retention? new clients? check, check.
by jody padar
the radical cpa
the owners of “very prepared” firms say “technology is having a very significant impact on my firm,” vs. the less prepared who view technology as a utility, a mechanism for greater day-to-day efficiency. “very prepared” firm owners report seeing and using the technology as an enabler of better business results.
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this is exactly what the radicals believe and implement. technology has already disrupted our core and we are proactively adapting to the changes it has created.
gee! it seems to me that the “very prepared” firms sound like radicals. everything the radicals do, fits right in to the better firm preparedness survey published by cch.
tips for improving client service:
- become your client’s “preparedness advisor,” helping them understand and tackle the changes most important to their business.
- meet twice a year with the 20 percent of your client base that generates 80 percent of your firm’s revenue to discuss their goals, challenges, needs and wants.
- invite younger talent to “shadow” client interactions and sit in on prospect meetings.
tips for integrating technologies:
- remember that technology-literate accounting professionals produce more revenue per partner, with less effort.
- review your processes at least twice a year, focusing on simplification and training users on new procedures.
- explore cloud-based firm management tools like cch axcess to help grow, manage and protect your business.
tips for digital mobility:
- ask whether a more “virtual” work environment is right for your firm. mobile devices and cloud computing can enhance your firm’s flexible work options and boost client interactions.
- join a peer community of technology professionals who will provide access to experience, expertise and personal development outside your firm.
- ensure that current leaders in the firm are using the top digital tools available today.
tips for talent management and succession planning:
- remember succession planning is a form of talent retention. great talent won’t stay at a firm that is not planning for their futures.
- always include young associates any time you have a client meeting or are meeting with a potential client.
- take a tip from the nfl: develop an annual “depth chart” and assess where your talent is today in terms of performance.
tips for social media:
- use social media to find new clients, engage with existing ones, and scout prospective employees.
- start with a social media strategy based on your firm strategy. ask: where do i want increased credibility and visibility?
- listen first before joining the social conversation and use marketing messages sparingly.
- retweet, “like” and share client news to keep your firm top-of-mind and in front of the market.
within the study, cch provided tips on how firms can be better prepared for the future. what’s interesting to note is that the radical practitioners inherently have all the following tips included within their new business models. the radical approach is emphasized in parenthesis below. check out the similarities:
customer service: meet twice a year with 20 percent of your customer base that generates 80 percent of your firm’s revenue to discuss their goals, challenges, needs and wants. (all value-priced engagements include required forward-looking meetings.)
integrating technologies: review your processes at least twice a year, focusing on simplifying and training users on new procedures. (this is similar to adding a design-thinking element to your firm process and making sure it’s updated regularly.)
digital mobility: ask whether a more “virtual” work environment is right for your firm. mobile devices and cloud computing can enhance your firm’s flexible work options and boost customer interactions. (cloud and mobile technology is at the core of a radical firm.)
talent management and succession planning: remember succession planning is a form of talent retention. great talent won’t stay at a firm that is not planning for their futures. (talent is maybe the most important reason for change. talent appreciates internal changes that illustrate “we are changing with the times.”)
social media: use social media to find new customers, engage with existing ones, and scout prospective employees. (radical firms have social business in their culture.)
look around. the aicpa, the state societies and the vendors have now endorsed our winds of change. they’ve put their support in it because the trends are telling them this is the future. so what’s happening now is that the money is going there and they’re trying to help move the market, and the market is moving.
years ago we were a bunch of grassroots cpas who were trying to move a profession. we were the innovators years ago. now the profession is at the early adoption stage moving toward the early majority. the money has moved and the people and industry are following.
maybe you’re thinking by now, “she’s just a crazy person! the cpa profession can’t and won’t be disrupted. we have regulations and we have been in existence for over 100 years.” i would kindly remind you that those who don’t adapt won’t survive. the time is now to change so your employees won’t leave. what i see happening on the horizon is that bigger firms will acquire midsized firms and sole practitioners will not move up market. some will die with their books of business. the midsized firms who can’t change or agree about how they should change (which is a huge issue in succession) are the firms that are going to be hit the hardest. expect the managers or the seniors to jump ship. the movement is happening, despite the resistance.
dealing with legacy customers
new customers want cpas to use the latest technology and the next generation of business owners demands it. but what about the legacy customers who you think don’t care?
the original owners may not care, true. but your legacy customers are going to have the same succession issues as your firm. those customers are going to have to create a succession plan and if that plan is going to the next generation, that generation doesn’t have any experience with you as a cpa firm. and you better believe technology is important to them; it’s in their dna.
for example, if the dad passes the torch to the kid, and the kid says, “well, i don’t know john cpa all that well. they don’t use cloud technology and i’m going find a firm that does use cloud.” they choose technology because they have no current relationship with the firm. we receive many leads from business owners in this situation.
the current processes are breaking down
think about how the world has changed from just 20 years ago. the way information came into our firms two decades ago was drastically different. customers dropped documents off, or they came via mail or fax. email was just starting. now, information is coming into our firm via portals, text, social media channels, email, drop off. so how as firm owners are we going to adapt to that?
we know that our processes are failing. we know that our current set of technologies the large vendors are creating for us are failing. they need to catch up with the way the world operates today. we need to start looking at the upcoming vendors, those that are more cloud-based and enable the new way of working.
take for example, video sharing. the kids in my world don’t even watch tv; they watch youtube, and go straight for what they want. children are being raised on video. when they enter the workforce, how will that impact relationships and interactions? baby boomers aren’t exempt from this either. how many of us live by our iphones or our droids and film a video and post it to youtube within minutes?
just think about how we could engage with our customers differently, if we used some of these tools more. we have so many more capable and cool things at our fingertips. it’s unbelievable. when you think about it, our ability to create content – in real time – will drastically impact how we do business in our firm tomorrow and in the years to come.
processing change
the accounting profession hasn’t changed its processes in at least 20 years. take for example e-file. when it first launched, a majority of practitioners refused e-filing and tried to not e-file until the irs actually mandated it. i believe the reason they actually fought it was because it was going to have to change their process, even though it was much better for their consumers. their customers wanted e-file. yet, not surprisingly, cpas fought it tooth and nail because obviously we know when we e-file, it’s more steps on our end than if you were to just staple a return, give them an envelope and have the customer mail it out.
to me, that’s a perfect example of professionals digging in and not wanting to change when it actually benefited the customer. it didn’t matter that the customers were delighted and they got their money back quicker. it didn’t matter that the retail stores around them were changing as soon as possible to service their customers, the h&r blocks, the liberty taxes. the retail shops did it because they knew that it was a customer-friendly approach.
change hurts. and we are going to feel the pain.
but once we get through the initial phase of change, more innovation and evolving will come and we’ll be much better firms for it.