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 Don’t 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!