Practical ideas, lessons learned and shared experiences for those in the world of CPA firm management, human resources, administration, marketing and technology.
Tomorrow there is a great opportunity for you and/or your firm’s HR leader
Sandra Wiley of Boomer Consulting will be live on iShade between 1:00p and 3:00p Central on Thursday, February 2, 2012 to answer all of your questions relating to the HR issues inside your busy CPA firm.
Wiley will also share great information on the HR outlook for firms for 2012.
Just log-in to iShade on Thursday at the appointed time and go to the Practitioner to Practitioner Group and look for the Discussion Topic “Human Resources Q&A with Sandra Wiley.”
It’s a great opportunity for all of you dealing with HR inside CPA firms. If you read this and are not the HR leader in your firm, please forward this blog post to them.
People often say that motivation doesn't last. Well, neither does bathing - - that's why we recommend it daily.
I was not able to attend the Winning Is Everything CPA firm management conference this year (last week in Vegas), however, I have been reviewing all of the tweets from the event #WIE12.
Steve Mayer, CEO of BPM, made a statement that is so important: “As MP, I’ve never made a decision at BPM on how it affects me. The minute you do, you enter the dark side.”
So many times in my advisory capacity to CPA owners, especially during strategic planning sessions, I hear owners discuss the challenge of change – more individually, than as a group. The group says, we should do this or that but John won’t do it (you fill-in the name for “John”).
“John” has proven to his partners that he will always continue to do what he has always done, what makes him comfortable, and not join-in the “for the good of the firm” movement. To me, a firm like this is always teetering on the dark side and not basking in the power of The Force.
Okay, all of that is a downer and you know I don’t like negative thoughts, pessimism and naysayers. Here’s a brief story from one of my strategic planning sessions that simply makes me say, “Wow!”
In a discussion about what the firm and partners could do to make their firm unique, truly different from their competitors we got on the topic of how all of the more successful firms in their market pretty much looked just like them – an aging (over 55) managing partner and an entire partner group that was predominantly Baby Boomers; all firms seemed to be showing some growth and are respected in the community.
Then an unsolicited comment came from the managing partner. “What if I stepped down and we all agree to let a younger (Gen-X) partner take over as managing partner? None of our competitors are showing any youth in the leadership ranks and it would certainly make us different from the herd.”
I have never heard a managing partner originate such an idea in an open forum with all partners. To me, that is putting “the good of the firm” first.
As you can imagine, nothing was settled during that session but lots of great conversation followed and the idea is being explored.
So many partners nearing retirement age want to continue to work and I truly believe there is a place for that and they can be a huge asset to the firm for many years. But, are they willing to really turn the reigns over to the next generation?
Younger partners, are you willing to speak-up and explore the leadership topic at your firm more openly? Firms need to see more pro-activeness from younger partners rather than them continuing to play the waiting game.
In closing, may the Force be with you, Steve Mayer and with all of you who are exploring what the future of your firm will really look like.
Time to revisit the VW award-winning Super Bowl ad from last year:
The best thing you can do is the right thing; the next best thing you can do is the wrong thing; the worst things you can do is nothing.
I hope you read my post from last Friday (January 20, 2012). It was titled, Build On Your Strengths. I posted it to share my exciting and educational jungle adventure in Costa Rica with you, my online friends, and to also make a point for all CPAs, in general.
Whether you are a CPA in public practice or a CPA, CFO running a challenging accounting department, I hope you will shed the reputation that many CPAs have acquired. I’m talking about being “nit-picky,” “critical,” “a perfectionist,” “adverse to change” and so on. Many partners in CPA firms also have a strong reputation for wanting things done “their way” and are critical of those who excel in different ways.
I always tell young accountants, non-accountant professionals working in firms and members of the administrative team to remember that CPAs have been trained intensely for years and years to find mistakes, to be critical, to look deep for errors and thus often focus on weaknesses when evaluating their own team members. It seems to help these non-partner, yet important team members, to understand why some more experienced CPAs are the way they are.
For 2012, please consider adjusting your performance review and evaluation system to build on strengths. That is the value of a team. If you can’t do that, maybe you should be a sole proprietor (and many of you have wisely chosen that role).
This week’s focus point: I’ve read that Picasso’s mother told him that he would become Pope if he joined the clergy, and a general if he joined the military. But he reported that he preferred art and “I became Picasso.” The great architect Frank Lloyd Wright said, “I once had the choice between hypocritical humility and honest arrogance, chose the latter, and have never regretted it.” I’m suggesting that, short of tedious smugness, we take some time to recognize our strengths and build on them. Too much of “self-help” is about correcting weakness, as if we’re all somehow damaged. Organizations and individuals grow by building on strength. And if you don’t blow your own horn, there is no music.
Please reflect upon today’s quote from Churchill. If you, as firm leaders, are more inclusive with ALL your people and move away from the chosen few making all the decisions without significant input from your entire team, nothing is impossible.
If we are together nothing is impossible. If we are divided all will fail.
Think about all of the people you know. Don’t you agree that most people definitely have more strengths than weaknesses?
If you are a dedicated follower of this blog, you might have noticed that I have not been as dependable with my blogs this week and last. That is because I have been on a two week adventure in Costa Rica – Pura Vida! There was no phone contact and very limited wifi for email.
I can’t begin to relate to you what a true adventure it was. We began as 13 strangers and 2 guides and over 12 days became a team. As one traveler in our group said, “we began as 14 strangers and now we are 14 friends and still strange.”
Everyone in the group had strengths and weaknesses. What did we naturally do? We sought out the strengths in each other and overlooked the weaknesses.
For example, we went to Alex for photography advice because he was the dedicated photographer, carrying two cameras (certainly not the point-and-shoot type) and a variety of lenses. Darrell and Janet knew a lot about birds and Susan loved the mammals. We used our strengths to help each other “spot” birds, 4 types of monkeys and other jungle mammals, frogs (the size of a fly), snakes, lizards, and on and on.
Some people were afraid of heights, yet we all rallied to help them complete the Arenal Hanging Bridgeswalk. Our guide, Herman Venegas, was amazing over-all but especially with identifying birds and mammals. Other guides from various locations filled-in with specific information about their specific area along the way but Herman was the leader, the person we followed.
Consider all of the people on your team. Hopefully, you follow your leaders because they are very strong at leading. Other people at your firm are strong at audit, strong at tax, strong a international tax or state & local tax, strong at marketing, technology, administration and human resources. Seek them out for their strengths – as a
As Tom Hood, Executive Director of MACPA, notes on a recent blog post, “Leadership is about being self-aware, knowing your strengths and those of your team, maximizing the use of those strengths.” Where do you start? Read Tom’s post to find out.
In closing today, I’ve spent the last two weeks in hot and very humid Costa Rica, wearing light clothing, hiking boots and water shoes, whitewater rafting to a jungle lodge with no electricity and then a 3-hour raft trip with Class IV rapids to get out (I’m the one with the white helmet), walking on the beautiful beach on the Osa Peninsula exploring Corcovado National Park, visiting Monteverde Cloud Forest, getting drenched in a downpour at the Arenal Observatory Lodge area, experiencing the many pot-hole filled dirt roads, traveling by boat, raft, bus and small plane. And now I am in Ohio and when I got up this morning it was 7 degrees and snowing.
Let us keep the dance of rain our fathers kept and tread our dreams beneath the jungle sky.
Do all the partners in your CPA firm have meaningful goals for 2012? Has your managing partner met with every partner individually to talk about and document their goals? Have you made them public?
Many firms wait until early in January, after all of the year-end frenzy, to establish their current year goals. If you haven’t performed this important step yet for 2012, here’s a link to Gary Adamson’s Five Tips To Get More Out Of Your Partner Goal Setting from his Adamson Advisory December newsletter.
Committed Leadership
Hygiene vs. Goals
Firm Wide Goals/Objectives and Compensation Plan
Don’t Hide Them
Outside Assistance
Follow the link above to read about each of the five topics.
I find it fascinating that most people plan their vacation with better care than they do their lives. Perhaps that is because escape is easier than change.
The title, above, might not apply to some firms but I certainly hope it applies to the vast majority.
My advice when it comes to interns is, if you can possibly use one – hire two. If you think you might need 3, hire six. Most of you know by now that hiring for the public accounting profession has evolved to hiring from your intern pool. The best and brightest almost always accept offers from the firm they interned with. The stiffest competition in hiring on campus is for the best intern candidates.
When the interns arrive, make them feel special. I often ask groups of managing partners how they felt on their first day working in public accounting. I get some very consistent answers such as: I felt dumb. I felt lost. I was clueless. I was scared.
Now that you are more experienced, keep in mind how all new hires in the CPA world feel. And remember, use positive talk. Sometimes, people in CPA firms tend to dwell on the negative. When you describe your firm and public accounting, in general, to new hires (and to anyone) don’t forget to brag it up!
In January, when new hires and interns arrive, it is a perfect time to talk about the wonderful opportunities in public accounting. As a firm leader, take the time to talk with each one privately about the wonderful world of public accounting. I suggest comparing public accounting to being a doctor – CPAs are highly trained physicians (specialists) treating patients – sometimes you are focused on preventive medicine and sometimes you are an emergency room doctor. Sometimes you even need to provide psychiatric help (like me in the picture, above).
Here’s an example of an intern speech for you to use, just insert the name of one of your all-stars.
“You know, Nate, the reality of the CPA profession and what makes it so important to you, is the fact that it is absolutely the BEST place to TRAIN for the business world. Public accounting teaches you how to think in ways that have never entered your brain before now. Being an auditor forces you to look past what is obvious. Taxes teaches you how to be cunning, creative and forces you to think proactively. You could say that working in the tax area is like planning the strategy for an important battle.
What’s more, public accounting is like the emergency room for all business owners. YOU are the DOCTOR and PATIENTS come to you when they have a painful problem. You strip them of their clothes (so to speak), see them for what they humanly are, do x-rays, CAT scans and all kinds of tests to be sure it is a thorough examination. You see into their personal life like no other person. Then you diagnose and treat them.
Also, Nate, if you keep your eyes, ears and mind open during your time with them, you will see how successful businesses are run and how true entrepreneurs think. You might also see how mistakes and poor judgment can take a business down. What a training ground!”
The nice thing about being a celebrity is that if you bore people they think it's their fault.
Jennifer Wilson, Tamera Loerzel and the team at Convergence are launching a new program designed to prepare up-and-comers to lead and manage their firms. It’s called the Transformational Leadership Program and the first session begins in January, 2012.
One of my continual and strong recommendations to CPA firm leaders is to invest in the success of their people. This is one area where you cannot be miserly.
I’m not talking about the required technical tax and audit CPE that CPAs must have, I’m talking about an investment in the success of the firm, as a whole, because the people who are expected to manage, lead, motivate, inspire and set the example know exactly how to do it.
I’m talking about your Managing Partner – Does he/she have have a coach or mentor? Does he/she attend leadership and advanced management training. Read my post about “leading professional service firms” from 2010 and investigate the program offered at Harvard.
I’m talking about your Firm Administrator and your Human Resources professional – Does he/she have a coach or mentor? Does he/she attend MAP conferences (more than one per year)? Has he/she had the opportunity to develop a network of other firm administrators to use for advice and ideas. The Association for Accounting Administration is a MUST professional organization for professionals managing CPA firms. The AICPA also offers a Human Capital Forumannually, where HR professionals can build a network of advisors.
Your marketing professional should be a member of AAM and attend the national conference. Your technology professional inside the firm should be active in the Boomer Technology Circles.
And…. your future leaders should be building their own network of “professionals managing accounting firms” via leadership training specifically directed at the public accounting profession. State societies, the AICPA and proven, experienced advisors to the profession are offering such programs.
Take action! – Investigate them now.
There's a difference between interest and commitment. When you're interested in doing something, you do it only when it's convenient. When you are committed to something, you accept no excuses; only results.
Too many CPA firm managing partners and firm administrators get stuck on internal procedures, winning over all of the partners, and convincing the managers, that they lose focus on just getting it done.
Nothing is ever perfect and firm leaders often spend a great amount of time re-visiting, re-designing, editing and reviewing a new service, procedure or policy when they should just get on with it and fine-tune it as they go. Please don’t continue to put it on the next partner meeting agenda… again and again.
Much of the delay with taking action inside accounting firms is because so much time must be spent convincing all of the partners/directors/principals or what ever your firm calls the owners.
The firms that I have seen become the most successful have a strong leader who is allowed to just move ahead and get things done. In fact, these firms have grown and evolved by down-playing the role of many of the shareholders. In recent years, firms have established the role of non-equity “partner” or given some shareholders a very, very small amount of shares. If you involve every person who fits that category in all of the decision-making you are going to be on a “slow-boat” rather than a “snow-board.”
Here’s an interesting perspective. I asked a very dynamic leader of a very large, continually growing firm, a fairly normal question, “How often do you have partner meetings with ALL of your partners?” In recent years they have added dozens of people called “partners” – non- or small-equity partners. The leader’s reply: ”Never.”
I took a speed-reading course and read War and Peace in twenty minutes. It involves Russia.
Last week, you may have read my blogs about my travels to Minnesotaand to New England.
It was a wonderful week and I am grateful for the opportunity to connect with about 300 CPAs who attended my seven sessions.
One partner, in one session, remarked, “Rita, it seems like you are being hard on us baby boomers who work hard and take care of our clients.” Maybe he is right but that is not my intent.
My goal, as I spread the word about how to manage, motivate and embrace the next generation of CPA leaders is to help current leaders understand what they are (and will be) facing in the future. I don’t want any current CPA firm leader to be surprised when people they were counting on to “buy them out” decide not to. Or, when team members begin to say, “we’re not coming into the office on Saturday anymore.”
I still find that many CPA leaders are not embracing change. Actually, it takes more energy to resist change than it does to embrace it. The bottom line is that team members are looking to their leaders to demonstrate leadership.
As you enter this long-holiday weekend and have time to think. I’ll leave you with this quote:
Leaders establish the vision for the future and set the strategy for getting there; they cause change. They motivate and inspire others to go in the right direction and they, along with everyone else, sacrifice to get there.
Hundreds of studies have found that the most engaged employees – those who report they’re fully invested in their jobs and committed to their employers – are significantly more productive, drive higher customer satisfaction and outperform those who are less engaged.
However, only 20% of employees around the world report that they’re fully engaged at work.
The recommendation made to employers certainly applies to accounting firms. You must shift the focus from trying to get more out of people, to investing more in them.
The last few years, many firms have been running lean and mean when it comes to staffing. Cuts needed to be made back in 2008/09 and maybe even 2010. Your people are now looking to you, firm leaders, to provide relief and appreciation for the extra effort many of them have contributed recently.
Here’s what the studies show as the things employees need.
Commit to paying every employee a living wage
Give all employees a stake in the company’s success.
Design working environments that are safe, comfortable and appealing.
Provide healthy, high-quality food.
Create places for employees to rest and renew during the course of the working day.
Offer a well equipped gym and other facilities that encourage employees to move physically and stay fit.
Define clear and specific expectations.
Institute two-way performance reviews so that employees not only receive regular feedback but they are able to give feedback, too.
Hold leaders and managers accountable.
Create policies that encourage employees to set aside time to focus without interruption on their most important priorities.
Provide employees with ongoing opportunities and incentives to learn, develop and grow.
Stand for something beyond simply increasing profits.
I believe that CPA firms measure-up pretty well in many of these but still lack in others. How’s your firm doing?
You got to like your work. You have got to like what you are doing, you have got to be doing something worthwhile so you can like it.. because it is worthwhile, that it makes a difference, don't you see?
Wiley will also share great information on the HR outlook for firms for 2012.
