2009 Strategic Planning Questionnaire Member Responses

Strategic planning How to use your finite resources to reach your goals

Alice in Wonderland…  The cat said to Alice, when she approached the three pronged fork in the road, “You can take any path if you do not know where you are going!”  Or, if you have not thought out where you want to be… how can you get there?

Elements of Nexia’s Strategic Plan 1. What does the marketplace need and want? 2. What do the members need and want? 3. SWOT analysis a) Business conditions and trends b) Opportunities c) Threats d) Nexia’s strengths e) Nexia’s weaknesses

Elements of Nexia’s Strategic Plan 4. Mission statement 5. Goals 6. Strategic plan 7. Tactics a) short-term b) Long-term c) Assignments, responsibilities, due dates* * Implementation is the key!

Mission Statement - Draft Nexia’s mission is: 1.to provide member firms’ clients access to the highest standards of international advice and services.

Mission Statement - Draft Nexia’s mission is: 2.To provide tools and shared knowledge that will enhance member firms and their ability, with regard to their international reach and expertise, in their own marketplace.

Nexia mission is: 3.to help increase cross border referrals among members. More to come from YOU Goals Strategy Tactics

Demographics 153 unique respondents out of 190 member invitations 9

Demographics 153 unique respondents 10

Our Firm Joined Nexia International Because: Our clients were already expanding into other countries and we wanted to keep the relationship with them by continuing to service them. (Defense) 11

Our Firm Joined Nexia International Because: Our clients were already expanding into other countries and we wanted to keep the relationship with them by continuing to service them. (Defense) Scale: Strongly Disagree=1 and Strongly Agree=5 12

Our Firm Joined Nexia International Because: Our firm wanted to be able to show our clients, who were thinking about global trade, how to expand into other countries. (Offense) 13

Our Firm Joined Nexia International Because: Our firm wanted to be able to show our clients, who were thinking about global trade, how to expand into other countries. (Offense) Scale: Strongly Disagree=1 and Strongly Agree=5 14

Our Firm Joined Nexia International Because: Our firm needed technical resources in other countries. (Technical Resources) 15

Our Firm Joined Nexia International Because: Our firm needed technical resources in other countries. (Technical Resources) Scale: Strongly Disagree=1 and Strongly Agree=5 16

Our Firm Joined Nexia International Because: Our firm wanted to show the marketplace that we are "smart" and have access to global capabilities. (Credibility) 17

Our Firm Joined Nexia International Because: Our firm wanted to show the marketplace that we are "smart" and have access to global capabilities. (Credibility) Scale: Strongly Disagree=1 and Strongly Agree=5 18

Our Firm Joined Nexia International Because: Our firm wanted to expand our practice by receiving "inbound" engagements from other Nexia firms. (Referrals) 19

Our Firm Joined Nexia International Because: Our firm wanted to expand our practice by receiving "inbound" engagements from other Nexia firms. (Referrals) Scale: Strongly Disagree=1 and Strongly Agree=5 20

Our Firm Joined Nexia International Because: Our firm wanted a forum to discuss accounting and business issues in a non-competitive group. (Club) 21

Our Firm Joined Nexia International Because: Our firm wanted a forum to discuss accounting and business issues in a non-competitive group. (Club) Scale: Strongly Disagree=1 and Strongly Agree=5 22

Reasons Members Joined Nexia International 23

Reasons Members Joined Nexia International By Region Scale: 1= least important 6= most important Region Club Credibility Defense Offense Referrals Technical Resources Asia Pacific Europe Middle East/Africa North America South America

Reasons Members Joined Nexia International By Firm Revenues Scale: 1= least important 6= most important 2008 Revenue (in U.S. $) (Mio = Million) Club Credibility Defense Offense Referrals Technical Resources < 1 Mio < 5 Mio < 10 Mio < 20 Mio < 50 Mio < 100 Mio < 250 Mio < 500 Mio

Nexia’s Biggest Competitors in the International Market Other includes: licensed accountants; 2-3 person firms; smaller CPA firms 26

Nexia’s Biggest Competitors in the International Market 27

Members’ Biggest Competitors in Their Local Markets Other includes: local firms; 2-3 person firms; mid-market national firms; small firms with no expert knowledge 28

Members’ Biggest Competitors in Their Local Markets 29

Do You Feel Nexia is Well-Represented Geographically? Region% Yes Asia Pacific95.7% Europe95.5% Middle East/Africa81.3% North America90.6% South America92.9% By Region Revenue% Yes <1 Mio.92.7% <5 Mio.91.2% < 10 Mio.88.9% < 20 Mio.93.3% <50 Mio.100.0% <100 Mio.100.0% <250 Mio.100.0% <500 Mio.100.0% By Revenue 30

Does Your Firm Have a Mission Statement? Region% Yes Asia Pacific100% Europe74.6% Middle East/Africa93.8% North America87.5% South America64.3% By Region Revenue% Yes <1 Mio.90.2% <5 Mio.68.4% < 10 Mio.94.4% < 20 Mio.100.0% <50 Mio.70.0% <100 Mio.100.0% <250 Mio.75.0% <500 Mio.100.0% By Revenue 31

Does Your Firm Have a Strategic Plan? Region% Yes Asia Pacific91.3% Europe88.1% Middle East/Africa87.5% North America84.4% South America78.6% By Region Revenue% Yes <1 Mio.92.7% <5 Mio.82.5% < 10 Mio.83.3% < 20 Mio.86.7% <50 Mio.80.0% <100 Mio.100.0% <250 Mio.100.0% <500 Mio.100.0% By Revenue 32

Does Your Firm Have a Strategic Plan to Build its International Practice? Region% Yes Asia Pacific65.2% Europe43.3% Middle East/Africa50.0% North America59.4% South America28.6% By Region Revenue% Yes <1 Mio.51.2% <5 Mio.40.4% < 10 Mio.61.1% < 20 Mio.53.3% <50 Mio.40.0% <100 Mio.75.0% <250 Mio.50.0% <500 Mio.100.0% By Revenue 33

Which is the Stronger Brand in Your Local Market? 34

Which Do You Want to Have as the Stronger Brand and/or Greater Visibility? 35

What Does Your Firm Need From Nexia? Scale: 1=Disagree Strongly 5=Agree Strongly 36

What Does Your Firm Need From Nexia? “Other” Training and technical assistance very important; it must be in the two main languages, English and Spanish An international branding/marketing campaign to international companies to share our identity and capabilities Business referrals Branding and marketing to enhance Nexia’s reputation and image in China Discussions on managing an accounting practice, leadership training, and succession planning One country should = one firm or one umbrella 37

What Does Your Firm Need From Nexia? Scale: 1=Disagree Strongly 5=Agree Strongly Region Larger member firms High quality Speed of response Cross-border experience and expertise Branding being consistent with your own Technical training Asia Pacific Europe Middle East/Africa North America South America Revenue Larger member firms High quality Speed of response Cross-border experience and expertise Branding being consistent with your own Technical training < 1 Mio < 5 Mio < 10 Mio < 20 Mio < 50 Mio < 100 Mio < 250 Mio < 500 Mio

What Does Your Client Base Need? Scale: 1=Disagree Strongly 5=Agree Strongly 39

What Does Your Client Base Need? “Other” Niche practices should be more widely promoted among Nexia members and in its image branding; that is a 'bragging' capability of the Big 4 that we should directly address An acceptance of Nexia by international financial institutions (e.g., EBRD) Cooperation with other Nexia members 40

What Does Your Client Base Need? Scale: 1=Disagree Strongly 5=Agree Strongly Region Nexia members' high quality Geographic coverage Seamless cross- border service Competitive pricing More "user friendly" than Big 4 More expertise than local firms Asia Pacific Europe Middle East/Africa North America South America Revenue Nexia members' high quality Geographic coverage Seamless cross- border service Competitive pricing More "user friendly" than Big 4 More expertise than local firms < 1 Mio < 5 Mio < 10 Mio < 20 Mio < 50 Mio < 100 Mio < 250 Mio < 500 Mio

What Can You Do for Nexia? Scale: 1=Disagree Strongly 5=Agree Strongly 42

What Can You Do for Nexia? “Other” Local firm should aim to be in the Top 10 in its local market Brand Nexia locally in combination with international branding 43

What Can You Do for Nexia? Scale: 1=Disagree Strongly 5=Agree Strongly Region Strategic plan for building international in local marketplace Invest in building Nexia brand/image in local marketplace Reach out to local bankers/attorneys with international practices Send at least one delegate to the Nexia Annual Conference Send delegates to young managers/partners forums Asia Pacific Europe Middle East/Africa North America South America Revenue Strategic plan for building international in local marketplace Invest in building Nexia brand/image in local marketplace Reach out to local bankers/attorneys with international practices Send at least one delegate to the Nexia Annual Conference Send delegates to young managers/partners forums < 1 Mio < 5 Mio < 10 Mio < 20 Mio < 50 Mio < 100 Mio < 250 Mio < 500 Mio

For Nexia to be More Competitive, it Must: Scale: 1=Disagree Strongly 5=Agree Strongly 45

For Nexia to be More Competitive, it Must: “Other” Training should be in English and Spanish Better geographic coverage, especially in the U.S. Cross-border knowledge found in cooperation with local Nexia members Have a financial back up for public tenders (e.g., World Bank and Inter- American Development Bank) when Nexia firms present proposals for professional services Could be helpful to develop a common tender style or format to use along the network, so the firms could use this format knowing that nothing important in an international tender is "forgotten" and all the relevant information has been clearly reflected 46

For Nexia to be Competitive, it Must: Scale: 1=Disagree Strongly 5=Agree Strongly Region Be bigger -- larger revenue volume Better geographic coverage High-quality members Common audit methodology Centers of industry expertise Cross-border training Common branding Members invest into building Nexia Asia Pacific Europe Middle East/Africa North America South America Revenue Be bigger -- larger revenue volume Better geographic coverage High-quality members Common audit methodology Centers of industry expertise Cross-border training Common branding Members invest into building Nexia < 1 Mio < 10 Mio < 100 Mio < 20 Mio < 250 Mio < 5 Mio < 50 Mio < 500 Mio

The Most Important Issues Facing Nexia: Scale: 1=Disagree Strongly 5=Agree Strongly 48

The Most Important Issues Facing Nexia: “Other” Nexia-originated branding and marketing ideas and inter-member cooperation and ideas Certain firms are using Nexia to further their own firm agendas; big firms dominate the Nexia network – inexpensive way for some big firms to create image that they are as big as a PWC, without having to invest in the smaller firms Standard working papers and files in English language as templates are in CaseWare – by using an international format you will be able to use data for consolidation purposes Network/Association 49

The Most Important Issues Facing Nexia: Region#1 Issue#2 Issue#3 Issue Asia PacificBrand visibilityQuality control; Standardization of audit methodology; Stronger firms in the major markets EuropeBrand visibilityCommunication to members; Quality control Middle EastBrand visibilityStandardization of audit methodology; Stronger firms in major markets North America Quality controlMember responsivenessCommunication to members South America Brand visibility; Quality control Standardization of audit methodology 50

The Most Important Issues Facing Nexia: 2008 Revenue #1 Issue#2 Issue#3 Issue < 1 Mio.Brand visibility Standardization of audit methodology Value of referrals < 5 Mio.Brand visibilityQuality controlCommunication to members < 10 Mio.Brand visibilityMember responsivenessDual representation < 20 Mio. Member responsiveness; Quality control; Website < 50 Mio.Quality controlMember responsivenessCommunication to members < 100 Mio.Brand visibilityQuality control Communication to members; Stronger firms in major markets < 250 Mio. Member responsiveness; Quality control Standardization of audit methodology; Stronger firms in major markets < 500 Mio. Brand visibility; Communication to members; Member responsiveness 51

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