Archive for the ‘Change’ Category

Wednesday, January 22nd, 2020

Holding Everyone Back

“Productivity is being able to do things that you were never able to do before.” – Franz Kafka

I have seen it many, many times. You have seen it inside your own firm. Certain people simply opt-out of learning new processes, procedures and new technology. They do things the way they have always done them.

I used to recommend that you ignore them, work around them and take the majority of your people forward. Don’t let one person sink the whole ship. I don’t want you to make it easy for these non-compliant people. If they can’t keep up, don’t make another person do the work for them.

This often happens with older partners and especially with owners who have supposedly retired but continue to work at the firm. They will definitely have difficulty keeping up with the firm technology and usually expect an admin person or some other staff to “take care of them.”

All this came to mind because of a recent tweet by my good friend, Dustin Hostetler (@Flowtivity). Here’s his tweet and I agree!

Firms are not maximizing their technology investment until all team members are embracing the technology. Having workarounds for certain individuals because they don’t know how to use it (or won’t learn) to perform their function of the process holds everyone back.

  • The critical ingredient is getting off your butt and doing something. It's as simple as that. A lot people have ideas, but there are few who decide to do something about them now. Not tomorrow. Not next week. But today!
  • Nolan Bushnell

Tuesday, January 21st, 2020

Reading For Tax Professionals

“Am I unhappy at my job?” – Tony Nitti

Whether you are a tax professional, another accountant or an admin professional working inside a public accounting firm I hope you will take the time to read this Forbes article written by Tony Nitti.

It is titled, The Five New Year’s Resolutions Every Tax Pro Should Make.

I know! You are busy. You are always busy. Find the time to read.

  • You don't have to love your career every day.
  • Tony Nitti

Thursday, January 16th, 2020

Rainmakers Retiring

“What differentiates sellers today is their ability to bring fresh ideas.” – Jill Konrath

In many CPA firms, the most successful rainmakers are still in the baby boomer category. Yet, as we all know, baby boomers are retiring at the rate of 10,000 per day.

Who will replace your top rainmaker(s)? This is a valid concern in many accounting firms. But, times are changing and so is the role of the CPA firm rainmaker.

In an informative article via Accounting Today, written by Lee Frederiksen, he notes that the rainmaker model is beginning to dry up!

Attracting new clients used to be based on the personalities of certain partners. These partners were out and about in the business community and made contacts that led to new business.

Now, a prospective client has checked out the firm, it’s leaders and the services they provide before anyone at the firm has actually met them. Future clients are searching for the firm with the right expertise to solve their specific business challenges. Hopefully, your firm possesses the services and expertise they are looking for and they can find it on your website.

Be sure to read the entire article.

  • The way to get started is to quit talking and begin doing.
  • Walt Disney

Monday, January 6th, 2020

Less Talk, More Doing

“Power should be reserved for weightlifting and boats, and leadership really involves responsibility.” – Herb Kelleher

January is here. Now you have an excuse for procrastinating on many things that need to be done inside your firm. Things that will help you keep pace with current trends in the CPA profession.

You have clients to serve – audits to perform, taxes to prepare – that’s a big part of what you do, especially January through April 15.

For many, the strategic plan, that you talked about last summer goes on hold for a large portion of the year. I suggest you follow Herb Kelleher’s advice:

Kelleher

 

  • You don't hire for skills, you hire for attitude. You can always teach skills.
  • Herb Kelleher

Friday, January 3rd, 2020

CPA Management Newsletter

“One thing is sure. We have to do something. We have to do the best we know how at the moment. If it doesn’t turn out right, we can modify it as we go along.” – Franklin D. Roosevelt

My January Solutions For CPA Firm Management newsletter went out yesterday. If you did not receive a copy and would like to – sign up here.

Hopefully, it will help you keep pace with the changing world of CPA firm management.

  • You'll never get bored when you try something new. There's really no limit to what you can do.
  • Dr. Seuss

Tuesday, December 3rd, 2019

My Ramblings About Mergers

“A dream doesn’t become reality through magic; it takes sweat, determination and hard work.” – Colin Powell

You have observed it. In the last several years, many mid-size firms have merged-up into the Top 100 (the AICPA calls this group the Major Firms Group).

The firms in the Major Firm Group have also joined forces to form even larger CPA firms. It is an interesting time in the CPA profession. The big get bigger and many firms I have known and admired for years have disappeared.

An interesting statistic from the AICPA, almost 40% of the Major Firms Group from the year 2000, no longer exists.

This week’s announcement about Skoda Minotti joining Marcum brought all this to mind. Read the press release here. Marcum has had phenomenal growth and success under Jeffrey Weiner’s leadership.

So, mid-size firms are disappearing. However, mergers don’t always lead to a happy life once the honeymoon is over. A lot of the big mergers will result in spin-offs and smaller firms will form and thrive.

  • I always say, complacency is the kiss of death.
  • Shari Redstone

Tuesday, November 26th, 2019

New Rules of Work

“Disruption requires us to think differently about work.” – Sharlyn Lauby

I’m sure you have noticed, finding, hiring, and retaining talented people has become more and more difficult. The AICPA PCPS 2019 Top Issues names Finding Qualified Staff as the top issue in every firm size category (except sole proprietors).

In the accounting profession, everyone is talking about disruption and the need to change how things have been done in the past. The work and the workforce has changed and it requires us to think differently about work.

Sharlyn Lauby (@hrbartender) has written an excellent post: The 7 New Rules of Work – Workforce Readiness In the Digital Age. I urge you to read it and share it with all the partners and HR leaders in your firm.

The rules she describes come from a keynote she heard by Polly LaBarre, author of the New York Times best-seller “Mavericks at Work: Why The Most Original Minds in Business Win.”

It is important to create rules that apply all the time and to let those rules drive company culture.

The rules are:

  1. Everyone has power
  2. Nobody is smarter than everyone
  3. All ideas are heard
  4. Challenging ideas is acceptable and encouraged
  5. Passion is the most powerful currency
  6. People design their own jobs
  7. Values rule decision-making and accountability

Please read the article. It gives good advice to managers and HR leaders about these seven rules. Staying current on trends in hiring and retaining will help you win the talent wars in the CPA profession.

  • Company values should already be the guiding principles of the organization.
  • Sharlyn Lauby

Thursday, November 21st, 2019

Succession Planning – What Are You Forgetting?

“The truest wisdom is a resolute determination.” – Napoleon Bonaparte

CPAs have been immersed in the process of succession planning for years.

As the Baby Boomers have aged and retired succession planning for firms took on a whole new life. How will the firm survive without me? Who will take over my client relationships? And, the continuing statement made by retiring partners, “We don’t have anyone who can replace me!”

When I hear that statement I always ask, “Whose fault is that?”

As you approach succession planning, I am sure you are making sure that your successors have all the experience and technical knowledge that public accounting demands. But, they need more.

According to Bruce Tulgan, a writer specializing in management training and generational diversity in the workforce, “One of the hardest things about succession planning is what I refer to as ‘wisdom transfer’—passing on institutional knowledge and soft skills to new leaders. How are you tackling wisdom transfer in your organization?”

What are you, as a firm and as individual senior partners, doing to be sure that you are making that “wisdom transfer” to the next generation of firm leaders?

  • Foolishness is a twin sister of wisdom.
  • Witold Gombrowicz

Monday, November 18th, 2019

If Mom Says No – Ask Dad

“If everyone is moving forward together, then success takes care of itself.” – Henry Ford

Beware of the age-old behavior that kids use – They want something and they ask their mother. Then, if Mom vetoes the activity, they go behind her back and ask their father (without telling him they already asked Mom). Maybe, just maybe, Dad will say yes and they are very happy and proceed to move ahead.

This occurs in accounting firms. An employee wants to do something a certain way. The partner on the project says, “No, do it according to the firm procedures.” The employee seeks out a different partner, perhaps one they work for more often, and whines about having to do the client project a certain way when they can do it faster “the old way.” The second partner, not wanting to get into a big discussion, just says “Do it however you think is best.”

Owners should be united in many ways even in how work is processed. Of course, they should discuss the processes, modify if necessary but then commit to the processes they helped establish.

Partner unity (in all things) is important in becoming a one-firm firm rather than a group sole-practitioners under one roof. I call those firms silo firms. You can be a silo firm and make decent money but don’t call yourself a one-firm firm if you really aren’t one.

 

 

  • Individual commitment to a group effort--that is what makes a team work, a company work, a society work, a civilization work.
  • Vince Lombardi

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