R E -E NERGIZING T HE B USINESS D EVELOPMENT C ULTURE F ACILITATED BY S AM M. A LLRED, CPA

1. RE-ENERGIZING THE BUSINESS DEVELOPMENT CULTURE FACILITATED BY SAM M. ALLRED, CPA DIRECTOR OF UPSTREAM ACADEMY

2. Business development is a vital part of a firm’s success and organic growth creates opportunities for everyone in the firm. A strong culture of business development that results in consistently strong organic growth is one sign of a healthy firm. 2

3. 13 BD CHALLENGES FACING MOST FIRMS • Many of their best business developers are headed towardretirement • They have fewer rainmakers in the wings • Key client contacts and referral sources are headed toward retirement • Competition is ever increasing 3

4. 13 BD CHALLENGES FACING MOST FIRMS • Client loyalty is decreasing • BD success is based more on size than quality • They do very little due diligence • They are far more excited about new clients than about additional work from existing clients • Rainmakers have become Mistmakers 4

5. 13 BD CHALLENGES FACING MOST FIRMS • Their BD culture focuses on selling • Managers feel pressure to sell and many opt out of the partner track • The younger generation hates selling • Firms focus more effort on getting in front of more prospective clients than they do in helping their existing clients improve 5

6. TWO AH-HA MOMENTS FROM 2000 I attended an industry conference for managing partners held in 2000 in Chicago and listened to David Maister speak for two hours. He said two things about business development that changed my paradigm. 6

7. QUESTION Have we focused our business development efforts in the right places? What are some examples of losing BD games? 7

8. WHAT DOES THIS QUOTE MEAN TO YOU? “Invest heavily in your existing clients by demonstrating an interest in their affairs. Don’t invest anything at all in winning new clients until you’re sure you’ve captured all the best opportunities in your existing client base!” David H. Maister 8

9. RECOMMENDATIONS The following slides contain six very specific recommendations to re-energize the business development culture within your firm and see increased positive results – in both the short and long term. 9

10. 1. RATE YOUR CLIENTS • Your clients aren’t all equal and they don’t all deserve an equal share of your time and focus • Take the time to rate all your clients and categorize them into 4 categories: A-Level, B-Level, C-Level, and D-Level • Develop a plan of action for each level of client 10

11. 2. ENTER RATINGS IN PM SYSTEM • Enter your client ratings into your Practice Management system • Begin to review reports by client rating – AR, realization, where you have your bench strength assigned, etc. • Learn to make client service decisions based on the reports you are receiving 11

12. 3. RAISE SERVICE LEVEL FOR A CLIENTS • Brainstorm what you are willing to do for your A-Level clients that you aren’t willing to do for your B- to D-Level clients • Raise the bar and create raving fans from your best clients • Create a written service plan for your best clients 12

13. QUESTION What are some things we could do for our A-Level clients that we would not be willing to do for all other clients? 13

14. 4. SPEND 50% BD TIME WITH A CLIENTS • Spend 50% of your business development time helping A-Level clients get what they want – not on your compliance work 14

15. 5. CHANGE BD FOCUS TO HELPING • Change the focus of business development from selling to helping • Use the Go-Giver books as the catalyst to make this change • “The best way to sell is not to sell, but to care.” 15

16. 6. TRAIN YOUR STAFF TO BE PFTTAS If we want our people to be exceptionally good at helping clients and prospective clients we need to train them how to be effective trusted advisors. This training will need to be ongoing throughout their careers. 16

17. Too many in our profession limit themselves when it comes to helping clients and prospective clients. They aren’t willing to learn about issues unrelated to accounting and they become limited in what they can do to become a trusted advisor. 17

18. As a profession, we do a great job training in the technical areas of our services, but a poor job in helping our people develop good business acumen. Focus your trusted advisor training on topics outside of the normal areas associated with tax and audit. 18

19. POSSIBLE TRAINING TOPICS • How to engage clients in open discussions • Effective planning techniques • The best way to conduct a client fact-finding mission • How to determine your clients’/prospects’ biggest concerns/issues • Ways to communicate proactively • Major issues that business owners face

20. POSSIBLE TRAINING TOPICS • Corporate governance • HR-related issues • Risk management • Technology issues • Leadership development • Psychology of family-owned business • Vision and strategic planning • Ways to drive organic growth

21. POSSIBLE TRAINING TOPICS • Mergers and acquisitions • Financing options • Office space issues and terms • Succession planning • Creating a culture of accountability • Conducting effective meetings • Compensation issues • Serving on boards/committees

22. CLIENT BRAINSTORMING SESSIONS Perhaps one of the best training sessions for staff at all levels is to select an A-level client and have a cross-service team brainstorm possible solutions to help them with their issues. 22

23. QUESTIONS AND ANSWERS

24. Thank You! sama@upstreamacademy.com