Archive for the ‘Change’ Category

Wednesday, November 13th, 2019

Solutions Rather Than Problems

“Great vision without great people is irrelevant.”–Jim Collins

CPAs, along with all others who are hiring, are looking to hire people who bring solutions rather than problems. As amazing as it seems, CPAs tend to keep people for years who are definitely problems.

Per FAST Company, when asked nearly half of recruiters and hiring managers cited potential as the number-one factor, beating out experience (37%), personality (16%), and education (2%).

When you are hiring, are you looking for potential? I have observed that CPA hiring managers are usually looking for experience. The fact is experienced accountants, no matter what their level, are very hard to find and even more difficult to keep. Plus, they always bring “baggage” with them.

Hopefully, you have a strong intern program and are hiring from that pool of talent in an effort to build your firm for the future.  In this day and age, you need to look for candidates who have the willingness and ability to grow and adapt to new circumstances. The best employees are lifelong learners and are always seeking new experiences. Does that sound like the accountants on your staff? I doubt it. Many CPAs, not all, are known for avoiding change (and new experiences).

As you hire the new generation of accountants, I think you will find candidates who have the willingness and ability to grow and adapt. Maybe it is time to update your interview and selection process. (I have an Interview & Selection Guide that is available for purchase. Contact me if you are interested.)

 

  • You cannot push anyone up the ladder unless he is willing to climb it.
  • Andrew Carnegie

Tuesday, November 12th, 2019

Should Sole Practitioners Have Retreats?

“Stop thinking in terms of limitations and start thinking in terms of possibilities.” – Terry Josephson

If you are part of a smaller firm, with one owner or two partners and are reading this blog – my answer is a resounding YES!

Just because you don’t have a multi-partner firm doesn’t mean you should not devote a special time and place for strategic planning. Try involving your entire team in the planning session. When I have facilitated these types of planning sessions, the employees contribute an amazing amount of relevant ideas and suggestions.

Sole practitioners who include their entire team in sculpting the firm’s future are making a positive difference for their firms. I believe it is a tactic that smaller firms should embrace wholeheartedly. It’s not too late to have this type of session in December or early January. It could even be a half-day event with a follow-up session in late April.

  • Take a chance! All life is a chance. A person who goes farthest is generally the one who is willing to do and dare.
  • Dale Carnegie

Monday, November 11th, 2019

The Problem Might Be You

“Influence means your behaviors matter. The people around you – to some degree – reflect you.” – Dan Rockwell, Leadership Freak

If you are a partner in the firm and it bothers you when people are not punctual yet, you often come into the office late, others think it is okay.

If you are the manager on a review engagement and because you are experienced, you cut a corner or two, others think it is okay.

If you are at the Senior level in a firm and you are not completely accurate and punctual recording your time on jobs, others think it is okay.

If you are the firm administrator and you occasionally take an extended lunch hour for no particular reason, others think it is okay.

No matter what your title, your peers and others observe what you do and are influenced by your actions. What you do and the behaviors you adopt make a difference – you are an influencer.

You can also strive to be a GOOD example. That also influences others.

 

  • Example is not the main thing in influencing others. It is the only thing.
  • Albert Schweitzer

Wednesday, November 6th, 2019

New CPAs Have a Challange

“I’m still learning.” – Michelangelo

From NASBA:

The body of knowledge for newly licensed CPAs is growing. Compared to 1980, today there are:

Three times as many pages in the Internal Revenue Code

Four times as many accounting standards

Five times as many auditing standards

That’s why, to me, CPAs must be the champions of life long learning!

  • Learning is not attained by chance, it must be sought for with ardor and attended to with diligence.
  • Abigail Adams

Monday, November 4th, 2019

Be Clear About Your Purpose

“It’s not enough to have lived. We should be determined to live for something.”  Winston Churchill

The partners go away for a couple of days and come back with a firm mission statement. Does that inspire you? I doubt it. In many firms, it is just another “flavor of the month” and soon no one will even be able to recite it.

I like the new trend in calling it (mission statement) a statement of purpose. What is the purpose of your firm? What are you trying to achieve?

Many owner groups struggle with defining and living, their purpose. Some even copy a purpose from another firm and roll it out to their team as if it has real meaning to the owners.

Per an interesting article via Harvard Business Review, a truly powerful purpose statement is one that achieves two objectives: clearly articulating strategic goals and motivating your workforce.

If you want to find and retain top talent, they must know and understand your firm’s purpose – I mean really, not just some fancy words.

Surveys tell us that a large percentage of employees don’t feel fully connected to their firm’s purpose, they don’t see the value they create and that their jobs don’t allow them to fully leverage their strengths.

This adds up to a crisis of purpose. And, what follows along is a communication crisis. As I continue to say – most problems I encounter inside accounting firms can be traced back to poor, or lack of, communication.

Read and share the HBR article with your firm leaders. It is titled, Why Are We Here? Good question.

  • Workers feel lost. And over time, a lack of direction saps motivation; people begin backing away from the challenges required to achieve the firm’s articulated goals.
  • Sally Blount & Paul Leinwand, authors HBR

Wednesday, October 30th, 2019

What If They Stay?

“To avoid criticism, do nothing, say nothing, and be nothing.” – Elbert Hubbard

I see it all the time, there are people who need to go. Owners hope and pray they will eventually quit. In fact, they subtly take steps to encourage departure. But, what if they stay? Is it worth demotivating your top performers because poor performers experience no consequences for their lack of engagement, low performance, and bad attitudes?
Here’s a tweet from Bruce Tulgan, author of It’s Okay To Be The Boss:
Of course, there are employees we don’t want to lose. But who are you afraid will stay? Identify those people. Are they low performers? Do they have an attitude problem? Are they simply not engaged? If you can fix the problem, do it! Otherwise, you’ve got to let those people go.
  • No man goes before his time; unless the boss leaves early.
  • Groucho Marx

Monday, October 28th, 2019

Where Is Your Bus Going?

“Good is the enemy of great.” – Jim Collins

We hear it and read about it often – get the right people on the bus!

Getting the right people on the bus comes from the book Good to Great by Jim Collins. Those who build great organizations make sure they have the right people on the bus and the right people in the key seats before they figure out where to drive the bus.

The question is, where is the bus going? Wouldn’t you rather know where the bus was going before you get on?

I like a recent post by Seth Godin. I have included it below. It mentions something that CPA firms deal with all the time. The leader(s) seek to build consensus and try not to leave anyone out. Why not announce where your bus is going first and those who don’t want to go can get on another bus!

From Godin:

Where Does This Bus go?

One approach, which is tempting in the short run, is to wait until people are on the bus and then ask each person where they want to go. Seek to build consensus. Try not to leave anyone out.

The other approach, which works far better if you have a fleet of available buses, is to announce in advance where the bus is going. That way, anyone who wants to go where you’re headed can get onboard.

Enrollment is critical. Enrollment allows leaders to lead. Not by endlessly querying those that they seek to serve, but by announcing their destination and then heading there, with all deliberate speed.

  • Bad decisions made with good intentions, are still bad decisions.
  • Jim Collins

Friday, October 25th, 2019

How Proactive Is Your Audit Team?

“If it moves, tick it.” – Audit Senior, Audit Day 1

Things are rapidly changing in the CPA profession and the one area that seems to be changing most rapidly is the audit. Many firms are continuing to perform an audit the way they have always performed audits and that is why you need to make sure that your audit leaders are keeping pace with the current trends.

Be sure to read an article by Bill Curtis via Accounting Today: Why you and your audit team should consider a remote audit next year. Curtis is the partner-in-charge of the Birmingham office of Mauldin & Jenkins.

  • Audits cause a certain amount of disruption and inconvenience for the client.
  • Modern technology allow audit teams to share and receive data with clients from any location.
  • Remote audits save time and money.
  • The audit team will also be more efficient working in their home office environment with all its tools and comforts — multiple monitors, high-speed internet, familiar scanners and copiers and all the rest. The result is fewer hours needed to complete the work, and probably faster turnaround times for the financial statements company leaders are anxious to see.
  • Some audits can take place entirely in the digital realm, but most will still require some on-site time and in-person consultation.

There are a lot more positives about performing a remote audit, for the firm and for the client. Share this article with your audit leaders. Hopefully, your audit leaders are already sharing information like this with everyone in the firm and taking steps to utilize the amazing technology available today.

 

  • Remote audits are a trend that’s gaining traction rapidly, and it’s easy to see why their popularity is growing.
  • Bill Curtis

Wednesday, October 23rd, 2019

Disappointed & Embarrassed

“She overcame everything that was meant to destroy her.” Sylvester McNutt III

Women have been slowly but surely gaining ground within the CPA profession. I have been very proud of associations and firms that have made the commitment to provide the leadership development assistance and other resources women need to advance in their careers. These organizations follow through on those commitments.

Then there are others. The news this week is very disheartening. I was disappointed and embarrassed for the CPA profession. I was not shocked that this happened at one of the “big” firms. But I was shocked at what was presented to a group of female executives.

It is my observation that women are a foundational piece in almost every public accounting firm. Here’s the Male/Female professional staff breakdown via the Rosenberg survey:

  • Firms over $20M: 48%/52%.
  • $10-20M firms: 45%/55%
  • $5-10M firms: 43%/57%
  • $2-5M firms: 41%/59%
  • Under $2M: 35%/65%

Here are two different news articles covering the fiasco.

Empowerment Seminar Tells women They Have Small, Pancake-Like Brains

Ernst & Young training seminar told women not to “flaunt” bodies

  • The most dangerous woman of all is the one who refuses to rely on your sword to save her because she carries her own.
  • R. H. Sin

Monday, October 21st, 2019

Top Heavy

“The secret of getting ahead is getting started.” – Mark Twain

When it comes to MAP (Managing an Accounting Firm), one of the many things CPAs have focused on over the years is leverage. Leverage and a well-managed pyramid are key ingredients for a profitable CPA firm.

We have been talking about it for years….. Bill Reeb calls it the Upside Down Pyramid. It’s where partners work and work until they are “full” and then they push down to managers who work and work until they are “full” and only then do they push down to the staff. Meanwhile, staff members are sending emails asking for assignments!

upsidedownMany firms have evolved into a top-heavy culture because:

  • Generational issues, including the Baby Boomer bubble, Gen Xers and Millennials.
  • Lack of a firm-wide people plan with effective, consistent recruiting and staff development processes. Leaders don’t have a process to see enough new faces and they let people hang around too long.
  • Promoting non-partner-track people or sometimes marginal folks to higher positions because “We’re preserving staff continuity” and “it’s best for the client” – – when perhaps it is just the path of least resistance, or you have no one else to fill the role.
  • Partner compensation plans that focus on chargeable time. Partners stay busy first. Managers are doing staff work and no one has an incentive to push work down.
  • It’s just easier to do it myself and, besides, I’m a lot more efficient at it.

Do these sound familiar to you?

  • What counts is not necessarily the size of the dog in the fight - it's the size of the fight in the dog.
  • Dwight D. Eisenhower