Transcript Performance and Accountability

Unity: The Foundation of Partner
Performance and Accountability
Presented by
Jack G. Lee III, CPA
www.convergencecoaching.com
©Copyright 2000-2012
ConvergenceCoaching, LLC
All rights reserved.
Poll #1
• What best describes your role in your
organization?
–
–
–
–
–
Partner, Principal or Owner
Client Service Director, Manager or Staff
Firm Administrator or HR Manager
Marketing or Business Development Professional
Other
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Page 2
Poll #2
• What answer best characterizes your reason for
attending this web seminar?
– I want to gain a better understanding of what partnership
unity means
– I need to be sold on why unity is so foundational to
partner performance and accountability
– I want to understand how partner unity fits in to the
overall Leader Accountability Model
– I’m looking for ways to improve the partner unity in my
firm
– Other
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3
Partner Accountability
Webinar Series Overview
• Our 2012 Partner Accountability Webinar Series has
been designed to spark your strategic thinking in the
area of partner performance and accountability, and
includes the following sessions:
– Session 1, May 17th (Today’s Session) – Unity: The Foundation of
Partner Performance and Accountability
– Session 2, June 26th – Setting Partner Expectations and Reporting to
Drive Performance and Accountability
– Session 3, July 24th – Driving Partner Performance and Accountability
with Feedback and Straight Talk
– Session 4, August 22nd – Reward Partner Performance and
Contribution
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4
Our Agenda
• In this session, we will explore unity, the foundation
of partner performance and accountability,
including:
– Defining what unity means within a partnership structure
– Benefits of moving toward a more corporate, one-firm
structure
– Strategic constructs required to unify your partner team
– Ideas for bringing your partner team together – in and out
of the partner meetings – to work toward and support
your agreed upon goals and strategies
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5
The Leader Accountability Model
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6
Accountability Drives
Results
• Accountability, or “count-on-ability,” is a way of being that
enables colleagues to trust the words, commitments, and
actions of each other
– It enables us to know that we can rely on each other to follow through
on commitments and do what’s necessary to ensure team success
• The continuing slowness of our economic recovery has kept
partner accountability in the center of attention
– We’ll explore ideas within each element of our Leadership
Accountability Model over the next four monthly webinars to identify
areas where you can improve performance – both personally and
within your partner team
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7
The Leadership
Accountability Model
Define
Performance
– Roles and
Goals
Reward
Performance
Trust
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Establish
Unity
Around Firm
Strategy
Evaluate and
Discuss
Performance
Ownership
Monitor
Performance
– Return and
Report
Accountability
8
Defining Unity
Define
Performa
nce–
Roles and
Goals
Reward
Performa
nce
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©Copyright 2000-2012
ConvergenceCoaching, LLC
All rights reserved.
Establish
Unity
Around Firm
Strategy
Monitor
Performa
nce –
Return
and
Report
Evaluate
and
Discuss
Performa
nce
9
The Foundation Of
Accountability
• Before you can institute or improve your
partner accountability process, the partners
must first establish unity
– Based on trust
– Around an agreed firm strategy
– With the right governance model and other
constructs in place
– Engaging in straight talk where there are
disconnects
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10
Definition of Unity
1. Condition of being one: the state or condition of being one
2. Combination into one: the combining or joining of separate
things or entities to form one
3. Something whole: something whole or complete formed by
combining or joining separate things or entities
4. Harmony: harmony of opinion, interest, or feeling
5. Singleness among individuals: singleness or constancy among
individuals or groups
Source: Encarta World English Dictionary
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11
What Unity Does Not
Mean
• Unity does not mean that:
– You have 100% buy-in or that everyone agrees all
the time
– Conflicts won’t arise
– All partners like each other and are “friends”
– Everyone will stay together forever
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12
What Unity Does
Mean
• Unity means:
– You agree and align on a strategy and direction for
your firm and around key decisions
• Majority agreement is required, but “super-majority” is
preferred
– You respect, trust and edify each other
• This includes following the agreed upon direction,
abiding by decisions and working towards the strategy
in which the majority agreed (even when you are in the
minority!)
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13
The Reasons Unity Is
Typically Missing Are:
• The firm’s strategy is unclear - decisions aren’t supported because
partners cannot “see” where the firm is heading
– Action: Establish the firm’s strategy
• We want different things – and don’t want to disclose our self interest
– Action: Establish the firm’s strategy with it’s multi-faceted elements and
communicate (relentlessly) the firm’s purpose and vision for the future
• Partners don’t want to submit to an agreed upon strategy because it
requires a change in behavior
– Action: Change management and new behaviors are required, including
submission
• There are no consequences to the lack of submission, compliance or unity
– Action: Put accountability structures and rewards for contribution to the
strategy in place
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14
The Best Thing And The Worst
Thing About a CPA Firm Is The
Partnership Structure
Define
Performa
nce–
Roles and
Goals
Reward
Performa
nce
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ConvergenceCoaching, LLC
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Establish
Unity
Around Firm
Strategy
Monitor
Performa
nce –
Return
and
Report
Evaluate
and
Discuss
Performa
nce
15
Becoming Partner
• The partnership structure of CPA firms has both positive
benefits and negative aspects to it
• It is one of the leading challenges for developing a culture of
accountability among your partner team
– When someone makes partner, their new thinking becomes, “I’m a
partner now (just like you) so I don’t have to be accountable or review
my performance with you.”
• This lack of accountability to one another drives a lot of
“every person for themselves” behavior that not only
minimizes collaboration , but it is also off-putting to staff
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16
Which Business Model
Are You Committed To?
Every Person For Themselves
•
•
•
•
•
•
•
•
A lot of autonomy
“Eat what you kill” - personal
production focus
Lower leverage
Generalists
Not much infrastructure
Inconsistency in methods and
approach
Top billers earn well
Every partner must have a say in all
decisions
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One Firm
•
•
•
•
•
•
•
•
•
Less autonomy, more consistency
Team production focus
More leverage
Specialized roles and knowledge
Senior management team formed
and empowered
Shared services/infrastructure serves
all partners
Requires submission and trust to
succeed
Owners expected to develop people
as well as business
Non-performers can drag down the
team
17
One Firm Model
• Typically, accounting firms are run by committee or a leadership structure
that requires consensus
– Unless everyone agrees, which does not happen very often, not much
happens
– If partners don’t want change to happen, they “dig in “and create gridlock
• As CPA firms grow, this form of decision making will slow or stall growth
• A one-firm model with an empowered Managing Partner or CEO and a
partner accountability model will yield more results
– And when we empower individuals to make role-based decisions we get more
accomplished
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18
Empowerment Is Key
• An effective Managing Partner or CEO cannot be “in name” only
– Specific responsibilities, goals, and decision-making authority need to be
defined and partners must “submit to” this authority
• Most CPA firm partnership agreements don’t address governance - or do so
on a limited basis
– The decision-making authority of key roles including the MP, Executive
Committee, Service Line Leaders, Operations Partner/Firm Administrator should
be defined
– Start by reading your partnership agreement and documenting it in an Excel
spreadsheet with the columns being the roles and the rows being the decisionmaking ability
– Create a “governance grid” for your structure going forward (make it an exhibit
of your partner agreement rather than in it)
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19
Enhancing Your
Decision-Making Process
• Move toward a structure where most decisions can be made
by individual roles to increase efficiency and productivity
• Then identify one-person, one vote decisions, such as:
–
–
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Setting the direction and strategy for the firm
Approving the annual budget
Determining the firm’s service offerings
Setting the technology plan
Major expenditures
• As appropriate, also define share-based decisions, such as:
–
–
–
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Electing the MP and service line leaders
Mergers and acquisitions or the sale of the firm
Addition or expulsion of partners
Undertaking considerable capital commitments (new building, etc.)
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20
Defining Your Firm’s Strategy
Define
Performa
nce–
Roles and
Goals
Reward
Performa
nce
www.convergencecoaching.com
©Copyright 2000-2012
ConvergenceCoaching, LLC
All rights reserved.
Establish
Unity
Around Firm
Strategy
Monitor
Performa
nce –
Return
and
Report
Evaluate
and
Discuss
Performa
nce
21
“If you don't know where you're
going, you'll probably end up
somewhere else.”
~Yogi Berra
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22
Poll #3
• Have you developed – or updated – your
firm’s strategy in the last 12-18 months?
– Yes
– No
– Don’t know
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23
Your Firm’s Strategy
• Your firm’s strategy should include the following elements:
– Mission – the difference you want to make
– Vision – where the firm will be in 3-5 years
– Values – what you believe in, are committed to, and willing to be held
accountable for
– Competitive Positioning – your “what makes you different” story
– Product Service Mix – your “front burner” initiatives
• Your strategy should be documented, shared and reviewed
regularly (at least quarterly)
• Most importantly a super-majority of the partners must agree
on the strategy
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24
Let’s Talk About Vision
• The concept of vision in business is the ability to foresee or
have insight into the future
• A vision for your firm is your “dream” for the future – where
your firm will be – usually 3 to 5 years from now
• Your vision should be:
–
–
–
–
–
Unified
A reach
Detailed
Measureable
The framework that informs your annual strategies and tactics
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25
Your Firm’s Vision Is
Not…
• Your firm’s mission, which is the reason your firm exists and is
usually about the difference you make for others
– Your mission rarely changes, while your vision will change
as you get closer to realizing it and as market conditions
dictate
• Your firm’s strategies, which are the specific plans you deploy
to reach a specific objective
• Good web site copy – in fact, it is rarely published outside of
the organization and, when it is, it is usually broad
Mission
Vision
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Strategies
26
“Good business leaders create a
vision, articulate the vision,
passionately own the vision, and
relentlessly drive it to completion. “
Jack Welch
Former CEO of G.E.
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Benefits Of Visioning
• Increased inspiration and engagement
– Your team is simply more motivated and excited when the future looks
bright and the path seems clear
• Clarity of direction
– Your vision will identify your key focal points and
your planned “end destination” in five years time
• Definition of scope
– You’ll define what elements of your business will be your primary
focus, allowing you to zero in
• Increased and ongoing unity
– Your people can put their energy and resources behind your vision
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Developing Your Firm’s
Vision
• Create a Vision Committee
– Include a cross functional group of partners, younger upand-comers and key administrative managers
• Conduct a current state assessment
–
–
–
–
Market Analysis – Industries/Services/Niches/Clients
Competitive Analysis – in the market you want to address
SWOT Analysis – understand internal and external forces
Visioning Exercise – survey your people asking about
culture, size, scope, reach, SWOT
– Ideal Target Client – size, type, industry service
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29
Communicating Your
Firm’s Vision
• Develop and share your vision, which includes:
– A Vision Statement – 2-3 sentences that describe what your firm will
be like in five years time with enough specificity to know that you
have reached it – locations, industries, headcount, revenue
• For example: At Firm ABC, we will be a multi-location, state-wide
accounting and consulting firm delivering difference-making services to
healthcare practitioners, not-for-profits and general contractors. Our
team of over 100 talented and committed team members will be known
for our progressive culture as evidenced by our being named a Top XX
Firm To Work For in CITY. We will reach $9 million in revenue by 2016.
–
–
–
–
Measures of Success – specific, measurable, achievable
Your Differentiators – what makes your firm special, unique, different
Your Ideal Target Client Profile – who you want to serve
Your Product / Service Mix – industries you intend to serve and
services you will be delivering in five years time
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Barriers To Developing
A Unified Vision
• A unified vision is very difficult to develop when your
partner group lacks:
–
–
–
–
Honest communication – lack of straight talk
An ability to objectively assess itself and the firm
A culture of generosity or collaboration
A willingness to explore the unknown and
discuss real change
– A commitment to execute this important
but not urgent “Quadrant II” work
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Constructs to Support
Your Strategy
• To fulfill on your strategy, you must also:
– Develop documented partner role descriptions
and goals (more on this in the June 26th webinar!)
– Prepare a Partner Commitment Statement
• Which clearly articulate the behaviors and values all
partners are expected to uphold, and which is shared
openly with your team
– A performance-based partner compensation
system (the subject of our August 22nd webinar!)
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32
How Does Trust Affect Unity?
Define
Performa
nce–
Roles and
Goals
Reward
Performa
nce
www.convergencecoaching.com
©Copyright 2000-2012
ConvergenceCoaching, LLC
All rights reserved.
Establish
Unity
Around Firm
Strategy
Monitor
Performa
nce –
Return
and
Report
Evaluate
and
Discuss
Performa
nce
33
Lack of Trust =
Lack of Unity
• The main reason firms struggle with forming and
supporting a unified strategy is the lack of trust,
which shows up as:
–
–
–
–
Inability to make decisions, or “churn”
Triangulation and “side conversations”
Internal competition vs. external
Unresolved conflict among partners, and inability to move
forward
– Lack of passion and energy
– Unwillingness to submit to or support group decisions
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34
High Trust Drives High
Performance!
• High trust organizations outperform their
lower-trust competitors because they do a
better job of:
–
–
–
–
–
–
–
Executing their strategy
Delivering value
Retaining and deepening client relationships
Innovating
Collaborating
Partnering
Ensuring the loyalty of their people
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35
“Trust enables you to put your
deepest feelings and fears in the
palm of your partner's hand,
knowing they will be handled with
care."
Carl S. Avery
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36
Your Role in Trust
• For real unity to occur, trust is required among your leaders
– It is the only way to empower your leadership roles (and committees)
• People trust you because of who you are – your character and
competence and you trust others for the same reasons
– Character elements include integrity, intent and motive
• Unfulfilled commitments and undisclosed self interest erode trust
– Competence elements include experience, soft and technical skills,
proven results
• When performance doesn’t match expectations, trust is diminished
Excerpted from The Speed of Trust: The One Thing That
Changes Everything by Stephen M.R. Covey
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Trust Building
Behaviors
• Integrity is more than “honesty” or “doing the right thing”
and includes:
–
–
Keeping commitments – not over-committing and under-delivering
Resetting expectations when commitments cannot be kept
• Accountability is following through on commitments and
includes:
– Taking responsibility when their “things” are not going as planned
– Holding others accountable
• Straight Talk uses candor and honesty in all communications
and tells it like it is, and includes:
– No beating around the bush
– No avoiding difficult subjects
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Integrity
Trust
Straight
Talk
Account
-ability
38
Trust Decision Matrix
High Competence, High Character
High Competence, Low Character
• Decision to trust is easy
• Pay them well
• Promote them to further responsibility in the areas in
which they are gifted
• Be happy to have them on your team
• Often, those that fall in this quadrant are leaders in
their area
•Decision is hardest
• They appear to have “all the right stuff” on the
financial, client, technical, and/or business
development side – important areas!
• But, these people can sap your firm’s most precious
resources – motivation, inspiration, innovation, trust,
and respect, too
• Carefully weigh the cost/benefit of people who fall in
this quadrant
Low Competence, High Character
Low Competence, Low Character
• Decisions with these people are harder
• Decisions on these people are also easy
• You generally like them and feel they “fit in” well
• They don’t have the ability to pull their own weight
• Most firms will invest in mentoring, coaching, and
education to help them try to find their niche
• Still faced with sometimes having to ask a person
with lower competence to move on
• They aren’t performing well and they don’t fit your
standards for behavior
• Most firms counsel them to either improve or leave
the firm
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Bottom Line on Trust
• Without trust you can’t have accountability and
without accountability, you can’t have trust
• Don’t attempt to implement or improve your partner
accountability process in a low trust environment
• Start with building or restoring trust among the
partners
– In some cases, forgiveness may be required
To learn more about building and restoring trust in your firm, plan to attend
our webinar entitled, “I Trust You (Sort Of). Do You Trust Me?” with
Tamera Loerzel on July 10th from 2-3:40 EDT
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40
Submission and Support
Are Required
Define
Performa
nce–
Roles and
Goals
Reward
Performa
nce
www.convergencecoaching.com
©Copyright 2000-2012
ConvergenceCoaching, LLC
All rights reserved.
Establish
Unity
Around Firm
Strategy
Monitor
Performa
nce –
Return
and
Report
Evaluate
and
Discuss
Performa
nce
41
Submission
• A key attribute of an effective leader is the ability to
submit
– Trust building behaviors are required
– Ensure the support structures are in place, like role
descriptions, goals, and decision authority defined
– The question for you is, once these are defined, will you
submit to them, which would allow for:
•
•
•
•
The Managing Partner and Service Line Leaders to be empowered
Decisions to be made more efficiently and effectively
Increased productivity
Less of a feeling of struggle for all involved
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42
A Unified Team
• One of the “partner commitment” expectations should
include submitting to the strategy and decisions made by
those empowered to make them
– In addition to firm policies, procedures and other expectations
• Straight talk (and a little tough love) is required around:
– Partner support both in and out of the partner meetings – no
triangulation or “doing your own thing” allowed
– Expected contributions or performance
– Disappointment when performance is not happening
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Moving On
• Sometimes, a partner may not be willing to
“buy in” to firm strategy and may need to
leave
• While these conversations are never easy (and
have other implications) the cost of a lack of
partner unity is far greater
– The long-term benefits of addressing a lack of buy
in far outweigh any short-term discomfort
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Poll #4
• What one thing will you commit to do out of this discussion to
build a foundation of unity:
– Define (and document) your firm’s governance model
– Develop your firm’s strategy, perhaps developing or updating your
firm’s vision
– Develop other unification constructs to support your firm’s strategy
(i.e. role descriptions, goals, partner commitment statement)
– Determine where you can trust others more – then take appropriate
actions to do so
– Work towards integrity, accountability, and straight talk in your
relationships with your partners
– Engage in straight talk with someone who isn’t “bought in”
– Other
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Thank You!
• Contact us at any time!
Jack G. Lee III, CPA
(414) 659-9822
[email protected]
http://www.linkedin.com/in/jackleecpa
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Page 46
Resources
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ConvergenceCoaching
Resources
• ConvergenceCoaching’s web site includes information at:
– www.convergencecoaching.com
• Read our Coaching Concepts newsletter:
– http://www.convergencecoaching.com/coachingconcepts/
– Organizational Trust – Issue 24 Spring 2010
• Visit our blog for posts on these topics:
– www.convergencecoaching.com/blog
• Visit our learning center for access to additional courses:
– http://www.convergencelearning.com
• Visit us on Facebook:
– http://www.facebook.com/convergencecoaching
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Accountability And
Team Building Resources
• Accountability by Rob LeBow and Randy Spitzer
• Breakthrough Teams for Breakneck Times by Lisa Gundry and
Laurie LaMantia
• Extraordinary Relationships - A New Way of Thinking About
Human Interactions by Roberta M. Gilbert, M.D.
• Nuts!: Southwest Airlines' Crazy Recipe For Business and
Personal Success by Kevin Freiberg
• The Five Dysfunctions of a Team by Pat Lencioni
• The Accountability Factor: The Buck Stops Here by Alan M.
Dobzinski
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49
Trust Resources
• Childhood and Society by Erik H. Erikson
• Extraordinary Relationships - A New Way of Thinking About
Human Interactions by Roberta M. Gilbert, M.D.
• Identity and the Life Cycle by Erik H. Erikson
• Maritz Research Employee Engagement Poll 2011
– http://www.maritz.com/en/Press-Releases/2011/Americans-Still-LackTrust-In-Company-Management-Post-Recession.aspx
• The Positive Way at www.positive-way.com
• Radical Forgiveness by Colin Tipping
• The Last Lecture by Randy Pausch
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50
Trust Resources
• The Psychology of the Child by Jean Piaget and Barbel Inhelder
• The Speed of Trust: The One Thing That Changes Everything by
Stephen M.R. Covey
• The Thin Book Of Trust: An Essential Primer for Building Trust at
Work by Charles Feltman
• Zero Limits: The Secret Hawaiian System for Wealth, Health,
Peace and More by Joe Vitale and Ihaleakala Hew Len
www.convergencecoaching.com
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51
Trust Resources
• Childhood and Society by Erik H. Erikson
• Extraordinary Relationships - A New Way of Thinking About Human
Interactions by Roberta M. Gilbert, M.D.
• Identity and the Life Cycle by Erik H. Erikson
• The Positive Way at www.positive-way.com
• The Psychology of the Child by Jean Piaget and Barbel Inhelder
• Radical Forgiveness by Colin Tipping
• Zero Limits: The Secret Hawaiian System for Wealth, Health, Peace
and More by Joe Vitale and Ihaleakala Hew Len
www.convergencecoaching.com
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ConvergenceCoaching, LLC
All rights reserved.
52
Leadership Resources
• Built to Last - Successful Habits of Visionary Companies by
James C. Collins and Jerry I. Porras
• Developing the Qualities of Success by Zig Ziglar
• The Discipline of Market Leaders by Michael Treacy and Fred
Wiersema
• Good to Great by Jim Collins
• The Heart of a Leader by Ken Blanchard
• The Last Lecture by Randy Pausch
• Leadership by Rudolph Giuliani
• Management by Kathryn M. Bartol and David C. Martin
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53
Leadership Resources
•
•
•
•
•
Outliers: The Story of Success by Malcolm Gladwell
Practice What You Preach by David H. Maister
Primal Leadership by Daniel Goleman
Russell Rules by Bill Russell
The Speed of Trust: The One Thing That Changes Everything by
Stephen M.R. Covey
• Time Tactics of Very Successful People by B. Eugene
Griessman Small Business Administration
http://www.sba.gov/starting_business/planning/basic.html
• True Professionalism by David Maister
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