Presentation at Sage Summit 2013 by Jennifer Warawa, VP of Sage North America and Tom Hood CEO of the MACPA and Business Learning Institute.

1. July 21–26 | Washington, D.C.
Gaylord National Resort and Convention Center
July 21–26 | Washington, D.C.
Gaylord National Resort and Convention Center
Fundamentals of High-Performing Firms
How to Get (and Keep) a Competitive Edge
Jennifer Warawa, vice president Partner Programs
Tom Hood, CPA, CITP, CGMA
#SageSummit

2. July 21–26 | Washington, D.C.
Gaylord National Resort and Convention Center
July 21–26 | Washington, D.C.
Gaylord National Resort and Convention Center
www.SlideShare.net/thoodcpa
@jenniferwarawa
@tomhood
@MACPA
#SageSummit
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3. July 21–26 | Washington, D.C.
Gaylord National Resort and Convention Center
July 21–26 | Washington, D.C.
Gaylord National Resort and Convention Center
Our Goals for This Session:
• Challenge the way you think
• Challenge the status quo
• Identify two things you will change
• Engage you!

4. July 21–26 | Washington, D.C.
Gaylord National Resort and Convention Center
July 21–26 | Washington, D.C.
Gaylord National Resort and Convention Center
http://macpa.cnf.io
Respond to a Poll
Ask a Question
Join the conversation

5. July 21–26 | Washington, D.C.
Gaylord National Resort and Convention Center
July 21–26 | Washington, D.C.
Gaylord National Resort and Convention Center
1 Clearly defined vision
2 Deep understanding of where the future is headed
3 Measurable customer satisfaction strategy
4 Firm grasp on technology enablers
5 Set of internal key performance indicators
6 Effective communication strategy
7 Employee engagement and retention plan
8 Pulse on the market
9 Evolving learning plan
10 Good management of their brand
Ten Foundational Pillars of High-Performing Firms

6. July 21–26 | Washington, D.C.
Gaylord National Resort and Convention Center
July 21–26 | Washington, D.C.
Gaylord National Resort and Convention Center
1 Clearly defined vision
2 Deep understanding of where the future is headed
3 Measurable customer satisfaction strategy
4 Firm grasp on technology enablers
5 Set of internal key performance indicators
6 Effective communication strategy
7 Employee engagement and retention plan
8 Pulse on the market
9 Evolving learning plan
10 Good management of their brand
Ten Foundational Pillars of High-Performing Firms

7. July 21–26 | Washington, D.C.
Gaylord National Resort and Convention Center
July 21–26 | Washington, D.C.
Gaylord National Resort and Convention Center
1 Clearly defined vision
2 Deep understanding of where the future is headed
3 Measurable customer satisfaction strategy
4 Firm grasp on technology enablers
5 Set of internal key performance indicators
6 Effective communication strategy
7 Employee engagement and retention plan
8 Pulse on the market
9 Evolving learning plan
10 Good management of their brand
Ten Foundational Pillars of High-Performing Firms

8. July 21–26 | Washington, D.C.
Gaylord National Resort and Convention Center
July 21–26 | Washington, D.C.
Gaylord National Resort and Convention Center
1 Clearly defined vision
2 Deep understanding of where the future is headed
3 Measurable customer satisfaction strategy
4 Firm grasp on technology enablers
5 Set of internal key performance indicators
6 Effective communication strategy
7 Employee engagement and retention plan
8 Pulse on the market
9 Evolving learning plan
10 Good management of their brand
Ten Foundational Pillars of High-Performing Firms

9. July 21–26 | Washington, D.C.
Gaylord National Resort and Convention Center
July 21–26 | Washington, D.C.
Gaylord National Resort and Convention Center
1 Clearly defined vision
2 Deep understanding of where the future is headed
3 Measurable customer satisfaction strategy
4 Firm grasp on technology enablers
5 Set of internal key performance indicators
6 Effective communication strategy
7 Employee engagement and retention plan
8 Pulse on the market
9 Evolving learning plan
10 Good management of their brand
Ten Foundational Pillars of High-Performing Firms

10. July 21–26 | Washington, D.C.
Gaylord National Resort and Convention Center
July 21–26 | Washington, D.C.
Gaylord National Resort and Convention Center
1 Clearly defined vision
2 Deep understanding of where the future is headed
3 Measurable customer satisfaction strategy
4 Firm grasp on technology enablers
5 Set of internal key performance indicators
6 Effective communication strategy
7 Employee engagement and retention plan
8 Pulse on the market
9 Evolving learning plan
10 Good management of their brand
Ten Foundational Pillars of High-Performing Firms

11. July 21–26 | Washington, D.C.
Gaylord National Resort and Convention Center
July 21–26 | Washington, D.C.
Gaylord National Resort and Convention Center
1 Clearly defined vision
2 Deep understanding of where the future is headed
3 Measurable customer satisfaction strategy
4 Firm grasp on technology enablers
5 Set of internal key performance indicators
6 Effective communication strategy
7 Employee engagement and retention plan
8 Pulse on the market
9 Evolving learning plan
10 Good management of their brand
Ten Foundational Pillars of High-Performing Firms

12. July 21–26 | Washington, D.C.
Gaylord National Resort and Convention Center
July 21–26 | Washington, D.C.
Gaylord National Resort and Convention Center
1 Clearly defined vision
2 Deep understanding of where the future is headed
3 Measurable customer satisfaction strategy
4 Firm grasp on technology enablers
5 Set of internal key performance indicators
6 Effective communication strategy
7 Employee engagement and retention plan
8 Pulse on the market
9 Evolving learning plan
10 Good management of their brand
Ten Foundational Pillars of High-Performing Firms

13. July 21–26 | Washington, D.C.
Gaylord National Resort and Convention Center
July 21–26 | Washington, D.C.
Gaylord National Resort and Convention Center
1 Clearly defined vision
2 Deep understanding of where the future is headed
3 Measurable customer satisfaction strategy
4 Firm grasp on technology enablers
5 Set of internal key performance indicators
6 Effective communication strategy
7 Employee engagement and retention plan
8 Pulse on the market
9 Evolving learning plan
10 Good management of their brand
Ten Foundational Pillars of High-Performing Firms

14. July 21–26 | Washington, D.C.
Gaylord National Resort and Convention Center
July 21–26 | Washington, D.C.
Gaylord National Resort and Convention Center
1 Clearly defined vision
2 Deep understanding of where the future is headed
3 Measurable customer satisfaction strategy
4 Firm grasp on technology enablers
5 Set of internal key performance indicators
6 Effective communication strategy
7 Employee engagement and retention plan
8 Pulse on the market
9 Evolving learning plan
10 Good management of their brand
Ten Foundational Pillars of High-Performing Firms

15. July 21–26 | Washington, D.C.
Gaylord National Resort and Convention Center
July 21–26 | Washington, D.C.
Gaylord National Resort and Convention Center
1 Clearly defined vision
2 Deep understanding of where the future is headed
3 Measurable customer satisfaction strategy
4 Firm grasp on technology enablers
5 Set of internal key performance indicators
6 Effective communication strategy
7 Employee engagement and retention plan
8 Pulse on the market
9 Evolving learning plan
10 Good management of their brand
Ten Foundational Pillars of High-Performing Firms

16. July 21–26 | Washington, D.C.
Gaylord National Resort and Convention Center
July 21–26 | Washington, D.C.
Gaylord National Resort and Convention Center
Remembering Your Vision
Why did you get in to accounting in the first place?
What’s your “why”?

17. July 21–26 | Washington, D.C.
Gaylord National Resort and Convention Center
July 21–26 | Washington, D.C.
Gaylord National Resort and Convention Center
Likely not this . . .

18. July 21–26 | Washington, D.C.
Gaylord National Resort and Convention Center
July 21–26 | Washington, D.C.
Gaylord National Resort and Convention Center
Remembering Your Vision
Why did you get in to accounting in the first place?

19. Best Practices:
Serving Existing Clients

20. July 21–26 | Washington, D.C.
Gaylord National Resort and Convention Center
July 21–26 | Washington, D.C.
Gaylord National Resort and Convention Center
Best Practice #1
Existing Clients
Their clients know what services their firm offers beyond what
they currently utilize.

21. July 21–26 | Washington, D.C.
Gaylord National Resort and Convention Center
July 21–26 | Washington, D.C.
Gaylord National Resort and Convention Center
Best Practice #2
Existing Clients
They price for the value they deliver to their client, not by the hour.

22. July 21–26 | Washington, D.C.
Gaylord National Resort and Convention Center
July 21–26 | Washington, D.C.
Gaylord National Resort and Convention Center
Best Practice #3
Existing Clients
They don’t undercharge for their services.

23. July 21–26 | Washington, D.C.
Gaylord National Resort and Convention Center
July 21–26 | Washington, D.C.
Gaylord National Resort and Convention Center
Best Practice #4
Existing Clients
They interact with clients on a frequent and ongoing basis, not just
when they are in the middle of an engagement.

24. July 21–26 | Washington, D.C.
Gaylord National Resort and Convention Center
July 21–26 | Washington, D.C.
Gaylord National Resort and Convention Center
Best Practice #5
Existing Clients
They “surprise and delight.”

25. July 21–26 | Washington, D.C.
Gaylord National Resort and Convention Center
July 21–26 | Washington, D.C.
Gaylord National Resort and Convention Center
Best Practice #6
Existing Clients
They get the “brilliant basics” right.

26. July 21–26 | Washington, D.C.
Gaylord National Resort and Convention Center
July 21–26 | Washington, D.C.
Gaylord National Resort and Convention Center
Best Practice #7
Existing Clients
They know how happy (or unhappy) their existing clients are.

27. July 21–26 | Washington, D.C.
Gaylord National Resort and Convention Center
July 21–26 | Washington, D.C.
Gaylord National Resort and Convention Center
Best Practice #8
Existing Clients
They evaluate their clients regularly and fire the bad ones.
• Which clients are profitable? Easy to work with?
• Compliant? Passionate? Driven?
• Paying for value? Paying on time?

28. Best Practices:
Attracting and
Acquiring New Clients

29. July 21–26 | Washington, D.C.
Gaylord National Resort and Convention Center
July 21–26 | Washington, D.C.
Gaylord National Resort and Convention Center
Best Practice #9
New Clients
They know the correct answer to “Are you accepting new clients?”

30. July 21–26 | Washington, D.C.
Gaylord National Resort and Convention Center
July 21–26 | Washington, D.C.
Gaylord National Resort and Convention Center
Best Practice #10
New Clients
They know how to market themselves to attract new clients.

31. July 21–26 | Washington, D.C.
Gaylord National Resort and Convention Center
July 21–26 | Washington, D.C.
Gaylord National Resort and Convention Center
Best Practice #11
New Clients
They network.

32. July 21–26 | Washington, D.C.
Gaylord National Resort and Convention Center
July 21–26 | Washington, D.C.
Gaylord National Resort and Convention Center
Best Practice #12
New Clients
They have their pitch mastered.

33. July 21–26 | Washington, D.C.
Gaylord National Resort and Convention Center
July 21–26 | Washington, D.C.
Gaylord National Resort and Convention Center
Best Practice #13
New Clients
They have a strong online presence.

34. July 21–26 | Washington, D.C.
Gaylord National Resort and Convention Center
July 21–26 | Washington, D.C.
Gaylord National Resort and Convention Center
Best Practice #14
New Clients
They ask their happy clients for referrals.

35. July 21–26 | Washington, D.C.
Gaylord National Resort and Convention Center
July 21–26 | Washington, D.C.
Gaylord National Resort and Convention Center
Best Practice #15
New Clients
They have more than one tool in their toolbox.
If all you have is a hammer, everything is a nail.

36. July 21–26 | Washington, D.C.
Gaylord National Resort and Convention Center
July 21–26 | Washington, D.C.
Gaylord National Resort and Convention Center
Best Practice #16
New Clients
They never stop learning.
68% of firms surveyed have been in business for over 20 years.

37. July 21–26 | Washington, D.C.
Gaylord National Resort and Convention Center
July 21–26 | Washington, D.C.
Gaylord National Resort and Convention Center
Best Practice #17
New Clients
They know why they are better than their competition.

38. July 21–26 | Washington, D.C.
Gaylord National Resort and Convention Center
July 21–26 | Washington, D.C.
Gaylord National Resort and Convention Center
How did you do?

39. July 21–26 | Washington, D.C.
Gaylord National Resort and Convention Center
July 21–26 | Washington, D.C.
Gaylord National Resort and Convention Center
Business Best Practices
Be Bad at Something
You need to clearly define what you’re going to be bad at.
www.uncommonservice.com

40. July 21–26 | Washington, D.C.
Gaylord National Resort and Convention Center
July 21–26 | Washington, D.C.
Gaylord National Resort and Convention Center
Business Best Practices
Leadership and Management
An employee issue is never the employee’s fault.
Good managers are responsible for teaching, coaching, managing, performance,
and outcomes.

41. July 21–26 | Washington, D.C.
Gaylord National Resort and Convention Center
July 21–26 | Washington, D.C.
Gaylord National Resort and Convention Center
Business Best Practices
Importance of Culture
People do business with a culture.

42. July 21–26 | Washington, D.C.
Gaylord National Resort and Convention Center
July 21–26 | Washington, D.C.
Gaylord National Resort and Convention Center
Business Best Practices
Priority Setting
Study: Top ten managers of 125 companies around the world
were asked individually to identify their companies’ five most
critical objectives.
Managers of the 40 most profitable companies agreed on 6 to 12 objectives.
For the 40 lowest performing companies, the range was 26-43.

43. July 21–26 | Washington, D.C.
Gaylord National Resort and Convention Center
July 21–26 | Washington, D.C.
Gaylord National Resort and Convention Center
Business Best Practices
Pricing and Value
As a Company, How Well Do You:
• Understand what your customers do (and do not)
value—in product? In service? In support?
• Continuously update your understanding of value
drivers by customer segment?
• Discuss and manage your total value proposition?
• Reflect and manage the relevant value drivers in the
execution of your sales, marketing, product, supply
chain, and pricing programs?

44. Moderator: Tom Hood
• Named as fourth Most Influential in
Accounting by Accounting Today Magazine
• 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
Tom Hood, CPA, CITP, CGMA
CEO
MACPA www.macpa.org
and
Business Learning Institute
(BLI) www.blionline.org
http://www.linkedin.com/in/tomhood/

45. The New Normal - VUCA

46. Source:
Brian
Solis
author
of
The
End
of
Business
as
Usual
The Challenge

47. The Challenge
Nothing happens
without the
commitment of
our PEOPLE.
ROI = ROP

48. The Challenge

49. The Question
How do I increase my odds
and make the right bets on
which strategies to pursue
and how to get them done
in aVUCA world?

50. 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

51. ROI = ROP
ROP = ROA x ROC x ROL

52. 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 existence
www.bizlearning.net

53. A tale of two more firms…
www.bizlearning.net

54. And two more…
www.bizlearning.net

55. Return on Investment
Cri=cal
Areas
Investment
Return
People
2%
20%
Processes
2%
15%
OrganizaCon
Structure
2%
10%
Culture
1%
20%
Leadership
1%
10%
InformaCon
10%
15%
Technology
82%
10%
www.bizlearning.net
Source:
InformaCon
Masters
–
Secrets
of
the
Customer
Race
by
John
McKean

56. Strategy as Process:
Our i2a Framework
www.bizlearning.net

57. Sight Insight
• Hindsight – How did we get here?
• Insight - SCOT
• Foresight – What do we know
about the future?

58. The Paradox
The faster things change, the more important it is
to look ahead.

59. The Research
2
1,000
10,000

60. What CPAs have said about future:
1) Changing demographics
2) Increased globalization
3) The technological revolution
4) Issues around information security
5) Shift to consumer and employee power
6) Changes in the way we communicate
7) Work-life challenges and conflict
8) Information Overload
9) Complexity of rules and standards
10) Economic uncertainty
INSIGHT: Top Trends to Watch

61. Create - Start with why?
www.bizlearning.net
People don’t
buy what
you do, they
buy why you
do it!

62. Why
Reassess
Renew
Where are
we going
Link
Leverage
How are we
going to get
there
Critical
Turning
Point
The
Bounce
Copyright 2012 – Business Learning Institute
High
Performance
OrganizaCons
–
Strategic
SystemaCc

63. www.bizlearning.net

64. Accountability is # 1 Issue
www.bizlearning.net
Engagement
Alignment
Commitment
Accountability

65. Strategy as Process Training aligned to strategy creates
employee engagement
www.bizlearning.net
Gallup studies proved that corporations with higher
engagement levels generated:
• 27% higher profits
• 50% higher sales
• 50% higher customer loyalty
• 38% above average productivity
“Employee Engagement is an outcome-based concept.
-The International School of Human Capital Management

66. Cascading Alignment throughout the
organization creates Commitment
Firm-­‐wide
Regional
PracCce
Levels
Office
Level
Individuals
Align
Their
Goals
to
the
Firm
Sample alignment
worksheet from
MACPA
www.bizlearning.net

67. www.bizlearning.net

68. “In
a
period
of
rapid
change
and
increasing
complexity,
the
winners
are
going
to
be
the
people
who
can
LEARN
faster
than
the
rate
of
CHANGE
and
faster
than
their
COMPETITION.”
-­‐
Tom
Hood,
CPA.CITP.CGMA

69. Source: Research from CPA Horizons 2025 Project the Business Learning Institute
Core Competencies
Leadership
CommunicaCons
Strategic
Thinking
CollaboraCon
Synthesis
Technologically
Savvy

70. Where do you start?
• Build on Strengths
• Seek High Leverage
Opportunities
• Involve your whole firm
• Leverage Technology
• Alignments Misalignments
www.bizlearning.net

71. Tom
Hood,
CPA.CITP
CEO
Maryland
Associa=on
of
CPAs
Business
Learning
Ins=tute
(443)
632-­‐2301
E-­‐mail
tom@macpa.org
Web
hWp://www.macpa.org
Blog
hWp://www.cpasuccess.com
Blog
hWp://www.bizlearningblog.com
Follow
me
on:
ü
Twier:
hp://www.Twier.com/tomhood
ü
LinkedIn:
hp://www.linkedin.com/in/tomhood
ü
Facebook:
hp://www.facebook.com/thoodcpa
ü Google
+:
hps://plus.google.com/104372556333854919205
ü Slideshare:
hp://www.slideshare.net/thoodcpa
ü Youtube:
hp://www.youtube.com/thoodcpa
ü Second
Life
avatar
name:
Rocky
Maddaloni

72. July 21–26 | Washington, D.C.
Gaylord National Resort and Convention Center
July 21–26 | Washington, D.C.
Gaylord National Resort and Convention Center
Creating your Competitive Edge – Sage Vision and
Strategy Workshop for Accounting Professionals
P-231 Monday July 22, 2 - 5:30pm
P-231 Tuesday July 23, 8:30 - Noon
Room: Woodrow Wilson C