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. It’s what you don’t know you don’t know that can cost you!Source: UnknownResistance to change can be expensive!L. Gary Boomer

7. The Missing Structure Top 100 Firms >$30M What’s The Difference 90 % of Firms <$3M

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 Leader’s 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. Covey’s 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. Landsbergerwhen 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 player’sin your firm

22. Polling QuestionWhat Percentage Of Team Members in Your Firm are Non-CPA’s? • 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. It’s 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. Management’s Challenges • Generational issues • Innovation • Risk management • Performance • Collaboration • Teamwork

29. Management Skills & Tools 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 • Project management • Team building • Conflict resolution • Performance management • Accountability • Delegation strategies • Meeting management • Client service • Communication techniques • Business development

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. I’m 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 Individuals’Realities Significant differences among conative Realities, Expectations and Requirements cause over 70% of work-related stress. Kolbe C™ Index Evaluator’s functional Requirements

42. Team Synergy Synergy Algorithm • Kolbe has proven: • Without synergy, teams • are doomed to fail. • Kolbe also makes synergy: • Definable • Quantifiable • Predictable • Improvable

43. Who Will Work Well Validity in predicting success Predictor Performance Ratings Kolbe A Index .82 Cognitive Test Score .53* Biographical Data .37* Reference Checks .26* Education .22* Interviews .14* CollegeGrades .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 • Hire people with integrity, intelligence & energy. • Build the management & administrative teams around the leader(s). • Use the Kolbe Index and Synergy Report. • Utilize non-accountants in many of the positions. • Team members need personal development programs. • Develop managers. Talent leaves bad managers, not firms. • Spend time to think, plan and grow. • Technology is the accelerator. Get digital ASAP. • Successful firms have successful business models. • Employee recognition is as important as planning and accountability. • READ!!!

48. Resources

49. Thank you! sandra.wiley@boomer.com www.boomer.com