Five Grass Roots Techniques that Produce Results Presented by: Art Kuesel Wilmette Roundtable Rosenberg Associates

Art Kuesel, President EXPERIENCE  Sales Executive  3 years inside $60M CPA firm  5 years inside $25M CPA firm  6 years at PDI/Koltin Consulting  2.5 years at Kuesel Consulting EXPERTISE Sales Coaching Sales/Marketing Training EXPERTISE (Cont.) Keynotes, Presentations, Workshops on Growth Growth Plan Development/Implementation Managing Partner Coaching Sales & Marketing Recruiting STREET CRED →Top 100 Most Influential Person in Public Accounting: 2014 →In-house and external experience →Clients include scores of T250 Firms including a third of the T100 →Frequent writer and blogger for Accounting Today →Accomplished speaker and presenter on growth trends 2

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Today’s Workshop Five Grass-Roots Growth Techniques that Produce Results - Wilmette Group Develop/Package and Promote “hidden” Consulting Services Succession Planning Profit Enhancement Internal Controls Assessment/Risk Reduction Study Tax Planning Retirement Planning *Bill all these at higher consulting rates* Be Proactive with top 10 clients 4x/year (40 meetings to see how they are doing, find out professional goals, personal goals, ascertain challenges and obstacles, suggest ideas to help, make recommendations, make introductions and/or consult) Discuss a template that may facilitate this Ask for referrals from top clients Get your partners and managers involved with marketing Why not 2x or 3x your marketing efforts? Where to start Develop a niche expertise (from within) Analyze your practice for existing “hidden” niches Assess client/market opportunities Identify trade groups and potential referral sources Identify target clients Develop thought leadership Acquire a niche expertise externally via lateral hire Boost your breadth and capabilities by bringing a new resource to your clients Identify niche(s) to prioritize Utilize LinkedIN to research candidates Reach out and have some conversations 4 4

Today’s Workshop 1. Baseline discussion 2. Develop, package, and promote hidden consulting services 3. Be proactive with 10 top clients at least 4x year 4. Get others involved in marketing 5. Develop a niche expertise internally 6. Acquire a niche expertise 5 4

Baseline Discussion

Baseline How many of you are reasonably satisfied with your revenue level? How important is it to you to increase your revenues? Be honest! Obviously, to get the revenue increase, you are going to have to do something. How many of you are willing to invest time and perhaps a little money to increase clients? Or, is your game plan to sit back and wait for the phone to ring? What have you sworn never to do (re marketing)? Like making cold calls or attending rotary meetings. Is part of why you are solos and small firms is because you hate practice development and marketing? Have any of you had ideas about marketing or wondered if something might work, but just haven’t done it? What has stopped you? 7 4

Top Five Hidden Consulting Services 1.Succession Planning 2.Profit Enhancement Services 3.Internal Controls Assessment/Risk Reduction Study 4.Tax Planning 5.Retirement Planning Source: AICPA/PCPS 8

Develop, Package, and Promote “Hidden” Consulting Services

Top Five AICPA/PCPS Issues Retaining Staff 2.Finding Staff 3.Partner Accountability and Unity 4.Seasonality/Compression 5.Succession Planning (tie) 5. Finding New Clients (tie) Source: AICPA/PCPS 13

Most Firm Succession Plans Require… G- R- O- W- T - H ! Growth Enables: 1)Meet current/future DC needs 2)Reward/Retain top performers 3)Make new partners 4)Fund service expansion 5)Increase partner compensation 14

Average Firm Growth Last Year 6.3% This INCLUDES: Rate increases Cross-Selling New clients Mergers 15

Is it enough? Will 6.3% Growth Enable: 1)Meet current/future DC needs 2)Reward/Retain top performers 3)Make new partners 4)Fund service expansion 5)Increase partner compensation 16

Most Firm Succession Plans Require… WILL 6.3% ENABLE? 1)Meet current/future DC needs? 2)Reward/Retain top performers? 3)Make new partners? 4)Fund service expansion? 17

Strategy #1: Build a Marketing Culture

Growth with a Strong Marketing Culture? DOUBLE? TRIPLE? Fact: Firms with strong marketing cultures outperform their peers in growth. 19

1) Set Roles/Expectations/Goals Outline marketing roles/expectations/goals by level: a) Partners (#/$) b) Managers/Senior Managers (#/$) c) Staff/Seniors/Supervisors (#) d) Administration (#) What it does: Helps people understand generally what types of contributions we expect from them – and how they can contribute 20 14

2) Skills Training Workshops Client development Build a personal brand Networking Build referral sources Win at the sales process What it does: Gives your people basic tools and skills to succeed in various marketing and business development situations as well as be proactive in new areas 21 15

3) Referral Sources Support your people in finding more high quality referral sources  Banks, law firms, P&C insurance, FA’s  Hold mixers  FACILITATE prep  FACILITATE follow-up 16 What it does: Gives your people easier access to potential referral sources. Gets more people involved in networking and referral source marketing

4) Pipeline Meeting/Marketing Club Talk about marketing and sales! Wins and Losses Key Pursuits/Proposals Referrals In/Out Challenges and Opportunities Group Therapy! What it does: Enhances communication, knowledge sharing about wins, help each other with challenges, reminder of goal, develop marketing mindset 23 17

5) FORMAL Client Development Target top 25 relationships Build more and deeper relationships Educate clients on services Uncover opportunities for additional revenue (cross-sell) Seek referrals FACILITATE Satisfaction interviews What it does: Assists in creating stronger bonds with your clients, enhances selling skills of your people, grows revenue, boosts client retention 24 18

6) Niche Development Uncover hidden niches in your firm “The riches are in the niches” Specialization wins every time Niches are fueling growth (is compliance?) Build a passionate team that can: Target participation in an association Develop thought leadership Pursue a targeted list of referral sources and prospects What it does: Creates teaming opportunities among staff, enables greater marketing success, creates greater retention among clients in that niche 19

Place client logo here Niche Practice Growth Source: Accounting Today 80% + Source: Accounting Today 60% +

7) Internal “PR” Communicate about marketing often! “Another Win” s Key Pursuit Communication Conf. Room Celebrations “Bolt-on” Communication 21 What it does: Publicizes success, fuels excitement, reminds of importance of marketing

8) Rewards Make it worth their time: Commission/Bonus on New Business (Results) Rewards for Individual EFFORT Rewards for Group Results What it does: Incentivizes individual and group behavior. People band together to achieve a goal. 22

9) Content/Social/Thought Leadership Refine your Content Strategy Educating is Selling! Content marketing engages clients, prospects, and referral sources Demonstrates knowledge and mastery of a topic Engage your people to write Leverage/Maximize your Social Media channels starting with LinkedIN and blogging 23 What it does: Engages more people in the marketing process, engages clients, prospects and referral sources

10) Key Hires Hiring a marketing professional Can help drive grass roots/institutional efforts Hiring a sales professional Bring new opportunities in the door Lateral hires: Practice builders Start or boost a niche with an external hire 24 What it does: Tells EVERYBODY in the firm that the firm is serious about marketing/sales.

Results: 50 Person Firm/California Marketing Culture Development Began in 2011 Efforts have included: Roles & Responsibilities by Level, “First Ever” Marketing Plan, Marketing Skills Training, Pipeline Meeting, Marketing Club, Enhanced Incentives Results: Revenue Growth = % per year (HALF of which came from new contributors and non partners) In 2012 compensation/raises began rewarding for marketing effort and behavior as marketing is a responsibility for everyone at the firm 31

Results: 40 Person Firm/Pacific Northwest Marketing Culture Development Began mid-2011 What they did: Roles & Responsibilities by Level, Niche Development, Client Development, Marketing Skills Training, Pipeline Meeting, Marketing Club, Enhanced Activity Incentives Results: 2012 New Revenue Nearly $1M 2013 New Revenue $650K 2014 New Revenue $450K

Marketing: BEST IDEAS [Discussion] As COO/FA have you implemented a powerful or unique marketing idea? 33

Strategy #2: Retention

Top Five AICPA/PCPS Issues Retaining Staff 2.Finding Staff 3.Partner Accountability and Unity 4.Seasonality/Compression 5.Succession Planning (tie) 5. Finding New Clients (tie) Source: AICPA/PCPS 35

Top Five AICPA/PCPS Issues Retaining Staff 2.Finding Staff 3.Partner Accountability and Unity 4.Seasonality/Compression 5.Succession Planning (tie) 5. Finding New Clients (tie) Source: AICPA/PCPS 36

High People Retention Influences: Reduced costs/time for recruiting Happy people refer their friends Happy people take better care of their clients Happy clients stay with firms longer (and buy more) This all makes GROWTH easier! 37

What Top Talent Wants! Feedback/Reinforcement/Recognition Flexibility Culture of Training/Development/Mentorship Top Technology Collaborative Environment Complete Transparency Be a Part of Something Bigger/Make a Difference Leadership Opportunities Above Average Compensation 38

What’s in your “Retention Plan?” Better and more Frequent Feedback/Communication Internal Training Academy Flex/Remote Arrangements Internal Culture Committee Firm Events Leadership All Levels Internal Recruiting Committee 39

Internal Training Academy “XYZ-University” 40 Firm Development Business Development People Development Client Development Personal/Professional Development

Personal and Professional Development Personal SWOT Defining your Personal Leadership Style* Creating a Personal Development Plan Time Management 101 Accounting Firm KPI’s: How a Firm Really Makes Money 41

Client Development Understanding your Role with the Client Being a Proactive Advisor Developing Relationships and Building Trust Cross-Serving/Selling Achieving Loyalty – and Referrals! 42

People Development Delegation and Leverage as a Development Tool Team Building 101 Serving as a Mentor and Coach to your Team Performance Management Delivering Effective Feedback 43

Business Development Building a Personal Brand and/or Niche Capitalizing on your Biggest Asset: Clients Developing a Referral Source Network Succeeding at the Sales Process 44

Firm Development Herding Cats: Leading Other Professionals Creating a Culture of Accountability Strategic Planning 101 Leveraging Technology Talent Acquisition & Retention Niche Growth and Expansion 45

Higher Retention Facilitates Growth! 46 =

Higher Retention Facilitates Growth! 1.Benchmark 2.Set a Goal 3.Develop a Plan 4.Build a Team 5.Implement 6.Measure 47

What’s Our Firms? 60 Partner Firm Internal Leadership Academy Hartman Assessment Path to Partner Program Internal and External Coaches ELA 48

What’s Our Firms? 25 Partner Firm CPAM NextGEN Internal Coaching Program Roundtables ELA 49

What’s Our Firms? 15 Partner Firm Elevated HR Role Leadership and Development Courses Internal Mentorship Rainmaker 50

What’s Our Firms? 10 Partner Firm New Talent/Learning Director CPAM NextGEN/CALCPA YP DiSC & Course Offerings ELA 51

Retention: BEST IDEAS [Discussion] Have you implemented a powerful or unique retention idea? 52

Strategy #3: Recruiting

Top Five AICPA/PCPS Issues Retaining Staff 2.Finding Staff 3.Partner Accountability and Unity 4.Seasonality/Compression 5.Succession Planning (tie) 5. Finding New Clients (tie) Source: AICPA/PCPS 54

Top Five AICPA/PCPS Issues Retaining Staff 2.Finding Staff 3.Partner Accountability and Unity 4.Seasonality/Compression 5.Succession Planning (tie) 5. Finding New Clients (tie) Source: AICPA/PCPS 55

More Effective Recruiting Influences: Reduced costs/burden for recruiting (doing less of it!) Recruits more aligned with culture (easy on everyone) “Good fit” people will recruit their “good fitting” friends someday Reduced annual voluntary turnover This makes GROWTH easier 56

Reactive Hiring Model 1.We run lean so there isn’t any excess capacity, because that would be foolish. 2.Someone quits 3.We scramble to begin the hiring process 4.The remaining team members struggle to maintain service levels 5.We “settle” on the best person we can find at the time (but know they aren’t a long-term fit) 6.REPEAT WHEN THEY QUIT 57

Reactive Hiring Model 1.We run lean so there isn’t any excess capacity, because that would be foolish. 2.Someone quits 3.We scramble to begin the hiring process 4.The remaining team members struggle to maintain service levels 5.We “settle” on the best person we can find at the time (but know they aren’t a long-term fit) 6.REPEAT WHEN THEY QUIT 58

Proactive Hiring Model 1.Attempt to over-hire in each department by 10+%. There is some “slack” in the system to deal with unanticipated issues. Anticipates attrition 2.Maintains a pipeline of possible candidates at all times 3.When someone quits, it’s not a crisis and our team members don’t suffer/struggle 4.And, because there isn’t an acute crisis we can hire the right person who is a long-term fit 5.Long term we have more of the right people and better retention! 59

Proactive Hiring Model 1.Attempt to over-hire in each department by 10+%. There is some “slack” in the system to deal with unanticipated issues. Anticipates attrition 2.Maintains a pipeline of possible candidates at all times 3.When someone quits, it’s not a crisis and our team members don’t suffer/struggle 4.And, because there isn’t an acute crisis we can hire the right person who is a long-term fit 5.Long term we have more of the right people and better retention! 60

A Few Concerning Statistics…

Talent Shortage Issues 62 Source: Accounting Today

Just the facts… New bachelor graduates 2003: 53,000 New bachelor graduates 2009: 35,000 New bachelor graduates 2011: 53,000 >>>The ranks of our 6-9 year experienced professionals are meager! 63

New Graduates Hired by CPA Firms Source: Accounting Today

Just the facts… Expected hiring demand for accounting graduates across all industries to grow about 16% through Expected growth for accounting firms is about 52% through Source: BLS and Accounting Today What does this mean? 65

Just the facts… In 1990 we hired 31% of available graduates… In 2000 we hired 32% of available graduates… In 2005 we hired 33% of available graduates… In 2012 we hired 48% of available graduates… In 2014 we hired 53% of available graduates…. Source: BLS and Accounting Today 66

> Just the facts… Expected hiring demand for accounting graduates across all industries to grow about 16% through Expected growth for accounting firms is about 52% through Source: BLS and Accounting Today What does this mean? 67 Source: Accounting Today

What’s in your COLLEGE Recruiting Plan? College Recruiting 1.Who’s representing your firm? 2.Are you at the right schools? 3.Are you nimble and quick? 4.Do you have relationships with professors? 5.What are you sponsoring at the school? 6.Have you considered the Hogan assessment? 7.Is your marketing adequate? 68

What’s in your EXPERIENCED Recruiting Plan? Experienced Hires 1.Are you leveraging your staff? 2.Do key leaders have personal/individual talent pipelines? 3.Do you know who’s your next big hire? 4.Do you have relationships with (good) recruiters? 5.Are you limiting yourself unnecessarily by geography? 6.Are you fully considering non-traditional hires? 7.Is your marketing adequate? 69

Why is Sourcing Recruits Solely your Responsibility? 70

Leverage your Staff! Every firm has a significantly underutilized recruiting engine – it’s people. (each firm is its own recruiting agency!) In many cases your client service staff will have existing connections that can be leveraged immediately It’s can be faster, cheaper, and produce higher quality candidates than doing a job posting… 71

Staff Recruiting Committee  Establish a recruiting committee  Publish every opening internally and using your firm’s social media  Talk about recruiting often in meetings  Offer a generous recruitment bonus  Host proprietary recruiting events  Celebrate recruiting successes 72

Consider Personal Talent Pipelines An active list of people who are suspects for employment by your firm. They are touched quarterly with information of value The pipeline is developed and managed individually by each one of your people. Considered a RESPONSIBILITY 73 NameFocusYears Exp FirmLast Touch Next Touch Notes Colleen Kuesel Audit NPO 14EYMarch 2015 August 2015 NPO Leader?

> Why it makes sense? Great people are hard to find Culture fit is easier to assess It’s relatively easy and it takes just a few hours of non-billable time per person per quarter It fills the medium/long term pipeline You can pay a bonus to your people instead of a recruiter 74

Better Recruiting Facilitates Growth! 75 =

Develop your Recruiting Plan 1.Benchmark 2.Set a Goal 3.Develop a Plan 4.Build a Team 5.Implement 6.Measure 76

Recruiting: BEST IDEAS [Discussion] Have you implemented a powerful or unique recruiting idea? 77

Strategy #4: Build a Practice

Top Five AICPA/PCPS Issues Retaining Staff 2.Finding Staff 3.Partner Accountability and Unity 4.Seasonality/Compression 5.Succession Planning (tie) 5. Finding New Clients (tie) Source: AICPA/PCPS 79

Top Five AICPA/PCPS Issues Retaining Staff 2.Finding Staff 3.Partner Accountability and Unity 4.Seasonality/Compression 5.Succession Planning (tie) 5. Finding New Clients (tie) Source: AICPA/PCPS 80

Why Build a Practice? 1.Help firm clients 2.Indisputably contribute to growth 3.Increases your financial value/leverage 4.Be “closer to the table” 5.Leverage/reduce your less value tasks 6.Remember 50% (or more) of firm growth is coming from consulting services 81

Billable Practice Facts 1.Approximately 20% of COO, Firm Administrators, HR/Marketing Directors have a billable “practice” 2.Billings are usually between $ K/year – “solo model” 3.Services are aligned with past experience and capabilities (and client needs) 82

Can you Provide any of these Services? 83

> Audit? Tax? What else???? 84

How to get Started? 1.Have a discussion with your MP 2.Start “off-broadway” & work out the kinks first! 3.Make partners aware of your capabilities/interest 4.Target clients with high-potential first 85

Billable Practices: BEST IDEAS [Discussion] Do you run a practice and have you considered starting one? 86

Summary 1. AICPA/PCPS top issues Contributions via marketing: Marketing culture - is marketing everybody’s responsibility at your firm? 3. Contributions via retention People development programs 4. Contributions via recruiting Enhancing your recruiting model 5. Contributions via direct revenue Building a practice to drive revenue 87 81

Find Resources: kueselconsulting.com/CPAMOCT15

THANK YOU! Art Kuesel, President Kuesel Consulting, Inc