Download - Advanced and CFO Skills
1 Copyright 2013–2014 AICPA Unauthorized Copying Prohibited AICPA Professional Development
Advanced Controller and CFO Skills
Presented by:Joseph M. Rugger CPA, CGMA,
St. Louis Missouri08.14.2014
2 Copyright 2013–2014 AICPA Unauthorized Copying Prohibited AICPA Professional Development
Advanced Controller and CFO Skills
Chapter Title
1Step 1: Improve Your Leadership Effectiveness by Looking Ahead
2 Step 2: Become an Effective Coach
3Step 3: Improve the Organization’s Performance Through Coaching
4Step 4: Improve Your Team’s Effectiveness Through Coaching
3 Copyright 2013–2014 AICPA Unauthorized Copying Prohibited AICPA Professional Development
Advanced Controller and CFO Skills (Continued)
Chapter Title
5Step 5: Improve Your Change Agent Skills Through Self-Coaching
6Step 6: Grow Your Skills as a Leader in the Middle
7 Step 6½: Improve by Making a Commitment
4 Copyright 2013–2014 AICPA Unauthorized Copying Prohibited AICPA Professional Development
Introductions
5 Copyright 2013–2014 AICPA Unauthorized Copying Prohibited AICPA Professional Development
• BRAMMS• “Remember that a person’s name is to that
person the sweetest and most important sound in any language.” Dale Carnegie, How to Win Friends and Influence People
• Name - a way to remember• What do you do?• Years of experience?
6 Copyright 2013–2014 AICPA Unauthorized Copying Prohibited AICPA Professional Development
7 Copyright 2013–2014 AICPA Unauthorized Copying Prohibited AICPA Professional Development
Leadership
- Think of someone who is a great leader- Can be someone you know- Can be living, dead, or famous- Write down their name
- What is it that makes them a great leader?
8 Copyright 2013–2014 AICPA Unauthorized Copying Prohibited AICPA Professional Development
1. Model the Way
2. Inspire a Shared Vision
3. Challenge the Process
4. Enable Others to Act
5. Encourage the Heart
The 5 Practices of Exemplary Leadership
By: Jim Kouzes & Barry Posmer
9 Copyright 2013–2014 AICPA Unauthorized Copying Prohibited AICPA Professional Development
Ron Rael
“I found there was more tome than I ever imagined.”
10 Copyright 2013–2014 AICPA Unauthorized Copying Prohibited AICPA Professional Development
Do You Have Courage?
• A courageous leader uses a mantle of power and personal persuasion to point out to others the right path to take.
11 Copyright 2013–2014 AICPA Unauthorized Copying Prohibited AICPA Professional Development
Like It or Not…
“The Controller/CFO is the conscience ofthe organization. Unleash your power!”
Ron Rael, The High Road Institute
12 Copyright 2013–2014 AICPA Unauthorized Copying Prohibited AICPA Professional Development
6½ Steps of Our Growth Plan
1. Lead better by looking ahead.
2. Become an effective coach.
3. Improve organizational performance through coaching.
4. Improve team performance through coaching.
5. Grow your change agent skills through self-coaching.
6. Grow your skills as a leader in the middle.
6½. Improve by making a commitment.
13 Copyright 2013–2014 AICPA Unauthorized Copying Prohibited AICPA Professional Development
Today’s Advanced Skills
• Thoughtful articulation• Crystal clear communication• Coaching• Honest self-assessing• Objective thinking• Critical thinking• Synthesizing• Team building• Long-term visioning• Stepping beyond your comfort zone!
14 Copyright 2013–2014 AICPA Unauthorized Copying Prohibited AICPA Professional Development
Chapter 1
Step 1: Improve Your Leadership Effectiveness
by Looking Ahead
15 Copyright 2013–2014 AICPA Unauthorized Copying Prohibited AICPA Professional Development
Who was looking ahead?
16 Copyright 2013–2014 AICPA Unauthorized Copying Prohibited AICPA Professional Development
A View of Our Future
17 Copyright 2013–2014 AICPA Unauthorized Copying Prohibited AICPA Professional Development
Our Future Role and Responsibilities
CFO & Controller's Future
Fulfiller of the 8 Spokes
Strategic Leader
Communicator
Consultant
Collaborator
Fulfiller of the 8 Spokes
Strategic Leader
Communicator
Consultant
Collaborator
18 Copyright 2013–2014 AICPA Unauthorized Copying Prohibited AICPA Professional Development
The Accounting Team’sResponsibilities
The 8 Spokes of Accounting
Partnership with operations
Cost control & profit
enhancement
Bridge building
Advisors to management &
board
Financial control
Liquidity & Working capitalmanagement
Regulatory compliance
Stewardship of financial
performance
Partnership with operations
Cost control & profit
enhancement
Bridge building
Advisors to management &
board
Financial control
Liquidity & Working capitalmanagement
Regulatory compliance
Stewardship of financial
performance
19 Copyright 2013–2014 AICPA Unauthorized Copying Prohibited AICPA Professional Development
The Accounting Team’sTransformed Responsibilities
Value Creation Accounting
Keepers of Data Keepers of Trust
To
Keepers of Data Keepers of Trust
To
20 Copyright 2013–2014 AICPA Unauthorized Copying Prohibited AICPA Professional Development
Key Financial Strategist
• You must redefine yourself as this.• Universal Theme #1 – Emphasis on Non-
Accounting Roles• Universal Theme #2 – Our Performance Gap• Universal Theme #3: The Collaborative Partnership
21 Copyright 2013–2014 AICPA Unauthorized Copying Prohibited AICPA Professional Development
• Jim Collins – Good to Great – Why do some companies make the leap and others don’t
• Level 5 Leaders – Windows and Mirrors
• The Bus• Confront the brutal facts• Hedgehog Concept• 3 Circles – culture of self discipline, technology as an accelerator and not as a change agent, the flywheel
22 Copyright 2013–2014 AICPA Unauthorized Copying Prohibited AICPA Professional Development
Chapter 2
Step 2: Become an Effective Coach
23 Copyright 2013–2014 AICPA Unauthorized Copying Prohibited AICPA Professional Development
• EntreLeadership by Dave Ramsey• Practical How to Business Guide• Most business problems are people
problems• Spend more time on Hiring• Developing KRA’s for every position• Creating a vision for your team• Passion beats almost anything –
especially talent• Treat other people the way you want
to be treated• Must listen to the podcast!
24 Copyright 2013–2014 AICPA Unauthorized Copying Prohibited AICPA Professional Development
25 Copyright 2013–2014 AICPA Unauthorized Copying Prohibited AICPA Professional Development
Coaching Is...
• Personalized, individualized training and support.• Building a relationship.
26 Copyright 2013–2014 AICPA Unauthorized Copying Prohibited AICPA Professional Development
Coaching Is Not...
• Controlling!• Micromanaging!• Managing!• Supervising!
27 Copyright 2013–2014 AICPA Unauthorized Copying Prohibited AICPA Professional Development
Skills Necessary for Coaching
• Teaching• Counseling• Guiding• Learning• Sharing
• Questioning• Relating• Listening• Intuitiveness• Creativity
28 Copyright 2013–2014 AICPA Unauthorized Copying Prohibited AICPA Professional Development
• The One Minute Manager by Ken Blanchard & Spencer Johnson
• Management and Leadership 101• Not just automatic – it is not just
the numbers• Not just democratic – it is not just
about the people• As leaders we are concerned with
both• One Minute Goals – clear
expectations• One Minute Praising – catch
people doing something right• One Minute Reprimands –
reprimand sandwich – no annual review surprises
29 Copyright 2013–2014 AICPA Unauthorized Copying Prohibited AICPA Professional Development
Managing the Millennial Generation
• Born in 1982 – 2004 • Largest generation• Inc Magazine’s 6 Keys
1. Over communicate all the time
2. Go heavy on the rewards and punishments
3. Set the Quality Bar High – especially writing skills
4. Keep accountability consistent and crystal clear
5. Be willing to meet halfway – display vulnerability
6. Help them focus on the big picture
30 Copyright 2013–2014 AICPA Unauthorized Copying Prohibited AICPA Professional Development
2 Great Reads for Millennials
• Jon Acuff – Start – Go from Average to Awesome– http://www.jonacuff.com/blog/books/
• Christine Hassler – The Twenty Something Manifesto
31 Copyright 2013–2014 AICPA Unauthorized Copying Prohibited AICPA Professional Development
Best Practice:Position Descriptions
Keepers of Data Keepers of Trust
To
32 Copyright 2013–2014 AICPA Unauthorized Copying Prohibited AICPA Professional Development
Define Your Value!
• Position Description defines:– Qualifications– Expected results– Impact on the organization– Authority levels– Job duties (minimal)– Special difficulties– Relationships– Other definitions
33 Copyright 2013–2014 AICPA Unauthorized Copying Prohibited AICPA Professional Development
Why Have a Position Description?
• Communicates expectations• Clarifies goals• Reduces overlaps and gaps• Reduces uncertainty• Documents performance• Teaches new employees• Gives definition to applicant
34 Copyright 2013–2014 AICPA Unauthorized Copying Prohibited AICPA Professional Development
How to Make a Position Description
• Results-oriented• Proactive• Flexible • Broad• Brief
35 Copyright 2013–2014 AICPA Unauthorized Copying Prohibited AICPA Professional Development
Chapter 3
Step 3: Improve the Organization’s
Performance Through Coaching
36 Copyright 2013–2014 AICPA Unauthorized Copying Prohibited AICPA Professional Development
• When I grow up
http://www.youtube.com/watch?v=Asf3Q85MS1U
37 Copyright 2013–2014 AICPA Unauthorized Copying Prohibited AICPA Professional Development
• How the Mighty Fall by Jim Collins• Hubris and arrogance born of
success• Undisciplined pursuit of more• Denial of risk & peril• Grasping for salvation • Capitulation to irrelevance or death
38 Copyright 2013–2014 AICPA Unauthorized Copying Prohibited AICPA Professional Development
Key Financial Strategist = Influencer
• Key role for the Key Financial Strategist is to influence the employer’s culture for the better.
• Not a responsibility you can opt out of.
39 Copyright 2013–2014 AICPA Unauthorized Copying Prohibited AICPA Professional Development
Culture Is…
• The tone at the top.• The mood, attitude, and atmosphere of an
organization.• The firm’s DNA.• A story that is enacted each day by your
employees.• “How things get done around here.” • How would you define “Servant Leadership”
40 Copyright 2013–2014 AICPA Unauthorized Copying Prohibited AICPA Professional Development
• Raving Fans by Ken Blanchard & Sheldon Bowles
• Best read on customer service I’ve come across
• In order to be successful in business we must take excellent care of our customers
1. Decide what you want – define a vision – what do you want to do
2. Find out what the customer wants – ask for feedback – listen – empathize – cultivate the relationship
3. Deliver the Vision + 1% - consistency +1 – Under promise & Over deliver
41 Copyright 2013–2014 AICPA Unauthorized Copying Prohibited AICPA Professional Development
Culture Mosaic – Parts of Your Story
42 Copyright 2013–2014 AICPA Unauthorized Copying Prohibited AICPA Professional Development
Personal Risk Spectrum
• Each of us defines ‘risk’ along this broad spectrum depending on what it is that we are risking and the value we place upon it.
Very Conservative
ConservativeMiddle of the Road
AssertiveAggressive
Black & WhiteFlying Without a Net
43 Copyright 2013–2014 AICPA Unauthorized Copying Prohibited AICPA Professional Development
Strategic Planning Flowchart
44 Copyright 2013–2014 AICPA Unauthorized Copying Prohibited AICPA Professional Development
Risk PlanningMission
Statement
Strategic Plan
Operating Plan
Financing Plan
Three BudgetsOp’s Cap B.S.
The Risk Management Program or Plan
45 Copyright 2013–2014 AICPA Unauthorized Copying Prohibited AICPA Professional Development
Accountability Is...
• A quality that is only noticed when missing.• Keeping my word, meeting our commitments, and
taking full ownership for my actions.• Accepting reality without finding fault, placing
blame, or hiding from the truth.
46 Copyright 2013–2014 AICPA Unauthorized Copying Prohibited AICPA Professional Development
Accountability Target
It starts at the core!
Responsibility
ME
Accountability
Empowerment
Self-activation
ME
US
ME
47 Copyright 2013–2014 AICPA Unauthorized Copying Prohibited AICPA Professional Development
Governance Is…
• A philosophy• A commitment• A promise
48 Copyright 2013–2014 AICPA Unauthorized Copying Prohibited AICPA Professional Development
“Active Atom” Keeps This from Going Chaotic
ReportingMethods
HR Practices
Control System
RiskManagement
Plans Rewards
PoliciesGoals
Budgets Commitments
DecisionsMeasurements
49 Copyright 2013–2014 AICPA Unauthorized Copying Prohibited AICPA Professional Development
Chapter 4
Step 4: Improve YourTeam’s Effectiveness
Through Coaching
50 Copyright 2013–2014 AICPA Unauthorized Copying Prohibited AICPA Professional Development
• David Letterman’s Top 10– http://www.youtube.com/watch?feature=endscree
n&NR=1&v=1Ihn-TIFPAM
51 Copyright 2013–2014 AICPA Unauthorized Copying Prohibited AICPA Professional Development
Tom Peters, Speaker/Author
“The role of a leader is to clearthe silly B.S. out of the way and
let the troops get on with the job.”
52 Copyright 2013–2014 AICPA Unauthorized Copying Prohibited AICPA Professional Development
• Gung Ho! By Ken Blanchard & Sheldon Bowles
• Lesson of the Squirrel – worthwhile work
• Lesson of the Beaver – in control of achieving the goal
• Lesson of the Goose – cheering each other on
• Great read on creating culture
53 Copyright 2013–2014 AICPA Unauthorized Copying Prohibited AICPA Professional Development
Today’s Realities
• The success and failure of any team is ultimately dependent on the quality of its leadership.
• Leadership is more about the people you lead than it is about you. If you do not know how to lead, you will be unable to tap into and bring forth the full potential of your followers.
54 Copyright 2013–2014 AICPA Unauthorized Copying Prohibited AICPA Professional Development
4 Best Practices
• You will be assigned one to study and coach Pat on:– Shape your employees’ teaming behaviors with a
solid structure. – Shape your employees’ accountability by
establishing behavior expectations.– Shape your employees’ behavior by using honest
feedback. – Shape your employees’ behavior with recognition
and rewards.
55 Copyright 2013–2014 AICPA Unauthorized Copying Prohibited AICPA Professional Development
Interdependence Is…
• Realizing that we cannot survive the rigors of work without cooperation from each other and coverage for any employee in distress.
• Displaying the attitude:– “If the team is to succeed, I must do everything in
my power to make that happen.”– “If I fail to deliver, then the team suffers and I let
down my team.”
56 Copyright 2013–2014 AICPA Unauthorized Copying Prohibited AICPA Professional Development
• Start with Why by Simon Sinek• People don’t buy what you do, they buy why you do it• MLK “I have a plan”• If you hire people just to do a job they will work for money• If you hire people who believe what you believe, they will work for
you with blood sweat and tears• Don’t sell the drill or the drill bit, sell the hole•
http://www.ted.com/talks/simon_sinek_how_great_leaders_inspire_action.html
57 Copyright 2013–2014 AICPA Unauthorized Copying Prohibited AICPA Professional Development
Team Tools
• Vision• Mission• Diversity
– Opinions– Experiences– Personalities
• Consensus
58 Copyright 2013–2014 AICPA Unauthorized Copying Prohibited AICPA Professional Development
Team Tools
• Structure– Rewards – Penalties and consequences – Communications systems– Work-tracking – Standards – Participation – Planning – FUN
59 Copyright 2013–2014 AICPA Unauthorized Copying Prohibited AICPA Professional Development
• The 5 Languages of Appreciation in the Workplace by Gary Chapman
1. Words of Affirmation2. Tangible Gifts3. Quality Time4. Acts of Service5. Physical Touch
• We all want to be appreciated in different ways
• Handwritten thank you notes• Restaurant gift cards• Email to the boss bragging on a team
member
60 Copyright 2013–2014 AICPA Unauthorized Copying Prohibited AICPA Professional Development
• Google’s CEO on Group Think:– http://www.youtube.com/watch?v=wPHL4paHv0o
61 Copyright 2013–2014 AICPA Unauthorized Copying Prohibited AICPA Professional Development
Consensus Is…
• An acknowledgement that the team is more valuable than the individual.
• Process for everyone to share her/his thoughts before deciding.
• Including everyone’s input and concerns.• Making a decision that will move the team ahead.• Proactively soliciting everyone’s concerns and
feelings known long before the decision is made (most critical aspect).
62 Copyright 2013–2014 AICPA Unauthorized Copying Prohibited AICPA Professional Development
Consensus Is Not…
• 100% agreement• Agreement by majority vote• Imposed by the leader• Impossible
63 Copyright 2013–2014 AICPA Unauthorized Copying Prohibited AICPA Professional Development
Consensus Spectrum
Closely Controlled
Control Shared
Directive
Consultative
Democratic
Consensus
100% Agreement
64 Copyright 2013–2014 AICPA Unauthorized Copying Prohibited AICPA Professional Development
Teams Use Consensus for…
• Resolving conflict• Meeting format• Consequences • Rewards• Communicating methods• Tracking work and progress on team and individual
goals• Attendance requirements• Acceptable participation levels• Soliciting honest input
65 Copyright 2013–2014 AICPA Unauthorized Copying Prohibited AICPA Professional Development
Interdependent AccountingTeam Characteristics
• Shared vision• Clear mission• Recognition of member contributions• Clearly defined roles• Mutual accountability• Team-based rewards
66 Copyright 2013–2014 AICPA Unauthorized Copying Prohibited AICPA Professional Development
Expectations and Standards Shape Behaviors
• Behaviors that are measured get attention.– People RE-spect what you IN-spect
• Chet Holmes, The Ultimate Sales Machine
• Clear expectations define the standards for employee behavior.– One Minute Manager Applications
• Rules about work that reinforce values identified in your Culture Statement.
67 Copyright 2013–2014 AICPA Unauthorized Copying Prohibited AICPA Professional Development
Employee Inculturalization Employee InculturalizationEmployee Focus
On Responsibilities
Supportive Culture
Norms:
-Support
-Recognition
-Coaching
-Involvement
-Empowerment
-Accountability
-Feedback
High
Low
*
Time on J ob
*Employee is inculturalized
On Pay & Benefits
Employee Focus
On Responsibilities
Supportive Culture
Norms:
-Support
-Recognition
-Coaching
-Involvement
-Empowerment
-Accountability
-Feedback
High
Low
*
Time on J ob
*Employee is inculturalized
On Pay & Benefits
68 Copyright 2013–2014 AICPA Unauthorized Copying Prohibited AICPA Professional Development
Feedback Is…
• The “truth” about you as I see it.• Get permission!• Explain the “Why”• The difference between being in the dark and knowing
where I stand.• Helping me to see if I am who I believe myself to be.• Providing me with tangible information on how I am doing.• The favorite tool of coaches because it creates two-way
dialogue.• Is there anything else I can do for you?
69 Copyright 2013–2014 AICPA Unauthorized Copying Prohibited AICPA Professional Development
4 Types of Feedback
• Silence – No feedback• Criticism – Negative feedback• Advising – Neutral feedback• Reinforcement – Positive feedback
70 Copyright 2013–2014 AICPA Unauthorized Copying Prohibited AICPA Professional Development
Is This for Me?
• People value a reward that clearly demonstrates recognition for their contributions.
71 Copyright 2013–2014 AICPA Unauthorized Copying Prohibited AICPA Professional Development
Reinforcement Chain
72 Copyright 2013–2014 AICPA Unauthorized Copying Prohibited AICPA Professional Development
Recognition Value Chain
73 Copyright 2013–2014 AICPA Unauthorized Copying Prohibited AICPA Professional Development
Recognition Strategy
Experience their supervisor practicing recognition
Then as INITIATORS
First as RECIPIENTS
Are “pulled” into the process
Like the way it feels
Employees:
“A Recognition-Loving Culture”
Experience their supervisor practicing recognition
Then as INITIATORS
First as RECIPIENTS
Are “pulled” into the process
Like the way it feels
Employees:
“A Recognition-Loving Culture”
74 Copyright 2013–2014 AICPA Unauthorized Copying Prohibited AICPA Professional Development
Chapter 5
Step 5: Improve Your Change Agent Skills
Through Self-Coaching
75 Copyright 2013–2014 AICPA Unauthorized Copying Prohibited AICPA Professional Development
• Hard Line Negotiator• http://www.youtube.com/watch?v=2qsa66AqXTo
76 Copyright 2013–2014 AICPA Unauthorized Copying Prohibited AICPA Professional Development
KFS Universal Role Package
Fiscal Management
Team Management
CorporateOversight
People / Systems / Processes / Rules
STRATEGIST
LEADER
CH
AN
GE
AG
EN
TC
ULT
UR
E S
HA
PE
R
77 Copyright 2013–2014 AICPA Unauthorized Copying Prohibited AICPA Professional Development
Change Agent Skills
• Active listening – http://www.youtube.com/watch?v=nhe0KSGoUgc
• Objective observing • Objectivity and clarity• Building trust• Testing assumptions• Partnering
78 Copyright 2013–2014 AICPA Unauthorized Copying Prohibited AICPA Professional Development
Change Agent Skills
• Problem solving– If you are not part of the solution, you are part of the problem
• Integrative thinking• Selling ideas
– Dale Carnegie – How to Win Friends and Influence People
• Professionalism• Taking a firm stance (being the conscience)• Where do you rate on these?
79 Copyright 2013–2014 AICPA Unauthorized Copying Prohibited AICPA Professional Development
A Gap Analysis Is...
• A visual examination of someone’s current state compared to their desired state.
80 Copyright 2013–2014 AICPA Unauthorized Copying Prohibited AICPA Professional Development
A Gap Analysis
• Starts with the honest truth of where we are today.• Captures a clear vision of the future.
81 Copyright 2013–2014 AICPA Unauthorized Copying Prohibited AICPA Professional Development
Outcome of the Gap Analysis
• To show what is missing and required to get to this vision.
82 Copyright 2013–2014 AICPA Unauthorized Copying Prohibited AICPA Professional Development
Gap Analysis Steps1. Describe the Problem
2. Describe the Benefits
3. Narrow the Focus
4. Define Deadlines
5. Describe current state - focus on desired results
6. How will it feel?
7. Fill in the middle – the missing links
8. Create a specific formalized action plan
9. Review the Gap Analysis regularly
83 Copyright 2013–2014 AICPA Unauthorized Copying Prohibited AICPA Professional Development
Formalized Action Plan Is...
• A visual definition or map of what it will take to make significant progress on a specific objective.– Overall strategic objective– Deliverables– Due dates– Major steps– Detailed steps– Individual responsibilities– Anticipated obstacles and challenges– Performance Metrics– Resources Required
84 Copyright 2013–2014 AICPA Unauthorized Copying Prohibited AICPA Professional Development
Action Plan Roles
• Sponsor– Who has ultimate accountability for the change?– Who funds the project?
• Advocate– Who drives, wants, or demands the change?
• Customers– Who benefits from the change?
85 Copyright 2013–2014 AICPA Unauthorized Copying Prohibited AICPA Professional Development
Action Plan Roles
• Agents of Change– Who will carry the responsibility for facilitating the
change through to the end?• Accountability Partner
– Who will hold the change agent’s feet to the fire?– Who gets regular reports on the plan’s ultimate
objective?
86 Copyright 2013–2014 AICPA Unauthorized Copying Prohibited AICPA Professional Development
Chapter 6
Step 6: Grow Your Skills as a Leader
in the Middle
87 Copyright 2013–2014 AICPA Unauthorized Copying Prohibited AICPA Professional Development
Change Agent’s Best Tools
• GAP analysis• Probing questions• Problem restatement
88 Copyright 2013–2014 AICPA Unauthorized Copying Prohibited AICPA Professional Development
• Stephen Covey, 7 Habits
• Quit operating in Quad I
• Emotional bank account
• Deposits & Withdrawals
• Sharpen the saw
89 Copyright 2013–2014 AICPA Unauthorized Copying Prohibited AICPA Professional Development
Where to Focus YourChange Efforts?
• Where the PAIN is!• Concerns that your boss loses sleep over.
90 Copyright 2013–2014 AICPA Unauthorized Copying Prohibited AICPA Professional Development
4 Big Buzzwords Today
• Persistence– Steve Jobs – “this is garbage”
• Execution– Deliver Results
• Creativity– Creative problem solver
• Resourcefulness– We aren’t going to throw more money at the
issue
91 Copyright 2013–2014 AICPA Unauthorized Copying Prohibited AICPA Professional Development
Our Biggest Hurdle• “Going from knowing what you need to do to really doing it• Sources:
1. Your Employees• The Bus
2. Your work• Massive quantity
3. Your firm’s culture
4. You – “we have met the enemy and he is us.”
92 Copyright 2013–2014 AICPA Unauthorized Copying Prohibited AICPA Professional Development
Solve Problems with Probing Questions
• Cannot be answered “yes” or “no.”• Are open-ended.• Require thoughtful responses.• Can be tailored.• Next question is based on previous answer.• Can be narrowed easily.
93 Copyright 2013–2014 AICPA Unauthorized Copying Prohibited AICPA Professional Development
Probing Questions Format
Crux of the Matter
Broad
General
Less General
Specific
Very Specific
94 Copyright 2013–2014 AICPA Unauthorized Copying Prohibited AICPA Professional Development
Problem Restatement Means…
• Redefining the problem in as many ways as possible.
• Shifting your mental gears into a divergent thinking mode.
• Generating statements of the problem without evaluating or justifying.
95 Copyright 2013–2014 AICPA Unauthorized Copying Prohibited AICPA Professional Development
Chapter 7
Step 6½: Improve by Making a Commitment
96 Copyright 2013–2014 AICPA Unauthorized Copying Prohibited AICPA Professional Development
Five Accounting Realities
• Unless we change our thinking, tomorrow looks just like today.
• Without a clear vision of tomorrow, what we expect tomorrow will not change from today.
• If we raise our expectations, we alter our future vision!• Our skills and knowledge grow obsolete at an ever-
faster rate.• A finance team only advances in two ways: the
solutions we provide and the connections we sustain.
97 Copyright 2013–2014 AICPA Unauthorized Copying Prohibited AICPA Professional Development
• Take the Stairs by Rory Vaden• Success is a choice that is as simple as
deciding to take the stairs• Paradox Principle of Sacrifice – Short Term vs
Long Term• Creation Principle of Integrity – You think it, you
speak it, you act it, it happens• Rent Concept – “Success is not owned, it is
rented, and the rent is due everyday.”
98 Copyright 2013–2014 AICPA Unauthorized Copying Prohibited AICPA Professional Development
Strategies for Easing Our Pain
• Get out of your office.• Let employees out of their offices.• Create a “Stop Doing” list.
99 Copyright 2013–2014 AICPA Unauthorized Copying Prohibited AICPA Professional Development
20 Things the Rich Do Every Day by Thomas Corley1. 70% of wealthy eat less than 300 junk food calories per
day. 97% of poor people eat more than 300 junk food calories per day. 23% of wealthy gamble. 52% of poor people gamble.
2. 80% of wealthy are focused on accomplishing some single goal. Only 12% of the poor do this.
3. 76% of wealthy exercise aerobically 4 days a week. 23% of poor do this.
4. 63% of wealthy listen to audio books during commute to work vs. 5% for poor people.
5. 81% of wealthy maintain a to-do list vs. 19% for poor.6. 63% of wealthy parents make their children read 2 or
more non-fiction books a month vs. 3% for poor.7. 70% of wealthy parents make their children volunteer 10
hours or more a month vs. 3% for poor.8. 80% of wealthy make happy birthday calls vs. 11% of poor9. 67% of wealthy write down their goals vs. 17% for poor10. 88% of wealthy read 30 minutes or more each day for
education or career reasons vs 2% for poor.
100 Copyright 2013–2014 AICPA Unauthorized Copying Prohibited AICPA Professional Development
20 Things the Rich Do Every Day (ctd)11. 6% of wealthy say what’s on their mind vs. 69% for poor.12. 79% of wealthy network 5 hours or more each month vs.
16% for poor.13. 67% of wealthy watch 1 hour or less of TV. every day vs.
23% for poor14. 6% of wealthy watch reality TV vs. 78% for poor.15. 44% of wealthy wake up 3 hours before work starts vs.3%
for poor.16. 74% of wealthy teach good daily success habits to their
children vs. 1% for poor.17. 84% of wealthy believe good habits create opportunity
luck vs. 4% for poor.18. 76% of wealthy believe bad habits create detrimental luck
vs. 9% for poor.19. 86% of wealthy believe in life-long educational self-
improvement vs. 5% for poor.20. 86% of wealthy love to read vs. 26% for poor.
101 Copyright 2013–2014 AICPA Unauthorized Copying Prohibited AICPA Professional Development
We’re Shrinking!
1930 – 19501987
1995
1996
2007Today
4 %2.2 %
1.5 %
1.4 %
.85 % ?
Cost of the Accounting Function as a % of Sales
102 Copyright 2013–2014 AICPA Unauthorized Copying Prohibited AICPA Professional Development
Significant Trends in Accounting
1. The cost of processing transactions is approaching zero.
2. Everyone demands instant gratification
3. The finance group will spend less time processing and more time consulting
4. The finance group will be ever smaller and less permanent
5. A finance professional’s employment will not be full-time or permanent
6. Movement towards a pay for performance compensation system
103 Copyright 2013–2014 AICPA Unauthorized Copying Prohibited AICPA Professional Development
Significant Trends in Accounting
7. Accountant required to have a broader base of knowledge beyond accounting/finance
8. Reliance on task forces and project teams
9. Increase in need for compliance and governance that does not waste resources
104 Copyright 2013–2014 AICPA Unauthorized Copying Prohibited AICPA Professional Development
Moving Towards Zero!
Finance ProcessCost in the
Average companyCost in the
Worst companyCost in the World Class company
A/R remittance processing $0.67 $13.68 $0.01P/R check processing $1.91 $10.93 $0.36A/P invoice processing $2.93 $6.80 $0.35Tracking fixed assets $4.05 $19.10 $0.16Expense report processing $6.05 $25.75 $0.27
Labor Cost per transaction
105 Copyright 2013–2014 AICPA Unauthorized Copying Prohibited AICPA Professional Development
Strategies for Easing Our Pain
• Climb on board!• Treat employees like volunteers. • Seek out practical experiences outside of finance.• Use 40 hours of CPE as your minimum.• Commit to lifelong learning. • Take your skills seriously but not your title or
position.• Remind yourself often you are replaceable!
106 Copyright 2013–2014 AICPA Unauthorized Copying Prohibited AICPA Professional Development
3 Key “Take-
Aways”
Thank you for being here!Questions?
107 Copyright 2013–2014 AICPA Unauthorized Copying Prohibited AICPA Professional Development
Advanced Controller and CFO Skills
Thank you for attending!