and non-financial performance of an organisation – operationally and strategically </li></ul><ul><li>Financial Planning – wealth management & planning </li></ul><ul><li>International Services – in response to globalisation </li></ul>
  15. 15. <ul><li>Growth by Segment </li></ul><ul><li> Past Decade </li></ul><ul><li>Accounting & Audit 2% </li></ul><ul><li>Taxation 6% </li></ul><ul><li>Financial Services 38% </li></ul><ul><li>Business Improvement 27% </li></ul> Next Decade 0% -2% 30% 30%
  16. 16. The Accountant of the Future from traditional accountant …
  17. 17. the accountant of the future … <ul><li>Today, CFO’s are superb managers who, on top of strong financial and deal-making skills, boast a grasp of operations and a keen sense of strategy </li></ul><ul><li>Instead of simply measuring value, today’s CFO’s create it </li></ul><ul><li>The CFO must be a ‘navigator’ of the business, not just a custodian. They must help the CEO anticipate the icebergs ahead </li></ul><ul><li>The scope of work can be broad and includes determining strategy and business plans, reducing costs, negotiating sales contracts and approving human resources policies </li></ul>
  18. 18. Creating a Business Consulting firm from traditional accountant …
  19. 19. What is Business Consulting? <ul><li>Helping business owners grow and manage their businesses more effectively , while improving quality of life. </li></ul><ul><li>Making a difference for your Client, and all of their stakeholders. </li></ul>
  20. 20. The Malaysian Market <ul><li>Malaysia has a population of 26 million with 17,000 qualified accountants. There are 2,000 auditors, from 1,500 firms. Relatively small numbers causing distortions </li></ul><ul><li>Malaysia has 638,242 registered companies and 2,696,503 other businesses: </li></ul><ul><ul><ul><li>0 – 4 employees 80% </li></ul></ul></ul><ul><ul><ul><li>5 – 19 employees 15% </li></ul></ul></ul><ul><ul><ul><li>20 – 99 employees 4% </li></ul></ul></ul><ul><ul><ul><li>100+ employees < 1% </li></ul></ul></ul><ul><li>It’s only a matter of time before major structural change occurs in Malaysia to allow SME’s to compete </li></ul><ul><li>Conclusion? The market is huge, and there is capacity for many players to deliver consulting </li></ul>
  21. 21. Organisation Chart Systems Planning Training
  22. 22. The 4 Consulting Pillars Analysis & Planning Systems & BPM Performance Measures Marketing e-Commerce # 1 # 2 # 3 # 4
  23. 23. Consulting services offered … some examples <ul><li>First step … Strategic Planning </li></ul><ul><li>Then implementation of the Plan, such as: </li></ul><ul><li>Sharing the vision and culture with senior management … finding “north” for the business </li></ul><ul><li>Interview of employees for their input </li></ul><ul><li>Survey customers & clients </li></ul><ul><li>Create a Marketing Plan </li></ul><ul><li>Designing performance incentives and remuneration policies for managers and sales staff </li></ul><ul><li>Develop the Organisation Chart … roles and responsibilities. Teach management how to “manage” </li></ul><ul><li>Designing and creating operational systems </li></ul><ul><li>Improve financial management reporting & procedures </li></ul>
  24. 24. Leverage Effect on Profitability at the Client Level 20,000 3,000 3,000 $ 30,000 7,000 1,000 500 $ 10,000 $1,500 Total IT Consulting Financial Services Business Consulting $ 4,000 Compliance - audit Net Profit Gross Revenue Type of Service
  25. 25. The Focus Partnership Business Development Advisors Providing tailored strategies, systems and training designed to unlock the true potential of your business. Easitax Tax Advisors to PAYE individuals Providing PAYE individuals with access to competent taxation and financial advice. Ascent Financial Strategies Financial Planners & Advisors Strategies for creating and increasing wealth, to provide peace of mind and quality of life. The Bruce Partnership Chartered Accountants A proactive and unique firm, focused on developing close relationships to meet business and personal objectives.
  26. 26. Practical Tips to Getting Started <ul><li>“ Begin with the end in mind”. Clearly define your career direction. Prepare a personal plan and set some goals. Aim to achieve balance </li></ul><ul><li>Decide on the skills, tools and resources required e.g. marketing, strategic planning, KPI’s, leadership, HRM, an MBA course, software </li></ul><ul><li>Select the type of consulting work you’ll perform </li></ul><ul><li>Target the size of business, and industry </li></ul><ul><li>Learn to sell. There are many consultants who cannot find work. Its about generating leads and converting those leads to work </li></ul>
  27. 27. Lead Generation Strategies <ul><li>Referrals </li></ul><ul><li>Strategic Alliances </li></ul><ul><li>Networking </li></ul><ul><li>Seminars </li></ul><ul><li>Direct Marketing (Mail/Phone/Fax) </li></ul>
  28. 28. Strategic Planning from traditional accountant …
  29. 29. The Strategic Planning Process WHERE NOW HOW
  30. 30. Components of a Strategic Plan <ul><li>Analysis, benchmarking </li></ul><ul><li>Vision, Values, Purpose, Mission </li></ul><ul><li>Corporate goals & objectives </li></ul><ul><li>SWOT </li></ul><ul><li>Competitive advantage </li></ul><ul><li>Client/Customer selection </li></ul><ul><li>Strategy Development </li></ul><ul><ul><ul><li>Marketing strategies </li></ul></ul></ul><ul><ul><ul><li>Operational strategies </li></ul></ul></ul><ul><ul><ul><li>Human resources </li></ul></ul></ul><ul><ul><ul><li>Finance </li></ul></ul></ul><ul><ul><ul><li>Innovation and continuous improvement </li></ul></ul></ul><ul><li>Key performance indicators (KPI’s) </li></ul>
  31. 31. Case Study from traditional accountant …
  32. 32. Malaysian Steel Fabrication & Furniture business <ul><li>Father and eldest daughter attended one of our seminar’s at the PJ Hilton </li></ul><ul><li>Revenue was >RM12m, but had dropped nearly by 30%. Over 100+ staff and contractors </li></ul><ul><li>Chinese family business started by father in 1960, now run by the father and the 4 children – model not working </li></ul><ul><li>Mfg located in Johor, with sales offices in KL and JB </li></ul><ul><li>Family under extreme financial pressure and being torn apart. One son had decided to set up a business of his own “on the side”. Father suicidal. Pathetic communication </li></ul><ul><li>Sales decreasing, margins shrinking, quality control problems, bad debts, excessive stock on hand, intense competition, high staff turnover, high gearing, trading losses for 3 years verging on bankruptcy </li></ul><ul><li>Succession planning not working … father’s poor health </li></ul>Background
  33. 33. Malaysian Steel Fabrication & Furniture business <ul><li>Created a Strategic Plan which took 3 months to develop – round table discussions with all directors/family members </li></ul><ul><li>Immediately implemented cashflow improvement strategies … credit control, stock management, increased bank funding </li></ul><ul><li>Designed new Organisation Chart … roles and responsibilities. Appointed MD and explained functions. Shifted from “family” model to “corporate” model </li></ul><ul><li>Set revenue targets by division, and appointed Divisional Heads with clear responsibilities. BHAG RM20m in 2006! Double sales </li></ul><ul><li>Developed a sales and marketing plan to achieve revenue targets. First 2 months of Plan is working, and on track. </li></ul><ul><li>Introduced regular Board meetings - communication </li></ul><ul><li>Improved financial management and reporting … developed KPI’s </li></ul><ul><li>Father agreed to stop interfering, and let his children/directors do their job </li></ul>Results
  34. 34. Contact details Email: [email_address] Ph. (03) 5121 3187
  35. 35. THANK YOU for your time today … any questions? Start making a difference!
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