Is it Really Necessary for Professionals to Track Their Time?

I think the real key is to share the RESULTS of the tracking of time (billable and non-billable).

I advise my professional services firm clients to track the following: all new opportunities (new prospective clients as well as additional opportunities for existing clients), the lead generator, the team leader (these are often different, depending upon services required), the origination of the source (the client, the banker, consultant, etc. that referred your firm) and the estimated fee (recurring or non-recurring). When reports like this are shared among the partnership each month, everyone sees who/what is in the pipeline, monitors the timeline of the “sale” and can identify those referral sources (and clients) that should be ranked ”A”. They also can see where people are spending their non-billable time (when the source of origination is a networking or speaking event or membership in a trade organization) and it is a great educational tool to show younger partners “how it’s done”.

Lisa Tierney

How does a firm create a culture of accountability?

Accountability is the Holy Grail of the Accounting Industry!

I hear from so many CPA firms around the country, about the seemingly inability for partners to hold each other accountable. I believe that no one can hold anyone else accountable at all; you can only hold yourself accountable. I have found that the trick to creating a culture of accountability begins with the empowerment of the leaders – so they want to participate in creating the kind of success they deem important and therefore value. It starts with a unique, individual marketing plan that draws on their natural abilities and puts them in an environment that will attract what they perceive to be their ideal client. One they have a plan that showcases their abilities and puts them in a group of people they want to be with, I find that the uphill battle is OVER.

A 20-year CPA partner just told me that she has started to enjoy networking events for the first time in her life. She asked me “What changed?” I reminded her we’d finally put her in the right room. A room in which she felt she belonged, surrounded by people she genuinely liked and respected – and it made all the difference in the world!

Motivating the Middle - discussion recently among members of the Association of Accounting Marketing

I recently read a post on the AAM LinkedIn group that inspired me. It noted how the group in between the "rainmakers" and the "bee-keppers" (my terms, not the author's) needs some attention in CPA firms. I couldn't agree more!

This group of "second-tier leaders" as I call them must be empowered as a means of ensuring the long-term success of the firm. It is unfair to allow this group of professionals to continue to rise through the ranks at their accounting firms, with no real knowledge or training when it comes to leadership, marketing skills, even having a real understanding of the workings of the firm. I’ve seen it time and time again – the 39 year old partner all of a sudden is charged with so much more than he ever realized would be expected of him – and he is unprepared.

Empowering this level of staff to ensure buy-in to growing the business (including education on how this can be achieved) as well as encouragement to allow them to start getting involved is how CPA firms will grow in the next decade, and beyond.

Remembering Ed Koch, beloved former mayor of New York City

Altman Weil recently released their Annual Chief Legal Officer Survey. Dan DiLucchio of Altman Weil had a most telling observation: “As long as the company is sending them work,” says DiLucchio, “the firms assume that that is their evaluation.” Law departments miss out on the opportunity to change the firms’ behavior, says DiLucchio. He’s seen one of two things happen for firms: “Either you die a slow death, where the faucet is slowly turned off. Or you’re just called in one day and told that the company is moving the work elsewhere.”

It reminds me of two things that professional services providers need to do:

1. COMMUNICATE. Regularly check in with your clients to ask them two questions: Am I meeting all of your needs? And Am I aware of all of your needs? (this second question might require some guidance; try asking a few thought-provocative questions)

2. DEMONSTRATE VALUE. Keep them informed about whatever it is you’re working on for them in a way that describes the benefit. Don’t just tell what you’ve done, explain why you did and what it means to them. They don’t know what you’re doing for them on their behalf – they are busy living their lives, running their businesses, etc.

I read an article about the survey results and the author reminded me about Ed Koch, my favorite New York mayor when I was growing up in that area, who always greeted voters and visitors with “How am I doing?” ; the point was that annual client surveys or annual visits by a managing or originating partner just don’t do the trick anymore. Ed Koch was such a great mayor – he cleaned up NYC (which, at the time had become a smelly dump!) and he was a great marketer, coming up with the Big Apple campaign. Writing this post makes me want to plan another trip to New York City – soon!