the link between strategy and winning on value

one is a tool, not an end itself.

by domenick j. esposito
8 steps to great

there is a wide chasm between talking about value and making your firm a value-based-firm (“vbf”). the first step in transforming your firm from just another accounting firm to a vbf is to develop the strategic framework that will consistently deliver value to your clients.

more on strategic planning: mine vs. yours vs. ours | pitching vs. pursuing | the top 11 reasons cpa firm mergers fail | growth: the difference between the disruptor and the disrupted? | m&a: sometimes bigger is better | what a value proposition truly is (and isn’t) | does your firm need an independent executive committee member? | 10 ways to link compensation and strategy
exclusively for pro members. log in here or 2022世界杯足球排名 today.

there have been tons of articles written about strategy, its importance and multiple “how-to” models. in many articles, the discussion focuses on creating that “killer” strategy that will propel your firm to stardom and unlimited profits.

strategy is presented as the driver of top performers and although important, strategy is a step to the true driver of firm performance – value. the bottom line is that you win on value – not on strategy.

let’s begin by understanding the strategy model that firms should use to develop their strategic initiatives for the next few years.

an explanation of each bucket and the logic of the flow:

growth – what is your top line goal and the key strategies to achieve the goal?
organization – what changes are necessary in your organization (processes, systems, etc.) to support the successful achievement of your growth goal?
people – what talent do you have and/or need to achieve the growth and organizational goals?
profit – what is your profit goal given the above and what are the key performance metrics that need to be achieved?
leadership – what structure of leadership and management team is necessary to drive the successful achievement of all the above initiatives?

another way to look at it is the model presented above creates the framework to deliver on your firm’s value model (“vm”) – what you have chosen to set your firm apart from your competitors and to win new clients on value and not price.

building your strategies within this model connects and aligns all the important pieces of the firm and ensures that all aspects of the firm are working in unison toward the common vision and strategy – fully supporting the vm that is critical to sustainable success.

so how does this strategic planning model relate to value? whatever your decision is relating to your firm’s vm, to differentiate your firm from all others, it must be grounded in and supported by the strategic model that drives the organization and its people. any vm not linked to and supported by the firm’s strategy and organization is just another slogan that quickly ends up in the graveyard of useless slogans that so many firms have created.

why? in simple terms, the vm has to be the living, breathing culture of the firm – engrained in every employee, supported by every system and process, consistently and visibly delivered in every interaction with clients, prospects, cois and anyone else who matters to the success of the firm. it is an attitude, the mojo of the firm.

your vm has to be based on what your clients and prospects value and not on what you value, not on what you do and clearly not on promising quality and service. in order to make your vm a reality and something that not only resonates with your clients and prospects but that also is part of your firm’s dna, the strategic model outlined above is the planning framework to create that reality.

let’s think about why. many strategic planning models are based on some form of swot. while important, it too often results in the focus of planning on opportunities and threats without any real linkage back to how the firm actually operates. all planning needs to look at some variation of swot in order to create a strong baseline regarding the current “as is” of the firm. however, planning based on just opportunities and risks without a clear and strong linkage to how the firm actually operates will fail to achieve the desired outcome – every time.

most strategic plans include a vision and mission statement component. although necessary, the third and most important component is missing – the vm.

vision is about who you are as a firm.
mission is about what you do as a firm.
value is about what you deliver as a firm.

all three are essential to a closed-loop structure for strategic planning. to ensure that your firm’s vm is real and that it delivers the promised value to your clients every time, complete these five steps to value planning and see your wins as well as client retention soar:

scota – start with an objective understanding of the “as is” of the firm – what are your strengths, challenges, real opportunities and finally “targeted actions” or what initiatives will be necessary to capitalize on the opportunities.
vision statement – develop a clear and convincing value statement about who your firm is, what it stands for and what you are striving to become.
mission statement – develop a clear definition of what your firm does – what is its ultimate mission or why you exist,
value model – what is the value that you will deliver to your clients and prospects – the value that they want and that clearly differentiates your firm from the pack.
strategic planning model – finally, prepare your 18-month to two-year plan using the model presented above. for each strategy within each bucket, develop the initiatives to be completed to successfully implement each strategy. for each strategy and initiative, define the deliverable and the metric of success.

completion of each of the five steps, each with the vm at its core, will successfully transform your firm to a successful vbf that can dramatically improve its organic growth and profitability.

now the most challenging task lies ahead – implementation, keeping everyone’s focus on the implementation of the plan and transformation into a vbf.

posted on march 24, 2018

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.

click here for more by dom esposito