the:EliteFirm mastery in modern accounting Pillar 3 STRUCTURE workbook 1. The 10 Commandments of Pricing 2. Cost +/Fixed/Value pricing 3. Menu of Prices 4. Plans (Proposals) M O D U L E 6 - P R I C I N G S T R U C T U R E 5. How to create systems 6. Service Maps 7. Workflow management Contents M O D U L E 7 - F I R M S Y S T E M S 8. Pro-forma Agendas 9. The Coaching Habit 10. Meeting Rhythms M O D U L E 8 - T E A M S Y S T E M S Welcome /iˈliːt/ belonging to the most powerful, best-educated, wealthiest or best-trained group in a society ie the best of the best The six workshop dates: Sofitel, London Heathrow 29 Nov 23 Clarity 30 Nov 23 Focus & Capacity 28 Feb 24 Structure 24 Apr 24 Skills 26 Jun 24 Resources 25 Sep 24 Planning Welcome back to the transformative journey of 'the:EliteFirm: Mastery in Modern Accounting.' As we turn the page to Workbook 3, 'Structure,' we stand at the cusp of harnessing the full potential of your firm's operational backbone. This critical stage is where concepts crystallize into concrete systems, and strategic pricing becomes your firm's pulse. Module 6: Pricing Structure In Module 6, we'll dissect the '10 Commandments of Pricing,' a golden rulebook to ensure your firm captures the value it truly deserves. We'll navigate the nuanced spectrum of Cost +, Fixed, and Value pricing models, each with its strategic merits. Here, we introduce the 'Menu of Prices,' transforming the abstract into the tangible, and delving into crafting 'Plans (proposals)’' that speak the language of value, not just numbers. Pillar 3 -Structure Introduction Module 7: Firm Systems Our journey then advances into the realm of 'Systemization' in Module 7, where we'll equip you with the blueprint to construct robust systems. From 'How to Create Systems' that enhance efficiency to designing 'Service Maps' that guide your service delivery, we'll cover the A to Z of structuring your operations for seamless execution. 'Workflow Management' takes center stage, ensuring that your firm's day-to-day activities align perfectly with your strategic objectives. Module 8: Team Systems As we further our exploration, Module 8 focuses on 'TEAM Systems,' the lifeblood of your firm's structure. We'll craft 'Pro-forma Agendas' to drive meeting efficiency and explore 'The Coaching Habit' to empower your team's continuous development. The rhythm of regular, impactful 'Meetings' will be the drumbeat to which your firm marches towards its goals. Embrace this deep dive into 'Structure,' where each element is carefully curated to reinforce the foundations and streamline the superstructure of your practice. This is where your firm's story unfolds, chapter by chapter, into an epic narrative of success and sustainability. Let's build not just for today, but for a future where your firm stands as a beacon of excellence in modern accounting. Welcome back, let the construction of greatness begin! Pillar 3 -Structure Introduction The 6 Pillars Pillar 3 -Structure 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 3 -Structure Introduction Pricing for Profit Pricing—the mere word can stir a mix of emotion and trepidation within an accounting firm. Yet, it stands as one of the most pivotal components of your business strategy. This module is dedicated to helping transform your pricing from sporadic guesswork to strategic mastery. Within this section lies the distillation of the '10 Commandments of Pricing'—a beacon for accountants navigating the complex waters of cost-plus, fixed, and value pricing models. You'll unravel how each commandment is not just a guideline but a strategic shift toward recognizing and capturing the true worth of your services. Cost-plus pricing, the traditional bedrock of accounting firms, calculates a markup on the cost of services provided. It's straightforward but often neglects the intangible assets you bring to the table—expertise, experience, and the trust you've cultivated. Fixed pricing provides clarity and consistency to your clients, setting a predetermined fee for specific services. It's the simplicity clients love, but it can sometimes leave money on the table if the perceived value exceeds the fixed cost. Then comes value pricing, a model that aligns fees with the value perceived by the client, not just the cost incurred. It's a paradigm shift—a move towards a pricing strategy that celebrates and monetizes the unique impact your work has on a client's business. Pillar 3 -Structure Introduction But how do you articulate this value? How do you ensure the price mirrors the benefit in your client's eyes? This is where the art of pricing comes alive. It's about weaving the narrative that your numbers aren't just figures in a ledger; they are the storytellers of a business's journey, the guardians of a client's dream. As you progress through this chapter, you'll be equipped with the understanding to make pricing a powerful tool rather than a mere necessity, being fairly compensated for your worth whilst ensuring clients feel the investment in your services is a stepping stone to their success. By the end of this chapter, you won't just set prices; you'll strategize them. You'll move away from the one-size-fits-all approach, unleashing the storyteller within to showcase the epic accounts of value that your firm can offer. Welcome to the new era of pricing in your Elite Firm. Pricing for Profit Pillar 3 -Structure Introduction The 10 Commandments of Pricing 1. Being paid what you're worth is an honorable thing Anyone can price and get clients (or customers) to buy at a deep discount. As an accountant, your superpower is with numbers, understanding them, and how to improve them. Recognize your own value. You deserve to earn your true worth. Emphasize the value of your expertise and services, ensuring your pricing reflects the quality and outcome you deliver to clients. 2. You are absolutely the worst person to sell to you We all suffer from imposter syndrome. Recognize that self-promotion can be challenging. More importantly, understand that self-doubt can hinder your ability to price services appropriately; trust in your value. If someone else were selling you or your firm, what strengths and talents would they highlight? 3. Review your prices at least quarterly When was the last time you reviewed your pricing? It is vital to stay responsive to market changes and cost fluctuations by regularly assessing and adjusting your pricing structure. It’s the same for your clients too. 4. Now is the very best time to increase your prices If you’re like most of the accountants we know, you haven’t increased your prices in forever! Don’t delay price adjustments; if your value proposition justifies it, the right time is now. 5. We have more issues with our prices than our clients ever do Recognize that price anxiety often stems from internal perceptions rather than client concerns. Overcome those internal hesitations about pricing by confidently communicating the value of your services. Using a tool such as Clarity makes demonstrating and communicating the value easy. 6. Bad clients drive great clients out Avoid undervaluing services by not allowing lower-paying clients to set the standard, thereby ensuring capacity for higher-value engagements. Grading your clients regularly (annually, at least) is an important task with the team. Check out the free Clarity Client Grading Matrix to help. Chapter 1 The 10 Commandments of Pricing 7. Price is always independent of cost The cost of creating a basic Rolex is not that much different from a comparable Seiko. Yet the price is vastly different. Why? What impact does this have on your own prices? It obviously depends on your strategy. But whether you are a low-cost leader or a value- added champion, try and set prices based on the perceived value to the client rather than just the cost of service delivery. 8. The client decides on the value that we create Understand that clients' perception of value will ultimately guide their willingness to pay. Engage clients in discussions about value to ensure pricing aligns with their perceived benefits 9. How you articulate the price is what’s really important Positioning is important. And how your pricing compares is too. Communicate pricing with confidence and clarity to convey value effectively. Use Clarity to help you show and express the values of your business advisory services with ease. 10. Always, always, always validate, validate, validate! As accountants, we are great problem solvers. However, we are infamous for making assumptions in our own firms. We strongly believe in our EliteFirm programs, that no opinion can be legitimately held or expressed without validation. Pricing is no different. Think about marketing teams that are constantly A/B testing. Continuously seek feedback to ensure your pricing aligns with the perceived value and client satisfaction. The 10 Commandments of Pricing Chapter 1 The 10 Commandments of Pricing Pillar 3- Structure Workbook Areas for improvement/action points arising 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Pillar 3- Structure Workbook Chapter 1 The 10 Commandments of Pricing Critical analysis of your pricing Chapter 1 The 10 Commandments of Pricing Pillar 3- Structure Workbook How did you create/come up with your pricing? How does it compare to your competitors/client expectations/your ideal? Write your answer here... What works well? ie what should you keep doing Write your answer here... Critical analysis of your pricing Chapter 1 The 10 Commandments of Pricing Pillar 3- Structure Workbook What works badly? ie what should you stop doing Write your answer here... What could you do better? ie what should you start doing? Write your answer here... Critical analysis of your pricing Chapter 1 The 10 Commandments of Pricing Pillar 3- Structure Workbook Any other comments Write your answer here... Areas for improvement/action points arising 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Pillar 3- Structure Workbook Chapter 1 The 10 Commandments of Pricing IIn the realm of accounting, pricing strategy is more than just a sticker on a service; it's a reflection of how a firm values its work and how it communicates that value to clients. Understanding the nuances of different pricing models is critical for any accounting firm looking to optimize its services. Cost-Plus Pricing Cost-plus pricing is the most traditional model, where services are priced based on the cost of delivering the service plus a markup for profit. It’s straightforward and ensures all costs are covered, but it often fails to consider the value perceived by clients. While it’s easy to calculate and justify, it may not always align with the current market rates or client expectations. Pros: Simple to calculate, ensures costs are covered. Cons: May not reflect market value or client's perceived value. Considerations: Cost calculations must be accurate; the markup must be reasonable. And write-offs should be kept to a minimum. See the charge-out rate calculator. Challenges: Can lead to undervaluing services, not competitive if costs are high. Chapter 2 Cost+/Fixed/Value Pricing Main pricing methods Fixed Pricing With fixed pricing, clients pay a set amount for a defined service, providing transparency and simplicity. It’s easier for clients to budget and for firms to predict revenue. However, this model can limit profitability if additional work is required and the firm can’t charge for it. Pros: Predictability in revenue, client clarity on costs. Cons: Potential for scope creep, which can limit profitability. Considerations: Clearly define the scope of work; consider clauses for additional work. Challenges: Managing client expectations and ensuring the scope is adhered to. Value Pricing Value pricing shifts the focus from cost to the client's perceived value of the service, allowing firms to charge based on the benefit provided. This model aligns fees with the outcomes and success delivered, potentially leading to higher profitability. It requires a deep understanding of the client's business and the ability to communicate the value effectively. Pros: Aligns price with client value, higher profit potential. Cons: More complex to determine, requires excellent communication. Considerations: Must understand client needs deeply and involve the client in the pricing discussion. Challenges: Justifying the price to clients requires confidence in value delivery. Each pricing model presents its own set of considerations and challenges, and the choice often depends on the firm's service offering, market positioning, and client base. Successful implementation requires a keen understanding of both costs and client expectations and a willingness to adapt as the firm grows and the market evolves. Chapter 2 Cost+/Fixed/Value Pricing The Main Methods of Pricing Chapter 2 Cost+/Fixed/Value Pricing Pricing Map Pillar 3- Structure Workbook Service Areas Cost+/Fixed/Value A/B/C Pricing exercise Pillar 3- Structure Workbook A - what is your minimum price? Write your answer here... B - what is your ideal price? Write your answer here... Chapter 2 Cost+/Fixed/Value Pricing C - what are you prepared to accept? Write your answer here... Areas for improvement/action points arising 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Chapter 2 Cost+/Fixed/Value Pricing Pillar 3- Structure Workbook In the competitive landscape of accounting services, creating a 'Menu of Prices' is a strategic move that aligns with modern clients' expectations. This chapter will explore the concept of a menu of prices, integrating cost-plus, fixed, and value pricing models to offer clients transparent and flexible options. A well-crafted menu not only empowers clients to make informed decisions but also showcases your firm's range of services and the corresponding value. We'll delve into the benefits of this approach, how to effectively communicate your pricing to clients, and the importance of adaptability as market demands and your service capabilities evolve over time. This dynamic tool can become a cornerstone of your firm's pricing strategy, enhancing client relationships and driving revenue growth. Chapter 3 Menu of Prices Menu of Prices The benefits of a Menu of Prices Pillar 3- Structure Workbook Chapter 3 Menu of Prices Transparency: Clients appreciate knowing the costs upfront, which builds trust and simplifies decision-making. Flexibility: Clients can choose services that fit their budget and needs, enhancing satisfaction. Upselling Opportunity: Presenting options encourages clients to consider higher-value services they might not have initially sought. Efficiency: Streamlines the proposal and negotiation process, saving time for both clients and the firm. Value Perception: Helps clients understand the range and depth of services offered, along with their value. Scalability: Makes it easier to adjust pricing as the firm grows or as market conditions change. Customization: Allows firms to tailor offerings to different market segments or client types. How to communicate effectively Clarity: Clearly define each service offered, avoiding industry jargon to ensure clients understand the value provided. Options: Present various service tiers, giving clients the freedom to choose based on their needs and budget. Consultation: Offer consultations to guide clients through the menu, helping them make informed choices. Flexibility: Explain how services can be tailored or combined, emphasizing the firm's adaptability to client needs. Value Proposition: Articulate the benefits and outcomes of each service, linking them to the client’s business goals. Updates: Keep the menu updated with new services or pricing adjustments, communicating changes proactively. Accessibility: Make the menu readily available through multiple channels, such as the firm's website or during client meetings. By focusing on these communication strategies, firms can ensure that their 'Menu of Prices' is an effective tool for business development. A word about adaptability Pillar 3- Structure Workbook Chapter 3 Menu of Prices Adaptability in a 'Menu of Prices' is crucial as it allows accounting firms to remain competitive and responsive to changing market demands and evolving service capabilities. It ensures that the firm can quickly adjust its offerings and pricing to reflect new trends, technologies, and client expectations, maintaining relevance and value in a dynamic business environment. This flexibility also supports the firm's growth, enabling the introduction of new services or the refinement of existing ones to meet emerging needs. A example to work through An example of a Menu of Services based on prices from 2017 is set out on the following pages. Let’s work through the example and consider the impact on your firm, i.e., layout, information, and sales approach, and indeed, compare the prices. How do your prices compare? What action plan points do you need to record? How does your pricing compare? Chapter 3 Menu of Pricing Pillar 3- Structure Workbook Any other comments Write your answer here... Areas for improvement/action points arising 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Pillar 3- Structure Workbook Chapter 3 Menu of Prices Crafting compelling proposals, or as we prefer to call them, "(Implementation) Plans," is pivotal in articulating the value you bring to your clients. “Plans” are more aligned with the strategic narrative we've developed through the Donald Miller BrandScript. And it's not just about the software you use; it's about how you use it to communicate and educate clients on the tangible benefits of your services. Remember, the software is part of the process and not the process. The right presentation is key, and your choice of software should enhance this, making your plans clear, concise, and compelling. Simplifying options rather than overwhelming clients with tiers (eg Bronze, Silver, Gold) can often lead to clearer decisions and a more straightforward path for clients to say "yes" to your recommended solutions. Plan (proposals) Chapter4 Plans Plans or Proposals? Pillar 3- Structure Workbook What do you call you current “quotes”? What do you think works better? Write your answer here... Chapter4 Plans We believe that referring to proposals as 'plans' shifts the perspective from a transactional agreement to a strategic partnership. It emphasizes a collaborative approach to achieving the client's goals, suggesting a roadmap rather than a mere offer of services. This terminology aligns with a proactive, solution-focused mindset, making it more appealing and understandable from the client's viewpoint. It suggests action and progress, resonating well with the forward-thinking ethos of modern businesses. Tiered offers or suggested solution? Pillar 3- Structure Workbook Do you offer tiered solutions (ie 3* 4* 5* or Bronze, Silver and Gold)? Or do you offer one suggested solution? Why? Write your answer here... Chapter4 Plans Do you use proposal software? Pillar 3- Structure Workbook Do you use proposal software? Does it fit in with your plans or the other way around? How do you present your plans? How easy do you make it for the clients to say yes? Write your answer here... Chapter4 Plans How do you present your plans and when? Pillar 3- Structure Workbook How does your pricing/quoting process work from start to finish - map it out. How can you improve each step? Write your answer here... Chapter4 Plans Areas for improvement/action points arising 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Chapter4 Plans Pillar 3- Structure Workbook Chapter 5 Systemization Systemization Systemization within an accounting firm is the cornerstone of operational excellence. It's about creating a structured approach to every aspect of your business (from client onboarding to service delivery), ensuring consistency, reducing errors, and enhancing productivity. This section delves into why systemization is crucial, highlighting its role in enhancing productivity, ensuring quality control, and facilitating scalability. This structured approach allows for scalable growth, as tasks become predictable and manageable. Systemization also empowers teams, providing clear guidelines and expectations, which in turn improves job satisfaction and client service quality. By embedding systemization into the firm's culture, accountants can focus more on strategic advisory roles, adding greater value to client relationships and driving firm success. How to create systems Here are six simple steps to create systems for your business. TL;DR, then go to the next section, where I’ve copied a LinkedIn post I recently wrote, and we talk about a tip from Dan Martell. Step 1 - Identify areas that need a system The first step puts a lot of firm (and business) owners off creating systems as it requires time, focus, and thought. However, once this first step has been taken, you will begin to see how you are able to streamline your firm whilst empowering your team to step up and start to take on more responsibility. Go through every aspect of your firm (from operational areas to sales, marketing, admin, onboarding, and client relations) and map out whether there are appropriate systems in place. When listing out your systems for the various areas of your business, give each a score based on how complete the system is at this time. Chapter 5 Systemization Pillar 3- Structure Workbook Step 2 - Prioritize Now that you have your list, you may find it overwhelming to know which aspect of your firm to systemize first. Start by thinking about the work you have already done. What is your top goal? What is the biggest challenge in your firm right now? Is revenue per employee too low? Is there massive scope creep, or are you over- engineering the compliance function? It’s likely that your operational systems are the areas that need your attention first and foremost. Prioritize your systems in order of impact on the firm. Systems audit Chapter 5 Systemization Pillar 3- Structure Workbook Area of firm In place Score Priority eg Meet & Greet, Accounts production, Onboarding, Letters, Meetings etc eg yes / no 1-10 1-5 Systems audit Chapter 5 Systemization Pillar 3- Structure Workbook Area of firm In place Score Priority eg Meet & Greet, Accounts production, Onboarding, Letters, Meetings etc eg yes / no 1-10 1-5 Systems audit Chapter 5 Systemization Pillar 3- Structure Workbook Area of firm In place Score Priority eg Meet & Greet, Accounts production, Onboarding, Letters, Meetings etc eg yes / no 1-10 1-5 Step 3 - Break it down and document it In simple terms, document the current process: record how these tasks are currently completed. Analyze for inefficiencies: look for bottlenecks or areas that can be improved. And finally, design the system: create a standardized procedure for these tasks. It’s important to start with the end in mind. Think about the output. What are you looking to achieve? What impact will it make? Consider what you already have in place and the tools that you currently use to establish then any gaps in the process, skills, or knowledge. Each of your systems may have many steps and various types. These may be made up of: Step-by-step processes Instructions Standard letters Scripts Checklists Forms Templates Agendas Workflows Software Videos Consider what can be automated Many tasks can now be automated with the assistance of some fantastic apps and software. Consider your steps, which could be automated and which still need that critical human intervention or delivery. Chapter 5 Systemization Pillar 3- Structure Workbook Step 3 - Break it down and document it Ask a member of the team to write the system notes and related processes Asking someone else to create the system is, of course, great for your own time management! However, it can also help with your team's training. For example, you show them how it is done, including all the elements you would put into a system. Then, ask them to write up their notes in a structured manner to suit your other standard operating procedures/operations manual. You then, of course, have the system written up for you, but you also check that person’s understanding and the quality of your training! Chapter 5 Systemization Pillar 3- Structure Workbook Step 4 - Do a trial run Put the new procedure into practice. Have a team member follow your system exactly as it is documented, and in doing so, they may identify a few gaps that you hadn’t thought of before. Alter your first draft where necessary and take your second test drive. Repeat this process until you are completely satisfied that all gaps are filled and smoothed over. Step 5 - Train your team Ensure everyone understands and can follow the new system You may feel that the hard graft has been completed, and the system is now finally ready to roll out. However, a poor implementation plan or bad training can waste all that hard work. With training, everyone, from your most experienced to your newest people, should be able to carry out the tasks and deliver the system without you or your intervention at any point. Chapter 5 Systemization Pillar 3- Structure Workbook Step 6 - Revisit Monitor and Adjust. Like most aspects of your business planning, don’t simply allocate your system to a dusty shelf after three months. Sure, it is probably a well-engrained habit by then; you or anyone else could follow it blindfolded. But things change, and your system will need to change, too. A final word Systemization of your firm gives empowerment to your team, encouraging them to take responsibility and authority for delivery. It is said that you can then manage your team to their ability to follow a system and use their personality and innovation to improve it. TL;DR Here’s a recent post from LinkedIn, including a great tip from Dan Martell. Chapter 5 Systemization Pillar 3- Structure Workbook Areas for improvement/action points arising 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Chapter 5 Systemization Pillar 3- Structure Workbook IService maps are crucial tools for visualizing the delivery process of each of your services, from initial client contact to the final delivery. They show a high-level picture of what is expected of your team to deliver the service, and they help eliminate scope creep. Making clear what is included in the service delivery also shows team members what is outside the scope. Service maps also help in identifying key touchpoints, ensuring a consistent and high-quality client experience. Creating a service map involves outlining each step of your service process, understanding client interactions, and ensuring every stage adds value. An example of a service map is on the next page followed by an example Service Map Register. Chapter 6 Service Maps Service Maps Chapter 6 Service Maps Pillar 3- Structure Workbook Service Maps Register Pillar 3- Structure Workbook Service Last updated Drafted By Approved by Chapter 6 Service Maps Areas for improvement/action points arising 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Pillar 3- Structure Workbook Chapter 6 Service Maps Chapter 7 Workflow Workflow Workflow management, at its core, is a systematic approach to optimizing the sequences of processes, tasks, and activities that constitute the operational backbone of an accounting firm. It involves the meticulous design, execution, and monitoring of workflows to ensure that every task progresses seamlessly from initiation to completion, aligning with the firm's strategic objectives and client expectations. The essence of workflow management lies in its ability to streamline operations, minimize redundancies, and foster a culture of continuous improvement, thereby enhancing productivity and operational efficiency. The importance of workflow management in an accounting firm cannot be overstated. In an industry governed by deadlines, accuracy, and regulatory compliance, the ability to manage workflows effectively can be the difference between mediocrity and excellence. A well-designed workflow system ensures that tasks are allocated to the right team members, deadlines are met, and quality standards are upheld, all while maintaining a high level of client satisfaction. Moreover, it provides a framework for accountability, enabling managers to track progress, identify bottlenecks, and make informed decisions to optimize resource allocation and task execution. Workflow As an accounting firm grows, the complexity of its operations intensifies, underscoring the need to formalize procedures through effective workflow management. Expansion brings with it an array of challenges, from managing a larger client portfolio to coordinating an increasing number of team members, each with specialized roles and responsibilities. Informal or ad-hoc processes that may have sufficed in a smaller setup become untenable, leading to inefficiencies, errors, and inconsistencies that can tarnish the firm's reputation and client trust. Formalizing procedures through a structured workflow management system becomes imperative in this context. It provides a scalable framework that can accommodate growth while maintaining operational integrity. By standardizing processes, establishing clear guidelines, and leveraging technology to automate routine tasks, firms can ensure that their operations are both efficient and adaptable to changing demands. Workflow management is not just an operational necessity but a strategic imperative for accounting firms aiming to thrive in a competitive landscape. Chapter 7 Workflow Pillar 3- Structure Workbook Common Workflow Challenges 1. Relying on too many manual processes. By manual processes, we mean tasks and ways of doing things that are tedious. These are often simple things but will take your team’s time each week. And we aren’t talking just a few minutes of time here. We are talking about things that can take hours away from important client work. This can hurt productivity, create distractions that remove team members away from work that truly matters, and can hurt overall morale. Examples of manual work are setting up project tasks, redoing tasks that can be “templatized”, updating client work statuses, etc. What you can do at your firm: To prevent what is described above, you need to embrace automation. It’s understandable you want to have some control over your tasks, but much of it can be set up once and run automatically in the background. Use automation tools like Zapier or IFTTT, which can easily integrate between various platforms or complete tasks based on certain criteria. They can be used for free or upgrade to access more features. Use accounting workflow software eg Jetpack Workflow, Karbon Even look into AI solutions. You can’t escape content or people talking about AI these days. But tools like ChatGPT, Jasper, Copy.AI, and others can be useful platforms to save you and your team time. Chapter 7 Workflow Pillar 3- Structure Workbook Common Workflow Challenges 2. Lack of workflow visibility across the firm. A major challenge we hear from firm owners is client work falling through the cracks. Why does this happen? Well, when your firm is growing, is fully remote, or has multiple offices, seeing where client work is, who is working on what, and what’s next can be challenging. We’ve even talked to some firms where workflow tracking was done on Excel spreadsheets, post-it notes and based on memory. That’s how to overwhelm your team and lose track of client work progress. To have your firm run smoothly, you need a central place for all to utilize. This is where client work is better managed, where you can quickly see if things are stuck, and who’s working on what. What you can do at your firm: All your client tasks can be brought into workflow management tools. This allows your firm to operate smoothly and keep the whole team productive. Besides automating recurring tasks and utilizing templates, your firm gains visibility on client statuses, who is assigned to what stage client work is in, deadlines, communication, and overall team capacity. Now you can evaluate performance and where improvements can be made so your firm operates at the highest level. Chapter 7 Workflow Pillar 3- Structure Workbook Common Workflow Challenges 3. Trying to standardize workflows with the wrong tech. The amount of software and technology out there is growing like crazy. It can be overwhelming, especially for you as an accountant and firm owner. But technology can help your firm and ensure your business continues to grow. There is plenty of data around about accounting tech, but here’s a few: Sage’s findings show that 58% of professionals acknowledge that updating technology has significantly improved efficiency and productivity. This improvement is crucial for creating the space needed to add the service offerings demanded by clients. In the same report, an overwhelming 91% of professionals state that technology enables them to focus on clients or enhances overall productivity. Yet, we’ve chatted with a few firms who have remained with clunky and outdated legacy systems. Mostly due to fear of change, not having the time to learn something new, and not understanding what tech they actually need. What you can do at your firm: The beauty of accounting workflow software is that it isn’t complicated to learn. But can be an absolute game changer for your firm. However, your technology needs to support your workflows better and often goes beyond workflow software. As we’ve said before, the technology supports the process and shouldn’t be considered to be the process Chapter 7 Workflow Pillar 3- Structure Workbook What are your challenges with workflow Pillar 3- Structure Workbook What are your challenges with workflow? Is your software supporting or hindering the process? What do you need to start, stop and keep doing? Write your answer here... Chapter 7 Workflow Areas for improvement/action points arising 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Pillar 3- Structure Workbook Chapter 7 Workflow Chapter 8 Proforma Agendas Pro forma Agendas Pro forma agendas serve as a foundational tool within accounting firms where precision and consistency are paramount. These structured outlines ensure that meetings are conducted efficiently, with a clear focus on the topics at hand, thereby fostering a cohesive service delivery model. By adopting pro forma agendas, firms can instill a sense of confidence within their teams, as these agendas provide a predictable framework that guides discussions, decision- making, and task assignments. In environments where attention to detail and adherence to regulatory requirements are crucial, pro forma agendas help maintain a high level of organizational discipline. They ensure that every meeting, whether it's with clients, internal teams, or stakeholders, follows a consistent pattern, thereby reducing the likelihood of oversight or the omission of critical items. This consistency is particularly vital in accounting firms, where the accuracy of information and the timeliness of actions can significantly impact client satisfaction and compliance. Moreover, as firms grow and evolve, the complexity of their operations and the scope of their meetings tend to increase. In such scenarios, pro forma agendas become even more critical. They not only facilitate the scaling of processes but also support the seamless integration of new team members by providing them with a clear understanding of meeting protocols and expectations. This structured approach to meetings, enabled by pro forma agendas, is indispensable in ensuring that every interaction is productive, goal-oriented, and aligned with the firm's overarching objectives. Chapter 8 Proforma Agendas Pillar 3- Structure Workbook Chapter 8 Proforma Agendas Pillar 3- Structure Workbook Chapter 8 Proforma Agendas Pillar 3- Structure Workbook Chapter 8 Proforma Agendas Pillar 3- Structure Workbook Areas for improvement/action points arising 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Chapter 8 Proforma Agendas Pillar 3- Structure Workbook Chapter9 The Coaching Habit As experienced accountants, we learn the power of “Ask more questions, give less advice! Our team is concerned that they will not know the right answer and will look foolish in front of a client at meetings. This leads them to either shy away from phone calls/meetings, make up excuses why the client is not available, or spend too many hours in preparation. Following the steps in this section will help. We are also fans of The Coaching Habit by Michael Bungay Stanier. It’s a great approach to use with your team members (in addition to the systems in Workbook 2) and for them to use with their team. And, of course, it will help them with client meetings too. Remember, let them know that if the question were easy, the client wouldn’t need to ask. It’s ok to say, “I need to go away and do a bit of research to make sure I’m not missing anything from your particular circumstances,” and if you give away advice at the drop of a hat, the client is less likely to value it! The Coaching Habit Client Meetings 1. Never go to a meeting on your own Aynsley often talks about meetings when he worked at KPMG. No one ever went to a meeting on their own, and it was usual for three people (or more) to be there. The manager normally took the lead. The partner was there for moral support, guidance, and experience when things got a little tricky. And a more junior member of the team, ostensibly to take meeting notes and to write up the minutes afterward. However, this role was primarily to make sure they understood what was going on, to let them get experience and learn how to run great meetings. If the manager was new or inexperienced, the partner led the meeting so that they, too, got the necessary experience and learning. There was always a debrief and a constant upward spiral of experience, learning, and continuous improvement. You may not be able to take three people to every or any meeting. But at least make sure you, and everyone on the team, takes a more junior member of the team to every meeting to take notes (to show they understand what’s going on), learn from you how to run a great meeting, and give them the confidence when it’s their turn. 2. Lunch & Learn Role Plays Preparing for difficult conversations and situations. And creating a safe space to fail and learn. Think back to the last time you prepared for an important meeting. Perhaps you needed to convince a prospective client to do business with your firm. Or maybe you had to present to the client and you knew that they would be peppering you with questions about your report. Pillar 3- Structure Workbook Chapter9 The Coaching Habit Client Meetings Whatever the situation, chances are that you were nervous about the meeting, and practicing in front of a mirror may not have helped you overcome your anxiety, especially with respect to answering difficult questions. Now, think about how your team might feel. This is where role-playing can be useful. Here, we'll look at what it is, and we'll see how you and your team can use this technique to prepare for a variety of challenging and difficult situations or to improve confidence and aid learning. Uses and Benefits Role-playing takes place between two or more people who act out roles to explore a particular scenario. It's most useful to help you or your team prepare for unfamiliar or difficult situations. For example, you can use it to practice sales meetings, interviews, presentations, or emotionally difficult conversations, such as when you're resolving conflict. By acting scenarios like these out, you can explore how other people are likely to respond to different approaches, and you can get a feel for approaches that are likely to work and for those that might be counter-productive. You can also get a sense of what other people are likely to be thinking and feeling in the situation. Also, by preparing for a situation using role-play, you build up experience and self- confidence in handling the situation in real life, and you can develop quick and instinctively correct reactions to situations. This means that you'll react effectively as situations evolve rather than making mistakes or becoming overwhelmed by events. Pillar 3- Structure Workbook Chapter9 The Coaching Habit Client Meetings You can also use role-play to spark brainstorming sessions, improve communication between team members, and see problems or situations from different perspectives. How to Use Role Play It is easy to set up and run a role-playing session. It will help to follow the five steps below. Step 1: Identify the Situation To start the process, gather people together, introduce the problem, and encourage an open discussion to uncover all of the relevant issues. This will help people to start thinking about the problem before the role-play begins. If you're in a group and people are unfamiliar with each other, consider doing some icebreaker exercises beforehand. Step 2: Add Details Next, set up a scenario in enough detail for it to feel "real." Make sure that everyone is clear about the problem that you're trying to work through and that they know what you want to achieve by the end of the session. Step 3: Assign Roles Once you've set the scene, identify the various fictional characters involved in the scenario. Some of these may be people who have to deal with the situation when it actually happens. Others will represent people who are supportive or hostile, depending on the scenario (for example, an angry client). Once you've identified these roles, allocate them to the people involved in your exercise; they should use their imagination to put themselves inside the minds of the people that they're representing. This involves trying to understand their perspectives, goals, motivations, and feelings when they enter the situation. Pillar 3- Structure Workbook Chapter9 The Coaching Habit Client Meetings Step 4: Act Out the Scenario Each person can then assume their role and act out the situation, trying different approaches where necessary. It can be useful if the scenarios build up in intensity. For instance, if the aim of your role-play is to practice a sales meeting, the person playing the role of the potential client could start as an ideal client and, through a series of scenarios, could become increasingly hostile and difficult. You could then test and practice different approaches for handling situations so that you can give participants experience in handling them. Step 5: Discuss What You Have Learned When you finish the role-play, discuss what you've learned so that you or the people involved can learn from the experience. 3. Start/Stop/Keep And you can use Start, Stop, Keep [what should we start doing (better/differently), what should we stop doing (ie, what didn’t work), and what should we keep doing (what worked well) or After Action Reviews as a method of debriefing, spending on the scale of the role play. Pillar 3- Structure Workbook Chapter9 The Coaching Habit What Do You Need to Start/Stop/Keep Doing? Write your notes here... Chapter9 The Coaching Habit Pillar 3- Structure Workbook Areas for improvement/action points arising 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Chapter9 The Coaching Habit Pillar 3- Structure Workbook Chapter 10 Meeting Rhythms Meeting Rhythms “To move faster, pulse faster. At the heart of a team’s performance is a rhythm of well-run daily, weekly, monthly, quarterly and annual meetings. These meetings bring focus and alignment, provide an opportunity to solve problems more quickly and ultimately save time. They also address the number one challenge people face when they work together; communications.” (Verne Harnish, Scaling Up) In this section, we’ll outline specific meetings that Steven and Aynsley used in their accounting firms. The rhythm of meetings was designed to support cascading communications around the priorities and metrics driving strategy. Daily Huddle A 5/15/30-minute meeting to discuss tactical issues and provide updates held by different departments. The purpose is to avoid significant issues, take advantage of unforeseen opportunities, unblock any bottlenecks, and nip any fires in the bud. If done well, this should save an hour or so of needless email/Slack updates. The agenda was normally: what are you up to in the next 24 hours, where are you with your targets, and do you have any stucks? Normally, a stand-up meeting and the purpose is not to fix any stucks but rather to put people together to fix outside the meeting, share knowledge of a client, and understand any blockages and challenges with targets. Chapter 10 Meeting Rhythms Pillar 3- Structure Workbook Weekly meeting A 30-60 minute all-hands meeting to share the good news, discuss core values, review progress towards the quarterly objectives, quick reports from department heads, understand upcoming leave, and share market intelligence gathered from clients, vendors, teams, and competitors. Repeated issues form part of the agenda for the monthly meetings. Monthly meeting 60-minute/2-3 hrs monthly meeting for all senior leadership team to come together to deal with one or two bigger issues and share knowledge, values, and problem- solving approaches. Review results and targets and understand where we are against the quarterly and annual goals, priorities, and what needs to happen in the following month. Where relevant, agree quarterly objectives for the next quarter. Chapter 10 Meeting Rhythms Pillar 3- Structure Workbook Quarterly planning meetings 1/2 or full-day session with the entire team. Review previous quarter results and objectives. Communicate themes and targets for next quarter. Review core values. Update customer service protocols. Solve operational or other issues/challenges with brainstorming. Update from all functions. Share knowledge. Reiterate vision and galvanize the team. Annual strategy off site meeting One/two-day offsite meeting to create/update the 5-year plan and agree on a budget and plan for the forthcoming year. Review of strategy and tactics across all functions. Understand what worked, what hasn’t, and what can be improved upon. Agree on significant actions required (to be broken down into quarterly objectives) and direction of travel. Agree on communications for the team. Hold all hands to go through the first quarterly planning meeting. What is your meeting rhythm, and what if anything needs to change? Write your notes here... Chapter 10 Meeting Rhythms Pillar 3- Structure Workbook Areas for improvement/action points arising 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Chapter 10 Meeting Rhythms Pillar 3- Structure Workbook Conclusion As we conclude Workbook 3, we step back to appreciate the comprehensive scaffold of 'Structure' we've erected together. This journey through the realms of Pricing, Firm Systems, and Team Systems has fortified not only our understanding but also our resolve to architect a resilient and efficient accounting practice. Strategic Pricing – The Foundation In Module 6, we delved into the art and science of 'Pricing Structure,' where we embraced the '10 Commandments of Pricing' as our guiding principles. We explored various pricing models - from Cost Plus to Fixed and Value Pricing, each with its unique advantages and applications. The introduction of a 'Menu of Prices' and structured 'Plans' or proposals equipped us with the tools to communicate value effectively, ensuring transparency and alignment with client expectations. Firm Systems – The Framework Module 7 guided us through the intricate 'Firm Systems,' essential for operational excellence. We learned the craft of creating robust systems, the importance of service maps in visualizing and optimizing service delivery, and the critical role of workflow management in maintaining efficiency and consistency. These elements serve as the framework upon which our firm's operations can scale and adapt, ensuring resilience amidst the ever-changing business landscape. Sculpting the Backbone of Success Pillar 3 - Structure The End Conclusion Team Systems – The Harmonic Structure In Module 8, we turned our focus to 'Team Systems,' where the use of Pro-forma Agendas, the adoption of The Coaching Habit, and the establishment of Meeting Rhythms emerged as pivotal strategies. These tools and practices are vital for creating a structured yet flexible environment and fostering a culture of continuous improvement, accountability, and teamwork. They ensure that our teams are aligned, confident, and prepared to deliver exceptional service consistently. The Pillars of Excellence As we reflect on the journey through Workbook 3, it's clear that 'Structure' is more than just an organizational necessity; it's the backbone of sustainable growth and excellence. The strategic integration of Pricing, Firm, and Team Systems creates a harmonious structure that supports our aspirations, empowers our teams, and delights our clients. Pillar 3 - Structure The End Conclusion Forward with Purpose With these foundational structures in place, we are better equipped to navigate the complexities of the modern accounting landscape with agility and precision. The principles and practices we've embraced are not just strategies but a commitment to excellence, a promise to our clients, and a testament to our dedication to the craft. As we move forward, let us carry the insights and strategies from this workbook with the knowledge that they are not just tools for today but investments in our firm's future. The journey of building and refining our structure is ongoing, a testament to our commitment to growth, excellence, and the unwavering pursuit of our firm's vision. We eagerly anticipate the next Pillar and the remarkable achievements you will realize as you continue to fortify the structure of your practice, knowing that each step taken is a step towards the pinnacle of accounting mastery. Pillar 3 - Structure The End