{"id":59013,"date":"2019-05-09t07:30:15","date_gmt":"2019-05-09t11:30:15","guid":{"rendered":"https:\/\/48e130086c.nxcli.net\/?p=59013"},"modified":"2019-05-27t13:08:56","modified_gmt":"2019-05-27t17:08:56","slug":"managing-people-the-heart-of-effective-project-management","status":"publish","type":"post","link":"\/\/www.g005e.com\/2019\/05\/09\/managing-people-the-heart-of-effective-project-management\/","title":{"rendered":"managing people: the heart of effective project management"},"content":{"rendered":"

\"\/\/www.g005e.com\/2019\/05\/09\/managing-people-the-heart-of-effective-project-management\/\"<\/a>remember, bad clients crowd out good ones.<\/strong><\/p>\n

by frank stitely<\/i>
\nthe relentless cpa<\/i><\/a><\/p>\n

somewhere in the period between the neanderthals and homo sapiens, the first accountant evolved.<\/p>\n

more:<\/b> workflow for dummies<\/a> | what goes into a client project?<\/a> | value pricers ignore half the pricing puzzle<\/a> | cpas can\u2019t help you<\/a> | the agile accountant<\/a> | the cure for commoditization<\/a>
\n\"goprocpa.com\"exclusively for pro members. <\/span><\/strong>log in here<\/a> or 2022世界杯足球排名 today<\/a>.<\/span><\/p><\/blockquote>\n

he looked around and realized this earth thing might become immensely profitable and set out to get capital gains treatment.<\/p>\n

two hundred thousand years later a woman gave birth to the best possible tax preparer in the history of all creation \u2013 me.<\/p>\n

no creature, man or beast, could prepare tax returns better than i could. my fingers created tax magic on the keyboard. no item of income escaped deductions, and no credits went unclaimed. my clients got tired of big refunds. i was master of the tax universe.<\/p>\n

then my practice grew. vacations and sick days became an unlikely theory. i called my kids every evening to say goodnight, because i would never be home while they were awake. weekdays bled seamlessly into weekends to the point where sometimes i didn\u2019t know the day of the week.<\/p>\n

this was the success i sought? there had to be a better way to live.<\/p>\n

there was, and someone else discovered it long before this self-anointed genius did. i\u2019d like to say i invented delegation, but you\u2019ve been kind in indulging my ego thus far. i went back to a book that my boss gave me when i was promoted to my first supervisory job, \u201cthe one minute manager\u201d by kenneth blanchard and spencer johnson. if you\u2019re new to managing people, there is no better place to start \u2013 or return to, if you\u2019ve forgotten the lessons.<\/p>\n

i\u2019ll assume that like most of us, you\u2019ve managed people in the past. you just got caught up in the day-to-day grind of running a practice and need a good kick in the rear to apply management techniques to your business instead of someone else\u2019s business.<\/p>\n

let\u2019s start out with some math showing why delegation is so important. let\u2019s look at three ways you could prepare a tax return:<\/p>\n

    \n
  1. all by yourself<\/li>\n
  2. with the help of an admin person<\/li>\n
  3. with the help of an admin and a staff person<\/li>\n<\/ol>\n

    in the following illustration, you can see how much it costs to prepare a return in each scenario. you could quibble with the exact numbers in your situation, but the big-picture trend is what\u2019s important. you can make more money per tax return, or any other service, if you use lower-cost people to prepare segments of tax returns.<\/p>\n

     <\/p>\n

    \"chart
    tax return preparation costs<\/figcaption><\/figure>\n

     <\/p>\n

    the numbers are clear. scaling your practice means hiring people. otherwise, you\u2019ll cap out at a size where you\u2019re always nearing total exhaustion with clients constantly complaining that you don\u2019t provide the same service you used to. that\u2019s a valid choice, but not one i\u2019d choose.<\/p>\n

    someone not so wise described managing people as like herding cats. many days, i\u2019d gladly opt for the cats. cats are mostly quiet.<\/p>\n

    i\u2019ve wondered how some employees remember to breathe. we\u2019ve had employees who could get the answer to two plus two right about 80 percent of the time. we\u2019ve had employees who couldn\u2019t copy a column of numbers accurately from one page to another in excel using copy and paste. we\u2019ve had drug use in the bathroom. i could go on and gladly would with you over a beer.<\/p>\n

    nonetheless, our practice is more profitable with people than without. i can concentrate on the highest-value tasks and let others do the rest. as i write this, we have our best team ever, including a couple of fresh-off-the-college-boat newbies. my primary role is traffic cop and client communicator. if i personally prepare as many as 20 tax returns this year, including my own, i\u2019ll be disappointed.<\/p>\n

    there\u2019s a hidden value to assembling a team. your business will be worth more. i\u2019m putting on my certified valuation analyst (cva) hat. what\u2019s the most valuable type of small business? one that isn\u2019t dependent on the owner. if you can hand the office keys to someone else and the business chugs along, you have an easily salable business. if the business depends on you, you have little to sell. a buyer risks your clients leaving when you do.<\/p>\n

    my business partner and i used to talk about maintaining the illusion. the illusion was that we appeared to be doing all of the work. clients would never talk to staff, and hopefully wouldn\u2019t even know they existed. we operated under the false assumption that clients wouldn\u2019t tolerate working with anyone other than our exalted, high holy, cpa firm partner selves. kneel and genuflect when you speak our names. you can return to your seat now.<\/p>\n

    so you still think your clients only want to deal with you? here\u2019s why that assumption is wrong. the top few thousand firms in the country seem to have gotten past it. many of the people you meet at conferences have gotten past it. do any of the big four still have a name partner? of course not. and their clients produce a lot more revenue than yours \u2013 or mine, i must reluctantly admit. your clients expect to deal only with you because you have trained them that way.<\/p>\n

    so, you think it has nothing to do with training your clients? how many times have you sold the concept to potential clients that you\u2019ll personally keystroke every bit of information into their tax returns, unlike that competitor, bob, down the street? in those moments, you are selling you, not the expertise of your firm. you have just promised a $350 client that you\u2019ll spend $500 of your time on his returns. don\u2019t be surprised when he refuses to talk to anyone but you on april 15th<\/sup>.<\/p>\n

    top-quality clients are smart people. if they own businesses, they get the delegation thing. they do it. they expect you to be a smart businessperson as well. if you\u2019re printing your own tax returns or scheduling your own appointments, they won\u2019t view you as a trusted advisor. if you can\u2019t run your business, you can\u2019t help them with theirs.<\/p>\n

    will you lose some clients over this? yep \u2013 the low-dollar ones. they\u2019re the ones who tie up 90 minutes each march in meetings to show you all their w-2 forms, making sure you understand why their dog\u2019s medical expenses should be deductible. wouldn\u2019t using that 90 minutes to serve your best clients be a better use of time? bad clients crowd out good ones, and bad clients refer other bad clients. let them infect your competitor\u2019s practice.<\/p>\n

    by now, you\u2019re either convinced or you need a psychiatrist. let\u2019s move on to the nuts and bolts of staffing. if you\u2019re a sole proprietor, who should be your first hire? if you\u2019re in a larger firm, take a nap for the next few paragraphs. i\u2019ll catch you on the flip side.<\/p>\n

    as a sole proprietor, hire an admin person first. you could hire both an admin and tax preparer, but if you haven\u2019t managed people in a while, try a tax season with just the unmitigated joy of having a good admin person. assign the following tasks to him \/ her:<\/p>\n

      \n
    1. answering the telephone<\/li>\n
    2. producing final tax returns<\/li>\n
    3. scanning client documents<\/li>\n
    4. scheduling<\/li>\n
    5. ordering office supplies<\/li>\n
    6. keeping you from killing a third of your clients<\/li>\n<\/ol>\n

      hiring an admin person risks very little. the wage rate will be relatively low. admin people are also somewhat easy to find and not disruptive to fire quickly if one doesn\u2019t work out. and from experience, i can tell you most won\u2019t work out. when you find a good person, give him\/her a raise after tax season to slightly above market pay.<\/p>\n

      stability in your admin position is money in the bank. two of our admin people have been around for 15 and five years respectively. treat the good ones like family and the bad ones like a cancerous tumor. an admin person leverages your time, freeing you to prepare more tax returns. imagine the efficiency of having someone year after year who knows your procedures. then hire that person.<\/p>\n

      hiring a tax preparer is more difficult. you have the chicken and egg problem \u2013 or at least you think you do. \u201ci need to hire a preparer to grow my practice, but i don\u2019t have the money to hire one until i grow my practice.\u201d<\/p>\n

      again, other people have conquered this herculean challenge. aren\u2019t you at least as smart as your competitor down the street, who believes general ledger won the revolutionary war? we all know mel gibson won that one.<\/p>\n

      consider hiring a per diem, part-time or tax-season-only person. you can call them what you wish. we use about 15 of these people to staff up during tax season. are they as good as full-time employees? generally, no. in general, you can\u2019t control their schedules and workloads as tightly as employees. also, as part-timers in the business, few actively pursue improving their skills.<\/p>\n

      but there are exceptions. our best corporate tax person works for us part-time and lives in phoenix. we are located in northern virginia. i use his workpapers, not mine, to train others. if i had to choose between his life and the lives of my children, well, none of my kids is that useful during tax season. one of my kids is a cpa, but she\u2019s an auditor. we all know auditors aren\u2019t that useful. he might replace her in my will.<\/p>\n

      people sometimes ask if i\u2019m disappointed i have four daughters and no sons. the answer is no, but i\u2019m disappointed i have no tax preparers as children. we need cheap labor. if you can\u2019t exploit your kids, who can you exploit? then i could \u201cemploy\u201d my kids and deduct a salary that they never get, just like our clients do.<\/p>\n

      you can find the seasonal staff on craig’s list or some other similar site. oddly, we have not found good full-time preparers on craig\u2019s list. i have no idea why. that\u2019s just our experience. here\u2019s a craig\u2019s list hint: set up a separate email address to handle the resumes, unless you want your inbox to become your spam folder, full of interesting ways to fill lonely nights.<\/p>\n

      local homeowners\u2019 association newsletters yield great candidates as well. lots of full-time moms and dads look to use their professional skills on a part-time, or tax-season-only, basis. welcome to the 21st<\/sup>-century gig economy. you can also find sole proprietors trying to use spare time while they start their practices. the danger with this last category is that, if they get busy in late march, your clients\u2019 returns will wait.<\/p>\n","protected":false},"excerpt":{"rendered":"

      \"\/\/www.g005e.com\/2019\/05\/09\/managing-people-the-heart-of-effective-project-management\/\"<\/a>
      \nremember, bad clients crowd out good ones.<\/strong>
      \nby frank stitely<\/em>
      \n      the relentless cpa<\/a><\/em><\/p>\n","protected":false},"author":1362,"featured_media":56466,"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":[1905,1363,1908,3120,3002],"tags":[],"class_list":["post-59013","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-clients-and-service","category-featured","category-management","category-pro-member-exclusive","category-special"],"acf":[],"yoast_head":"\nmanaging people: the heart of effective project 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