1. Plan and Lead in the Right Direction By Rex Gatto, Ph.D. Gatto Associates, LLC 412-344-2277 Email: rex@rexgatto.com Website: www.rexgatto.com

2. Thought Provoking Books   “ Smart Mangers FAQ” by Gatto   “ Winning in Fast Time ” Harness the competitive advantage of Prometheus by Warden   “Blue Ocean Strategy” by Kim

3. Leadership Objectives I. I.Learn leadership styles and dimensions needed for firm development characteristics II. II.Learn how to write a strategic plan process for your firm III. III. Learn how to effectively lead people to achieve

4. Strategic Leadership   Every action affects the future of your firm   Specific actions = a specific future   Everything happens in a system   All systems can resist change

5. Four Leadership Imperatives   Design the future   Target for success   Campaign to win (who is the person on the white horse)   Finish with finesse

6. Leadership   Asking the right questions   Making the right choices

7. Leadership Planning Process   Pre-planning   Environmental Scan   Formulate Strategy   Implement Strategy   Evaluate Strategy and Make adjustment

8. Pre-Planning   Decide on:   Process   People involved   Time frame   Planning tools (i.e. SWOT or PEST)   Have and Wants (reviewed later)

9. Environmental Scan   How is the firm doing?   Do we have the right people in place?   Right niche or department mix?   Are we meeting competitive challenges? Where are we NOW?

10. Formulate Strategy   NOT TOO SOON!   Develop your firm’s vision   Develop your firm’s mission   Establish your firm’s values (what is rewarded)   Establish measureable action plans   Where do we want to be?

11. Implement Strategy   Develop measurable goals   Develop a budget   Develop niche or department goals   Develop individual partner goals to support niche/department goals   Execute: take the right action   How do we get to where we want to be?

12. Evaluate Strategy and Make Adjustments   Measure actions and results   Adjust (do not wait)   Continue to use the strengths of the firm for a competitive advantage   Be specific and layout practical steps toward achievement   Know your: firm, industry, marketplace and technology

13. Strategic Planning Pages 13-26; 237-241

14. Introduction Development of a Planning Process Ability to plan is an important part of the business environment Planning should answer the questions of how and why

15. Introduction   Development of a planning process   Ability to plan   Future behavior   Response   Decision making   Self development

16. Planning Process in Action   Background: analyze present situation   Reason to plan: Identify needs, wants, and desires; Course correct goals if needed   Comparison: future to present situation   Implementation: explain the goal, develop alternatives, and be flexible

17. Planning Process

18. The Right Questions Where are we now? Where do we want to be?

19. Definition of Planning   Decision making   Where you are   ID risks   Hazards/opportunities/goals   Power to control

20. Plan to Succeed   Identify the future   Understand the present   Develop a strategy

21. Present/Future Model

23. Simplified Strategic Process Organization  Goals  Strategic Action  Participation  Results

24. Simplified Strategic Process Organization  Benefits  Shared Visions – measurable  Teamwork – shared ideas  Set priorities and adapt to change  Develop new thinking

25. Simplified Strategy  Work with the end in mind  Establish a personal/team vision  ACT  Input  Know the desired results

26. Five Benefits List five benefits you will gain from strategic planning: List five benefits you will gain from strategic planning:  1.  2.  3.  4.  5.

27. Avoid in Strategic Planning  Unclear goal; not clarified  No input from others  Not utilizing resources  No implementation  No measured success  Failure to support ideas  Not complying with strategy  Not making tough decision

28. Conceptual Model 1. Our firm will be committed to achieve recognition as business leaders in providing effective and ethical accounting principles to clients 2. Our partners, managers and staff will be perceived as dedicated, competent and quality conscious. 3. Our firm will be know for offering a fair equitable and stable work environment with competitive compensation, learning opportunities and career growth for it people 4. Our clients will recognize us for our leadership, business acumen and advice in providing business accounting services

29. Strategic Actions: Points of Measurement  Cultivate and nurture productive partnerships – people - business community  Acknowledge and recognize our people & clients  Establish best team practices  Collaborate/Educate without being condescending  Determine right method to cost inventory  Understand the impact of our decision in other areas  Support each other - unification

30. Operational Tactics  Operational tactics = Decisive Actions  Strategic Action Statement  Tactical actions support and help to achieve the Strategic action

31. Follow-up Action  What is being worked on  Significant experiences  Learnings  Do differently  Situational change  Gone well  Change

32. Decision Making  Thought process  Selection of a course of action  Final choice = decision  Therefore, decision-making is a reasoning process, which can be rational or irrational, and can be based on explicit assumptions or tacit assumptions  Examples: shopping or eating

33. Equation for Decision Making (Vroom Jargo) D (effectiveness) D (effectiveness)= D(quality) + D(Commitment) D(quality) + D(Commitment) – D (time penalty)

34. Questions  Questions:  Is commitment high or low?  Is leaders’ information high or low?  Is problem stated clearly?  Do followers share the goal/outcome?  Is there conflict?  Do you have enough information?

35. Equation for Decision Making Overall (effectiveness) + Dec. (effectiveness) – Costs +Development Overall (effectiveness) + Dec. (effectiveness) – Costs +Development Overall (effectiveness) + D(effectiveness) – Costs +Development(time/training) We don’t see a decision – we see the observable actions from it.

36. Common Decision-Making Biases  Common Decision-Making-Biases.  Selective search for evidence  Premature termination of search for evidence  Conservatism and inertia  Experiential limitations  Selective perception  Wishful thinking or optimism  Choice supportive bias - when we distort our memories  Recent - attention on more recent information

37. Summary You are going through a developmental leadership process; challenge yourself to be the best version of a leader that you can