analyze your firm to keep it current

six people seated at table for a business meeting, with another six people visible on videoconference screen

does everyone have the same vision?

by august j. aquila
price it right: how to value accounting services

i have discussed some of the issues behind developing an effective website. if your partners can’t agree on the overall points of the website, it merely means that there are different visions for the firm within the firm. the best way to overcome this obstacle is to conduct a self-analysis.

more: what makes a great website? | losing can help you win more | eight areas to cover for personal goals | service quality: the key to client retention | how life cycle changes your marketing | clients buy solutions, not features | make sure you know what you will get from your marketing | three pillars support a successful accounting firm | clients have six reasons for needing you | six ways to market your technology consulting practice | sixteen marketing activities to try | the four steps of your personal marketing process
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you can use the following questions at a firm retreat. hand out the questions to the retreat participants prior to the meeting. ask the retreat participants to write out the answer to each question. then have open discussions about the questions and their answers, and try to come to some agreement. here are the questions:

firm history

  • who were our founders?
  • why did they start the firm?
  • what was the core practice at the beginning?
  • how have we changed over the years?
  • did we have any (many) mergers?
  • who became partners and what influence did they have on the firm?
  • who left the firm and why?
  • are we still practicing from the same location? if not, why did we move?
  • what were our greatest successes?
  • what were our greatest failures?
  • how would you define our firm culture?
  • what are your goals for the firm?
  • how do you want to be remembered?

firm management

  • what is our current management structure?
  • how effective is it?
  • who manages the firm and why?
  • how are members of the management committee selected?
  • do we have a workable succession plan?
  • is our management style reactive or proactive?
  • how does the firm communicate with the staff and partners?

services

  • what are our core services?
  • what percentage of the total income does each service constitute?
  • what new services have we added over the last five to 10 years?
  • do we track profitability by service area?
  • do we have the right people to successfully provide the services?
  • do we have the right people to successfully grow the services?
  • which of our services are growing?
  • which of our services are shrinking?

income allocation

  • does our income allocation encourage partners to bring in new business?
  • do we encourage staff to bring in new business?
  • does our compensation policy reward performance or for seniority and equity ownership?
  • does our compensation policy need to be updated?
  • what changes would you suggest to our current compensation system?

client relations

  • how do we manage our client relationships?
  • do clients generate most of our leads for new business?
  • how do we recognize and reward partners and staff who nurture client relationships?
  • how good are we at cross-selling services?

marketing

  • how comfortable are we in marketing our services?
  • do we promote marketing training for partners and staff?
  • how is marketing a part of our firm’s culture?

constantly asking these questions will keep the firm current.