An Anecdotal Narrative

CroskeyLanni:Yesterday,TodayandTomorrow,anAnecdotalNarrativeByFounder/ManagingPartnerDavidM.Croskey

December10,1986Ilookedatthe$5,000check.Ilookedatthepresenterwhowassoproudtobedeliveringthebonusnews.Ididnothavemuchtosay.Mywifewaseightmonthspregnant.Weweretryingtomoveintoourhouse.Purchasedwhenitwas60%done,wewerestillintheprocessofcompletingit.Inotherwords,itwasamessyconstructionzone.Inthemeantime,wewere“temporarily”livingwithmyparents(again…seebelow)inClintonTownshipbecauseouroccupancypermitskeptgettingdelayed.Iwasactuallylaughingatmyselfandtheentiresituation.Bemused,determinedandcertainlyachallengingtime.ButalsowithathoughtIhadtorepeatedlyblockout–whataloser!WhattheheckwasIdoing?Butwhenyouare26yearsold,youfigureitout–right?TheBackgroundYears,1982-1986Fouryearsearlierin1982,IhadjustgraduatedfromWayneStateUniversity.Iinterviewedatabunchofplaces,soconfidentthatIskippedoutonmylastfiveinterviewswiththeBigEightaccountingfirms.ThefirstthreewereallIcouldhandle;somehow,IwasalreadycomprehendingIwasnotagoodfit.TheymusthavefigureditouttoobecauseIdidnotevengettosecondinterviewsatthethreeIdidtalkwith.IalsohadinterviewswithregionalandlocalCPAfirms,privatebusinessesandgovernmentalemployers.But1982wasatoughtime.Nobodywashiring,interestrateswereat17%.Theeconomywasinanextendedrecession.Iwaslivingathomeafterspendingthepastthreeyearslivingonmyown…well,reallywithmycollegebuddiesatWSU.IfinallywasofferedajobbytheStateofMichigantoworkindowntownDetroit.Ican’tsayIwasexcited.Actually,Iwastickedoff.Accordingtomyplans,Iwassupposedtobeplayingprofessionalbaseballsomewherebuthadnotpickedupabatandgloveforsixmonths.Worse,someoftheguysIhadplayedwithatWayneStatewereintheminors,andafewhadmadethemajors.Itwasreallytroublingtome;eventhoughIhadstatsandattributesthatIthoughtwereatleastasgoodastheirs,Inevergotashot.ButIwasn’ttheonlyoneonourteamnottogetdrafted.Thingsdon’talwaysworkoutlikeyouintend.ButatleasttheStateofMichiganwasajobandmaybeIcouldparlayitintoanotherone.SoIaccepted.Theorientationprocesswasgrueling.Infact,itwassobadthatIintensifiedmyjobsearchinbetweenthetimeIgottheofferandthreeweekslaterwhenIactuallystarted.IcalledandcalledandcalledeveryplaceIhadinterviewed.ThenIphonedthemagain.OntheMondayIstartedmygovernmentemployment,IreceivedacallfromDoerenMayhew,alocal70-personCPAfirm.CouldIcomeinthenextdayforasecondinterviewat9:00a.m.?Iwasofferedajobimmediatelyandneverreturnedtothegovernment–onedayhadbeenenoughforme.GettingStartedandtheCPAExamIlovedworkingatDoerenMayhewsomuchitwasn’twork.Itmademeforgetaboutthepainofnotgettingdraftedintobaseball(Iwilltellthatstoryanothertime).Whatanincrediblelearningprocess!

Theyofferedmeallkindsofinterestingclientstoworkwith,doingtheirfinancialstatementsandtaxreturnsalongwithotherchallengingprojects.Ilikedbeingapartoftheintricatepuzzle,tyingalltheaccountingandtaxpiecestogether,evenmoresoifothercomplexcomplicationswerethrownintothemix.Thecompanyalsoprovidedmewithfiveorsixmentorswhowerehappytoshowmetheropes.Therewasoneguyinparticularwhoseemedtolikeme,lookoutforme,helpmeandgetmeonabunchofhisaccounts.WorkwassofunandexcitingthatIdidnotstudyevenanhourfortheCPAexam.Theexamatthattimewasamandatorytestgiventwiceayearthat’srequiredtobecomeaCPA.Itconsistedoffourparts–businesslaw,accountingandauditingandpractice,whichwasdividedintotwosections.SomehowIpassedonepart–businesslaw.Unfortunately,oneoftheruleswasthatyouhadtopassatleasttwosectionsinordertocarryanythingoverandnotretake.Thenexttimethetestcamearound,Istudiedmytailoffandeventookareviewcourse.Isuccessfullypassedthreesections–everythingbutbusinesslaw!Ifinallygotthroughthelastpartonmythirdtryandayear-and-a-halfintomycareer.ButbecomingaCPArequiredasecondmandatoryqualification:onehadtoworkforaCPAfirmforatleasttwoyears.Aroundthesametimein1984,oneoftheclientsIhadbeenworkingfor,HarrySchoeneberger,offeredmeajob.Irepeatedlytoldhimno,butthanks.BetweenlovingwhereIworked,thevarietyofchallengesIhadandthefactthatIneededsixmoremonthsofexperiencetoqualifyasaCPA,Ithoughtitwaseasytokeepsayingno.1984:TheSchoolofHardKnocks-My“Real”TrainingBeginsHarryownedBayviewElectric,aconstructionbusiness,alongwithaseparatelightingsalescompany,anequipmentleasingcompany,arealestatebusinessandarestaurant.Hewasanamazingandelectrifyingfigure.“Liveitup”washisthemeinlifeand,boy,didhe!Eventuallyheuppedtheante(includingsomeownership)somuchthatIdecidedtogivethejobatry.WhathelpedwasDoerenMayhewindicatingIcouldcomebackatanytime;theyalsopredictedI’dbeluckytolastsixmonthsworkingforHarry.Mypaytriplednow,includingbenefitslikeacar.AlwayshavingbeenaDetroit-areaeastsider,Harrymovedmeintoawestsidemansion,rightneartheofficeonMeadowbrookLaneinRedfordTownship.IhadalreadyfiguredoutthatthelearningcurveataCPAfirmcanbeasintenseandgrandasonewantstomakeit,offeringmanydifferentstylesandwaysofdoingaccountingandtaxesacrossdiverseindustriesandtypesofpeople.ItisonereasonwhytrainingataCPAfirmissovaluable.Mylearningcurvehadbeenlikealadderleaningupagainstahouse–verysteep.Butmybusinesseducationhadonlybegun.BecausewhenIwenttoworkforHarry,heshowedmethathecouldnotwaitforfinancialstatementsortaxreturnstomakedecisions.IlearnedwhatwastobecomethefoundationofCroskeyLanniasweoperatetoday.Isatinthehotseat,functioningascontroller,CFO,treasurerand”quasi”owner,requiredtolearnatanevensteeperpace–likeclimbingaladderthatwasperfectlystraightup.Ihadtodealwithcashflow,theimportanceofsalesandthenextrevenuesource,theimpactonpricingandrelationshiptogrossprofitmargins,mixofproducts,bidding,thenecessityofhaving the right people, the value of relationships, projections, inventory, internal controls, banking,insurance,legalandevenhowtomanageoutsideCPAs.ButayearintoworkingwithHarry,Ihadnotgottenacontractandcouldseeittobealonghaulbeforehewouldactuallyreallysignoversomeownershiptome.Additionally,Igenuinelymissedtheactionat

theCPAfirm,especiallysinceIstilldesiredtobecomeafull-fledgedCPA.MostpeoplethinkofworkingataCPAorganizationasabunchofcrunchingnumbers.Whilethatispartofit,thereisalsothegeneralrequirementtobeabletosuccessfullymanage20to100thingsatonceandkeepthemallstraight.Imissedworkingwithateamandthevarietyofclientsandpuzzlesconstantlychanging.TheCPAindustryiswheremyrealtraininghadbegun,learningtheimportanceofteamwork,witheveryonesimultaneouslycultivatingthesamegoalwhileoftenonsensoryoverload.Taxseasonswerearushtome.Ilovedthem.AscomparedtothedifferentlearningIwashavingwithHarrywhereitwasmoreofaschoolofhardknocks,italsohadamorerepetitiveprocessenvironment.Betweenthetwovariations,vastlydifferentatmospheres,IsawwhatandhowonecouldtieallthepiecestogetherinabetterfashionbecauseofthebackgroundInowhadwithHarry.IfeltIhadobtainedapermanentlybetterperspectiveaboutwhatabusinessownerreallywantedandneededinaCPA.ItwasonethatmostCPA’sdon’tgetthechancetoexperience–thatofworkingfromtheperspectiveoftheveryclientsweserve.IfeltthatIcould,byworkingwithotherpeople,makeapositiveimpactontheirbusinesses.ThisremainstodayasthemostrewardingaspectoftheCroskeyLanniteam–helpingourclientsinwaysthatmatter!ReturningtoBecomeaCPAIwentbacktoDoerenMayhewwhileHarryremainedaclientandmentorfortherestofhislife.IcanneverthankthelateHarrySchoenebergerenoughforprovidingmeafoundationsodifferentfrommostofmypeers.DuringthetimeIworkedforhim,healsogavemetheopportunitytomeetanumberofinfluentialpeople.ManywerebusinessownerswhosoughtmeoutafterIwentbackintotheCPAworld.Mystatustherewasabitofananomaly.Ihadstartedmycareerwithanentry-levelsalaryandgotasizableraiseafterthefirstyear.ThenHarryforeverhijackedmycompensationperspectivebypayingme75k.ReturningtoDoeren,Ibrought60kofnewworkwithmefrombusinessownersIhadmetthroughHarry.Butwhatwasanestablishedfirmsupposedtodowitha25-year-oldwhowasnotevenfullycertifiedasaCPA?Weagreedtoasalaryintheneighborhoodof45kandato-be-determinedbonusbasedonhowthingswent.The60kofworkturnedinto85k.Often,theseclientswantedtocomeintomeetwithme,soIwassetupwithanofficestagedasmine;then,I’dreturntomyplaceinacubiclewiththerestofmypeergroup.Theseaccountsonlyconsumedabout33%ofmytime.Thatleft,atleastfrommyperspective,another1,200hoursthatthecompanycouldchargemeoutat100%profitability.ILookedatthe$5,000BonusCheck……fromDoerenMayhew,wenthomeandputitonmybathroomcounter.Iconsiderediteverydayforaweekbeforefinallyputtingitinmypocketandmarchingbackintothepartner’soffice.Italkedtohimaboutthemathnotaddinguprelativetomypay.HedescribedallthecostsinvolvedinrunningaCPAbusiness,aswellasthemanyattributesthefirmbroughttoclientsaswellastomyself.HisreasoningwasanimpossibletaskbecauseIreallywasnotlisteningtohim.Thebesthecoulddowastoputanother5konthetable,payableattheendoftheyear.Itdidnotsitright,butanothertaxseasonwasuponus.Overtheupcomingweeks,ItalkedwithavarietyofthepartnerseverychanceIgot,discussingthefutureandmyopportunities.Meanwhile,Ibroughtinmoreworkwhilecontinuingtosuccessfullyserviceotherclients.Aftertaxseasonended,IwentbacktohimwiththeconceptofgoingoutonmyowntostartaCPAfirm.

GettingReadyfortheBigStepItmusthavebeenhardforthemtotakemeseriously.Infact,onereactionwaslaughter.Anotheronewasdisbelief.Ourindustryisverycomplicated,requiringknowledgeinawiderangeofexpertiseareas,withtaxationandaccountingbeingthesimplestofthese.Howandwhywoulda26-year-oldwhowasbarelyaCPA,withanewbornsonnamedEricandbrightfuturewherehewas,believehecouldhavebettersuccessonhisown?Butthemorewetalked,theclearermypathbecametome.Icontactedtheregulatoryauthorities,determinedtoresignproperly,ethicallyandpursuanttotherulesoftheprofession.IfiguredifIlefttherightwayandthingsdidnotworkoutonmyown,Icouldcomebacktothefold–again.Still,Ireallyneverthoughtmuchaboutdoingthat.Therealitywas,IwaspragmaticallydeterminedIcouldworkhardandfigureitout.Thatwasmostoftheplan.Iguessinhindsight,itreallywasn’tmuchofaplan.Maybethat’swhyIamsuchasticklerforwrittenplansnowadays–theyreallydowork!LayingtheFoundationforCroskeyLanni,1987-1990OnOctober1,1987whatistodayCroskeyLanni,PCwasfounded.AtinceptionthecompanywasformedasKrentzCroskey.JeffreyKrentzwasahighschoolandWayneStateUniversityfriend,colleagueandentrepreneurwhohadstartedaCPAfirmonhisownattheageof25.Hispassionwastechnology.WesetupshoponRochesterRoadatSouthBoulevardinRochesterHills,Michigan,sharingspacewithaveterinaryclinic.Rightnextdoorwasarock/boulderreseller.Thedailydrop-offsofmassiveamountsofrockrumbledourbuilding.HealreadyhademployedoneteammatewhoactuallystartedbeforeTomLanniandmyself–DebbieRobinson.Shewasteammatenumerouno!ShewasapartofourhumblebeginningstodaysuccessfullyleadingourSmallBusinessTeam–oneofthemanylongtermersourcultureproudlyadvocates.BuildingaTeam,PartnersandClientsAfteritbecomepublicIwasleavingDoerenMayhew,myfavoritementorandassociate(remembertheoneguyinparticularwhohadtakenaspecialinterestinmewhenIhadstartedthere?)approachedmetosaycongratulationsandgoodluck.ThomasB.Lanni-Whatagemofaman.TomkiddedmethatIshouldhavetoldhimaboutmyplans.IexplainedthatIwascarefultoleaveundergoodtermsandhadconsultedMichiganandnationalCPAsocietiesforhelponwhatIcouldandcouldnotdo.OneoftheruleswasthatIcouldnotsolicitclientsormembersofthefirmIwasleaving.TheclientsIhadbroughtinwerefreetogowheretheywanted,whichIknewwaswithme.Ninemonthslaterinthesummerof1988,ourfirmbecameKrentz,Croskey&LanniwhenTomjoinedusasmentor,partnerandfriend.Lookingahead,ourgoalwastoaddapersonayear.Weintendedtogetto20teammateswhilestayingundertheradar.WesimplywantedtobecomethebestCPAtoourclientsandteam–everyoneelsebedarned!IcouldnothaveteamedupwithabetterpartnerthanTom.Heremainsoneoftheblessingsinmyprofessionalcareer.Hissteadyhand,wiseintellectandbalancingdemeanortowhomIamasapersonistheindescribablehistoryofthesuccessandcultureofCroskeyLanni.

Ourearlyyearsweredominatedbyconstructionclients,andbyfindingoutourcashflowhadhugepeaksandvalleys.Totrystabilizing,wedecidedtomarkettootherindustrysectors.ThatincludednetworkingwithStateFarmInsurancetocreateaspecialtyareathatexiststothisdayintheformofworkingwithindependentandnationalagencies.Aboutthesametime,oneimportantclient,AndersenMaterialHandling,wentthroughadevastatingexperienceastheirretirementplanproviderwentbankrupt.Everyonehasheardaboutgovernmentguaranteesoninvestmentaccountsandthelike.Buthowmanypeoplehavehadtogothroughtheexperienceofdealingwithit?CroskeyLannitooktheleadroleonbehalfofAndersentomaneuverthroughthisverycomplexprocess.No,Andersenemployeesdidnotget100%oftheirinvestedaccountbalances.Itwasactuallycloserto80%andtooknearlythreeyears.WeledtheAndersentaskforceresearchingretirementplanindustryproviders.Weliterallyreadthesmallprintinmultipleprospectuses.Itwasamazingtolearnthetruth.Theendresultwasincredibleknowledgewhichweutilizedtostartourfirstspecialtybusinessinthelate1980s.Thisremainsanimportantpartofourserviceofferingstoday–BarclayPlanningGroup.OurpartnerCarolynJonesisoneoftheleadingexpertsinthecountryandleadsthisSpecialtyteam.ShehasdonesomementoringofherownasGinaChaseisnowmovingintoasimilarpositionatCroskeyLanni.DevelopingSpecialties

CharterschoolswereintheirinfancyinMichiganin1994–theyearthefirstCharterschoolopenedinMichigan-creatingauniqueopportunitythatwestrategicallydevelopedasanotherspecialtybypartneringwithJohnRomine,oneofthefoundingfathersoftheindustry.Wedevotedresources,time,moneyandtrainingtogrowinginthatsector,effectivelybuildingareputationthatwebelievetodaymakesusthebestproviderininthestate.PatrickSweeneyisnowourpartnerinthecharterandfor-profitschoolindustry.Hisexperienceandexpertisecannotbematched.MelissaMayandKevinTerrytodayhavetheexpertiseastheyhaverespectfullymovedintoleadershippositionsinChartersandNonProfits.Weexpandedintootherareasaswell,allnecessitatedasawayofgoingbeyondourinitialconstructionspecializationanddependency.Thisgrowthisanexampleofouradaptingandchangingwhileevolving.

WefedoffofourrelationshipwithAndersendevelopingaspecialtypracticeinMaterialHandling,DistributionourPartnerRogerDeJongnowleads(alongwithConstruction).

Inourearliestdays,weaskedsomeofourkeyclientcompaniestohelpusoutbypayingmonthlyamounts,whichwediscounted,inordertoestablishconsistentcashflow.We’reproudtostillbeservicingmostoftheseearlyclients.TheyincludeAndersenandMikePinkletonofCalculusConstruction/IntechAnchoring;LennySchafer,joinedlaterbyPaulDoppkeofLandscapeServices;JohnRomineandhissonPauloftheRomineGroup;JimDinvernoofDinverno,Inc.,continuednowbyworkingwithGuidoandMaryKayDinverno;andthelateDennisCavanaughofDataReproductions.BothJimandDennisgenerouslyandbeneficiallypaidus25kinfullatthestartoftheyear.(Ofcoursewefoundthemtaxadvantagesfordoingso.)

ArguablyourmostimportantclientremainsAndersenMaterialHandling…notjustinprovidingusimportantoperationalconsultingprojectsonanongoingbasissinceourfirstdayofbusinessin1987orbecausewecontinuetoworkwithTomCampau,Jr.andBobbyO’dette,thethirdgenerationof

leadership.Aboveall,Andersenhasplayedanessentialroleinourdevelopmentaswewitnessedandparticipatedintheircommitmenttoconductingbusinessutilizingthebestattributesofthebestorganizations.Wehaveparlayedtheseexperiencesintoaspecialtydiagnosticconsultingpracticethattodayprovidesincrediblevaluetoclientsthathavegonethroughthisprocess.ThankstofounderHansAndersen,JimO’dette,andespecially,TomCampau,Sr.whospentthemosttimementoringme.TodayRandyNoblesandBrianO’Reillyleadourconsultingpractice.Whilealloftheabovewereorhaveevolvedintobeinglargeclients,therearescoresofotherswhohavebeenpartofourrosterovertheyears.Whileourfeestothemaremuchless,weservicethemwiththesamepassion:KenandSandyAndreoni,RonandSueDaiza,JohnandSharonReidel(theconferencetablethatrelatestoJohnandSharonisdescribedshortly),tonamebutafew.Ontheothersideoftheequationwasacontractorwhopaidus2kamonthbutbeatusupineveryotherregard.Initially,wetooktheabusebecausewecouldnotaffordtolosethecashflowandwork.Butwecanattesttooneofourmosthistoricandproudestmomentsbeingthedayafewyearslaterwhenwewerefinallyinpositiontopolitelyinformthistyrantthatwedidnotneedhismonthlypaymentorhisbusiness!Wealwaysalsotriedtosecuremoreofficeareathanwerequiredsowecouldsubleasesectionsuntilweneededit.OnetenantwasattorneyandcounselorextraordinaireGeraldA.Gordinierwhohunghisshinglewithusformorethan20yearsbeforefinallymovingtobeclosertohomeandfamily.Westillmisshim.MovingOnUp…andOutAsweslowlygrewto10people,webegantorunoutofspace.Wetransitionedafileroomintoajointrecordsandconferencecenter.WhenoneofourStateFarmclients(JohnandSharon,seeabove)retired,wetradedserviceswiththeminexchangeforahuge,“boo-u-dhoo-ful”mahoganyconferencetable.Theproblemwas,wedidnothaveaplacebigenoughtoaccommodateit.Fortunately,thepiecewasbuiltinthreesections,abasewithtwohalvesthatfittogethertoformthetop.Forawhileweusedonlyhalfofthetable.Westillhaveitandfortunately,now,aplacelargeenoughtohouseitinourmainRochesterofficeconferenceroomafterbeingrenovatedyearsagobyanotherlongtermclientJeffMiechaelsofMike’sAntiquary.Finallymaxedout,welocatedabuildingonBarclayCircleinRochesterthatwasemptybecausetheprevioustenanthadmovedtolargeroffices.Bysubleasing,wewereabletorentathalfofmarketvalue.Itwasavaluablelessonbecausefacilities,afterpayroll,aregenerallyaCPAfirm’slargestexpense.Whenourleaseexpired,wewereabletocapitalizeonasimilarsituationinanotherbuildingnearby.Threelocationsin10yearsmeantalotofscrambling,butthesavingswereworththeeffort.Plus,webecameveryefficientatmoving,turningthatflexibilityintoastrategiccashflowadvantage.GrowthandChange,1991-1999In1993StevenRaiecevich,aCPAcolleagueandfriend,approachedusaboutmerginghisbusinessintoours.ThetimingwasgoodbecausedespitethestrongpartnershipwithJeff,TomandIwereattheinfancyofevolvingthefirmwithmoreprocesses,internalcontrolsandprocedures.ThistypeofenvironmentwasnotforJeff.OneoftherealitiesofourgrowthwasJeff’sdeterioratinghappinessindealingwiththeconstraintsplacedonhispreferredstyleofpractice.WebegantomutuallyworktowardspinningJeffoffintohisownindependentCPAfirm.

ForabriefperiodournamewasKrentzCroskeyLanni&RaiecevichuntilJeffwasabletogooffonhisown.ThenwebecameCroskeyLanni&Raiecevich.Thepartingwascompletelyharmonious,andweremainedclosefriendsforthebalanceofJeff’stoo-shortlife.Itwasaroundthistimeanothersignificanteventoccurred–thehiringofCarolynJones.InduetimeCarolynledourtaxteamasshedoestodayworkingwithmorelongtermersMattHoch,TheresaBarylskimorecurrentlywithMarkIrwinandJoelZielke.LookingforaHomeIn1997wepurchasedanawesomepieceofpropertyonthesamestreetwherewehadbeensubleasing.Wecouldnothavebeenmoreexcitedaswedesignedandconstructedour“permanent”home.Nosoonerhadwemovedinwhenaclientfriendfellinlovewiththeplaceandinquiredaboutpurchasingthebuildingfromus.Hejusthadtohavethatbuildingandkeptincreasingtheofferingpricetothepointthatwewereforcedtohavesomeseriousinternaldialogue.Tomwasveryadamantthataftersomanymoves,weneededstability;havingaplaceforourfirmwasthepriority.Hefeltthatthevalueofthebuildingwouldremainforthelongterm.HewiselyremindedStevethatourprimaryobjectivewasconsistency.Hewascorrectinthatourvaluewasthereandwouldremain;wecouldearnabetterreturnoninvestmentasanowner-occupiedbuildingthananyofuscoulddointhestockmarketorelsewhere.Stevesawitanotherway,almostlikearevelationandasign.Hisviewwasthatthemonetarygainwaslife-changing,requiringustosell.Nothingelsewasrelevantandhewasrelentlessinhispursuittogainourconsent.IagreedwithTom,exceptforonesignificantfactorconflictingmeatthetime.Iwasrecentlydivorced,whichrequiredmetopaymyex-wifeher50%shareofmyownershipofCroskeyLanniasapartofthesettlement.Ifeltbroke.Iwaslivinginarentedhomewithtwobedroomsetsformythreekidstosleepandakitchentableasabouttheonlyfurniture.Themoneylookedveryattractivetomeasawayofbeginningtopulloutofthecashcrunchcommonlyassociatedwithdivorce.Overtimewedeferredtheprimarydecisiontothemostpassionateperson,Steve.Ifthismeantthatmuchtohim,anditclearlydid,weagreedtosupporthim.Youhaveheardaboutgutfeeling,intuitioninstinctiveawareness?Wehaveseenittimeandtimeagainasweworkedwithbusinessandcommunityleaders.Itisavaluableintangible.Forsomereason,asStevetookresponsibilitytoseethetransactionthroughandpresentedusafewweekslaterwiththepurchaseagreementforsigning,athoughtoccurred.Ican’tsaywhy,butIaskedSteveifhewasintendingtosellthebuildingandthenjumpship,leavinganoverheadburdenforTomandmyselftomanage.Heassuredushedidnotplanondoingsuchathing,bothTomandIsignedthedocuments.EmergenceofToday’sCroskeyLanni,2000-2016Sureenough,almostimmediatelyafterclosingonthesaleofthebuilding,Stevetoldushewasmovingon.Whileitwasabitterfinancialchallengeatthetime,hisdeparturewoundupbeingoneofthebestthingstohappentoCroskeyLanni.Ittookhisdepartureforustounderstandtheadverseeffectthosewhoarenot“onthebus”canhaveonabusiness,especiallyifitisapartner.NotthatStevewasabadpartner;tothecontrary,hehadbeenagoodpartnerandfriend.Buthisstyle,asweultimatelyfoundout,wasdifferentfromTom’sandmine.

Welearnedthatsometimesthingscantakeanunexpectedturn.Wecouldnotseeclearlywhilewewereinthemoment.ItwasnotuntillaterwhenwewereremovedfromthesituationthatTomandIcouldlookbacktounderstandthisinvaluablelesson.FinalizingtheName,PlaceandCultureOurbusinessnamefinalizedasCroskeyLanni,thenameandsubstanceofwhowearetoday.Mostnotablewasthecoreteamthatremainswithustoday,creatingourinternalcultureandqualityoflifeatmosphere.CarolynJonescameupinternallyinthisculture,contributinginmaterialwaysandbecomingourpartnerin2000.Beyondherexpertise,shebroughtwithheranamazinginsightandperspectivethatwasunfamiliartoTomandme,creatingvaluefortheentireCroskeyLanniorganization.RogerDeJongandPatrickSweeneyweretwoteammateswehadbeenworkingwithformorethan12years;theyhadbecome,likeCarolyn,teammateswecouldnotdowithout.“Invaluable”isthewordthatcomestomindwhenIthinkaboutthem.In2007,theybecamepartnersandhavebeeninstrumentalinplanning,implementinganddevelopingourteam.AsCarolynistoBarclayPlanningGroup(taxation,too),Patistochartersandfor-profitschoolsandRogertoproduction,servicinganamazingamountofqualityclientwork.ItalkedabouthowimportantTomhasbeentome.Carolyn,RogerandPatrickalsohavesteppedintoinvaluableshoes,nowparlayingourfirmtogreaterheightsastheirstrengthsoffsetourweaknesses.BythistimewedevelopedsomeadministrativestrengthprimarilybecauseofDebbieGenoff,MicheleWeberandDeanaVollman(yes-morekeylongtermers!)In2006afterrentingyetanothersubletlocation,wesubsequentlypurchasedpropertyindowntownRochester,settingoutagaintodesignandbuildthepermanenthomeweresideintoday.Asitturnedout,thefirstbuildingwouldnothavebeenbigenoughforusoverthelongterm.Itnowhadbeen20yearssincewestarted.Ourintentionallyslow,strategic,methodicalgrowthhadresultedinahighqualityoflifeforourentireteamandanawesomeclientbasewithinafamilyatmosphereandfoundationofteamwork.Prettygoodsuccesssofar.EvaluatingandExpandingfortheFutureBusinesseshavealifecycle.In2007,20yearsafterstarting,itwastimetoevaluatewhatwewantedtodonext.Ourindustrygenerallyrequiresgrowthinordertomaintainateamandprovidegoodpeoplewithongoingopportunities.WewerefortunatetoreceiveaninquiryfromCliffPowell,headofPowellandAssociates,areputableRoyalOak-basedCPAfirmlookingtomergeintowithasimilarvalueclient-serviceorientatedfirmthatwouldbetheretotakeoverfromasuccessionstandpoint.Theirteamjoinedupwithusin2008,addingadimensionbeyondjustbringinginclients.Cliff’sknowledgeandexperiencebroughtusexecutive-levelinsightfromaperspectivenotpreviouslyavailable.PattyHarrell,hisdaughterandlongtermteammatecameonboardremainingtodayasourTechnologyleader.Cliffalsobroughtwithhimsomereallycoolsoftwarethatsignificantlyenhancingourabilitytoprovideaproprietaryserviceweoffertoourclientsthathashad100%absolutesuccess–alwayswithamoneybackguarantee.It’saformofabusinessdiagnostic.Ouroperationalbackground–asaresultofmytimewithHarry,putusinauniquepositiontoensureweconsistentlytrainedmanyofourteammembersbyplacingthemintothehotseatasourclientsbookkeeper,controllerorCFO.Combiningthisongoingtrainingexperienceandexpertise,weoftenworkedwithclientsandhaddevelopedahomegrown

businessanalysisconsultingservice.ThesoftwareCliffbroughttidieditallupforusintoaperfectfitsignificantlyenhancingthisimportantservice.Weconductedthisbusinessdiagnosticspecialtyserviceuponourselves.Weevaluatedshareholderalignment,theindustryandourteam,comparingwhatlifemightbelikeifwesoldversusmakingthedecisiontotakeourfoundationandgrowtoa50-personfirm.Successfullymaneuveringthroughtheeconomicmeltdown(theGreatRecessionofficiallylasted18months,fromDecember2007throughJune2009),weinvolvedourfullteamintheevaluationandstrategicprocessassociatedwithournext-stepdecisiontogrow,whilemaintaininganextraordinaryenvironmentforourteamandclients.Together,allofusin2010putintoplaceadocumentedplantodoubleinsizeoverthenextfiveyears,solongaswekeptourfamilyandteamfocus.Thisdecisionwasrelatedtotheworkingsofourindustry,wherebycertaindefinedbenchmarksresultedininfrastructureefficiencies.Wewerenotgoingtogetstuckinthemiddle.Ifweweregoingtogrow,weneededtogetatitbecausethiscanbeadangerousperiodinvolvingpain,includingpotentialteamturnovercoincidingwithprocessandinternalcontrolinamoredefinedstructure.Ourfullteamneededtobeonboardinordertobesuccessful.Theprerequisitewascontinuingtoprovidethehighestlevelofqualityservice.We’vehadafewbumpsalongtheway,butnonethatourclientsfeltseriouslyorthatwedidnotuseasameanstoadjust,takeactionandimprove.Continuousimprovementisournormandourculture.EveryoneatCroskeyLanniunderstandsourVision,Engagesinmakingithappen,Adjustsalongtheway(asalwaysseemstobenecessary),thensimplyGoesforIT.It’sknownaroundCroskeyLanniasVEAGIT!

Webegantozeroinevenmoreonspecializedareasbeyondourexistingniches.In2012wemergedinafirmspecializinginnonprofits,partneringwiththetalentedDick(W.Richard)Shovan.ThisinvolvedopeningasecondofficeinNovi,Michigan,wherewesignedanattractive,option-based,22-yearleaseatfarbetterpricingtermsthanwecouldhaveearnedifweowned.Wealsofocusedondevelopingtheleadershipskillsandinvolvementofallinterestedteammates.Whilecultivatingourteambyinstitutingprocessandinternalcontrols,weprobablyhadafewtoomanymeetingsalongtheway–butmadesuretohavesomefun,too.In2013,weopenedanofficeindowntownFortLauderdale,operatingoutofaFlorida-basedCPAfirm.Astimewenton,wedeterminedweneededareputable,on-the-groundleaderfromtheareainorderto

bestachievesuccess.In2014,wetookauniqueapproachinpartneringwithRandyNobles,afriend,clientandcommunityleaderwhotransitionedfromanearlyretirementasPresidentofComericaFloridaintoleadingourFloridainitiative.HequicklyidentifiedLenny(LeonardA.)GeronemusPA,areputableCPAfirmspecializinginestatesandtruststhatweintegratedintoourgrowingpracticein2015alongwithtwoofhiskeylongtermteammatesMalinkaNyitrayandLisaKalpakjian.TheFamilyCPATeamTodaywerepresentauniqueteamofpeoplewithtenurethatproudlyleadstheCPAindustryintermsoflongevityandexperience,alongwithwhatwestrivetoattainasthehighestqualityoflife.Wedon’tliketothinkofourworkasdefinedinthedictionary–totoilorlabor.Instead,ourcultureisthatofafamilyteamofindividualswhoconsolidate,coordinate,collaborateandhave“eachother’sbacks”onadailybasis.Ourenvironmentisspecial–justasisourteam.Wezeroinonourclientswithoutfanfareoraccolades,assistingthemthroughthechallengingtimesthatareboundtooccurintheirlifecycles,justastheyhaveinours.Mostimportantly,we’rededicatedtohelpinginwaysthatmatter,makingapositiveimpactonpeople,businessesandcommunity.We’vehadafuntraditionrotatingaroundouroffices–apetdognamedVEAGIT!wasbornintoourlorecomplimentsofGinaChasemanyyearsago.VEAGIT!isasilentyetvisiblewaytorecognizeateammate’sgooddeed.WhomeverisinpossessionandtakingcareofVEAGIT!isobligatedtopasshimalongwithinaweekorsotoateammatetheyhavewitnesseddoingsomethingworthyofrecognition.

VEAGIT!co-existsinmanywaysthatstartswitheverynewteammembersveryfirstdayofwork.AfewveteranteammatesprovideauniqueorientationinasessionwherethePDEastmanbookGo,DogGo!isrequiredreading.Ineveryinstance,weembraceextraordinary,evenwhentheunexpectedchallengesusandforcesustoadapt.Changemakesusstrongerandbuildstighterrelationshipsamongourselvesalongwithclients.Ourexpertisedeepens,aswefindnewwaystocreatevalueandinnovation.Withourclientpartnerswelovethefuture,astogetherweenjoyandcelebrateongoingchallengesalwaysseekingsuccess.