the:EliteFirm mastery in modern accounting Pillar 2 FOCUS workbook 1. Streamlining Compliance 2. Working Papers 3. Records Grading and Scope Creep 4. Utilisation M O D U L E 3 - C A P A C I T Y C R E A T I O N 5. Client Grading 6. Ideal Clients 7. Adaptive Capacity 8. Client Plans Contents M O D U L E 4 - C L I E N T M I X 9. Audit 10. Transfer 11. Replacement Ladder 12. Default Diaries 13. Time Machine M O D U L E 5 - T I M E M A N A G E M E N T Welcome /iˈliːt/ belonging to the most powerful, best-educated, wealthiest or best-trained group in a society ie the best of the best As we reconvene for Workbook 2 of 'the:EliteFirm: Mastery in Modern Accounting,' we are excited to welcome you back and embark on our next phase: 'Focus'. This crucial segment is meticulously designed to deepen your understanding and application in three key areas: Capacity Creation, Client Mix, and Time Management. Module 3: Capacity Creation In Module 3, we delve into the art of Capacity Creation. We will challenge conventional practices, address questions like 'Are You Over-engineering Compliance?' and explore the intricacies of 'Working Papers,' 'Grading and Scope Creep,' and 'Utilisation.' This module is tailored to refine your approach to daily tasks and workflows, ensuring you maximize efficiency and effectiveness in your practice. Pillar 2 -Focus Introduction Module 4: Client Mix Shifting gears to Module 4, our focus will be on optimizing your Client Mix. Through 'Client Grading' and identifying 'Ideal Clients,' we aim to enhance your firm's adaptive capacity. We will also guide you in developing a strategic 'Client Plan,' which is crucial for aligning your services with client needs and firm goals. Module 5: Time Management Finally, in Module 5, we tackle a cornerstone of professional success: Time Management. This module covers essential strategies like 'Audit' of current practices, 'Transfer' of knowledge and skills, creating 'Default Diaries,' climbing the 'Replacement Ladder,' and harnessing the 'Time Machine' technique. These tools and concepts are designed to help you reclaim control over your time, one of your most valuable resources. As we progress through 'Focus', remember that this workbook is not just a resource but a catalyst for transformative change in your practice. It's designed to provoke thought, inspire action, and instill discipline in managing capacity, clients, and time. We are here to support you every step of the way as you continue to develop into an elite accounting professional. Welcome back, and let's dive into the journey of focused growth and excellence! Pillar 2 -Focus Introduction The 6 Pillars Pillar 2 -Focus Introduction The 14 Step Plan Clarity of Vision1. Unlocking Potential2. Capacity Creation Toolkit3. Client Mix4. Time Management Systems5. Pricing for Profit6. Engaging Incentives7. Team Mix8. Continuous Improvement9. Winning Environment10. The Firm Playbook11. Repeatable Services12. Competitive Strategy13. Virtuous Circle14. Pillar 2 -Focus Introduction Tracking & Progress High-performance businesses are characterised by continuous improvement. Peak performers in a business are also characterised by continuous improvement. Tracking and feedback are common denominators of continuous improvement for businesses and individuals. Businesses and individual peak performers always use tracking and feedback to improve productivity. Tracking progress toward a predetermined goal provides valuable feedback, enabling you to evaluate progress and make any changes required to reach your goals. Precise, systematic measurement of progress helps you to achieve yet more progress. Devising a measuring system also forces you to clarify your goals. Measuring progress may reveal that you need to modify your goals or even that you are working on the wrong goals. Remember, if a goal is worthwhile and is also the right one for you, then there are appropriate ways to measure progress toward it. Tracking progress is the only way to know when you must take steps to get back on course. Tracking is also the only way to know when you have reached your goal. Pillar 2 -Focus Introduction In today's rapidly evolving accounting landscape, the importance of streamlining the compliance production process cannot be overstated. By focusing on efficiency and avoiding the pitfalls of over-engineering, firms can unlock significant capacity, paving the way for increased productivity and enhanced profitability. Streamlining compliance processes not only reduces unnecessary workload and operational bottlenecks but also allows firms to allocate resources more effectively. This approach ensures that compliance activities are managed in the most time and cost-efficient manner, freeing up valuable time and resources. This newfound capacity can then be directed towards more strategic initiatives, innovative client solutions, and business development efforts, ultimately driving higher profits and fostering sustainable growth for the firm. Chapter 1 Streamlining Compliance Streamlining Compliance Ok, so let’s work it out properly Number of hours available / Number of clients (1400 chargeable hours per person x chargeable team) / total no of clients The Average Time Spent per Client per Annum Pillar 2 - Focus Workbook Chapter 1 Streamlining Compliance Why is that? What are the issues/implications? Why is that? What are the issues/implications? Pillar 2 - Focus Workbook Chapter 1 Streamlining Compliance The Average Fee per Client per Annum Potential Revenue (workbook one p36) / No of Clients Capacity Gap Pillar 2 - Focus Workbook Chapter 1 Streamlining Compliance Calculate the Average Time you Should Spend per Client per Annum (see separate spreadsheet) Total Available Hours (1400 chargeable hours per person x chargeable team) Number of clients your team should be handling Number of clients in the firm Capacity Gap Why is that? What are the issues/implications? Pillar 2 - Focus Workbook Chapter 1 Streamlining Compliance Areas for improvement/action points arising 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Pillar 2 - Focus Workbook Chapter 1 Streamlining Compliance This section addresses a critical yet often overlooked aspect of accountancy – the tendency to overengineer working papers. Year after year, as regulatory bodies update their 'best practice' guidelines, accountants find themselves expanding their working papers, adding layers of tests and checks that, whilst thorough, may not always align with client understanding or appreciation of the service. This disconnect is crucial: clients, often unaware of the extensive background work and its implications, may be reluctant to pay for what they perceive as non- essential services. These additional tests, though well-intentioned, can significantly impact efficiency and inflate costs, without necessarily adding proportional value from the client's perspective. This raises fundamental questions: Is adhering strictly to the Accounting Institutes' recommended 'best practice' always necessary, or is meeting the minimum required standards sufficient? In our pursuit of excellence, are we inadvertently distancing our services from client expectations and willingness to pay? This chapter explores this delicate balance, questioning whether every step added to our working papers is truly essential, and challenges us to reconsider what 'best practice' really means in the context of client satisfaction and operational efficiency. Working Papers Chapter2 Working Papers ICAEW Practic Assurance Monitoring - acceptable practice Pillar 2 - Focus Workbook Chapter2 Working Papers ICAEW Practic Assurance Monitoring - acceptable practice Pillar 2 - Focus Workbook Chapter2 Working Papers ICAEW Practic Assurance Monitoring - acceptable practice Pillar 2 - Focus Workbook Chapter2 Working Papers ICAEW Practic Assurance Monitoring - acceptable practice v best practice Pillar 2 - Focus Workbook Chapter2 Working Papers Working Papers Pillar 2 - Focus Workbook Chapter2 Working Papers Step 1 Download your regulatory body’s equivalent of the Practice Assurance Monitoring Acceptable Practice guidelines Step 2 Review your compliance files (including any work programs) to understand the steps and work the firm is undertaking beyond “acceptable practice” Step 4 For each step, determine whether it is still required - either you feel it should still be done, or it can be included in a service level that a client is willing to pay for, or another reason. Step 3 Do your working papers and programs differentiate between different sizes, risks or complexity of clients Step 6 Update your action plan and ensure that any agreed additional work is clearly communicated to both the team and clients Step 5 Consider different services for different levels of work Areas for improvement/action points arising 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Pillar 2 - Focus Workbook Chapter2 Working Papers Chapter 3 Grading & Scope Creep Grading & Scope Creep This section tackles two prevalent accountancy issues that significantly impact service quality and profitability. Records grading is an essential process where client records are assessed and categorized based on their quality and completeness before beginning the work. This step is vital, as accountants often receive records below the expected standard or what was initially agreed upon, especially when submitted at the last minute. By grading these records in advance, accountants can proactively address discrepancies, allowing clients to improve their records to the required level or agree to additional fees for the extra work involved. On the other hand, scope creep, often a result of staff reluctance to engage in uncomfortable conversations with clients, leads to undertaking unplanned work without appropriate billing or even notification to supervisors. This affects the firm’s efficiency and undervalues the service provided. In this section, we explore practical strategies for implementing a robust records grading system and developing communication skills among staff to confidently address scope changes, ensuring transparency and fairness in client engagements. An Accounts Grading System Pillar 2 - Focus Workbook Chapter 3 Grading & Scope Creep An Accounts Pricing System Pillar 2 - Focus Workbook Chapter 3 Grading & Scope Creep If Your Firm Does Bookkeeping For Your Client, What is the Impact on This Work Pillar 2 - Focus Workbook Chapter 3 Grading & Scope Creep Areas for improvement/action points arising 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Areas for improvement/action points arising 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Pillar 2 - Focus Workbook Chapter 3 Grading & Scope Creep In General Scope Creep Pillar 2 - Focus Workbook Chapter 3 Grading & Scope Creep What scope creep happens in your firm? Write your answer here... Scope Creep Pillar 2 - Focus Workbook Chapter 3 Grading & Scope Creep How do you know about it? or How could you find out about it? Write your answer here... How do you stop it? Write your answer here... Scope Creep Pillar 2 - Focus Workbook Chapter 3 Grading & Scope Creep How do you bill it? Write your answer here... Extra Work Order Example Pillar 2 - Focus Workbook Chapter 3 Grading & Scope Creep Areas for improvement/action points arising 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Pillar 2 - Focus Workbook Chapter 3 Grading & Scope Creep In the critical realm of Utilisation, we focus on the strategic alignment of our team's skills and capacities with the needs of our work and clients. Effective utilisation is about more than just ensuring that team members are busy; it's about aligning their unique skills and strengths with the appropriate tasks, thus maximizing efficiency and quality of service. This involves a careful examination of the structure of the team, understanding each member’s expertise and how it can best be leveraged. It also requires a thoughtful allocation of work, ensuring that tasks are not just evenly distributed, but are assigned in a way that optimizes each team member’s potential and contributes to their professional growth. By focusing on optimal utilisation, we aim to create a work environment where team members are engaged in tasks that truly match their capabilities and interests, leading to higher job satisfaction, reduced turnover, and a more productive and profitable practice. This section will delve into strategies for achieving optimal utilisation, ensuring that the right people are working on the right tasks, at the right time, for the right reasons. Chapter 4 Utilisation Utilisation Unlocking Your Team’s Potential Structure Pillar 2 - Focus Workbook What is the Structure of your team? How is the work structured? ie who does what and why? Write your answer here... Chapter 4 Utilisation Optimal Use Pillar 2 - Focus Workbook Is this the best (and most profitable) use of their time? ie could this be improved? Write your answer here... Chapter 4 Utilisation Start/Stop/Keep Pillar 2 - Focus Workbook Which team members should stop doing certain work? Write your answer here... Chapter 4 Utilisation Which team members should start doing certain work? Write your answer here... Which team members should keep doing certain work? Write your answer here... Work Allocation Pillar 2 - Focus Workbook How is work allocated - making sure the right person is doing the right work? Write your answer here... Chapter 4 Utilisation Areas for improvement/action points arising 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Pillar 2 - Focus Workbook Chapter 4 Utilisation Chapter 5 Client Grading Client Grading In the pursuit of building an elite accounting firm, the practice of client grading emerges as a pivotal strategy. Grading your clients involves categorizing them based on various criteria such as revenue potential, alignment with your firm's expertise, compliance complexity, and their overall engagement level. This process is crucial for several reasons. Firstly, it enables the firm to identify and nurture high-value relationships, ensuring that premium services are aligned with clients who provide the most significant growth opportunities. Secondly, it helps in resource allocation, allowing the firm to invest time and expertise where it yields the greatest return. Client grading also aids in risk management by identifying clients who may require more attention due to complex requirements or compliance issues. Importantly, it also helps identify lower-grade or poor clients who may not be the right fit for your firm. These might be clients that are overly demanding relative to their business size, frequently late in payments, or consistently challenging to work with. Identifying such clients is critical as they can disproportionately drain resources and distract from serving higher-value clients effectively. Furthermore, this practice ensures that your firm can maintain a high-quality client portfolio, which is essential for sustaining the reputation and standards of an elite firm. Client Grading Pillar 2 - Focus Workbook By adopting a strategic approach to client management through grading, elite firms can optimize their service delivery, enhance client satisfaction, and drive sustainable growth while ensuring a healthy client ecosystem. Chapter 5 Client Grading How to Grade Your Clients STEP 1: Involve the team It helps them understand not only what makes up a good (or bad) client, it means that they know if a client changes grade and also gives them permission to handle different clients differently. STEP 2: Agree the criteria As a team agree on the criteria that makes up a great client. STEP 3: Grade Use the spreadsheet in the:EliteFirm Resources or the methodology on the following page STEP 4: Plan Develop (and implement) a plan on how to deal with the various grades (see Chapter 8). STEP 5: Revisit Revisit the grading exercise at least once a year Pillar 2 - Focus Workbook Chapter 5 Client Grading Areas for improvement/action points arising 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Pillar 2 - Focus Workbook Chapter 5 Client Grading Chapter 6 Ideal Clients Ideal Clients Establishing and adhering to precise client selection criteria is fundamental to the success of any accounting firm. Understanding and defining the characteristics of your ideal clients is a critical step in this process. This involves more than just considering financial metrics; it’s about identifying those clients whose business needs, values, and expectations align closely with the services and expertise your firm offers. Having clear criteria for selecting clients ensures that your firm invests its resources and efforts in relationships that are mutually beneficial and sustainable. It's about quality over quantity, where the focus is on cultivating deeper, more rewarding engagements rather than spreading resources thinly over a larger number of less-aligned clients. This strategic approach to client selection not only enhances the efficiency and effectiveness of your service delivery but also contributes to a more satisfying work environment for your team. By committing to engage only future clients that match your well-defined criteria, your firm can build a strong, loyal client base, reduce client turnover, and drive consistent growth, laying the groundwork for long-term success and a robust reputation in the marketplace. Client Selection Criteria Will Have the Greatest Impact on Your Firm’s Success Define Your Niche or Specialty determine the areas in which your firm excels. This could be a specific industry (like hospitality, technology, or nonprofits), a type of service (like tax advisory, forensic accounting, or business consulting), or a particular business size or stage or mindset (like startups, established enterprises or high-growth entrepreneurs) Write your answer here... Analyze Your Current Client Base look at your existing clients and identify which ones are the most profitable and satisfying to work with. Consider factors like profitability, payment timeliness, the complexity of their needs, and how well they fit with your firm's expertise Write your answer here... Chapter 6 Ideal Clients Pillar 2 - Focus Workbook Identify Key Characteristics based on your best clients, list the characteristics that make them ideal. This might include their business size, industry, mindset, location, business practices, financial health, and the types of services they need Write your answer here... Understand Their Needs and Challenges gain a deep understanding of the challenges, pain points, and aspirations of these ideal clients. This knowledge will help you tailor your services to meet their specific needs and communicate your value more effectively Write your answer here... Chapter 6 Ideal Clients Pillar 2 - Focus Workbook Set Criteria for Ideal Clients using the information gathered, create a set of criteria for what constitutes an ideal client for your firm. This might include their ability to pay for your services, their openness to advisory services, their business practices, and their alignment with your firm’s values Write your answer here... Chapter 6 Ideal Clients Pillar 2 - Focus Workbook Develop Your Value Proposition tailor or explain how your value proposition addresses the specific needs and pain points of your ideal client. Your services, communication, and marketing should all reflect how you can meet their unique requirements Write your answer here... Chapter 6 Ideal Clients Pillar 2 - Focus Workbook Chapter 6 Ideal Clients Pillar 2 - Focus Workbook By following these steps, you can more effectively identify and attract clients that will be the most beneficial to your practice, leading to a more focused, efficient, and profitable business. Review and Adjust as Needed: Over time, your firm’s strengths and the market environment may change. Regularly review and adjust your definition of the ideal client to ensure it remains relevant and aligned with your firm’s direction. Implement in Marketing and Client Onboarding: Use your ideal client criteria in your marketing efforts to attract the right kind of clients. Additionally, incorporate these criteria into your client onboarding process to ensure new clients are a good fit for your firm. Ideal Clients Use the Client Avatars example in the:EliteFirm Resources to document your work and share with the team Areas for improvement/action points arising 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Pillar 2 - Focus Workbook Chapter 6 Ideal Clients Chapter7 Adaptive Capacity Adaptive capacity in accounting firms is a concept that extends far beyond mere workload management; it's fundamentally about optimally allocating the firm's resources to maximize value and profitability. Firms have a theoretical maximum capacity, which is the total number of clients they can serve effectively, and an optimal capacity, typically between 70 and 90 percent of this maximum. This optimal point ensures clients are served adequately without compromising service quality. A crucial aspect of adaptive capacity is the discerning allocation of resources to different customer segments. Much like airlines allocate seats to various classes without adding extra capacity, accounting firms must strategically serve clients without reallocating resources from higher-value segments to lower-value ones. This approach is especially pertinent during peak seasons when the temptation to operate at maximum capacity can lead to missed opportunities with high-value clients. Firms often fall into the trap of lowering prices to attract work and fill capacity, especially during off-peak periods, not realizing that this time could be more profitably spent servicing higher-value clients. Such misallocation not only diminishes potential profits but can also signal a willingness to engage in price competition, potentially devaluing the firm's overall market perception. Understanding and managing adaptive capacity, therefore, is about striking the right balance between optimal service delivery and value maximization, ensuring that capacity is not just filled, but filled with the right kind of work. Adaptive Capacity Chapter7 Adaptive Capacity Pillar 2 - Focus Workbook Ideal Mix Write your notes here... Chapter7 Adaptive Capacity Pillar 2 - Focus Workbook What Does it Look Like Now? Chapter7 Adaptive Capacity Pillar 2 - Focus Workbook What Should it Look Like? Write your notes here... Chapter7 Adaptive Capacity Pillar 2 - Focus Workbook What Do You Need to Do? Write your notes here... Areas for improvement/action points arising 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Pillar 2 - Focus Workbook Chapter7 Adaptive Capacity Chapter 8 Client Plans Client Plans Now that we have meticulously graded our clients, pinpointed our ideal client profile, and comprehensively understood adaptive capacity, it's time to embark on the next crucial phase: strategic planning for each client category. This involves developing a tailored service plan for our A, B, C, D, and E clients, outlining the specific services we will offer that align with their needs and our firm's capabilities. Additionally, a meeting plan is essential, determining the frequency and depth of our interactions with each grade of client, ensuring regular touchpoints for higher-grade clients while managing resource allocation efficiently. An integral part of this process is the upgrade plan, where we identify potential clients who could benefit from and are likely to be receptive to enhanced services, fostering growth opportunities within our existing client base. Equally important is the 'Find Happiness Elsewhere' (FHE) plan, a thoughtful approach to identifying clients who may be better served by another accountant, ensuring that both the client and our firm are optimally aligned with partners that best suit their needs and values. This comprehensive planning is not just an exercise in client management; it's a strategic move towards refining our practice, enhancing client satisfaction, and driving the growth and success of our firm. “By failing to prepare, you are preparing to fail” B Franklin Service Plan Write your notes here... Chapter 8 Client Plans Pillar 2 - Focus Workbook Meeting Plan Write your notes here... Chapter 8 Client Plans Pillar 2 - Focus Workbook Upgrade Plan Write your notes here... Chapter 8 Client Plans Pillar 2 - Focus Workbook FHE Plan Write your notes here... Chapter 8 Client Plans Pillar 2 - Focus Workbook Areas for improvement/action points arising 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Pillar 2 - Focus Workbook Chapter 8 Client Plans Chapter 9 Time Audit Time Audit The pivotal role of time management in the accounting profession cannot be overstated. For many firms, the perpetual challenge of 'lack of time' often stems from a misalignment in three critical areas: having the wrong clients, an ill-fitted team, or engagement in non-essential tasks – sometimes a combination of these elements. The first and fundamental step in addressing this challenge is conducting a thorough audit of where and how time is currently being spent within your firm. This audit is not just about tracking hours; it's a deep dive into understanding the allocation of your most valuable resource – time. It helps in identifying inefficiencies, pinpointing areas where time is not producing value, and revealing opportunities for realignment. By meticulously evaluating your current time management practices, you set the stage for transformative changes, paving the way for a more focused, efficient, and ultimately more successful accounting practice. “Focus is not about what you choose to do, it’s about what you decide to ignore” Pillar 2 - Focus Workbook Chapter 9 Time Audit Time Audit Go to the Time Audit in the:EliteFirm Resources and complete for 2 weeks (10 working days). This audit is based on the urgent/important matrix made famous by Stephen Covey. This may sound like a long time, but if it does, just do this task for a week or a day. However, sticking to the two weeks will give you more insight and results. Once you have done it for one day you will be intrigued to see how the next day compares and will want to review the whole week. Also, two weeks will typically include the core of the tasks you complete. To be certain, you can review your analysis of the time you spent in the two weeks and list any missing tasks that you complete on a regular basis completing the same analysis. As an alternative, you can complete the audit and matrix in Dan Martell’s Buy Back Your Time. Write your notes here... Pillar 2 - Focus Workbook Chapter 9 Time Audit PUTTING AFFIRMATION AND VISUALISATION INTO PRACTICE Affirmation and visualisation are two tools for improving personal productivity. They transform your thinking, your attitudes, and finally, your behaviour. Their impact on attitudes and behaviour helps to produce the results you desire. Affirmation has been given many names - self-motivation, self-commands, auto-suggestion, or self- talk. An affirmation is simply a positive declaration of something you believe to be true or something you expect to become true and desire to live by. The most effective affirmations are those you compose yourself; they are based on your goals and describe the person you want to be, what you want to do, and what you want to possess. Repeating such affirmations builds the needed internal confidence and determination to overcome obstacles, accomplish goals, and improve productivity. Use affirmations as positive material for your mind to act upon in building constructive attitudes. For example, if you want to gain greater control over your emotions, remind yourself daily, "I control my emotions and reactions at all times. No matter what other people say, think, or do, and no matter what circumstances arise, I remain calm and in control." Another example of communication could be this, "I enjoy knowing the people in my workgroup as individuals. I listen when they talk and understand both their words and their feelings. I respect them and their right to be themselves.” The mind is like a highly efficient computer. It controls emotions, attitudes, and actions according to the information it has been given to work with. If you feed your mind negative ideas, it can only respond negatively. But when you give it constructive, confident directives, it responds with positive motivation for productive action. A second useful technique for focusing your creative power on your goals is the practice of visualisation - the force that transforms your dreams into reality. Visualisation is the act of mentally picturing ideas, events, circumstances, and concrete objects. Visualisation is important in goal setting because it enhances your ability to achieve. Pillar 2 - Focus Workbook Chapter 9 Time Audit PUTTING AFFIRMATION AND VISUALISATION INTO PRACTICE Successful, high achievers exercise visualisation in every profession. The visualiser clearly and distinctly "sees" the results that will come from the persistent pursuit of goals. When you see a vivid picture of yourself in possession of your goals, the picture stimulates desire, sparks creativity in planning action steps, and fuels motivation to take action. In most situations, vision gives more accurate knowledge than any other sense. This truth is reflected in the fact that we customarily think in pictures; in other words, we visualise. An inventor visualises when mentally picturing a new device to accomplish a specific job. An advertising executive visualises when planning a graphic layout to present the unique quality of a product or service. An artist visualises by mentally forming the completed picture before the brush ever touches the canvas. A salesperson helps the prospect visualise by painting word pictures of the benefits a product or service provides. By conscious practice, you can refine your visualisation skill and turn it into a forceful habit that improves your personal productivity. You can practice the creative ability to visualise and support your visualisation with concrete action. Once you begin to use visualisation regularly and according to a plan, you will find it one of the most helpful tools you have ever used for harnessing the power of your imagination. Visualisation affects every part of the goal-setting process. 1. Visualisation focuses your attention on your goals. You achieve a goal only when you know exactly what it is you want. Visualisation is the tool that brings a goal into sharp focus so you take only actions that move you in the right direction. 2. Visualisation increases desire. When, through visualisation, you experience how it feels to achieve your goals, the desire grows by leaps and bounds. Without desire, there is no life or excitement in your goals program. Enthusiastic desire sustains motivation throughout the entire process of setting and achieving goals. Pillar 2 - Focus Workbook Chapter 9 Time Audit PUTTING AFFIRMATION AND VISUALISATION INTO PRACTICE 3. Visualisation intensifies beliefs and commitments. The saying, "Seeing is believing," has more than just a grain of truth. When you visualise yourself possessing a goal, you believe in your ability to achieve it. You know what it looks like, how it feels, and what you must gain in the way of knowledge and skill to possess it. 4. Visualisation sharpens concentration. Because visualisation shows you the exact path to your destination, you are not distracted by outside circumstances or the urging of others to leave your chosen path. You move directly to your chosen goal. 5. Visualisation relieves stress. Anxiety and stress creep in when doubt, uncertainty, and fear are associated with the future. Visualisation prevents and relieves stress by providing believable information about the future. 6. Visualisation fuels motivation. Visualisation generates intense interest and a sense of urgency that keeps motivation at a white- hot heat. Procrastination, inertia, and indecision disappear. You are energised and eager to keep moving toward accomplishing your goals. "Take charge of your life. You can do with it what you will." said the Greek philosopher Plato. These words are still true today. You can do whatever you want with your life when you make the most of every minute. You can take responsibility for your productivity by managing your time more effectively. You will be astonished at the results! Pillar 2 - Focus Workbook Chapter 9 Time Audit Saying No Learning to say "No," frees you to say "Yes," to the important projects or activities that give you genuine satisfaction. If all sorts of miscellaneous requests are making severe inroads on your time and you find it difficult to say "No," the relief you need originates in your program of goals and priorities. When you identify goals in all areas of business (and life) and establish clear priorities for reaching them, you have criteria for evaluating every request made of your time. You may need to evaluate your attitude toward saying "No." Some individuals are "people pleasers"; they fear rejection by others if they say, "No." Some people fear they will not be asked again if they say "No" this one time. Some people fear not "being needed." Put these fears to rest. Your goals and priorities help you identify the requests and activities requiring a polite "No" and the ones deserving an enthusiastic "Yes." Learn to use the word "No" to protect your time and energy; you maximise your productivity and effectiveness as you strive to achieve balance in all areas of life. Areas for improvement/action points arising 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Pillar 2 - Focus Workbook Chapter 9 Time Audit Chapter 10 Client Plans Transfer Based on the principles of Audit, Transfer and Fill by Dan Martell, we will now look at how you can strategically reallocate your efforts and resources to optimize efficiency and effectiveness within your firm. Start by prioritizing tasks based on their importance and impact and alignment with your firm’s goals. Delegation then plays a key role; identify tasks that can be handled by other team members, freeing up your time for more high-value activities. Outsourcing is another powerful tool – consider external partners for necessary functions that can be easily systemised. With that in mind, simplifying and systemizing processes wherever possible will streamline workflow, reducing time spent on repetitive tasks. Lastly, don’t shy away from eliminating tasks that you shouldn’t be doing or no longer serve your firm’s objectives. This conscious shift in how time is utilized – moving from lower-value to higher- value activities – is a transformative process, empowering you to focus more on what truly drives growth and success for your firm The Urgent/Important matrix made famous by Stephen Covey helps you to work out what tasks you should be working on based on whether they are urgent or not and important or not. Urgent means that your attention is required immediately. Important means that it is essential to get you to where you want to go. Quadrant one means it’s important and urgent. An example is a problem, fire-fighting or a deadline. These tasks cannot be left otherwise your business will fall down. You should do these things now. Quadrant two means it’s important but not urgent. An example is goal planning or exercise. These tasks need to be done to accomplish your goals. You should plan time to do these. Quadrant three means not important but urgent. An example is an interruption by certain emails, phone calls or attending certain meetings. These tasks tend to be urgent for other people and they want these tasks to be urgent for you as well. You should find a better way of doing these tasks or stop them before they happen by automating, delegating, simplifying, systemising or eliminating. Quadrant four means not important and not urgent. An example is moving paper around, checking Facebook or chatting around the water cooler. These tasks tend to just kill time but in some circumstances can be used as a reward for working on quadrant two tasks. You should exclude these altogether from your working day. The key to getting the right things done (quadrant two) is to schedule them and then do them first before anything else. Sometimes quadrant two items will become urgent but they tend to be not urgent and that is why this matrix is a powerful tool because you can identify the tasks you should be working on to get to your ideal future even though there is no real sign of urgency to do so. Pillar 2 - Focus Workbook Chapter 10 Transfer Prioritise Pillar 2 - Focus Workbook Chapter 10 Transfer Delegate Delegation is a great way to claw back time but it has to be done correctly. It’s delegation not abdication. To do delegation right, there are four levels: 1. Wait and don’t do anything until told by you, 2. Ask for your permission then act, 3. Act and get your approval as work is being done, 4. Act and let you know about the task once it is complete. You can choose the most appropriate level of delegation depending on the team member and the task but you will want to gradually move to a higher level where possible. The movement will come from learning from mistakes or learning and support from you or others within your business. Only tasks that could have catastrophic impact on your business should be kept at a lower level of delegation to allow you or another manager to fix things, if required, before it is too late. As long as the results of their work and the time taken to get the results is good and the team follow the systems then that is fine, it doesn’t have to be perfect. When using Clarity, you can trust even your junior team members to be able to follow the numbers led process within the app so you can delegate at level 4 for the team going through your whole client base and seeing the top 10% of clients that will improve their business the most. And when the junior team members are speaking with their clients you can start at level 3 if you’re a little unsure, otherwise straight in at level 4. On low level pieces of work you can let your team deal with the problems themselves and let you or their manager know what they did after the work was completed. You want to empower your team to make decisions for themselves and create a safe environment so that if they do make a mistake it is easily dealt with and that your business is a hotbed for learning from their mistakes. Trust your team to do what is required of them and do what is right for the business. If mistakes are made they will be able to learn from it and update any systems that need updating. Pillar 2 - Focus Workbook Chapter 10 Transfer Your Replacement Rate So, What Should You Now Transfer? Write your notes here... Revenue (you are responsible for) / 1400 or Your Ideal Income / 1400 Pillar 2 - Focus Workbook Chapter 10 Transfer 1-3-1 What is the one (main) problem? Systemise/Simplify See Workbook 5 - The Firm Playbook section 1 3 1 What three solutions do you think might work? What is the best solution in your opinion (and why)? Outsource Write your notes here... Areas for improvement/action points arising 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Pillar 2 - Focus Workbook Chapter 10 Transfer Chapter 11 Replacement Ladder Replacement Ladder Hire Feeling Ownership Executive Leadership Team (creates) Flow Strategy, Leadership and Outcomes Sales (conversion) (leads to) Freedom Sales calls, meetings and follow up Marketing (creating demand) Friction (to growth) Campaigns, funnels and traffic - leads and opportunities Delivery (compliance first added value second) Stalled Onboarding and customer success Admin Stuck Inbox and calendar Chapter 11 Replacement Ladder Hire Feeling Ownership What’s Your First Replacement Ladder Areas for improvement/action points arising 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Pillar 2 - Focus Workbook Chapter 11 replacement Ladder Chapter 12 Default Diaries Default Diaries Go to the:EliteFirm Resources Pillar 2 - Focus Workbook 90 Minutes Chapter 12 Default Diaries Block out specific times to reserve for your 90 minutes. Book these in your calendar. Give instructions about how callers are to be handled and what constitutes an emergency worth an interruption ie THERE ARE NONE. Then follow your plan. An occasional true emergency may alter your schedule. But unless you reserve it and protect it, the time you need for planning will never automatically become available. You do not find time; you schedule it. As difficult as it sometimes appears to schedule time for your 90 minutes, a more serious, underlying problem is overcoming the attitudes that frequently stand in the way of reserving time for important work that isn’t urgent. We are prone to feel uncomfortable unless we are physically "doing" something. We may fear that we are somehow lazy or ineffective unless we are shuffling papers, manipulating objects, or talking about work with other people. We are concerned that someone will catch us sitting apparently idle and conclude that we are "not getting anything done" and have nothing productive to offer the firm. These attitudes are difficult to overcome because they are ingrained by many years of conditioning. But attitudes are merely habits resulting from making repeated choices. You can establish new attitudes and acquire new habits of thought and action by deliberately making new choices, developing a plan for acting upon those choices, and taking action on that plan - enthusiastically and persistently. If you experience repeated interruptions in the middle of the time you reserve for your 90 minutes, it will help to consider the time cost of interruptions. An interruption would not be too detrimental if the only cost attached to the interruption were the cost of the actual time required to answer the question or provide the instruction or information requested. But this amount of time is actually a very small portion of the time consumed by the interruption. In addition to the social exchange at both beginning and end of the interruption, you are faced with the necessity for refocusing concentration on the work you were performing when interrupted. When repeatedly interrupted for two-minute answers to questions, the loss of valuable time quickly erodes productivity. Do whatever it takes to diplomatically reduce the number of interruptions threatening your 90 minutes. Pillar 2 - Focus Workbook Notes Write your notes here... Chapter 12 Default Diaries Areas for improvement/action points arising 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Pillar 2 - Focus Workbook Chapter 12 Default Diaries Chapter 13 Time Machine Time Machine Go to the:EliteFirm Resources Pillar 2 - Focus Workbook Notes Write your notes here... Chapter 13 Time Machine Areas for improvement/action points arising 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Pillar 2 - Focus Workbook Chapter 13 Time Machine Conclusion As we draw the curtains on Workbook 2 of 'The Elite Firm: Mastery in Modern Accounting', we reflect on the vital journey we have undertaken together in the realm of Focus. In this crucial segment, we have navigated through the intricacies of Capacity Creation, Client Mix, and Time Management, each a critical facet in the mosaic of Focus. The Art of Strategic Concentration Through our exploration in Module 3, you have gained insights into optimizing workflows, addressing compliance efficiency, and managing scope creep. This knowledge is pivotal in creating capacity, allowing you to direct your energies more effectively. Module 4 took us through the dynamics of Client Mix, guiding you to identify and nurture ideal client relationships and develop adaptive strategies for client engagement. This focus on the right mix of clients is instrumental in aligning your firm's services with its core values and strategic goals. Mastering Your Time In Module 5, the spotlight was on Time Management, a cornerstone for any professional striving for excellence. The strategies and tools discussed, from conducting thorough audits to the implementation of default diaries, are designed to empower you to take command of your time. This mastery over time is not just about efficiency; it's about creating space for innovation, growth, and the pursuit of higher goals. Harnessing the Power of Focus Pillar 2 - Focus The End Conclusion Looking Ahead As you step forward from here, remember that Focus is not a one-time task but a continuous practice. It requires diligence, commitment, and the willingness to make tough choices for the greater good of your firm. The skills and insights you have acquired in this workbook are tools to sharpen your focus, enabling you to cut through the noise and distractions of everyday demands. Embrace this journey of Focus with the knowledge that it is a powerful catalyst for change. It will shape not just how you work, but how you think, plan, and lead. As you continue to apply these principles, you will witness a transformation in your practice and yourself, moving ever closer to the pinnacle of accounting excellence. We look forward to seeing the remarkable strides you will make as you continue to harness the power of Focus in your professional journey. Pillar 2 - Focus The End