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2009 AICPA Information Technology Conference

CIO / Executive IT Management In CPA Firms

Peter J. Henley, CPA

June 15, 2009

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Your Firm Needs a CIO!

Technology executives add value. Help the firm accomplish its goals. Project focused, not billable. If you want to stay technical, help someone

else be the executive.

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An Industry in Transition

1980’s – Office manager 1990’s – Network Administrator 2000’s – IT Manager Next decade – Tech executive Now is when techs are pushing up, but the

future is owners pushing down (Growthwave.com, Woodscreek.com)

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How it Works

FormulasPlanningDecision ModelsPolicyRelationships

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Skills Evaluation

Leadership Finance

Technical Project Management

HR (intra department)

Marketing & communications (inter dept.)

Business Savvy

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Who You Are Trust is developed by processes, and formulas, not charisma. Values must align with the organization Competencies: Strategic agility, business acumen, results- orientation,

financial stewardship, political savvy Thirst for knowledge and lifelong learning Systematic thinker Listening – seek to understand first A positive, upbeat, but realistic person Secure, likeable, approachable with a good sense of humor

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Integrity

Trust – It’s your responsibility. Keep your word. Manage deadlines. Be a company person. “They” is YOU! Never defend yourself. Passion, Wattage, Transparency Transparency, patience, kindness

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Acceleration

The main thing is to keepthe main thing, the main thing.

Technology is not the goal! Exceptions – Enabling technology:

Acrobat Outlook Anywhere

Portals Multiple monitors

Blackberries

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Acceleration "Selling tries to get the customer to want what the

company has, marketing on the other hand, tries to get

the company to produce what the customer wants.“

 (Source: Marketing Myopia, Theodore Levitt, Harvard

Business Review, Jul-Aug 1960)

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Acceleration  "… the aim of marketing is to make selling superfluous.

The aim of marketing is to know and understand the

customer so well that the product or service fits him and

sells itself.“

 (Source: Management: Tasks, responsibilities, practices,

Peter Drucker, Heinemann

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Plumbing

Fast, Stable, Secure, Easily AccessibleEasy to manage (homogenous, standard)4 Step implementation modelDocumentationPerspectives:

Tools Data ServersApplications Profiles

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Implementation Model

Research – Will this provide value to the firm? Lab Test – Will this work in our environment? ----------Decision to purchase or adopt---------- Pilot Rollout – How can we best deploy this? Rollout

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Procurement – Where Trust Begins

The PLAN Decisions – consider three levels Know your metrics Vendor management Balance cost cutting with innovation Projects always tied to business strategy This year’s project is next year’s maintenance

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Metrics

Percentage of firm gross income Budget line items and categories as a

percentage of total IT expenditures IT expenditures per FTE Firm revenue per FTE

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Three Level Decisions

Suggested solution: project, hardware,

software, etc, and what it will cost. Inexpensive solution: “Here’s the cost, and

here’s what’s in the suggested solution

that we won’t get.” Expensive solution: “Here’s the cost and

here’s what we would get in addition to the

suggested solution.

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Strategy

There is no such thing as IT strategy! Maintain a historical timeline of milestones Dissect your business’ strategy Every company has a business strategy Ask backwards I’ll get back to you.

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CommunicateWell

(All Directions)

PromoteRespect

AndTrust

WorkEnvironment

EstablishKey Values

In the Culture

RetainOur

People

AttractBest

People

Retain And

ExpandBusiness

PermanentBusiness

Create New And

Innovative Products and

Services

AccelerateGrowth

Innovative Advice and

World-ClassService

New Role of Shareholders

One Firm Concept

EveryoneRealizes

TheirProfessional

andPersonal

Goals

StrategicallyManaged

ClientsEmployeesBusiness CommunityPeers

CareerDevelopment

Core Values People Vision & Mission Strategic Choices Outcome

Support and careFor Community

Client Service

Honesty & Integrity

Teamwork & Interdependence

Clark Nuber is regarded as the best CPA & consulting firm in NW

Private

Not For Profit

Employee Satisfaction

Innovation

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Default Strategic Plan

What if my strategic business plan is simply to grow by five

percent per year and maintain 33% net income before

partner compensation?

Amazed clients Effective

processes

Motivated employees Satisfied owners

Mitigate our Weaknesses

Accelerate our Strengths

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Client Touch Points

Portals Auditor laptops Telephone system Email Web site Fax Paper financial statements and tax returns Electronic Financial Statements and tax returns Proposals, marketing materials

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Team

Cutting edge projects, resume building Training

Who you are, “who” the department is Firm technology profile Industry best practices

Lead by serving. Teammates compete. Always involve HR in conflict

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IT Department Mission Statement

Fast, stable, secure, easily accessible network

Maximize the professional hour

Promote innovation

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IT Commitment to Excellence Professionalism – Honest, dependable, flexible

Communication – Listen closely, present tech. clearly

Teamwork – Build trust, work toward common goals.

Job Knowledge – Maintain skill sets

Task Achievement – High level of productivity & quality

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Leadership

When people ask for your help Email, write, speak Teach, and teach your team to teach Open lunch sessions Recruiting and new employee presentations Arm partners with info they can use

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Education

Manage your time Read less with more comprehension Develop a personal knowledge base Correct mix of technology and executive skills Lifelong goals

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Innovation

Doing the same thing in a better way Using the same amount of funds to do more Shocked colleagues and supervisors Mistakes Innovate - processes, resources, not people Easier to ask for forgiveness than permission

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[Your Name Here], CIO

Whatever creativity is,

it is in part a solution to a problem.

– Brian Aldiss

Make visible what , without you,

might perhaps never have been.

– Robert Bresson