25 Critical Lessons from the Trenches

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LFMAPhoenix, AZOct. 2018

Presented by:Jim Lindell, CPA, CSP, CGMA

Thorsten Consulting Group, Inc.

CRITICAL CATEGORIES

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• Hurt the Agency Immediately• Hurt the Agency in the Long Run• Financial Statement Lessons• Hurt your Staff Immediately• Hurt your Staff in the Long Run

CRITICAL CATEGORIES

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• Hurt the Agency Immediately• Hurt the Agency in the Long Run• Financial Statement Lessons• Hurt your Staff Immediately• Hurt your Staff in the Long Run

Allowing organization values or culture to be violated

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Not adhering to values Mission or vision

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Run out of cash

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No forecast

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Inadequate working capital

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Contingency planning

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Succession planning

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CRITICAL CATEGORIES

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• Hurt the Agency Immediately• Hurt the Agency in the Long Run• Financial Statement Lessons• Hurt your Staff Immediately• Hurt your Staff in the Long Run

Pestle AnalysisNot following the Trends

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POLITICALECONOMIC

SOCIALTECHNOLOGICAL

LEGALENVIRONMENTAL

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Not identifying risks

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Not understanding operations or revenue streams

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Lynch Chevrolet

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Lack of alignment

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Lack of key metrics

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Not having a lean mindset

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Lean is Based on Two Main Philosophies

• Do only what the customer values

• Relentless identification and elimination of waste

Waste

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Types of Waste (Muda)

• Inventory

• Overproduction

• Defects

• Waiting

• Extra processing

• Motion

• Transportation

Demanding profitable results

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Rigorous follow up on accounts receivable

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CRITICAL CATEGORIES

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• Hurt the Agency Immediately• Hurt the Agency in the Long Run• Financial Statement Lessons• Hurt your Staff Immediately• Hurt your Staff in the Long Run

Overview – Where Financial Statements Fail Us

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•Context

•Insight

•Trends

•Ratios

Best way to present financial statements

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CONTEXT IN FINANCIAL STATEMENTS

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I am setting you up … this is a trap …

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CRITICAL CATEGORIES

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• Hurt the Agency Immediately• Hurt the Agency in the Long Run• Financial Statement Lessons• Hurt your Staff Immediately• Hurt your Staff in the Long Run

Lack of empathy

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Your Personal skills and profile

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• Are you a collaborator or a partner?

• What tools can be utilized to identify yours and others skills?

• Myers-Briggs • Now discover your strengths• Disc• Wonderlic

Culture grid

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The Culture Grid

Quad 2 – High values, low

performance, train, mentor ,

coach

Quad 3 – High values, High

Performance, Stars, Praise, take care of

them

Quad 1 – Low values, low

performance –fire them!

Quad 4 – Low values, High

performance –Kingdom

builders, Silos, may not be able

to trust them

Val

ues

Performance

15

10

1 5 10

Lack of accountability

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No victims

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Allowing employees to threaten you with their job

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CRITICAL CATEGORIES

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• Hurt the Agency Immediately• Hurt the Agency in the Long Run• Financial Statement Lessons• Hurt your Staff Immediately• Hurt your Staff in the Long Run

NONE OF US - ARE AS GOOD AS -ALL OF US!

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Not practicing servant leadership

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Accounting jargon

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Misreading Executives or board members

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Work balance

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Not supporting staff

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Taking too long to fire somebody

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Burn out staff

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Treating everyone the same

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Not keeping up your technical abilities

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Inappropriate controls form over substance

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Questions, Comments & Follow-up

• Questions

• Comments

• Follow-up

• Contact Jim• Thorsten Consulting Group, Inc.• 34085 Hidden Valley Drive• Dousman, WI 53118• 262-392-3166• Jim@thorstenconsulting.com• https://www.linkedin.com/in/jimlindell/