Tuesday, March 8th, 2022

Exceptions & Rules

“I follow three rules: Do the right thing, do the best you can, and always show people you care.” – Lou Holtz

You expended a lot of effort in establishing the firm’s paperless processes/procedures. Most of your partners follow the rules. For some partners, you do this and that – print things off, provide paper, etc. How will you get ahead by making so many exceptions to the rules?

My grandson, Sam, when he was at that pre-school age always had a question. That question was, “Is that a rule?” For example – Grandma says, “Sam, please put your shoes in the closet.” Sam asked, “Is that a rule?” When I say yes, it was a rule. He mildly said, okay and put his shoes in the closet. Evidently, his mom and dad stressed that there were certain rules for behavior.

There are certain rules for behavior in CPA firms, too. Is it a rule that we review on screen? Yes, it is a rule. Is it a rule that we have our time in by 9:00 am the following day? Yes, it is a rule. Is it a rule that we have our billings done by the 5th of the month? Yes, it is a rule. You get the drift.

Firms make too many exceptions. Once my IT Manager said something that has stuck with me over the years. He said, “We are governed by rules but we operate by exception.” Oh, my! Don’t operate your firm by exception.

I advise my clients to not establish rules if they are going to break them. Partners will agree in a meeting to a specific process/procedure/guideline and then some leave the meeting with no intention of following that “rule.” A prime example is: We will stop work at 90 days if a client has not paid our fee. If partners cannot truly agree don’t establish the rule – policy – procedure.

I love the quote, above, by Lou Holtz. I had the wonderful experience of hearing him speak several years ago. It was one of the most motivating speeches I have ever heard.

  • "If you obey all the rules you'll miss all the fun."
  • Katherine Hepburn

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