quality work, quality service not the same thing

competence isn’t enough.

by domenick j. esposito
8 steps to great

over the years, i have enjoyed reading and internalizing the insights of david maister, highly regarded author, speaker and practice management consultant.

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many years ago (circa 1993), maister wrote a professional service firms article titled “quality work doesn’t mean quality service.”

“the first law of service expressed as a formula: satisfaction equals perception minus expectation.”

– david h. maister

it would pay dividends to your firm if the messages contained in that article – still applicable to today’s cpa firms (perhaps even more so because of the intense pressure on efficiencies and fees) – were internalized by your client service professionals (millennials just entering the profession, as well as partners and more experienced staff). that is why i decided to share my perspective on this topic.

let’s begin by my asking you, as a leader in your firm, two simple questions and by providing you with an illustration that will paint the picture.

how many of your client service partners truly understand what quality client work and quality client service mean?
how many of your client service partners and staff know the difference between the two?

let me illustrate:

let’s say that a firm client needs some last-minute international tax planning done and shortly thereafter needs the filing of federal and state tax returns. a few weeks after the advice/guidance and the filing deadline for the returns, a country club friend of the client (who knew about the required services) asked if your firm accomplished the required tasks. the client answered, “i think so. i have the impression that the partner and staff provided quality international tax advice and the returns were certainly filed on time.” then the friend asked, “did you get good quality service?” the response was, “the service could have been better. i’m not particularly happy with the firm.”

you, as a leader in the firm, are told about this client’s comments and you approach the partner and staff responsible for the services about them. their reaction was, “how could this client possibly be unhappy? we provided high-quality advice and the return was filed on time.”

sound familiar?

if yes, ask that the client service partner and staff answer the following questions:

were you easily accessible to the client?
was the client able to easily set a meeting with you to discuss needs and expectations?
did you provide the advice and prepare the return expeditiously?
did you take the time to explain what you did and why?
did you ask intelligent questions to help determine the scope of the work and a fee estimate?
did you make the client feel important?
if complications arose, did you contact the client as soon as you became aware of the complications?
did you provide forward-looking advice that would be helpful next year?

as these questions illustrate, the practical meaning of good quality service extends beyond providing tax advice or preparing returns (i.e., good work). to provide quality service, client service partners and staff are not only required to provide the work in a quality fashion, but they are also required to service the client. and yes, from a firm perspective, let’s not forget that the work must be done both profitably and efficiently.

many clients are unable to distinguish between outstanding technical work and simply competent technical work. in choosing a client service team, many clients pay more attention to the ability to “connect” with the client service partner and staff and the quality of service received than the quality of work performed – which, as illustrated, are not the same thing. and even if clients are sufficiently sophisticated and able to distinguish between outstanding and competent work, their technical needs may simply require competency. these clients know that any number of cpa firms can provide technical advice and prepare the return, and rather than seek out the most highly qualified (and probably the most expensive) client service technician, these clients evaluate cpa firms along several dimensions, including responsiveness, attitude and other non-technical “service” criteria.

the central challenge for cpa firms is to profitably and efficiently manage not only the substance of what client service partners and staff do for clients, but also to manage client expectations and perceptions. all too often today, many client service professionals provide superior work but it’s not perceived by the client. or, the client service professionals may invest significant amounts of time and effort in dealing with unforeseen contingencies but, because the client did not expect the contingencies, he/she is irritated by the extra delay and expense rather than thankful for the skills and effort. and moreover, the work performed isn’t very profitable because of inefficiencies and poor communications that could have been avoided by addenda to engagement letters.

when looking inside cpa firms, it’s important to remember the three most important keys to client service success: (1) availability, (2) affability and (3) ability – in that order. client service partners and staff need to be reminded of the most common service gripes by clients, which include the following comments:

“they do great work but i can never get hold of them. they don’t return phone calls, emails or text messages!”
“i wish they would keep me informed of progress. this may be just another engagement for them, but to me it’s critical. i want to know what’s going on.”
“i continually get surprised by the last-minute revisions to my quarterly tax payments. the surprises usually result in the cutting of a check for more than i was prepared to do.”
“i’m tired of continually getting my tax return delivered to me on the morning of april 15^th.”

firms lose clients every day because of poor client service. many times, these losses are attributable to a lack of relationship with the client and the lack of timely communication. both characteristics are avoidable if client service professionals remember that quality work does not mean quality service.

posted on march 30, 2017

dom esposito

about the author

domenick j. esposito was the ceo of grant thornton, vice-chair of bdo, and national growth director at cohnreznick.

he is the author of "8 steps to great: the eight essential strategies driving success at the world's largest cpa firms. and how to apply the lessons at firms of all sizes," published by 卡塔尔世界杯常规比赛时间.

a life in public accounting

in 2016, esposito, then a former ceo of bdo, moved from a 46-year career in public accounting into the next phase of his professional life – consulting to cpa firms, launching a boutique advisory firm, esposito ceo2ceo, that provides advice to ceos, managing partners and other senior partners of cpa firms focused on the mid-market throughout the u.s.

with the launch, esposito authored “8 steps to great," a guide for ceos, managing partners, and other senior partners on how to move their firm to the next level.

cohnreznick national growth director

esposito was one of the most qualified individuals in the country to advise cpa firms on growth and profitability. through 2015, he was national practice & growth director and an executive board member of cohnreznick, llp, a mid-market sustainable brand and the tenth-largest cpa firm in the united states. he oversaw cohnreznick’s go-to-market industry specialization and consulting and advisory service lines. he was also intimately involved in the firm’s mergers and acquisitions and strategic and tactical activities for its public company and capital markets initiatives. dom joined the predecessor firm of j.h. cohn in 2002 as the chief operating officer and executive board member.

dom was also an independent director of ethan allen interiors inc. for several years (through 2014), dom was a member of the nasdaq listing and qualifications committee to the organization’s board of directors. he formerly served as the leader of the new york state society of cpas committee for large and medium-sized firms practice management. he also was an adjunct accounting professor at c.w. post/long island university.

bdo and grant thornton

through october 2002, dom was vice chairman at bdo, a mid-market sustainable brand and the seventh-largest international accounting and consulting firm in the u.s., with almost 50 offices and 3,400 employees. during his brief time with bdo, he was responsible for the alliance distribution network (at the time consisting of over 80 cpa firms, 10 law firms, and 25 consulting firms). he was also responsible for attracting and servicing a number of clients.

from 1979 through 2001, dom was with grant thornton, another mid-market sustainable brand and the sixth-largest international accounting and consulting firm in the u.s., with over 50 offices and 4,500 employees. he joined grant as an audit manager, became a partner in 1981, led the long island office from 1984 to 1986, became assistant managing partner of the new york office in 1986, and from 1988 to 1999, led the new york office. in 1999, esposito became a regional managing partner and for two years, through 2001, was the firm’s chief executive officer.

cpa, partner, mba, leader, influencer, media celebrity

between 1996 and 1998, and while he was ceo, esposito was on the partner board and was also on the board of grant thornton international – the worldwide umbrella organization. in these capacities, he developed strong experience in strategic thinking and execution, international relationships, corporate governance, partnership matters, branding, expense control, client relationships, and new business development.

as ceo, he took grant thornton to record earnings, consummated the largest line-of-business sale in the firm’s history, developed a major joint venture with axa financial, and made the largest practice acquisition in the firm’s history. from 1969 to 1979, esposito was with price waterhouse (now pwc), servicing ibm when he was promoted to manager in 1976.

dom was a cpa, has been quoted in national and local media, and has appeared on radio and cable tv.

esposito also testified before the securities and exchange commission.

he received his m.b.a. from st. john’s university and his b.s. from ferris state university. accountingtoday, one of the leading trade journals for the accounting profession, named esposito one of the most influential people in the profession for two consecutive years.

he passed away in 2021 at the age of 74.

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