Non CPA Executives in CPA Firms Can it really work?

1
Non CPA Executives in CPA FirmsCan it really
work?
2
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

3
Embracing Change A new culture
4
Polling Question How Do You Feel When You Hear
The Word CHANGE?

• Bring it on!
• Let me think about it
• No thank you

5
Its what you dont know you dont know that can
cost you!Source UnknownResistance to change
can be expensive!L. Gary Boomer
6
(No Transcript)
7
The Missing Structure
Top 100 Firms gt30M
Whats The Difference
90 of Firms lt3M
8
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

9
The Leaders Goal Upgrade People Move to the
next stage.
Professionals Avoid Stages 1 Stage 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
10
TRUST..
11
The Economics of Trust
Low Trust

From The Speed of Trust by Stephen M. R. Covey
12
The Economics of Trust
High Trust

From The Speed of Trust by Stephen M. R. Covey
13
Coveys 13 Behaviorsto 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

14
Managing Change

• Not all changes are the same.

• Do Different Think Different Think About
  Thinking

15
The Ability to Change

• Motivators
• Fear
• Greed
• Peers
• Knowledge
• Principles Values

16
The Hawthorne Effect
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).
17
Management Leadership
1 2 3 4 5 6
7
Efficient Effective Improving Cutting Copying
Different Impossible
The 7 Levels of Change
18
How Individuals Deal With Change
19
The Non-cpa playersin your firm
20
(No Transcript)
21
(No Transcript)
22
Polling QuestionWhat Percentage Of Team Members
in Your Firm are Non-CPAs?

• 0 to 10
• 11 to 25
• 26 to 50
• 51 to 75
• 76 to 100

23
Exploring the possibilities of non CPA
executives.
24
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

25
Its the Law

• Check your state law
• New York Owners must hold CPA designation
• Other States 49 must hold CPA designation

26
Management LevelLeadership Level

• MP/CEO
• Management Team
• Leading Everyone in the Firm

27
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
28
Managements Challenges

• Generational issues
• Innovation
• Risk management
• Performance
• Collaboration
• Teamwork

29
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

30
The Management Team
Leadership
The Effect
M a n a g e m e n t
31
Polling QuestionWhat 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

32
What is the C Suite and can it really work in
an accounting firm?
33
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

34
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

35
CFO Chief Financial Officer

• Executive Committee member
• Firm financial master
• Staff payroll and benefit master
• Bookkeeper supervision
• Firm insurance manager

36
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

37
CLO Chief Learning Officer

• Adult Education background
• Curriculum development
• Communication expert
• Connections with outside teachers/trainers
• Strategic Thinker
• Firm Cheerleader

38
Identifying the right fit for your leadership
group
39
Polling QuestionWill Your Firm Be Hiring Any New
Team Members at the Management Level in the Next
Year?

• Yes
• No
• Unsure

40
Im 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

41
Workplace Diagnostics
Kolbe B Index Workers self-Expectations
Kolbe A Index IndividualsRealities
Significant differences among conative Realities,
Expectations and Requirements cause over 70 of
work-related stress.
Kolbe C Index Evaluators functional
Requirements
42
Synergy Algorithm
Team Synergy

• Kolbe has proven
• Without synergy, teams
• are doomed to fail.
• Kolbe also makes synergy
• Definable
• Quantifiable
• Predictable
• Improvable

43
Validity in predicting success
Who Will Work Well

Predictor
Performance Ratings
Kolbe A Index
.82
Cognitive Test Score
.53
Biographical Data
.37
Reference Checks
.26
Education
.22
Interviews
.14
College Grades
.11
.10
Interest
-.01
Age
The Validity of Different Predictors of Job
Performance
Source Wall Street Journal
44
Kolbe RightFit

• Ease of use
• Predictive
• Internet-based
• Screening Tool
• Meets and exceeds EEOC requirements

45
Kolbe Selection Process
46
How to get started
47
Steps To Moving Toward A New Culture

1. Hire people with integrity, intelligence
   energy.
2. Build the management administrative teams
   around the leader(s).
3. Use the Kolbe Index and Synergy Report.
4. Utilize non-accountants in many of the positions.
5. Team members need personal development programs.
6. Develop managers. Talent leaves bad managers,
   not firms.
7. Spend time to think, plan and grow.
8. Technology is the accelerator. Get digital ASAP.
   
9. Successful firms have successful business models.
10. Employee recognition is as important as planning
    and accountability.
11. READ!!!

48
Resources
49
Thank you!

• sandra.wiley_at_boomer.com
• www.boomer.com