More praise for Leading an Accounting Firm: “A great hands-on book for current and future professional services firm leaders Troy Waugh shares with his readers a wealth of information and knowledge about authentic leadership through interviews with more than 40 professional service firm leaders.” —August Aquila, CEO, AQUILA Global Advisors, LLC “Finally, there is a book on leadership that can apply to an accounting firm We will include this great book in our leadership curriculum.” —William R Hagaman, Jr., CPA, Managing Partner and CEO, WithumSmith+ Brown, PC “It is no longer enough to be just a producer in a CPA firm In order to be effective, you must also learn to lead Troy has put together some excellent insights into what that means, beginning with self-leadership and continuing with staff, strategy, systems, and synergy We all need to be thinking about the future and making ourselves better every day This book provides a roadmap to exactly that Great job, Troy!” —Lewis O Hall, CPA/ABV, CBA, Managing Principal, Keiter Stephens “Our firm has consulted with Troy and The Rainmaker Consulting Group ever since I became managing partner of our firm over ten years ago Troy’s knowledge has resulted in the development of many of our leaders and future leaders throughout the firm This book captures many of those same concepts and will be a resource for all of us who are involved in firm leadership.” —Domenic E Pellillo, CPA, Managing Partner, Brown, Edwards & Company, LLP “Being able to inspire, influence, and create a thriving firm culture is a true leader’s role Troy’s book touches on all aspects of becoming such a leader It’s a great read!” —Ned F Sheffield, CPA, Managing Partner, Jackson Thornton “Troy’s obvious knowledge of the accounting profession, combined with the input from seasoned leaders, makes this book a must read for anyone looking to enhance performance It really drives home the vast difference between leadership and management I have long been a believer that running an accounting firm is like coaching a team and the ‘Pyramid of Success’ is right on point.” —James A Sikich, CPA, CEO, Sikich, LLP “The perspective and insight brought to light through Troy’s skillful interpretation of invaluable case studies from some great leaders makes Leading an Accounting Firm a seminal work that will serve as a guiding light to firm leaders for years to come Thank you Troy, for this great contribution to our profession.” —Rick Solomon, CPA, CEO, RAN ONE Americas www.ebook3000.com LAF_2011_book_reprint.indb 2/8/2013 10:41:44 AM THe P Y ramid of S uccess Leading an Accounting Firm 11403-359 Troy Waugh, CPA, MBA Notice to Readers Leading an Accounting Firm:The Pyramid of Success does not represent an official position of the American Institute of Certified Public Accountants, and it is distributed with the understanding that the author and publisher are not rendering legal, accounting, or other professional services in the publication If legal advice or other expert assistance is required, the services of a competent professional should be sought Copyright © 2012–2013 by American Institute of Certified Public Accountants, Inc New York, NY 10036-8775 All rights reserved For information about the procedure for requesting permission to make copies of any part of this work, please email copyright@aicpa.org with your request Otherwise, requests should be written and mailed to the Permissions Department, AICPA, 220 Leigh Farm Road, Durham, NC 27707-8110 Copyright to Appendix E: RAINMAKER ACADEMY Revenue Action Plan/Results Report is held by the author, Troy Waugh All rights are reserved and our use is with the author’s permission     PIP     ISBN: 978-0-87051-997-0 Publisher: Amy M Plent Acquisitions Editor: Erin Valentine Associate Developmental Editor: Whitney Woody Project Manager: Amy Sykes Cover Design Direction: Greg Duell Compositor: Jason Reese www.ebook3000.com LAF2011_front-matter.indd 2/11/2013 10:11:53 AM Contents Foreword .ix Preface xi Acknowledgments xv About the Author xvii Chapter 1—Why Leadership Matters Leading the Brightest of the Bright .2 Leading the Organization The Leader’s Role—Influencing Mission,Vision, and Values .6 Losing Focus A Sad Tale (Tail!) Leading Versus Managing You Need Both New Skills Are Leaders Born or Are They Built? 10 Types of Leaders 11 Effective Leaders Must Be Humble 12 Challenges of Leadership 13 The Measure of a Leader 14 Conclusion .18 Section 1—Leading Self 19 Chapter 2—Self-Knowledge: The Inner Accelerator 25 Your Leadership Style .26 The Value of Self-Knowledge 28 Characteristics of Good Leaders 29 The Crisis of Success 32 Building Leadership Ability for Better Effectiveness 33 Commit to the Process 34 Opening Up for Growth 34 Build on Strengths or Improve Your Weaknesses? 36 Experience Matters 37 Building Self-Knowledge 39 Self-Knowledge Through Interaction With Others 39 The Undeniable Link: Lifelong SelfLearning and Leadership 40 Self-Knowledge for a Fulfilled Life 41 Conclusion .42 Chapter 3—Trust: The Leadership Imperative 43 Trust Is a Competitive Advantage Inside and Out 45 Dimensions of Trustworthiness 48 Consulting Experiences .49 Delegation 49 A Healthy Meeting Among Toxic Ones 49 Integrity 50 Group Dynamics .50 Intent 50 Invested in Trust 50 Rebuilding Trust Takes Time 50 Lessons From Consulting Experiences 50 Levels of Trust Development 51 Building Trust 54 Building Organizational Trust 55 When Trust Is Broken .58 Rebuilding Trust 58 Conclusion .62 Chapter 4—Critical Thinking: Creating Your Future 63 What Is Critical Thinking? 65 Thinking Standards 66 Critical Thinking Applied: Phil Holthouse .68 Depth and Breadth 68 Logic 69 Significance .69 Fairness .69 Applying Critical Thinking .70 Myths About Thinking 71 iii LAF_2011_book_reprint.indb 2/8/2013 10:41:44 AM Leading an Accounting Firm Learning to Think Critically—Like a Leader 72 Purpose .72 Question 73 Information .73 Concepts 74 Inference 75 Assumption .75 Point of View .75 Implications .76 Relationship of the Elements 76 Conclusion .77 Chapter 5—Preparation: Ready for Seizing Opportunity 79 Preparation, Preparation, Preparation 82 Developing Your Leadership Skills .84 Laying the Groundwork by Seeking Input From Others 84 Preparing to Lead Strategic Initiatives 85 Step 1—Prepare a HighResolution Picture of the End Game .86 Step 2—Clarify Each Staff Member’s Role 88 Step 3—Assessing Potential Opportunities 88 Step 4—Understanding Possible Threats 88 Step 5—Gather and Review Relevant Research 89 Step 6—Budgeting Time, People, and Money 89 Step 7—Develop the Initiative Game Plan .90 Step 8—Launch the Initiative With Overwhelming Power 90 Preparation Is for Action 91 Getting Started 92 Conclusion .93 Chapter 6—Self-Discipline: Be the Master, Not the Victim 97 Leadership Demands Sacrifice 99 Self-Discipline Makes You the Best You Can Be 101 Your Inner Circle Values 102 Delay of Gratification 102 Five Qualities of Self-Discipline 103 Self-Knowledge .103 Strong Relationships 104 Commitment 105 Living Your Values 105 Self-Coaching 106 What Are We Leading Toward? 108 Focused Growth Is a Priority 109 Using Self-Discipline to Focus .110 Building Habits of SelfDiscipline 111 Invest Five Minutes Each Morning to Meditate on the Major Areas of Your Life 112 Make Self-Discipline a Part of Your Daily Ritual 112 Dedicate Yourself to Lifelong Learning 113 Accept Responsibility 113 Face Your Fear to Develop Courage .113 The Truth About Self-Discipline .114 Conclusion .114 Section 2—Leading Staff 115 Chapter 7—Teaching, Coaching, and Mentoring: Multiplying Your Leadership 121 Developing Skills Over a Career 123 Training Begins One on One 125 Teaching 126 Training Programs Demonstrate Your Commitment to People 126 A Plan for Adult Learners 127 Creating Purposeful Training 130 Coaching 133 iv www.ebook3000.com LAF_2011_book_reprint.indb 2/8/2013 10:41:45 AM Contents Working One-on-One Raises Your Commitment and Retention 133 On-the-Job Training Helps Coaches and Mentors 134 The Leap From Coaching to Mentoring 136 Great Leaders Mentor .137 Mentoring: Benefits for the Firm 139 Conclusion: The Impact of Training 143 Chapter 8—Accountability: Trust but Verify 145 Why Is Accountability So Important in Business? 146 Accountability Is the Opposite of Permissiveness .148 Increasing Accountability 148 Measuring Accountability 151 How Does Individual Responsibility Factor Into a Group Setting? 152 What Should Partners Know About Performance Measurement? 153 Positive Results of Performance Measurement .154 Implementing Accountability for Positive Results 154 Accountability Through Measurement: Scorecards and Performance Pay 155 Ways to Establish Staff Member Accountability .156 Establish Accountability Through Communication—Set Expectations and Reinforce Success 157 Accountability Through Measurement .158 An Introduction to Measuring Performance 158 After Measuring, Now What? 161 Setting Goals 161 Frequent Feedback 161 Coaching 162 Performance Scorecard 163 Performance Pay .165 Keeping a Well-Rounded Perspective 165 Conclusion .166 Chapter 9—Challenging Personal Growth: Leading the Whole Person 167 A Path to a Better Person 169 Personal Growth, Firm Growth .170 Growing Pains 170 Intentional Success 173 Barriers to Personal Growth 174 Dealing With Change 176 Overcoming Barriers 177 Rule 1: Believe in the Meaning of Your Work 177 Rule 2: Communicate Regularly and Honestly With Team Members 178 Rule 3: Leaders Must Always Be Moving Toward the Larger Goals 178 Rule 4: Recognize Your Team Members 178 Finding Balance 179 Tips for Achieving Personal Growth .180 Conclusion .183 Chapter 10—Empowerment: The Secret to Exponential Growth .185 What Is Empowerment Really? .186 Keys to Effective Empowerment .187 Existing Leadership Philosophies .190 Mistakes: Both Risky and Rewarding 190 Empowering Members of a Team 191 Principles of Empowerment 192 v LAF_2011_book_reprint.indb 2/8/2013 10:41:45 AM Leading an Accounting Firm Develop a Rational Shared Vision 192 Provide Training and Information for Good Decisions .193 Raise the Level of Conflict .193 Allocate Proper Resources 193 Reward Staff Members for Empowered Behavior 194 Trust People .194 Working With Teams .196 Shared Mission 198 Mutual Respect and Trust 198 Frequent Substantive Communication 198 Shared Processes 198 Different Talents .198 Adaptability and Flexibility 198 Continuous Improvement 198 Building Highly Empowered Teams and Firms 199 The Seven Elements of Empowerment for Teams .199 Communication .200 Conflict Engagement 200 Contribution 201 Connections .201 Cooperation .202 Change Initiators 203 Commitment 203 Conclusion .203 Section 3—Leading Strategy 205 Vision (Chapter 11) 206 Mission (Chapter 13) 207 Values (Chapter 12) 207 Next Steps: Goals and Objectives 209 Goals .209 Objectives 210 The Role of Strategies and Initiatives .210 Example Plan 211 Vision 211 Mission 211 Strategy 211 Goal 211 Objective 211 Action Plan .211 Chapter 11—Vision: Reality in the Future 213 Vision: What It Is and Why You Need One 214 Making the Vision Real for Your Staff Members .217 Our Vision Shapes Our Future 219 The First Vision .219 The Value of a Vision .220 Building Your Vision 223 Get a Mental Start 223 Developing a Vision Statement 224 Things to Keep in Mind as You Begin 224 Bake In the Buy-In 225 Communicating Your Vision 227 Don’t Limit Your Vision 227 Common Stumbling Blocks 228 Strategies for Success .230 Conclusion .231 Chapter 12—Values: The Character, Actions, and Outcomes 233 The Purpose of Core Values 235 Core Values as Standards or Aspirations 236 Core Values Are Worthless Unless They Govern .237 Finding Your Values 238 The Elements of Core Values 241 Our Principles of Service and Communication 241 Go Deep 241 Be Responsible 242 Understand First 242 Deliver Excellence 242 Never Assume 242 Make Their Day .242 vi www.ebook3000.com LAF_2011_book_reprint.indb 2/8/2013 10:41:45 AM Contents Invest in Myself .242 Are Strong Values Realistic? .243 Leading by Example 244 Core Values Help Frame Our Behavior 245 Sustaining Core Values .245 Conclusion .247 Chapter 13—Mission: Making a Difference 249 The Benefits of a Mission 252 Clarifying Your Mission 254 What Do We Do? .254 How Do We Do It? 254 For Whom Do We Do It? 255 More Than One Mission? Maybe So 255 Six Steps to Developing a Mission Statement 256 Exercise 13-1: Client Statement 257 Exercise 13-2: Problem Statement .258 Exercise 13-3: Statement of Purpose 259 Exercise 13-4: Business Statement .260 Exercise 13-5:Value Statement 261 Exercise 13-6: Writing a Mission Statement 262 Problems to Keep in Mind 263 Developing a Personal Mission Statement 265 Exercise 13-7: Personal Mission Statement .265 Sample Personal Mission Statement Development .266 Past Successes 266 Core Values .266 Identify Contributions 266 Identify Goals 266 Mission Statement 266 Final Thoughts 267 Conclusion .268 Section 4—Leading Systems 269 Chapter 14—Managing Processes for Your Future Firm 273 Setting up Business Processes 274 Advantages to Structured Procedures 277 More Consistent Results 277 Measurable Outcomes .277 Training for Team Members Improves 278 Benefits of Creating the Process 278 Establish Standards, Policies, and Procedures 278 Improve the Consistency of the Client Experience .279 Standardizing Work-Flow Management .279 Process Should Follow Strategy .280 Manage to a Written Strategic Plan 281 Management for the Future .282 The Balanced Scorecard Framework 283 Selecting the Right KPIs 284 Standardizing KPIs 285 Business Process Management Overview 286 BPM Activities 287 Design .287 Modeling 287 Execution 288 Measuring .288 Optimization 288 Issues to Look Out For 289 Conclusion .289 Chapter 15—Building the Future Firm Continuously .291 Commit to Continuous Improvement .293 Critical Success Factors for Change and Growth 295 vii LAF_2011_book_reprint.indb 2/8/2013 10:41:45 AM Leading an Accounting Firm Building a System to Manage Change and Improve Processes 296 Six Sigma 297 Lean Processes 298 Kaizen 299 Flowcharts for Seeing and Improving Processes .302 The Benefits of Continuous Improvement .304 Conclusion .305 Section 5—Leading Synergy 307 Strategic Alignment 308 Objectives Alignment 308 Internal Alignment 308 Chapter 16—Synergy and Alignment: One Plus One Equals Three .313 Building a Shared Purpose 315 Leadership in Tough Times 317 Crisis: Realities and Constructions 319 Understanding 321 Decision Making and Coordinating .321 Terminating .322 Accounting 322 Learning 322 Teamwork .323 Leading Teams for Synergy 324 Team Development 325 Forming 325 Storming 327 Norming 327 Performing 328 Conclusion .328 Chapter 17—Sustaining Leadership: The Ultimate Succession Plan 331 Developing Your Leaders From Within 335 Approaches to Succession Planning 336 Top Down .337 Bottom Up 338 Futuring 339 Targeting Approach 340 Succession Planning Versus the Traditional Replacement Method .342 Potential Labor Crisis 343 Challenges of Implementation 343 Why Succession Plans Fail .344 Your Leadership Development Program 345 Overall Approach 345 Define the Leadership Competencies for Each Level 346 Assess Potential Candidates 347 Measure Leadership Styles 347 Refer to Your Developmental Process 347 Build the Next Generation of Leaders 348 Prepare a Nomination and Application Process for the Program .349 Selecting Partner Leaders 351 Rename Your Next CEO as the Leading Partner 351 Choosing the Lead Partner 352 More of Choosing a Leader .354 Can a Leader Serve Clients? 356 Conclusion .356 Appendix A: .357 Appendix B: .359 Appendix C: .363 Appendix D: 367 Appendix E: .369 Appendix F: .377 viii www.ebook3000.com LAF_2011_book_reprint.indb 2/8/2013 10:41:45 AM Foreword Great leadership is an essential ingredient to the success of any CPA firm.The best leaders know that embracing change and taking calculated risks are what move a firm forward Moreover, although the course for the firm is set at the top, it takes a talented staff to take the firm on that path I truly believe that these are the essential ingredients for progress.Throughout my tenure as president and CEO of the AICPA, the AICPA has focused on building leaders in our profession.We launched several programs that develop young CPAs, current AICPA committee members and seasoned professionals, and our staff No thriving business just lets change happen to it; you have to shape your future, and you need strong leaders to that This book is part of our ongoing effort to support your leadership development It is intended to provide you with an intelligent framework for developing your own leadership style, as well as the leadership skills of those around you After all, many clients look to you— their most trusted business adviser—for direction and expertise Author Troy Waugh has made the secret to strong leadership understandable and achievable Using the model of the pyramid to illustrate his concept, he builds a case for ongoing leadership development, guiding you through the essential ideas and practices that are at the core of great leadership and great firms—each idea building upon the next Using this powerful framework, you can improve your personal leadership and build solid leaders around you I encourage you to explore Troy’s own leadership experiences acquired throughout an impressive career as a CPA in public practice and at several companies.You’ll learn about his specific development, as well as other approaches to leadership discovered by some of the profession’s top leaders in public accounting Not surprisingly, most well-led firms share the same crucial leadership tenants For readers who are starting their accounting careers, my advice is for you to apply the elements of this book throughout your professional life Readers who are advancing in the ranks of a public accounting firm will find that this book will guide you beyond the mastery of technical skills to become a leader in your firm and community Our profession has been on the leading edge of American business for 125 years.Today and the decades that follow will challenge all organizations and professions.The quality of America’s CPAs, their professional commitment, their ethics, their passion, and their dedication to leadership at all levels will ensure our profession’s success for decades to come Sincerely— Barry C Melancon, CPA President and CEO American Institute of Certified Public Accountants ix LAF_2011_book_reprint.indb 2/8/2013 10:41:45 AM Leading an Accounting Firm Clients are not completing their work Why? Clients not understand our expectations Why? Engagement letters are vaguely worded Employees have not clarified expectations when the situation occurs Why? Employees are not allowed to call clients Partners have asked employees to complete work and get it out the door Clients not know how to properly complete their work Why? Clients not have trained staff members Why? Clients cannot afford a full time-staff member Information is not provided to clients Clients not have time to complete their work Why? Clients not have staff members to complete the work Why? Clients cannot afford full time-staff members The deadlines for information not work well with the clients’ peak business periods Clients not want to complete the work Why? Clients have better things to with their time Clients have no interest in the work they are being asked to perform Why? Clients feel that the work is “accountants work.” Clients are submitting work in a sloppy form Why? Clients not know how to organize the work Why? Clients have not been provided a list, format, or instructions for compiling work Clients are not organized, by nature Employees are taking too long to complete the work Why? Employees are not adequately trained in the accounting principles or on the computer system Why? Training is not provided to new employees Employees are not mentored Staffing selections have been poor Why? Limited pool of candidates Why? Benefits and wages are substandard Low unemployment rate Lack of structured interview and reference-checking process 360 www.ebook3000.com LAF_2011_book_reprint.indb 360 2/8/2013 10:42:07 AM Appendix B: Four Whys From the bold list, the most likely root causes are selected and solutions brainstormed and implemented It is apparent that this approach is more likely to yield lasting results than the typical solution for remedying engagements that are completed with many hours over budget—applying pressure to everyone to be more efficient 361 LAF_2011_book_reprint.indb 361 2/8/2013 10:42:07 AM Appendix C: Flowchart In chapter 15, “Building the Future Firm Continuously,” I recommend various tools to help display a process or systems graphically One of the most helpful is the flowchart It provides a picture with many details and should be used to illustrate an existing process and how you might want it to be altered for the future Definitions Flowchart A picture of a process It illustrates the following details of a process: ▲▲ The individual steps ▲▲ The sequence of steps ▲▲ The relationship between steps Standard flowchart Steps arranged one after another until the end.This is the most common flowchart It works well with very simple processes See the sample that follows this section Functional flowchart Steps arranged by sequence and step owner.This flowchart is useful when many groups are involved in a process It provides a good overview of what is happening, who is doing it, and the complexity of the process See the sample that follows this section Flowcharting Steps Decide on the process to be flowcharted Decide where the process begins and ends Brainstorm a list of all the steps within the process Arrange the steps in the proper order Connect the steps with arrows Helpful Tips Flowcharting can be more difficult than is necessary As you are building your skills in this area, it will help to keep the following tips in mind: Always make sure that you have agreement on the beginning input and ending output of the process Decide this first, and put those points up on the flipchart Often, problems are discovered immediately because nobody is clear about the process boundaries Leading an Accounting Firm: The Pyramid of Success, First Edition Troy Waugh © 2012–2013 American Institute of Certified Public Accountants, Inc Published 2012–2013 by John Wiley & Sons, Inc www.ebook3000.com LAF_2011_book_reprint.indb 363 2/8/2013 10:42:07 AM Leading an Accounting Firm Use the conventional flowcharting symbols These include ovals for inputs and outputs, rectangles for an action step, diamonds for decisions, “Ds” for delays, and circles as connectors Using standard symbols will help others more easily understand your flowchart Use Post-it notes for creating the chart As you build your flowcharts, you will miss steps or decide that steps should be reordered If you write them on the page, you have to a lot of erasing as you make changes Using Post-it notes allows you to easily make changes as you discuss your flowchart in your group Make the chart only as detailed as it needs to be Inexperienced flow charters often make the mistake of getting into too much detail The chart quickly becomes huge, confusing, and unmanageable The trick is to keep it simple Each decision point makes the chart much more complex Before putting a decision point into the flow, ask yourself whether a decision is normally made at this point Often, you are dealing with a rare exception These can be dealt with later after you’ve created the whole chart When you first begin building your chart, try to get all the way through to the end before going back and dealing with exceptions and decisions In other words, if you put a decision step into your flow, follow the “Yes” path until you get to the end Create separate flowcharts if the process is too large and complex Flowcharts almost always represent a series of steps that, in themselves, are also processes For example, you could say the process for getting ready in the morning is to (1) get out of bed, (2) shower, (3) brush your teeth and hair, (4) get dressed, and (5) eat breakfast Step could easily be broken down into another 10 steps If you have a need to break a step into that kind of detail, create a separate flowchart 364 LAF_2011_book_reprint.indb 364 2/8/2013 10:42:07 AM Appendix C: Flowchart Flowchart Symbols Input/Output Action Step Decision Step Connector Delay Flowchart Types Standard Flowchart—Buying a Car Enter Dealership Look at Floor Models Model of Interest? Yes Test Drive Car A No Leave Dealership No A Want to Buy? Yes Haggle With Salesperson Wait for Salesman Approval Approved? Yes Arrange Financing No Drive Away in New Car 365 www.ebook3000.com LAF_2011_book_reprint.indb 365 2/8/2013 10:42:07 AM Leading an Accounting Firm Functional Flowchart - Buying a Car Sales Client Financing Salesperson Manager Enter Dealership Look at Floor Models Model of Interest? A No Leave Dealership Yes Approach Salesperson Want to Buy? Test Drive Car With Client No A No Yes Haggle With Salesperson Bring Offer to Sales Manager Approved? Arrange Financing with Client Yes No Drive Away in New Car Yes Approved? Did You Know? Approximately 30 percent to 50 percent of the cost in service organizations is caused by costs related to slow speed or performing rework to satisfy client needs 366 LAF_2011_book_reprint.indb 366 2/8/2013 10:42:08 AM Appendix D: Eight Continuous Process Improvement Phases In chapter 15, “Building the Future Firm Continuously,” I discuss many methods of improvement in the systems of your firms.The following table lists the eight continuous process improvement (CPI) phases and discusses their benefits and effects on any change program Table 1: CPI phases and their benefits to a successful change program CPI Phases Benefits Effect on the Change Program Define Business Drivers Identifies business drivers and reason(s) for change early in the program Identifies program champions and develops the foundation for organizational buy-in Design and Align Strategies Aligns change program goals with the organization’s business strategy Ensures early alignment of the CPI initiative with the existing organizational strategy and capabilities Develop Vision Identifies the key business drivers, organizational goals, and performance measures Reduces the risk of initiating change programs without clearly defined performance measures Current State Understanding Provides a clear picture of the existing processes and identifies potential areas for improvement Identifies the root causes and reasons behind process bottlenecks early and the key features of future state processes Future State Design Defines a clear future picture of the renewed processes and identifies the required organizational assets needed to enable continuous improvement Confirms the business case and develops the foundation for developing the implementation road map Road Map Development Defines in detail the future state implementation road map, such as critical milestones and early wins Reduces program management risks and identifies the required steps to accomplish key milestones Execution Delivers the early and ongoing Delivers business objectives and benefits of the change program secures organizational buy-in Continuing Improvement Initiates the required processes Institutionalizes the steps and to improve, monitor, and con- procedures needed to continutrol the new and renewed pro- ously improve renewed processes cesses on a continuous basis Leading an Accounting Firm: The Pyramid of Success, First Edition Troy Waugh © 2012–2013 American Institute of Certified Public Accountants, Inc Published 2012–2013 by John Wiley & Sons, Inc www.ebook3000.com LAF_2011_book_reprint.indb 367 2/8/2013 10:42:08 AM Appendix E:1 RAINMAKER ACADEMY Revenue Action Plan/ Results Report PARTICIPANT’S NAME MARKETING PERIOD PERSONAL OBJECTIVES/RESULTS $ Goal New Revenue from CLIENTS (Top 21 and Farm Club) - $ Sold $ - New Revenue from PROSPECTS (Top 21 and Farm Club) - $ - New Revenue from REFERRALS (Top 21 and Farm Club) - $ - Review Marketing Plan with “Managing Partner” Teach Material to Firm Team Must Complete Goals/Actuals for Activity Report © Troy Waugh, 2012 All rights reserved Used with permission Leading an Accounting Firm: The Pyramid of Success, First Edition Troy Waugh © 2012–2013 American Institute of Certified Public Accountants, Inc Published 2012–2013 by John Wiley & Sons, Inc LAF_2011_book_reprint.indb 369 2/8/2013 10:42:08 AM TOP 21 LAF_2011_book_reprint.indb 370 Company Top PROSPECTIVE CLIENTS Company Top CLIENTS Contact Contact Next Call Date Next Call Date Marketing Objective Marketing Objective - $ - $ Est Fee $ $ Est Fee % Prob % Prob - $ $ $ $ $ - $ $ $ $ $ - - $ $ - $ $ Adj Est - - $ $ - $ $ Adj Est $ $ - $ Sold - $ Sold Referred by Referred by A prospect should be listed in the Top 21 from whom you will make a sales call and have a good probability (better than 50%) of making a sale within the next reporting period Leading an Accounting Firm 370 www.ebook3000.com 2/8/2013 10:42:08 AM Company Top REFERRAL SOURCES Contact Next Call Date Marketing Objective LAF_2011_book_reprint.indb 371 $ - $ Est Fee % Prob - $ $ $ $ $ - - $ $ - $ $ Adj Est $ - $ Sold Referred by Appendix E: RAINMAKER ACADEMY Revenue Action Plan/Results Report 371 2/8/2013 10:42:08 AM FARM CLUB LAF_2011_book_reprint.indb 372 Company Farm Club PROSPECTIVE CLIENTS Company Farm Club CLIENTS Contact Contact Next Call Date Next Call Date Marketing Objective Marketing Objective - $ - $ Est Fee $ $ Est Fee % Prob % Prob - $ $ $ $ $ - - $ $ - $ $ Adj Est - - $ $ - - $ $ - $ - - $ $ - $ $ Adj Est $ $ - $ Sold - $ Sold Referred by Referred by A prospect should be listed in the Farm Club if they don’t fit in the Top 21, you will make a sales call on them within the next 12 months, and believe you have a 20% or better chance of making a sale Leading an Accounting Firm 372 www.ebook3000.com 2/8/2013 10:42:08 AM LAF_2011_book_reprint.indb 373 Advertising/Press Releases Planned Marketing Activities Company Farm Club REFERRAL SOURCES Next Call Date Marketing Objective $ - $ Est Fee % Prob - $ $ $ $ $ Media Possible Business Follow up Step - - $ $ - $ $ Adj Est MARKETING ACTIVITIES TO SUPPORT TARGET SELLING Contact $ Est Date - $ Sold Act Date Referred by Appendix E: RAINMAKER ACADEMY Revenue Action Plan/Results Report 373 2/8/2013 10:42:08 AM LAF_2011_book_reprint.indb 374 # Clients/ Prospects Involved Target Audience Newsletter Programs/ Direct Mail Campaigns Active Organizations Media/Group Write Articles/Presentations Possible Business Possible Business Possible Business Follow up Step Follow up Step Follow up Step Est Date Est Date Est Date Act Date Act Date Act Date Leading an Accounting Firm 374 www.ebook3000.com 2/8/2013 10:42:08 AM (Over and Above Those Listed in the Plan Above) Additional Personal Contacts Made Date Type of Contact Comments Follow up Step Appendix E: RAINMAKER ACADEMY Revenue Action Plan/Results Report 375 LAF_2011_book_reprint.indb 375 2/8/2013 10:42:08 AM Appendix F: Business Process Improvement Resources Chapter 15, “Building the Firm Continuously,” discusses building the future firm, and many resources are available for further study on this subject, some of which are as follows: Dustin Hostetler, Lean CPA, LLC, a division of Rea & Associates, Inc This firm specializes in providing continuous improvement services to CPA firms and, to my knowledge, is the only one of its kind www.asq.org The official website for the American Society for Quality www.6sigmastudy.com Articles, presentations, news, events, and training opportunities about Six Sigma studies www.productivitypress.com An array of Lean Six Sigma publications, many translated from Japanese, including the Lean Insider blog The Lean Six Sigma Pocket Toolbook: A Quick Reference Guide to 100 Tools for Improving Quality and Speed Michael L George, John Maxey, David Rowlands, and Michael George New York: McGraw-Hill, 2005 The Six Sigma Handbook:The Complete Guide for Green Belts, Black Belts, and Managers at All Levels (revised and expanded edition) Thomas Pyzdek New York: McGraw-Hill, 2003 The Complete Idiot’s Guide to Lean Six Sigma Breakthrough Management Group with Neil DeCarlo, New York: Alpha Books, 2007 Leading an Accounting Firm: The Pyramid of Success, First Edition Troy Waugh © 2012–2013 American Institute of Certified Public Accountants, Inc Published 2012–2013 by John Wiley & Sons, Inc www.ebook3000.com LAF_2011_book_reprint.indb 377 2/8/2013 10:42:08 AM ... 10:41:46 AM Leading an Accounting Firm Leading the Brightest of the Bright CPAs and chartered accountants are some of the brightest professionals in the world Accountants regularly rank in the top.. .THe P Y ramid of S uccess Leading an Accounting Firm 11403-359 Troy Waugh, CPA, MBA Notice to Readers Leading an Accounting Firm: The Pyramid of Success does not represent an of cial position... Stratemann & Co., a top-100 firm in San Antonio, TX xiii www.ebook3000.com LAF_2011_book_reprint.indb 13 2/8/2013 10:41:45 AM Leading an Accounting Firm Leading an Accounting Firm: The Pyramid of Success