How Can You Best Contribute to your Firm’s Top Line Goals? Presented by: Art Kuesel 2015 Leading Partner Retreat &Firm Administrators Roundtable CPAmerica

How Can You Best Contribute to your Firm’s Top Line Goals?

Presented by: Art Kuesel

2015 Leading Partner Retreat &Firm Administrators Roundtable

CPAmerica International

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 trends2

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Today’s Workshop

1. AICPA/PCPS top issues 20152. 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

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Top Five AICPA/PCPS Issues

Top Five AICPA/PCPS Issues 2015

1. Retaining Staff2. Finding Staff3. Partner Accountability and Unity4. Seasonality/Compression5. Succession Planning (tie)5. Finding New Clients (tie)

Source: AICPA/PCPS6


1. Retaining Staff2. Finding Staff3. Partner Accountability and Unity4. Seasonality/Compression5. Succession Planning (tie)5. Finding New Clients (tie)

Source: AICPA/PCPS7

Most Firm Succession Plans Require…

G-R-O-W-T-H !Growth Enables:1) Meet current/future DC needs2) Reward/Retain top performers3) Make new partners4) Fund service expansion5) Increase partner compensation

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Average Firm Growth Last Year

6.3%

This INCLUDES:Rate increasesCross-Selling New clientsMergers

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Is it enough?

Will 6.3% Growth Enable:

1) Meet current/future DC needs2) Reward/Retain top performers3) Make new partners4) Fund service expansion5) Increase partner compensation

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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?

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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.

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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

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2) Skills Training Workshops

Client developmentBuild a personal brandNetworkingBuild referral sourcesWin 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 1515

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

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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 LossesKey Pursuits/ProposalsReferrals In/OutChallenges and OpportunitiesGroup Therapy!

What it does: Enhances communication, knowledge sharing about wins, help each other with challenges, reminder of goal, develop marketing mindset

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5) FORMAL Client DevelopmentTarget top 25 relationshipsBuild more and deeper relationshipsEducate clients on servicesUncover opportunities for additional revenue (cross-sell)Seek referralsFACILITATE Satisfaction interviews

What it does: Assists in creating stronger bonds with your clients, enhances selling skills of your people, grows revenue, boosts client retention

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6) Niche DevelopmentUncover 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 80% +

Source: Accounting Today

60% +

7) Internal “PR”

Communicate about marketing often!

• “Another Win” Emails• Key Pursuit Communication• Conf. Room Celebrations• “Bolt-on” Communication

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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 EFFORTRewards for Group Results

What it does: Incentivizes individual and group behavior. People band together to achieve a goal.

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9) Content/Social/Thought Leadership

Refine your Content StrategyEducating is Selling!Content marketing engages clients, prospects, and referral sourcesDemonstrates knowledge and mastery of a topic Engage your people to writeLeverage/Maximize your Social Media channels starting with LinkedIN and blogging

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What it does: Engages more people in the marketing process, engages clients, prospects and referral sources

10) Key Hires

Hiring a marketing professionalCan help drive grass roots/institutional efforts

Hiring a sales professionalBring new opportunities in the door

Lateral hires: Practice buildersStart or boost a niche with an external hire

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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: 2011-2014 Revenue Growth = 7.3-11.4% 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

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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?

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Strategy #2: Retention


1. 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

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1. Retaining Staff

2. Finding Staff





Source: AICPA/PCPS

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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!

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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

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What’s in your “Retention Plan?”

• Better and more Frequent Feedback/Communication

• Internal Training Academy• Flex/Remote Arrangements• Internal Culture Committee• Firm Events• Leadership Opportunities @ All

Levels• Internal Recruiting Committee

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Internal Training Academy “XYZ-University”

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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

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Client Development

• Understanding your Role with the Client

• Being a Proactive Advisor• Developing Relationships

and Building Trust• Cross-Serving/Selling• Achieving Loyalty – and

Referrals!

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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

Feedback37

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

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Firm Development

• Herding Cats: Leading Other Professionals

• Creating a Culture of Accountability

• Strategic Planning 101• Leveraging Technology• Talent Acquisition &

Retention• Niche Growth and

Expansion39

Higher Retention Facilitates Growth!

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=

Higher Retention Facilitates Growth!

1. Benchmark

2. Set a Goal

3. Develop a Plan

4. Build a Team

5. Implement

6. Measure

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What’s Working @ Our Firms?

60 Partner Firm• Internal Leadership

Academy• Hartman Assessment• Path to Partner

Program• Internal and External

Coaches• ELA

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25 Partner Firm• CPAM NextGEN• Internal Coaching

Program• Roundtables• ELA

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15 Partner Firm• Elevated HR Role• Leadership and

Development Courses

• Internal Mentorship• Rainmaker

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10 Partner Firm• New Talent/Learning

Director• CPAM

NextGEN/CALCPA YP• DiSC & Course

Offerings• ELA

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Retention: BEST IDEAS [Discussion]

Have you implemented a powerful or unique retention idea?

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Strategy #3: Recruiting


1. Retaining Staff

2. Finding Staff





Source: AICPA/PCPS

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1. Retaining Staff

2. Finding Staff





Source: AICPA/PCPS

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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 easier50

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 51

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 52

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!

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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!

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A Few Concerning Statistics…

Talent Shortage Issues

56Source: 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!

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New Graduates Hired by CPA Firms 2014

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< 24,900

< 18,300

< 43,200

Source: Accounting Today

Just the facts…

Expected hiring demand for accounting graduates across all industries to grow about 16% through 2020.

Expected growth for accounting firms is about 52% through 2020.

Source: BLS and Accounting Today

What does this mean?

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Just the facts…

In 1990 we hired 31% of available graduates…




In 2014 we hired 53% of available graduates….Source: BLS and Accounting Today

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> Just the facts…

Expected hiring demand for accounting graduates across all industries to grow about 16% through 2020.

Expected growth for accounting firms is about 52% through 2020.

Source: BLS and Accounting Today

What does this mean?

61Source: 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?

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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?63

Why is Sourcing Recruits Solely your Responsibility?

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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…

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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

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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

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Name Focus Years Exp

Firm Last Touch

Next Touch

Notes

Colleen Kuesel

AuditNPO

14 EY March 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

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Better Recruiting Facilitates Growth!

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Develop your Recruiting Plan

1. Benchmark

2. Set a Goal

3. Develop a Plan

4. Build a Team

5. Implement

6. Measure

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Recruiting: BEST IDEAS [Discussion]

Have you implemented a powerful or unique recruiting idea?

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Strategy #4: Build a Practice


1. Retaining Staff

2. Finding Staff





Source: AICPA/PCPS

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1. Retaining Staff

2. Finding Staff





Source: AICPA/PCPS

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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

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Billable Practice Facts

1. Approximately 20% of COO, Firm Administrators, HR/Marketing Directors have a billable “practice”

2. Billings are usually between $50-100K/year – “solo model”

3. Services are aligned with past experience and capabilities (and client needs)

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Can you Provide any of these Services?

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> Audit? Tax? What else????

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How to get Started?

1. Have a discussion with your MP2. Start “off-broadway” & work out the

kinks first!3. Make partners aware of your

capabilities/interest4. Target clients with high-potential first

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Billable Practices: BEST IDEAS [Discussion]

Do you run a practice and have you considered starting one?

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Summary

1. AICPA/PCPS top issues 20152. 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

8181

Find Resources: kueselconsulting.com/CPAMOCT15

THANK YOU!

Art Kuesel, President

Kuesel Consulting, Inc.

[email protected]

www.kueselconsulting.com

Documents

How Can You Best Contribute to your Firm’s Top Line Goals? Presented by: Art Kuesel 2015 Leading Partner Retreat &Firm Administrators Roundtable CPAmerica