How to Be a Great Partner! Steve Erickson National Consultant to CPA Firms Questions Interactive Exchange of ideas Valuable information Objectives Improve your value and effectiveness Promote a client service culture Build your team and your practice Enjoy your career Have more fun Realize true Work/Life Success Copyright 2012 Steve Erickson LLC CPA Firm Value Enhancement Process TM Qualities of a Great Partner Respected by partners, staff & clients Focused on client service and results Creates value for others in the firm Enhances the reputation of the firm Respected by partners, staff and clients Executive Presence Present Listens Less judging Positive Offers constructive ideas and solutions Approachable Predictable Behavior Integrity Helpful Considerate of others Accountable Do what you say No Excuses Manage client work Manage intake processes Focus on mutual success 2012 Steve Erickson LLC 10 Intentions Conversations Action Mutual Benefit Trust-Benefit Cycle Focused on client service and results Meets Commitments Communicates timely Technically Excellent No surprises Managing Client Expectations Timing Required information Pricing Change orders Discussion outline Billing Become a great biller Value your time and services Dont quote fee ranges Communicate early and often Status of work Fees Offer alternatives Engagement Letters Scope Change orders Credit policies Scheduled payments Budgeted payment plan Leverage Strategy and Value $ Specialty Commodity Cognitive Process Psychological processes Acquisition and understanding of knowledge Formation of beliefs and attitudes Decision making Problem solving Client Value=Better Decisions Partner Trusted Business Advisor Resources Clients for Life Power Questions Revenue Management Timing Pricing Industries Functional services Tax A&A Other January through December Strategy and Capacity $ X X X X X X X X X X X X Expenses Revenue January through December Strategy and Capacity $ X X X X X X X X X X X X Expenses Revenue Valuable Work January through December Strategy and Capacity $ X X X X X X X X X X X X Expenses Revenue Less valuable work January through December Strategy and Capacity $ X X X X X X X X X X X X Expenses Revenue Utilization Contribution Margin Capacity Rate Cost Per Hour Annual salary$60,000 Benefits$15,000 Total$75,000 Charge Hours1500 Cost per hour$50.00 Meaningful Measures Contribution margin Per hour Per Month Per client Per partner Passive Management Measuring after the fact Firm results Job success Individual performance Less ability to influence the results Lower utilization Lower profitability Target Profit Planning for Partners Budget profitability Assign responsibility Hold accountable No surprises Sample plan Key Drivers of Strategy, Differentiation & Profitability CompetitiveDistinctBreakthrough Products Client Service Relationships Source: How to Maximize Fees Alan Weiss, PH.D. 2008 True Differentiation Distinct client service Match service to expectations Make the routine special Ask the most important question! The Question What decisions do you have to make in the next: Month Quarter Year 3 years 5 years Retention Satisfied Employees Service Profit Chain Internal Service Quality Client Satisfaction Client Loyalty The Service Profit Chain 1997 James Heskett et. al. Creates value for others in the firm Facilitates succession Shares knowledge Marketing/Client acquisition Helps others in the firm be successful National Survey Career Development Survey Over 1800 responses Proven research Survey Demographics Rating of Motivators Management/Staff Engagement Strategy Annual plans Coaching Career Development Focused on success Supervision Behavior Coping Expressive Supervision Direct Supportive Firms will embrace coaching for improved performance Copyright 2011 Steve Erickson LLC Enhances the reputation of the firm Civic minded Participates in professional organizations Personal reputation Be a Great Partner Manage client expectations Manage staff expectations Become a great biller Be a person that is easy to do business with Enjoy the ride!