Non CPA Executives
in CPA Firms
Can it really work?
Agenda
• It starts with Change Management….
• Exploring the possibilities of non CPA
executives.
• What is the “C Suite” and can it really work in
an accounting firm?
• Identifying the right fit for your leadership
group.
• How To Get Started
EMBRACING CHANGE
A NEW CULTURE
Polling Question
How Do You Feel When You Hear The
Word “CHANGE”?
• Bring it on!
• Let me think about it
• No thank you
It’s what you don’t know you don’t
know that can cost you!
Source: Unknown
Resistance to change can be expensive!
L. Gary Boomer
Think
Change
Develop
Differently
Actions
Talent
Vision
Change
Define Client
& Plan
Beliefs
Criteria
UpSideDown
Change
Budget
Culture
Define
Be
Accountable
Results
Compensation
10 X
Growth
Top 100 Firms >$30M
90 % of Firms <$3M
Culture Also Determines
•
•
•
•
•
•
How you handle tension
Whether you address or ignore conflict
Strength of agreements
Emotional commitment
Ability to achieve growth
Ability to change
Culture
The Leader’s Goal: Upgrade People – Move to the next stage.
Stage 1
Alienated
Stage 2
Separate
Professionals
Life sucks
My life sucks
Professionals skip
Observers
Avoid
Gang Style
Can’t turn stars
Rugged Individual
into a Team
Theft is common
Stages Departments
1&
Stage
2
5%
25%
Stage 3
Personal
I am great
Competitive
Personal Agendas
Charge hours
Personal wins
Knowledge is
power
I don’t have time
50%
Stage 4
Partnership
We are great…
They are not…
Outcomes
Shared Vision
Transparency
Accountability
Sense of Pride
18%
Stage 5
Team
Life is great
Core Values
Innovative
Teams
Leadership
Vision
Inspiration
2%
Firms work in multiple stages – Executives/Leaders should be at higher stages
Words and relationships determine the stage your firm is in.
To move from one stage to another requires external coaching.
The process is slow.
Resources: Tribal Leadership, by Dave Logan, John King, & Halee Fischer-Wright
Good to Great, by Jim Collins
The Economics of Trust
Low Trust =
=
From The Speed of Trust by Stephen M. R. Covey
The Economics of Trust
High Trust =
=
From The Speed of Trust by Stephen M. R. Covey
Covey’s 13 Behaviors
to increase trust
•
•
•
•
•
•
•
Straight talk
Demonstrate respect
Create transparency
Right “Wrongs”
Show loyalty
Deliver results
Get better
• Confront reality
• Clarify expectations
• Practice
accountability
• Listen first
• Keep commitments
• Extend trust
MANAGING CHANGE
Not all changes are the same.
Do Different – Think Different – Think About Thinking
The Ability to Change
Motivators
•
•
•
•
•
Fear
Greed
Peers
Knowledge
Principles & Values
The Hawthorne Effect
Productivity
Increases
The Hawthorne effect is a form of reactivity, and describes a temporary change to behavior or performance in
response to a change in the environmental conditions, with the response being typically an improvement. The term
was coined in 1955 by Henry A. Landsberger when analyzing older experiments from 1924-1932 at the Hawthorne
Works (outside Chicago).
Management
1
2
3
Leadership
4
5
6
7
Efficient Effective Improving Cutting Copying Different Impossible
The 7 Levels of Change
How Individuals Deal With Change
THE NON-CPA PLAYER’S
IN YOUR FIRM
MP
Administrative
Partner
Director of IT
Help Desk
Network
Administrator
Tax Partner
Audit Partner
Consulting
Partner
Finance
Manger
Firm
Administrator
Tax Managers
Audit
Managers
Consulting
Mangers
Bookkeepers
Human
Resources
Tax Staff
Audit Staff
Consulting
Staff
Training
CEO/MP
CIO
Help Desk
Network
Administrator
CFO
COO
Tax Partner
Audit Partner
Consulting
Partner
Bookkeepers
Human
Resources
Tax Managers
Audit
Managers
Consulting
Mangers
Training
Tax Staff
Audit Staff
Consulting
Staff
Polling Question
What Percentage Of Team Members in
Your Firm are Non-CPA’s?
•
•
•
•
•
0 to 10%
11 to 25%
26 to 50%
51 to 75%
76 to 100%
EXPLORING THE POSSIBILITIES OF NON
CPA EXECUTIVES.
Accounting
Professionals
•
•
•
•
•
Start without the CPA designation
Setting the expectations for their career
Staff – Senior – Manager – Principal – Partner
Does it take a “carrot”?
Not just about expectations – think about the
law
It’s the Law
• Check your state law
• New York – Owners must hold CPA designation
• Other States – 49% must hold CPA designation
Management Level
Leadership Level
• MP/CEO
• Management Team
• Leading Everyone in the Firm
5 Levels of Leadership
5. Executive
4. Effective Leader
3. Competent Manager
2. Contributing Team Member
1. Capable Individual
Source: Good to Great by Jim Collins
Management’s Challenges
•
•
•
•
Generational issues
Innovation
Risk management
Performance
– Collaboration
– Teamwork
Management Skills &
Tools
•
•
•
•
•
•
•
•
•
•
Project management
Team building
Conflict resolution
Performance management
Accountability
Delegation strategies
Meeting management
Client service
Communication techniques
Business development
•
•
•
•
•
•
•
•
•
•
90 Day Game Plans
Unique processes
Risk management
Client analysis & value
Building a peer network
Change management
IT – the accelerator
Pricing
Training and learning
Mentoring versus coaching
The Management Team
L
e
a
d
e
r
s
h
i
p
M a n a g e m e n t
Polling Question
What Percentage of your MP time is spent
on Managing the Firm? (Non client
responsibility)
•
•
•
•
1 to 25%
26 to 50%
51 to 75%
76 to 100%
WHAT IS THE “C SUITE” AND CAN IT
REALLY WORK IN AN ACCOUNTING
FIRM?
CEO – Chief Executive Officer
• Deliver consistent results
• Utilize the 80-20 rule
• Put the best people in charge of the greatest
opportunities
• Eyes on the future with current reality
• Evaluated on individual and team basis
COO – Chief Operations Officer
•
•
•
•
•
•
•
Executive Committee member
Glue that holds the firm together
Master communicator
Human Resources
Training and Learning
CEO/MP right (and left) arm
High level position
CFO – Chief Financial Officer
•
•
•
•
•
Executive Committee member
Firm financial master
Staff payroll and benefit master
Bookkeeper supervision
Firm insurance manager
CIO – Chief Information Officer
• Executive Committee member
• Thinks about how to implement technology
strategically
• Hardware and software expert
• Extraordinary people person
• Excellent process developer
• Sees the training needs
CLO – Chief Learning Officer
•
•
•
•
•
•
Adult Education background
Curriculum development
Communication expert
Connections with outside teachers/trainers
Strategic Thinker
Firm Cheerleader
IDENTIFYING THE RIGHT FIT FOR
YOUR LEADERSHIP GROUP
Polling Question
Will Your Firm Be Hiring Any New Team
Members at the Management Level in the
Next Year?
• Yes
• No
• Unsure
I’m Intrigued,
where do I start?
•
•
•
•
Current Organizational Chart
Identify Challenges - Create a Synergy Report
Re-organize Where Needed
Hiring Process
– Job Description
– Expectations
– Interview
– Hire
Workplace Diagnostics
Kolbe A
Index
Individuals’
Realities
Kolbe C™ Index
Evaluator’s
functional
Requirements
Kolbe B™
Index
Workers’ selfExpectations
Significant differences
among conative
Realities, Expectations
and Requirements
cause over 70% of
work-related stress.
41
Team Synergy
Synergy Algorithm
Kolbe has proven:
• Without synergy, teams
are doomed to fail.
Kolbe also makes synergy:
• Definable
• Quantifiable
• Predictable
• Improvable
42
Who Will Work Well
Validity in predicting success
Predictor
Performance Ratings
Kolbe A Index
Cognitive Test Score
Biographical Data
Reference Checks
Education
Interviews
College Grades
Interest
Age
.82
.53*
.37*
.26*
.22*
.14*
.11*
.10*
-.01*
The Validity of Different Predictors of Job Performance
*Source: Wall Street Journal
43
Kolbe RightFit™
• Ease of use
• Predictive
• Internet-based
• Screening Tool
• Meets and exceeds EEOC
requirements
44
Kolbe Selection Process
45
HOW TO GET STARTED
Steps To Moving
Toward A New Culture
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
Hire people with integrity, intelligence & energy.
Build the management & administrative teams around the leader(s).
Use the Kolbe Index and Synergy Report.
Utilize non-accountants in many of the positions.
Team members need personal development programs.
Develop managers. Talent leaves bad managers, not firms.
Spend time to think, plan and grow.
Technology is the accelerator. Get digital ASAP.
Successful firms have successful business models.
Employee recognition is as important as planning and accountability.
READ!!!
Resources
Thank you!
sandra.wiley@boomer.com
www.boomer.com