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Building the High Performance CPA Firm        How to get a bigger BOUNCE!         Tom Hood, CPA, CITP, CGMA               ...
Download	  today’s	  slides	  at	  …	  www.SlideShare.net/thoodcpa	  
app.gosoapbox.com	         CCH2012
Respond to a Poll	    Ask a Question	Vote up a Question
What’s your biggest challenge?	Operating as a shared vision firm versus as a shared services firm.	         		Operating as a...
The new normal is anything but…
MANAGING	  THE	  SEA	  CHANGE	  •  Change	  •  Complexity	  •  Compliance	  •  Convergence	  •  Compe33on	  
Changes in the Profession55 Firms in T100 Mega-mergersCounter trends?www.bizlearning.net	  
What is   your biggestchallenge?
AICPA Major Firms Groupwww.bizlearning.net	  
Top Ten Issues for MFG1.  Regulatory/Legislative (56)2.  Private Company Leadership (47)3.  Capital Markets Awareness / Re...
2011 AICPS PCPS MAP Issueswww.bizlearning.net	        18
The Three Barriers to Growth1.  Need for Executive Team to grow in    their abilities to delegate & predict    (connect & ...
What does a highperformance firm    look like?
A tale of two firms                          •  One founded in                             1921                          •...
A tale of two more firms…www.bizlearning.net	  
And two more…www.bizlearning.net	  
CCH	  Future	  Ready	  Research	  -­‐	  2011	  Being Future Ready Relies On:                                              ...
CCH	  Future	  Ready	  Research	  -­‐	  2011	  Future Ready Firm•  Staffing & Firm Culture•  Workflows & Processes•  Tools...
What sets youapart? How are you different?
The Guru on Firms“Those people talk about having a strategywith a longer-term view, but the operationalreality is vastly d...
ROI = ROPROP = ROA x ROC x ROL
Return on InvestmentCri;cal	  Areas	                   Investment	                          Return	  People	              ...
The 5 questions you must answer• Who are we & why do we  exist?• Where are we going?• How are we going to get there?• How ...
Lessons from the Built to Last:1.  Clock Building, Not Time Telling2.  Embrace the Genius of “AND”3.  Preserve the Core & ...
High	  Performance	  Organiza3ons	  –	  Strategic	  &	  Systema3c	                         Why                            ...
Start with why?People don’tbuy whatyou do, theybuy why youdo it! www.bizlearning.net	  
Lessons from Steve JobsSteve	  Jobs	  returns	  to	  Apple	  aSer	  being	  away	  for	  13	  years	  on	  Jan	  8,	  1999...
Sinek’s Golden Circle       Conven3onal	      Remarkable	  www.bizlearning.net	  
Strategy as Process:Our i2a Frameworkwww.bizlearning.net	  
Turn the Flywheel with Alignment                                “Alignment is a mode of belonging                         ...
Why executives should care about    Employee EngagementGallup studies proved that corporations with higherengagement level...
Example of Strategic Plan on a PageProduced	  for	  AICPA	   www.bizlearning.net	  
Example of Strategic Plan on a Pagewww.bizlearning.net	  
Strategic Thinking – not episodic strategic planningWhat happens whenthings are changing        fast? www.bizlearning.net	  
The Cameron Paradox                                                                   The	  faster	  things	              ...
What CPAs think about the future	                                                      30 Future Forums	                  ...
Use your scouts
i2a Process Map for Accelerated Strategic Growth What do                                                                De...
Feedback From a Session250 partners of a top 15 firmwww.bizlearning.net	  
Can you pivot?                               Pivot =                               A Change                               ...
Training as a Competitive EdgeIn a world of unrelenting change, about the onlysustainable advantage is learning. Competito...
Find your Edge    In a period of rapid  change and increasing complexity, the winnersare going to be the peoplewho can lea...
Superior Talent Generates           Results" & Superior Learning Strategy  Generates Superior Talentü  26% higher revenue...
What today’s workers want•  Engage	  your	  top	  performers	  •  Coach	  tomorrow’s	  leaders	  •  Manage	  your	  Millen...
Benefits to   organizationsTraining and development is the most highly valued employee benefit. The number choosing training...
h[p://cpa.tc/bounce	  www.bizlearning.net	  
Customized to meet yourfirm Competencies andaligned with your strategy	                                www.macpa.org
Training aligned to strategy creates employee    engagementGallup studies proved that corporations with higherengagement l...
How do you tip the odds in your favor?Strategy as Processusing a simple framework thatcan be repeatedAnd cascadedthroughou...
Cascading Alignment throughout theorganization creates CommitmentCascading by understandingthe top level goalsand linking ...
The Opportunity – Be the House•  15 X – ROI on Strategy as Process &   Alignment (Jim Collins – Built to Last)•  8 X – Eng...
What can you do to boost your odds?                                             Tipping	  point	                          ...
Where do you start?•  Identifying & Correcting Misalignments  •  If this is our purpose and values and these are     our s...
Where do you start?• Build on Strengths• Seek High Leverage  Opportunities• Involve your whole firm• Leverage Technology  ...
It is more important to have your team:•  Thinking strategically than having a strategic plan.•  Understanding the directi...
•  When it comes to retention, employees   are telling us that leadership matters:•  A workforce is far more engaged and  ...
Setting context & defining reality                                                  The	  four	  most	                  imp...
We often attribute success, or lack thereof, to inanimateobjects like systems, processes, infrastructure, and strategicpla...
Tom	  Hood,	  CPA.CITP	                        CEO	    Maryland	  Associa;on	  of	  CPAs	     Business	  Learning	  Ins;tu...
                                                          	                                                           	   ...
High Performance CPA Firms - CCHUC12
High Performance CPA Firms - CCHUC12
High Performance CPA Firms - CCHUC12
High Performance CPA Firms - CCHUC12
High Performance CPA Firms - CCHUC12
High Performance CPA Firms - CCHUC12
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High Performance CPA Firms - CCHUC12

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The real danger is not in failure but mediocrity. What separates the best firms from the average firms? What are the critical success factors used in the largest CPA firms that can make even the small firm thrive in this chaotic environment? You will learn about the five R's ROA (return on attention), ROL (learning), ROC (culture) and ROI, ROP (Return on People) and how you can apply them to your firm.

This is preso on High Performance CPA Firms presented on Nov 5 & 6, 2012 at the CCH User Conference

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Transcript of "High Performance CPA Firms - CCHUC12"

  1. 1. Building the High Performance CPA Firm How to get a bigger BOUNCE! Tom Hood, CPA, CITP, CGMA CEO MACPA Business Learning Institute
  2. 2. Download  today’s  slides  at  …  www.SlideShare.net/thoodcpa  
  3. 3. app.gosoapbox.com CCH2012
  4. 4. Respond to a Poll Ask a Question Vote up a Question
  5. 5. What’s your biggest challenge? Operating as a shared vision firm versus as a shared services firm. Operating as a one-firm mentality. Most just do not get get it! Getting everyone on the same page. We are in a mature market so the biggest challenge is continuing to grow in this market and expanding into complimentarymarkets Staffing, net billing per charge hour Finding and hiring top talent Growing top line revenue. Finding and keeping young talent. Motivating staff Achieving a unified strategy among the partner group. Pricing Maintaining a work/life balance. getting all on the same page We have several partners. We all agree on a vision for our firm, we just cant agree on how to get there. We cant seem to jumpstart the process. Effiency teaching staff analytical thinking Identification and Development of the next generation of leaders Moving from a silo practice to one firm mentality. Upcoming partner retirements, some greed by old group on buy out, some lack of commitment by the new group. Too much selfinterest, not enough "best interests of the company" thinking. Growth So if you dont have the commitment from the owner group to spend the time (retirement etc). Do you just blow the wholething up before wasting your own valuable time ? Growth, expanding niches Finding and keeping young talent that are eager to advance within the company Finding time to be strategic. Too much time working in the business and not on the business. Qualified staff Senior/founding partner is retiring in a year. Challenge to keep his client base in firm Significant amount of growth and the decision makers were good at running a small to medium firm. However we are moving tobecome a large firm, and they dont know how to operate as such. Making a plan. Not having our work product look like a commodity. All of the above Changing partner behavior to align with strategy 
  6. 6. The new normal is anything but…
  7. 7. MANAGING  THE  SEA  CHANGE  •  Change  •  Complexity  •  Compliance  •  Convergence  •  Compe33on  
  8. 8. Changes in the Profession55 Firms in T100 Mega-mergersCounter trends?www.bizlearning.net  
  9. 9. What is your biggestchallenge?
  10. 10. AICPA Major Firms Groupwww.bizlearning.net  
  11. 11. Top Ten Issues for MFG1.  Regulatory/Legislative (56)2.  Private Company Leadership (47)3.  Capital Markets Awareness / Recognition (34)4.  Rethinking Business Model (25)5.  Protect Audit/CPA Franchise (20)6.  Risk Management (Audit efficiencies) (20)7.  Leadership Development / Succession Planning (19)8.  Global / International (Clients / IFRS / Branding) (17)9.  Leveraging Technology & Social Media (17) 17
  12. 12. 2011 AICPS PCPS MAP Issueswww.bizlearning.net   18
  13. 13. The Three Barriers to Growth1.  Need for Executive Team to grow in their abilities to delegate & predict (connect & collaborate)2.  Need for systems and structures to handle complexity that comes with growth3.  Need to navigate the increasingly tricky market dynamics of a larger, rapidly changing marketplace Source: Verne Harnish - Author of Mastering the Rockefeller Habits
  14. 14. What does a highperformance firm look like?
  15. 15. A tale of two firms •  One founded in 1921 •  One founded in 1977 •  One has 967 staff & $202 million in Revenue •  One is Top 20 and the other is no longer in existencewww.bizlearning.net  
  16. 16. A tale of two more firms…www.bizlearning.net  
  17. 17. And two more…www.bizlearning.net  
  18. 18. CCH  Future  Ready  Research  -­‐  2011  Being Future Ready Relies On: The image cannot be displayed. Your computer may not have enough memory to open the image, or the image may have been corrupted. Restart your computer, and then open the file again. If the red x still appears, you may have to delete the image and then insert it again. Foundation of best practices AndProcesses, business management, people and solutions that are adaptive to change
  19. 19. CCH  Future  Ready  Research  -­‐  2011  Future Ready Firm•  Staffing & Firm Culture•  Workflows & Processes•  Tools & Technology•  Practice Management & Analytics
  20. 20. What sets youapart? How are you different?
  21. 21. The Guru on Firms“Those people talk about having a strategywith a longer-term view, but the operationalreality is vastly different. They want themoney right now. In practice, cash iseverything…Whats missing are whole firms that arebuilt on discipline and strategy.” David Maister - FastCompany  
  22. 22. ROI = ROPROP = ROA x ROC x ROL
  23. 23. Return on InvestmentCri;cal  Areas   Investment   Return  People   2%   20%  Processes   2%   15%    Organiza3on  Structure   2%   10%  Culture   1%   20%  Leadership   1%   10%  Informa3on   10%   15%  Technology   82%   10%   Source:  Informa3on  Masters  –  Secrets  of  the  Customer  Race  by  John  McKean  www.bizlearning.net  
  24. 24. The 5 questions you must answer• Who are we & why do we exist?• Where are we going?• How are we going to get there?• How is our progress?• What happens when things change? www.bizlearning.net  
  25. 25. Lessons from the Built to Last:1.  Clock Building, Not Time Telling2.  Embrace the Genius of “AND”3.  Preserve the Core & Stimulate Progress4.  Seek consistent alignmentSource: Built to Last – Jerry Porras & Jim Collins
  26. 26. High  Performance  Organiza3ons  –  Strategic  &  Systema3c   Why Reassess Why we do & Renew what we do. Purpose & Critical What did we learn? How is the world changing? Values Turning Point The Where are Bounce Link & we going Leverage Our envisioned future. How are our day to What do we want to be, day activities do, create, experience, connected to our and have? purpose & strategy How are we going to get there Our strategic Initiatives and prioritiesCopyright 2012 – Business Learning Institute
  27. 27. Start with why?People don’tbuy whatyou do, theybuy why youdo it! www.bizlearning.net  
  28. 28. Lessons from Steve JobsSteve  Jobs  returns  to  Apple  aSer  being  away  for  13  years  on  Jan  8,  1999,  $1  billion  in  red.   www.bizlearning.net  
  29. 29. Sinek’s Golden Circle Conven3onal   Remarkable  www.bizlearning.net  
  30. 30. Strategy as Process:Our i2a Frameworkwww.bizlearning.net  
  31. 31. Turn the Flywheel with Alignment “Alignment is a mode of belonging that is not confined to mutual engagement. The process of alignment bridges time & space to form broader enterprises so that participants become connected through the coordination of theirAlignment focuses on the energies, actions, and practices. future and builds trust.Alignment is about getting Through alignment, we become part their discretionary effort. of something big because we do what it takes to play our part." - Etienne Wenger Communities of Practice www.bizlearning.net  
  32. 32. Why executives should care about Employee EngagementGallup studies proved that corporations with higherengagement levels generated:•  27% higher profits•  50% higher sales•  50% higher customer loyalty•  38% above average productivity“Employee Engagement is an outcome-based concept.It is the term which is used to describe the degree to whichemployees can be ascribed as aligned and committed to theirorganization such that they are at the most productive.” -The International School of Human Capital Management www.bizlearning.net  
  33. 33. Example of Strategic Plan on a PageProduced  for  AICPA   www.bizlearning.net  
  34. 34. Example of Strategic Plan on a Pagewww.bizlearning.net  
  35. 35. Strategic Thinking – not episodic strategic planningWhat happens whenthings are changing fast? www.bizlearning.net  
  36. 36. The Cameron Paradox The  faster  things   change,  the   more  important   it  is  to  look  Kim  Cameron  -­‐  Associate  Dean,  Execu9ve  Educa9on,  the  Ross  School  at  University  of  Michigan   ahead.   www.bizlearning.net  
  37. 37. What CPAs think about the future 30 Future Forums 1,000 CPAs Identified these top trends http://www.bizlearning.net/live/i2afutureforums
  38. 38. Use your scouts
  39. 39. i2a Process Map for Accelerated Strategic Growth What do Develop So what? Imagine the Share with I know? Firm-wide possibilities Seek the insight past the others and Find the edges of Strategieswhat you know and expand them. obvious. and create your desired future. Inspire to action FIRM LEVEL OFFICE & INDUSTRY/SERVICE GROUP LEVEL INSURE YOUR STRATEGIC CHOICES AND DIRECTION BY EC = Executive Committee COLLECTIVELY CONSIDERING OMP = Office Managing Partners YOUR PAST, PRESENT GL – Group Leaders PTR = All Partners AND FUTURE CONTEXTS MGR = Managers S&A = Staff and Admin ANNUALLY. IMPLEMENTATION OF STRATEGIC PLAN www.bizlearning.net  
  40. 40. Feedback From a Session250 partners of a top 15 firmwww.bizlearning.net  
  41. 41. Can you pivot? Pivot = A Change in STRATEGY without a change in VISION Eric  Ries  –  author  of  the  Lean  Startup  www.bizlearning.net  
  42. 42. Training as a Competitive EdgeIn a world of unrelenting change, about the onlysustainable advantage is learning. Competitors can copyyour products, duplicate your technology, and replicateyour processes, but as long as your organization islearning faster than theirs, you will always remain ahead.” David Garvin – Harvard Professor
  43. 43. Find your Edge In a period of rapid change and increasing complexity, the winnersare going to be the peoplewho can learn faster than the rate of change and faster than your competition. -  Tom Hood, CPA, CITP,CGMACEO of the MACPA & the Business Learning Institute 49
  44. 44. Superior Talent Generates Results" & Superior Learning Strategy Generates Superior Talentü  26% higher revenue per employeeü  40% lower turnover among high performers and 17% overallü  29% higher level of engagement ü  36% higher readiness in leadership and management 50 ROP = Return on People
  45. 45. What today’s workers want•  Engage  your  top  performers  •  Coach  tomorrow’s  leaders  •  Manage  your  Millennials   Think AMP •  Autonomy •  Mastery •  Purpose
  46. 46. Benefits to organizationsTraining and development is the most highly valued employee benefit. The number choosing training and PWC Report - Managing tomorrows development as their people: Millennials at work: Perspectives from a new generation first choice of benefit is three times higher than those who chose cash bonuses. 52
  47. 47. h[p://cpa.tc/bounce  www.bizlearning.net  
  48. 48. Customized to meet yourfirm Competencies andaligned with your strategy www.macpa.org
  49. 49. Training aligned to strategy creates employee engagementGallup studies proved that corporations with higherengagement levels generated:•  27% higher profits•  50% higher sales•  50% higher customer loyalty•  38% above average productivity“Employee Engagement is an outcome-based concept.It is the term which is used to describe the degree to whichemployees can be ascribed as aligned and committed to theirorganization such that they are at the most productive.” -The International School of Human Capital Management www.bizlearning.net  
  50. 50. How do you tip the odds in your favor?Strategy as Processusing a simple framework thatcan be repeatedAnd cascadedthroughout yourorganization •  Engagement •  Alignment •  Commitment Rocket fuel •  Accountability for strategy www.bizlearning.net  
  51. 51. Cascading Alignment throughout theorganization creates CommitmentCascading by understandingthe top level goalsand linking thenext level downthrough theorganization Firm-­‐wide   Sample alignment Regional  &  Prac3ce  Levels   worksheet from MACPA Office  Level   Individuals  Align  Their  Goals  to  the  Firm   www.bizlearning.net  
  52. 52. The Opportunity – Be the House•  15 X – ROI on Strategy as Process & Alignment (Jim Collins – Built to Last)•  8 X – Engagement & Trust (Gallup)•  10X – Return on Leadership (Information Masters)•  20 X – Return on Culture (Information Masters)•  3 X - Return on Positivity (Dr. Barbara Frederickson) “In order to buy-in, I have to weigh in.” – Pat Lencioni www.bizlearning.net  
  53. 53. What can you do to boost your odds? Tipping  point    which  way   will  they  go?   This is your risk point!Inner Circle Informed Pragmatists Skeptics No-NosBought-in Leaders I’ll wait & see Prove it to me I don’t like this I support it www.bizlearning.net  
  54. 54. Where do you start?•  Identifying & Correcting Misalignments •  If this is our purpose and values and these are our strategies, what are the obstacles that get in our way?•  Creating new Alignments •  What mechanisms do you have that reinforce your most important initiatives? •  Granite Rock – short pay •  Onboarding? •  Innovating? www.bizlearning.net  
  55. 55. Where do you start?• Build on Strengths• Seek High Leverage Opportunities• Involve your whole firm• Leverage Technology www.bizlearning.net  
  56. 56. It is more important to have your team:•  Thinking strategically than having a strategic plan.•  Understanding the direction and foundation (vision, values & strategic intent) of the firm than having a detailed five-year plan.•  Engaging in the firm’s future as a whole organization, not just the partners.•  Aligning and on the same page than working independently in their own silos.•  Engaging and participating than being idle observers.•  Focusing on the future than questioning the past.You need a framework that allows you to engage and align your firm andengage your people in the meaningful work of your organization. Thisincreases buy-in and discretionary effort thatdefines high performing organizations. www.bizlearning.net  
  57. 57. •  When it comes to retention, employees are telling us that leadership matters:•  A workforce is far more engaged and committed when it trusts its leadership, receives clear communications about corporate strategy, and believes its leaders have the ability to execute on that strategy. In other words, employee retention is not simply an HR function; it should be driven by business leaders. www.bizlearning.net  
  58. 58. Setting context & defining reality The  four  most   important  words   for  organiza3ons   are,  “what  do  you   think?”   -­‐  Tom  Peters  
  59. 59. We often attribute success, or lack thereof, to inanimateobjects like systems, processes, infrastructure, and strategicplans. The reality, however, is that nothing NEW happensunless we set in motion.We must put our shoulder to the flywheel of positive changeand use our network to exponentially increase our impact.This is leadership in the new normal!
  60. 60. Tom  Hood,  CPA.CITP   CEO   Maryland  Associa;on  of  CPAs   Business  Learning  Ins;tute   (443)  632-­‐2301   E-­‐mail  tom@macpa.org   Web  hUp://www.macpa.org  Blog  hUp://www.cpasuccess.com  hUp://www,bizlearningblog.com      
  61. 61.       www.cpasuccess.com   www.bizlearningblog.com  Follow  me  on:  ü   Twi[er:  h[p://www.Twi[er.com/tomhood  ü   LinkedIn:  h[p://www.linkedin.com/in/tomhood  ü   Facebook:  h[p://www.facebook.com/thoodcpa  ü Slideshare:  h[p://www.slideshare.net/thoodcpa  ü Youtube:  h[p://www.youtube.com/thoodcpa  ü Second  Life  avatar  name:  Rocky  Maddaloni  Check  our  Customized  Training  Catalog  out:     h[p://www.bizlearning.net      
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