The Business Transformation Playbook Jim Boomer, CPA, CITP, CGMA, MBA Chief Executive Officer Arianna Campbell, LSS Black Belt Consultant CPA, CITP, CGMA Accounting Today Top 100 CPA Practice Advisor's Top 25 Thought Leaders Director of the Boomer Technology Circles, The Advisor Circle and The CIO Circle for Boomer Consulting Jim Boomer Chief Executive Officer Boomer Consulting, Inc. Co-Chair of AICPA ENGAGE TECH+ planning committee Immediate Past Chair of KSCPA board of directors Contact me at jim.boomer@boomer.com! Twitter: @jimboomer Lean Six Sigma Black Belt P3 Leadership AcademyTM Facilitator Lead internal process improvement initiatives CPA Practice Advisor Top 25 Most Powerful Women in the Accounting Profession Arianna Campbell Consultant Boomer Consulting, Inc. My Passion Helping CPA firms navigate their continuous improvement journey! Contact me at arianna.campbell@boomer.com Twitter: @arianna_bci LinkedIn: www.linkedin.com/in/ariannacampbell 1
Who We Are Client Base Top 500 CPA firms in the U.S. Strong relationships within Top 100 firms CPA Firm Client Characteristics Successful Desire to grow Focused on future readiness Actively working with 40+ Software providers to the accounting profession 2
Why CPA Firms Go To Boomer Consulting To make you more successful and future ready. What size is your firm? a. Under $2M b. $2M - $5M c. $6M - $15M d. $16M - $30M e. Over $30M What is your role? a. Partner b. Senior Manager / Manager c. Staff d. Non-Accounting Professional (Operations, Marketing, HR, Technology, etc.) e. Other 3
Agenda Transformation - Mindset Playing Thru the Line Cloud Ecosystem The Business Capability Model The Business Transformation Playbook Your Action Plan Transformation - Mindset 4
Firm models are transforming Drivers: Compliance Complexity Client Loyalty Source: Accounting Today Top 100 Firms Survey 2010 and 2016 5
The CPA Mindset The Traditional CPA Business Transformation Agent Assumptions Rationality, Objectivity, Reality as fixed and quantifiable Subjective experience Method Analysis aimed at proving one best answer Experimentation aimed towards iterating a better answer Process Planning Doing Decision Drivers Logic, numeric models Emotional insight, Experience models Values Pursuit of control and stability. Low tolerance for ambiguity. Pursuit of Novelty. Dislike of status quo Level of Focus Big Picture or Minute Details Iterative movement between the big picture and the details. Viewpoint Hindsight Foresight Elevate your thinking. Business Intelligence Planning Strategic CFO Accounting Performance Compliance Tax Succession playing thru the line The problem is never the problem, but rather how you think about the problem. 1.1X 6
Exponential Growth Day 1 Amount $.01 7 $.64 14 $ 81.92 21 $ 10,485.76 28 $ 1,342,177.28 31 $ 10,737,418.24 Hindsight Foresight Insight Clients today don t know what they want, because the things they most want are things they don t yet know are possible. Give your clients the ability to do what they can t currently do, but would want to, if they only knew it was possible. --Daniel Burrus 7
Bigger Future Team Player Willing to Change Improve Processes Life-long Learner Growth Connected If you had a penny that doubled in value every day for 30 days, how much would it be worth? a. $1,310.72 b. $41,943.04 c. $5,368,709.12 d. $10,737,418.24 e. $21,474,836.48 8
Playing Thru the Line The Challenges Change-Complacency Data Connectors Knowledge Connectors } The Continuum of Value playing thru the line Accelerators I n n o v a t i o n Foresight Insight Hindsight Transactional Capacity Compliance Performance Capability Strategic 9
The Continuum of Value playing through the line Data Connectors Knowledge Connectors } Accelerators Strategic Planning Succession Planning Mergers & Acquisitions Foresight Insight Hindsight Tax preparation Audit Review Financial Reporting Bookkeeping Payroll Bill Payment Transactional CFO Services Data Analytics Benchmarking Business Advisory Lean Processes Capacity Compliance Performance Capability I n n o v a t i o n Strategic 10 Differentiators Advisory Compliance 1. Rugged Individual 2. Seasonal 3. Hourly 4. Reactive 5. Hindsight 6. Post mortem 7. Report 8. Focus on details 9. Deliver a product 10. Work with accounting personnel 1. Team Sport 2. Non-seasonal 3. Value 4. Proactive 5. Insight & Foresight 6. Planning 7. Anticipate 8. Big Picture 9. Support a process 10. Work with leadership & ownership The Puzzle Menu of Services The Team Clients & Filters Unique Process Packaging & Pricing Platform & Ecosystem 10
Packaging & Pricing Eliminate data entry Collaborate Lean 6 Sigma Think Real Time Packages Starting at...$ 10 X Strategy Filters Niches The CAS Roadmap Value Fixed Fee Matrix Pricing Upfront Conversations Value Creation Letters Processes The Team Leader Client Service Representative Unique Abilities Sources Target Clients Strategic Performance Compliance Client buys what they want and need Menu of Services Trusted Business Advisor Sourced Accounting and IT Cloud Based - Secure Mobile Access - Collaborative Value Proposition Formula for the Future Ready Firm Planning + People + Process Accountability X Technology Ecosystem = High Performance Is Client Advisory Services part of your firm s strategic plan? a. Yes b. No c. We don t have a strategic plan 11
Cloud Ecosystem What is a Cloud Ecosystem? Feature Gaps Solution Focused on one or a few pain points Not attempting to be everything to everyone Why Cloud Ecosystem? Sum of Parts > Value of Individual Apps 12
Why Cloud Ecosystem? + Best of Both Worlds And Freedom! Open vs. Closed Architecture Long standing battle between open & closed Microsoft won the initial PC battle due to consumers preference for choice The open approach will win in the evolving cloud environment Those holding onto the closed, proprietary model will get left behind A New Phenomenon? Encourage Independent Software Vendors to build solutions on enabling software. Luring independent developers to build their apps on their mobile platform. 13
Business Capability Model defines A business capability model as the way in which companies combine systems, processes and their environments to deliver value to their customers. The Business Capability Model Planning People The P 4 CM Processes Platform 14
Office Retail Touch Points Owners - Management Customers - Talent Boomer Consulting Inc. 2017 Back Office What Front Office 1 The Experience (Client & Talent) Online 2 Mobile Marketing Social Media Email Sales 3 4 Innovation Opportunities Financial 6 1 90-Day Game Plan Management Team & Projects Owners - Management Customers - Talent Front Office What Back Office 9 8 Strategic Plan COO, CIO & Executive Team 1 Office Retail Call Center Online Mobile Marketing Lead Generation Brand Strategy Service Offerings Pricing The Experience (Client & Talent) Mobile Scheduling Communication Email Social Media Sales Opportunity Mgmt. Pipeline Referrals Change Orders-Renewals Technology IT Road Map Platform/App. Management Security/Privacy Infrastructure Financial General Ledger & Reporting Payroll-Benefits Accounts Payable-Bill Pay. Accounts Receivable/Invoice Forecasting/Data Analytics Accountability Why Talent Development Recruitment & Retention Talent Development Performance Mgmt. Comp. - Compliance 5 Legal - Compliance 7 Vision CEO & Leadership Team Accountability Why Services & Products Business Capability Model TM Operations Talent Development Community IM Technology Touch Points Boomer Consulting Inc. 2017 Call Center Capability How 1 Community IM Services & Products Contact Management Project Management Tax - Audit Advisory The Business Capability Model TM Operations Scheduling - Workflow Workforce Management Office Management Facilities Management Legal Compliance Licensing Leases - Contracts Insurance Brand Management Vision CEO & Leadership Team Strategic Plan COO, CIO & Executive Team Capability 90-Day Game Plan Management Team & Projects Strategy 10 X vs. 1.1 X Global vs. Local Advisory vs. Compliance Capability Awareness Anticipatory Organization Hard/Soft Trends Execution Culture Processes Resources How 15
Know What s Next Transform Planning Accelerate Success Transform Results AO Shape the Future Develop Opportunities Transform Innovation Transform Culture From The Anticipatory Organization by Daniel Burrus Does your firm have clients that could benefit from the Business Capability Model? a. Yes b. No Business Transformation Playbook 16
Making the shift from compliance to advisory requires a business transformation What is Business Transformation? Organic growth that comes from developing your niche(s), entering new markets, retooling your skillsets, increasing profitability and expanding the services you provide to your clients. The Objectives Meet the changing demands of clients Build upon the compliance and transactional services that clients need to provide that proactive advise they really want and value Maintain relevance in a time of rapid technology evolution that is automating many of the core services 17
The Obstacles Creating a culture of innovation and new service creation Evolving the firm's business model from compliance based to consultative based Developing staff at all levels to be more consultative The Solution But how do firms really transform? With a plan and new skills! www.boomer.com/btp 18
Alignment Tollgates Our firm has a shared vision. Our firm has a current strategic plan. Transformation Services are part of our plan and vision. We are tracking progress. We have defined ways to measure success. www.boomer.com/btp Plan Tollgates We know who the leader is. We have a menu of services. We know who is on the team. We have identified our goal. We have metrics to track our progress. 19
www.boomer.com/btp Training Tollgates Gaps have been identified. Training plans are in place. We are ready to go to market. We understand how to #FailForward and learn from our mistakes. www.boomer.com/btp 20
Engage Clients Tollgates Revenue is increasing. We have a tracking system in place that provides insight to what is work and what is not. Our Technology Platform us to capture data needed for analytics for our clients and the firm. We have identified additional gaps that have been created as we began working with clients in a more strategic fashion. www.boomer.com/btp Repeat Tollgates We have a plan to scale. We know how we are progressing towards our longer term strategic vision. We have greater understanding on what consulting services are growing and which ones are not. We have systems of value that create foresight for the firm and clients. 21
Your Action Plan A Simple Action Plan 1. Update firm s vision & strategic plan 2. 3. 4. 5. Governance Growth Service Lines & CAS Roadmap Talent Unique Ability Teams Processes Value Based Technology Conduct process reviews Identify teams, champions & project managers Leverage knowledge, expertise and experience outside your firm Build a culture of accountability Charlie Tremendous Jones: You will be the same person in five years, except for the people you meet and the books you read. 22
Questions? Thank You FACEBOOK: www.facebook.com/boomerconsultinginc/ TWITTER: @ThinkPlanGrow INSTAGRAM: @ThinkPlanGrow LINKEDIN: www.linkedin.com/company/boomer-consulting-inc- Our website is the best place to learn more about our services. Visit: www.boomer.com 23