The WhIP Journal
May 2004 Power Your Practice – THE WhIP JOURNAL [What Helps In Practice]
This is an Opt-In No-Fee monthly ezine/newsletter from Debra Dowdell. You are receiving this because you have subscribed to it. As always you may easily unsubscribe or update your email address, using the link at the bottom.
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To view this on my website please go to: http://www.poweryourpractice.com/pages/15/index.htm
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In This Issue:
10 KEY ISSUES TO A POWER-FULL PRACTICE-Strategic Practice Management
STRATEGIC CIRCLE – Join a Circle beginning in June
THAT IS SUCH A GOOD THOUGHT…
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10 KEY ISSUES TO A POWER-FULL PRACTICE
Strategic Practice Management
(Note: I’ve been very good by writing only short newsletter/ezines during busy March and April.
Now that it’s May, grab a coffee and take a few extra minutes to really read this through. These are important issues and worth reviewing carefully. These issues are important for a sole-practitioner or a larger firm. Please read the information after the article regarding the beginning of a Strategic Circle in June for practitioners who are committed to Strategic Practice Management.)
Strategic Practice Management is an issue for EVERY firm to look at seriously, no matter what size or structure. Sole-practitioners and larger firms must address practice management issues if they are to survive and thrive. The follow 10 key issues should be the things you focus on, invest in, think about often, address at staff meetings, study from your colleagues and associates, and consult with a business coach J (that’s me – a shameless plug).
These 10 key issues are THE ISSUES that determine your financial success, your ability to impact your client’s success, your stress levels, your Work-Life Balance, your retirement strategies, etc. Each issue is critical and the order of importance may vary from firm to firm:
2] Your People: Today’s successful firm will have a variety of ‘people’ working for them and representing them. You may have full-time staff, part-time or seasonal, outsourcing, or independent consultants. You may have partners, managers, administrative staff, tax, general accounting, technicians or students. You may have specialists or generalists. One person wearing many hats, or many people each wearing one hat.
The issues surrounding attracting and retaining the very best and the most suitable professionals are huge and few firms, if any, will remain unscathed from this area of business. You must become the firm that talented, dedicated professionals are looking for (all of these 10 Keys are what talented, dedicated professionals are looking for). You must hire not only those who are best qualified in terms of their skill, education, and experience, you must also hire the most suitable for your specific firm. Will they fit in with and love the firm environment you offer? EVERY firm is different (take it from me). You should be utilizing modern methods and hiring on the basis of feedback provided by assessment tools. These tools can save you many (many) thousands of dollars $ in creating better hiring decisions. Once hired, it is critical to have a training process that helps orientate the new hire to ensure early adoption of the firm standards and processes. To address all of the ‘people’ issues in a paragraph or two is not possible. So please pay careful attention to all the ‘people’ issues your firm will encounter and seek consulting when required.
3] Productivity = Revenue: Of course, productivity is directly related to revenue and what better time to review this critical area than at the end of May? As I have mentioned before, I believe the month of May is THE most unproductive month in the accounting profession. Productivity is not just an issue for May, but continues for most of the year. Do you know what your productivity levels are? Truly? I’ve seen benchmarks using numbers as low as 1600 hours and as high as 2100 hours (with some partners going up to 3000) per FTE (Full Time Employee). There is also a growing focus on providing value added services at rates equal to the value received instead of on an hourly rate. These kinds of services can add generous revenue to a firm. Value-added services can nicely compliment standard ‘bread and butter’ engagements, while also providing value to clients and professional challenge to staff.
"Procrastination is the thief of time." ~Edward Young
4] Technology: What is your Technology Budget this year? And next year? You do have a Technology Budget, right? This is a critical issue that holds back more firms than you may realize! You absolutely MUST keep up-to-date on hardware, software, programs, document management, productivity and processes. In your strategy plan, addressing the Technology Budget and issues should be a high priority for short and long term planning. This is often an area where a practitioner may not feel well qualified. I urge you to consult with a professional suitable for your area of need. Not only will your clients benefit from your progressive stance, but you will also attract and retain staff who are pleased to be with a leading-edge professional firm, small or large.
5] Training and Education: Providing training and professional education is another critical area to address. One of the important aspects of attracting and retaining the best talent available is setting high standards and providing the training and development to maintain those standards. Your clients will also be able to benefit from well trained staff and productivity will increase. Often when a firm considers new technology, it’s the training element that holds them back. There must be a conscious decision (from staff AND partners) to embrace new technology and training as a benefit for all.
6] The Client: Your clients are the reason for opening the office door every morning. Are you providing the best service possible? Do you ask your clients what business issues keep them awake at night? Do you help your clients with a ‘whole business’ approach? Are you nurturing your client relationships and maximizing the benefits offered to your clients that include areas of information not exclusively financial? Do you know how pleased your clients are, what service they appreciate the most, how many complaints you’ve dealt with this year, what the complaints were about? Managing your client relationships is critical to everything you do.
7] Process, Standards and Policies: At the end of every day most of your intellectual assets walk out the door. How do you ensure that you have that knowledge available for the firm if they didn’t come back? Is there a program you use to ensure standards, policies, and processes throughout the firm? Without the use of a ‘program’ that ensures standards, policies and processes the firm will have unnecessary and repeated training costs, inconsistent quality of work, low productivity, and many other low producing results.
8] Marketing: Marketing is no longer a ‘dirty’ word in the public practice accounting world, however, it is still a very difficult area for many accountants. Marketing takes on many different formats and it’s important to recognize them and determine the value each offers. Where is your time, money and focus spent and how should you plan for the future? One of the greatest areas of marketing, is simply to better utilize your existing client relationships. The time and effort you’ve spent in providing service and relationship building is a great marketing tool. There are, of course, many other ways to market effectively and it may be wise to look outside the firm resources.
9] Document Management: I address Document Management as a separate issue from other Technology and Process issues because it has such an impact on your practice management. Many firms have begun to at least survey what is available in Document Management tools, and some firms have already implemented solutions. This area of management addresses almost all of the 10 Key issues of Strategic Practice Management. It’s a win-win for everyone to become a less-papered office with archival solutions. Don’t delay on this!
10] Inspire: Now there’s a term you don’t find too often in an accounting firm. Are you and your staff ‘inspired’ professionals? Have you eliminated ‘fear’ from your firm? Many firms cultivate an atmosphere of fear with their staff (sometimes unknowingly and sometimes not…). Are you making your small place in the world a better place? Is your office a place of truth, values, new ideas, questions, respect, and integrity? The practitioner who understands what it is to inspire is aware that their work, their workplace, and their client interactions are a place where relationships are built and people are touched in their daily activities in a fresh, positive way. New ideas and important questions grow in the fertile soil of an inspired environment.
STRATEGIC CIRCLE [Committed to Inspired Results by Coaching Leadership Excellence]
I will begin a STRATEGIC CIRCLE on Jun 22. For the practitioner who is serious about Strategic Practice Management join a Circle that will focus on the 10 keys of Strategic Practice Management in much greater detail and so much more. We will design a customized Strategic Practice Management Plan for your firm, and address the key areas and make them work measurably better in your own firm. You will gain much greater control over your business. You will learn to coach and mentor each other, as well as staff and clients. We will inspire each other and ourselves.
We will form a small group (space is limited) and meet with our group for an intensive 3 hour workshop in June, September, and January 2005. The other nine months we will participate in a 90minute TeleConference and 1 individual follow up call. This is a 1 year commitment. This Circle will be closed to new members after June 9th. If you are committed and determined to build a Power-Full Practice based on Strategic Practice Management, please go to my website for pricing and to register prior to the June 9th deadline. http://www.poweryourpractice.com/pages/17/index.htm
“THAT IS SUCH A GOOD THOUGHT”,
Thoughts worth reading, thinking, repeating and embracing.
"Resolve to be a master of change rather than a victim of change."
~Brian Tracy
I hope you’ve found value in this month’s copy of THE WhIP JOURNAL.
My best regards to you,
Debra Dowdell
Power Your Practice
For more information, or to share your firm’s story please contact:
This is an Opt-in No-Fee monthly ezine/newsletter from Debra Dowdell. You are receiving this because you have subscribed to it. You may unsubscribe or change your information at any time at Details@PowerYourPractice.com. Your information will never be given away, sold, or rented. Ever. Thank you.
Power Your Practice© 2007
Power Your Practice does not warrant or guarantee the accuracy of any statement or other information and materials provided in this newsletter. All articles and other information and materials in this newsletter are provided for general information purposes only.