Scientific management and other leading techniques of a modern CPA firm


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  • BAC - How much was originally planned for this project to cost.AC = Actual costsPV = How much work should have been completed at a point in time based on the plan. Derived by measuring planned work completed at a point in time.EV (aka Budgeted Cost of Work Performed – BCWP) = How much work was actually completed during a given period of time. Derived by measuring actual work completed at a point in the schedule.CV = The difference between what we expected to spend and what was actually spent.SV = The difference between where we planned to be in the schedule and where we are in the scheduleCPI - The rate at which the project performance is meeting cost expectations during a given period of time.SPI =The rate at which the project performance is meeting schedule expectations up to a point in time.
  • The top three issues facing human resources & talent development are:A shortage of creative, agile leaders.Inability to rapidly develop workforce skills and capabilities.Ineffective collaboration and knowledge sharing.Source: 2010 IBM Global Chief Human Resource Officer study
  • The Bounce is a standardized career path framework used to communicate the progression of the CPA / Accounting Career. It is based on the concept of a reflective bounce (like a basketball bounce pass) where initial momentum is required early in the career (mastery of technical proficiencies) in order to get the bigger bounce and momentum on the other side with leadership proficiencies.For more information see
  • The Top 5 Skills CPAs Need NowThe Top Five Skills CPAs need for the future (research by AICPA & CPA Horizons 2025 Project)Leadership: The ability to develop and share insights and the aptitude to mobilize and inspire others to action. Leadership is about finding possibilities and developing people, utilizing their strengths, and shaping the future.Communications: Able to give and exchange information with meaningful context and appropriate delivery and interpersonal skills. It includes the ability to make thinking visible to others in a way they can easily grasp.Strategic thinking: A future-minded and flexible mindset that thinks critically and creatively. The ability to link data, knowledge and insights together to provide quality advice for strategic decision-making.Collaboration and synthesis: Being effective at engaging others and working across boundaries to turn challenges into opportunities, including the ability to consider the whole picture (past, present, and future context) and create alternatives and options for the future.Being tech savvy: Anticipating technology changes and how they can benefit others. Being adept at standardizing data for transparency, efficient exchange, and visualization.
  • http://www.b;ionline.orgThe #1 Job of a leader is…The Top 5 Skills CPAs Need NowHow to Deal with the Top 5 Learning Trends
  • Scientific management and other leading techniques of a modern CPA firm

    1. 1. Scientific Management and Other Leading Techniques of a Modern CPA Firm EdKless RonBaker TomHood #greatcpe
    2. 2. Efficiency 2 I knew I could control one thing, and that is my time and my hours and my effort and my efficiency. - Ryan Seacrest
    3. 3. λογόs 3 In the beginning there was the ratio, and the ratio was with God, and the ratio was God. - John 1:1
    4. 4. My Quest for Generic Efficiency 4 Inputs ---------- Outputs Is ---------- Ought
    5. 5. Ron Baker, Founder VeraSage Institute Why Timesheet s Are Critical
    6. 6. Taylorism: The application of scientific methods to the problem of obtaining maximum efficiency in work
    7. 7. ―Taylor’s Scientific Management idea is perhaps the most powerful as well as the most lasting contribution America has made to Western though since the Federalist Papers.’‖ Peter Drucker
    8. 8. “What you can measure you can manage.” ––The McKinsey Maxim
    9. 9. Taylor’s Scientific System 1. Break down job into its component parts. 2. Time each of those parts with a stopwatch to find out just how quickly they can be achieved by the quickest and most efficient workers. 3. Get rid of any parts of the job that aren’t necessary. 4. Add in ―about‖ 40 percent to the time for unavoidable delays. Over time, SM will take this to zero 5. Organize your pay system so that the most efficient people can earn considerably more money by meeting the optimum times, while the average have to struggle to keep up.
    10. 10. Four Reasons Why Timesheets Are Critical 1. They are a pricing tool 2. They are a cost accounting tool 3. They measure the efficiency of our professionals 4. They are a project management tool
    11. 11. Twitter @ronaldbaker Phone 707.769.0965 VeraSage website/blog Thank You!
    12. 12. Efficiency in Professional Project Management • BAC – Budget at completion • AC – Actual costs to date • PV – Planned value = Planned % complete * BAC • EV – Earned value = Actual % complete * BAC • CV – Cost variance = EV – AC • SV – Scheduled variance = EV – PV • CPI – Cost performance index = EV / AC • SPI – Scheduled performance index = EV /PV 13
    13. 13. Getting to Some Efficiency Metrics • BAC = $50,000 • AC = $20,000 • Planned % complete = 75% • Actual % complete = 25% • PV = 75% * $50,000 = $37,500 • EV = 25% * $50,000 = $12,500 • CV = $12,500 – $20,000 = $7,500 • SV = $12,500 – $37,500 = $25,000 • CPI = $12,500 / $20,000 = 62.5% • SPI = $12,500 / $37,500 = 33% 14
    14. 14. If there is a conversation about the future of the profession, you're bound to hear Hood's name mentioned as one of the people leading the way. – Accounting Today Tom Hood, CPA, CITP, CGMA • Named the Second Most Influential in Accounting by Accounting Today Magazine 2013 • Top 150 Influencer by Linked-In • Top 25 Influencers in Learning & HR by HR Examiner • Top 25 Public Accounting Thought Leaders by CPA Practice Adviser • Working on Learning Management with AICPA/CPA2Biz, Cloud Curriculum, Performance Management /XBRL, Leadership & Generations CEO Maryland Association of CPAs (MACPA) Business Learning Institute (BLI)
    15. 15. Where did I get this stuff?
    16. 16. The research…
    17. 17. The Research – is all wrong
    18. 18. 1. A shortage of creative, agile leaders. 2. Inability to rapidly develop workforce skills and capabilities. 3. Ineffective collaboration and knowledge sharing. Source: 2010 IBM Global Chief Human Resource Officer study The top three issues facing human resources & talent development
    19. 19. • Career Path (Ladder) • Competency-based Learning • Curriculum • Cloud Our approach – The Four C’s
    20. 20. The Bounce (is wrong)
    21. 21. The TTHUD is the way Technic al Training Helping U Gladwell was partially right. Accounting & tax mastery require more training
    22. 22. TTHUD This is what matters most Y
    23. 23. How can we help you keep your L>C • Strategy & Alignment • Curriculum tied to strategy • I2a Leadership Academy • BLI Leadership Express - on-demand leadership support • Social learning In a period of rapid change and increasing complexity, the winners will be those organizations who can keep their rate of learning greater than the rate of change and greater than their competition. – Tom Hood
    24. 24. Leadership Education for Accounting Professionals New technologies. New trends. New client expectations. The accounting profession today is dramatically different than it was just a few years ago. Every day the learning curve becomes steeper and harder to climb. That’s why Sage has partnered with the Business Learning Institute to offer Leadership Education for Accounting Professionals.
    25. 25. Leadership Education for Accounting Professionals The Sage Difference Not your traditional CPE classes! Leadership Education for Accounting Professionals will help you: • Improve customer relationships - Add more value to your client relationships by shifting the focus to the insights and guidance your clients are asking for. • Stay current - Stay on top of emerging trends for accountants and small businesses. • Grow your business - Uncover business growth strategies for your firm and your clients. • Get the flexibility you need - Optimize your knowledge and skills in the format you prefer—live or online.
    26. 26. Leadership Education for Accounting Professionals In-Person - Available in select cities across North America, these interactive educational courses provide opportunities to have your questions answered and network with peers. Webcast - Live and replay at scheduled times, these webcasts give you the freedom to participate online. Instructors are always available to answer your questions and best of all, no tests. On-demand - The ultimate in educational convenience! These self-paced, interactive courses are perfect for the accounting professional who needs just-in-time education at their fingertips.
    27. 27. Leadership Education for Accounting Professionals