{"id":54118,"date":"2018-03-28t09:45:23","date_gmt":"2018-03-28t13:45:23","guid":{"rendered":"https:\/\/48e130086c.nxcli.net\/?p=54118"},"modified":"2018-03-30t13:22:54","modified_gmt":"2018-03-30t17:22:54","slug":"profitability-requires-discipline","status":"publish","type":"post","link":"\/\/www.g005e.com\/2018\/03\/28\/profitability-requires-discipline\/","title":{"rendered":"profitability requires discipline"},"content":{"rendered":"<p><strong><a href=\"https:\/\/cpatwpe.s3.amazonaws.com\/cpatrendlines\/wp-content\/uploads\/2017\/04\/profit-graphic_fkcqf5s_.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignright size-medium wp-image-51729\" src=\"https:\/\/cpatwpe.s3.amazonaws.com\/cpatrendlines\/wp-content\/uploads\/2017\/04\/profit-graphic_fkcqf5s_-424x393.jpg\" alt=\"\" width=\"424\" height=\"393\" \/><\/a>19 basic principles to improve operations &#8230; but don&#8217;t treat them like &#8220;flavor of the month.&#8221;<\/strong><\/p>\n<p><i>by domenick j. esposito<\/i><br \/>\n<a href=\"\/\/www.g005e.com\/shop\/esposito-8\/\"><i>8 steps to great<\/i><\/a><\/p>\n<p>we all know that improving profitability on a sustained basis generally is a long-term play that requires significant planning, discipline, accountability, implementation and patience.<\/p>\n<blockquote><p><b>more on strategic planning: <\/b><a href=\"\/\/www.g005e.com\/2018\/03\/24\/link-strategy-winning-value\/\">the link between strategy and winning on value<\/a> | <a href=\"\/\/www.g005e.com\/2018\/02\/22\/mine-vs-vs\/\">mine vs. yours vs. ours<\/a> | <a href=\"\/\/www.g005e.com\/2018\/01\/17\/22-things-leaders-must\/\">22 things leaders must do<\/a> | <a href=\"\/\/www.g005e.com\/2017\/12\/20\/21-questions-help-unlock-accelerated-growth\/\">21 questions to help unlock accelerated growth<\/a> | <a href=\"\/\/www.g005e.com\/2017\/03\/30\/quality-work-quality-service-not-thing\/\">quality work, quality service not the same thing<\/a><br \/>\n<strong><img loading=\"lazy\" decoding=\"async\" class=\"alignleft size-full wp-image-49700\" src=\"http:\/\/4f2bur4nuye2cgakm2rm61qk.wpengine.netdna-cdn.com\/wp-content\/uploads\/2016\/08\/yellow_key_clip_art-e1375897299811-36p-hi-1-e1470686574894.jpg\" alt=\"goprocpa.com\" width=\"39\" height=\"16\" \/><span style=\"color: #b79c00;\">exclusively for pro members. <\/span><\/strong><span style=\"color: #b79c00;\"><a style=\"color: #b79c00;\" href=\"\/\/www.g005e.com\/wp-login.php?redirect_to=\/\/www.g005e.com\/2018\/03\/28\/profitability-requires-discipline\/\">log in here<\/a> or <a class=\"external\" style=\"color: #b79c00;\" href=\"http:\/\/goprocpa.com\/\" target=\"_blank\" rel=\"noopener\">2022世界杯足球排名 today<\/a>.<\/span><\/p><\/blockquote>\n<p>unfortunately, the senior partners at many small and mid-sized cpa firms do not possess all of these attributes and therefore are unable to make significant strides in their bottom-line distributions to their partners. while it\u2019s an uncomfortable scenario, it\u2019s reality and almost understandable as many small and midsized cpa firms are thinly managed and do not have the leadership that is necessary to change the inevitable path of merging up.<br \/>\n<!--more--><br \/>\nwhile improving long term profitability is a complex challenge, there are several basic principles that have the potential for significant operational improvements. once applied, many small and midsized firms incrementally move the needle on the bottom line. nevertheless, we have found that even these basic principles, tried and true, aren\u2019t consistently used at many small and midsized cpa firms because of a lack of organizational discipline.<\/p>\n<blockquote><p>\u201cin reading the lives of great men, i found that the first victory they won was over themselves \u2026 self-discipline with all of them came first.\u201d \u2013 harry s. truman<\/p><\/blockquote>\n<p>here are the basic principles to improve operations:<\/p>\n<ul>\n<li>strive for a shared vision about your firm\u2019s future and strategies (with partner accountability) that will help achieve success.<\/li>\n<li>promote a \u201cfirm first\u201d culture that rewards collaboration.<\/li>\n<li>reach for a high degree of institutional partner loyalty and team effort by placing great emphasis on firmwide coordination of decision making, group identity, cooperative teamwork and institutional commitment.<\/li>\n<li>create a foundation of fairness and a lack of cronyism. when your firm says that certain things matter and they actually do matter, it goes a long way in establishing trust in your firm\u2019s leadership.<\/li>\n<li>insist on a sound economic model that rewards consistent performance.<\/li>\n<li>insist on sound corporate governance that \u201cwalks the talk\u201d when the rubber meets the road.<\/li>\n<li>require consistent and persistent leadership by senior partners with a no-tolerance view on individual partners who think that they themselves are \u201cstars\u201d and much more important than the firm itself.<\/li>\n<li>take a hard look at your partner compensation model and ensure that it contains enough transparency and that it supports your firm\u2019s core values and strategic decisions.<\/li>\n<li>attract and retain first-class partners who understand how to build lasting business relationships with clients and contacts.<\/li>\n<li>develop partner goals, holding partners accountable for delivering results, and rewarding compensation when goals are achieved both individually and collectively.<\/li>\n<li>drive industry specialization (the key to a value proposition that differentiates) into your firm\u2019s dna.<\/li>\n<li>emphasize growth on the top and bottom lines at satisfactory rates (say 6 percent to 8 percent per annum) through cross sells and new originations.<\/li>\n<li>create a business development culture that includes everyone within their capacity and skill set.<\/li>\n<li>demonstrate that your firm is different by bringing value to clients that is measurably better than competitors. this is readily achieved when your firm institutionalizes its approach to client service (client expectations) by consistently providing byproducts of compliance services such as observations to ebitda and working capital improvements.<\/li>\n<li>approach client service with multidisciplinary client service teams of audit, tax and advisory professionals.<\/li>\n<li>make it well known that the firm wants marquee clients that build brand awareness and credentials and not simply volume for volume&#8217;s sake.<\/li>\n<li>emphasize that long hours and hard work demonstrate high involvement and commitment to the firm.<\/li>\n<li>place an emphasis on continuous education on firm policies, procedures and protocols.<\/li>\n<li>look for smart mergers and lateral hires that add to a firm\u2019s strength, improves its weaknesses and expand its footprint.<\/li>\n<\/ul>\n<p>implementing these principles does not require brain surgery or dealing with complex longer-term strategies. nevertheless, we have found that many small and midsized cpa firms cannot implement many, if not most, of them on a sustained basis. and again, we believe that it comes down to a lack of organizational discipline.<\/p>\n<p>we have found that many firms pick and choose a number of these principles and treat them as the flavors of the month. emphasis is pushed through their firms for one or two months and profitability improves.<\/p>\n<p>that\u2019s the good news. now the bad news. after one or two months of c-suite muscle, management\u2019s attention wanes and the foot is taken off the gas pedal. slowly people get the impression that leadership no longer is interested in the initiative. if leadership isn\u2019t looking, many professionals will go back to their bad or ineffective habits. it\u2019s human nature.<\/p>\n<p>these basic operating principles are tried and true tools to improved profitability. we believe they can be viewed as low-hanging fruit. they work.<\/p>\n<p>if your firm does nothing else coming out of the tax season, we encourage you to take our list of basic principles, prioritize it for your firm and start driving the most impactful through your operation with persistency and consistency. the key to improved profitability is organizational discipline and determined leadership.<\/p>\n","protected":false},"excerpt":{"rendered":"<p><strong>19 basic principles to improve operations &#8230; but don&#8217;t treat them like &#8220;flavor of the month.&#8221;<\/strong><br \/>\n<em>by domenick j. esposito<\/em><br \/>\n<em><a href=\"\/\/www.g005e.com\/shop\/esposito-8\/\">8 steps to great<\/a><\/em><\/p>\n","protected":false},"author":1596,"featured_media":49054,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"","_relevanssi_noindex_reason":"","footnotes":""},"categories":[1363,2254,3120],"tags":[],"class_list":["post-54118","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-featured","category-growth","category-pro-member-exclusive"],"acf":[],"yoast_head":"<!-- this site is optimized with the yoast seo plugin v24.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>profitability 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esposito","image":{"@type":"imageobject","inlanguage":"en-us","@id":"\/\/www.g005e.com\/#\/schema\/person\/image\/","url":"https:\/\/cpatwpe.s3.amazonaws.com\/cpatrendlines\/wp-content\/uploads\/2016\/01\/dom-esposito-hi-rez-2015-424x594-2-201x201.jpg","contenturl":"https:\/\/cpatwpe.s3.amazonaws.com\/cpatrendlines\/wp-content\/uploads\/2016\/01\/dom-esposito-hi-rez-2015-424x594-2-201x201.jpg","caption":"dom esposito"},"description":"domenick j. esposito was the ceo of grant thornton, vice-chair of bdo, national growth director at cohnreznick, and the author of \"8 steps to great:\u00a0the eight essential strategies driving success at the world's largest cpa firms.\u00a0and how to apply the lessons at firms of all sizes,\" published by 卡塔尔世界杯常规比赛时间. click here for more by domenick j. esposito he died at age of 74 on sept. 22, 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