sage summit - fundamentals of high performing firms

July 21–26 | Washington, D.C. Gaylord National Resort and Convention Center July 21–26 | Washington, D.C. Gaylord National Resort and Convention Center

Fundamentals of High-Performing Firms How to Get (and Keep) a Competitive Edge Jennifer Warawa, vice president Partner Programs Tom Hood, CPA, CITP, CGMA

#SageSummit

July 21–26 | Washington, D.C. Gaylord National Resort and Convention Center July 21–26 | Washington, D.C. Gaylord National Resort and Convention Center

www.SlideShare.net/thoodcpa  

@jenniferwarawa  @tomhood  @MACPA  

#SageSummit  

Download  today’s  slides  at  …  

July 21–26 | Washington, D.C. Gaylord National Resort and Convention Center July 21–26 | Washington, D.C. Gaylord National Resort and Convention Center

Our Goals for This Session:

•  Challenge the way you think •  Challenge the status quo •  Identify two things you will change •  Engage you!

July 21–26 | Washington, D.C. Gaylord National Resort and Convention Center July 21–26 | Washington, D.C. Gaylord National Resort and Convention Center

http://macpa.cnf.io

Respond to a Poll

Ask a Question

Join the conversation

July 21–26 | Washington, D.C. Gaylord National Resort and Convention Center July 21–26 | Washington, D.C. Gaylord National Resort and Convention Center

1 Clearly defined vision 2 Deep understanding of where the future is headed 3 Measurable customer satisfaction strategy 4 Firm grasp on technology enablers 5 Set of internal key performance indicators 6 Effective communication strategy 7 Employee engagement and retention plan 8 Pulse on the market 9 Evolving learning plan 10 Good management of their brand

Ten Foundational Pillars of High-Performing Firms

July 21–26 | Washington, D.C. Gaylord National Resort and Convention Center July 21–26 | Washington, D.C. Gaylord National Resort and Convention Center

1 Clearly defined vision 2 Deep understanding of where the future is headed 3 Measurable customer satisfaction strategy 4 Firm grasp on technology enablers 5 Set of internal key performance indicators 6 Effective communication strategy 7 Employee engagement and retention plan 8 Pulse on the market 9 Evolving learning plan 10 Good management of their brand

Ten Foundational Pillars of High-Performing Firms

July 21–26 | Washington, D.C. Gaylord National Resort and Convention Center July 21–26 | Washington, D.C. Gaylord National Resort and Convention Center

1 Clearly defined vision 2 Deep understanding of where the future is headed 3 Measurable customer satisfaction strategy 4 Firm grasp on technology enablers 5 Set of internal key performance indicators 6 Effective communication strategy 7 Employee engagement and retention plan 8 Pulse on the market 9 Evolving learning plan 10 Good management of their brand

Ten Foundational Pillars of High-Performing Firms

July 21–26 | Washington, D.C. Gaylord National Resort and Convention Center July 21–26 | Washington, D.C. Gaylord National Resort and Convention Center

1 Clearly defined vision 2 Deep understanding of where the future is headed 3 Measurable customer satisfaction strategy 4 Firm grasp on technology enablers 5 Set of internal key performance indicators 6 Effective communication strategy 7 Employee engagement and retention plan 8 Pulse on the market 9 Evolving learning plan 10 Good management of their brand

Ten Foundational Pillars of High-Performing Firms

July 21–26 | Washington, D.C. Gaylord National Resort and Convention Center July 21–26 | Washington, D.C. Gaylord National Resort and Convention Center

1 Clearly defined vision 2 Deep understanding of where the future is headed 3 Measurable customer satisfaction strategy 4 Firm grasp on technology enablers 5 Set of internal key performance indicators 6 Effective communication strategy 7 Employee engagement and retention plan 8 Pulse on the market 9 Evolving learning plan 10 Good management of their brand

Ten Foundational Pillars of High-Performing Firms

July 21–26 | Washington, D.C. Gaylord National Resort and Convention Center July 21–26 | Washington, D.C. Gaylord National Resort and Convention Center

1 Clearly defined vision 2 Deep understanding of where the future is headed 3 Measurable customer satisfaction strategy 4 Firm grasp on technology enablers 5 Set of internal key performance indicators 6 Effective communication strategy 7 Employee engagement and retention plan 8 Pulse on the market 9 Evolving learning plan 10 Good management of their brand

Ten Foundational Pillars of High-Performing Firms

July 21–26 | Washington, D.C. Gaylord National Resort and Convention Center July 21–26 | Washington, D.C. Gaylord National Resort and Convention Center

1 Clearly defined vision 2 Deep understanding of where the future is headed 3 Measurable customer satisfaction strategy 4 Firm grasp on technology enablers 5 Set of internal key performance indicators 6 Effective communication strategy 7 Employee engagement and retention plan 8 Pulse on the market 9 Evolving learning plan 10 Good management of their brand

Ten Foundational Pillars of High-Performing Firms

July 21–26 | Washington, D.C. Gaylord National Resort and Convention Center July 21–26 | Washington, D.C. Gaylord National Resort and Convention Center

1 Clearly defined vision 2 Deep understanding of where the future is headed 3 Measurable customer satisfaction strategy 4 Firm grasp on technology enablers 5 Set of internal key performance indicators 6 Effective communication strategy 7 Employee engagement and retention plan 8 Pulse on the market 9 Evolving learning plan 10 Good management of their brand

Ten Foundational Pillars of High-Performing Firms

July 21–26 | Washington, D.C. Gaylord National Resort and Convention Center July 21–26 | Washington, D.C. Gaylord National Resort and Convention Center

1 Clearly defined vision 2 Deep understanding of where the future is headed 3 Measurable customer satisfaction strategy 4 Firm grasp on technology enablers 5 Set of internal key performance indicators 6 Effective communication strategy 7 Employee engagement and retention plan 8 Pulse on the market 9 Evolving learning plan 10 Good management of their brand

Ten Foundational Pillars of High-Performing Firms

July 21–26 | Washington, D.C. Gaylord National Resort and Convention Center July 21–26 | Washington, D.C. Gaylord National Resort and Convention Center

1 Clearly defined vision 2 Deep understanding of where the future is headed 3 Measurable customer satisfaction strategy 4 Firm grasp on technology enablers 5 Set of internal key performance indicators 6 Effective communication strategy 7 Employee engagement and retention plan 8 Pulse on the market 9 Evolving learning plan 10 Good management of their brand

Ten Foundational Pillars of High-Performing Firms

July 21–26 | Washington, D.C. Gaylord National Resort and Convention Center July 21–26 | Washington, D.C. Gaylord National Resort and Convention Center

1 Clearly defined vision 2 Deep understanding of where the future is headed 3 Measurable customer satisfaction strategy 4 Firm grasp on technology enablers 5 Set of internal key performance indicators 6 Effective communication strategy 7 Employee engagement and retention plan 8 Pulse on the market 9 Evolving learning plan 10 Good management of their brand

Ten Foundational Pillars of High-Performing Firms

July 21–26 | Washington, D.C. Gaylord National Resort and Convention Center July 21–26 | Washington, D.C. Gaylord National Resort and Convention Center

Remembering Your Vision

Why did you get in to accounting in the first place? What’s your “why”?

July 21–26 | Washington, D.C. Gaylord National Resort and Convention Center July 21–26 | Washington, D.C. Gaylord National Resort and Convention Center

Likely not this . . .

July 21–26 | Washington, D.C. Gaylord National Resort and Convention Center July 21–26 | Washington, D.C. Gaylord National Resort and Convention Center

Remembering Your Vision

Why did you get in to accounting in the first place?

Best Practices: Serving Existing Clients

July 21–26 | Washington, D.C. Gaylord National Resort and Convention Center July 21–26 | Washington, D.C. Gaylord National Resort and Convention Center

Best Practice #1 Existing Clients

Their clients know what services their firm offers beyond what they currently utilize.

July 21–26 | Washington, D.C. Gaylord National Resort and Convention Center July 21–26 | Washington, D.C. Gaylord National Resort and Convention Center

Best Practice #2 Existing Clients

They price for the value they deliver to their client, not by the hour.

July 21–26 | Washington, D.C. Gaylord National Resort and Convention Center July 21–26 | Washington, D.C. Gaylord National Resort and Convention Center

Best Practice #3 Existing Clients

They don’t undercharge for their services.

July 21–26 | Washington, D.C. Gaylord National Resort and Convention Center July 21–26 | Washington, D.C. Gaylord National Resort and Convention Center

Best Practice #4 Existing Clients

They interact with clients on a frequent and ongoing basis, not just when they are in the middle of an engagement.

July 21–26 | Washington, D.C. Gaylord National Resort and Convention Center July 21–26 | Washington, D.C. Gaylord National Resort and Convention Center

Best Practice #5 Existing Clients

They “surprise and delight.”

July 21–26 | Washington, D.C. Gaylord National Resort and Convention Center July 21–26 | Washington, D.C. Gaylord National Resort and Convention Center

Best Practice #6 Existing Clients

They get the “brilliant basics” right.

July 21–26 | Washington, D.C. Gaylord National Resort and Convention Center July 21–26 | Washington, D.C. Gaylord National Resort and Convention Center

Best Practice #7 Existing Clients

They know how happy (or unhappy) their existing clients are.

July 21–26 | Washington, D.C. Gaylord National Resort and Convention Center July 21–26 | Washington, D.C. Gaylord National Resort and Convention Center

Best Practice #8 Existing Clients

They evaluate their clients regularly and fire the bad ones. •  Which clients are profitable? Easy to work with? •  Compliant? Passionate? Driven? •  Paying for value? Paying on time?

Best Practices: Attracting and Acquiring New Clients

July 21–26 | Washington, D.C. Gaylord National Resort and Convention Center July 21–26 | Washington, D.C. Gaylord National Resort and Convention Center

Best Practice #9 New Clients

They know the correct answer to “Are you accepting new clients?”

July 21–26 | Washington, D.C. Gaylord National Resort and Convention Center July 21–26 | Washington, D.C. Gaylord National Resort and Convention Center

Best Practice #10 New Clients

They know how to market themselves to attract new clients.

July 21–26 | Washington, D.C. Gaylord National Resort and Convention Center July 21–26 | Washington, D.C. Gaylord National Resort and Convention Center

Best Practice #11 New Clients

They network.

July 21–26 | Washington, D.C. Gaylord National Resort and Convention Center July 21–26 | Washington, D.C. Gaylord National Resort and Convention Center

Best Practice #12 New Clients

They have their pitch mastered.

July 21–26 | Washington, D.C. Gaylord National Resort and Convention Center July 21–26 | Washington, D.C. Gaylord National Resort and Convention Center

Best Practice #13 New Clients

They have a strong online presence.

July 21–26 | Washington, D.C. Gaylord National Resort and Convention Center July 21–26 | Washington, D.C. Gaylord National Resort and Convention Center

Best Practice #14 New Clients

They ask their happy clients for referrals.

July 21–26 | Washington, D.C. Gaylord National Resort and Convention Center July 21–26 | Washington, D.C. Gaylord National Resort and Convention Center

Best Practice #15 New Clients

They have more than one tool in their toolbox. If all you have is a hammer, everything is a nail.

July 21–26 | Washington, D.C. Gaylord National Resort and Convention Center July 21–26 | Washington, D.C. Gaylord National Resort and Convention Center

Best Practice #16 New Clients

They never stop learning. 68% of firms surveyed have been in business for over 20 years.

July 21–26 | Washington, D.C. Gaylord National Resort and Convention Center July 21–26 | Washington, D.C. Gaylord National Resort and Convention Center

Best Practice #17 New Clients

They know why they are better than their competition.

July 21–26 | Washington, D.C. Gaylord National Resort and Convention Center July 21–26 | Washington, D.C. Gaylord National Resort and Convention Center

How did you do?

July 21–26 | Washington, D.C. Gaylord National Resort and Convention Center July 21–26 | Washington, D.C. Gaylord National Resort and Convention Center

Business Best Practices Be Bad at Something

You need to clearly define what you’re going to be bad at. www.uncommonservice.com

July 21–26 | Washington, D.C. Gaylord National Resort and Convention Center July 21–26 | Washington, D.C. Gaylord National Resort and Convention Center

Business Best Practices Leadership and Management

An employee issue is never the employee’s fault.

Good managers are responsible for teaching, coaching, managing, performance, and outcomes.

July 21–26 | Washington, D.C. Gaylord National Resort and Convention Center July 21–26 | Washington, D.C. Gaylord National Resort and Convention Center

Business Best Practices Importance of Culture

People do business with a culture.

July 21–26 | Washington, D.C. Gaylord National Resort and Convention Center July 21–26 | Washington, D.C. Gaylord National Resort and Convention Center

Business Best Practices Priority Setting

Study: Top ten managers of 125 companies around the world were asked individually to identify their companies’ five most critical objectives.

Managers of the 40 most profitable companies agreed on 6 to 12 objectives. For the 40 lowest performing companies, the range was 26-43.

July 21–26 | Washington, D.C. Gaylord National Resort and Convention Center July 21–26 | Washington, D.C. Gaylord National Resort and Convention Center

Business Best Practices Pricing and Value

As a Company, How Well Do You: •  Understand what your customers do (and do not)

value—in product? In service? In support? •  Continuously update your understanding of value

drivers by customer segment? •  Discuss and manage your total value proposition? •  Reflect and manage the relevant value drivers in the

execution of your sales, marketing, product, supply chain, and pricing programs?

Moderator: Tom Hood •  Named as fourth Most Influential in

Accounting by Accounting Today Magazine •  Top 150 Influencer by Linked-In •  Top 25 Influencers in Learning & HR by HR

Examiner •  Top 25 Public Accounting Thought Leaders

by CPA Practice Adviser •  Working on Learning Management with

AICPA/CPA2Biz, Cloud Curriculum, Performance Management /XBRL, Leadership & Generations

Tom Hood, CPA, CITP, CGMA CEO MACPA www.macpa.org and Business Learning Institute (BLI) www.blionline.org

http://www.linkedin.com/in/tomhood/

The New Normal - VUCA

Source:  Brian  Solis  author  of  The  End  of  Business  as  Usual  

The Challenge

The Challenge

Nothing happens without the commitment of our PEOPLE. ROI = ROP

The Challenge

The Question How do I increase my odds and make the right bets on which strategies to pursue and how to get them done in a VUCA world?

The Opportunity – Be the House

•  15 X – ROI on Strategy as Process & Alignment (Jim Collins – Built to Last)

•  8 X – Engagement & Trust (Gallup)

•  10X – Return on Leadership (Information Masters)

•  20 X – Return on Culture (Information Masters)

•  3 X - Return on Positivity (Dr. Barbara Frederickson)

“In order to buy-in, I have to weigh in.” – Pat Lencioni

ROI = ROP

ROP = ROA x ROC x ROL

A tale of two firms

•  One founded in 1921

•  One founded in 1977

•  One has 967 staff & $202 million in Revenue

•  One is Top 20 and the other is no longer in existence

www.bizlearning.net  

A tale of two more firms…

www.bizlearning.net  

And two more…

www.bizlearning.net  

Return on Investment Cri=cal  Areas   Investment   Return  

People   2%   20%  

Processes   2%   15%    

OrganizaCon  Structure   2%   10%  

Culture   1%   20%  

Leadership   1%   10%  

InformaCon   10%   15%  

Technology   82%   10%  

www.bizlearning.net  

Source:  InformaCon  Masters  –  Secrets  of  the  Customer  Race  by  John  McKean  

Strategy as Process: ���Our i2a Framework

www.bizlearning.net  

Sight & Insight

• Hindsight – How did we get here? •  Insight - SCOT • Foresight – What do we know

about the future?

The Paradox

"The faster things change, the more important it is to look ahead."

The Research

2 1,000 10,000

What CPAs have said about future: 1)  Changing demographics 2)  Increased globalization 3)  The technological revolution 4)  Issues around information security 5)  Shift to consumer and employee power 6)  Changes in the way we communicate 7)  Work-life challenges and conflict 8)  Information Overload 9)  Complexity of rules and standards 10) Economic uncertainty

INSIGHT: Top Trends to Watch

Create - Start with why?

www.bizlearning.net  

People don’t buy what you do, they buy why you do it!

Why Reassess & Renew

Where are we going

Link & Leverage

How are we going to get

there

Critical Turning Point The

Bounce

Copyright 2012 – Business Learning Institute

High  Performance  OrganizaCons  –  Strategic  &  SystemaCc  

www.bizlearning.net  

Accountability is # 1 Issue

www.bizlearning.net  

Engagement   Alignment   Commitment   Accountability  

Strategy as Process & Training aligned to strategy creates employee engagement

www.bizlearning.net  

Gallup studies proved that corporations with higher engagement levels generated: •  27% higher profits •  50% higher sales •  50% higher customer loyalty •  38% above average productivity “Employee Engagement is an outcome-based concept.

-The International School of Human Capital Management

Cascading Alignment throughout the organization creates Commitment

Firm-­‐wide  

Regional  &  PracCce  Levels  

Office  Level  

Individuals  Align  Their  Goals  to  the  Firm   Sample alignment worksheet from

MACPA

www.bizlearning.net  

www.bizlearning.net  

“In  a  period  of  rapid  change  and  increasing  complexity,  the  winners  are  going  to  be  the  people  who  can  LEARN  faster  than  the  rate  of  CHANGE  and  faster  than  their  COMPETITION.”  

-­‐  Tom  Hood,  CPA.CITP.CGMA  

Source: Research from CPA Horizons 2025 Project & the Business Learning Institute

Core Competencies Leadership  

CommunicaCons  Strategic  Thinking  

CollaboraCon  &  Synthesis  Technologically  Savvy  

Where do you start?

• Build on Strengths • Seek High Leverage

Opportunities • Involve your whole firm • Leverage Technology • Alignments & Misalignments

www.bizlearning.net  

Tom  Hood,  CPA.CITP  CEO  Maryland  Associa=on  of  CPAs  Business  Learning  Ins=tute  (443)  632-­‐2301  E-­‐mail  tom@macpa.org  Web  hWp://www.macpa.org  Blog  hWp://www.cpasuccess.com  Blog  hWp://www.bizlearningblog.com      

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July 21–26 | Washington, D.C. Gaylord National Resort and Convention Center July 21–26 | Washington, D.C. Gaylord National Resort and Convention Center

Creating your Competitive Edge – Sage Vision and Strategy Workshop for Accounting Professionals

P-231 Monday July 22, 2 - 5:30pm P-231 Tuesday July 23, 8:30 - Noon Room: Woodrow Wilson C