Archive for the ‘Trends’ Category
Monday, July 14th, 2014
Since it is Monday, I thought I would talk about Fridays. This coming Friday are you going to be in the office for 8 hours? Are you going to be in the office for 4 hours or not at all?
I am finding many firms doing many things with Fridays. Some are closed but, of course, clients can reach their key person via mobile device. Some firms work half-days on Fridays and tell me that clients don’t seem to mind at all because they often take that day off, too or work very little on Fridays.
I know, first hand, that when I was working in a large CPA firm, the activity was minimal on Fridays, although we were never closed. Most partners left at noon, managers and others used PTO to take a half day off. The “flexers” usually did not include Fridays, in the summer, in their work schedules.
Have you been pondering this possibility for several years? Below are some resources that might help you make-up your mind:
Check-out the website of my good friends at Payne Nickles. Look at the lower left where it indicates hours are Monday to Friday 8:00 to 5:00 AND Friday Closed at Noon Memorial Day thru Labor Day.
More good friends, the Friedman firm headquartered in Manhattan, ranked highly on a recent Vault.com employee survey – read about the survey here that ranks the happiest accounting firms. The headliner for Friedman was the workplace initiative of its summer schedule. From June through August, there is no work on Friday. Friedman piloted the program back in 2007, and found that output actually exceeded that of a five-day workweek.
Notice how prominently closing on Fridays is displayed on the website of Borgida & Company, a Manchester, CT firm.
Check out “I Know It Can Be Done – Closing On Fridays” a blog post I did back in 2010. I truly believe that if CPA firm team members know they can have Friday off or leave early on Friday, they will work much harder Monday – Thursday. If that is not the case with your team members, perhaps you have deeper problems with your team members.
Here’s a good article on FastCompany, The Good, The Bad, and The Alternatives: What Bosses Really Think About Summer Fridays.
The problem is not the problem. The problem is your attitude about the problem. Do you understand?
Captain Jack Sparrow
Saturday, July 12th, 2014
I love this short video from the folks at Robert Half.
As, I talk with CPAs around the country, most of them seem amazed that helicopter parents are actually calling “bosses” at CPA firms in inquire or complain about something on behalf of a young staff person. Larger firm are developing programs to deal with the parents who show up with their young person for the job interview!
Does your firm have a way to connect with parents? Remember, most young people entering your firm have had intense parental support. Build on that.
Because this depiction is extreme, it makes you smile – yes, lighten-up, it’s the weekend!
My heroes are and were my parents. I can't see having anyone else as my heroes.
Friday, March 7th, 2014
My good friends at prominent New Jersey firm Wilkin & Guttenplan (managing partner Ed Guttenplan and firm administrator Janine Zirrith) never cease to amaze me. They are truly focused on listening to their people, engaging them and including them in decisions.
This year, along with many other interesting and fun activities, they have tweaked their exercise program by offering T25 classes twice per week.
Janine was kind enough to send me a picture, that’s her on the far right and yes, they are holding the managing partner, Ed Guttenplan.
Having fun at your CPA firm right now?
The secret of getting ahead is getting started.
Friday, January 10th, 2014
I try to provide CPAs and all the people working inside CPA firms with helpful information via my presentations, workshops, newsletter, consulting activities and this blog.
Much of it comes from my many years of actual experience working inside a growing, profitable CPA firm. Some of it also comes from my extensive reading…. of books, articles, newsletters, blogs, tweets, and so on.
There is so much great information out there now via the internet. Just a word of caution, as you probably already know – - not all of it is true. I’m trying to be very careful in what I pass along and I want you to also be very careful when you hear about or read about certain trends, strategies and best practices.
My mission today is to simply share an example.
On the topic of goal-setting, I have read about and heard about a study conducted by Harvard Business School over a 10-year period. The study reported that only 3% of Harvard MBAs actually write down their goals – 97% do not. The study also reported that the 3% ended up being much more successful and, over the 10-year period, were making ten times as much as the other 97% combined.
This study eventually was discovered to be fiction. Here’s the answer to an inquiry made to Harvard “Ask a Librarian” site:
I think you are referring to the “Harvard Goals Study,” reports of which periodically surface in motivational literature. We have been asked repeatedly about this research, but we have never been able to find such a study. It is frequently cited as having transpired at Yale, but librarians there have not found a trace either.
Read the entire Harvard response here.
You can also read more about this goal-setting story here. I found it quite interesting.
The moral of the story? Be careful out there!
Repetition does not transform a lie into a truth.
Franklin D. Roosevelt
Monday, December 30th, 2013
Yes, I call it the PCO – Partner Comp Ordeal. It happens at most CPA firms in December.
All partners received adequate salaries during the year (which need to be set using logic and historical information – not every partner gets the same amount). Then in December, the remaining profit needs to be allocated to the owner group (with some extra usually going to non-owner owners – an oxymoron to me anyway).
There is no exact one-way to do CPA firm partner compensation – - it has to align with the desires and needs of the actual owners and the size of the firm and number of partners. As for my opinion, it is the same as my opinion on a lot of things inside a CPA firm – Keep It Simple – as it relates to your size firm and PAY FOR PERFORMANCE.
I have several good friends and colleagues in the CPA firm consulting world who offer lots of good advice on this topic.
Marc Rosenberg’s blog post, ‘Tis the Season – The Comp Committee Season – is very informative and features 10 tips on how to run a Compensation Committee. Here just a few of the numbered topics in his post:
#1 – Communicate. If the partners don’t understand how the Compensation Committee works, and don’t understand how their income was determined, it will fail.
#3 – Align compensation with what the firm needs from each partner.
#5 – Resist the temptation to equalize final distributions. Only through a quirk of fate will all partners be equal contributors to the firm’s performance.
#7 – Make sure that the managing partner’s input on overall partner performance has more impact on income allocation than any other single partner, including Compensation Committee members.
#8 – Reward for more than production (management, mentoring staff, teamwork, loyalty).
#9 – Resist the temptation to adjust the final income allocation to avoid a War with a problem partner who will go ballistic if he/she sees an income number that fails to meet expectations.
I strongly urge you to re-read #9. Don’t, annually, avoid the obvious. Partners who are not role models, who are childish and who go ballistic should be gone. Make a plan for that in 2014.
Gary Adamson of Adamson Advisory offers The Partner Compensation Checklist. I think you will find it very helpful. I agree with his point that partner goal-setting and results are a very important item on the checklist.
Many firms still rely on formulas. I once knew a firm administrator who spent the majority of her time tracking the partner compensation formula stats throughout the year.
I like to quote Allan Koltin on partner compensation formulas: “Numbers ARE deceiving! Show me a formula and I’ll show you how to beat it. Trust leadership to make the call.”
On the topic of trust, I want to share a comment from David Maister in an interview about partner compensation:
“Recently, I was advising a firm on its compensation system. They didn’t like my recommendations. Finally, one of the partners said, ‘David, all your recommendations are based on the assumption that we trust each other and trust our executive and compensation committees. We don’t. Give us a system that doesn’t require us to trust each other!’”
Final thought… what do your people think? It’s not extremely important that you are one of the firm founders. It’s more about how you rated on the partner upward evaluation survey, the partner peer survey and the client satisfaction survey.
The only way you motivate people and change them is one-on-one. Everything else is window dressing.
Tuesday, December 10th, 2013
Year after year, the same old thing. The annual CPA firm holiday party – a dinner event at a local hotel ballroom or perhaps a country club. Yep, boring.
Firms are getting more and more creative. Some have entertainment that is not the same old “dinner/dance” theme. Who wants to dance in front of your co-workers??? We all remember Elaine’s famous dance style on Seinfeld.
I read an article this morning about Gleason & Associates, a Pittsburgh firm, who outgrew their usual restaurant and ended up at the James Gallery and Frame Foundry.
How about hosting your event at the local art museum, historical society, maybe even at one of your clients sites?
One year we had a ventriloquist. It was different, that’s for sure, and a lot of fun.
You find out your mistakes from an audience that pays admission.
Wednesday, December 4th, 2013
Many, many of you reading this blog post know me, you have been reading my “stuff” for a long time (I’ve been blogging daily since January 2006), you have heard me speak in person, worked with me via CPA firm associations or state CPA associations/societies….. You know I can’t help it. I have to speak my mind!
Why do so many women in accounting look like drab, boring technicians?
Sure, for special occasions they put on a suit or a dress and jacket, let their pasty legs show and just maybe wear some heels rather the flat, school-teacher-ish shoes they usually wear daily.
I do notice that CPA women working in public accounting dress slightly better than those working in private industry. Is it because they do have more actual client contact? Probably.
I’m not going to leave the men out of this…. CPA firm male leaders, maybe if you took the females along on business lunches and to meet with clients, they might have a reason to dress more stylishly. Also, a reminder for the men – - professional men, wearing business casual with no socks is so 1980s!
All of this came to mind because of some comments I read about Sheryl Sandberg and Marissa Mayer.
Read this article on the Vogue site about Mayer and her style.
Another interesting article (the one that first caught my attention) is on the Forbes site – To Heal Or Not To Heel: They Question For Ambitious Women by Bonnie Marcus. To me this one addresses the female CPA puzzle – - – do I wear the business suit costume and try to look like the males? That’s the Baby Boomer business culture where I “grew up” in public accounting. Now we have more choices and can still dress with power AND style.
Check out this picture of Sandberg on the cover of time.
Check out this article in Vogue – What would Marissa Mayer Wear? – A Workweek guide to office dressing. Click through the five days and see what you think.
I was always told, “dress like the position you aspire to.” If you are happy, dressing like an office worker-bee, nose to the grindstone, cranking out the work (the numbers), then I guess you are happy dressing in flats, black slacks and a cardigan.
All of this is food for thought… for men and women professionals working in the CPA profession. I hear so many male AND female leaders in CPA firms say, “I think our business casual dress policy has gone too far in the wrong direction.”
As one female said to me many years ago, “We aren’t going to adopt a business casual policy at our firm, the women would have to dress-up to get there.”
Career progression often depends upon taking risks and advocating for oneself - traits that girls are discouraged from exhibiting.
Tuesday, November 26th, 2013
While this is a huge topic inside CPA firms, I just want to cover it in very brief terms today.
The following quote that I read on Brad Lea’s Twitter feed was intended to be motivating, I’m sure. However, it sums up the feelings of many aging CPAs and accountants and it is not always a positive situation for younger partners and staff members at the firm:
“If I ain’t dead…. I ain’t done.”
I hope that your partner group has a plan to deal with this.
Women may be the one group that grows more radical with age.
Sunday, November 24th, 2013
This weekend’s “lighten-up” post is not a lighten-up one for me. It is somewhat off-topic and it is somewhat depressing (for me)! Please forgive me this weekend – I never try to be negative with my blog posts. Today is an exception.
You have probably read that the FCC is now formally considering a proposal that would allow you to make phone calls above 10,000 feet.
As a frequent flyer – I’m not at all happy about this. I am not looking forward to hearing people on each side of me gabbing away on their phones during a flight. It is bad enough hearing (mostly Baby Boomers and older) people talking (usually quite loudly) with their business associates when sitting at the gate awaiting a flight.
It’s bad enough now when we land and people begin immediately telephoning their family/friends, whoever, that they have landed.
Thank goodness young people don’t use the phone that much! They text, IM or tweet (in silence).
I understand, that if approved, the airlines will have the final say in whether they allow phone calls in the air. I guess each individual airlines policy might guide my choice of airlines, unless the all approve it. So far, Delta say they plan to continue their ban regardless of the FCC policy.
You talk too damn much and too damn much of it is about you.
Raymond Chandler, The Long Goodbye
Tuesday, November 19th, 2013
It might seem like I am constantly nagging you about employee engagement. Of course, it is very important for all employers but certainly critical for the CPA profession.
Image from Gallup
Per Gallup, an alarming 70% of American employees aren’t working to their full potential, and they’re slowing economic growth.
Let’s say that inside your public accounting firm you do have a lot of young, engaged employees. My first point is that in CPA firms, we often recruit bright, energetic, positive focused individuals from the college campus and we soon, so to speak…. suck the life out of them!
Young accounting graduates, like most people, want challenging work – continually challenging work so they can gain valuable experience. In your firm, do not let long-time managers cling to the more difficult work! Assign it to the seniors and staff and, if you have to, FORCE your managers and partners to do manager and partner-level work.
Okay, so you have many Engaged employees. Larry Myler, a contributor on the Forbes site, tells us that there is a level of employee beyond one that is engaged.
This level of engaged employee is called an Intrapreneur - An employee who is both willing and able to develop ad implement innovative solutions, thereby adding surprising value to some or all of the organization’s stakeholders.
An Intrapreneur is aware of the bigger picture, including strategic goals, customer desires, competitive threats and the need for continuous improvement. They act like leaders by creating value through cost-reducing and revenue-increasing innovation.
CPA leaders – Take a few minutes to follow the links provided and learn more about this type of employee. Then cultivate them. Don’t let the weeds choke them out.
Lead me, follow me, or get out of my way.
General George Patton